Document:

Security Agreement

 Exhibit 10.38 
 EXECUTION VERSION 
 SECURITY AGREEMENT 
 Dated July 2, 2009 
 From 
 The Grantors referred to herein 
 as Grantors 
 to 
 BANK OF AMERICA, N.A. 
 as Agent 

 T A B L E O F C O N T
E N T S 
  

			
	 Section
	  	Page
		
	 Section 1. Grant of Security
	  	2
		
	 Section 2. Security for Obligations
	  	7
		
	 Section 3. Grantors Remain Liable
	  	8
		
	 Section 4. Delivery and Control of Security Collateral
	  	8
		
	 Section 5. Maintaining the Account Collateral
	  	9
		
	 Section 6. Investing of Amounts in the Cash Collateral Account
	  	9
		
	 Section 7. [Reserved]
	  	10
		
	 Section 8. Representations and Warranties
	  	10
		
	 Section 9. Further Assurances
	  	15
		
	 Section 10. As to Equipment and Inventory
	  	16
		
	 Section 11. Insurance
	  	16
		
	 Section 12. Post-Closing Changes; Collections on Assigned Agreements, Receivables and Related Contracts
	  	17
		
	 Section 13. As to Intellectual Property Collateral
	  	18
		
	 Section 14. Voting Rights; Dividends; Etc.
	  	20
		
	 Section 15. As to the Assigned Agreements
	  	21
		
	 Section 16. As to Letter-of-Credit Rights
	  	22
		
	 Section 17. Commercial Tort Claims
	  	22
		
	 Section 18. Transfers and Other Liens
	  	23
		
	 Section 19. Agent Appointed Attorney-in-Fact
	  	23
		
	 Section 20. Agent May Perform
	  	23
		
	 Section 21. The Agent’s Duties
	  	23
		
	 Section 22. Remedies
	  	24
		
	 Section 23. Indemnity and Expenses
	  	26
		
	 Section 24. Amendments; Waivers; Additional Grantors; Etc.
	  	26

  

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	 Section 25. Notices, Etc.
	  	27
		
	 Section 26. Continuing Security Interest; Assignments under the Loan Agreement
	  	27
		
	 Section 27. Release; Termination
	  	27
		
	 Section 28. Execution in Counterparts
	  	28
		
	 Section 29. Governing Law
	  	28
		
	 Section 30. Loan Agreement
	  	28
		
	 Section 31. Intercreditor Agreement
	  	28

 Schedules 
  

					
	Schedule I	 	-	 	Investment Property
	Schedule II	 	-	 	Pledged Deposit Accounts
	Schedule III	 	-	 	Assigned Agreements
	Schedule IV	 	-	 	Intellectual Property
	Schedule V	 	-	 	Commercial Tort Claims
	Schedule VI	 	-	 	Chief Executive Office, Type of Organization, Jurisdiction of Organization and Organizational Identification Number
	Schedule VII	 	-	 	Changes in Name, Etc.
	Schedule VIII	 	-	 	Locations of Equipment and Inventory
	Schedule IX	 	-	 	Letters of Credit
	Schedule X	 	-	 	Terms Defined in Intercreditor Agreement
			
	Exhibits	 		 	
			
	Exhibit A	 	-	 	Form of Second Lien Intellectual Property Security Agreement
	Exhibit B	 	-	 	Form of Second Lien Intellectual Property Security Agreement Supplement
	Exhibit C	 	-	 	Form of Security Agreement Supplement

  

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 SECURITY AGREEMENT 
 SECURITY AGREEMENT dated July 2, 2009 made by SOLO CUP COMPANY, a Delaware corporation (the “Company”), SOLO CUP OPERATING CORPORATION, a Delaware corporation
(“SCOC,” and together with the Company, the “Borrowers”), and the other Persons listed on the signature pages hereof (the Borrowers and the Persons so listed being, collectively, the
“Grantors”), to Bank of America, N.A., as administrative agent (in such capacity, together with any successor administrative agent appointed pursuant to Section 12 of the Loan Agreement (as hereinafter defined), the
“Agent”) for the Secured Parties (as defined in the Loan Agreement). 
 PRELIMINARY STATEMENTS. 
 (1) The Grantors have entered into a Loan Agreement dated as of July 2, 2009 (said Agreement, as it may hereafter be amended, amended and restated,
supplemented or otherwise modified from time to time, being the “Loan Agreement”) with certain other Restricted Subsidiaries of the Borrowers, the Agent, the other agents named therein and the Lenders (each as defined
therein). 
 (2) Terms defined in the Loan Agreement and not otherwise defined in this Agreement are used in this Agreement as defined in the
Loan Agreement; and terms set forth on Schedule X are used in this Agreement as defined in the Intercreditor Agreement (as defined in the Loan Agreement). Further, unless otherwise defined in this Agreement or in the Loan Agreement or the
Intercreditor Agreement, terms defined in Article 8 or 9 of the UCC (as defined below) and/or in the Federal Book Entry Regulations (as defined below) are used in this Agreement as such terms are defined in such Article 8 or 9 and/or in the Federal
Book Entry Regulations. “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that, if perfection or the effect of perfection or non perfection or the priority of the
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such
other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non perfection or priority. “Federal Book-Entry Regulations” means (A) the federal regulations contained in
Subpart B (“Treasury/Reserve Automated Debt Entry System (TRADES)”) governing book-entry securities consisting of U.S. Treasury notes, bills and bonds and Subpart D (“Additional Provisions”) of 31 C.F.R. Part 357, 31 C.F.R.
§ 357.10 through § 357.15 and § 357.40 through § 357.45, including related defined terms in 31 C.F.R. § 357.2); and (B) to the extent substantially identical to the federal regulations referred to in clause
(A) above, the federal regulations governing other book-entry securities. 
 (3) Each Grantor is the owner of the promissory notes set
forth opposite such Grantor’s name on and as otherwise described in Part I of Schedule I hereto and issued by the obligors named therein (the “Initial Pledged Debt”). 
 (4) Each Grantor is the owner of the deposit accounts set forth opposite such Grantor’s name on Schedule II hereto (the “Pledged Deposit
Accounts”). 

 (5) SCOC is the owner of Account No. 8666216501 (the “Cash Collateral
Account”), maintained with Bank of America, N.A. and subject to the terms of this Agreement. 
 (6) Each Grantor is the owner of
the securities accounts set forth in Part II of Schedule I (the “Securities Accounts”). 
 (7) It is a condition
precedent to the making of Loans by the Lenders and the issuance of Letters of Credit by the Issuing Banks under the Loan Agreement and the providing of Bank Products by the Lenders or their Affiliates from time to time that the Grantors shall have
granted the security interest contemplated by this Agreement. Each Grantor will derive substantial direct and indirect benefit from the transactions contemplated by the Loan Documents and the Bank Products. 
 NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make Loans and the Issuing Banks to issue Letters of Credit under
the Loan Agreement and to induce certain Lenders and their Affiliates to provide Bank Products from time to time, each Grantor hereby agrees with the Agent for the ratable benefit of the Secured Parties as follows: 
 Section 1. Grant of Security. Each Grantor hereby grants to the Agent, for the ratable benefit of the Secured Parties, a security interest in such
Grantor’s right, title and interest in and to the following, in each case, as to each type of property described below, whether now owned or hereafter acquired by such Grantor, wherever located, and whether now or hereafter existing or arising
(collectively, the “Collateral”): 
 (a) all equipment in all of its forms, including, without
limitation, all machinery, tools, furniture and fixtures, and all parts thereof and all accessions thereto, including, without limitation, computer programs and supporting information that constitute equipment within the meaning of the UCC (any and
all such property being the “Equipment”); 
 (b) all inventory in all of its forms, including, without
limitation, (i) all raw materials, work in process, finished goods and materials used or consumed in the manufacture, production, preparation or shipping thereof, (ii) goods in which such Grantor has an interest in mass or a joint or other
interest or right of any kind (including, without limitation, goods in which such Grantor has an interest or right as consignee) and (iii) goods that are returned to or repossessed or stopped in transit by such Grantor, and all accessions
thereto and products thereof and documents therefor, including, without limitation, computer programs and supporting information that constitute inventory within the meaning of the UCC (any and all such property being the
“Inventory”); 
 (c) all accounts (including, without limitation, health-care-insurance receivables),
chattel paper (including, without limitation, tangible chattel paper and electronic chattel paper), instruments (including, without limitation, promissory notes), deposit accounts, letter-of-credit rights, general intangibles (including, without
limitation, payment intangibles) and all other right to payment of monetary obligations of any kind, whether or not arising out of or in connection with the sale or lease of goods or the rendering of services and whether or not earned by
performance, and all rights now or hereafter existing in and 

  

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to all supporting obligations and in and to all security agreements, mortgages, Liens, leases, letters of credit and other contracts securing or otherwise
supporting payment of any of the foregoing property (any and all of such accounts, chattel paper, instruments, deposit accounts, letter-of-credit rights, general intangibles and other obligations, to the extent not referred to in clause (d),
(e) or (f) below, being the “Receivables,” and any and all such supporting obligations, security agreements, mortgages, Liens, leases, letters of credit and other contracts being the “Related
Contracts”); 
 (d) the following (collectively, the “Security Collateral”): 

(i) the Initial Pledged Debt and the instruments, if any, evidencing the Initial Pledged Debt, and all interest, cash, instruments and
other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Debt; 
 (ii) all additional monetary obligations from time to time owed to such Grantor (such indebtedness, together with the Initial Pledged Debt, being the “Pledged Debt”) and the instruments, if
any, evidencing such monetary obligations, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such monetary obligations; 

(iii) the Securities Accounts, all security entitlements with respect to all financial assets from time to time credited to the
Securities Accounts, and all financial assets, and all dividends, distributions, return of capital, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any
or all of such security entitlements or financial assets and all warrants, rights or options issued thereon or with respect thereto; and 
 (iv) all other investment property (including, without limitation, all (A) securities, whether certificated or uncertificated, (B) security entitlements, (C) securities accounts, (D) commodity
contracts and (E) commodity accounts) in which such Grantor has now, or acquires from time to time hereafter, any right, title or interest in any manner, and the certificates or instruments, if any, representing or evidencing such investment
property, and all dividends, distributions, return of capital, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such investment property and
all warrants, rights or options issued thereon or with respect thereto; 
 (e) each of the agreements listed on Schedule III
hereto as such agreements may be amended, amended and restated, supplemented or otherwise modified from time to time (collectively, the “Assigned Agreements”), including, without limitation, (i) all rights of such
Grantor to receive moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all 

  

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rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the Assigned Agreements, (iii) claims of
such Grantor for damages arising out of or for breach of or default under the Assigned Agreements and (iv) the right of such Grantor to terminate the Assigned Agreements, to perform thereunder and to compel performance and otherwise exercise
all remedies thereunder (all such Collateral being the “Agreement Collateral”); 
 (f) the following
(collectively, the “Account Collateral”): 
 (i) the Pledged Deposit Accounts, the Cash Collateral
Account and all funds and financial assets from time to time credited thereto (including, without limitation, all Cash Equivalents), and all certificates and instruments, if any, from time to time representing or evidencing the Pledged Deposit
Accounts or the Cash Collateral Account; 
 (ii) all promissory notes, certificates of deposit, checks and other instruments
from time to time delivered to or otherwise possessed by the Agent or the Noteholder Collateral Trustee for or on behalf of such Grantor in substitution for or in addition to any or all of the then existing Account Collateral; and 
 (iii) all interest, dividends, distributions, cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the then existing Account Collateral; and 
 (g) the following
(collectively, the “Intellectual Property Collateral”): 
 (i) all patents, patent applications,
utility models and statutory invention registrations, together with all inventions claimed or disclosed therein and all improvements thereto (“Patents”); 
 (ii) all trademarks, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, fictitious business
names, corporate names, certification marks, collective marks and other source identifiers, whether registered or unregistered (provided that no security interest shall be granted in any United States intent-to-use trademark application for
registration of a trademark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d) of the Lanham Act or an “Amendment to Allege Use”
pursuant to Section 1(c) of the Lanham Act with respect thereto, solely 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 any registration that
issues from such intent-to-use trademark applications under applicable federal law), together, in each case, with the goodwill symbolized thereby (“Trademarks”); 
 (iii) all copyrights (whether or not the underlying works of authorship have been published), including, without limitation, copyrights in
Computer Software (as hereinafter defined), internet web sites and the content thereof, whether registered or unregistered (“Copyrights”); 
  

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 (iv) all computer software, programs and databases (including, without limitation, source
code, object code and all related applications and data files), firmware and documentation and materials relating thereto, together with any and all maintenance rights, service rights, programming rights, hosting rights, test rights, improvement
rights, renewal rights and indemnification rights and any substitutions, replacements, improvements, error corrections, updates and new versions of any of the foregoing (“Computer Software”); 
 (v) all confidential and proprietary information, including, without limitation, know-how, trade secrets, manufacturing and production
processes and techniques, inventions, research and development information, databases and data, including, without limitation, technical data, financial, marketing and business data, pricing and cost information, business and marketing plans and
customer and supplier lists and information (collectively, “Trade Secrets”), and all other intellectual, industrial and intangible property of any type, including, without limitation, industrial designs and mask works;

 (vi) all registrations and applications for registration for any of the foregoing, including, without limitation, those
registrations and applications for registration set forth in Schedule IV hereto, together with all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations thereof; 
 (vii) 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; 
 (viii) all
agreements, permits, consents, orders and franchises relating to the license, development, use or disclosure of any of the foregoing to which such Grantor, now or hereafter, is a party or a beneficiary, including, without limitation, the agreements
set forth in Schedule IV hereto (“IP Agreements”); 
 (ix) all tangible embodiments of any of the
foregoing, and 
 (x) 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; 
 (h) the commercial tort claims described in Schedule V hereto (together with any commercial tort claims as to which the Grantors have
complied with the requirements of Section 17, the “Commercial Tort Claims Collateral”); 
 (i)
all books and records (including, without limitation, customer lists, credit files, printouts and other computer output materials and records) of such Grantor pertaining to any of the foregoing Collateral or any of the Collateral referred to in
clause (j) below; and 
  

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 (j) 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 foregoing Collateral (including, without limitation, proceeds, collateral and supporting obligations that constitute property of the types
described in clauses (a) through (i) of this Section 1) and, to the extent not otherwise included, all (A) payments under insurance (whether or not the Agent is the loss payee thereof), or any indemnity, warranty or guaranty,
payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, and (B) cash; 
 provided that Collateral
shall not include the following (collectively, the “Excluded Assets”): 
 (1) all interests in real property other
than fee interests and other interests appurtenant thereto; 
 (2) fee interests in real property if the greater of the cost or the book
value of such fee interest is less than $1,000,000; 
 (3) any property or asset to the extent that the grant of a Lien under the Security
Documents (as defined in the Intercreditor Agreement) in such property or asset is prohibited by applicable law or requires any consent of any governmental authority not obtained pursuant to applicable law; provided that such property or
asset will be an Excluded Asset only to the extent and for so long as the consequences specified above will result and will cease to be an Excluded Asset and will become subject to the Lien granted under the Security Documents (as defined in the
Intercreditor Agreement), immediately and automatically, at such time as such consequences will no longer result; 
 (4) any lease, license,
contract, property right or agreement to which any Grantor is a party or any of its rights or interests thereunder only to the extent and only for so long as the grant of a Lien under the Security Documents (as defined in the Intercreditor
Agreement) will constitute or result in a breach, termination or default under or requires any consent not obtained under any such lease, license, contract, agreement or property right (other than to the extent that any such term would be rendered
ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of equity); provided
that such lease, license, contract, property right or agreement will be an Excluded Asset only to the extent and for so long as the consequences specified above will result and will cease to be an Excluded Asset and will become subject to the Lien
granted under the Security Documents (as defined in the Intercreditor Agreement), immediately and automatically, at such time as such consequences will no longer result; 
 (5) any motor vehicles, vessels and aircraft, or other property subject to a certificate of title statute of any jurisdiction; 
 (6) cash or Cash Equivalents (or deposits or securities accounts that solely contain such cash or cash equivalents) (i) securing reimbursement obligations under letters of credit or surety bonds (other than, in
the case of ABL Collateral, reimbursement obligations in respect of letters of credit securing or constituting ABL Debt Obligations), (ii) solely consisting of earnest money 

  

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deposits made or received in connection with any disposition of property or assets or in connection with any investment or (iii) securing Hedging
Obligations (as defined in the Intercreditor Agreement), in each case to the extent permitted under all Secured Documents (as defined in the Intercreditor Agreement); 
 (7) assets or property subject to purchase money liens or capital leases permitted to be incurred under all Secured Documents (as defined in the Intercreditor Agreement), to the extent a Lien on such assets or
property is not permitted, under the terms of the documents governing such purchase money liens, purchase money indebtedness or capital leases, to be created to secure any Secured Debt Obligations (as defined in the Intercreditor Agreement);

 (8) all “securities” of any of the Issuers’ “affiliates” (as the terms “securities” and
“affiliates” are used in Rule 3-16 of Regulation S-X under the Securities Act of 1933, as amended); 
 (9) Equity Interests in any
joint venture with a third party that is not an Affiliate of such Grantor, to the extent a pledge of such Equity Interests is prohibited by the documents governing such joint venture; 
 (10) the real property located at 1951 Highway 304, Belen, New Mexico, the real property located at 177 Florence Street, Leominster, Massachusetts, and
the real property located at 1900 S. Clark Road, Havre de Grace, Maryland, in each case, including all fixtures and improvements located thereon; and 
 (11) the real property located at 3333 East 87th Street, Chicago, Illinois (formerly known as the USX South Works site), including all fixtures and improvements located thereon; 
 provided further that notwithstanding the foregoing proviso, the Collateral does include all deposit and securities accounts identified on Schedules I and II
hereto and all instruments identified on Schedule I hereto. For the avoidance of doubt, the security interest created in this Section 1 is subject to the Intercreditor Agreement, including without limitation Section 2.01 thereof.

 Section 2. Security for Obligations. The security interest in the Collateral created hereunder secures, in the case of each
Grantor, the payment of all Obligations of such Grantor now or hereafter existing under the Loan Documents and the Bank Products, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest,
fees, premiums, penalties, indemnifications, contract causes of action, costs, expenses or otherwise (all such Obligations being the “Secured Obligations”). Without limiting the generality of the foregoing, the security
interest in the Collateral created hereunder secures, as to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and would be owed by such Grantor to any Secured Party under the Loan Documents or the Bank Products
but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving an Obligor. 
  

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 Section 3. Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each
Grantor shall remain liable under the contracts and agreements included in such Grantor’s Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been
executed, (b) the exercise by the Agent of any of the rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) no Secured Party shall have
any obligation or liability under the contracts and agreements included in the Collateral by reason of this Agreement or any other Loan Document, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor
thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. 
 Section 4. Delivery and Control of
Security Collateral. (a) All instruments representing or evidencing Pledged Debt (except to the extent the aggregate outstanding principal amount of Pledged Debt owing to such Grantor does not exceed $200,000) with respect to any Grantor
shall be delivered to and held by or on behalf of the Agent pursuant hereto (unless the Noteholder Collateral Trustee is granted a prior security interest in such instruments and the same are required to be delivered (and are so delivered) to the
Noteholder Collateral Trustee for the benefit of the Priority Lien Secured Parties pursuant to the Intercreditor Agreement) and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or
assignment in blank, all in form and substance reasonably satisfactory to the Agent. 
 (b) With respect to any Securities Account and any
Security Collateral that constitutes a security entitlement (except for any Securities Account that is an Excluded Account (as defined below)), the relevant Grantor will cause the securities intermediary with respect to such Securities Account and
security entitlement either (i) to identify in its records the Agent as the entitlement holder thereof, unless the Noteholder Collateral Trustee is granted a prior security interest in such security entitlement and such Grantor is required to
cause (and has so caused) such securities intermediary to identify in its records the Noteholder Collateral Trustee as the entitlement holder thereof for the benefit of the Priority Lien Secured Parties pursuant to the Intercreditor Agreement, or
(ii) to agree with such Grantor and the Agent that such securities intermediary will comply with entitlement orders originated by the Agent without further consent of such Grantor, such agreement to be in form and substance reasonably
satisfactory to the Agent (and if the Noteholder Collateral Trustee is required to be granted (and has been granted) a prior security interest in such Securities Account and security entitlement for the benefit of the Priority Lien Secured Parties
pursuant to the Intercreditor Agreement, with provisions instructing such securities intermediary that entitlement orders originated by the Noteholder Collateral Trustee controls pursuant to the Intercreditor Agreement) (a “Securities
Account Control Agreement”). 
 (c) Subject to the Intercreditor Agreement, the Agent shall have the right, at any time after
the occurrence and during the continuation of an Event of Default, (i) in its discretion and without notice to any Grantor, to transfer to or to register in the name of the Agent or any of its nominees any or all of the Security Collateral,
subject only to the revocable rights specified in Section 14(a) and (ii) to convert Security Collateral consisting of financial assets credited to the Securities Account to Security Collateral consisting of financial assets held directly
by the Agent, and to convert Security Collateral consisting of financial assets held directly by the Agent to Security Collateral consisting of financial assets credited to the Securities Account. 
  

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 (d) Upon the request of the Agent following the occurrence and during the continuance of an Event of
Default, each Grantor will notify each issuer of Security Collateral granted by it hereunder that such Security Collateral is subject to the security interest granted hereunder. 
 Section 5. Maintaining the Account Collateral. Until Full Payment of the Obligations (the “Discharge”): 
 (a) Each Grantor will maintain deposit accounts (other than an account exclusively used for payroll, payroll taxes, employee benefits or
other similar fiduciary obligations, any trust account, any zero-balance disbursement account (i.e., any account used only for disbursement purposes in which a balance of zero is maintained by automatically transferring funds from another account in
an amount only large enough to cover checks presented), any account used to settle foreign exchange trades, accounts having an aggregate balance of not more than $250,000 or the account number 8666823891 maintained with Bank of America, N.A. so long
as the ending daily balance of such account does not exceed $500,000 (collectively, the “Excluded Accounts”)) only with a bank (a “Pledged Account Bank”) that has agreed with such Grantor and the Agent
to comply with instructions originated by the Agent directing the disposition of funds in such deposit account without the further consent of such Grantor, such agreement to be in form and substance reasonably satisfactory to the Agent and each of
the Collateral Agents (in the case of the Collateral Proceeds Account, with provisions instructing such bank that pursuant to the Intercreditor Agreement, instructions originated by the Noteholder Collateral Trustee controls) (a “Deposit
Account Control Agreement”). 
 (b) Each Grantor will (i) immediately instruct each Person obligated at any
time to make any payment to such Grantor for any reason (an “Obligor”) to make such payment to a Pledged Deposit Account or the Cash Collateral Account and (ii) deposit in a Pledged Deposit Account or the Cash Collateral
Account, at the end of each Business Day, all proceeds of Collateral and all other cash of such Grantor; provided that only proceeds of the Noteholder First Lien Collateral shall be deposited in the Collateral Proceeds Account and each
Grantor shall so instruct each such Person, shall so deposit proceeds of any Collateral and other cash and shall take all other actions necessary to give effect to the intent of this proviso. 
 (c) Subject to the Intercreditor Agreement, the Agent may, at any time and without notice to, or consent from, the Grantor, transfer, or
direct the transfer of, funds from the Pledged Deposit Accounts or the Cash Collateral Account to satisfy the Grantor’s Obligations if an Event of Default shall have occurred and be continuing. 
 Section 6. Investing of Amounts in the Cash Collateral Account. The Agent will, subject to the provisions of Sections 5 and 22, from time to time
(a) invest, or direct the applicable Pledged Account Bank to invest, amounts received with respect to the Cash Collateral Account in such Cash Equivalents credited to the Cash Collateral Account as the Borrower Agent may select and the Agent
and each of the Collateral Agents may approve, and (b) invest interest paid on the Cash Equivalents referred to in clause (a) above, and reinvest other proceeds of any such Cash Equivalents that may mature or be sold, in each case in such
Cash Equivalents 

  

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credited in the same manner. Interest and proceeds that are not invested or reinvested in Cash Equivalents as provided above shall be deposited and held in
the Cash Collateral Account. In addition, the Agent shall have the right (as the Agent and each Collateral Agent may approve) at any time to exchange, or direct the applicable Pledged Account Bank to exchange, such Cash Equivalents for similar Cash
Equivalents of smaller or larger denominations, or for other Cash Equivalents, credited to the Cash Collateral Account. 
 Section 7. Cash
Dominion Period. During a Cash Dominion Period, the Agent may send to each bank or securities intermediary party to any Deposit Account Control Agreement or Securities Account Control Agreement a notice terminating the rights of such Grantor to
originate any entitlement orders or instructions directing disposition of funds. In addition, the Agent agrees (i) to send such notices described above only if a Cash Dominion Period is in effect and (ii) to send notices to such banks and
securities intermediaries revoking such notices described above if such Cash Dominion Period has terminated. 
 Section 8. Representations
and Warranties. Each Grantor represents and warrants as follows: 
 (a) As of the date hereof, such Grantor’s exact
legal name, chief executive office, type of organization, jurisdiction of organization and organizational identification number is set forth in Schedule VI hereto. Within the five years preceding the date hereof, such Grantor has not changed its
name, chief executive office, type of organization, jurisdiction of organization or organizational identification number from those set forth in Schedule VI hereto except as set forth in Schedule VII hereto. 
 (b) Such Grantor owns or has rights in the Collateral granted by it hereunder free and clear of any Lien except for the security interest
created under this Agreement or the Liens permitted under the Loan Agreement (including, without limitation, the Liens held by the Noteholder Collateral Trustee). No effective financing statement or other instrument similar in effect covering all or
any part of such Collateral or listing such Grantor as debtor is on file in any recording office, except such as may have been filed in favor of the Agent relating to the Loan Documents or with respect to Liens otherwise permitted under the Loan
Agreement (including, without limitation, the Liens held by the Noteholder Collateral Trustee). 
 (c) All of the Equipment
and Inventory (other than Inventory in transit, mobile Equipment and Equipment out for service or repair) of such Grantor are located at the places specified therefor in Schedule VIII hereto or at another location as to which such Grantor has
complied with the requirements of Section 10(a). Such Grantor has exclusive possession and control of its Equipment and Inventory, other than (i) Equipment or Inventory stored at any leased premises or warehouse for which such Grantor has
made commercially reasonable efforts to obtain a Lien Waiver from the landlord or warehouseman, as applicable, and (ii) Inventory in transit, mobile Equipment and Equipment out for service or repair. 
  

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 (d) As of the date hereof, none of the Receivables or Agreement Collateral is evidenced
by a promissory note or other instrument that has not been delivered to the Agent (except to the extent the aggregate outstanding principal amount of such promissory notes and instruments owing to such Grantor does not exceed $200,000 and except for
any such promissory note or other instrument that is required to be delivered and has been so delivered to the Noteholder Collateral Trustee pursuant to the Intercreditor Agreement). 
 (e) The Pledged Debt pledged by such Grantor hereunder which is issued by a Subsidiary of such Grantor has been duly authorized,
authenticated or issued and delivered, is the legal, valid and binding obligation of the issuers thereof, is evidenced by one or more promissory notes (which promissory notes if required to be delivered to the Agent under Section 4(a) have been
delivered to the Agent (except for such promissory notes that are required to be delivered and have been so delivered to the Noteholder Collateral Trustee pursuant to the Intercreditor Agreement)) and is not in default. 
 (f) As of the date hereof, the Initial Pledged Debt constitutes all of the outstanding debt for borrowed money owed to such Grantor by the
issuers thereof and is outstanding in the principal amount indicated on Schedule I hereto. 
 (g) As of the date hereof, such
Grantor has no investment property, other than Excluded Assets and the investment property listed on Schedule I hereto. 
 (h)
As of the date hereof except as set forth on Schedule III hereto, such Grantor is not a party to any Material Contract extending more than one year after the date hereof under which the total committed consideration payable to such Grantor exceeds
$10,000,000 in any Fiscal Year. The Assigned Agreements to which such Grantor is a party, true and complete copies of which have been furnished to or made available to the Agent or its counsel on a confidential basis, have been duly authorized,
executed and delivered by such Grantor and, to the knowledge of such Grantor, all other parties thereto, have not been amended, amended and restated, supplemented or otherwise modified as of the date hereof, are in full force and effect and are
binding upon and enforceable against such Grantor and, to the knowledge of such Grantor, all other parties thereto in accordance with their terms. There exists no default by such Grantor under any Assigned Agreement to which such Grantor is a party,
other than any default that could not reasonably be expected to have a Material Adverse Effect. 
 (i) Such Grantor has no
deposit accounts, other than the Excluded Accounts, the Pledged Deposit Accounts listed on Schedule II hereto and additional Pledged Deposit Accounts as to which such Grantor has complied with the applicable requirements of Section 5.

 (j) Such Grantor is not a beneficiary or assignee under any letter of credit, other than the letters of credit described in
Schedule IX hereto and additional letters of credit as to which such Grantor has complied with the requirements of Section 16. 
  

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 (k) This Agreement creates in favor of the Agent for the benefit of the Secured Parties a
valid security interest in the Collateral granted by such Grantor, securing the payment of the Secured Obligations. The security interest in the Collateral created under this Agreement and subject to the UCC (the “UCC
Collateral”) constitutes, subject only to the filing of appropriate financing statements pursuant to the UCC, the recordation of the Intellectual Property Security Agreement with the U.S. Patent and Trademark Office and the U.S.
Copyright Office and the execution of appropriate control agreements, a perfected security interest in the UCC Collateral granted by such Grantor to the extent that a security interest in such UCC Collateral may be perfected by the filing of a
financing statement, the recordation of a security agreement with the U.S. Patent and Trademark Office and the U.S. Copyright Office (except to the extent that the recordation of any such security agreement is not required pursuant to this Agreement
or the other Loan Documents) or by the execution of a control agreement (except to the extent that the execution of any such control agreement is not required pursuant to the terms of this Agreement or the other Loan Documents), subject only to
Permitted Liens. Such security interest is, in the case of a security interest in the ABL First Lien Collateral, first priority and, in the case of a security interest in the Noteholder First Lien Collateral, second priority in accordance with the
Intercreditor Agreement, in each case subject only to Permitted Liens. 
 (l) As of the date hereof, no authorization or
approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for (i) the grant by such Grantor of the security interest granted hereunder or for the execution,
delivery or performance of this Agreement by such Grantor, (ii) the perfection or maintenance of the security interest created under this Agreement (including the priorities of such security interest described in clause (k) above), except
for (x) the filing of financing and continuation statements under the UCC, which financing statements have been delivered or made available to the Agent in proper form for filing, (y) the recordation of the Intellectual Property Security
Agreements referred to in Section 13(f) with the U.S. Patent and Trademark Office and the U.S. Copyright Office, which agreements have been (or concurrently with the execution of this Agreement will be) duly executed, will be promptly recorded
and are in full force and effect and (z) execution and delivery of control agreements, or (iii) the exercise by the Agent of its voting or other rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to
this Agreement, except as may be required in connection with the disposition of any portion of the Security Collateral by laws affecting the offering and sale of securities generally. 
 (m) Each Grantor has taken reasonable steps to assure that all Inventory has been produced in compliance in all material respects with the
Fair Labor Standards Act and, to the extent non-compliance therewith could reasonably be expected to have a Material Adverse Effect, all other Applicable Laws. 
 (n) As to itself and its Intellectual Property Collateral: 
 (i) Except where it could not be reasonably likely to have a Material Adverse Effect, the operation of such Grantor’s business as
currently conducted and the use of the Intellectual Property Collateral in connection therewith do not, to the knowledge of such Grantor, conflict with, infringe, misappropriate, dilute, misuse or otherwise violate the intellectual property rights
of any third party. 
  

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 (ii) Except where it could not be reasonably likely to have a Material Adverse Effect,
such Grantor is the exclusive owner of all right, title and interest in and to its Intellectual Property Collateral, and is entitled to use all such Intellectual Property Collateral in connection with its business as currently conducted subject only
to the terms of the IP Agreements. 
 (iii) The Intellectual Property Collateral set forth on Schedule IV hereto includes all
of the patents, patent applications, domain names, trademark and service mark registrations and applications, copyright registrations and applications and material IP Agreements (other than off-the-shelf licenses for computer software) owned by such
Grantor as of the date hereof. 
 (iv) Except where it could not be reasonably likely to have a Material Adverse Effect, the
Intellectual Property Collateral is subsisting and has not been adjudged invalid or unenforceable in whole or part, and to the best of such Grantor’s knowledge, is valid and enforceable. Such Grantor is not aware of any uses of any item of
Intellectual Property Collateral that could reasonably be expected to lead to such item becoming invalid or unenforceable. 
 (v) Except for any Intellectual Property Collateral, the loss of which could not be reasonably likely to have a Material Adverse Effect and as to which such Grantor has determined the use, pursuit or maintenance thereof is not desirable in
the conduct of such Grantor’s business, such Grantor has made or performed all filings, recordings and other acts and has paid all required fees and taxes to maintain and protect its interest in its material registered Intellectual Property
Collateral in full force and effect, and to protect and maintain its interest therein including, without limitation, recordations of any of its interests in the Patents and Trademarks with the U.S. Patent and Trademark Office and in corresponding
national and international trademark and patent offices, and recordation of any of its interests in the Copyrights with the U.S. Copyright Office and in corresponding national and international copyright offices. Except where it could not be
reasonably likely to have a Material Adverse Effect, such Grantor has used proper statutory notice in connection with its use of each patent, trademark and copyright included in the Intellectual Property Collateral. 
 (vi) Except as disclosed on Schedule IV to this Agreement, no claim, action, suit, investigation, litigation or proceeding has been
asserted or is pending or threatened against such Grantor (i) challenging or seeking to deny or restrict the Grantor’s rights in or use of any of the Intellectual Property Collateral, (ii) alleging that the Grantor’s rights in or
use of the Intellectual Property Collateral or that any services provided by, processes used by, or products manufactured or sold by, such Grantor infringe, misappropriate, dilute, misuse or otherwise violate any patent, trademark, copyright or
other proprietary or intellectual property right of any third party, or (iii) alleging that the Intellectual Property Collateral is 

  

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being licensed or sublicensed by such Grantor in violation or contravention of the terms of any license or other agreement, which in each case could
reasonably be likely to have a Material Adverse Effect. Except where it could not be reasonably likely to have a Material Adverse Effect, to the knowledge of such Grantor, no Person is engaging in any activity that infringes, misappropriates,
dilutes, misuses or otherwise violates such Grantor’s rights in any Intellectual Property Collateral. Except where it could not be reasonably likely to have a Material Adverse Effect, such Grantor has not granted any license, release, covenant
not to sue, non-assertion assurance, or other right to any Person with respect to any part of the Intellectual Property Collateral. The consummation of the transactions contemplated by the Transaction Documents will not result in the termination or
impairment of any of the Intellectual Property Collateral. 
 (vii) Except where it could not be reasonably likely to have a
Material Adverse Effect, with respect to each IP Agreement: (A) such IP Agreement is valid and binding and in full force and effect and represents the entire agreement between such Grantor and, to such Grantor’s knowledge, the other
parties thereto with respect to the subject matter thereof; (B) such IP Agreement will not cease to be valid and binding and in full force and effect on terms identical to those currently in effect as a result of the rights and interest granted
herein, nor will the grant of such rights and interest constitute a breach or default under such IP Agreement or otherwise give any party thereto a right to terminate such IP Agreement; (C) such Grantor has not received any notice of
termination or cancellation under such IP Agreement; (D) such Grantor has not received any notice of a breach or default under such IP Agreement, which breach or default has not been cured; (E) such Grantor has not granted to any other
third party (other than the Noteholder Collateral Trustee) any rights, adverse or otherwise, under such IP Agreement, except duly authorized sublicenses and as permitted under the Loan Documents; and (F) neither such Grantor nor, to such
Grantor’s knowledge, any other party to such IP Agreement is in breach or default thereof in any material respect, and no event has occurred that, with notice or lapse of time or both, would constitute such a breach or default or permit
termination, modification or acceleration under such IP Agreement. 
 (viii) Except where it could not be reasonably likely to
have a Material Adverse Effect, (A) none of the Trade Secrets of such Grantor have been used, divulged, disclosed or appropriated to the detriment of such Grantor for the benefit of any Person other than such Grantor; (B) no employee,
independent contractor or agent of such Grantor has misappropriated any trade secrets of any other Person in the course of the performance of his or her duties as an employee, independent contractor or agent of such Grantor; and (C) no
employee, independent contractor or agent of such Grantor is in default or breach of any term of any employment agreement, non-disclosure agreement, assignment of inventions agreement or similar agreement or contract relating in any way to the
protection, ownership, development, use or transfer of such Grantor’s rights in any Intellectual Property Collateral. 
  

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 (ix) Except where it could not be reasonably likely to have a Material Adverse Effect, no
Grantor or Intellectual Property Collateral is subject to any outstanding consent, settlement, decree, order, injunction, judgment or ruling restricting the use of any Intellectual Property Collateral or that would impair the validity or
enforceability of such Intellectual Property Collateral. 
 (o) Such Grantor has no commercial tort claims which might
reasonably be expected to result in awarded damages (except to the extent the aggregate amount thereof for such Grantor (less any and all legal and other expenses incurred or reasonably expected to be incurred by such Grantor) does not exceed
$200,000) other than those listed in Schedule V hereto and additional commercial tort claims as to which such Grantor has complied with the requirements of Section 17. 
 Section 9. Further Assurances. (a) Each Grantor agrees that from time to time, at the expense of such Grantor, such Grantor will promptly
execute and deliver, or otherwise authenticate, all further instruments and documents, and take all further action that may be necessary or desirable, or that the Agent may request, in order to perfect and protect any pledge or security interest
granted or purported to be granted by such Grantor hereunder or to enable the Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral of such Grantor. Without limiting the generality of the foregoing, each
Grantor will promptly with respect to Collateral of such Grantor: (i) at the request of the Agent during the continuance of any Default under Section 11.1(i) of the Loan Agreement or any Event of Default, mark conspicuously each document
included in Inventory, each chattel paper included in Receivables, each Related Contract, each Assigned Agreement (other than any Hedging Agreement) and, at the request of the Agent, each of its records pertaining to such Collateral with a legend,
in form and substance satisfactory to the Agent, indicating that such document, chattel paper, Related Contract, Assigned Agreement or Collateral is subject to the security interest granted hereby; (ii) if any such Collateral shall be evidenced
by a promissory note or other instrument or chattel paper (except to the extent the aggregate outstanding principal amount thereof owing to such Grantor does not exceed $200,000), deliver and pledge to the Agent (unless such promissory note or other
instrument or chattel paper is required to be delivered and has been so delivered to the Noteholder Collateral Trustee pursuant to the Intercreditor Agreement) such note or instrument or chattel paper duly indorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance satisfactory to the Agent; (iii) file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary or desirable, or
as the Agent may request, in order to perfect and preserve the security interest granted or purported to be granted by such Grantor hereunder; and (iv) deliver to the Agent evidence that all other actions that the Agent may deem reasonably
necessary or desirable in order to perfect and protect the security interest granted or purported to be granted by such Grantor under this Agreement has been taken. 
 (b) Each Grantor hereby authorizes the Agent to file one or more financing or continuation statements, and amendments thereto, including, without limitation, one or more financing statements indicating that such
financing statements cover all or any assets or all or any personal property (or words of similar effect) of such Grantor, in each case whether now existing or hereafter acquired or arising, regardless of whether any particular asset described in
such financing statements falls within the scope of the UCC or the granting clause of this Agreement. A photocopy or other reproduction of this Agreement shall be sufficient as a financing statement where permitted by law. Each Grantor ratifies its
authorization for the Agent to have filed such financing statements, continuation statements or amendments filed prior to the date hereof. 
  

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 (c) Each Grantor will furnish to the Agent from time to time statements and schedules further identifying
and describing the Collateral of such Grantor and such other reports in connection with such Collateral as the Agent may reasonably request, all in reasonable detail. 
 Section 10. As to Equipment and Inventory. (a) Each Grantor will keep its Equipment and Inventory (other than Inventory in transit, mobile Equipment and Equipment out for service or repair) at the places
therefor specified in Section 8(c), except that such Grantor may (i) make sales or other dispositions of Equipment and Inventory in accordance with Section 10.2.6 of the Loan Agreement and (ii) move Inventory to (A) any
location on Schedule VIII hereto or (B) so long as such Grantor has given Agent and each Collateral Agent notice at least 15 days prior to moving any Equipment or Inventory thereto, any other location in the United States. 
 (b) Except as could not reasonably be expected to have a Material Adverse Effect, each Grantor will cause its Equipment to be maintained and preserved in
the same condition, repair and working order as when new, ordinary wear and tear excepted, and will forthwith, or in the case of any loss or damage to any of such Equipment as soon as practicable after the occurrence thereof, make or cause to be
made all repairs, replacements and other improvements in connection therewith that are necessary or desirable to such end. Each Grantor will promptly furnish to the Agent and each Collateral Agent a statement respecting any loss or damage exceeding
$250,000 to any of its Equipment or Inventory. 
 (c) Each Grantor will pay promptly when due all property and other taxes, assessments and
governmental charges or levies imposed upon, and all claims (including, without limitation, claims for labor, materials and supplies) against, its Equipment and Inventory, except where the such taxes, assessments, charges, levies or claims are being
Properly Contested or where the failure to pay such taxes, assessments, charges, levies or claims could not reasonably be expected to have a Material Adverse Effect. In producing its Inventory, each Grantor will take reasonable steps to assure that
such Inventory is produced in compliance in all material respects with the Fair Labor Standards Act and, to the extent non-compliance therewith could reasonably be expected to have a Material Adverse Effect, all other Applicable Laws. 
 Section 11. Insurance. (a) Each Grantor will, at its own expense, maintain insurance with respect to its Equipment and Inventory in such
amounts, against such risks, in such form and with such insurers, as shall be reasonably satisfactory to the Agent and each of the Collateral Agents. Each policy of each Grantor for liability insurance shall provide for all losses to be paid on
behalf of the Agent and such Grantor as their interests may appear, and each policy for property damage insurance shall provide for all losses (except for losses of less than $250,000 per occurrence) to be paid directly to the Agent (unless, in the
case of Equipment, the Noteholder Collateral Trustee is granted a prior security interest therein and such applicable insurance policy provides for all losses to be paid directly to the Noteholder Collateral Trustee). Unless Agent and each
Collateral Agent shall agree otherwise and except as provided in the Intercreditor Agreement, each such policy shall in addition (i) name such Grantor and the Agent as insured parties or loss 

  

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payees thereunder (without any representation or warranty by or obligation upon the Agent) as their interests may appear, (ii) contain the agreement by
the insurer that any loss thereunder shall be payable to the Agent notwithstanding any action, inaction or breach of representation or warranty by such Grantor, (iii) provide that there shall be no recourse against the Agent for payment of
premiums or other amounts with respect thereto and (iv) provide that at least 30 days’ prior written notice of cancellation or of lapse shall be given to the Agent by the insurer. Each Grantor will, if so requested by the Agent or any
Collateral Agent, deliver to the Agent and each Collateral Agent original or duplicate policies of such insurance and, as often as the Agent or any Collateral Agent may reasonably request, a report of a reputable insurance broker with respect to
such insurance. 
 (b) Reimbursement under any liability insurance maintained by any Grantor pursuant to this Section 11 may be paid
directly to the Person who shall have incurred liability covered by such insurance. 
 (c) Any proceeds of insurance (other than proceeds
from workers’ compensation or D&O insurance) relating to, and any awards arising from condemnation of, any ABL First Lien Collateral, in each case net of any taxes and other out-of-pocket fees and expenses, shall be (i) so long as no
Event of Default has occurred and is continuing, reinvested within 60 days of the receipt of such net proceeds or awards to acquire or repair Inventory or (ii) paid to Agent and applied to payment of the Loans, and then to any other Obligations
outstanding then due, without any reduction in the Commitments. 
 Section 12. Post-Closing Changes; Collections on Assigned Agreements,
Receivables and Related Contracts. (a) No Grantor will change its name, type of organization, jurisdiction of organization or organizational identification number from those set forth in Section 8(a) of this Agreement without prior
written notice to the Agent and taking all action reasonably required by the Agent for the purpose of perfecting or protecting the security interest granted by this Agreement. Each Grantor will hold and preserve its records relating to the
Collateral, including, without limitation, the Related Contracts, and will permit representatives of the Agent at any time subject to reasonable notice and during normal business hours to inspect and make abstracts from such records and other
documents. If any Grantor does not have an organizational identification number and later obtains one, it will forthwith notify the Agent of such organizational identification number. 
 (b) Except as otherwise provided in this subsection (b), each Grantor will continue to collect, at its own expense, all amounts due or to become due such
Grantor under the Receivables and Related Contracts. In connection with such collections, such Grantor may take such action as such Grantor may deem necessary or advisable to enforce collection of the Assigned Agreements, Receivables and Related
Contracts; provided, however, that the Agent and each Collateral Agent shall have the right at any time, upon the occurrence and during the continuance of an Event of Default and upon written notice to such Grantor of its intention to
do so, to notify the Obligors under any Assigned Agreements, Receivables and Related Contracts of the assignment of such Assigned Agreements, Receivables and Related Contracts to the Agent and to direct such Obligors to make payment of all amounts
due or to become due to such Grantor thereunder directly to the Agent and, upon such notification and at the expense of such Grantor, to 

  

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enforce collection of any such Assigned Agreements, Receivables and Related Contracts, to adjust, settle or compromise the amount or payment thereof, in the
same manner and to the same extent as such Grantor might have done, and to otherwise exercise all rights with respect to such Assigned Agreements, Receivables and Related Contracts, including, without limitation, those set forth set forth in
Section 9-607 of the UCC. After receipt by any Grantor of the notice from the Agent or any Collateral Agent referred to in the proviso to the preceding sentence and so long as an Event of Default is continuing, (i) all amounts and proceeds
(including, without limitation, instruments) received by such Grantor in respect of the Assigned Agreements, Receivables and Related Contracts of such Grantor shall be received in trust for the benefit of the Agent hereunder, shall be segregated
from other funds of such Grantor and shall be forthwith paid over to the Agent in the same form as so received (with any necessary indorsement) to be deposited in the Cash Collateral Account and either (A) released to such Grantor if no Event
of Default shall have occurred and be continuing or (B) if any Event of Default shall have occurred and be continuing, applied as provided in Section 22(b) and (ii) such Grantor will not adjust, settle or compromise the amount or
payment of any Receivable or amount due on any Assigned Agreement or Related Contract, release wholly or partly any Obligor thereof or allow any credit or discount thereon. No Grantor will permit or consent to the subordination of its right to
payment under any of the Assigned Agreements, Receivables and Related Contracts to any other indebtedness or obligations of the Obligor thereof. 
 Section 13. As to Intellectual Property Collateral. (a) Subject to the last sentence of this Section 13(a), with respect to each item of its Intellectual Property Collateral, each Grantor agrees to take, at its expense, all
necessary steps, including, without limitation, in the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other governmental authority, to (i) maintain the validity and enforceability of such Intellectual Property Collateral
and maintain such Intellectual Property Collateral in full force and effect, and (ii) pursue the registration and maintenance of each patent, trademark, or copyright registration or application, now or hereafter included in such Intellectual
Property Collateral of such Grantor, including, without limitation, the payment of required fees and taxes, the filing of responses to office actions issued by the U.S. Patent and Trademark Office, the U.S. Copyright Office or other governmental
authorities, the filing of applications for renewal or extension, the filing of affidavits under Sections 8 and 15 of the U.S. Trademark Act, the filing of divisional, continuation, continuation-in-part, reissue and renewal applications or
extensions, the payment of maintenance fees and the participation in interference, reexamination, opposition, cancellation, infringement and misappropriation proceedings. No Grantor shall, without the written consent of the Agent, sell, assign,
convey, transfer, discontinue use of, permit to lapse, or otherwise abandon any Intellectual Property Collateral, or abandon any right to file an application for patent, trademark, or copyright, unless such Grantor shall have previously determined
that such use or the pursuit or maintenance of such Intellectual Property Collateral is no longer desirable in the conduct of such Grantor’s business and that the loss thereof could not reasonably be likely to have a Material Adverse Effect.

 (b) Each Grantor agrees promptly to notify the Agent if such Grantor becomes aware (i) that any item of the Intellectual Property
Collateral may have become abandoned, placed in the public domain, invalid or unenforceable, or of any adverse determination or development regarding such Grantor’s ownership of any item of Intellectual Property Collateral or its right to
register any patent, trademark or copyright included in the Intellectual Property Collateral or to keep and maintain and enforce any 

  

 18 

 
issued patent or patent application or any registration or application for any trademark or copyright, except to the extent that such Grantor is permitted to
abandon or discontinue use of such Intellectual Property Collateral under Section 13(a) above, or (ii) of any adverse determination or the institution of any proceeding (including, without limitation, the institution of any proceeding in
the U.S. Patent and Trademark Office or any court) regarding any item of the Intellectual Property Collateral that is material to such Grantor’s business. 
 (c) In the event that any Grantor becomes aware that any item of the Intellectual Property Collateral that is material to such Grantor’s business is being infringed, misappropriated, diluted or otherwise violated
by a third party, such Grantor shall promptly notify the Agent and shall take such actions, at its expense, as such Grantor or the Agent deems reasonable and appropriate under the circumstances to protect or enforce such Intellectual Property
Collateral, including, without limitation, suing for infringement or misappropriation and for an injunction against such infringement or misappropriation. 
 (d) Each Grantor shall use appropriate statutory notice in connection with its use of registered trademarks, appropriate marking practices in connection with its use of patents, and appropriate notice of copyright in
connection with the publication of copyrights, in each case, that are included in the Intellectual Property Collateral. No Grantor shall do or permit any act or knowingly omit to do any act whereby any of its Intellectual Property Collateral may
lapse or become invalid or unenforceable or placed in the public domain, except to the extent that such Grantor is permitted to abandon or discontinue use of such Intellectual Property Collateral under Section 13(a) above. 
 (e) Each Grantor shall take all steps which it or, consistent with the terms of this Agreement, the Agent deems reasonable and appropriate under the
circumstances to preserve and protect each item of its Intellectual Property Collateral, including, without limitation, maintaining the quality of any and all products or services used or provided in connection with any of the Trademarks, consistent
with the quality of the products and services as of the date hereof, and taking all steps necessary to ensure that all licensed users of any of the Trademarks use such consistent standards of quality. 
 (f) With respect to its Intellectual Property Collateral, each Grantor agrees to execute or otherwise authenticate an agreement, in substantially the
form set forth in Exhibit A hereto or otherwise in form and substance satisfactory to the Agent (an “Intellectual Property Security Agreement”), for recording the security interest granted hereunder to the Agent in such
Intellectual Property Collateral with the U.S. Patent and Trademark Office, the U.S. Copyright Office and, to the extent reasonably requested by the Agent, any other governmental authorities necessary to perfect the security interest hereunder in
such Intellectual Property Collateral. 
 (g) Each Grantor agrees that should it obtain or otherwise acquire an ownership interest in any
item of the type set forth in Section 1(g) that is not on the date hereof a part of the Intellectual Property Collateral (“After-Acquired Intellectual Property”) (i) the provisions of this Agreement shall
automatically apply thereto, and (ii) any such After-Acquired Intellectual Property and, in the case of trademarks, the goodwill symbolized thereby, shall automatically become part of the Intellectual Property Collateral subject to the terms
and conditions of this Agreement with respect thereto. Each Grantor shall give notice to the Agent pursuant to Section 7.1.2 

  

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of the Loan Agreement identifying any patent, patent applications, trademark registrations, trademark applications, copyright registrations and copyright
applications included in the After-Acquired Intellectual Property, and such Grantor shall execute and deliver to the Agent with such written notice, or otherwise authenticate, an agreement substantially in the form of Exhibit B hereto or otherwise
in form and substance satisfactory to the Agent (an “IP Security Agreement Supplement”) covering such After-Acquired Intellectual Property, which IP Security Agreement Supplement shall be recorded with the U.S. Patent and
Trademark Office, the U.S. Copyright Office and, to the extent reasonably requested by the Agent, any other governmental authorities necessary to perfect the security interest hereunder in such After-Acquired Intellectual Property. 
 Section 14. Voting Rights; Dividends; Etc. (a) So long as no Event of Default shall have occurred and be continuing: 
 (i) Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Security Collateral of
such Grantor or any part thereof for any purpose; provided however, that such Grantor will not exercise or refrain from exercising any such right if such action would have a material adverse effect on the value of the Security Collateral or
any part thereof. 
 (ii) Each Grantor shall be entitled to receive and retain any and all dividends, interest and other
distributions paid in respect of the Security Collateral of such Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Loan Documents; provided, however, that if any Event of Default has
occurred and is continuing, any and all 
 (A) dividends, interest and other distributions paid or payable other than in cash
in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Security Collateral, 
 (B) dividends and other distributions paid or payable in cash in respect of any Security Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital,
capital surplus or paid in surplus and 
 (C) cash paid, payable or otherwise distributed in respect of principal of, or in
redemption of, or in exchange for, any Security Collateral 
 shall be, and shall be forthwith delivered to the Agent (unless such cash is
required to be delivered and has been so delivered to the Noteholder Collateral Trustee pursuant to the Intercreditor Agreement) to hold as, Security Collateral and shall, if received by such Grantor, be received in trust for the benefit of the
Agent, be segregated from the other property or funds of such Grantor and be forthwith delivered to the Agent (unless such cash is required to be delivered and has been so delivered to the Noteholder Collateral Trustee pursuant to the Intercreditor
Agreement) as Security Collateral in the same form as so received (with any necessary indorsement). 
  

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 (iii) Subject to the Intercreditor Agreement, the Agent will execute and deliver (or
cause to be executed and delivered) to each Grantor all such proxies and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise
pursuant to paragraph (i) above and to receive the dividends or interest payments that it is authorized to receive and retain pursuant to paragraph (ii) above. 
 (b) Upon the occurrence and during the continuance of an Event of Default: 
 (i) All rights
of each Grantor (x) to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 14(a)(i) shall, upon notice to such Grantor by the Agent, cease and
(y) to receive the dividends, interest and other distributions that it would otherwise be authorized to receive and retain pursuant to Section 14(a)(ii) shall automatically cease, and all such rights shall thereupon become vested in the
Agent, which shall thereupon so long as an Event of Default shall be continuing have the sole right to exercise or refrain from exercising such voting and other consensual rights and to receive and hold as Security Collateral such dividends,
interest and other distributions. 
 (ii) All dividends, interest and other distributions that are received by any Grantor
contrary to the provisions of paragraph (i) of this Section 14(b) shall, so long as an Event of Default shall be continuing, be received in trust for the benefit of the Agent, shall be segregated from other funds of such Grantor and shall
be forthwith paid over to the Agent (unless such dividends, interest and other distributions are required to be delivered and have been so delivered to the Noteholder Collateral Trustee pursuant to the Intercreditor Agreement) as Security Collateral
in the same form as so received (with any necessary indorsement). 
 Section 15. As to the Assigned Agreements. (a) Each Grantor
will at its expense: 
 (i) perform and observe all terms and provisions of the Assigned Agreements to be performed or
observed by it, maintain the Assigned Agreements to which it is a party in full force and effect, enforce the Assigned Agreements to which it is a party in accordance with the terms thereof and take all such action to such end as may be reasonably
requested from time to time by the Agent, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and 
 (ii) furnish to the Agent or its counsel on a confidential basis promptly upon receipt thereof copies of all notices, requests and other documents received by such Grantor under or pursuant to the Assigned Agreements
to which it is a party, and from time to time (A) furnish to the Agent or its counsel on a confidential basis such information and reports regarding the Assigned Agreements and such other Collateral of such Grantor as the Agent may reasonably
request and (B) if an Event of Default shall have occurred and be continuing, upon request of the Agent, make to each other party to any Assigned Agreement to which it is a party such demands and requests for information and reports or for
action as such Grantor is entitled to make thereunder. 
  

 21 

 (b) Each Grantor agrees that it will not, except to the extent otherwise permitted under the Loan
Agreement and except where such action could not reasonably be expected to have a Material Adverse Effect: 
 (i) cancel or
terminate any Assigned Agreement to which it is a party or consent to or accept any cancellation or termination thereof; 
 (ii) amend, amend and restate, supplement or otherwise modify any such Assigned Agreement or give any consent, waiver or approval thereunder; 
 (iii) waive any default under or breach of any such Assigned Agreement; or 
 (iv) take any
other action in connection with any such Assigned Agreement that would impair the value of the interests or rights of such Grantor thereunder or that would impair the interests or rights of any Secured Party. 
 (c) Each Grantor hereby consents on its behalf and on behalf of its Subsidiaries to the assignment and pledge to the Agent for benefit of the Secured
Parties of each Assigned Agreement to which it is a party by any other Grantor hereunder. 
 Section 16. As to Letter-of-Credit
Rights. (a) Each Grantor, by granting a security interest in its Receivables consisting of letter-of-credit rights to the Agent, intends to (and hereby does) assign to the Agent its rights (including its contingent rights) to the proceeds
of all Related Contracts consisting of letters of credit of which it is or hereafter becomes a beneficiary or assignee. Each Grantor will promptly use commercially reasonable efforts to cause the issuer of each letter of credit and each nominated
person (if any) with respect thereto to consent to such assignment of the proceeds thereof pursuant to a consent in form and substance reasonably satisfactory to the Agent (with provisions necessary to reflect the Noteholder Collateral
Trustee’s prior security interest therein pursuant to the Intercreditor Agreement if the Noteholder Collateral Trustee is required to be assigned (and has been assigned) the proceeds thereof pursuant to a prior security interest therein for the
benefit of the Secured Parties in accordance with the Intercreditor Agreement) and deliver written evidence of such consent to the Agent. 
 (b) Upon the occurrence of an Event of Default, each Grantor will, promptly upon request by the Agent, (i) notify (and such Grantor hereby authorizes the Agent to notify) the issuer and each nominated person with respect to each of the
Related Contracts consisting of letters of credit that the proceeds thereof have been assigned to the Agent hereunder and any payments due or to become due in respect thereof are to be made directly to the Agent or its designee and (ii) arrange
for the Agent (unless the Noteholder Collateral Trustee is required to become (and has become) the transferee beneficiary thereof pursuant to a prior security interest therein for the benefit of the Secured Parties pursuant to the Intercreditor
Agreement) to become the transferee beneficiary of such letters of credit. 
 Section 17. Commercial Tort Claims. Each Grantor will
promptly give notice to the Agent of any commercial tort claim which might reasonably be expected to result in awarded damages (except to the extent the aggregate amount thereof for such Grantor (less any and all legal and other expenses incurred or
reasonably expected to be incurred by such Grantor) does not exceed $200,000) 

  

 22 

 
that any Grantor may become aware of after the date hereof and will promptly thereafter execute or otherwise authenticate a supplement to this Agreement, and
otherwise take all necessary action, to subject such commercial tort claim to the security interest created under this Agreement. 
 Section
18. Transfers and Other Liens. Each Grantor agrees that it will not (i) sell, assign or otherwise dispose of, or grant any option with respect to, any of the Collateral, other than sales, assignments and other dispositions of Collateral,
and options relating to Collateral, permitted under the terms of the Loan Agreement, or (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral of such Grantor except for the pledge, assignment and security
interest created under this Agreement and Liens permitted under the Loan Agreement. 
 Section 19. Agent Appointed Attorney-in-Fact.
Each Grantor hereby irrevocably appoints the Agent such Grantor’s attorney in fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time, upon the occurrence and during the
continuance of an Event of Default, in the Agent’s discretion, to take any action and to execute any instrument that the Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation:

 (a) to obtain and adjust insurance required to be paid to the Agent pursuant to Section 11, 
 (b) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due
under or in respect of any of the Collateral, 
 (c) to receive, indorse and collect any drafts or other instruments,
documents and chattel paper, in connection with clause (a) or (b) above, and 
 (d) to file any claims or take any
action or institute any proceedings that the Agent may reasonably deem necessary or appropriate for the collection of any of the Collateral or otherwise to enforce compliance with the rights of the Agent with respect to any of the Collateral.

 Section 20. Agent May Perform. Upon the occurrence and during the continuance of an Event of Default, if any Grantor fails to
perform any agreement contained herein, the Agent may, but without any obligation to do so and without notice, itself perform, or cause performance of, such agreement, and the expenses of the Agent incurred in connection therewith shall be payable
by such Grantor under Section 23. 
 Section 21. The Agent’s Duties. (a) The powers conferred on the Agent hereunder
are solely to protect the Secured Parties’ interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually
received by it hereunder, the Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not any
Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Agent shall be deemed to have exercised
reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which it accords its own property of similar nature. 
  

 23 

 (b) Anything contained herein to the contrary notwithstanding, the Agent may from time to time, when the
Agent deems it to be necessary, appoint one or more subagents (each a “Subagent”) for the Agent hereunder with respect to all or any part of the Collateral. In the event that the Agent so appoints any Subagent with respect to
any Collateral, (i) the security interest granted in such Collateral by each Grantor hereunder shall be deemed for purposes of this Security Agreement to have been made to such Subagent, in addition to the Agent, for the ratable benefit of the
Secured Parties, as security for the Secured Obligations of such Grantor, (ii) such Subagent shall automatically be vested, in addition to the Agent, with all rights, powers, privileges, interests and remedies of the Agent hereunder with
respect to such Collateral, and (iii) the term “Agent,” when used herein in relation to any rights, powers, privileges, interests and remedies of the Agent with respect to such Collateral, shall include such Subagent; provided,
however, that no such Subagent shall be authorized to take any action with respect to any such Collateral unless and except to the extent expressly authorized in writing by the Agent. 
 Section 22. Remedies. Subject to the Intercreditor Agreement, if any Event of Default shall have occurred and be continuing: 
 (a) The Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise
available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and also may: (i) require each Grantor to, and each Grantor hereby agrees that it will at its
expense and upon request of the Agent forthwith, assemble all or part of the Collateral as directed by the Agent and make it available to the Agent at a place and time to be designated by the Agent that is reasonably convenient to both parties;
(ii) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such
other terms as the Agent and each of the Collateral Agents may deem commercially reasonable; (iii) occupy any premises owned or leased by any of the Grantors where the Collateral or any part thereof is assembled or located for a reasonable
period in order to effectuate its rights and remedies hereunder or under law, without obligation to such Grantor in respect of such occupation; and (iv) exercise any and all rights and remedies of any of the Grantors under or in connection with
the Collateral, or otherwise in respect of the Collateral, including, without limitation, (A) any and all rights of such Grantor to demand or otherwise require payment of any amount under, or performance of any provision of, the Assigned
Agreements, the Receivables, the Related Contracts and the other Collateral, (B) withdraw, or cause or direct the withdrawal, of all funds with respect to the Account Collateral and (C) exercise all other rights and remedies with respect
to the Assigned Agreements, the Receivables, the Related Contracts and the other Collateral, including, without limitation, those set forth in Section 9-607 of the UCC. Each Grantor agrees that, to the extent notice of sale shall be required by
law, at least ten days’ notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Agent shall not be obligated to 

  

 24 

 
make any sale of Collateral regardless of notice of sale having been given. The Agent may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 
 (b) Any cash held by or on behalf of the Agent and all cash proceeds received by or on behalf of the Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may,
in the discretion of the Agent, be held by the Agent as collateral for, and/or then or at any time thereafter applied (after payment of any amounts payable to the Agent pursuant to Section 23) in whole or in part by the Agent for the ratable
benefit of the Secured Parties against, all or any part of the Secured Obligations, in the order described in Section 5.6 of the Loan Agreement. 
 (c) All payments received by any Grantor in respect of the Collateral shall be received in trust for the benefit of the Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to
the Agent in the same form as so received (with any necessary indorsement). 
 (d) The Agent may, without notice to any
Grantor except as required by law and at any time or from time to time, charge, set off and otherwise apply all or any part of the Secured Obligations against any funds held with respect to the Account Collateral or in any other deposit account.

 (e) In the event of any sale or other disposition of any of the Intellectual Property Collateral of any Grantor, the
goodwill symbolized by any Trademarks subject to such sale or other disposition shall be included therein, and such Grantor shall supply to the Agent or its designee such Grantor’s know-how and expertise, and documents and things relating to
any Intellectual Property Collateral subject to such sale or other disposition, and such Grantor’s customer lists and other records and documents relating to such Intellectual Property Collateral and to the manufacture, distribution,
advertising and sale of products and services of such Grantor. 
 (f) During the continuance of an Event of Default, for the
purpose of enabling the Agent to exercise rights and remedies under this Section 22 and solely at such time as the Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants, subject to the terms and
conditions of any applicable IP Agreements, to the Agent an irrevocable (during the continuance of such Event of Default), non-exclusive license (exercisable without payment of royalty or other compensation to such Grantor) to use, license or
sublicense any of the Intellectual Property Collateral now owned or hereafter developed, created, or acquired by such Grantor, wherever the same may be located; provided that in connection with any such license or sublicense of any Trademark,
the Agent shall ensure that any goods or services sold under such Trademark by any such licensee or sublicense will be of comparable quality to the goods and services of the applicable Grantor sold under such Trademark immediately prior to such
Event of Default. The foregoing license includes reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout thereof. The 

  

 25 

 
foregoing license shall be subject to any reasonable quality standards and quality control practices in effect by each applicable Grantor and communicated to
the Agent via e-mail or otherwise in writing by such Grantor, with respect to its Trademarks, immediately prior to such Event of Default, and the Agent shall retain the confidentiality of any confidential information, including any trade secrets,
included in the Intellectual Property Collateral licensed under this Section 22(g), consistent with the practices in effect by each applicable Grantor as communicated to the Agent by such Grantor, with respect to its confidential information,
immediately prior to such Event of Default. 
 Section 23. Indemnity and Expenses. (a) Each Grantor agrees to indemnify, defend
and save and hold harmless each Secured Party and each of their Affiliates and their respective officers, directors, employees, agents and attorneys-in-fact (each, an “Indemnified Party”) from and against, and shall pay on
demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of
or in connection with or resulting from this Agreement (including, without limitation, enforcement of this Agreement), except to the extent such claim, damage, loss, liability or expense is found in a final, non-appealable judgment by a court of
competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct. 
 (b) Each Grantor will
within 30 days of demand pay to the Agent the amount of any and all reasonable documented out-of-pocket expenses, including, without limitation, the reasonable documented fees and expenses of counsel and of any experts and agents, that the Agent may
incur in connection with (i) the administration of this Agreement, (ii) the custody, preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral of such Grantor, (iii) the
exercise or enforcement of any of the rights of the Agent or the other Secured Parties hereunder or (iv) the failure by such Grantor to perform or observe any of the provisions hereof. 
 Section 24. Amendments; Waivers; Additional Grantors; Etc. (a) No amendment or waiver of any provision of this Agreement, and no consent to any
departure by any Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which
given. No failure on the part of the Agent or any other Secured Party to exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. 
 (b) Upon the execution and delivery by any Person of a security agreement
supplement in substantially the form of Exhibit C hereto (each a “Security Agreement Supplement”), such Person shall be referred to as an “Additional Grantor” and shall be and become a Grantor
hereunder, and each reference in this Agreement and the other Loan Documents to “Grantor” shall also mean and be a reference to such Additional Grantor, each reference in this Agreement and the other Loan Documents to the
“Collateral” shall also mean and be a reference to the Collateral granted by such Additional Grantor and each reference in this Agreement to a Schedule shall also mean and be a reference to the schedules attached to such Security Agreement
Supplement. 
  

 26 

 Section 25. Notices, Etc. All notices and other communications provided for hereunder shall be
made in accordance with Section 15.3 of the Loan Agreement. Delivery by telecopier or electronic mail of an executed counterpart of any amendment or waiver of any provision of this Agreement or of any Security Agreement Supplement or Schedule
hereto shall be effective as delivery of an original executed counterpart thereof. 
 Section 26. Continuing Security Interest;
Assignments under the Loan Agreement. This Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the Discharge, (b) be binding upon each Grantor, its successors and
assigns and (c) inure, together with the rights and remedies of the Agent hereunder, to the benefit of the Secured Parties and their respective successors, transferees and assigns. Without limiting the generality of the foregoing clause (c),
any Lender may assign or otherwise transfer all or any portion of its rights and obligations under the Loan Agreement (including, without limitation, all or any portion of its Commitment, the Loans owing to it and the Note or Notes, if any, held by
it) to any other Person in accordance with Section 13.3 of the Loan Agreement, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Lender herein or otherwise, in each case as provided in
Section 13.3 of the Loan Agreement. 
 Section 27. Release; Termination. (a) Upon any sale, lease, transfer or other
disposition of any item of Collateral of any Grantor in accordance with Section 10.2.6 of the Loan Agreement, the security interest created hereunder on such item of Collateral shall be automatically released. 
 (b) Upon any sale, lease, transfer or other disposition of any item of Collateral of any Grantor in accordance with Section 10.2.6 of the Loan
Agreement (other than Permitted Ordinary Accounts/Inventory Disposition), Agent will, at Borrowers’ expense and in accordance with the Intercreditor Agreement, execute and deliver to Borrower Agent such documents as such Borrower Agent shall
reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted hereunder; provided that, unless otherwise waived by Agent, (i) at the time of such request and such release no Event
of Default shall have occurred and be continuing and (ii) Borrower Agent shall have delivered to Agent, at least ten Business Days prior to the date of the proposed release, a written request for release describing the item of Collateral and
the terms of the sale, lease, transfer or other disposition in reasonable detail, including, without limitation, the price thereof, together with a form of release for execution by the Agent and a certificate of Borrower Agent to the effect that the
transaction is in compliance with the Loan Documents and as to such other matters as the Agent may request. In addition, if the Equity Interests of a Guarantor are sold, transferred or otherwise disposed of to a Person that is not an Affiliate
pursuant to a transaction permitted by Section 10.2.6 of the Loan Agreement that results in such Guarantor ceasing to be a Restricted Subsidiary or if a Guarantor is designated as an Unrestricted Subsidiary in accordance with the terms of the
Loan Agreement, or upon the effectiveness of any written consent pursuant to Section 15.1.1 of the Loan Agreement to the release of the Guaranty granted by such Guarantor, such Guarantor shall be automatically released from its Obligations
under the Loan Agreement without further action and all Liens on the Property of such Guarantor granted under the Loan Documents shall be 

  

 27 

 
automatically released. In connection with such release, Agent shall promptly execute and deliver to such Guarantor, at such Guarantor’s expense, all
documents that such Guarantor shall reasonably request to evidence such termination or release of such Guaranty or Liens. Any execution and delivery of documents pursuant to this Section 27 shall be without recourse to or warranty by Agent.

 (c) Upon the Discharge, the security interest granted hereby shall automatically terminate and all rights to the Collateral shall revert
to the applicable Grantor. Upon any such termination, the Agent will, at the applicable Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination. 
 Section 28. Execution in Counterparts. This 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. Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement. 
 Section 29. Governing Law. This Agreement and the other loan documents, unless otherwise specified,
shall be governed by the laws of the state of New York, without giving effect to any conflict of law principles (but giving effect to section 5-1401 of the New York General Obligation Law and Federal Laws relating to national banks). 
 Section 30. Loan Agreement. In the event of any conflict or inconsistency between the provisions of this Agreement (except for Section 1
hereof) and the Loan Agreement, the provisions of the Loan Agreement shall control. 
 Section 31. Intercreditor Agreement.
Reference is made to the Lien Subordination and Intercreditor Agreement, dated as of July 2, 2009, among Bank of America, N.A., as agent for the ABL Secured Parties referred to therein; U.S. Bank National Association, as Noteholder
Collateral Trustee; Solo Cup Company; Solo Cup Operating Company; and the other subsidiaries of Solo Cup Company named therein (the “Intercreditor Agreement”). Each Person that is secured hereunder, by accepting the
benefits of the security provided hereby, (i) consents (or is deemed to consent), to the subordination of Liens provided for in the Intercreditor Agreement, (ii) agrees (or is deemed to agree) that it will be bound by, and will take no
actions contrary to, the provisions of the Intercreditor Agreement, (iii) authorizes (or is deemed to authorize) the ABL Agent on behalf of such Person to enter into, and perform under, the Intercreditor Agreement and (iv) acknowledges (or
is deemed to acknowledge) that a copy of the Intercreditor Agreement was delivered, or made available, to such Person. 
 Notwithstanding any other provision contained herein, this Agreement, the Liens created hereby and the rights, remedies, duties and obligations provided for herein are subject in all respects to the provisions of the Intercreditor
Agreement and, to the extent provided therein, the applicable Security Documents (as defined in the Intercreditor Agreement). In the event of any conflict or inconsistency between the provisions of this Agreement and the Intercreditor Agreement, the
provisions of the Intercreditor Agreement shall control. 
  

 28 

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

			
	SOLO CUP OPERATING CORPORATION
		
	By	 	/s/ Robert D. Koney, Jr.
	Name:	 	Robert D. Koney, Jr.
	Title:	 	Chief Financial Officer

  

									
	Address for Notices:	 		 	SOLO CUP COMPANY
	 1700 Old Deerfield Road
	 		 	
	 Highland Park, IL 60035
	 		 	
				
		 		 	By	 	/s/ Robert M. Korzenski
		 		 		 	Name:	 	Robert M. Korzenski
		 		 		 	Title:	 	President and CEO
			
	Address for Notices:	 		 	SF HOLDINGS GROUP, INC.
	 1700 Old Deerfield Road
	 		 	
	 Highland Park, IL 60035
	 		 	
				
		 		 	By	 	/s/ Richard Hernke
		 		 		 	Name:	 	Richard Hernke
		 		 		 	Title:	 	Treasurer
			
	Address for Notices:	 		 	SOLO MANUFACTURING LLC
	 1700 Old Deerfield Road
	 		 	
	 Highland Park, IL 60035
	 		 	
				
		 		 	By	 	/s/ Richard Hernke
		 		 		 	Name:	 	Richard Hernke
		 		 		 	Title:	 	Treasurer
				
		 	Address for Notices:	 		 	P.R. SOLO CUP, INC.
		 	 1700 Old Deerfield Road
	 		 		 	
		 	 Highland Park, IL 60035
	 		 		 	
		 		 		 	By	 	 /s/ Jan Stern Reed

		 		 		 	Name:	 	Jan Stern Reed
		 		 		 	Title:	 	Vice President and Secretary
				
		 	Address for Notices:	 		 	LILY-CANADA HOLDING CORPORATION
		 	 1700 Old Deerfield Road
	 		 		 	
		 	 Highland Park, IL 60035
	 		 		 	
		 		 		 	By	 	 /s/ Jan Stern Reed

		 		 		 	Name:	 	Jan Stern Reed
		 		 		 	Title:	 	Vice President and Secretary

 Solo Cup Security Agreement 

									
				
		 	Address for Notices:	 		 	SOLO CUP OWINGS MILLS HOLDINGS
		 	 1700 Old Deerfield Road
	 		 	By:	 	Solo Cup Operating Corporation, a Delaware corporation, as sole beneficial owner
		 	 Highland Park, IL 60035
	 		 		 	
		 		 		 	By:	 	  
 /s/ Jan Stern Reed

		 		 		 	Name:	 	Jan Stern Reed
		 		 		 	Title:	 	EVP – HR, General Counsel & Secretary

 Solo Cup Security AgreementABL Debenture

 Exhibit 10.39 
 EXECUTION VERSION 
 Dated 2 JULY 2009 
 SOLO CUP (UK) LIMITED, 
 INSULPAK
HOLDINGS LIMITED 
 AND 
 SOLO CUP EUROPE LIMITED 
 as the Chargors 
 - and - 
 BANK OF AMERICA, N.A. 
 as ABL Agent 
  
  
 ABL DEBENTURE 

 
  
 Notwithstanding any other provision of this Deed, the Security constituted by this Deed and the exercise of 
 any right or remedy by the ABL Agent hereunder shall be subject to the Intercreditor Agreement (as defined 
 herein). In the event of any conflict between the terms of the Intercreditor Agreement and the terms of this 
 Deed (to the extent permitted by law) the terms of the Intercreditor Agreement shall prevail. 
 

 
  

 CONTENTS 
  

			
	 Clause
	  	Page
		
	 1.      DEFINITIONS AND INTERPRETATION
	  	1
		
	 2.      COVENANT TO PAY
	  	5
		
	 3.      SECURITY
	  	5
		
	 4.      REAL PROPERTY OBLIGATIONS
	  	8
		
	 5.      OTHER OBLIGATIONS
	  	9
		
	 6.      ENFORCEMENT
	  	12
		
	 7.      APPOINTMENT AND RIGHTS OF RECEIVERS AND ADMINISTRATORS
	  	13
		
	 8.      DISTRIBUTION
	  	16
		
	 9.      SECURITY TRUST
	  	16
		
	 10.    AGENT’S RIGHTS
	  	20
		
	 11.    RESPONSIBILITIES OF AGENT, RECEIVERS AND DELEGATES
	  	21
		
	 12.    FURTHER ASSURANCE
	  	22
		
	 13.    POWER OF ATTORNEY
	  	22
		
	 14.    PROTECTION OF THIRD PARTIES
	  	22
		
	 15.    EXPENSES, STAMP DUTY AND INDEMNITIES
	  	23
		
	 16.    PAYMENTS
	  	24
		
	 17.    EFFECTIVENESS OF SECURITY
	  	24
		
	 18.    SET-OFF
	  	27
		
	 19.    COMMUNICATIONS
	  	27
		
	 20.    THIRD PARTIES
	  	28
		
	 21.    COUNTERPARTS
	  	28
		
	 22.    ASSIGNMENT AND TRANSFER
	  	28
		
	 23.    GOVERNING LAW AND SUBMISSION TO JURISDICTION
	  	28
		
	 SCHEDULE 1 The Chargors
	  	29
		
	 SCHEDULE 2 Details of the Scheduled Real Property
	  	30
		
	 SCHEDULE 3 Details of the Scheduled Intellectual Property
	  	31
		
	 SCHEDULE 4 Details of the Scheduled Bank Accounts
	  	32
		
	 SCHEDULE 5 Notices for Bank Accounts
	  	33

  

 i 

			
		
	 SCHEDULE 6 Form of Notice of Charge to Insurers
	  	36
		
	 SCHEDULE 7 General Undertakings
	  	39
		
	 SCHEDULE 8 Representations and Warranties
	  	40
		
	 SIGNATORIES
	  	41

  

 ii 

 THIS DEED is dated 2 July 2009 
 BETWEEN: 
  

	(1)	The COMPANIES detailed in Schedule 1 (The Chargors) as the chargors; and 

  

	(2)	BANK OF AMERICA, N.A. as agent (in such capacity, together with any successor agent appointed in accordance with the provisions of the Loan Agreement (as defined below) and
this Deed) (the “ABL Agent”) for the Secured Parties. 

 IT IS AGREED as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	Definitions: In this Deed: 

 “Account
Bank” means any bank or financial institution with which a Chargor maintains a Bank Account; 
 “Administrator”
means an administrator appointed under Schedule B1 of the Insolvency Act 1986; 
 “Bank Account” means any account with any
bank or financial institution in which any Chargor now or in the future has an interest (including the Scheduled Bank Accounts) including any replacement or substitute account or subdivision or sub-account of that account and to the extent of such
interest, all credit balances now or in the future on such accounts and all Related Rights; 
 “Bank Products” has the
meaning given to that term in the Loan Agreement; 
 “Charged Assets” means the assets and undertakings from time to time
which are the subject of any Security created or purported to be created by or pursuant to this Deed and, where the context permits, the proceeds of sale of such assets; 
 “Charged Investments” means Investments forming part of the Charged Assets; 
 “Charged Real Property” means all Real Property forming part of the Charged Assets and any buildings, fixtures, fittings, fixed plant or machinery from time to time situated on or forming part of such Real Property and all
Related Rights. For the avoidance of doubt, the Charged Real Property shall not constitute “Mortgaged Property” under and as defined in the Loan Agreement; 
 “Charges” means any Security from time to time created or expressed to be created by or pursuant to this Deed; 
 “Chargors” means the companies detailed in Schedule 1 (The Chargors); 
 “Collection Account(s)” means any Bank Account that may from time to time be specified in writing by the ABL Agent as an account into which the amount of the Monetary Claims are to be paid pursuant to Clause 5.2(b)
(Release of Monetary Claims); 
 “Delegate” means a delegate, sub-delegate, attorney or trustee appointed, directly or
indirectly, pursuant to Clause 10.3 (Delegation); 
 “Derivative Rights” include: 
  

	 	(a)	all rights relating to Investments which are deposited with or registered in the name of any agent, depositary, custodian, nominee, fiduciary, investment manager or clearing system
or other similar person or its nominee, in each case whether or not on a fungible basis (including rights against such person); and 

  

 1 

	 	(b)	all other rights or cash or other assets attaching or relating to or accruing or offered on or deriving now or subsequently from Investments or from such rights (whether by way of
redemption, conversion, exercise of option rights, substitution, exchange, preference, bonus or otherwise); 

 “Excluded
Assets” has the meaning given to that term in the Intercreditor Agreement; 
 “Fixtures” means trade and other
fixtures and fittings and fixed plant, machinery and other apparatus; 
 “Insurance Policy” means any contract or policy of
insurance (including life insurance or assurance) in which any Chargor may from time to time have an interest as beneficiary under its terms; 
 “Intellectual Property” means all patents, trademarks, service marks, brand and business names, copyrights (including any rights in computer software), design rights, registered designs, moral rights, inventions (including
any software), topography and similar rights, database rights, domain name rights, confidential information, know-how and all other intellectual property rights and interests (whether or not registered) (including, without limitation, all Scheduled
Intellectual Property) and the benefit of all applications and rights to use such assets and all Related Rights; 
 “Intercreditor
Agreement” means the lien subordination and intercreditor agreement dated on or about the date of this Deed between, inter alios, Bank of America, N.A., as ABL Agent for the ABL Secured Parties referred to therein; U.S. Bank National
Association as Trustee and as Noteholder Collateral Trustee, Solo, Solo Cup Operating Corporation and the other subsidiaries of Solo named therein (as amended, amended and restated, supplemented or otherwise modified from time to time); 

“Inventory” means all inventory in all its forms; 
 “Investments” means: 
  

	 	(a)	any shares, stocks, debentures, certificates of deposit, securities, bonds or other securities; 

  

	 	(b)	all interests in collective investment schemes; and 

  

	 	(c)	all warrants, options and other rights to subscribe or acquire any investment referred to in paragraph (a) or (b), 

 in each case whether held directly by the Chargor or by any collateral agent, finance party, depositary, custodian, nominee, fiduciary, investment manager
or clearing system on its behalf and all Related Rights (including all rights against such person) and all Derivative Rights but excluding any securities referred to in paragraph (h) of the definition of Excluded Assets in the Intercreditor
Agreement; 
 “Issuing Bank” has the meaning given to that term in the Loan Agreement; 
 “Lenders” has the meaning given to that term in the Loan Agreement; 
 “Loan Agreement” means the loan agreement dated on or about the date of this Deed between, inter alios, Solo Cup Operating
Corporation, Solo, the ABL Agent, the other agents named therein, the other Borrowers and the Lenders (each as defined therein) (as amended, amended and restated, supplemented or otherwise modified from time to time); 
 “Loan Documents” has the meaning given to that term in the Loan Agreement; 
 “LPA” means the Law of Property Act 1925; 
 “Monetary Claims” means any book and other debts and monetary claims owing to any Chargor and any proceeds of such debts and claims (including any claims or sums of money deriving from or in relation
to any Intellectual Property, any Investment, any claim, return of premium or the proceeds paid or payable in respect of any Insurance Policy, any court order or judgment, any contract or agreement to which any Chargor is a party and any other
assets, property, rights or undertaking of any Chargor, but excluding the Bank Accounts); 
  

 2 

 “Noteholder Collateral Trustee” means U.S. Bank, National Association, acting in its
capacity as collateral trustee for the Priority Lien Secured Parties and the Subordinated Lien Secured Parties; 
 “Notes
Debenture” means the debenture dated on or about the date of this Deed entered into by the Chargors in favour of the Noteholder Collateral Trustee; 
 “Notice of Charge to Insurers” means a notice of charge in the form set out in Schedule 6 (Form of Notice of Charge to Insurers) or such other form as the ABL Agent may approve, acting
reasonably; 
 “Obligations” has the meaning given to that term in the Loan Agreement; 
 “Obligor” has the meaning given to that term in the Loan Agreement; 
 “Personal Chattels” means plant, machinery, office equipment, computers, goods and other chattels (including all spare parts,
replacements, modifications and additions) but not Fixtures on Real Property charged under Clause 3.2(a) (Real Property) or stock in trade or work in progress and all Related Rights and excluding any personal chattels referred to in paragraph
(e) of the definition of Excluded Assets in the Intercreditor Agreement; 
 “Real Property” means freehold property
situated in England and Wales (including, without limitation, the Scheduled Real Property) and such interests appurtenant thereto and any buildings, fixtures, fittings, fixed plant or machinery from time to time situated on or forming part of such
property, and includes all Related Rights but excluding any such property referred to in paragraphs (a) and (b) of the definition of Excluded Assets in the Intercreditor Agreement; 
 “Receiver” means a receiver, receiver and manager or, where permitted by law, administrative receiver appointed in respect of the Charged
Assets by the ABL Agent pursuant to this Deed or otherwise; 
 “Related Rights” means, in relation to any asset: 

 

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

  

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

  

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

  

	 	(d)	any moneys and proceeds paid or payable in respect of that asset; 

 “Release Date” has the meaning ascribed thereto in Clause 17.11 (Final Redemption); 
 “Scheduled
Bank Accounts” means the Bank Accounts described in Schedule 4 (Details of the Scheduled Bank Accounts); 
 “Scheduled
Intellectual Property” means the Intellectual Property described in Schedule 3 (Details of the Scheduled Intellectual Property); 
 “Scheduled Real Property” means the Real Property described in Schedule 2 (Details of the Scheduled Real Property) and all Related Rights; 
 “Secured Obligations” means all Obligations of each Chargor now or hereafter existing under or in connection with the Loan Documents and the Bank Products (or any of them) to the ABL Agent and/or the
Secured Parties and/or any Receiver (including, without limitation, under any amendments, supplements or restatements of any of the Loan Documents or in 

  

 3 

 
relation to any new or increased advances or utilisations thereunder or any extension of any date for payment or repayment thereunder), and whether such
indebtedness or liabilities were originally owed to all or any of the Secured Parties and/or any Receiver or any other person or persons and whether actual or contingent, matured or not matured, liquidated or unliquidated, whether incurred solely or
jointly and/or severally and whether as principal or surety or in any other capacity whatsoever, in any currency or currencies, including all interest accruing thereon (calculated in accordance with Clause 2.2 (Interest)), after as well as
before judgment, and all costs, charges and expenses (to the extent payable by the relevant Obligor pursuant to the terms of the Loan Documents) incurred in connection therewith (each such Obligation being a “Secured Obligation”);

 “Secured Parties” means the ABL Agent, the Issuing Bank, the Lenders, the providers of Bank Products and any other persons
who are “ABL Secured Parties” (as defined in the Intercreditor Agreement); 
 “Security” means, with respect to any
asset, any mortgage, lien, pledge, charge, security interest, trust arrangement or encumbrance of any kind in respect of such asset whether or not filed, registered or otherwise perfected under applicable law or any agreement or arrangement having a
similar effect (including any conditional sale or other type of retention agreement, any lease in the nature thereof or any option or other agreement to sell or give a security interest therein), in each case for the purpose of securing any
obligation of any person; 
 “Solo” means Solo Cup Company, a Delaware corporation; 
 “Specified Default” means an Event of Default as defined in the Loan Agreement; and 
 “this Deed” means this debenture as varied, amended or supplemented from time to time. 
  

	1.2	Intercreditor Agreement: Terms defined in the Intercreditor Agreement and not otherwise defined in this Deed shall have the same meaning in this Deed or any notice given in
relation to this Deed as are given to such terms in the Intercreditor Agreement. 

  

	1.3	Construction: 

  

	 	(a)	The provisions of Section 1.04 (Certain Matters of Construction) of the Loan Agreement shall apply to this Deed with all necessary modifications as if they were
expressly set out in full in this Deed. 

  

	 	(b)	Any reference to “assets” includes present and future property, revenues and rights of every kind. 

  

	 	(c)	“rights” shall be construed as including rights, benefits, privileges, consents, authorities, discretions, remedies and powers and “right” shall be
construed accordingly. 

  

	 	(d)	A reference to “Secured Obligations” includes any liabilities which would be treated as such but for the liquidation or dissolution or similar event affecting an
Obligor. 

  

	 	(e)	Any reference to the ABL Agent, a Chargor, the Secured Parties or the Noteholder Collateral Trustee shall be construed so as to include its or their (and any subsequent) successors
and any permitted transferees in accordance with their respective interests. 

  

	 	(f)	References in this Deed to any Clause or Schedule shall be to a clause or schedule of this Deed unless otherwise specified. 

  

	 	(g)	For the avoidance of doubt, save as provided in Clause 6.3 (Effect of Moratorium) below, references in this Deed to the Charges becoming “enforceable” shall
be construed as references to when the ABL Agent (for the benefit of itself and the other Secured Parties) is entitled to enforce those Charges, being only upon the occurrence and during the continuation of a Specified Default.

  

 4 

	1.4	Law of Property (Miscellaneous Provisions) Act 1989: The terms of the documents under which the Secured Obligations arise and of any side letters relating thereto between
each Chargor and any of the Secured Parties are incorporated herein to the extent required for any purported disposition of the Charged Assets contained in this Deed to be a valid disposition in accordance with section 2(1) of the Law of Property
(Miscellaneous Provisions) Act 1989. 

  

	1.5	Deed: This document is to take effect as a deed notwithstanding that the ABL Agent has executed it under hand only. 

  

	1.6	Law of Property (Miscellaneous Provisions) Act 1994: The obligations of the Chargors under this Deed and any document entered into pursuant to this Deed shall be in addition
to the covenants deemed to be included in this Deed or such other document by virtue of Part I of the Law of Property (Miscellaneous Provisions) Act 1994. 

  

	1.7	Schedules: Any failure to state any Intellectual Property, Bank Accounts or Real Property of any Chargor on the date of this Deed in any of Schedule 2 (Details of the
Scheduled Real Property), Schedule 3 (Details of the Scheduled Intellectual Property), or Schedule 4 (Details of the Scheduled Bank Accounts) will not affect any Charges over such assets. 

  

	1.8	Covenants and Representations: 

  

	 	(a)	Each covenant of a Chargor contained in this Deed remains in force until the Release Date. 

  

	 	(b)	The representations and warranties set out in this Deed are made on the date of this Deed and are, unless otherwise stated herein, deemed to be repeated by a Chargor on each day on
which representations are deemed to be repeated by the Borrowers (as defined in the Loan Agreement) pursuant to the Loan Agreement from the date of this Deed until the Release Date with reference to the circumstances existing at the time of
repetition. 

  

	1.9	Intercreditor Agreement to Prevail: Notwithstanding any other provision of this Deed, the Security constituted by this Deed and the exercise of any right or remedy by the ABL
Agent hereunder shall be subject to the Intercreditor Agreement. In the event of any conflict between the terms of the Intercreditor Agreement and the terms of this Deed (to the extent permitted by law) the terms of the Intercreditor Agreement shall
prevail. 

  

	2.	COVENANT TO PAY 

  

	2.1	Covenant to Pay: Each Chargor shall on demand pay or discharge the Secured Obligations when the same have become due in the manner provided for in the Loan Documents.

  

	2.2	Interest: If a Chargor fails to pay any Secured Obligations on the due date for payment of that sum, such Chargor shall on demand pay to the ABL Agent interest on all such
sums from the due date until the date of payment (both before and after judgment) calculated and payable in accordance with the rate and in the manner specified in the Loan Agreement. Any such interest not paid when due shall be compounded and bear
interest calculated as provided above. 

  

	3.	SECURITY 

  

	3.1	Creation of Charges: All Charges under this Deed are: 

  

	 	(a)	made in favour of the ABL Agent (for the benefit of itself and the other Secured Parties); 

  

	 	(b)	made with full title guarantee; and 

  

 5 

	 	(c)	Security for the payment and discharge of all Secured Obligations. 

  

	3.2	Fixed Charges: Each Chargor charges: 

  

	 	(a)	Real Property: by way of fixed charge the Scheduled Real Property and all other Real Property in England or Wales now or subsequently belonging to it;

  

	 	(b)	Investments: by way of fixed charge all its rights, title and interest in the Investments now or subsequently belonging to it; 

  

	 	(c)	Monetary Claims and Related Rights: by way of fixed charge all its rights, title and interest now or subsequently in all Monetary Claims and all Related Rights except to the
extent that such assets are for the time being effectively charged pursuant to paragraph (e) below; 

  

	 	(d)	Intellectual Property: by way of fixed charge all its rights, title and interest now or subsequently in Intellectual Property including, without limitation, the Scheduled
Intellectual Property; 

  

	 	(e)	Bank Accounts: by way of fixed charge all its rights, title and interest now or subsequently in the Bank Accounts (including the Scheduled Bank Accounts);

  

	 	(f)	Insurance Policies: by way of fixed charge all its rights, title and interest now or subsequently in the Insurance Policies and all Related Rights; 

 

	 	(g)	Personal Chattels: by way of fixed charge all its rights, title and interest now or subsequently in the Personal Chattels; 

  

	 	(h)	Inventory: by way of fixed charge all its rights, title and interest now or subsequently in Inventory; 

  

	 	(i)	Goodwill and uncalled capital: by way of fixed charge all its rights, title and interest now or subsequently in: 

  

	 	(i)	all its uncalled capital; and 

  

	 	(ii)	all its goodwill. 

  

	3.3	Ranking: 

 Notwithstanding any other provision
contained in this Deed, the parties agree that the Charges granted by the Chargors under this Deed are granted in accordance with the ranking and subordination provisions contained in the Intercreditor Agreement. 
  

	3.4	Floating Charge: 

  

	 	(a)	Each Chargor charges by way of floating charge its undertaking and all its assets both present and future other than any asset in England and Wales effectively charged under Clause
3.2 (Fixed Charges) including any assets comprised within a Charge which is reconverted under Clause 3.8 (Reconversion). The floating charge created by each Chargor under this Clause shall be a qualifying floating charge for the
purposes of paragraph 14 of Schedule B1 of the Insolvency Act 1986. 

  

	 	(b)	The floating charges created by this Clause 3.4 (Floating Charge) shall be deferred in point of priority to all fixed Security validly and effectively created by a Chargor
under the Loan Documents in favour of the ABL Agent as Security for the Secured Obligations. 

  

 6 

	3.5	Automatic Crystallisation: 

  

	 	(a)	Notwithstanding any other provision of this Deed (and without prejudice to any law which may have a similar effect), the floating charge created under this Deed will automatically
be converted with immediate effect and without notice into a fixed charge as regards the Charged Assets subject to such floating charge but subject to Clause 3.7 (Moratorium): 

  

	 	(i)	if any person presents or makes an application for a writ of execution, writ of fieri facias, garnishee order or charging order or otherwise levies or attempts to levy any
distress, execution, attachment, expropriation, sequestration or other legal process against any of the Charged Assets charged by way of the floating charge or any Chargor creates or attempts to create any Security or trust over any of the Charged
Assets secured by the floating charge created by Clause 3.4 (Floating Charge) other than as permitted or not restricted under the Loan Documents; or 

  

	 	(ii)	a resolution is passed or an order is made or a petition is presented for the winding-up or administration, dissolution or reorganisation in relation to any Chargor (except as
expressly permitted or not restricted under the Loan Agreement) which (in the case of a winding-up petition) is not discharged within 14 days or in any event before such petition is heard or a resolution is passed for a creditors’ voluntary
winding-up or a creditors’ voluntary winding-up is commenced; or 

  

	 	(iii)	an Administrator or Receiver is appointed in respect of any Chargor or the ABL Agent receives notice of an intention to appoint an Administrator pursuant to paragraph 15 or 26 of
Schedule B1 of the Insolvency Act 1986 in respect of any Chargor. 

  

	 	(b)	Notwithstanding Clause 3.6 (Crystallisation of Floating Charge by notice) and without prejudice to any law which may have a similar effect, the floating charge created by
Clause 3.4 (Floating Charge) will be automatically converted (without notice) with immediate effect into a fixed charge as regards all the assets subject to that floating charge at the same time as the floating charge created by the Notes
Debenture over such assets is crystallised. 

  

	3.6	Crystallisation of Floating Charge by notice: 

 The
ABL Agent may at any time by notice in writing to any Chargor convert the floating charge created by such Chargor pursuant to Clause 3.4 (Floating Charge) with immediate effect into a fixed charge as regards such assets as may be specified
(whether generally or specifically) in such notice if: 
  

	 	(a)	a Specified Default has occurred and is continuing; or 

  

	 	(b)	the ABL Agent reasonably considers those assets to be in jeopardy (whether due to a risk of being seized or sold pursuant to any distress, attachment, execution, sequestration or
other legal process); or 

  

	 	(c)	the ABL Agent reasonably considers that it is necessary in order to protect the priority of the Charges; or 

  

	 	(d)	if the floating charge over such property or assets created by the Notes Debenture has been crystallised. 

  

	3.7	Moratorium: No floating charge created by this Deed may be converted into a fixed charge on assets for which a moratorium is in force if and for so long as such conversion
would breach paragraph 13 of Schedule A1 of the Insolvency Act 1986. 

  

	3.8	Reconversion: Any charge which has converted into a fixed charge under Clause 3.5 (Automatic Crystallisation) or Clause 3.6 (Crystallisation of Floating Charge by
notice) may be reconverted into a floating charge by notice in writing given at any time by the ABL Agent to the Chargor concerned in relation to the assets specified in such notice. 

  

 7 

	3.9	Fixed and Floating Security: If for any reason any Security in respect of any asset created or purported to be created pursuant to this Clause 3 as a fixed charge does not,
or ceases to, take effect as a fixed charge, then it shall take effect as a floating charge in respect of such asset. However, it is the intent of the parties that the Security over other Charged Assets shall remain unaffected.

  

	3.10	Excluded Assets: If the rights of any Chargor under any instrument or agreement cannot be the subject of any Charges which this Deed purports to create under Clause 3.2(c)
(Monetary Claims and Related Rights), 3.2(d) (Intellectual Property) or 3.2(f) (Personal Chattels) without the consent of another party: 

  

	 	(a)	this Deed will charge all amounts which the relevant Chargor may receive, or has received, under that instrument or agreement; and 

  

	 	(b)	if the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior ranking security interest in relation to the relevant Charge, the Noteholder Collateral Trustee)
so requires following the occurrence and during the continuation of a Specified Default, the relevant Chargor will use all reasonable endeavours to promptly obtain the consent of the relevant third party for such rights to be charged under this Deed
and, if such consent is obtained, such rights shall immediately become subject to an effective fixed charge pursuant to Clause 3.2 (Fixed Charges) and the Chargor shall promptly provide a copy of such consent to the ABL Agent (or, if the
Noteholder Collateral Trustee has been granted a prior ranking security interest in relation to the relevant Charge, the Noteholder Collateral Trustee). 

  

	3.11	Security Trust: The ABL Agent holds the benefit of this Deed on trust for the Secured Parties on the terms of this Deed and the other Loan Documents.

  

	3.12	Perpetuity Period: The perpetuity period under the rules against perpetuities, if applicable to this Deed, shall be the period of 80 years from the date of this Deed.

  

	4.	REAL PROPERTY OBLIGATIONS 

  

	4.1	Acquisition of Real Property: 

  

	 	(a)	Each Chargor shall promptly notify the ABL Agent of any acquisition by it or on its behalf of any Real Property after the date of this Deed (“After-acquired
Property”). 

  

	 	(b)	If title to the relevant After-acquired Property is or is to be registered at the Land Registry, such Chargor shall, as soon as reasonably practicable: 

  

	 	(i)	notify the ABL Agent of the relevant title number; and 

  

	 	(ii)	make the relevant Land Registry enter: 

  

	 	(A)	a notice of the charge on the charges register of such property; and 

  

	 	(B)	the restriction set out in Clause 4.3(a) (Registered Land) on the proprietorship register of such property. 

 In the case of any other After-acquired Property in England or Wales, the relevant Chargor shall apply to register this Deed at the Land Charges Registry
if, for any reason, the title deeds and documents relating thereto are not deposited with the ABL Agent. 
  

	4.2	 Delivery of Title Documents: Each Chargor shall, as soon as reasonably practicable following the execution of this Deed or, if later, upon receipt, deposit
with the ABL Agent all deeds, certificates and 

  

 8 

	 	 
other documents evidencing title relating to any Real Property subject to Security created in this Deed unless the same are required to be delivered (and are
so delivered) to the Noteholder Collateral Trustee for the benefit of the Priority Lien Secured Parties and the Subordinated Lien Secured Parties pursuant to the Priority Liens and the Subordinated Liens for so long as such Priority Liens and
Subordinated Liens rank prior to the Charges created pursuant to Clause 4.1(a) (Real Property) under the terms of the Intercreditor Agreement. If any such documents are at the relevant time at the Land Registry, such Chargor shall, promptly
following a demand by the ABL Agent provide or procure the provision to the ABL Agent of such undertakings and such letters addressed to the Land Registry as the ABL Agent may reasonably specify. 

  

	4.3	Registered Land: 

  

	 	(a)	Each Chargor consents to an application being made to the Land Registry for a restriction in the following terms to be entered on the Proprietorship Register of such of the Charged
Real Property as is now or hereafter registered at the Land Registry under the Land Registration Act 2002: 

 “No
disposition of the registered estate by the proprietor of the registered estate or by the proprietor of any registered charge, not being a charge registered before the entry of this restriction, is to be registered without a written consent signed
by the proprietor for the time being of the Charge dated [•] in favour of [•] referred to in the Charges Register or if appropriate signed on such proprietor’s behalf by its authorised signatory.” 
  

	 	(b)	To the extent that the Secured Parties are under an obligation to make further advances, each Chargor shall also make an application (and consents to an application being made) to
the Land Registry for a note of such obligation to be entered on the Charges Register of any registered land forming part of the Charged Real Property. 

  

	5.	OTHER OBLIGATIONS 

  

	5.1	Negative pledge and disposals: Except with the consent of the ABL Agent, no Chargor shall: 

  

	 	(a)	create or permit to be outstanding any Security over any Charged Assets save as expressly permitted or not restricted pursuant to the Loan Documents; or 

  

	 	(b)	sell, transfer, assign, lease, hire out, grant, lend or otherwise dispose of any of the Charged Assets or the equity of redemption therein or permit any person to do any such thing
except as permitted or not restricted pursuant to the terms of the Loan Documents. 

  

	5.2	Monetary Claims: 

  

	 	(a)	Dealing with Monetary Claims: 

  

	 	(i)	Save as permitted or not restricted by the Loan Documents, no Chargor shall release, sell, transfer, assign, factor, discount or otherwise deal in any way with any of the Monetary
Claims except as contemplated by Clause 5.2(a)(ii) below. 

  

	 	(ii)	Each Chargor shall get in and realise in a prudent manner on behalf of the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security interest in such
Monetary Claims, the Noteholder Collateral Trustee) all its Monetary Claims and pay such moneys into the Bank Accounts, and after the Charges have become enforceable, such Chargor shall hold such moneys on trust for the ABL Agent (or, if the
Noteholder Collateral Trustee has been granted a prior security interest in such moneys, the Noteholder Collateral Trustee) prior to such payment. 

  

 9 

	 	(b)	Release of Monetary Claims: 

  

	 	(i)	Prior to the Charges becoming enforceable, the proceeds of the realisation of the Monetary Claims received by any Chargor shall, upon such proceeds being credited to a Bank Account,
be released from the fixed charge created by Clause 3.2(b) (Monetary Claims and Related Rights) and only be subject to the floating charge created by Clause 3.4 (Floating Charge) and the relevant Chargor may withdraw such proceeds from
such Bank Accounts subject to any applicable restrictions set out in the Loan Agreement and this Deed. 

  

	 	(ii)	After the Charges have become enforceable, each Chargor shall not, except with the consent of the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior
security interest in such Monetary Claims, the Noteholder Collateral Trustee), withdraw or otherwise transfer the proceeds of realisation of any Monetary Claims standing to the credit of any Bank Account and shall pay all moneys received by any
Chargor from any source into such Collection Accounts as are specified by the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security interest in such Monetary Claims, the Noteholder Collateral Trustee) and give notice
to the debtors of any of its Monetary Claims of the Security created by this Deed in such form as the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security interest in such Monetary Claims, the Noteholder Collateral
Trustee) may require. 

  

	5.3	Bank Account(s): 

  

	 	(a)	Bank Accounts: notification, maintenance and variation: 

 Each Chargor shall: 
  

	 	(i)	after the Charges have become enforceable, promptly deliver to the ABL Agent (unless the Noteholder Collateral Trustee has been granted a prior security interest in such Bank
Account and the same is required to be delivered to the Noteholder Collateral Trustee (and is so delivered) pursuant to the terms of the Notes Debenture) a duly completed notice and acknowledgement in respect of each Bank Account in the relevant
form set out in Schedule 5 (as applicable) or in such other form as the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security interest in such Bank Account, the Noteholder Collateral Trustee) may approve, acting
reasonably; 

  

	 	(ii)	use all reasonable endeavours to procure the prompt delivery to the ABL Agent (unless the Noteholder Collateral Trustee has been granted a prior security interest in such Bank
Account and the same is required to be delivered to the Noteholder Collateral Trustee pursuant to the terms of the Notes Debenture) of a duly completed acknowledgement in respect of any notice delivered pursuant to paragraph (i) in the relevant
form set out in Schedule 5 (as applicable) or in such other form as the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security interest in such Bank Account, the Noteholder Collateral Trustee) may approve, acting
reasonably; 

  

	 	(iii)	deliver to the ABL Agent on the date of this Deed (and, if any Bank Account is charged thereafter, on the date falling five Business Days after such charge), details of each Bank
Account maintained by such Chargor (other than with the ABL Agent); and 

  

 10 

	 	(iv)	not without the ABL Agent’s prior written consent, permit or agree to any variation of the rights attached to any Bank Account the result of which is materially prejudicial to
the Secured Parties. 

 The execution of this Deed by a Chargor and the ABL Agent shall constitute notice to the ABL Agent of
the Security created over any Bank Account opened or maintained with the ABL Agent. 
  

	 	(b)	Operation of Bank Accounts: 

  

	 	(i)	Until the Charges become enforceable, the Chargors shall be entitled to receive, withdraw or otherwise transfer any credit balance from time to time on any Bank Account subject to
the terms of the Loan Agreement; 

  

	 	(ii)	After the Charges have become enforceable, the Chargors shall not be entitled to receive, withdraw or otherwise transfer any credit balance from time to time on any Bank Account
except with the prior written consent of the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security interest in such Bank Account, the prior consent of the Noteholder Collateral Trustee). 

  

	 	(c)	Bank Accounts: Application of Moneys: 

 The ABL Agent (or its Receiver) may (subject to the Intercreditor Agreement) apply, transfer or set-off any credit balances from time to time on any Bank Accounts in or towards payment or satisfaction of all or part of the Secured
Obligations in accordance with Clause 8.1 (Application) after the Charges have become enforceable or at any time when the Secured Parties are entitled to exercise the relevant set-off rights under the terms of the Loan Agreement. 

 

	 	(d)	Exercise of rights following enforcement by ABL Agent: 

 After the Charges have become enforceable the ABL Agent shall (subject to the Intercreditor Agreement) be entitled without notice to exercise all rights and powers held by it in relation to the Bank Accounts and to: 
  

	 	(i)	demand and receive any moneys due under or arising out of each Bank Account; 

  

	 	(ii)	exercise all rights the relevant Chargor was then entitled to exercise in relation to the Bank Accounts or would, but for this Deed, be entitled to exercise.

  

	5.4	Intellectual Property: 

 Each Chargor undertakes
that it shall in respect of its Intellectual Property execute all such documents and do all such acts as the ABL Agent may reasonably request (taking into account, among others, the costs and administrative burden of procuring and maintaining such
registrations and filings and the significance and value to the business of the Obligors (as defined in the Loan Agreement) as a whole of such Intellectual Property) to record the interest of the ABL Agent in any registers relating to any such
Intellectual Property which is registrable. 
  

	5.5	Insurance: 

  

	 	(a)	 Each Chargor shall, after the Charges have become enforceable, serve (with a copy to the ABL Agent (unless the Noteholder Collateral Trustee has been granted a
prior security interest in such Insurance Policy and the same is required to be served to the Noteholder Collateral Trustee (and is so served) pursuant to the terms of the Notes Debenture) a Notice of Charge to Insurers to the brokers or
underwriters of each Insurance Policy and each Chargor shall use all its reasonable endeavours to procure the prompt delivery to the ABL Agent (unless the Noteholder Collateral Trustee has been granted 

  

 11 

	 	 
a prior security interest in such Insurance Policy and the same is required to be delivered to the Noteholder Collateral Trustee pursuant to the terms of the
Notes Debenture) of a duly completed acknowledgement in the form set out in Schedule 6 (Form of Notice of Charge to Insurers) or in such other form as the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security
interest in such Insurance Policy, the Noteholder Collateral Trustee) may approve. 

  

	 	(b)	Each Chargor shall keep its Charged Assets insured in accordance with the terms of the Loan Agreement. 

  

	5.6	Fixtures and Personal Chattels: 

 Each Chargor
undertakes that it shall: 
  

	 	(a)	if it has not already done so and if so requested by the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security interest in such Fixture or Personal
Chattel described below, the Noteholder Collateral Trustee) following the occurrence and during the continuation of a Specified Default, in the case of any Fixture or Personal Chattel subject to a fixed charge hereunder located on leasehold
premises, obtain evidence in writing from any lessor of any such premises that it waives absolutely all and any rights it may have now or at any time in the future over any such Fixture or Personal Chattel; and 

  

	 	(b)	if so requested by the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security interest in such Fixture or Personal Chattel described below, the
Noteholder Collateral Trustee) following the occurrence and during the continuation of a Specified Default, place and maintain on each Personal Chattel subject to a fixed charge hereunder in a conspicuous place, an identification marking as appears
below and not conceal, alter or remove such marking or permit it to be concealed, altered or removed: 

 “NOTICE OF
CHARGE” 
 This [specify nature of Personal Chattel] and additions and ancillary equipment are subject to a fixed charge in favour
of [“name of the ABL Agent or Noteholder Collateral Trustee”]. 
  

	5.7	General Undertakings: 

 Each Chargor shall comply
with the provisions of Schedule 7 (General Undertakings). 
  

	5.8	Representations and Warranties: 

 Each Chargor makes
each of the representations and warranties set out in Schedule 8 (Representations and Warranties). 
  

	6.	ENFORCEMENT 

  

	6.1	Power of Sale: The power of sale or other disposal and other powers conferred on the ABL Agent and on any Receiver by this Deed shall operate as a variation and extension of
the statutory power of sale and other powers conferred on mortgagees under section 101 of the LPA and such powers shall arise on the date of this Deed free from the restrictions imposed by section 103 of the LPA, which shall not apply to the
Charges. 

  

	6.2	Enforceability of Security: 

  

	 	(a)	For the purposes of all powers implied by the LPA or any other applicable statute, the Secured Obligations shall be deemed to have become due and payable upon the date of this Deed.

  

 12 

	 	(b)	Save as provided in Clause 6.3 (Effect of Moratorium) below, the Charges given by a Chargor shall become immediately enforceable upon the occurrence and during the
continuation of a Specified Default and the power of sale conferred by section 101 of the LPA and all other powers conferred on mortgagees and Receivers by law (as varied and extended by this Deed) shall be exercisable in relation to the Charges and
the ABL Agent may take possession, hold or dispose of any Charged Asset at any time after the Charges have become enforceable. 

  

	 	(c)	The statutory power of leasing conferred upon the ABL Agent shall be extended so as to authorise the ABL Agent to lease, make agreements for leases, accept surrenders of leases and
grant options as the ABL Agent thinks fit and without the need to comply with any of the provisions of sections 99 and 100 of the LPA and any lease granted will bind any holder of a subsequent Security deriving title under the ABL Agent.

  

	6.3	Effect of Moratorium: The Charges will not become enforceable solely as a result of any person obtaining or taking steps to obtain a moratorium under Schedule A1 of the
Insolvency Act 1986. 

  

	6.4	Contingencies: If the Charges are enforced at a time when no amount is due under the Loan Documents but at a time when amounts may or will become due, the ABL Agent (or the
Receiver) may pay the proceeds of any recoveries effected by it into a suspense account. 

  

	6.5	Renewal of Deposits: Without prejudice to any right of set-off any Secured Party may have under any other Loan Document or otherwise, if any time deposit matures on any
account a Chargor has with any Secured Party prior to the Release Date when: 

  

	 	(a)	the Charges have become enforceable; and 

  

	 	(b)	no Secured Obligation is at that time due and payable, 

 that time deposit will automatically be renewed for any further period which that Secured Party considers appropriate. 
  

	6.6	Right of Appropriation: Financial Collateral: to the extent that any of the Charged Assets constitute “financial collateral” and this Deed and the obligations of
any Chargor hereunder constitute a “security financial collateral arrangement” (in each case, as defined in, and for the purposes of, the Financial Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226; the
“Regulations”)), the ABL Agent shall have the right following enforcement of this Deed to appropriate all or any part of such financial collateral in or towards discharge of the Secured Obligations. For this purpose, the parties
agree that the value of such financial collateral so appropriated shall be (i) in the case of cash, the amount standing to the credit of each of the Bank Accounts, together with any accrued but unposted interest, at the time the right of
appropriation is exercised, and (ii) in the case of Investments, the market price of such Investments determined by the ABL Agent by reference to a public index or by such other process as the ABL Agent may select, including independent
valuation. In each case, the parties agree that the method of valuation provided for in the Deed shall constitute a commercially reasonable method of valuation for the purposes of the Regulations. 

  

	6.7	Chargors’ discretion: Each Chargor may assume (without any obligation to investigate) that, unless it has received actual notice to the contrary or has otherwise become
aware that such is not the case, if the ABL Agent or the Noteholder Collateral Trustee claims to have been granted a prior security interest with respect to any Charged Asset, then it has been granted such prior security interest.

  

	7.	APPOINTMENT AND RIGHTS OF RECEIVERS AND ADMINISTRATORS 

  

	7.1	Appointment of Receivers and Administrators: 

  

	 	(a)	If: 

  

	 	(i)	a Specified Default occurs and is continuing; 

  

 13 

	 	(ii)	so requested by the relevant Chargor; or 

  

	 	(iii)	a petition is presented or application made for the appointment of an administrator, a liquidator or a provisional liquidator in respect of the relevant Chargor or notice is given
by any person entitled to do so of the intention to appoint an Administrator or such notice is filed with the court or an application or order is made for the application of an Administrator, 

 the ABL Agent may, by deed or otherwise in writing signed by any officer of the ABL Agent or any other person authorised by the ABL Agent for this
purpose: 
  

	 	(A)	appoint one or more persons to be Receiver of any Charged Assets of the relevant Chargor and/or appoint two or more Receivers of separate parts of the Charged Assets; or

  

	 	(B)	when permitted by law, appoint an Administrator of the relevant Chargor pursuant to paragraph 14 of Schedule B1 of the Insolvency Act 1986; or 

  

	 	(C)	(subject to any requirement for a court order under the Insolvency Act 1986 or any other applicable insolvency law) remove any Receiver so appointed and, at its option, appoint
another person(s) to be an additional or replacement Receiver. 

  

	 	(b)	If more than one person is appointed Receiver or Administrator of any assets, each Receiver or Administrator may act either jointly or severally unless the document appointing him
states otherwise. 

  

	 	(c)	Section 109(1) of the LPA does not apply to this Deed. 

  

	 	(d)	The powers of appointment of a Receiver under this Deed shall be in addition to all other statutory and other powers of appointment of the ABL Agent under the LPA or otherwise.

  

	7.2	Rights of Receivers: Any Receiver appointed pursuant to this Deed shall (subject to any restrictions in the instrument appointing him) have in relation to the Charged Assets
(and any other assets which when got in, would be Charged Assets) in relation to which he is appointed: 

  

	 	(a)	all the powers conferred on an administrative receiver or receivers under the Insolvency Act 1986; 

  

	 	(b)	all the powers conferred by the LPA or any other applicable law on mortgagees, mortgagees in possession and on receivers; and 

  

	 	(c)	all the powers and rights of an absolute owner and power to do or omit to do anything which the Chargor itself could do or omit to do. 

 In addition, a Receiver shall be entitled (either in his own name or in the name of the relevant Chargor or any trustee or nominee for the relevant
Chargor) or otherwise and in such manner and upon such terms and conditions as the Receiver thinks fit and either alone or jointly with any other person: 
  

	 	(d)	Take possession: to enter upon, take possession of, get in and collect the Charged Assets, to require directors of such Chargor to call up unpaid share capital and to take
action to enforce payment of unpaid calls and to require payment to him or the Secured Parties of any Monetary Claims or credit balance on any Bank Account; 

  

	 	(e)	Carry on business: to manage or carry on any business of such Chargor; 

  

 14 

	 	(f)	Contracts: to enter into any contract or arrangement and to perform, repudiate, rescind or vary any contract or arrangement to which the Chargor is a party to the extent
necessary to dispose of the Charged Assets and to perform its obligations; 

  

	 	(g)	Deal with Charged Assets: to sell, transfer, assign, exchange, hire out, lend or otherwise dispose of, convert into money or realise the Charged Assets (including any
Fixtures, other than landlord’s fixtures, which may be severed and sold separately from the Real Property containing them) either by public offer or auction, tender or private contract to any person on any terms and for a consideration of any
nature he thinks fit; 

  

	 	(h)	New Subsidiary: 

  

	 	(i)	to form or procure the formation of any new corporation, trust or partnership (a “new vehicle”); 

  

	 	(ii)	to subscribe for or acquire any Investment in such new vehicle; 

  

	 	(iii)	to transfer or transfer any right in or grant any lease or licence in any Charged Assets to such new vehicle; and 

  

	 	(iv)	to sell, transfer, assign, exchange or otherwise dispose of any such investments or any rights attaching thereto; 

  

	 	(i)	Borrowings: to borrow or raise money either unsecured or on the Security of the Charged Assets either in priority to the Charges or otherwise and on such terms as he thinks
fit; 

  

	 	(j)	Covenants and guarantees: to lend money or advance credit to any customer of a Chargor, enter into bonds, covenants, commitments, guarantees, indemnities or like matters and
to make all requisite payments to effect, maintain or satisfy the same; 

  

	 	(k)	Leases and tenancies: to lease or licence any Charged Assets to any person on any terms and for any rent or fee, to agree to any change to such terms or rent and to accept
any surrender of such lease or licence on any terms (including the payment of any surrender premium) and to make agreements and arrangements with and make allowances to any lessees, tenants or other persons from whom any rents and profits may be
payable, in each case it shall think fit; 

  

	 	(l)	Repairs: to effect any repairs or improvements to or insurance on, or do any act which he may think desirable to protect or improve, any Charged Asset or any business of any
Chargor or make it more productive, to carry out and/or complete any building operations and to apply for and maintain any planning permissions, building regulation approvals and other consents, in each case as he thinks fit;

  

	 	(m)	Proceedings and Claims: to bring, prosecute, enforce, defend and abandon actions, suits and proceedings in relation to the Charged Assets or the business of such Chargor;

  

	 	(n)	Compromise of Claims: to settle, adjust, refer to arbitration, compromise and arrange any claims, accounts, disputes, questions and demands with or by any person who is or
claims to be a creditor of such Chargor or relating in any way to the Charged Assets; 

  

	 	(o)	Redemption of Security: to redeem any Security (whether or not having priority to the Charges) over the Charged Assets and to settle the accounts of encumbrancers;

  

	 	(p)	Employment: to appoint and discharge officers, employees, agents and advisors and others for the purposes of this Deed and to discharge any person appointed by such Chargor;

  

	 	(q)	Receipts: to give a valid receipt for any moneys and execute any document which is necessary or desirable for realising any Charged Assets; 

  

 15 

	 	(r)	Insolvency Act 1986: to exercise all powers set out in Schedule 1 or Schedule B1 or (in the case of a Scottish Receiver) Schedule 2 to the Insolvency Act 1986 (whether or not
the Receiver is an administrative receiver) and any powers added to Schedule 1, Schedule B1 or Schedule 2, as the case may be, after the date of this Deed; and 

  

	 	(s)	Other Powers: to do all such other acts and things the Receiver may consider necessary or expedient for preserving, improving or realising the Charged Assets or the getting
in and collection of the Charged Assets (or any assets which when got in would constitute Charged Assets) or which are incidental to the exercise of any of the rights, powers and discretions conferred on the Receiver under or by virtue of this Deed
or by law. 

 Each of the powers specified in each of the above paragraphs shall (except as otherwise provided) be distinct and
shall not be in any way limited by reference to any other paragraph or the order in which they appear. 
  

	7.3	Agent of Chargor: Any Receiver shall be the agent of the relevant Chargor for all purposes unless and until the Chargor goes into liquidation after which time the Receiver
shall act as principal and shall not become agent of the Secured Parties. Subject to any applicable law, the relevant Chargor alone shall be responsible for his contracts, engagements, acts, omissions, defaults and liabilities and for any payment of
his remuneration. No Secured Party shall incur any liability by reason of the appointment of a Receiver under this Deed. 

  

	7.4	Remuneration: The ABL Agent may from time to time determine the remuneration of any Receiver and the maximum rate specified in section 109(6) of the LPA will not apply. The
ABL Agent may direct payment of such remuneration out of moneys accruing to the Receiver but the relevant Chargor alone shall be liable for the payment of such remuneration and for all other costs, charges and expenses of the Receiver.

  

	8.	DISTRIBUTION 

  

	8.1	Application: All moneys from time to time received by the ABL Agent or a Receiver or Delegate pursuant to this Deed or pursuant to the powers conferred by it shall (subject
to the payment of any liabilities having priority to the Secured Obligations by law and by way of variation of the provisions of the LPA), be applied in the following order: 

  

	 	(a)	in or towards the payment of or provision for all costs, losses, liabilities and expenses incurred by the ABL Agent or any Receiver or Delegate under or in connection with this Deed
or their appointment and the Receiver’s remuneration due in connection with this Deed; 

  

	 	(b)	in or towards discharge of the Secured Obligations in accordance with the Intercreditor Agreement; and 

  

	 	(c)	after all Secured Obligations have been repaid and discharged in full, in payment of the surplus (if any) to any Chargor or any other person entitled to it.

  

	9.	SECURITY TRUST 

  

	9.1	Appointment of ABL Agent as trustee 

  

	 	(a)	Pursuant to the terms of the Loan Agreement, each Secured Party appoints the ABL Agent to act as its trustee and representative in connection with this Deed and authorises the ABL
Agent to exercise such rights, powers and discretions as are specifically delegated to the ABL Agent by the terms hereof together with all rights, powers and discretions as are reasonably incidental thereto or necessary to give effect to the trusts
hereby created and each of the Secured Parties irrevocably authorises the ABL Agent on its behalf to release any existing security being held in favour of the Secured Parties, to enter into any and each Security Document and to deal with any
formalities in relation to the perfection of any security created by such Security Documents (including, inter alia, entering into such other documents as may be necessary to such perfection). 

  

 16 

	 	(b)	In the event of any inconsistency between the provisions of this Clause 9 (Security Trust) and Section 12 (ABL Agents) of the Loan Agreement, this Clause 9
(Security Trust) shall prevail. 

  

	9.2	Trust 

  

	 	(a)	The ABL Agent declares that it shall hold the benefit of this Deed on trust for the Secured Parties on the terms contained in this Deed. 

  

	 	(b)	Pursuant to the terms of the Loan Agreement, each of the parties to the Loan Agreement agrees that the ABL Agent shall have only those duties, obligations and responsibilities
expressly specified in this Deed with respect to the Security created by this Deed (and no others shall be implied). 

  

	9.3	No independent power 

 The Secured Parties shall not
have any independent power to enforce, or have recourse to, any of the Charges created by this Deed or to exercise any rights or powers arising under this Deed except through the ABL Agent. 
  

	9.4	ABL Agent’s discretions 

 The ABL Agent may:

  

	 	(a)	assume, unless it has in its capacity as trustee for the Secured Parties, received actual notice to the contrary or has otherwise become aware that such is not the case, that
(i) no Default has occurred and no Obligor is in breach of or default under its obligations under any of the Loan Documents and (ii) any right, power, authority or discretion vested by any Loan Document in any person has not been
exercised; 

  

	 	(b)	if it receives any instructions or directions pursuant to the Loan Agreement to take any action in relation to the Charges created by this Deed, assume that all applicable
conditions under the Loan Documents for taking that action have been satisfied; 

  

	 	(c)	engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts (whether obtained by the ABL Agent or by any other Secured Party) whose
advice or services may at any time seem necessary, expedient or desirable; 

  

	 	(d)	rely upon any communication or document believed by it to be genuine and, as to any matters of fact which might reasonably be expected to be within the knowledge of any Secured
Party, rely upon a certificate signed by or on behalf of that Secured Party; and 

  

	 	(e)	refrain from acting in accordance with the instructions received pursuant to the Loan Agreement (including bringing any legal action or proceeding arising out of or in connection
with the Loan Documents) until it has received any indemnification and/or security that it may in its absolute discretion require (whether by way of payment in advance or otherwise) for all costs, losses and liabilities which it may incur in
bringing any such legal action or proceedings. 

  

	9.5	Excluded obligations 

 Notwithstanding anything to
the contrary expressed or implied in the Loan Documents, the ABL Agent shall not: 
  

	 	(a)	be bound to enquire as to (i) whether or not any Default has occurred or (ii) the performance, default or any breach by an Obligor of its obligations under any of the Loan
Documents; 

  

 17 

	 	(b)	be bound to account to any other party for any sum or the profit element of any sum received by it for its own account; 

  

	 	(c)	be bound to disclose to any other person (i) any confidential information or (ii) any other information if disclosure would or might in its reasonable opinion constitute a
breach of any law or be a breach of fiduciary duty; 

  

	 	(d)	be under any obligations other than those which are specifically provided for in the Loan Documents; or 

  

	 	(e)	have or be deemed to have any duty, obligation or responsibility to, or relationship of trust or agency with, any Obligor. 

  

	9.6	Exclusion of ABL Agent’s liability 

 Unless
caused directly by its gross negligence or wilful misconduct the ABL Agent shall not accept responsibility or be liable for: 
  

	 	(a)	the adequacy, accuracy and/or completeness of any information (whether written or oral) supplied by the ABL Agent or any other person in connection with the Loan Documents or the
transactions contemplated in the Loan Documents, or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with the Loan Documents; 

  

	 	(b)	the legality, validity, effectiveness, adequacy or enforceability of any Loan Document or the Charges created by this Deed or any other agreement, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any Loan Document or the Charges created by this Deed; 

  

	 	(c)	any losses to any person or any liability arising as a result of taking or refraining from taking any action in relation to any of the Loan Documents or the Charges created by this
Deed or otherwise; 

  

	 	(d)	the exercise of, or the failure to exercise, any judgment, discretion or power given to it by or in connection with any of the Loan Documents, the Charges created by this Deed or
any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with the Loan Documents or the Charges created by this Deed; or 

  

	 	(e)	any shortfall which arises on the enforcement of the Charges created by this Deed. 

  

	9.7	No responsibility to perfect Charges 

 The ABL Agent
shall not be liable for any failure to: 
  

	 	(a)	require the deposit with it of any deed or document certifying, representing or constituting the title of any Obligor to any of the Charged Assets; 

  

	 	(b)	obtain any licence, consent or other authority for the execution, delivery, legality, validity, enforceability or admissibility in evidence of any of the Loan Documents or the
Charges; 

  

	 	(c)	register, file or record or otherwise protect any of the Charges (or the priority of any of the Charges) under any applicable laws in any jurisdiction or to give notice to any
person of the execution of any of the Loan Documents or of the Charges; 

  

 18 

	 	(d)	take, or to require any of the Chargors to take, any steps to perfect its title to any of the Charged Assets or to render the Charges effective or to secure the creation of any
ancillary Security under the laws of any jurisdiction; or 

  

	 	(e)	require any further assurances in relation to this Deed, 

 except where such failure arises as a result of the wilful misconduct or gross negligence of the ABL Agent. 
  

	9.8	Insurance by ABL Agent 

  

	 	(a)	The ABL Agent shall not be under any obligation to insure any of the Charged Assets, to require any other person to maintain any insurance or to verify any obligation to arrange or
maintain insurance contained in the Loan Documents. The ABL Agent shall not be responsible for any loss which may be suffered by any person as a result of the lack of or inadequacy of any insurance. 

  

	 	(b)	Where the ABL Agent is named on any insurance policy as an insured party, it shall not be responsible for any loss which may be suffered by reason of, directly or indirectly, its
failure to notify the insurers of any material fact relating to the risk assumed by such insurers or any other information of any kind. 

  

	9.9	Custodians and nominees 

 The ABL Agent may appoint
and pay any person to act as a custodian or nominee on any terms in relation to any assets of the trust as the ABL Agent may determine, including for the purpose of depositing with a custodian this Deed or any document relating to the trust created
under this Deed and the ABL Agent shall not be responsible for any loss, liability, expense, demand, cost, claim or proceedings incurred by reason of the misconduct, omission or default on the part of any person appointed by it under this Deed or be
bound to supervise the proceedings or acts of any person. 
  

	9.10	Acceptance of title 

 The ABL Agent shall be
entitled to accept without enquiry, and shall not be obliged to investigate, any right and title that any of the Chargors may have to any of the Charged Assets and shall not be liable for or bound to require any Chargor to remedy any defect in its
right or title. 
  

	9.11	Refrain from illegality 

 The ABL Agent may refrain
from doing anything which in its opinion will or may be contrary to any relevant law, directive or regulation of any jurisdiction which would or might otherwise render it liable to any person, and the ABL Agent may do anything which is, in its
opinion, necessary to comply with any such law, directive or regulation. 
  

	9.12	Business with the Chargors 

 The ABL Agent may
accept deposits from, lend money to, and generally engage in any kind of banking or other business with any Chargor. 
  

	9.13	Powers supplemental 

 The rights, powers and
discretions conferred upon the ABL Agent by this Deed shall be supplemental to the Trustee Act 1925 and the Trustee Act 2000 and in addition to any which may be vested in the ABL Agent by general law or otherwise. 
  

 19 

	9.14	Trustee division separate 

 In acting as trustee for
the Secured Parties, the ABL Agent shall be regarded as acting through its trustee division which shall be treated as a separate entity from any of its other divisions or departments and any information received by any other division or department
of the ABL Agent may be treated as confidential and shall not be regarded as having been given to the trustee division. 
  

	9.15	Disapplication 

 Section 1 of the Trustee Act
2000 shall not apply to the duties of the ABL Agent in relation to the trusts constituted by this Deed. Where there are any inconsistencies between the Trustee Act 1925 or the Trustee Act 2000 and the provisions of this Deed, the provisions of this
Deed shall, to the extent allowed by law, prevail and, in the case of any inconsistency with the Trustee Act 2000, the provisions of this Deed shall constitute a restriction or exclusion for the purposes of that Act. 
  

	9.16	Winding up of trust 

 If the ABL Agent determines
that (a) all of the Secured Obligations and all other obligations secured by this Deed have been fully and finally discharged and (b) none of the Secured Parties is under any commitment, obligation or liability (whether actual or
contingent) to make advances or provide other financial accommodation to any Obligor under the Loan Documents, the trusts set out in this Deed shall be wound up. At that time the ABL Agent shall release, without recourse or warranty, all of the
Charges then held by it and the rights of the ABL Agent under this Deed. 
  

	10.	AGENT’S RIGHTS 

  

	10.1	General Rights: All or any of the rights which are conferred by this Deed (either expressly or impliedly) or by law upon a Receiver may be exercised after the Charges become
enforceable by the ABL Agent irrespective of whether the ABL Agent shall have taken possession or appointed a Receiver of the Charged Assets. 

  

	10.2	Redemption of Prior Security: 

  

	 	(a)	Subject to the Intercreditor Agreement, in the event of any action, proceeding or step being taken to exercise any powers or remedies conferred by any prior ranking Security or upon
the exercise of any power of sale under this Deed by the ABL Agent or any Receiver, the ABL Agent may at any time redeem any Security having priority to any Charges or procure the transfer of that Security to itself and may settle the accounts of
the prior encumbrancer and any accounts so settled shall, in the absence of manifest error, be conclusive and binding on each Chargor. 

  

	 	(b)	Each Chargor shall, on demand of the ABL Agent, pay to the ABL Agent all the costs and expenses incurred by it in connection with any such redemption or transfer.

  

	 	(c)	All the rights conferred by a prior charge upon the chargee or any receiver thereunder shall be exercisable by the ABL Agent or a Receiver in like manner as if the same were
expressly included herein and the ABL Agent shall be entitled to exercise all the rights of a receiver appointed thereunder. 

  

	10.3	Delegation: 

  

	 	(a)	The ABL Agent or any Receiver may delegate in any manner to any person it may think fit any right, power or discretion exercisable by it under this Deed. 

 

	 	(b)	Any such delegation may be made upon such terms, consistent with the terms of the Loan Documents (including power to sub-delegate), as the ABL Agent or any Receiver may think fit.

  

 20 

	 	(c)	The ABL Agent shall not be in any way liable to any Chargor or any other person for any losses, liabilities or expenses arising from any act, default, omission or misconduct on the
part of any Delegate. 

  

	10.4	Continuation of Accounts: At any time following the commencement of the winding-up of any Chargor or if any Secured Party receives notice or is deemed to have received notice
of any subsequent Security affecting the Charged Assets or of any assignment or transfer (other than to the extent such Security is permitted or not restricted by the Loan Documents), the Secured Party may open a new account with it in the name of
such Chargor. If the Secured Party does not open a new account, it shall nevertheless be treated as if it had done so at the time when the winding-up commenced or the Secured Party received, or was deemed to have received, notice of such subsequent
Security. All payments made thereafter by a Chargor to that Secured Party shall be treated as having been credited to a new account of such Chargor and not as having been applied in reduction of the Secured Obligations as at the time when the
winding-up commenced or the ABL Agent received such notice. 

  

	10.5	Retention of Documents: Subject to the provisions of the Intercreditor Agreement, the ABL Agent shall be entitled to continue to retain any document delivered to it under
this Deed relating to a Charged Asset until the Charges over such Charged Asset are released in accordance with this Deed. If, for any reason, it ceases to hold any such document before such time, it may by notice to the relevant Chargor require
that the relevant document be redelivered to it and the relevant Chargor shall promptly comply with that requirement or procure that it is complied with. 

  

	10.6	Custody: Subject to the provisions of the Intercreditor Agreement, the ABL Agent shall be entitled to keep all certificates and documents of title relating to the Charged
Assets in safe custody at any of its branches or otherwise provide for their safe custody by third parties and shall not be responsible for any loss or damage occurring to or in respect thereof unless such loss or damage shall be caused by its own
gross negligence or wilful misconduct. 

  

	10.7	Recovery of Debts: The ABL Agent and any manager or officer of the ABL Agent or of any branch is hereby irrevocably empowered on or after the date the Charges are first
enforced to receive all Monetary Claims and on payment to give an effectual discharge therefor and on non-payment to take (if the ABL Agent in its sole discretion so decides) all steps and proceedings either in the name of each Chargor or in the
name of the ABL Agent for the recovery thereof and also to agree accounts and to make allowances and to give time to any surety. Neither the ABL Agent nor any Receiver shall be obliged to make any enquiry as to the sufficiency of any sums received
in respect of any Monetary Claims or to make any claims or take any other action to collect or enforce the same. 

  

	11.	RESPONSIBILITIES OF AGENT, RECEIVERS AND DELEGATES 

  

	11.1	No Obligation to Remain in Possession: If the ABL Agent, any Receiver or any Delegate shall take possession of the Charged Assets, it may from time to time in its absolute
discretion relinquish such possession. 

  

	11.2	No Liability as Mortgagee in Possession: Neither the ABL Agent nor any Receiver or Delegate will be liable, by reason of entering upon or into possession of a Charged Asset
(or viewing or repairing any Charged Assets or otherwise), to account as mortgagee in possession in respect of any Charged Assets or for any loss on realisation or for any default or omission in respect of any Charged Assets for which a mortgagee in
possession might otherwise be liable. 

  

	11.3	ABL Agent’s Obligation to Account: Neither the ABL Agent nor any Receiver or Delegate shall (either by reason of taking possession of the Charged Assets or for any other
reason): 

  

	 	(a)	be liable to account to any Chargor or any other person for anything except the ABL Agent’s own actual receipts which have not been distributed or paid to such Chargor or the
persons entitled (or at the time of payment reasonably believed by the ABL Agent to be entitled) thereto; or 

  

 21 

	 	(b)	be liable to such Chargor or any other person for any costs, losses, liabilities or expenses related to any realisation of any Charged Assets or from any act, default, omission or
misconduct of the ABL Agent, any Receiver, any Delegate or their respective officers, employees or agents in relation to the Charged Assets or in connection with any Loan Document unless caused by its own gross negligence or wilful misconduct.

  

	12.	FURTHER ASSURANCE 

 Subject to the provisions of the
Intercreditor Agreement, each Chargor shall, at its own expense, promptly do all such acts and things as the ABL Agent may reasonably require for: 
  

	 	(a)	creating, registering, perfecting, maintaining or protecting the Charges or any Security intended to be created by or pursuant to this Deed or any of the Charged Assets; or

  

	 	(b)	after the Charges have become enforceable, facilitating the realisation of any Charge or the exercise of any right, power or discretion in relation to any Charged Asset or Charge
vested in the ABL Agent, any Receiver or any Delegate, 

 including, without limitation, the execution (including by sealing) of
any transfer, assignment, mortgage, charge or Security or any other document or any notice or instruction which the ABL Agent may reasonably require, including any such document, notice or instruction required to enable the ABL Agent or its nominee
to obtain legal title to any Charged Assets in circumstances in which it is entitled to obtain such legal title under this Deed. 
  

	13.	POWER OF ATTORNEY 

  

	13.1	Appointment: Each Chargor by way of Security irrevocably appoints the ABL Agent, every Receiver and every Delegate severally to be its attorney: 

  

	 	(a)	to do all acts and things which such Chargor is obliged to do under this Deed but has failed to do within 10 Business Days of being notified of that failure and being requested to
comply; 

  

	 	(b)	to transfer any interest in any Charged Assets in the circumstances in which such transfer may be required under this Deed, including on an enforcement of the Charges over such
Charged Assets; and 

  

	 	(c)	in its name and on its behalf to exercise any right conferred on the ABL Agent, any Receiver or any Delegate in relation to the Charged Assets under this Deed or any other Loan
Document or by law after such right has become exercisable, 

 provided at all times however, the exercise of powers under this
Power of Attorney shall be subject to the provisions of the Intercreditor Agreement. 
  

	13.2	Ratification: Each Chargor agrees to ratify and confirm whatever any such attorney shall do or purport to do in the exercise or purported exercise of the power of attorney
granted by Clause 13.1 (Appointment). 

  

	13.3	Sums Recoverable: All moneys expended by the ABL Agent, any Receiver, any Delegate or any attorneys shall be recoverable from the Chargor under Clause 15 (Expenses, Stamp
Duty and Indemnities). 

  

	14.	PROTECTION OF THIRD PARTIES 

  

	14.1	No Duty to Enquire: No person dealing with the ABL Agent, any Receiver or any Delegate shall be concerned to enquire: 

  

	 	(a)	whether any right which the ABL Agent or any Receiver or Delegate is purporting to exercise or any of its powers has arisen or become exercisable; 

  

 22 

	 	(b)	whether the Secured Obligations have become payable or any amount remains outstanding under the Loan Documents; 

  

	 	(c)	as to the application of any money borrowed or raised or paid to the ABL Agent or any Receiver, Administrator or Delegate; or 

  

	 	(d)	as to the propriety or regularity of such dealings. 

  

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

  

	14.3	Statutory Protection: All the protection to purchasers contained in sections 104 and 107 of the LPA, section 42(3) of the Insolvency Act 1986 or in any other applicable
legislation shall apply to any person purchasing from or dealing with the ABL Agent, any Secured Party, any Receiver or any Delegate. 

  

	14.4	Tacking: Subject to the terms of the Loan Agreement, each Lender is under an obligation to make further advances and that obligation will be deemed to be incorporated in this
Deed as if set out in this Deed. 

  

	15.	EXPENSES, STAMP DUTY AND INDEMNITIES 

  

	15.1	Expenses: Each Chargor will promptly following demand pay to and reimburse the ABL Agent or any other Secured Party, Receiver, Delegate, agent or attorney on the basis of a
full indemnity, all reasonable costs and expenses (including legal fees and other out of pocket expenses and any VAT in accordance with the Loan Agreement) incurred by the ABL Agent or any other Secured Party, Receiver, Delegate, agent or attorney
in connection with this Deed and will indemnify them against any failure to pay such amounts including any amounts arising from any actual or alleged breach of any Environmental Law or other law provided that notwithstanding the preceding language
in this Clause 15.1, any costs and expenses arising in relation to the enforcement of any Charges hereunder shall be reimbursed on a full indemnity basis. 

  

	15.2	Stamp Duties: Each Chargor will promptly following demand pay to and indemnify the ABL Agent, each other Secured Party and any Receiver, Delegate, agent or attorney from and
against any liability for any stamp duty, stamp duty reserve, stamp duty land tax, documentary or registration or similar Taxes or notarial fees which are or may subsequently become payable in connection with the entry into, performance, execution
or enforcement of this Deed or to which this Deed may otherwise be or become subject or give rise. Each Chargor will in addition on demand indemnify the ABL Agent, each other Secured Party, any Receiver, Delegate, agent or attorney from and against
any losses or liabilities which they incur as a result of any delay or omission by such Chargor to so pay any such amounts. 

  

	15.3	Currency Indemnity: 

  

	 	(a)	If any sum (a “Sum”) owing by a Chargor under this Deed, or any judgment, award or order given in relation to this Deed, has to be converted from the currency in
which that Sum is payable into another currency for the purpose of: 

  

	 	(i)	making or filing a claim or proof against that Chargor; 

  

	 	(ii)	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings; or 

  

 23 

	 	(iii)	applying the Sum in satisfaction of any Secured Obligations, that Chargor shall, as an independent obligation, within three Business Days of demand, indemnify the ABL Agent, each
other Secured Party or any Receiver or Delegate from any cost, loss or liability incurred as a result of the conversion including any discrepancy between (A) the rate of exchange used to make the conversion and (B) the rate or rates of
exchange available to that person at the time of its receipt of that Sum. 

  

	 	(b)	Each Chargor waives any right it may have in any jurisdiction to pay any amount under this Deed in a currency or currency unit other than that in which it is expressed to be payable
unless required to do so by any applicable law. 

  

	16.	PAYMENTS 

  

	16.1	Certificates: A certificate, determination, notification or opinion of the ABL Agent or any other Secured Party as to the amount of the Secured Obligations or any other
matter connected with this Deed or the Charges shall, in the absence of manifest error, be prima facie evidence of the matters to which it relates. 

  

	16.2	Payments: All payments under or pursuant to this Deed (including damages in respect of breaches hereof) shall be made in accordance with the Loan Agreement and the
Intercreditor Agreement or in such other manner as the ABL Agent may agree and direct. 

  

	17.	EFFECTIVENESS OF SECURITY 

  

	17.1	Chargors’ Obligations Continuing: Each Chargor’s obligations under Clause 2 (Covenant to Pay) and the Charges are continuing obligations and will extend to
the ultimate balance of the Secured Obligations regardless of any intermediate payment or discharge in whole or in part. 

  

	17.2	Cumulative Rights: The rights and remedies provided in this Deed are cumulative and in addition to and independent of and not in any way prejudiced by any rights or remedies
provided by law or any other Security, guarantees or rights of set-off or combination thereof held by any Secured Party. 

  

	17.3	Failure to Exercise Rights: No failure by the ABL Agent to exercise or delay in the exercise of any right or remedy under this Deed will operate as a waiver thereof nor will
any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy. 

  

	17.4	Immediate Recourse: This Deed and the Chargors’ obligations under this Deed are in addition to, and not to be prejudiced by or to be merged with, any other guarantee,
indemnity or Security at any time existing in favour of any person. Each Chargor waives any right it may have to require any Secured Party (or any trustee or agent on its behalf) to make demand of, proceed against or enforce any other rights or
Security or claim payment from any person before claiming against such Chargor. This waiver applies irrespective of any law or any provision of any Loan Document (other than the Intercreditor Agreement) to the contrary. 

  

	17.5	Grant of Waivers: A waiver given or consent granted by the ABL Agent under this Deed will be effective only if given in writing and then only in the instance and for the
purpose for which it is given. 

  

	17.6	Waiver of Defences: As between each Chargor and the Secured Parties but without affecting the obligations of any Obligor each Chargor shall be liable under Clause 2
(Covenant to Pay) as if it were the principal debtor and not merely a surety. Neither the Charges nor the obligations of each Chargor under this Deed shall be discharged or affected by (and each Chargor hereby irrevocably waives any defences
it may now or hereafter acquire in any way relating to) any act, omission, matter or thing which, but for this Clause 17, would reduce, release or prejudice any of its obligations under this Deed (without limitation and whether or not known to such
Chargor or any Secured Party) including: 

  

	 	(a)	any time, waiver or consent given to, or any composition with, any Obligor or any other person; 

  

 24 

	 	(b)	the release of the Chargor or any other person under the terms of any composition or arrangement with any creditor of the Chargor or any other person (other than any express release
of the Charges given in accordance with this Deed); 

  

	 	(c)	any amendment, novation, supplement, extension (whether of maturity or otherwise) or restatement (in each case, however fundamental and of whatever nature) or replacement of any
Loan Document or any other Security or document; 

  

	 	(d)	the taking, perfection, enforcement, variation, compromise, exchange, renewal, release of, or the refusal or neglect to take, perfect or enforce, any rights against, or Security
over, assets of, or any guarantee or undertaking given by, any Obligor 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; 

  

	 	(e)	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or constitution or status of an Obligor, Secured Party or any other
person; 

  

	 	(f)	the illegality, invalidity or unenforceability of any obligation of any person under, or expressed to arise under, any Loan Document or other document; 

  

	 	(g)	any insolvency or similar proceedings under the laws of any jurisdiction or the making of any arrangement or composition with or for the benefit of creditors by any other Obligor,
any Secured Party or any other person; 

  

	 	(h)	any Secured Party ceasing or refraining from giving credit or making loans or advances to or otherwise dealing with any Obligor or any other person (but without prejudice to any
rights which any Chargor may have against a Secured Party by reason of default by that Secured Party under the Loan Documents); or 

  

	 	(i)	the failure of any Secured Party to disclose to any Chargor any information relating to the business, assets, financial condition or prospects of any other Obligor now or hereafter
known to such Secured Party (each Chargor waiving any duty on the part of the Secured Parties to disclose such information). 

  

	17.7	Deferral of Chargor’s Rights: Until all Secured Obligations have been irrevocably and unconditionally paid and discharged in full or the ABL Agent otherwise directs, no
Chargor will exercise any rights which it may have (by reason of performance by its obligations under the Loan Documents) or by reason of any amount being payable, or liability arising, under this Deed: 

  

	 	(a)	to be indemnified by any other Obligor; 

  

	 	(b)	to claim any contribution or payment from any other provider of Security or surety of any Obligor’s obligations under the Loan Documents; 

  

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

  

	 	(d)	to bring legal or other proceedings for an order requiring any other Obligor to make any payment, or perform any obligation, in respect of which any Chargor has given a guarantee,
undertaking or indemnity under this Deed; 

  

	 	(e)	to exercise any right of set-off against any Obligor; and/or 

  

	 	(f)	to claim or prove as a creditor of any Obligor in competition with any Secured Party. 

  

 25 

 Such Chargor shall hold any benefit, payment or distribution received by it in relation to such rights on
trust for the Secured Parties and shall pay an amount equal to the benefit, payment or distribution received immediately to the ABL Agent. 
  

	17.8	Partial Invalidity: If at any time any provision of this Deed is or becomes invalid, illegal or unenforceable in any respect (or any of the Charges intended to be created by
or pursuant to this Deed is ineffective) in any jurisdiction, that shall not affect the legality, validity or enforceability of: 

  

	 	(a)	the remaining provisions or the effectiveness of any of the remaining Charges in that jurisdiction; or 

  

	 	(b)	that or any other provision or the effectiveness of such Charges in any other jurisdiction. 

  

	17.9	Reinstatement: If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any Security for those obligations or otherwise) is made by a
Secured Party in whole or in part on the faith of any payment, Security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation: 

  

	 	(a)	the liability of each Obligor will continue or be reinstated as if the release, arrangement, discharge, settlement, avoidance or reduction had not occurred;

  

	 	(b)	each Secured Party shall be entitled to recover the value or amount of that payment, release, arrangement, discharge, Security or settlement from each Chargor, as if the payment,
discharge, settlement, avoidance or reduction had not occurred together with any other cost, loss, expense or liability incurred by such Secured Party as a result of such avoidance or discharge; and 

  

	 	(c)	each Chargor shall on demand indemnify the ABL Agent against any funding or other cost, loss, liability or expense incurred by the ABL Agent as a result of the ABL Agent being
required for any reason to refund all or part of any amount received by it in respect of any of the Secured Obligations. 

  

	17.10 	Security Retention: If the ABL Agent, acting reasonably, considers that any amount paid or credited under any Loan Documents is capable of being avoided or otherwise set
aside under any laws relating to insolvency or otherwise, that amount shall not be treated as paid for the purposes of determining whether the Secured Obligations have been paid. 

  

	17.11 	Final Redemption: 

  

	 	(a)	The ABL Agent shall at the cost of the Chargors concerned on the date on which it is satisfied (acting reasonably) that all the Secured Obligations have been irrevocably and
unconditionally paid and discharged in full and no further Secured Obligations are capable of becoming outstanding (the “Release Date”) or following receipt of a notice under paragraph (b) below, take all reasonable steps to
release and/or re-assign the Charged Assets from the Charges but without recourse to or any representation or warranty by the ABL Agent or any of its nominees. 

  

	 	(b)	If any Chargors are entitled to, under the terms of the Loan Agreement, and wish to, require the release of any of the Charges the ABL Agent shall, at the written request and cost
of the relevant Chargor release such Charges upon receipt of such request from the relevant Chargor in accordance with the provisions of the Loan Agreement. 

  

	 	(c)	All documents which are necessary in connection with the redemption of the Charges or the transfer of the Charged Assets back to the relevant Chargor shall be in such form as the
ABL Agent shall reasonably require. 

  

 26 

	 	(d)	Upon any sale, lease, transfer or other disposition of any Charged Asset in accordance with Section 10.2.6 (Disposition of Assets) of the Loan Agreement the Security
created hereunder in relation to such Charged Asset shall be automatically released. 

  

	 	(e)	If all of the ownership interests of in Chargor are sold, transferred or otherwise disposed of to any entity that is not an Affiliate (as defined in the Loan Agreement) pursuant to
a transaction permitted by Section 10.2.6 (Disposition of Assets) of the Loan Agreement that results in such Chargor ceasing to be a Restricted Subsidiary (as defined in the Loan Agreement) or if a Chargor is designated as an
Unrestricted Subsidiary (as defined in the Loan Agreement) in accordance with the terms of the Loan Agreement, or upon the effectiveness of any written consent pursuant to Section 15.1.1 (Amendment) of the Loan Agreement to the release
of the guarantee granted by such Chargor, the Security created hereunder in relation to that Chargor’s Charged Assets shall be automatically released. 

  

	17.12 	Consolidation: Section 93 of the LPA (restricting the right of consolidation of the Charges with any other Security) shall not apply to the Charges and the ABL Agent may
consolidate all or any of the Charges with any other Security to the extent lawful. 

  

	17.13 	Appropriations: 

 Until all Secured Obligations have
been irrevocably and unconditionally paid and discharged in full and all facilities which might give rise to Secured Obligations have been terminated, each Secured Party (or any trustee or agent on its behalf) may, subject to the terms of the
Intercreditor Agreement and without affecting the liability of any Chargor under this Deed: 
  

	 	(a)	refrain from applying or enforcing any other moneys, Security or rights held or received by that Secured Party (or any trustee or agent on its behalf) in respect of those amounts,
or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Chargor shall be entitled to the benefit of the same; and 

  

	 	(b)	hold in an interest-bearing suspense account any moneys received from any Chargor or on account of any Chargor’s liability under this Deed. 

  

	18.	SET-OFF 

  

	18.1	Set-Off: Upon the occurrence and during the continuation of a Specified Default the ABL Agent and each other Secured Party may (without notice to the relevant Chargor) set
off or otherwise apply against the Secured Obligations any credit balance to which any Chargor is entitled on any account with the ABL Agent or such Secured Party and any other obligation (contingent or otherwise) owing by the ABL Agent or such
Secured Party regardless of the place of payment, booking branch or currency of either obligation or the terms of any deposit standing to the credit of such account. 

  

	18.2	Currency Conversion: A Secured Party may exercise such rights notwithstanding that the obligations concerned may be expressed in different currencies and each Secured Party
is authorised to convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. 

  

	18.3	Set-Off Rights Cumulative: This Clause 18 (Set-Off) shall be in addition to and without prejudice to any rights of set-off or any other rights or remedies which a
Secured Party may have. 

  

	19.	COMMUNICATIONS 

 Each communication under this Deed
shall be made as provided in the Loan Agreement. 
  

 27 

	20.	THIRD PARTIES 

 Save as expressly stated in this
Deed, a person who is not a party to this Deed has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Deed. 
  

	21.	COUNTERPARTS 

  

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

  

	21.2	Non-signatories: Failure by one or more parties (“Non-Signatories”) to execute this Deed on the date hereof will not invalidate the provisions of this Deed
as between the other parties who do execute this Deed. Such Non Signatories may execute this Deed (or a counterpart thereof) on a subsequent date and will thereupon become bound by its provisions. 

  

	22.	ASSIGNMENT AND TRANSFER 

  

	22.1	Assignment: The ABL Agent and any Secured Party may at any time assign or otherwise transfer all or any part of its rights under this Deed in accordance with and subject to
the Loan Documents. 

  

	23.	GOVERNING LAW AND SUBMISSION TO JURISDICTION 

  

	23.1	Governing Law: This Deed is governed by and shall be construed in accordance with English law. Any non-contractual obligations arising out of or in connection with this Deed
are governed by English law. 

  

	23.2	Jurisdiction: 

  

	 	(a)	Subject to paragraph (c) below, the courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Deed (including a dispute
regarding the existence, validity or termination of this Deed or any non-contractual obligation arising out of or in connection with this Deed) or the consequences of its nullity (a “Dispute”). 

  

	 	(b)	The parties agree that the courts of England are the most appropriate and convenient courts to settle any Disputes and accordingly no party will argue to the contrary.

  

	 	(c)	This Clause is for the benefit of the Secured Parties only. As a result, no Secured Party shall be prevented from taking: 

  

	 	(i)	proceedings relating to a Dispute in any other courts with jurisdiction; and 

  

	 	(ii)	to the extent allowed by law, concurrent proceedings in any number of jurisdictions. 

 IN WITNESS WHEREOF the parties hereto have caused this Deed to be duly executed as a deed but it shall not be treated as being delivered until the date first written above. 
  

 28 

 SCHEDULE 1 
 THE CHARGORS 
  

					
	 Chargor
	  	 Jurisdiction of Chargor
	  	Register Number
	Solo Cup (UK) Limited	  	England and Wales	  	04003596
			
	Insulpak Holdings Limited	  	England and Wales	  	03813634
			
	Solo Cup Europe Limited	  	England and Wales	  	00979390

  

 29 

 SCHEDULE 2 
 DETAILS OF THE SCHEDULED REAL PROPERTY 
 None at the date of this Deed 
  

 30 

 SCHEDULE 3 
 DETAILS OF THE SCHEDULED INTELLECTUAL PROPERTY 
  

					
	 Patent/Trademark/Registered
 Design/Application Number
	  	 Country
	  	 Registered Proprietor/Applicant

	 STYROWEAVE
 (1152821)
	  	United Kingdom	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

			
	 STYROWEAVE
 (99055)
	  	Ireland	  	 Insulpak Limited
 (Registered Proprietor)

			
	 INSULPAK FOAM CONE
 (1503926)
	  	United Kingdom	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

			
	 

 (1514892)
	  	United Kingdom	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

			
	 

 (1533831)
	  	United Kingdom	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

			
	 

 (2277515)
	  	United Kingdom	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

			
	 Retropolitan
 (2472452)
	  	United Kingdom	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

			
	 

 (006611271)
	  	European Community	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

			
	 

 (006613236)
	  	European Community	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

			
	 DeliLite
 (2482834)
	  	United Kingdom	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

			
	 Yin Yang
 (2488753)
	  	United Kingdom	  	 Solo Cup Europe Ltd.
 (Registered Proprietor)

  

 31 

 SCHEDULE 4 
 DETAILS OF THE SCHEDULED BANK ACCOUNTS 
  

					
	 Account Holder
	  	 Bank
	  	 Bank Account number

			
	Solo Cup Europe Limited	  	 Lloyds TSB
 99 High Street
 Huntingdon Cambridgeshire,
 PE18 6DU England
	  	
			
	Solo Cup Europe Limited	  	 Lloyds TSB
 99 High Street
 Huntingdon Cambridgeshire,
 PE18 6DU England
	  	
			
	Solo Cup Europe Limited	  	 Lloyds TSB
 99 High Street
 Huntingdon Cambridgeshire,
 PE18 6DU England
	  	
			
	Solo Cup Europe Limited	  	 Lloyds TSB
 99 High Street
 Huntingdon Cambridgeshire,
 PE18 6DU England
	  	
			
	Solo Cup Europe Limited	  	 Lloyds TSB
 99 High Street
 Huntingdon Cambridgeshire,
 PE18 6DU England
	  	

  

 32 

 SCHEDULE 5 
 NOTICES FOR BANK ACCOUNTS 
  

			
	To:	  	[name of Account Bank]
		
		  	[address]
		
	Dated:	  	[•]

 Dear Sirs 
 [•] (the “Chargor”) 
 [number and description of the relevant account] (the “Specified
Accounts”): debenture dated [•] made between [, amongst others,] the Chargor and Bank of America, N.A. as ABL Agent (the “Deed”) 
  

	1.	Pursuant to the Deed, the Chargor has charged by way of first fixed charge in favour of the ABL Agent all its rights to, and interest in, the balance standing from time to time to
the credit of the Specified Accounts and any other bank account maintained with you and the debts represented by them (the “Accounts”). A copy of the Deed is enclosed. The Deed prohibits any dealing with the Accounts except with the
consent of the ABL Agent as provided in the Deed. 

  

	2.	The Chargor hereby irrevocably and unconditionally instructs and authorises you: 

  

	 	(a)	to disclose to the ABL Agent any information relating to the Accounts which the ABL Agent requests you to disclose; 

  

	 	(b)	to pay or to release any moneys standing to the credit of the Accounts, in accordance with any instructions which you receive from the ABL Agent; 

  

	 	(c)	not to permit any withdrawal by the Chargor of any moneys standing to the credit of the Accounts, without the prior written consent of the ABL Agent and to hold all such moneys to
the order of the ABL Agent; and 

  

	 	(d)	to comply with the terms of any written notices or instructions relating to the Deed and/or the Accounts and the debts represented by them which you receive from the ABL Agent.

  

	3.	The instructions and authorisations which are contained in this letter shall remain in full force and effect until the Chargor and the ABL Agent together give you notice in writing
revoking or amending them. You may comply with the instructions contained in this letter without further authority from the Chargor. 

  

	4.	The instructions and authorisations in this letter supersede any instructions and authorisations to the contrary given to you by or on behalf of any Chargor.

  

	5.	This letter is governed by English law. 

  

	6.	Please acknowledge your acceptance of the instructions and authorisations contained in this notice by signing the attached Form of Acknowledgement and returning it to the ABL Agent
at [•] copied to us. 

  

									
	Yours faithfully	 		 	
			
	[name of Chargor]	 		 	Bank of America, N.A.
					
	By	 	 	 		 	By	 	 

  

 33 

									
	By	 	Authorised Signatory	 		 	By	 	Authorised Signatory

  

 34 

 Form of Acknowledgement of Notice to Account Bank for a Bank Account 
  

			
	To:	  	Bank of America, N.A.
		
	Copy:	  	[Chargor]

 Dear Sirs 
 Debenture
dated [•] made between [, amongst others,] the Chargor and Bank of America, N.A. as ABL Agent (the “Deed”) 
 We hereby
acknowledge receipt of the notice (a copy of which is attached hereto) dated [•] and addressed to us by you regarding the Accounts and confirm that we: 
  

	 	(a)	accept the instructions and authorisations contained in the notice and agree to comply with the terms thereof; 

  

	 	(b)	do not have, and will not make or exercise, any claims or demands, any rights of counterclaim, Security, rights of set-off or rights against the Chargor in respect of the Accounts
and/or the debts represented by them other than in respect of fees for operating the accounts; and 

  

	 	(c)	(other than in relation to the interest of the Notes Collateral Trustee pursuant to the Notes Debenture) have not received notice of any interest of any third party in any Account
and/or the debts represented by them and to our knowledge there are no restrictions on the creation of Security over the Accounts pursuant to the Deed. 

 We agree that, in the event that we become aware at any time that any person other than yourselves has or will have any right or interest in the Accounts and/or the debts represented by them, we will promptly notify
you. 
 The only Account[s] maintained with us [is] [are] the Specified Account[s] referred to in the notice [and
[•]]. 
  

	
	Yours faithfully
	
	  
	[name of bank]

  

 35 

 SCHEDULE 6 
 FORM OF NOTICE OF CHARGE TO INSURERS 
  

			
	To:	  	[insert name and address of insurance company]
		
		  	[•]

 Dear Sirs, 
  

	Re:	[identify the relevant Insurance Policy(ies)] (the “Policies”) 

  

	1.	We hereby notify you that [insert name of relevant Chargor] (the “Company”) has granted a fixed charge in favour of Bank of America, N.A. (the “ABL
Agent”) for the benefit of itself and certain other banks and financial institutions (the “Secured Parties”) all its right, title and interest in the Policies as Security for certain obligations owed by the Company to the
Secured Parties. 

  

	2.	We further notify you that: 

  

	 	(a)	the Company may not agree to amend, modify or terminate the Policies without the prior written consent of the ABL Agent; 

  

	 	(b)	[subject to paragraph (a) above, you may continue to deal with the Company in relation to the Policies until you receive written notice to the contrary from the ABL Agent.
Thereafter the Company will cease to have any right to deal with you in relation to the Policies and therefore from that time you should deal only with the ABL Agent;] 

  

	 	(c)	you are authorised to disclose information in relation to the Policies to the ABL Agent on request; 

  

	 	(d)	[you must hold all sums from time to time due and payable by you to us under the Policies to the order of the ABL Agent;] 

  

	 	(e)	you will pay or release all moneys to which the Company is entitled under the Policies to such persons as the ABL Agent shall direct; 

  

	 	(f)	you will notify the ABL Agent promptly of any claim, or notification likely to result in a claim, under any Policy; and 

  

	 	(g)	the provisions of this notice may only be revoked with the written consent of the ABL Agent. 

  

	3.	Please sign and return the enclosed copy of this notice to the ABL Agent (with a copy to the Company) by way of confirmation that: 

  

	 	(a)	you agree to the terms set out in this notice and to act in accordance with its provisions; 

  

	 	(b)	you have noted the ABL Agent’s interest as additional insured or loss payee, as the case may be, on the Policies; 

  

	 	(c)	you will not cancel, avoid, release or otherwise allow the Policies to lapse without giving the ABL Agent at least 30 days’ written notice; 

  

	 	(d)	(except in relation to the Notes Collateral Trustee pursuant to the Notes Debenture) you have not received notice that the Company has assigned its rights under the Policies to a
third party or created any other interest (whether by way of Security or otherwise) in the Policies in favour of a third party; 

  

 36 

	 	(e)	you shall not permit any sums to be paid to the Company or any other person under or pursuant to the Policies without the prior written consent of the ABL Agent;

  

	 	(f)	the ABL Agent shall not in any circumstances be liable for the premiums in relation to the Policies; and 

  

	 	(g)	the Policies shall not be rendered void, voidable or unenforceable by reason of any non-disclosure by the ABL Agent. 

  

	4.	The provisions of this notice are governed by English law. 

  

	
	Yours faithfully
	
	  
	 for and on behalf of
 [insert name of Company]

  

 37 

 Form of Acknowledgement of Notice of Charge to Insurers 
  

			
	To:	  	Bank of America, N.A. [insert address]
		
	Copy to:	  	[insert name and address of Chargor]

 We hereby acknowledge receipt of the above notice and confirm the matters set out in paragraph 3 above.

  

	
	  
	 for and on behalf of
 [insert name of insurance
company]

 Dated: 
  

 38 

 SCHEDULE 7 
 GENERAL UNDERTAKINGS 
  

	1.	Real Property: Save as permitted or not restricted by the Loan Documents, each of the Chargors undertakes that it shall not do or omit to do anything which would materially
and adversely affect the value of the Charged Real Property except with the consent of the ABL Agent. 

  

	2.	Intellectual Property: Each Chargor undertakes that it shall in respect of its Intellectual Property: 

  

	 	(a)	take all such steps and do all such acts as may be necessary to preserve and maintain the subsistence and the validity of any such Intellectual Property except where such Chargor
determines that the use or the preservation or maintenance of such Intellectual Property is no longer desirable in the conduct of such Chargor’s business and that the loss thereof could not reasonably be likely to have a Material Adverse Effect
(as defined in the Loan Agreement); and 

  

	 	(b)	use all its reasonable endeavours to detect any infringement of any Intellectual Property subject to the Charges that is material to such Chargor’s business and if it becomes
aware of any such infringement, to promptly notify the ABL Agent and take all such steps as such Chargor or the ABL Agent deems reasonable and appropriate under the circumstances to prevent such infringement including, if so requested by the ABL
Agent, by bringing legal proceedings or permitting the ABL Agent in the name of, but at the cost of, such Chargor to bring such legal proceedings. 

  

	3.	Insurance: 

  

	 	(a)	Any moneys received under any Insurance Policies relating to Charged Assets shall be applied (subject to the terms of the Intercreditor Agreement and the rights of any person having
a prior claim to such moneys): 

  

	 	(i)	prior to the occurrence of a Specified Default, in accordance with the Loan Agreement; and 

  

	 	(ii)	following the occurrence and during the continuation of a Specified Default, the Chargor shall hold such moneys upon trust for the ABL Agent (or, if the Noteholder Collateral
Trustee has been granted a prior security interest in such moneys, the Noteholder Collateral Trustee) pending payment to the ABL Agent (or, if the Noteholder Collateral Trustee has been granted a prior security interest in such moneys, the
Noteholder Collateral Trustee) for application in accordance with Clause 8.1 (Application). 

  

	 	(b)	Each Chargor must promptly on request by the ABL Agent (acting reasonably) produce to the ABL Agent a copy of each Insurance Policy relating to the Charged Assets. If required by
the ABL Agent (acting reasonably) (but subject to the provisions of any lease of Charged Assets), a Chargor shall deposit all its Insurance Policies relating to the Charged Assets with the ABL Agent (unless the Noteholder Collateral Trustee has been
granted a prior security interest in such Insurance Policies and the same is required to be deposited with the Noteholder Collateral Trustee (and is so deposited) pursuant to the terms of the Notes Debenture) 

  

	4.	Fixtures and Personal Chattels: Each Chargor undertakes that it shall in each case except as could not reasonably be expected to have a Material Adverse Effect (as defined in
the Loan Agreement) maintain each Fixture and Personal Chattel subject to a fixed charge hereunder in good repair and working order (ordinary wear and tear excepted) and as soon as reasonably practicable, or in the case of any loss or damage to any
such Fixture or Personal Chattel as soon as reasonably practicable after the occurrence thereof, make or cause to be made all necessary repairs, replacements and other improvements in connection therewith. 

  

 39 

 SCHEDULE 8 
 REPRESENTATIONS AND WARRANTIES 
  

	1.	Real Property: Each Chargor represents and warrants to the ABL Agent that: 

  

	 	(a)	it is the sole legal and beneficial owner of all the Scheduled Real Property listed against its name in Schedule 2 (Details of the Scheduled Real Property) and no other person has
any legal or beneficial interest in or rights on or over all or any part of the Charged Real Property (other than as granted to the ABL Agent pursuant to this Deed or granted to the Noteholder Collateral Trustee pursuant to the Notes Debenture or as
otherwise permitted or not restricted under the Loan Documents); and 

  

	 	(b)	as at the date of this Deed, it does not own any estate or interest in any Real Property. 

  

	2.	Investments: Each Chargor represents and warrants to the ABL Agent that its Investments are free from security, options and other third party rights (except as created by
this Deed or the Notes Debenture or as otherwise permitted or not restricted under the Loan Documents). 

  

	3.	Intellectual Property: Each Chargor represents and warrants to the ABL Agent that: 

  

	 	(a)	except where it could not be reasonably likely to have a Material Adverse Effect (as defined in the Loan Agreement) it is the sole legal and beneficial owner of the Scheduled
Intellectual Property listed against its name in Schedule 3 (Details of the Scheduled Intellectual Property) and it is the sole legal and beneficial owner of, or is otherwise entitled to use, any other Intellectual Property necessary for it
to carry on its business as it is presently carried on free from all Security, options and other rights in favour of third parties (except as created by this Deed or the Notes Debenture or as otherwise permitted or not restricted under the Loan
Documents); and 

  

	 	(b)	except where it could not be reasonably likely to have a Material Adverse Effect (as defined in the Loan Agreement) it is not aware of any infringement or threatened infringement of
its Intellectual Property. 

  

 40 

 SIGNATORIES 
  

			
	*EXECUTED AS A DEED by	  	)
	SOLO CUP (UK) LIMITED 	  	)
	acting by one director or one director and another	  	)
	authorised signatory	  	)

  

			
	Name(s)	 	/s/ Richard Hernke
		 	 Richard Hernke 

  

			
	 Witness’s
 Signature
	 	/s/ Kim C. Frankovich
	(if signed by one director only)

 Name Kim Frankovich 
 Address 
 1700 Old Deerfield Rd, 
 Highland Park,

 IL 60035 
 USA 
 Notice Details 
 Address: Tower Close, St. Peters Industrial
Park 
 Huntingdon, PE29 7BZ UK 
 Facsimile: 44 0 1480459274

 Attention: VP Finance 
  

 41 

			
	*EXECUTED AS A DEED by	  	)
	INSULPAK HOLDINGS LIMITED 	  	)
	acting by one director or one director and another	  	)
	authorised signatory	  	)

  

			
	Name(s)	 	/s/ Richard Hernke
		 	 Richard Hernke

  

			
	 Witness’s
 Signature
	 	/s/ Kim C. Frankovich
	(if signed by one director only)

 Name Kim Frankovich 
 Address 
 1700 Old Deerfield Rd, 
 Highland Park,

 IL 60035 
 USA 
 Notice Details 
 Address: Tower Close, St. Peters Industrial
Park 
 Huntingdon, PE29 7BZ UK 
 Facsimile: 44 0 1480459274

 Attention: VP Finance 
  

 42 

			
	*EXECUTED AS A DEED by	  	)
	SOLO CUP EUROPE LIMITED 	  	)
	acting by one director or one director and another	  	)
	authorised signatory	  	)

  

			
	Name(s)	 	/s/ Richard Hernke
		 	 Richard Hernke 

  

			
	 Witness’s
 Signature
	 	/s/ Kim C. Frankovich
	(if signed by one director only)

 Name Kim Frankovich 
 Address 
 1700 Old Deerfield Rd, 
 Highland Park,

 IL 60035 
 USA 
 Notice Details 
 Address: Tower Close, St. Peters Industrial
Park 
 Huntingdon, PE29 7BZ UK 
 Facsimile: 44 0 1480459274

 Attention: VP Finance 
  

 * each to be signed by 2 directors or 1 director + secretary or 1 director +
witness 
  

 43 

					
	EXECUTED by	 	)
	BANK OF AMERICA, N.A.	 	)
	the ABL AGENT	 	)
			
	acting by:	 	/s/ Adam Seiden	 	)

 Notice Details 
 Address: 335 Madison Ave., New York, NY 
 Facsimile: 312-453-5562 
 Attention: Adam Seiden 
  

 44

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