Document:

exv4w225

Exhibit 4.225

DEED OF HYPOTHEC

ON THIS First (1st) day of September, Two Thousand and Ten (2010),

BEFORE Mtre Lucie Boulanger, the undersigned Notary, practising in the City and District of
Montreal, Province of Québec,

	 	 	 

	APPEARED:

	 	THE BANK OF NEW YORK MELLON, a legal person, having an office at
101 Barclay Street, Floor 4E, New York, NY 10286, herein acting
as “fondé de pouvoir” under Article 2692 of the Civil Code of
Québec, herein acting and represented by Lana RABINOVITCH,
hereunto duly authorized by a power of attorney dated August
25th, 2010, a copy or a duplicate of which is
attached hereto as Appendix “A”, after having been acknowledged
true and signed for identification by the said representative
with and in the presence of the undersigned Notary,
	 
	 	 
	 

	 	(hereinafter called the “Attorney”):
	 
	 	 
	AND:

	 	REYNOLDS FOOD PACKAGING CANADA INC. / EMBALLAGE ALIMENTAIRE
REYNOLDS CANADA INC., a legal person existing under the laws of
Canada, having its registered office at 5555 William Price
Street, Laval, Québec H7L 6C4, herein acting and represented by
Marc-Antoine LA ROCHELLE, hereunto duly authorized by a
resolution dated August 26th, 2010, a certified copy
or a duplicate of which is attached hereto as Appendix “B”,
after having been acknowledged true and signed for
identification by the said representative with and in the
presence of the undersigned Notary,
	 
	 	 
	 

	 	(hereinafter called the “Grantor”)

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

WHEREAS as continuing collateral security for the due payment, inter alia, of the Obligations (as
hereinafter defined), the Grantor has agreed to hypothecate all of its present and future movable
and immovable property;

NOW, THEREFORE, THE PARTIES HERETO HAVE AGREED AS FOLLOWS:

ARTICLE 1

INTERPRETATION

Section 1.1 Definitions

     Capitalized terms used herein and defined in the First Lien Intercreditor Agreement (as
hereinafter defined) shall have the meaning ascribed to them in the First Lien Intercreditor
Agreement unless otherwise defined therein and, as used herein, the following terms have the
following meanings unless there is something in the subject matter or context inconsistent
therewith:

     “Agreed Security Principles” has the meaning given to such term in the Credit Agreement and
the Senior Secured Notes Indenture and, to the extent of any inconsistency, the meaning in the
Credit Agreement prevails.

     “Applicable Law” means, with respect to any Person, any federal, provincial, state, local,
municipal or foreign (including the European Union) law, statute, treaty, rule or regulation or
final, non-appealable determination of any arbitrator or any court or other Governmental Authority,
in each case having legally binding effect upon and applicable to such Person or to any of its
property.

     “Attorney” means the Attorney defined above, acting as fondé de pouvoir under Article 2692 of
the Civil Code of Québec, and its successors and assigns.

     “Bondholder” means any Person holding at any time any one or more of the Bonds and any Person
with whom any Bond has been deposited as security or in whose favour a Bond has been pledged.

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     “Bonds” means the bonds which have been or may be issued hereunder from time to time, as same
may be amended, restated, replaced,
supplemented or otherwise modified from time to time, and “Bond” means any one of them.

     “Business Day” means a day (other than Saturday or Sunday) on which banks are open for
business in New York, London, Toronto and Montreal.

     “Charged Property” means the universality of all of the property, rights and assets of the
Grantor, present and future, movable and immovable, corporeal and incorporeal, of whatsoever nature
and wheresoever situated, including, without limitation:

	(a)	 	all present and future:

	 	(i)	 	Claims;
	 
	 	(ii)	 	Contractual Rights;
	 
	 	(iii)	 	Equipment;
	 
	 	(iv)	 	Hypothecated Securities;
	 
	 	(V)	 	Immovables;
	 
	 	(vi)	 	Insurance Policies;
	 
	 	(vii)	 	Intellectual Property;
	 
	 	(viii)	 	Inventory;
	 
	 	(ix)	 	Leases;

	 	(x)	 	Proceeds;

	 	(xi)	 	Records;
	 
	 	(xii)	 	Related Property;
	 
	 	(xiii)	 	Rents; and
	 
	 	(xiv)	 	Title Documents;

(b) all renewals, substitutions, improvements, accessions, attachments, additions, replacements and
proceeds to, of or from each of the foregoing.

     As used in this Hypothec, the term “Charged Property” shall mean all or, where the context
permits or requires, any portion of the above or any interest therein.

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     “Claims” means all claims of the Grantor, including, without limitation, all cash, cash
equivalents, bank accounts, accounts receivable, claims, debts, accounts and monies of every nature
which are now or
which may at anytime hereafter be due, owing or accruing to or owned by the Grantor, and also
all securities, bills, notes, negotiable instruments and other documents now held or owned or which
may be hereafter taken, held or owned by the Grantor or anyone on behalf of the Grantor in respect
of the foregoing or any part thereof.

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

     “Collateral Rights” means all the rights and powers of the Attorney provided by or pursuant to
this Hypothec or by law.

     “Contractual Rights” means all present and future rights of the Grantor arising under or in
connection with any agreements (such as, by way of example only, construction contracts,
architects’ agreements, engineers’ contracts, utility contracts, maintenance agreements, franchise
agreements and service contracts), permits, licenses, certificates and entitlements in any way
relating to the development, construction, use, occupancy, operation, maintenance, enjoyment,
acquisition or ownership of the Charged Property or any part thereof.

     “Control Agreement” means:

     (i) with respect to any uncertificated securities included in the Charged Property, an
agreement between the issuer of such uncertificated securities and another Person whereby such
issuer agrees to comply with instructions that are originated by such Person in respect of such
uncertificated securities, without the further consent of the Grantor; and

     (ii) with respect to any securities accounts or security entitlements included in the Charged
Property, an agreement between the securities intermediary in respect of such securities accounts
or security entitlements and another Person to comply with any entitlement orders with respect to
such securities accounts or security entitlements that are originated by such Person, without the
further consent of the Grantor.

     “Credit Agreement” means the Credit Agreement dated as of November 5, 2009 among Reynolds
Group Holdings Inc., Reynolds Consumer Products Holdings Inc., SIG Euro Holding AG & Co. KGaA,
Closure Systems International Holdings Inc., Closure Systems International B.V. and SIG Austria
Holding GmbH as borrowers, Reynolds Group Holdings Limited, the lenders from time to time party
thereto and Credit Suisse AG (formerly known as Credit Suisse), as administrative agent, as
amended, extended, restructured, renewed, novated, supplemented, restated, refunded, replaced or
modified from time to time.

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     “Delegate” means a delegate or sub-delegate appointed pursuant to Section 7.4 of this
Hypothec.

     “Enforcement Event” means (a) any “Event of Default” under, and as defined in, the First Lien
Intercreditor Agreement, and (b) any failure by the Grantor to pay any amount payable under any of
the Bonds when due.

     “Equipment” means all present and future equipment and machinery of the Grantor of whatever
kind and wherever situated, including, without limitation, all machinery, equipment, tools,
apparatus, furniture, fixtures and vehicles of whatsoever nature or kind.

     “Excluded Subsidiary” has the meaning given to it in the Credit Agreement or, if the Credit
Agreement is no longer in existence, any Additional Agreement.

     “First Lien Intercreditor Agreement” means the First Lien Intercreditor Agreement dated as of
November 5, 2009, among the Collateral Agent, The Bank of New York Mellon, as trustee under the
Senior Secured Notes Indenture, Credit Suisse AG (formerly known as Credit Suisse), as
administrative agent under the Credit Agreement, and the Loan Parties, as amended, novated,
supplemented, restated or modified from time to time (including by the Amendment No. 1 and Joinder
Agreement which added Wilmington Trust London Limited as a collateral agent under the First Lien
Intercreditor Agreement).

     “Governmental Authority” means any federal, provincial, state, regional, municipal or foreign
(including the European Union) court, government or governmental agency, board, tribunal,
authority, instrumentality or regulatory body and includes Her Majesty the Queen in right of Canada
or any Province or Territory thereof.

     “Grantor” means the Grantor defined above, and its successors and permitted assigns,
including, without limitation, any Person resulting from the amalgamation or continuation of the
Grantor.

     “Holder” means any Person holding at any time any one or more of the Titles of Indebtedness
and any Person with whom any Title of Indebtedness has been deposited as security or in whose
favour a Title of Indebtedness has been pledged.

     “Hypothec” means this deed and all amendments, replacements, restatements, supplements and
substitutions thereto.

     “Hypothecated Securities” means all securities, security entitlements, financial assets,
investment property, investment certificates, futures contracts, shares, options, warrants,
interests, participations, units or other equivalents of, in or issued by a trust, legal person,
partnership, limited partnership or other entity, whether voting or non-voting or participating or
non-participating, now or hereafter owned by the Grantor,

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provided, however, that
all securities, security entitlements, financial assets, investment property, investment
certificates, futures contracts, shares, options, warrants, interests, participations, units or
other equivalents of, in or issued by an Excluded Subsidiary, whether voting or non-voting or
participating or non-participating now or hereafter owned by the Grantor shall be excluded from the
Hypothecated Securities.

     “Immovables” means, collectively, all immovable property(ies) of the Grantor now owned or
hereafter acquired including, but not limited to, the immovable property(ies) described in the
Second Schedule of this Hypothec and any other property which becomes immovable by effect of
Applicable Law.

     “Insurance Policies” means all present and future insurance policies maintained by the Grantor
in respect of the Charged Property (or a portion thereof) or the life of any individual and all
insurance proceeds or indemnities in respect of the Charged Property or the life of any individual
payable thereunder from time to time.

     “Intellectual Property” means all of the right, title and interest of the Grantor in the
intellectual property and industrial property now or hereafter owned or used by the Grantor,
including, without limitation, all patents and trademarks, whether registered or not, industrial
designs (as well as applications for patents, trademarks or industrial designs), copyrights,
inventions, trade secrets, know-how, plant breeder’s rights, topography of integrated circuits,
rights related to the Grantor’s clientele and good will, corporate and other business names, as
well as similar rights, now or hereafter owned, used or held by the Grantor.

     “Intercreditor Arrangements” means the First Lien Intercreditor Agreement and any other
document that is designated by the Loan Parties’ Agent and the Collateral Agent as an intercreditor
agreement, in each case as amended, novated, supplemented, restated, replaced or modified from time
to time.

     “Inventory” means all of the inventory of the Grantor, both present and future whether in its
possession, in transit or held on its behalf, including, without limitation, all raw materials,
work in progress or materials used or consumed in the business of the Grantor and all other goods
and all products and by-products thereof or derived therefrom, manufactured, produced or purchased
for sale, lease or resale by the Grantor, or procured for such manufactured products, sale, lease
or resale and all goods, wares and merchandises used or procured for the packing or shipping of any
of the foregoing, and all the goods, wares and merchandises, products and by-products thereof or
derived therefrom, so manufactured, produced or purchased for sale, lease or resale.

     “Issuers” means the “Issuers” under, and as defined in, the Senior Secured Notes Indenture,
including their successors in interest.

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     “Leases” means, collectively, all present and future leases, offers to lease, sub-leases and
other agreements relating to the occupancy, use or enjoyment of the whole or any portion of the
Immovables and “Lease” means any one of them.

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

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

     “Loan Parties’ Agent” means Reynolds Group Holdings Limited (formerly known as Rank Group
Holdings Limited);

     “Notes” means the “Notes” under, and as defined in the Senior Secured Notes Indenture,
provided that such documents constitute “bonds and other titles of indebtedness” within the meaning
of Article 2692 of the Civil Code of Québec and “Note” means any one of them.

     “Obligations” means the due and punctual payment, in lawful money of Canada, of all principal
of and interest (including interest on amounts in default) and premiums if any, on the Titles of
Indebtedness.

     “Person” means any individual, corporation, partnership, joint venture, association, joint
stock company, trust, trustee, limited liability company, unincorporated organization, government
or any agency or political subdivision thereof, or any other form of entity.

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

     “Proceeds” means identifiable or traceable movable property, present or future, in any form
derived directly or indirectly from any dealing with the Charged Property or the proceeds therefrom
including any payment or right to a payment or insurance representing an indemnity or compensation
for loss of or damage to the Charged Property or any part thereof or proceeds therefrom.

     “Records” means all present and future deeds, documents, books, manuals, papers, letters,
invoices, writings and data (electronic or otherwise), access codes, recordings, evidencing or
relating to the Charged Property or any part thereof including all copies and representations of
the Intellectual Property in any form now known or in the future developed or discovered including,
without limitation, those on paper, magnetic and optical media, and all working papers, notes,
charges, drawings, materials and diagrams created in the process of developing the Intellectual
Property.

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     “Related Property” means the following: (a) any indemnity or proceeds of expropriation or
reimbursement of all taxes, rates, assessments, levies, surtaxes and any other impositions,
ordinary and extraordinary, which may be assessed on or payable in respect of any of the Charged
Property as well as any and all interest thereon and penalties
imposed in respect thereof now or hereafter payable; and (b) any present and future rights
whatsoever attached to the Immovables or any other Charged Property, as well as all present and
future fruits and revenues thereof.

     “Rents” means any and all present and future rents, income, revenues and/or any other amounts
produced by or in respect of the Immovables including, for greater certainty, any and all amounts
owing and to become owing by any lessee or other Person under any Lease as well as all present and
future claims and security therefor and rights to collect and receive same.

     “Senior Secured Notes Indenture” means the Indenture dated as of November 5, 2009, among the
Issuers, the Note Guarantors (as defined therein) and The Bank of New York Mellon, as trustee,
principal paying agent, transfer agent and registrar, as amended, extended, restructured, renewed,
refunded, novated, supplemented, restated, replaced or modified from time to time.

     “Special Property” means: (a) any contract, instrument, permit, lease or license or other
document as to which and for so long as the creation of a hypothec or other security interest would
constitute a violation of a valid and enforceable restriction in favour of a third party on such
creation unless and until any required consents were obtained; (b) any contract, instrument,
permit, lease, license or other documents as to which and for so long as the creation of a hypothec
or other security interest would give any other party to such contract, instrument, permit, lease,
license or other document the right to terminate its obligations thereunder; and (c) any contract,
instrument, permit, lease or license or other document held by the Grantor to the extent that and
for so long as any Applicable Law applicable thereto prohibits the creation of a hypothec or other
security interest therein.

     “Title Documents” means all present and future warehouse receipts and similar documents of
title relating to Inventory.

     “Titles of Indebtedness” means collectively the Bonds and the Notes and “Title of
Indebtedness” means any one of them.

Section 1.2 Severability

     If any one or more of the provisions contained in this Hypothec or any Title of Indebtedness
shall for any reason be held by a court of competent jurisdiction to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall, at the option
of the Attorney, be severable from and shall not affect any other provision of

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this Hypothec or the
Title of Indebtedness, as the case may be, but this Hypothec or the Title of Indebtedness shall be
construed as if such invalid, illegal or unenforceable provision had never been contained in this
Hypothec or the Title of Indebtedness.

Section 1.3 Interpretation and Headings

     The words “hereto”, “herein”, “hereof”, “hereby”, “hereunder” and similar expressions refer to
the whole of this Hypothec including, without limitation, these additional provisions, and not to
any particular Section or other portion thereof or hereof and extend to and include any and every
document supplemental or ancillary hereto or in implementation hereof. Words in the singular
include the plural and words in the plural include the singular. Words importing the masculine
gender include the feminine and neuter genders where the context so requires. Words importing the
neuter gender include the masculine and feminine genders where the context so requires. The
headings do not form part of this Hypothec and have been inserted for convenience of reference
only. Any reference to “including” shall mean “including without limitation” whether or not
expressly provided.

     All references in this Hypothec to the words “certificated security”; “entitlement holder”,
“entitlement order”, “financial asset”, “limited liability company”, “security”, “security
certificate”, “securities account”, “security entitlement”, “securities intermediary” and
“uncertificated security” shall have the same meanings as such words are defined or used (as the
case may be) in the Act Respecting the transfer of Securities and the Establishment of Security
Entitlements (Québec); provided that, when used herein, the terms “certificated security”
and “uncertificated security” shall be understood to mean a certificated security or uncertificated
security, as the case may be, that is held directly by and registered in the name of or endorsed to
the Grantor or the Attorney or their respective nominees, as applicable, and not a certificated
security or uncertificated security to which the Grantor or the Attorney, as applicable, has a
security entitlement.

     Any reference to the “Collateral Agent”, “Attorney”, the “Grantor” or the “Secured Parties”
shall be construed so as to include its or their (and any subsequent) successors and any permitted
transferees or assignees in accordance with their respective interests.

Section 1.4 Effective Date

     This Hypothec shall take effect upon execution of this Hypothec by the parties hereto
notwithstanding that all or any part of the principal amount secured by this Hypothec or by any
deposit or pledge of a Title of Indebtedness has not been advanced.

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Section 1.5 Currency

     Unless otherwise specified in this Hypothec, all dollar references in this Hypothec are
expressed in Canadian dollars.

ARTICLE 2

ISSUE OF BONDS

Section 2.1 Limitation of Issue

     The Bonds which may be created and issued under this Hypothec are limited to a principal
amount of TEN BILLION DOLLARS ($10,000,000,000) and may be created and issued for such amounts and
on such terms as any director, officer or other Person designated by the Grantor or any Person who
has signed this Hypothec for and on behalf of the Grantor may determine. The Grantor acknowledges
that the Bonds will constitute “titles of indebtedness” as such term is used in Article 2962 of the
Civil Code of Québec.

Section 2.2 Form of Bonds

     The Bonds shall be substantially in the form set out in the First Schedule of this Hypothec.
The Bonds shall bear the date of their issuance and shall be payable at the place indicated therein
or at any other place subsequently designated by the Attorney. The Bonds shall bear interest from
the date of their issuance, both before and after maturity, at the rate of twenty-five percent
(25%) per annum. The principal and interest of the Bonds shall be payable on demand, with interest
on overdue interest at the aforementioned rate.

Section 2.3 Signature of Bonds

     The Bonds may be signed for and on behalf of the Grantor by any officer or director of the
Grantor or any other Person designated by the Grantor, or any Person who has signed this Hypothec
for and on behalf of the Grantor.

Section 2.4 Execution

     The execution of the Bonds by the Grantor shall constitute conclusive evidence that the Bonds
have been issued hereunder but shall not be construed as a representation or warranty by the
Attorney as to the validity of this Hypothec, the security constituted hereby or the Bonds, and the
Attorney shall in no way be liable for the use made of the Bonds or the proceeds thereof.

Section 2.5 Hypothecation, Deposit and Assignment

     The Bonds may be hypothecated, pledged, deposited or assigned by the Grantor as security for
any indebtedness or any other obligations, direct or indirect, present or future, of the Grantor or
any other Person, or

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may be sold or otherwise alienated by the Grantor. In the event of such
hypothecation, pledge, deposit or assignment, the extinction of the underlying indebtedness or
obligation shall not constitute payment of the Bonds.

Section 2.6 Rank

     Subject to the First Lien Intercreditor Agreement, all Titles of Indebtedness shall rank
equally and shall be equally and rateably secured by the hypothec constituted hereunder.

Section 2.7 Replacement of Bonds

     Upon request from a Bondholder and subject to such reasonable requirements as the Attorney may
prescribe (including an indemnity by such Bondholder to the Grantor with respect to any loss,
liability and damages incurred by the Grantor resulting from the loss, mutilation or destruction of
a Bond certificate), the Grantor shall issue and deliver a new Bond certificate in place of a Bond
certificate requiring replacement by reason of such certificate having been lost, mutilated or
destroyed or for any other reason.

ARTICLE 3

CHARGE

Section 3.1 Hypothec

(a) To secure the payment of the Obligations and of the expenses and charges incurred by the
Attorney to obtain payment of the Obligations or to conserve the Charged Property, the Grantor
hereby hypothecates the Charged Property in favour of the Attorney for the principal sum of TEN
BILLION DOLLARS ($10,000,000,000), together with interest thereon from the date hereof at the rate
of twenty-five percent (25%) per annum, calculated semi-annually and not in advance.

(b) The hypothec granted hereunder does not constitute and shall not constitute nor be construed as
a floating hypothec within the meaning of Article 2715 of the Civil Code of Québec.

(c) Special Property. If any Special Property may not be hypothecated without the consent or
approval of another Person, then the security granted hereunder shall only apply to such Special
Property upon such consent or approval being obtained; provided that, in such event and subject to
the Agreed Security Principles, (a) upon the reasonable request of the Attorney in relation to
Special Property that it considers to be material, the Grantor shall use commercially reasonable
efforts to obtain such consent or approval and (b) the Grantor shall, to the extent it may do so at
law or pursuant to the provisions of the contract or interest in question, be deemed to hold in
trust and as mandatary for and on behalf of the Attorney, such Special Property and all of the
right, title and interest of

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the Grantor in and to such Special Property and any warranties,
guarantees and other rights which the Grantor may have in relation to such Special Property,
together with all benefits, advantages and obligations to be derived therefrom, until such
necessary consent or approval is obtained or until such time as such consent or approval is no
longer required,
whichever is earlier, at which time such Special Property shall automatically be hypothecated to
and in favour of the Attorney in accordance with the terms hereof; and if any requisite consent or
approval to the hypothecation of any Special Property cannot be obtained, the Grantor and the
Attorney shall cooperate with each other in order to provide the Attorney with the benefit of any
Special Property that has not been hypothecated and that is held by the Grantor pursuant hereto;
and the Grantor acknowledges that it shall not have any discretion to deal with any such Special
Property, except to the extent that the Grantor may be authorized to do so by the Attorney or if
otherwise permitted to do so under the Principal Finance Documents.

Section 3.2 Continuing Security

     The hypothec created herein is a continuing security and will subsist notwithstanding any
fluctuation or repayment of the obligations hereby secured. The Grantor shall be deemed to obligate
itself again, as provided in Article 2797 of the Civil Code of Québec, with respect to any future
obligation hereby secured.

Section 3.3 Representations, covenants, etc.

(a) The Grantor hereby declares, represents, warrants and covenants that as of the date of this
Hypothec and at all times during which this Hypothec is in effect, and subject to the provisions of
the Principal Finance Documents:

	 	(i)	 	the representations and warranties made by the Grantor as Loan Party in
Section 3.01 (Organization; Powers), 3.02 (Authorization), 3.03 (Enforceability),
3.06 (No Material Adverse Change), 3.09 (Litigation; Compliance with Laws), 3.10
(Agreements), 3.19 (Security Documents) and 3.22 (Solvency) of the Credit Agreement,
are true and accurate as regards the Grantor and this Hypothec;
	 
	 	(ii)	 	as of the date hereof, other than the immovable property(ies) listed in
the Second Schedule of this Hypothec, the Grantor is not the registered or
beneficial owner of any other immovable property in the Province of Québec.

(b) The representations and warranties contained in this Section 3.3 will be deemed to be repeated
as true and correct in all material respects by the Grantor on the date of a Credit Event (as
defined in the Credit Agreement) during the term of this Hypothec with the same effect as

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though made on and as of such date, except to the extent such representations and warranties expressly
relate to an earlier date.

ARTICLE 4

ADDITIONAL PROVISIONS WITH RESPECT TO THE

HYPOTHEC ON CLAIMS, RELATED PROPERTY, RENTS AND

HYPOTHECATED SECURITIES

Section 4.1 Debt Collection

     The Attorney hereby authorizes the Grantor to collect all Claims, Related Property and/or
Rents forming part of the Charged Property as the same fall due and payable according to the terms
of each of the documents evidencing such Claims, Related Property and/or Rents.

Section 4.2 Withdrawal of Authorization to Collect

     The Attorney may if an Enforcement Event has occurred and is continuing, withdraw the
authorization granted above, by giving notice as prescribed by Applicable Law, whereupon the
Attorney shall immediately be entitled to collect all Claims, Related Property and/or Rents
referred to in such notice. The debtors under such Claims, Related Property and/or Rents shall
comply with the notice sent by or on behalf of the Attorney and thereafter shall pay all Claims,
Related Property and/or Rents to the Attorney without inquiry into the state of accounts between
the Attorney and the Grantor or between any Holder and the Grantor.

Section 4.3 Accounts and Records

     Should the Attorney serve a notice withdrawing the authorization granted to the Grantor to
collect the Claims, Related Property and/or Rents as provided for above, the Grantor hereby agrees
that all accounts and records maintained by the Attorney with respect to any such Claims, Related
Property and/or Rents received and their application by the Attorney shall be prima facie
conclusive and binding unless proven to be wrong or incorrect.

Section 4.4 Assignment of Claims subject to the Financial Administration Act

     As security for the Obligations, the Grantor hereby assigns absolutely to the Attorney all its
present and future Claims which are subject to Sections 67 and 68 of the Financial Administration
Act (Canada) and the provisions of the Act Respecting the Ministère du revenu (Québec). The
Attorney may, at any time, fulfil any formalities required by Applicable Law to make this
assignment enforceable. Claims assigned in accordance with the provisions of this section shall be
deemed to constitute Charged Property.

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Section 4.5 Powers in Connection with Collection of Claims, Related Property and Rents

     Without limiting or otherwise restricting the Attorney’s rights as set forth herein or under
Applicable Law, following the occurrence of an Enforcement Event that is continuing, the Attorney
is irrevocably authorized in connection with the collection of the Claims, Related Property and/or Rents, as
the Grantor’s agent and mandatary, to:

(a) grant delays, take or abandon any security;

(b) grant releases and discharges, whole or partial, with or without consideration;

(c) endorse all cheques, drafts, notes and other negotiable instruments issued to the order of the
Grantor in payment of the Claims, Related Property and/or Rents;

(d) take conservatory measures and appropriate proceedings to obtain payment of the Claims, Related
Property and/or Rents;

(e) negotiate and settle out of Court with the debtors of the Claims, Related Property and/or
Rents, their trustee if there is a bankruptcy or insolvency, or any other legal representative, the
whole as it deems appropriate; and

(f) deal with any other matter relating to the Claims, Related Property and/or Rents, in its
discretion, without the intervention or the consent of the Grantor;

the Attorney shall not however be liable for any damages or prejudice which may result from its
fault, other than its intentional fault, wilful misconduct or gross negligence.

Section 4.6 Collection of Debts by Grantor

     If, despite the withdrawal of authorization by the Attorney in accordance with the terms
hereof, any Claims, Related Property and/or Rents are paid to the Grantor, the Grantor shall be
deemed to have received such amounts for the account and on behalf of the Attorney and shall pay
all such amounts to or to the order of the Attorney forthwith upon receipt.

Section 4.7 Further Assurances

     As and when requested by the Attorney, following the occurrence of an Enforcement Event that
is continuing, the Grantor shall remit to the Attorney all documents which are reasonably necessary
for the purposes set forth in this Article 4, shall sign any reasonably necessary documents without
delay, and, as the case may be, shall collaborate, in a reasonable

14

 

commercial manner, in the
collection by the Attorney of the Claims, Related Property and/or Rents, all at the Grantor’s sole
cost and expense.

Section 4.8 Waiver

     The Grantor hereby waives any obligation the Attorney may have to inform the Grantor of any
irregularity in the payment of any Claims, Related Property and/or Rents.

	Section 4.9 Hypothecated Securities

(a) If an Enforcement Event has occurred and is continuing, the Attorney shall have the right (but
shall not be obliged) to have any uncertificated securities or certificated securities included in
the Charged Property registered in its name or in the name of its nominee; and for such purpose the
Grantor shall comply with paragraph (f) or (g) below, as applicable, upon the request of the
Attorney.

(b) If an Enforcement Event has occurred and is continuing, the Attorney shall have the right (but
shall not be obliged) to become or have its nominee become the entitlement holder with respect to
any security entitlements or investment property included in the Charged Property; and for such
purpose the Grantor shall comply with Section (f) below upon the request of the Attorney.

(c) As the registered holder of any uncertificated securities or certificated securities or the
entitlement holder with respect to any investment property included in the Charged Property, the
Attorney, if any Enforcement Event shall have occurred and is continuing, shall be entitled (but
shall not be obliged, bound or required) to exercise any of the rights that any holder of such
securities or such entitlement holder may at any time have. The Attorney will not be responsible
for any loss occasioned by its exercise of any of such rights or by failure to exercise the same
within the time limited for the exercise thereof.

(d) The Attorney shall have no obligation to protest any of the Hypothecated Securities, to take
any steps to interrupt prescription, to protect the Hypothecated Securities against any
depreciation or reduction in value, to make any productive use of the Hypothecated Securities, or
to protect the Grantor against any loss relating in any way to the Hypothecated Securities.
Without prejudice to its other rights hereunder, the Attorney may, at its discretion, comply with
all provisions of Applicable Law with which the holder of any Hypothecated
Securities is required to comply.

(e) Notwithstanding any other term of this Hypothec, and subject to the terms of the Principal
Finance Documents, unless an Enforcement Event has occurred and is continuing, the Grantor is
entitled to receive or pay dividends or other distributions, vote any Hypothecated Securities, give
consents, waivers and ratifications in respect of any Hypothecated

15

 

Securities and exercise all rights and powers in respect of the Charged Property.

(f) To enable the Attorney to render opposable to third parties and to better protect its hypothec
in the Hypothecated Securities, promptly upon request from time to time by the Attorney acting on
the instructions of the Applicable Representative, the Grantor shall, subject to the Agreed
Security Principles:

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

(g) Promptly upon request from time to time by the Attorney acting on the instructions of the
Applicable Representative, but subject to the Agreed Security Principles, the Grantor shall give
its consent in writing to:

	 	(i)	 	the entering into by any issuer of any uncertificated securities included
in or relating to the Hypothecated Securities, as the Attorney may specify in its
request, of a

16

 

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

(h) Unless otherwise permitted under the Principal Finance Documents, the Grantor covenants that it
will not consent to, and represents and warrants to the Attorney that it has not heretofor
consented to:

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

ARTICLE 5

REMEDIES

Section 5.1 Acceleration

     If an Enforcement Event occurred and is continuing, all the Attorney’s rights and remedies
under this Hypothec and otherwise under Applicable Law shall immediately become enforceable and the
Attorney shall, in addition to any other rights, recourses and remedies it has, forthwith be
entitled to exercise any and all hypothecary rights prescribed by the Civil Code of Québec.

Section 5.2 Agent

     The Attorney may appoint any one or more agents who shall be entitled to exercise the powers
and rights vested in the Attorney pursuant to this Hypothec and under Applicable Law.

17

 

Section 5.3 Attorney May Act on Advice of Professionals

     The Attorney may execute any of the powers imposed or conferred upon it under this Hypothec,
and perform any duties required of it, by or through attorneys or agents and, in relation to this
Hypothec, may act on the opinion or advice of or information obtained from any lawyer, valuer,
surveyor, broker, auctioneer, accountant or other expert, whether obtained by the Attorney or by
the Grantor or otherwise, and, except to the extent provided in the Principal Finance Documents,
shall not be responsible for any loss occasioned by acting or not acting thereon, unless occasioned
by its intentional fault, wilful misconduct or gross negligence, and shall be entitled to take
legal or other advice and employ such assistance as may be necessary to the proper discharge of its
duties, and to pay proper and reasonable compensation to such agents and attorneys for all such
legal and other advice or assistance as aforesaid.

Section 5.4 Attorney’s Right to Perform Obligations

The Grantor irrevocably appoints the Attorney to be its attorney (mandatary) and in its name, on
its behalf to execute, deliver and render opposable to third parties all documents and do all
things which the Attorney may consider to be required or desirable for:

(a) carrying out any obligation imposed on the Grantor by this Hypothec or any other agreement
binding on the Grantor to which the Attorney is a party (including the execution and delivery of
any deeds, charges, assignments or other security and any transfers of the Charged Property);

(b) enabling the Attorney to exercise, or delegate the exercise of, all or any of the Collateral
Rights; and

(c) enabling any receiver to exercise or delegate the exercise of, any of the rights, powers and
authorities conferred on them by or pursuant to this Hypothec or by law,

provided always that the Attorney may only be entitled to exercise the powers conferred upon it by
the Grantor under this Section 5.4 if:

	(a)	 	an Enforcement Event has occurred and is continuing; and/or

(b) the Attorney has received notice from the Applicable Representative, the Loan Parties’ Agent
and/or the Grantor that the Grantor has failed to comply with a further assurance or perfection
obligation within 10 Business Days of the Grantor being notified of that failure (with a copy of
that notice being sent to the Loan Parties’ Agent),

provided further that the Attorney shall not be obliged to exercise the powers conferred upon it by
the Grantor under this Section 5.4 unless and until it shall have been (a) instructed to do so by
the Applicable

18

 

Representative and (b) indemnified and/or secured and/or prefunded to its satisfaction.

Section 5.5 Mise en demeure

     Except as otherwise expressly provided herein or in the Principal Finance Documents, no notice
or mise en demeure of any kind shall be required to be given to the Grantor by the Attorney for the
purpose of putting the Grantor in default, the Grantor being in default by the mere lapse of time
allowed for the performance of an obligation or by the mere happening of an event constituting an
Enforcement Event.

     Moreover, notwithstanding anything to the contrary herein or in the Credit Agreement, the
Attorney may sell or otherwise dispose of any Hypothecated Securities which are “securities” or
“security entitlements” (within the meaning of An Act Respecting the Transfer of Securities and
Establishment of Security Entitlements (Québec)), without having to give a prior notice, obtain
voluntary surrender thereof or observe the time limits prescribed by Applicable Law,
provided that the Attorney shall use commercially reasonable efforts to provide the Grantor
with a notice concurrently with such sale or other disposition, provided further that any
failure or delay in providing such notice shall not prejudice or be detrimental to any of the
rights and/or recourses of the Attorney hereunder.

Section 5.6 Exercise of Recourses

     In exercising any of the rights, recourses or remedies available hereunder, the Attorney may
at its discretion, in respect of all or any part of the Charged Property or any other security held
by the Attorney, exercise such rights, recourses and remedies as are available hereunder or under
Applicable Law, as it elects to exercise, without prejudicing the other rights, recourses and
remedies available to the Attorney in respect of all or part of the Charged Property or any other
hypothec or other security held by the Attorney. The Attorney may exercise any of such rights,
recourses and remedies in respect of all or any part of the Charged Property (or any other security
held by the Attorney), simultaneously or successively. It is further understood that the Attorney
shall be entitled to exercise and enforce all of the rights and remedies available to it, free from
any control of the Grantor provided, however, that the Attorney shall not be bound to realize any
specific security nor exercise any right or remedy as aforesaid and shall not be liable for any
loss which may be occasioned by any failure to do so.

Section 5.7 Surrender

     Subject to the rights of the Grantor under Applicable Law to oppose any hypothecary right of
the Attorney hereunder, if a prior notice of the Attorney’s intention to exercise a hypothecary
right is given to the Grantor, the Grantor shall, and shall cause any other Person in possession of
the Charged Property subject to such prior notice, to promptly surrender

19

 

same to the Attorney and shall execute, and cause to be executed all deeds and documents
required to evidence such surrender to the Attorney.

Section 5.8 Extension of Time and Waiver

     Neither any extension of time given by the Attorney to the Grantor or any Person claiming
through the Grantor, nor any amendment to this Hypothec or other dealing by the Attorney with a
subsequent owner of the Charged Property will in any way affect or prejudice the rights of the
Attorney against the Grantor or any other Person or Persons liable for payment of the Obligations
or any indebtedness secured by any pledge or deposit of a Bond. The Attorney may waive any
Enforcement Event in its sole discretion. No waiver will extend to a subsequent Enforcement Event,
whether or not the same as or similar to the Enforcement Event waived, and no act or omission by
the Attorney will extend to, or affect, any subsequent Enforcement Event or the rights of the
Attorney arising from such Enforcement Event. Any such waiver must be in writing and signed by the
Attorney. No failure on the part of the Attorney or the Grantor to exercise, and no delay by the
Attorney or the Grantor in exercising, any right pursuant to this Hypothec will operate as a waiver
of such right. No single or partial exercise of any such right will preclude any other or further
exercise of such right.

Section 5.9 Cancellation of Hypothec and Release

     The security constituted by this Hypothec shall be cancelled and released:

(a) by the Attorney (acting on the instructions of the Applicable Representative) at the request
and cost of the Grantor, upon the Obligations being irrevocably paid or discharged in full and none
of the Secured Parties being under any further actual or contingent obligation to make advances or
provide other financial accommodation to the Grantor or any other Person under any of the Loan
Documents; or

(b) in accordance with, and to the extent required by, the Intercreditor Arrangements (to the
extent it is possible to give effect to such arrangements under the laws of the Province of Québec
and the federal laws of Canada applicable therein).

     Moreover, if the Grantor disposes of any Charged Property and that disposal is permitted by
the Principal Finance Documents, such Charged Property shall, unless an Enforcement Event has
occurred and is continuing, be automatically released from the security created under this Hypothec
with effect from the day of such disposal and the Attorney (at the expense and cost of the Grantor)
shall do all such acts which are reasonably requested by the Grantor in order to release the
relevant Charged Property from the security created under this Hypothec. Any or all of the Charged
Property shall also be released in accordance with and to the extent permitted by the Intercreditor
Arrangements.

20

 

Section 5.10 Application of proceeds

     All amounts received by the Attorney or a receiver, whether in the exercise of that Person’s
powers or otherwise, shall (subject to the claims of all secured and unsecured creditors (if any)
ranking in priority to the security created by this Hypothec) be applied in accordance with the
provisions of the Intercreditor Arrangements.

ARTICLE 6

ADDITIONAL RIGHTS OF THE ATTORNEY

Section 6.1 Additional Rights

(a) The Grantor agrees that if an Enforcement Event has occurred and is continuing, the provisions
set forth below shall apply to supplement the provisions of any Applicable Law and without limiting
any other provisions of this Hypothec dealing with the same subject matter; provided always
that the Attorney may only be entitled to exercise the powers conferred upon it by the Grantor
under this Section 6.1 if an Enforcement Event has occurred and is continuing; provided
further that the Attorney shall not be obliged to exercise the powers conferred upon it by the
Grantor under this Section 6.1 unless and until it shall have been (a) instructed to do so by the
Applicable Representative and (b) indemnified and/or secured and/or prefunded to its satisfaction.

(b) The Grantor agrees that the Attorney may but is not obliged to, at the expense of the Grantor,
for the purposes of protecting or realizing upon the value of the Charged Property or its rights:

	 	(i)	 	cease or proceed with, in any way the Attorney sees fit, any enterprise
of the Grantor, and the administration of the Charged Property, including, without
limiting the generality of the foregoing:

	 	A)	 	sign any credit agreement, security document, lease,
service contract, construction contract, management contract, development
contract, maintenance contract or any other agreement, contract, deed or
other document in the name of and on behalf of the Grantor in connection
with the Charged Property or any enterprise of the Grantor and renew,
cancel or amend from time to time any such agreement, contract, deed or
other document;
	 
	 	B)	 	maintain, repair, renovate, operate, alter, complete,
preserve or extend any part of the Charged Property in the name of the
Grantor including undertaking or

21

 

	 	 	 	completing any construction work at the Grantor’s expense;
	 
	 	C)	 	consent to or terminate in the name of the Grantor
any servitude or other real right affecting the Charged Property;
	 
	 	D)	 	reimburse for and on behalf of the Grantor any third
Person having a claim against any part of the Charged Property;
	 
	 	E)	 	borrow money or lend its own funds for any purposes
related to the Charged Property; and
	 
	 	F)	 	receive the revenues, rents, fruits, products and
profits from the Charged Property and endorse any cheque, securities or
other instrument;

	 	(ii)	 	dispose of any part of the Charged Property likely to rapidly depreciate
or decrease in value;
	 
	 	(iii)	 	use the information it has concerning the Grantor or any information
obtained during the exercise of its rights except as may be otherwise provided in
the Principal Finance Documents or any confidentiality agreement;
	 
	 	(iv)	 	fulfil any of the undertakings of the Grantor or of any other Person;
	 
	 	(v)	 	use, administer and exercise any other right pertaining to the Charged
Property; and
	 
	 	(vi)	 	do all such other things and sign all documents in the name of the
Grantor as the Attorney may deem necessary or useful for the purposes of exercising
its rights, recourses and remedies hereunder or under Applicable Law.

(c) In the event of the exercise by the Attorney of any right, recourse or remedy following the
occurrence of an Enforcement Event which is continuing:

	 	(i)	 	any and all sums of money remitted to or held by the Attorney may be
invested at its discretion, without the Attorney being bound by any legislative
provisions relating to the investment or administration of the property of others;
the Attorney is not obliged to invest or pay interest on amounts collected even
where such amounts exceed the amounts due by the Grantor;

22

 

	 	(ii)	 	the Attorney may itself, directly or indirectly, become the owner of the
whole or any part of the Charged Property to the extent not prohibited by Applicable
Law;
	 
	 	(iii)	 	the Attorney may, at the time it exercises its rights, renounce to a
right belonging to the Grantor, make settlements and grant discharges and
mainlevées, even without consideration;
	 
	 	(iv)	 	in the event the Attorney exercises its hypothecary right of taking in
payment and the Grantor requires the Attorney to sell the whole or any part of the
Charged Property, the Grantor acknowledges that the Attorney shall not be required
to renounce to its hypothecary right of taking in payment unless, prior to the
expiration of the time limit to surrender, the Attorney (i) shall have received
security, which the Attorney deems satisfactory, to the effect that the sale will be
made at a price sufficient to pay all amounts owing under the Titles of Indebtedness
and to enable the Attorney to be paid its claim in full, (ii) shall have been
reimbursed the costs and expenses it shall have incurred, and (iii) shall have been
advanced all amounts necessary for the sale of the Charged Property;
	 
	 	(v)	 	in the event that the Attorney sells the whole or any part of the Charged
Property, it will not be required to obtain any prior appraisal from a third party;
and
	 
	 	(vi)	 	the sale of the Charged Property may be made with legal warranty on the
part of the Grantor or, at the option of the Attorney, with total or partial
exclusion of warranty.

(d) None of the Attorney, its nominee(s) or any receiver or Delegate appointed pursuant to this
Hypothec shall be liable by reason of (a) taking any action permitted by this Hypothec or (b) any
neglect or default in connection with the Charged Property or (c) the taking possession or
realisation of all or any part of the Charged Property, except to the extent provided in the
Principal Finance Documents.

(e) If any Enforcement Event has occurred and is continuing, the Attorney will not be liable or
responsible for any failure to seize, collect, realize, or obtain payment with respect to the
Charged Property and is not bound to institute proceedings or to take other steps for the purpose
of seizing, collecting, realizing or obtaining possession or payment with respect to the Charged
Property or for the purpose of preserving any rights of the Attorney, the Grantor or any other
Person, in respect of the Charged Property. The Attorney will not be liable or responsible for any
loss occasioned by any sale or other dealing with the Charged Property or by the retention of or
failure to sell or otherwise deal with the Charged

23

 

Property or bound to protect the Charged Property from depreciating in value or becoming worthless.

Section 6.2 Reasonable Care

     The powers conferred on the Attorney hereunder are solely to protect its interest in the
Charged Property and shall not impose any duty on it to exercise any such powers. Except for
reasonable care (discussed below) of any Charged Property in its possession and the accounting for
moneys actually received by it hereunder, the Attorney shall have no duty as to any Charged
Property or responsibility for:

(a) ascertaining or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relative to any Charged Property, whether or not the Attorney has or is
deemed to have notice or knowledge of such matters, or

(b) taking any necessary steps to preserve rights against prior parties or any other rights
pertaining to any Charged Property.

     The Attorney is required to exercise reasonable care in the custody and preservation of any of
the Charged Property in its possession; provided, however, the Attorney shall be deemed to have
exercised reasonable care in the custody and preservation of any of the Charged Property if it
exercises the same degree of care as it would exercise with respect to its own property kept at the
same place or if it takes such action for that purpose as the Grantor requests in writing at times
but failure of the Attorney to comply with any such request at any time shall not in itself be
deemed a failure to exercise reasonable care.

ARTICLE 7

THE ATTORNEY

Section 7.1 Acting as the Person Holding the Power of Attorney

     The Grantor hereby acknowledges and consents that the Attorney shall hold the hypothec granted
pursuant to this Hypothec for the benefit of the Holders and shall act as “fondé de pouvoir” of the
Holders within the meaning of Article 2692 of the Civil Code of Québec. The Attorney may perform
any act necessary to the performance of its duties.

     To the extent necessary or otherwise required by Applicable Law, and without prejudice to any
such appointment or designations in the Principal Finance Documents or any other agreement or
instrument, the Grantor hereby (i) appoints and designates the Attorney as the “fondé de pouvoir”
of the Holders within the meaning of Article 2692 of the Civil Code of Québec and (ii) waives the
benefit of Section 32 of the Act respecting the Special Powers of Legal Persons (Québec).

24

 

Section 7.2 Subsequent Holders of Titles of Indebtedness

     Any Person who becomes a Holder shall benefit from the provisions hereof and the appointment
of the Attorney as “fondé de pouvoir” of the Holders and, upon becoming a Holder, irrevocably
authorizes the Attorney to perform such function. Each Holder of a Title of Indebtedness, by its
acceptance thereof (a) acknowledges that the first issue of a Title of Indebtedness has been or may
be purchased from the Grantor by the Attorney, by underwriting, purchase, subscription or
otherwise, and (b) waives the benefit of Section 32 of the Act respecting the Special Powers of
Legal Persons (Québec).

Section 7.3 Protection of Persons Dealing with Attorney

     No Person dealing with the Attorney or its agents need inquire whether the hypothec hereby
constituted has become enforceable or whether the powers which the Attorney is purporting to
exercise have become exercisable.

Section 7.4 Delegation of Powers

     Subject to Section 4.05 of the First Lien Intercreditor Agreement, the Attorney and any
receiver shall have full power to delegate to another Person (either generally or specifically) the
powers, authorities and discretions conferred on it by this Hypothec (including the power of
attorney) on such terms and conditions as it shall see fit which delegation shall not preclude
either the subsequent exercise, any subsequent delegation or any revocation of such power,
authority or discretion by the Attorney or the receiver itself. The Agent shall not be responsible
for damages resulting from such delegation or from any fault committed by the Delegate.

Section 7.5 Possession or Production of Titles of Indebtedness not Required

     The Attorney may exercise all of its rights hereunder without possession of the Titles of
Indebtedness and without having to produce same in support of any judicial proceeding or trial in
connection therewith.

Section 7.6 Resignation and Removal of Attorney

     The Attorney may at any time resign hereunder in accordance with the terms and conditions of
Section 4.6 of the First Lien Intercreditor Agreement, which shall apply mutatis mutandis to the
Attorney, in its capacity as fondé de pouvoir. Any new “fondé de pouvoir” replacing the Attorney
further to such resignation, without further act, shall be vested with and have the rights and
powers granted to the Attorney hereunder and shall be subject in all respects to the conditions and
provisions hereof.

25

 

Section 7.7 Liability of Attorney

     The Attorney shall have each of the protections, immunities, rights, indemnities and benefits
conferred on the Collateral Agent under the First Lien Intercreditor Agreement, the Credit
Agreement and the Senior Secured Notes Indentures, in its capacity as fondé de pouvoir and such
protections, immunities, rights, indemnities and benefits shall apply to this Agreement as if set
out in full herein.

ARTICLE 8

SCHEDULES

Section 8.1 First Schedule

     The following is the First Schedule referred to in this Hypothec:

					
	 	 	 	 	 
	 
	 	BOND	 	 
	 	 	 	 	 
	CANADA
	 	 	 	No.: _______
	PROVINCE OF QUÉBEC
	 	 	 	Cdn$_______

REYNOLDS FOOD PACKAGING CANADA INC. / EMBALLAGE ALIMENTAIRE REYNOLDS CANADA INC., a legal person
governed by the laws of Canada (hereinafter called the “Grantor”), for value received, promises to
pay, on demand, to THE BANK OF NEW YORK MELLON as Collateral Agent (the “Agent”) under the First
Lien Intercreditor Agreement (as defined in the Deed of Hypothec itself defined below) or to its
order, at its office located at 101 Barclay Street, Floor 4E, New York, NY 10286, or at such other
place as it may direct, the sum of ______________________ dollars ($____________), in lawful money
of Canada, with interest thereon from the date hereof at the rate of twenty-five percent (25%) per
annum, both before and after maturity, with interest on overdue interest at the same rate.

This Bond is issued under and secured by a Deed of Hypothec (as amended, modified or supplemented
from time to time, the “Deed of Hypothec”) executed by the Grantor before Notary Lucie Boulanger,
on September 1st, 2010, in favour of THE BANK OF NEW YORK MELLON as fondé de pouvoir for
the Holders (as defined in the Deed of Hypothec) and this Bond is subject to, and its holder is
bound by, the provisions of the Deed of Hypothec and the Bond Pledge Agreement entered into on the
date hereof between the Grantor and the Agent in respect of this Bond.

This Bond shall be deemed to be a “Security Document” as such term is defined in the First Lien
Intercreditor Agreement (as defined in the Deed of Hypothec) and a “Security Document” under the
Credit Agreement (as defined in the Deed of Hypothec).

26

 

This Bond shall be governed by the laws of the Province of Québec and the laws of Canada applicable
therein.

IN WITNESS WHEREOF the Grantor has caused this Bond to be signed by its undersigned representative
and to be dated the ________ day of _____.

	 	 	 	 	 
	 	REYNOLDS FOOD PACKAGING CANADA 

INC. / EMBALLAGE ALIMENTAIRE 

REYNOLDS CANADA INC.

 	 
	 	 	 
	 	Per: 	 	 
	 	 	 	 
	 

Section 8.2 Second Schedule

     The following is the Second Schedule referred to in this Hypothec:

     DESCRIPTION OF IMMOVABLE PROPERTY(IES)

     NIL

ARTICLE 9

MISCELLANEOUS

Section 9.1 General Indemnity

     To the extent set out in Section 4.11 of the First Lien Intercreditor Agreement, the Grantor
shall, notwithstanding any release or discharge of all or any part of the security, indemnify the
Attorney, its agents, attorneys, nominee(s), any Delegate and any receiver against any action,
proceeding, claims, losses, liabilities, expenses, demands, taxes, and costs which it may sustain
as a consequence of any breach by the Grantor of the provisions of this Hypothec, the exercise or
purported exercise of any of the rights and powers conferred on them by this Hypothec or otherwise
relating to the Charged Property.

Section 9.2 Amendments and Waivers

     No amendment or waiver of any provision of this Hypothec shall be effective unless in writing
and signed by the party against whom enforcement is sought.

Section 9.3 Waivers

     No course of dealing on the part of the Attorney, its officers, employees, consultants or
agents, nor any failure or delay by the Attorney

27

 

with respect to exercising any right, power or privilege of the Attorney shall operate as a
waiver thereof.

Section 9.4 Payment to Third Parties

     If the Attorney is at any time or from time to time required to make a payment in connection
with the security constituted by this Hypothec, such payment and all reasonable costs of the
Attorney (including legal fees and other expenses) shall be immediately payable by the Grantor to
the Attorney.

Section 9.5 Notices

     All notices and communications hereunder shall be given to the addresses and otherwise made in
accordance with the provisions of the First Lien Intercreditor Agreement.

Section 9.6 Governing Law

     This Hypothec shall be governed by and construed in accordance with the Applicable Law of the
Province of Québec and the Applicable Law of Canada.

Section 9.7 Assignment

     The Attorney may assign and/or transfer all or part of its rights or obligations under this
Hypothec to any replacement collateral agent appointed in accordance with the First Lien
Intercreditor Agreement. The Grantor shall not assign or transfer any of its rights or obligations
under this Hypothec without the prior written consent of the Attorney (acting in accordance with
the First Lien Intercreditor Agreement).

Section 9.8 Paramountcy

     This Hypothec, the security interests created hereby and the rights, remedies, duties and
obligations provided for herein are subject in all respects to the terms of the Intercreditor
Arrangements. In the event of inconsistency or contradiction between the provisions of this
Hypothec and those of the Intercreditor Arrangements, the provisions of the Intercreditor
Arrangements shall prevail except that the provisions hereof shall prevail insofar as they relate
to the creation and enforcement of the hypothec created hereby.

Section 9.9 Security Document

     This Hypothec shall be deemed to be a “Security Document” as such term is defined in the First
Lien Intercreditor Agreement.

28

 

Section 9.10 Language

     The parties hereto confirm that they have requested that this Hypothec and all related
documents be drafted in English. Les parties aux présentes ont exigé que le présent acte et tous
les documents connexes soient rédigés en anglais.

WHEREOF ACTE:

THUS DONE AND PASSED, at the City of Montréal, Province of Québec, and remaining of record in the
office of the undersigned Notary, under the minute number one thousand two hundred and twenty-four
(1224).

AND after the Grantor and the Attorney had declared to the undersigned Notary that they had
taken cognizance of the present deed and had exempted the undersigned Notary from reading same or
causing same to be read, the said representatives of the Grantor and the Attorney signed this deed
in the presence of the undersigned Notary who also signed.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON

 	 
	 	/s/ Lana Rabinovitch
 	 
	 	Per: Lana RABINOVITCH 	 
	 	 	 
	 	REYNOLDS FOOD PACKAGING CANADA 

INC. / EMBALLAGE ALIMENTAIRE 

REYNOLDS CANADA INC.

 	 
	 	/s/ Marc-Antoine La Rochelle
 	 
	 	Per: Marc-Antoine LA ROCHELLE 	 
	 	 	 
	 	     /s/ Lucie Boulanger
 	 
	 	Lucie Boulanger, Notary 	 
	 	 	 

29exv4w226

	 	 	 	 	 

EXHIBIT 4.226

BOND PLEDGE AGREEMENT

Dated September 1, 2010

	 	 	 

	GRANTED BY:

	 	REYNOLDS FOOD PACKAGING CANADA INC. / EMBALLAGE ALIMENTAIRE
REYNOLDS CANADA INC., a legal person existing under the laws
of Canada, having its registered office at 5555 William
Price Street, Laval, Québec H7L 6C4 (the “Grantor”);
	 
	 	 
	IN FAVOUR OF:

	 	the Agent and the other Pledgees, as such terms are
hereinafter defined.

WHEREAS the Grantor has issued a Bond (as defined below) in the amount of TEN BILLION DOLLARS
($10,000,000,000) pursuant to the deed of hypothec executed by and between the Grantor and The Bank
of New York Mellon, as fondé de pouvoir, on September 1, 2010 before Notary Lucie Boulanger under
number 1224 of her minutes (the “Hypothec”); and

WHEREAS the Grantor wishes to pledge such bond to the Pledgees, as security for the Obligations (as
defined below).

NOW, THEREFORE, THE PARTIES HERETO HAVE AGREED AS FOLLOWS:

1. INTERPRETATION

1.1 The preamble hereof forms an integral part of this Agreement (as defined
below).

1.2 Unless otherwise specified herein, all dollar references in this Agreement are
expressed in Canadian dollars.

1.3 Capitalized terms used herein and defined (or incorporated by reference into) in
the Hypothec shall have the meaning ascribed to them in the Hypothec unless otherwise defined
therein and, as used herein, the following terms have the following meanings unless there is
something in the subject matter or context inconsistent therewith:

	 	(i)	 	The term “Agent” herein shall mean The Bank of New York Mellon, acting as
Collateral Agent, and as agent, custodian, depositary and mandatary for itself and
on behalf of the other Pledgees;
	 
	 	(ii)	 	The term “Agreement” means this Bond Pledge Agreement, and the
expressions “this Agreement”, “present Agreement”, “herein”, “hereby”, “hereunder”,
“hereof” and similar expressions refer to the Agreement, including all amendments,
modifications, supplements, extensions, consolidations, substitutions, renewals
or replacements thereof;

 

 

	 	(iii)	 	The term “Bond” herein shall mean the bond in the principal amount of
TEN BILLION DOLLARS ($10,000,000,000) payable on demand, dated the date hereof
issued by the Grantor pursuant to the Hypothec, represented by the certificate
bearing number 01;
	 
	 	(iv)	 	The term “Credit Agreement Secured Parties” herein shall have the meaning
ascribed thereto in the First Lien Intercreditor Agreement;
	 
	 	(v)	 	The term “Hypothec” herein shall have the meaning ascribed thereto in the
preamble to this agreement;
	 
	 	(vi)	 	The term “Obligations” herein shall mean, collectively, all present and
future obligations and liabilities (whether actual or contingent and whether owed
solidarily (jointly or severally) or in any other capacity whatsoever) of the
Grantor to the Secured Parties (or any of them) under each or any of the Loan
Documents, together with all costs, charges and expenses incurred by any Secured
Party in connection with the protection, preservation or enforcement of its
respective rights under the Loan Documents or any other document evidencing or
securing any such liabilities, but other than any such Obligations which comprise
any liability under “bonds and other titles of indebtedness” within the meaning of
Article 2692 of the Civil Code of Québec. (the “Civil Code”); and
	 
	 
	 	(vii)	 	The term “Pledgees” herein shall mean, collectively, the Agent and the
Secured Parties.

2. DELIVERY AND PLEDGE OF THE BOND

2.1 The Grantor hereby pledges the Bond in favour of the Pledgees by delivery of same
to the Agent acting as Collateral Agent for itself and on behalf of the other Pledgees under the
First Lien Intercreditor Agreement. The Agent hereby acknowledges receipt of the certificate
representing the Bond (certificate No. 01) and the Bond shall be held by the Agent in such
capacity, or on its behalf, and the Agent shall exercise its rights as payee thereof as Collateral
Agent for itself and on behalf of the other Pledgees under the First Lien Intercreditor
Agreement.

2.2 The Grantor hereby acknowledges and agrees that the Agent has full authority to act
on behalf of the Pledgees in all matters relating to this Agreement and the Bond, including,
without limitation, to hold and receive payment of the Bond on behalf and for the benefit of the
Pledgees and that any Person dealing with the Agent in respect of any such matter need not enquire
further as to the authority of the Agent to act on behalf of the Pledgees.

2.3 The Grantor further acknowledges that the Agent shall, for all the purposes
contemplated in the Hypothec, be deemed to be the sole holder of the Bond pledged hereunder whether
or not an Enforcement Event has occurred, and shall benefit from all of the rights, remedies,
powers, privileges and recourses of a Bondholder under the Hypothec.

2

 

3. SECURED OBLIGATIONS

The pledge hereby granted on the Bond shall secure the payment and the performance of the
Obligations.

4. AMOUNT OF THE PLEDGE

The amount for which the pledge is hereby granted is TEN BILLION DOLLARS ($10,000,000,000), plus
interest thereon at the rate of 25% per annum from the date hereof.

5. COVENANTS

The Grantor hereby covenants that, upon demand from the Agent, it shall perform all acts and
execute all deeds and documents reasonably necessary to give full effect to this Agreement and to
ensure that this Agreement is at all times enforceable, including without limitation the execution
of any written acknowledgement that the Bond or any portion thereof is pledged in favour of any
Pledgee which is not named herein and that any certificate representing the Bond or any portion
thereof is held by the Agent on behalf and in favour of such Pledgee or any successor or assignee
of a Pledgee.

6. EVENT OF DEFAULT

6.1 Notwithstanding the fact that the Bond is payable on demand, each Pledgee, acting
through the Agent, agrees that it will not demand, or cause to be demanded, payment of the Bond
until such time as an Enforcement Event has occurred and is continuing.

6.2 It is further agreed that, notwithstanding the fact that the Bond is in the amount
of TEN BILLION DOLLARS ($10,000,000,000) and bears interest at the rate of 25% per annum, the
Grantor shall not have any obligation to make, and the Pledgees shall not be entitled to receive,
payment under the Bond for any amount in excess of the Obligations.

6.3 The Agent may, if an Enforcement Event has occurred and is continuing, demand
payment of the Bond, collect payment of the principal and interest thereof, and exercise all of the
rights and remedies arising from the security constituted hereunder or permitted by applicable law,
all of which rights and remedies shall be cumulative, and none of which shall be exclusive.

6.4 Neither the Agent nor the other Pledgees shall be obliged to exhaust their
recourses against the Grantor or any other Person or Persons or against any other security any of
them may hold in respect of the Obligations before realizing upon or otherwise dealing with the
Bond in such manner as they may consider desirable.

7. WAIVER

7.1 The parties hereto hereby expressly waive the benefit of Section 32 of An Act
Respecting the Special Powers of Legal Persons (Québec) and specifically authorize the

3

 

Agent and any partnership or legal person whereof the Agent is a member or officer, to act as Bondholder.

8. MISCELLANEOUS

8.1 Notwithstanding Article 1572 and the second paragraph of Article 2743 of the Civil
Code or any other statutory rule concerning the imputation of payments, the Agent may apply the
amounts received pursuant to this Agreement in accordance with the terms of the First Lien
Intercreditor Agreement.

8.2 This Agreement is in addition to and not in substitution of or in replacement for
any other hypothec, pledge, security, guarantee or other right held by or benefiting to any
Pledgee.

8.3 The Agent and the other Pledgees shall not be liable or accountable for any failure
to collect, realize or obtain payment in respect of the Bond; shall not be bound to institute
proceedings for the
purpose of collecting, enforcing, realizing or obtaining payment of the Bond or for the purpose
of preserving any rights of any of them or any other parties, the Grantor or any parties in respect
thereof; shall not be responsible for any loss occasioned by any sale or other dealing with the
Bond or by the retention of or failure to sell or otherwise deal therewith, or be bound to protect
the Bond from depreciating in value or becoming worthless.

8.4 No waiver of any provision hereof, or consent to any action or inaction shall be
effective unless the same is in writing and signed by the party granting the same. Such waivers and
consents shall not extend to any matters other than those in respect of which the same were given,
and the same may be subject to such conditions as the party giving the same may stipulate.

8.5 This Agreement shall be governed by and construed in accordance with the laws of
the Province of Québec and the laws of Canada applicable therein.

8.6 The Bond, this Bond Pledge Agreement, the security interests created hereby and the
rights, remedies, duties and obligations provided for herein are subject in all respects to the
terms of the Intercreditor Arrangements. In the event of inconsistency or contradiction between
the provisions of this Agreement and those of the Intercreditor Arrangements, the provisions of the
Intercreditor Arrangements shall prevail except that the provisions hereof shall prevail insofar as
they relate to the creation and enforcement of the pledge created hereby.

8.7 This Agreement shall be deemed to be a “Security Document” as such term is defined
in the First Lien Intercreditor Agreement and a “Security Document” under the Credit Agreement.

8.8 The Agent may assign and/or transfer all or part of its rights or obligations under
this Agreement to any replacement collateral agent appointed in accordance with the First Lien
Intercreditor Agreement. The Grantor shall not assign or transfer any of its rights or

4

 

obligations under this Agreement without the prior written consent of the Agent (acting in accordance with the
First Lien Intercreditor Agreement).

8.9 This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.

8.10 The parties hereto confirm that they have expressly requested that this agreement
and all related documents be drafted in English. Les parties aux présentes confirment avoir
expressément demandé que la présente convention et tous les documents s’y rapportant soient rédigés
en anglais.

IN WITNESS WHEREOF, the parties have duly executed this agreement at Montreal, Québec, Canada on
the day and year first written above.

	 	 	 	 	 
	 	REYNOLDS FOOD PACKAGING CANADA INC. / EMBALLAGE 

ALIMENTAIRE REYNOLDS CANADA INC.

 	 
	 	/s/ Marc-Antoine La Rochelle
 	 
	 	Per: Marc-Antoine LA ROCHELLE 	 
	 
	 
	 	THE BANK OF NEW YORK MELLON for itself and for and on behalf of the Pledgees

 	 
	 	/s/ Lana Rabinovitch
 	 
	 	Per: Lana Rabinovitch 	 
	 	 	 

5

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