Document:

exv4w221

EXHIBIT 4.221

EXECUTION VERSION

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

DATED 16 AUGUST 2010

SIG COMBIBLOC HOLDING GMBH

AS THE CHARGOR

IN FAVOUR OF

THE BANK OF NEW YORK MELLON

AS THE COLLATERAL AGENT

 

SECURITY OVER SHARES AGREEMENT

 

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1. Definitions And Interpretation
	 	 	1	 
	 
	 	 	 	 
	2. Covenant To Pay And Charge
	 	 	4	 
	 
	 	 	 	 
	3. Deposit Of Certificates, Related Rights And Release
	 	 	4	 
	 
	 	 	 	 
	4. Voting Rights And Dividends
	 	 	5	 
	 
	 	 	 	 
	5. Chargor’s Representation And Undertakings
	 	 	6	 
	 
	 	 	 	 
	6. Further Assurance
	 	 	6	 
	 
	 	 	 	 
	7. Power Of Attorney
	 	 	7	 
	 
	 	 	 	 
	8. Security Enforcement
	 	 	8	 
	 
	 	 	 	 
	9. Limitations On Enforcement
	 	 	9	 
	 
	 	 	 	 
	10. Receivers And Administrators
	 	 	12	 
	 
	 	 	 	 
	11. Effectiveness Of Collateral
	 	 	14	 
	 
	 	 	 	 
	12. Delegation
	 	 	16	 
	 
	 	 	 	 
	13. Indemnity And Interest
	 	 	16	 
	 
	 	 	 	 
	14. Application Of Proceeds
	 	 	16	 
	 
	 	 	 	 
	15. Other Lien
	 	 	17	 
	 
	 	 	 	 
	16. Suspense Accounts And Currency Indemnity
	 	 	17	 
	 
	 	 	 	 
	17. Assignment
	 	 	18	 
	 
	 	 	 	 
	18. Waivers And Counterparts
	 	 	19	 
	 
	 	 	 	 
	19. Law
	 	 	19	 
	 
	 	 	 	 
	20. Enforcement
	 	 	19	 

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THIS AGREEMENT is made by way of deed on 16 August 2010

BETWEEN

	(1)	 	SIG COMBIBLOC HOLDING GMBH with its registered seat in Linnich, registered with the
Commercial Register of the Local Court Düren under HR B 5751, (the “Chargor”); and
	 
	(2)	 	THE BANK OF NEW YORK MELLON in its capacity as collateral agent for the Secured
Parties as appointed under the First Lien Intercreditor Agreement (the “Collateral Agent”).

RECITALS:

	(A)	 	Further to the Credit Agreement (as defined below) certain lenders and financial
institutions agreed to make available to the borrowers therein certain facilities (the
“Facilities”) on the terms set out in the Credit Agreement.
	 
	(B)	 	Further to the Senior Secured Note Indenture (as defined below), the Issuers (as
defined below) issued certain notes (the “Notes”).
	 
	(C)	 	The Chargor intends to provide security in respect of the Facilities and the Notes.
	 
	(D)	 	It is intended by the parties to this Agreement that this document will take effect
as a deed despite the fact that a party may only execute this Agreement under hand.
	 
	(E)	 	The Collateral Agent is acting under and holds the benefit of the rights conferred
upon it in this Agreement on trust for the Secured Parties.

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	“Additional Agreement” has the meaning given to that term in the First Lien Intercreditor
Agreement.
	 
	 	 	“Agreed Security Principles” has the meaning it is given in the Credit Agreement and the
Senior Secured Note Indenture and to the extent of any inconsistency the meaning it is given
in the Credit Agreement shall prevail.
	 
	 	 	“Applicable Representative” has the meaning given to that term in the First Lien
Intercreditor Agreement.
	 
	 	 	“Charge” means the charge constituted under this Agreement.
	 
	 	 	“Charged Portfolio” means the Shares and the Related Assets.
	 
	 	 	“Collateral Rights” means all rights, powers and remedies of the Collateral Agent provided
by or pursuant to this Agreement or by law.

 

 

	 	 	“Credit Agreement” means the Credit Agreement dated as of 5 November 2009 among Reynolds
Group Holdings Inc., Reynolds Consumer Products Holdings Inc., SIG Euro Holding AG & Co. KG
aA, 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.
	 
	 	 	“Delegate” means a delegate or sub-delegate appointed pursuant to Clause 12 (Delegation) of
this Agreement.
	 
	 	 	“Enforcement Event” means an “Event of Default” under, and as defined in, the First Lien
Intercreditor Agreement.
	 
	 	 	“First Lien Intercreditor Agreement” means the First Lien Intercreditor Agreement dated as
of 5 November 2009, among the Collateral Agent, The Bank of New York Mellon, as trustee
under the Senior Secured Note Indenture, Credit Suisse AG (formerly known as Credit Suisse),
as administrative agent under the Credit Agreement, and the Loan Parties, as amended,
novated, supplemented, restated or modified from time to time.
	 
	 	 	“Group” means Reynolds Group Holdings Limited and each of its subsidiaries from time to
time.
	 
	 	 	“Intercreditor Arrangements” means the First Lien Intercreditor Agreement and any other
document that is designated by the Loan Parties’ Agent and the Collateral Agent as an
intercreditor agreement, in each case as amended, novated, supplemented, restated, replaced
or modified from time to time.
	 
	 	 	“Issuers” means the “Issuers” under, and as defined in, the Senior Secured Note Indenture,
including their successors in interest.
	 
	 	 	“Lien” has the meaning given to such term in the First Lien Intercreditor Agreement.
	 
	 	 	“Loan Documents” means the “Credit Documents” under, and as defined in, the First Lien
Intercreditor Agreement and any other document designated by the Loan Parties’ Agent and the
Collateral Agent as a Loan Document.
	 
	 	 	“Loan Parties” means the “Grantors” under, and as defined in, the First Lien Intercreditor
Agreement.
	 
	 	 	“Loan Parties’ Agent” means Reynolds Group Holdings Limited (formerly known as Rank Group
Holdings Limited).
	 
	 	 	“Parallel Obligations” means the independent obligations of any of the Loan Parties arising
pursuant to the First Lien Intercreditor Agreement to pay to the Collateral Agent sums equal
to the sums owed by such Loan Party to the other Secured Parties (or any of them) under the
Loan Documents.

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	 	 	“Principal Finance Documents” means the Credit Agreement, the Senior Secured Note Indenture,
the Intercreditor Arrangements and any Additional Agreement.
	 
	 	 	“Receiver” means a receiver or receiver and manager or, where permitted by law, an
administrative receiver of the whole or any part of the Charged Portfolio and that term will
include any appointee made under a joint and/or several appointment.
	 
	 	 	“Related Assets” means all dividends, interest and other monies at any time payable at any
time in respect of the Shares and all other rights, benefits and proceeds in respect of or
derived from the Shares (whether by way of redemption, bonus, preference, option,
substitution, conversion or otherwise) held by, to the order or on behalf of the Chargor at
any time.
	 
	 	 	“Secured Liabilities” means all present and future obligations and liabilities (whether
actual or contingent and whether owed jointly or severally or in any other capacity
whatsoever) of each Loan Party and each grantor of a security interest to the Secured
Parties (or any of them) under each or any of the Loan Documents, together with all costs,
charges and expenses incurred by any Secured Party in connection with the protection,
preservation or enforcement of its respective rights under the Loan Documents or any other
document evidencing or securing any such liabilities.
	 
	 	 	“Secured Parties” means the “Secured Parties” under, and as defined in, the First Lien
Intercreditor Agreement.
	 
	 	 	“Security Documents” means the “Security Documents” under, and as defined in, the First Lien
Intercreditor Agreement.
	 
	 	 	“Senior Secured Note Indenture” means the Indenture dated as of 5 November 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.
	 
	 	 	“Shares” means all of the shares in the capital of SIG Combibloc Limited a company
incorporated under the laws of England and Wales with company number 01146077 held by, to
the order or on behalf of the Chargor at any time.
	 
	1.2	 	Terms defined in the First Lien Intercreditor Agreement
	 
	 	 	Unless defined in this Agreement or the context otherwise requires, a term defined in
the First Lien Intercreditor Agreement has the same meaning in this Agreement or any notice
given under or in connection with this Agreement.
	 
	1.3	 	Construction
	 
	(a)	 	The rules of interpretation contained in the First Lien Intercreditor Agreement will
apply as if incorporated in this Agreement or in any notice given under or in connection with
this Agreement; and
	 
	(b)	 	This Agreement is subject to the terms of the Intercreditor Arrangements. In the
event of a conflict between the terms of this Agreement and the Intercreditor Arrangements,
the terms of the Intercreditor Arrangements will prevail.

3

 

	2.	 	COVENANT TO PAY AND CHARGE
	 
	2.1	 	Covenant to Pay
	 
	 	 	The Chargor covenants with the Collateral Agent that it shall discharge each of the
Secured Liabilities on their due date in accordance with their respective terms.
	 
	2.2	 	Further advances
	 
	(a)	 	Subject to the terms of the Loan Documents, each Lender (as defined in the Credit
Agreement) is under an obligation to make further Loans (as defined in the Credit Agreement)
to the Loan Parties and that obligation will be deemed to be incorporated into this Agreement
as if set out in this Agreement.
	 
	(b)	 	Subject to the terms of the Loan Documents, each Issuer may issue further Notes (as
defined in the Senior Secured Notes Indenture) to the Loan Parties and that obligation will be
deemed to be incorporated into this Agreement as if set out in this Agreement.
	 
	2.3	 	Charge
	 
	 	 	The Chargor charges the Charged Portfolio with full title guarantee and by way of first
fixed charge, in favour of the Collateral Agent, as continuing security for the payment and
discharge of the Secured Liabilities.
	 
	3.	 	DEPOSIT OF CERTIFICATES, RELATED RIGHTS AND RELEASE
	 
	3.1	 	Deliverables
	 
	 	 	The Chargor will on the date of this Agreement (or promptly upon coming into possession
of the Chargor at any time) deposit (or procure there to be deposited) with the Collateral
Agent all certificates and other documents of title to the Shares, and stock transfer forms
(executed in blank by or on behalf of the Chargor) in respect of the Shares.
	 
	3.2	 	Related Assets
	 
	 	 	The Chargor shall, promptly upon the accrual, offer or issue of any stocks, shares,
warrants or other securities in respect of or derived from the Shares, procure the delivery
to the Collateral Agent of (a) all certificates and other documents of title representing
such items and (b) such duly executed blank stock transfer forms or other instruments of
transfer in respect thereof as the Collateral Agent may reasonably request.
	 
	3.3	 	Release
	 
	 	 	The security constituted by this Agreement shall be released and cancelled:
	 
	(a)	 	by the Collateral Agent (acting on the instructions of the Applicable Representative)
at the request and cost of the Chargor, upon the Secured Liabilities being irrevocably paid or
discharged in full and none of the Secured Parties being under any further actual or
contingent obligation to make advances or provide other financial accommodation to the Chargor
or any other person under any of the Loan Documents; or

4

 

	(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 English law).
	 
	4.	 	VOTING RIGHTS AND DIVIDENDS
	 
	4.1	 	Voting rights and dividends before an Enforcement Event
	 
	 	 	If an Enforcement Event is not continuing, the Chargor shall:
	 
	(a)	 	be entitled to all dividends, interest and other monies or distributions arising from
the Charged Portfolio to the extent the same are permitted to be paid under the Principal
Finance Documents; and
	 
	(b)	 	be entitled to exercise all voting rights in relation to the Charged Portfolio
provided that the Chargor shall not exercise (and shall procure that any nominee acting on its
behalf does not exercise) such voting rights in any manner, or otherwise permit or agree to
any (a) variation of the rights attaching to or conferred by any of the Shares or (b) increase
in the issued share capital of SIG Combibloc Limited, which would adversely affect the
validity or enforceability of the security created by this Agreement or which would cause the
occurrence of an Enforcement Event.
	 
	4.2	 	Voting rights and dividends after an Enforcement Event
	 
	 	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent may, at its
discretion, (in the name of the Chargor or otherwise and without any further consent or
authority from the Chargor):
	 
	(a)	 	exercise (or refrain from exercising) any voting rights in respect of the Charged
Portfolio;
	 
	(b)	 	apply all dividends, interest and other monies arising from the Charged Portfolio in
accordance with Clause 14 (Application of Proceeds);
	 
	(c)	 	transfer the Charged Portfolio into the name of the Collateral Agent or such
nominee(s) of the Collateral Agent as it shall require; and
	 
	(d)	 	exercise (or refrain from exercising) the powers and rights conferred on or
exercisable by the legal or beneficial owner of the Charged Portfolio, including the right, in
relation to SIG Combibloc Limited, to concur or participate in:

	 	(i)	 	the reconstruction, amalgamation, sale or other disposal of such
company or any of its assets or undertaking (including the exchange,
conversion or reissue of any shares or securities as a consequence thereof),

	 	(ii)	 	the release, modification or variation of any rights or liabilities
attaching to such shares or securities, and

	 	(iii)	 	the exercise, renunciation or assignment of any right to subscribe
for any shares or securities,

5

 

	 	 	in each case in the manner and on the terms the Collateral Agent thinks fit, and the
proceeds of any such action shall form part of the Charged Portfolio.
	 
	5.	 	CHARGOR’S REPRESENTATION AND UNDERTAKINGS 
	 
	5.1	 	Undertakings
	 
	(a)	 	Disposals and Negative pledge

Unless permitted by this Agreement or the Principal Finance Documents, the Chargor
shall not enter into a single transaction or a series of transactions (whether
related or not) and whether voluntarily or involuntarily, to sell, lease, transfer
or otherwise dispose of the whole or any part of the Charged Portfolio and will not
create or permit to subsist any security interest on any part of the Charged
Portfolio or otherwise deal with any part of the Charged Portfolio, in each case
without the consent of the Collateral Agent (acting on the instructions of the
Applicable Representative).

	(b)	 	Calls on Shares

The Chargor undertakes to pay all calls or other payments when due in respect of
any part of the Charged Portfolio. If the Chargor fails to make any such payment
(of which the Collateral Agent has actual knowledge) the Collateral Agent may (but
shall not be obliged to) make that payment on behalf of the Chargor and any sums so
paid by the Collateral Agent shall be reimbursed by the Chargor promptly following
demand together with interest on those sums. Such interest shall be calculated
from the date of payment by the Collateral Agent until reimbursed (after, as well
as before, judgment) in accordance with Clause 13.2 (Interest on Demands), provided
that the Collateral Agent shall not be required to make any such payment on behalf of the Chargor unless and until
it shall have been (a) instructed to do so by the Applicable Representative and (b)
indemnified and/or secured and/or pre-funded to its satisfaction.

	5.2	 	Representation
	 
	(a)	 	Establishments

The Chargor represents it has not registered any “establishments” (as that term is
defined in Part 1 of The Overseas Companies Regulations 2009) with the Registrar of
Companies or, if it has so registered, it has provided to the Collateral Agent
sufficient details to enable an accurate search against it to be undertaken by the
Secured Parties at the Companies Registry.

	6.	 	FURTHER ASSURANCE
	 
	6.1	 	Covenant for Further Assurance
	 
	 	 	Subject to the Agreed Security Principles, the Chargor will promptly at its own cost do
all such acts or execute all such documents (including assignments, transfers, mortgages,
charges, notices and instructions) as the Collateral Agent may reasonably specify (and in
such form as the Collateral Agent may reasonably require in favour of the Collateral Agent
or its nominee(s) or Delegate) for the purposes of (a) exercising

6

 

	 	 	the Collateral Rights or
perfecting the Lien created or intended to be created in respect of the Charged Portfolio
(which may include the execution by the Chargor of a mortgage, charge or assignment over all
or any of the assets constituting, or intended to constitute, the Charged Portfolio) or for
the exercise of the rights, powers and remedies of the Collateral Agent provided by or
pursuant to this Agreement or by law; and/or (b) to facilitate the realisation of the
Charged Portfolio in each case in accordance with the rights vested in it under this
Agreement.
	 
	6.2	 	Prescribed Wording
	 
	 	 	The following covenants shall be implied in respect of any action taken by the Chargor
to comply with its obligations under Clause 6.1 (Covenant for Further Assurance):
	 
	(a)	 	the Chargor has the right to take such action in respect of the Charged Portfolio; and
	 
	(b)	 	the Chargor will at its own cost do all that it reasonably can to give the Collateral
Agent or its nominee or Delegate the title and/or rights that it purports to give.
	 
	7.	 	POWER OF ATTORNEY
	 
	7.1	 	Appointment and powers
	 
	 	 	The Chargor by way of security irrevocably appoints the Collateral Agent and any
Receiver severally to be its attorney and in its name, on its behalf and as its act and deed
to execute, deliver and perfect all documents and do all things which the attorney may
consider to be required or desirable for:
	 
	(a)	 	carrying out any obligation imposed on the Chargor by this Agreement or any other
agreement binding on the Chargor to which the Collateral Agent is a party (including the
execution and delivery of any deeds, charges, assignments or other security and any transfers
of the Charged Portfolio);
	 
	(b)	 	enabling the Collateral Agent 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 Agreement or by law,
	 
	 	 	provided always that the Collateral Agent may only be entitled to exercise the powers
conferred upon it by the Chargor under this Clause 7.1 if:

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

provided further that the Collateral Agent shall not be obliged to exercise the powers
conferred upon it by the Chargor under this Clause 7.1 unless and until it shall have

7

 

	 	 	been
(a) instructed to do so by the Applicable Representative and (b) indemnified and/or secured
and/or prefunded to its satisfaction.
	 
	7.2	 	Ratification
	 
	 	 	The Chargor shall ratify and confirm all things done and all documents executed by any
attorney in the exercise or purported exercise of all or any of his powers.
	 
	8.	 	SECURITY ENFORCEMENT
	 
	8.1	 	Time for Enforcement
	 
	 	 	If an Enforcement Event has occurred and is continuing or if a petition or application
is presented for the making of an administration order in relation to the Chargor or if any
person who is entitled to do so gives written notice of its intention to appoint an
administrator of the Chargor or files such a notice with the court or is requested to do so
by the Chargor, save to the extent that such petition, application, notice or filing is not
made by a member of the Group or any director of any member of the Group and is frivolous or
vexatious and is stayed, dismissed or withdrawn within 4 Business Days of such petition,
application, notice or filing being made the security created by or pursuant to this
Agreement is immediately enforceable and the Collateral Agent may, without notice to the
Chargor or prior authorisation from any court, in its absolute discretion or shall, if so
instructed by the Applicable Representative:
	 
	(a)	 	secure and perfect its title to all or any part of the Charged Portfolio (including
transferring the Charged Portfolio into the name of the Collateral Agent or its nominees);
	 
	(b)	 	enforce all or any part of the Lien created by this Agreement (at the times, in the
manner and on the terms it thinks fit) and take possession of and hold, sell, or otherwise
dispose of all or any part of the Charged Portfolio (at the time, in the manner and on the
terms it thinks fit); and
	 
	(c)	 	whether or not it has appointed a Receiver, exercise all or any of the powers,
authorisations and discretions conferred by the Law of Property Act 1925 (as varied or
extended by this Agreement) on chargees and by this Agreement on any Receiver or otherwise
conferred by law on chargees or Receivers.
	 
	8.2	 	Power of sale
	 
	(a)	 	The power of sale or other disposal conferred on the Collateral Agent and on the
Receiver by this Agreement shall operate as a variation and extension of the statutory power
of sale under Section 101 of the Law of Property Act 1925 and such power shall arise (and the
Secured Liabilities shall be deemed due and payable for that purpose) on execution of this
Agreement.
	 
	(b)	 	The restrictions contained in Sections 93 and 103 of the Law of Property Act 1925
shall not apply to this Agreement or to the exercise by the Collateral Agent of its right to
consolidate all or any of the Lien created by or pursuant to this Agreement with any other
security in existence at any time or to its power of sale which powers may be exercised by the
Collateral Agent without notice to the Chargor if an Enforcement Event has occurred and is
continuing.

8

 

	8.3	 	Chargee’s liability
	 
	 	 	Neither the Collateral Agent nor any Receiver will be liable to account as mortgagee or
mortgagee in possession in respect of the Charged Portfolio or be liable for any loss upon
realisation or for any neglect, default or omission of any nature whatsoever in connection
with the Charged Portfolio for which a mortgagee or mortgagee in possession might as such be
liable.
	 
	8.4	 	Right of Appropriation
	 
	 	 	To the extent that any of the Charged Portfolio constitutes “financial collateral” and
this Agreement and the obligations of the 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
Collateral Agent shall have the right if an Enforcement Event has occurred and is continuing
to appropriate all or any part of such financial collateral in or towards discharge of the
Secured Liabilities. For this purpose, the parties agree that the value of such financial
collateral so appropriated shall be the market price of the Shares determined by the
Collateral Agent by reference to a public index or by such other process as the Collateral
Agent may select, including independent valuation. The parties agree that the method of
valuation provided for in this Agreement shall constitute a commercially reasonable method
of valuation for the purposes of the Regulations.
	 
	8.5	 	Statutory powers
	 
	 	 	The powers conferred by this Agreement on the Collateral Agent are in addition to and
not in substitution for the powers conferred on mortgagees and mortgagees in possession
under the Law of Property Act 1925, the Insolvency Act 1986 or otherwise by law and in the
case of any conflict between the powers contained in any such Act and those conferred by
this Agreement the terms of this Agreement will prevail.
	 
	9.	 	LIMITATIONS ON ENFORCEMENT
	 
	9.1	 	The Collateral Agent shall be entitled to apply proceeds of an enforcement of the Charge
towards satisfaction of the Secured Liabilities without limitation in respect of:
	 
	(a)	 	all and any amounts which are owed under the Loan Documents by the Chargor itself, the
Company or by any of their subsidiaries; and
	 
	(b)	 	all and any amounts which correspond to funds that have been borrowed or otherwise
raised under the Credit Documents, in each case to the extent borrowed, on-lent or otherwise
passed on to, or issued for the benefit of, the Chargor, the Company or any of their
subsidiaries, or for the benefit of any of their creditors and in each case not repaid and
outstanding from time to time
	 
	 	 	(in aggregate, the “Unlimited Enforcement Amount”).
	 
	9.2	 	Besides an application of proceeds from an enforcement of the Charge towards
satisfaction of the Secured Liabilities in respect of the Unlimited Enforcement Amount
pursuant to Clause 9.1 above, the Collateral Agent shall not be entitled to apply proceeds of
an enforcement of the Charge towards satisfaction of the Secured

9

 

	 	 	Liabilities but shall return
to the Chargor proceeds of an enforcement of the Charge if and to the extent that:
	 
	(a)	 	the Charge secure the obligations of a Grantor which is (x) a shareholder of the
Chargor or (y) an affiliated company (verbundenes Unternehmen) within the meaning of section
15 of the German Stock Corporation Act (Aktiengesetz) of a shareholder of the Chargor (other
than the Chargor and its subsidiaries); and
	 
	(b)	 	the application of proceeds of an enforcement of the Charge towards the Secured
Liabilities would have the effect of (x) reducing the Chargor’s net assets (Reinvermögen) (the
“Net Assets”) to an amount of less than its stated share capital (Stammkapital) or, if the Net
Assets are already an amount of less than its stated share capital, of causing such amount to
be further reduced and (y) would thereby affect the assets required for the obligatory
preservation of the Chargor’s stated share capital (Stammkapital) according to section 30, 31
German Limited Liability Companies Act (Gesetz betreffend die Gesellschaften mit beschränkter
Haftung) provided that the amount of the stated share capital to be taken into consideration
shall be the amount registered in the commercial register at the date hereof, and any increase
of the stated share capital registered after the date of this Agreement shall only be taken
into account if such increase has been effected with the prior written consent of the
Collateral Agent (acting on the instructions of the Applicable Representative).
	 
	9.3	 	The Net Assets shall be calculated as an amount equal to the sum of the values of the
Chargor’s assets (consisting of all assets which correspond to the items set forth in section
266 sub-section(2) A, B and C of the German Commercial Code (Handelsgesetzbuch) less the
aggregate amount of the Chargor’s liabilities (consisting of all liabilities and liability
reserves which correspond to the items set forth in section 266 sub-section (3) B, C and D of
the German Commercial Code), save that:
	 
	(a)	 	any asset that is shown in the balance sheet with a book value (Buchwert) that is
significantly lower than the market value of such asset and that is not necessary for the
Chargor’s business (nicht betriebsnotwendig) shall be taken into account with its market
value;
	 
	(b)	 	obligations under loans provided to the Chargor by any member of the Group or any
other affiliated company shall not be taken into account as liabilities as far as such loans
are subordinated by law or by contract at least to the claims of the unsubordinated creditors
of the Chargor; and
	 
	(c)	 	obligations under loans or other contractual liabilities incurred by the Chargor in
violation of the provisions of the Loan Documents shall not be taken into account as
liabilities.
	 
	 	 	The Net Assets shall be determined in accordance with the generally accepted accounting
principles applicable from time to time in Germany (Grundsätze ordnungsmäßiger Buchführung)
and be based on the same principles that were applied by the Chargor in the preparation of
its most recent annual balance sheet (Jahresbilanz).

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	 	 	It being understood that the assets of the Chargor will be assessed at liquidation values
(Liquidationswerte) if the managing directors of the Chargor, at the time they prepare the
Management Determination (as defined below) are, due to factual or legal circumstances at
that time, in their opinion not able to make a positive prognosis as
to whether the business of the Chargor can carry on as a going concern (positive
Fortführungsprognose), in particular when the Charge is enforced.

	9.4	 	The limitations set out in Clause 9.2 above shall only apply if and to the extent
that:
	 
	(a)	 	without undue delay, but not later than within 5 business days, after receipt of a
notification by the Collateral Agent of its intention to enforce any of the Charge (the
“Notice”), the Chargor has confirmed in writing to the Collateral Agent (x) to what extent
such Charge is up-stream or cross-stream security as described in Clause 9.2 above and (y)
which amount of proceeds of an enforcement of the Charge attributable to the enforcement of
such up-stream or cross-stream security cannot be applied towards satisfaction of the Secured
Liabilities but would have to be returned to the Chargor as it would otherwise cause the Net
Assets of the Chargor to fall below its stated share capital (taking into account the
adjustments set out in Clause 9.3 above) and such confirmation is supported by evidence
reasonably satisfactory to the Collateral Agent (the “Management Determination”) and the
Collateral Agent has not contested this and argued that no or a lesser amount would be
necessary to maintain the Chargor’s stated share capital; or
	 
	(b)	 	within 20 business days from the date the Collateral Agent (acting on the instructions
of the Applicable Representative) has contested the Management Determination, the Collateral
Agent receives from the Chargor an up to date balance sheet prepared by a firm of auditors of
international standard and reputation (the “Determining Auditors”) which shows the value of
the Chargor’s Net Assets (the “Balance Sheet”). The Balance Sheet shall be prepared in
accordance with the principles set out in Clause 9.3 above, provided that the final sentence
of Clause 9.3 above shall not apply unless the Determining Auditors have in an independent
assessment determined that the assets of the Chargor should be evaluated at liquidation values
(Liquidationswerte) in accordance with the generally accepted accounting principles applicable
from time to time in Germany (Grundsätze ordnungsmäßiger Buchführung) and shall contain
further information (in reasonable detail) relating to items to be adjusted pursuant to Clause
9.3 above. If the Chargor fails to deliver a Balance Sheet within the aforementioned time
period, the Collateral Agent shall be entitled to apply the proceeds of an enforcement of the
Charge towards satisfaction of the Secured Liabilities irrespective of the limitations set out
in Clause 9.2 above.
	 
	9.5	 	If the Collateral Agent (acting on the instructions of the Applicable
Representative) disagrees with the Balance Sheet it shall be entitled to apply proceeds
of an enforcement of the Charge in satisfaction of the Secured Liabilities up to an amount
which, according to the Balance Sheet, can be applied in satisfaction of the Secured
Liabilities in compliance with the limitations set out in Clause 9.2 above. In relation to any
additional amounts for which the Chargor is liable under this Agreement, the Collateral Agent
shall be entitled to further pursue its claims (if any) and the Chargor shall be entitled to
prove that this amount is necessary for maintaining its stated share

11

 

	 	 	capital (calculated as of
the date the Collateral Agent has given notice that it intends to enforce the security created
under this Agreement).
	 
	9.6	 	No reduction of the amount enforceable or applicable towards satisfaction of the
Secured Liabilities under this Clause 9 will prejudice the right of the Collateral Agent to
continue enforcing the Charge (subject always to the operation of the limitations set out
above at the time of such enforcement) until full satisfaction to the claims secured.
	 
	10.	 	RECEIVERS AND ADMINISTRATORS
	 
	10.1	 	Appointment and removal
	 
	 	 	At any time after having been requested to do so by the Chargor or if the security
created by this Agreement is enforceable in accordance with Clause 8 (Security Enforcement),
the Collateral Agent may by deed or otherwise (acting through an authorised officer of the
Collateral Agent), without prior notice to the Chargor:
	 
	(a)	 	appoint one or more persons to be a Receiver of the whole or any part of the Charged
Portfolio;
	 
	(b)	 	remove (so far as it is lawfully able) any Receiver so appointed;
	 
	(c)	 	appoint another person(s) as an additional or replacement Receiver(s); and
	 
	(d)	 	appoint one or more persons to be an administrator of the Chargor.
	 
	10.2	 	Capacity of Receivers
	 
	 	 	Each person appointed to be a Receiver pursuant to Clause 10.1 (Appointment and
removal) will be:
	 
	(a)	 	entitled to act individually or together with any other person appointed or
substituted as Receiver;
	 
	(b)	 	for all purposes shall be deemed to be the agent of the Chargor which shall be solely
responsible for his acts, defaults and liabilities and for the payment of his remuneration and
no Receiver shall at any time act as agent for the Collateral Agent; and
	 
	(c)	 	entitled to remuneration for his services at a rate to be fixed by the Collateral
Agent from time to time (without being limited to the maximum rate specified by the Law of
Property Act 1925).
	 
	10.3	 	Statutory powers of appointment
	 
	 	 	The powers of appointment of a Receiver shall be in addition to all statutory and other
powers of appointment of the Collateral Agent under the Law of Property Act 1925 (as
extended by this Agreement) or otherwise and such powers shall remain exercisable from time
to time by the Collateral Agent in respect of any part of the Charged Portfolio.
	 
	10.4	 	Powers of Receivers
	 
	 	 	Every Receiver shall (subject to any restrictions in the instrument appointing him but
notwithstanding any winding-up or dissolution of the Chargor) have and be entitled to
exercise, in relation to the Charged Portfolio in respect of which he was appointed, and

12

 

	 	 	as
varied and extended by the provisions of this Agreement (in the name of or on behalf of the
Chargor or in his own name and, in each case, at the cost of the Chargor):
	 
	(a)	 	all the powers conferred by the Law of Property Act 1925 on mortgagors and on
mortgagees in possession and on receivers appointed under that Act;
	 
	(b)	 	all the powers of an administrative receiver set out in Schedule 1 to the Insolvency
Act 1986 (whether or not the Receiver is an administrative receiver);
	 
	(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;
	 
	(d)	 	the power to delegate (either generally or specifically) the powers, authorities and
discretions conferred on it by this Agreement or any of the Principal Finance Documents
(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 Receiver itself; and
	 
	(e)	 	the power to do all things (including bringing or defending proceedings in the name or
on behalf of the Chargor) which seem to the Receiver to be incidental or conducive to:

	 	(i)	 	any of the functions, powers, authorities or discretions conferred on
or vested in him;

	 	(ii)	 	the exercise of any rights, powers and remedies of the Collateral
Agent provided by or pursuant to this Agreement or by law (including
realisation of all or any part of the Charged Portfolio); or

	 	(iii)	 	bringing to his hands any assets of the Chargor forming part of, or
which when got in would be, Charged Portfolio.

	10.5	 	Consideration
	 
	 	 	The receipt of the Collateral Agent or any Receiver shall be a conclusive discharge to
a purchaser and, in making any sale or disposal of any of the Charged Portfolio or making
any acquisition, the Collateral Agent or any Receiver may do so for such consideration, in
such manner and on such terms as it thinks fit.
	 
	10.6	 	Protection of purchasers
	 
	 	 	No purchaser or other person dealing with the Collateral Agent or any Receiver shall be
bound to inquire whether the right of the Collateral Agent or such Receiver to exercise any
of its powers has arisen or become exercisable or be concerned with any propriety or
regularity on the part of the Collateral Agent or such Receiver in such dealings.

13

 

	10.7	 	Discretions
	 
	 	 	Any liberty or power which may be exercised or any determination which may be made
under this Agreement by the Collateral Agent or any Receiver may, subject to the terms and
conditions of the Intercreditor Arrangements and to any requirement of reasonableness
required under this Agreement, be exercised or made in its absolute and unfettered
discretion without any obligation to give reasons.
	 
	11.	 	EFFECTIVENESS OF COLLATERAL
	 
	11.1	 	Collateral Cumulative
	 
	 	 	The collateral constituted by this Agreement and the Collateral Rights shall be
cumulative, in addition to and independent of every other security which the Collateral
Agent or any other Secured Party may at any time hold for the Secured Liabilities or any
rights, powers and remedies provided by law. No prior security held by the Collateral Agent
or any other Secured Party over the whole or any part of the Charged Portfolio shall merge
into the collateral constituted by this Agreement.
	 
	11.2	 	No Waiver
	 
	 	 	No failure to exercise, nor any delay in exercising, on the part of the Collateral
Agent, any right, power or remedy of the Collateral Agent provided by this Agreement or by
law shall operate as a waiver, nor shall any single or partial exercise of that right, power
or remedy prevent any further or other exercise of that or any other right, power or remedy
of the Collateral Agent provided by this Agreement or by law.
	 
	11.3	 	Illegality, Invalidity, Unenforceability
	 
	 	 	If, at any time, any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions of this Agreement nor the legality,
validity or enforceability of such provision under the law of any other jurisdiction will in
any way be affected or impaired and if any part of the security intended to be created by or pursuant to this Agreement is invalid, unenforceable or
ineffective for any reason, that shall not affect or impair any other part of the security.
	 
	11.4	 	No liability
	 
	 	 	None of the Collateral Agent, its nominee(s) or any receiver or Delegate appointed
pursuant to this Agreement shall be liable by reason of (a) taking any action permitted by
this Agreement or (b) any neglect or default in connection with the Charged Portfolio or (c)
the taking possession or realisation of all or any part of the Charged Portfolio, except to
the extent provided in the Principal Finance Documents.
	 
	11.5	 	Implied Covenants for Title
	 
	(a)	 	The covenants set out in Sections 3(1), 3(2) and 6(2) of the Law of Property
(Miscellaneous Provisions) Act 1994 will not extend to Clause 2.3 (Charge).
	 
	(b)	 	It shall be implied in respect of Clause 2.3 (Charge) that the Chargor is charging the
Charged Portfolio free from all charges and encumbrances (whether monetary or not) and from
all other rights exercisable by third parties (including liabilities imposed and rights
conferred by or under any enactment).

14

 

	11.6	 	Continuing Lien
	 
	(a)	 	The Lien from time to time constituted by this Agreement is a continuing security and
will remain in full force and effect as a continuing security until released or discharged by
the Collateral Agent.
	 
	(b)	 	No part of the security from time to time constituted by this Agreement will be
considered satisfied or discharged by any intermediate payment, discharge or satisfaction of
the whole or any part of the Secured Liabilities.
	 
	11.7	 	Immediate recourse
	 
	 	 	The Chargor waives any right it may have of first requiring the Collateral Agent or a
Secured Party to proceed against or enforce any other rights or Lien or claim payment from
any person before claiming from the Chargor under this Agreement. This waiver applies
irrespective of any law or any provision of this Agreement to the contrary.
	 
	11.8	 	Avoidance of Payments
	 
	 	 	Notwithstanding Clause 3.3 (Release) if the Collateral Agent considers that any amount
paid or credited to it is capable of being avoided or reduced by virtue of any bankruptcy,
insolvency, liquidation or similar laws the liability of the Chargor under this Agreement
and the security constituted by this Agreement shall continue and that amount shall not be
considered to have been irrevocably paid.
	 
	11.9	 	Waiver of defences
	 
	 	 	The obligations of the Chargor under this Agreement and the Collateral Rights will not
be affected by any act, omission, matter or thing which, but for this Clause 11.9 (Waiver of
defences), would reduce, release or prejudice any of its obligations under this Agreement
and this Lien and whether or not known to the Chargor or the Collateral Agent or any Secured
Party including:
	 
	(a)	 	any time, waiver or consent granted to, or composition with, any Loan Party or other
person;
	 
	(b)	 	the release of any other Loan Party or any other person under the terms of any
composition or arrangement with any creditor of any Loan Party;
	 
	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal or
neglect to perfect, take up or enforce, any rights against, or Lien over assets of, any
Loan Party or other person or any non-presentment or non-observance of any formality or
other requirement in respect of any instruments or any failure to realise the full value
of any other Lien;
	 
	(d)	 	any incapacity or lack of powers, authority or legal personality of or dissolution or
change in the members or status of, any Loan Party or any other person;
	 
	(e)	 	any amendment, novation, supplement, extension (whether of maturity or otherwise) or
restatement (in each case however fundamental and of whatsoever nature, and whether or not
more onerous) or replacement of Loan Document or any document or security or of the Secured
Liabilities;

15

 

	(f)	 	any unenforceability, illegality or invalidity of any obligation of any person under
any Loan Document or any other document or security or of the Secured Liabilities; or
	 
	(g)	 	any insolvency or similar proceedings.
	 
	12.	 	DELEGATION
	 
	 	 	Subject to Section 4.05 of the First Lien Intercreditor Agreement (to the extent
permitted by English law), each of the Collateral Agent and any Receiver shall have full
power to delegate (either generally or specifically) the powers, authorities and discretions
conferred on it by this Agreement (including the power of attorney) on such terms and
conditions as it shall see fit which delegation shall not preclude either the subsequent
exercise, any subsequent delegation or any revocation of such power, authority or discretion
by the Collateral Agent or the Receiver itself.
	 
	13.	 	INDEMNITY AND INTEREST
	 
	13.1	 	Indemnity
	 
	 	 	To the extent set out in Section 4.11 of the First Lien Intercreditor Agreement, the
Chargor shall, notwithstanding any release or discharge of all or any part of the security,
indemnify the Collateral Agent, its agents, attorneys, any Delegate and any Receiver against
any action, proceeding, claims, losses, liabilities, expenses, demands, taxes, and costs
which it may sustain as a consequence of any breach by the Chargor of the provisions of this
Agreement, the exercise or purported exercise of any of the rights and powers conferred on
them by this Agreement or otherwise relating to the Charged Portfolio.
	 
	13.2	 	Interest on Demands
	 
	 	 	Section 2.07 (Default Interest) of the Credit Agreement applies to amounts which the
Chargor fails to pay under this Agreement.
	 
	13.3	 	Payments Free Of Deduction
	 
	 	 	Section 2.20 (Taxes) of the Credit Agreement applies to this Agreement, save that, for
the purposes of this Agreement only, the references in Section 2.20 (Taxes) of the Credit
Agreement to “a Loan Party”, “that Loan Party” and “Each Loan Party” shall be replaced with
“the Chargor”.
	 
	14.	 	APPLICATION OF PROCEEDS
	 
	 	 	All moneys received or recovered by the Collateral Agent or any Receiver pursuant to
this Agreement or the powers conferred by it shall (subject to the claims of any person
having prior rights thereto and by way of variation of the provisions of the Law of
Property Act 1925) be applied in accordance with Section 2.01 of the First Lien
Intercreditor Agreement.

16

 

	15.	 	OTHER LIEN
	 
	15.1	 	Redemption or transfer
	 
	 	 	In the event of any action, proceeding or step being taken to exercise any powers or
remedies conferred by any prior ranking Lien in case of exercise by the Collateral Agent or
any Receiver or any Delegate of any power of sale under this Agreement the Collateral Agent
may redeem such prior Lien or procure the transfer thereof to itself.
	 
	15.2	 	Accounts
	 
	 	 	The Collateral Agent may settle and pass the accounts of the prior Lien and any accounts so
settled and passed will be conclusive and binding on the Chargor.
	 
	15.3	 	Costs of redemption or transfer
	 
	 	 	All principal monies, interest, costs, charges and expenses of and incidental to any
redemption or transfer will be paid by the Chargor to the Collateral Agent on demand
together with accrued interest thereon as well as before judgment at the rate from time to
time applicable to unpaid sums specified in the Credit Agreement from the time or respective
times of the same having been paid or incurred until payment thereof (after as well as
before judgment).
	 
	15.4	 	Subsequent Interests
	 
	 	 	If the Collateral Agent (acting in its capacity as security trustee or otherwise) or
any of the Secured Parties at any time receives notice or is deemed to have received notice
of any subsequent Lien affecting all or any part of the Charged Portfolio or any assignment
or transfer of the Charged Portfolio which in either case is prohibited by the terms of this
Agreement or the Principal Finance Documents, all payments made by the Chargor to the
Collateral Agent or any of the Secured Parties after that time shall be treated as having
been credited to a new account of the Chargor and not as having been applied in reduction of
the Secured Liabilities as at the time when the Collateral Agent received notice.
	 
	16.	 	SUSPENSE ACCOUNTS AND CURRENCY INDEMNITY
	 
	16.1	 	Suspense Accounts
	 
	 	 	All monies received, recovered or realised by the Collateral Agent under this Agreement
(including the proceeds of any conversion of currency) may in the discretion of the
Collateral Agent be credited to any interest bearing suspense or impersonal account
maintained with the Collateral Agent or any bank, building society or financial institution
as it considers appropriate and may be held in such account for so long as the Collateral
Agent may think fit (acting on the instructions of the Applicable Representative) pending
their application from time to time (as the Collateral Agent is entitled to do in its
discretion) in or towards the discharge of any of the Secured Liabilities and save as
provided herein no party will be entitled to withdraw any amount at any time standing to the
credit of any suspense or impersonal account referred to above.

17

 

	16.2	 	Currency Indemnity
	 
	(a)	 	The Secured Liabilities shall be paid in the currency in which it is denominated at
the relevant time, unless the Loan Documents provides otherwise.
	 
	(b)	 	If any Secured Liabilities is received from the Chargor in a currency (“first
currency”) other than the currency (“second currency”) in which it is payable
(whether as a result of obtaining or enforcing an order or judgment, the dissolution of
any person or otherwise), the amount received shall only satisfy the Chargor’s obligation
to pay its Secured Liabilities to the extent of the amount in the second currency which
the relevant Secured Party is able, in accordance with its usual practice, to purchase
with the amount received in the first currency on the date of that receipt (or, if it is
not possible to make that purchase on that date, on the first date upon which it is
possible to do so).
	 
	(c)	 	Subject to Section 9.05 of the Credit Agreement and the terms of the Principal Finance
Documents, the Chargor indemnifies each Secured Party against:

	 	(i)	 	any loss sustained by it as a result of the amount purchased by it in
the second currency pursuant to 16.2(b) above being less than the amount due;
and

	 	(ii)	 	all costs and expenses properly incurred by it in purchasing the
second currency,

in respect of any Secured Liabilities received from the Chargor.

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

	17.	 	ASSIGNMENT
	 
	17.1	 	Permitted Successors
	 
	 	 	The Collateral Agent may assign and transfer all or any of its rights and obligations
under this Agreement to facilitate the performance of its role as Collateral Agent under the
Loan Documents in accordance with the Intercreditor Arrangements. This Agreement shall be
binding upon and shall inure to the benefit of each party and its direct or subsequent legal
successors, permitted transferees and assigns.
	 
	17.2	 	Collateral Agent Successors
	 
	 	 	This Agreement shall remain in effect despite any amalgamation or merger (however
effected) relating to the Collateral Agent; and references to the Collateral Agent shall
include any assignee or successor in title of the Collateral Agent and any person who, under
the laws of its jurisdiction of incorporation or domicile, has assumed the rights and
obligations of the Collateral Agent under this Agreement or to which, under such laws, those
rights and obligations have been transferred.
	 
	17.3	 	Disclosure
	 
	 	 	Subject to Section 9.16 of the Credit Agreement and the terms of the Principal Finance
Documents, the Collateral Agent shall be entitled to disclose such information concerning
the Chargor or any other person and this Agreement as the Collateral Agent

18

 

	 	 	considers
appropriate to any actual or proposed direct or indirect successor or to any person to whom
information may be required to be disclosed by applicable law.
	 
	18.	 	WAIVERS AND COUNTERPARTS
	 
	18.1	 	Waivers
	 
	 	 	No waiver by the Collateral Agent of any of its rights under this Agreement shall be
effective unless given in writing.
	 
	18.2	 	Counterparts
	 
	 	 	This Agreement 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 this Agreement.
	 
	19.	 	LAW
	 
	 	 	This Agreement and any non-contractual obligations arising out of or in connection with
it are governed by English law.
	 
	20.	 	ENFORCEMENT
	 
	20.1	 	Jurisdiction of English Courts
	 
	(a)	 	The courts of England have exclusive jurisdiction to settle any dispute (a “Dispute”)
arising out of or in connection with this Agreement (including a dispute regarding the
existence, validity or termination of this Agreement or the consequences of its nullity) or
any non-contractual obligations arising out of or in connection with this Agreement.
	 
	(b)	 	The parties agree that the courts of England are the most appropriate and convenient
courts to settle Disputes and accordingly no party will argue to the contrary.
	 
	(c)	 	This Clause 20 (Enforcement) is for the benefit of the Collateral Agent only. As a
result and notwithstanding Clause 20.1(a), it does not prevent the Collateral Agent from
taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent
allowed by law, the Collateral Agent may take concurrent proceedings in any number of
jurisdictions.
	 
	20.2	 	Service of process
	 
	 	 	Without prejudice to any other mode of service allowed under any relevant law, the
Chargor:
	 
	(a)	 	irrevocably appoints Law Debenture Corporate Services Limited as its agent for service
of process in relation to any proceedings before the English courts in connection with this
Agreement; and
	 
	(b)	 	agrees that failure by an agent for service of process to notify the Chargor of the
process will not invalidate the proceedings concerned.

THIS AGREEMENT has been signed on behalf of the Collateral Agent and executed as a deed by the
Chargor and is delivered by it on the date specified above.

19

 

EXECUTION PAGE FOR

SIG COMBIBLOC HOLDING GMBH SECURITY OVER SHARES AGREEMENT

	 	 	 	 	 	 	 

	Chargor
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signed as a deed by Stephen Pardy

	 	 	)	 	 	/s/ Stephen Pardy
	As Authorised Signatory

	 	 	)	 	 	 
	for

	 	 	)	 	 	 
	SIG Combibloc Holding GmbH

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	In the presence of
	 	 	 	 	 	 
	          /s/ Philip West
	 	 	 	 	 	 
	          Philip West
	 	 	 	 	 	 

20

 

	 	 	 	 	 	 	 

	The Collateral Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	THE BANK OF NEW YORK MELLON

	 	 	)	 	 	 
	 

	 	 	)	 	 	 

	 	 	 	 	 
	 	 
	By:  	   /s/ Catherine F. Donohue
 	 
	 	Name:  	Catherine F. Donohue 	 
	 	Address:  Vice President

Fax:

Attention: 	 
	 

101 Barclay Street, Floor 4E

New York, NY 10286

USA

Attention: Global Corporate Trust

212-815-5366

21exv4w222

EXHIBIT 4.222

The taking of this Agreement 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 Credit
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 Credit 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 Credit Document in Austria or sending any e-mail
communication to which a pdf scan of this Agreement is attached to an Austrian addressee or sending
any e-mail communication carrying an electronic or digital signature which refers to any Credit
Document to an Austrian addressee.

Confirmation Agreement

between

1. SIG Austria Holding GmbH

as pledgor

and

2. SIG Combibloc GmbH

as pledgor

and

3. SIG Combibloc GmbH & Co KG

as pledgor

and

4. Wilmington Trust (London) Limited

as pledgee and Collateral Agent

 

 

Contents

	 	 	 	 	 

	1. Definitions
	 	 	3	 
	2. Construction
	 	 	5	 
	3. Confirmation
	 	 	6	 
	4. Representations and Warranties
	 	 	7	 
	5. Notices
	 	 	7	 
	6. Execution in Counterparts
	 	 	7	 
	7. Stamp duty
	 	 	7	 
	8. Miscellaneous
	 	 	8	 
	9. Capital maintenance
	 	 	8	 
	10. Choice of Law
	 	 	9	 
	11. Settlement of disputes
	 	 	9	 

Schedules

Schedule 1

- 2 -

 

Recitals

A. Under the Security Documents (as defined below), each Confirming Party (as defined below)
granted a pledge over certain of its property as a security for the Secured Obligations (as defined
in each Security Document), in connection with the Credit Agreement (as defined below).

B. The Confirming Parties and the Collateral Agent (as defined below) are also, among others,
parties to the First Lien Intercreditor Agreement (as defined below).

C. The security granted by or pursuant to the Security Documents is administered by the Collateral
Agent for and on behalf of the Secured Parties (as defined in the First Lien Intercreditor
Agreement) pursuant to the relevant provisions of the First Lien Intercreditor Agreement.

D. Among others, Reynolds Group Holdings Inc. and the Administrative Agent (as defined in the First
Lien Intercreditor Agreement) have entered into the Assumption Agreement (as defined below), by
which additional incremental term loans were made to the Incremental Borrower (as defined therein)
for the purposes set out therein.

E. Pursuant to the indentures dated 15 October 2010, the Issuers (as defined therein) have issued
certain secured debt securities.

F. Each Confirming Party expects to realise, or has realised, direct or indirect benefits as a
result of the Assumption Agreement (as defined below) becoming effective and the consummation of
the transactions contemplated thereby.

1. Definitions

A term defined in the First Lien Intercreditor Agreement shall, unless otherwise defined in this
Agreement, have the same meaning when used in this Agreement or any notice given under or in
connection with this Agreement and in addition:

	 	 	 

	Agreement

	 	means this confirmation agreement, as may be
from time to time modified, amended or
supplemented.
	 
	 	 
	Assumption Agreement

	 	means the Amendment No. 3 and Incremental
Term Loan Assumption Agreement dated 30
September 2010 among (amongst others)
Reynolds Group Holdings Inc., the Lenders,
the New Incremental Term Lenders (as defined
therein) and the Administrative Agent,
relating to the Credit Agreement.
	 
	 	 
	Collateral Agent

	 	means Wilmington Trust (London) Limited, as
joint and several creditor for and on behalf
of itself and each of the Secured Parties on
the terms and conditions set out in the
First Lien Intercreditor Agreement. The term
“Collateral

- 3 -

 

	 	 	 

	 

	 	Agent” shall include any person
for the time being appointed as collateral
agent, or as an additional collateral agent,
for the purpose of, and in accordance with,
the First Lien Intercreditor Agreement and
shall include successors, transferees and
permitted assigns.
	 
	 	 
	Confirming Party

	 	means each of SIG Austria Holding GmbH, SIG
Combibloc GmbH and SIG Combibloc GmbH & Co
KG.
	 
	 	 
	Credit Agreement

	 	means a credit agreement dated as of 5
November 2009, among Reynolds Group Holdings
Inc., Reynolds Consumer Products Holdings
Inc., SIG Euro Holding AG & Co. KG aA,
Closure Systems International Holdings Inc.,
Closure Systems International B.V., Pactiv
Corporation 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
(including by Amendment No. 1 dated as of 21
January 2010, Amendment No. 2 and
Incremental Term Loan Assumption Agreement
dated as of 4 May 2010 and the Assumption
Agreement).
	 
	 	 
	First Lien Intercreditor
Agreement

	 	means the first lien intercreditor agreement
dated as of 5 November 2009 among (amongst
others) The Bank of New York Mellon as
collateral agent and as trustee under the
Senior Secured Note Indenture, Credit Suisse
AG (formerly known as Credit Suisse) as
administrative agent under the Credit
Agreement and the Loan Parties, as amended,
novated, supplemented, restated or modified
from time to time (including by the
Amendment No.1 and Joinder Agreement dated
as of 21 January 2010, which added the
Collateral Agent as a collateral agent under
the First Lien Intercreditor Agreement).
	 
	 	 
	Party

	 	means a party to this Agreement. The term
“Parties” means any of them.
	 
	 	 
	Senior Secured Notes
Indenture

	 	means the senior secured notes indenture
entered into, among others, between RGHL US
Escrow I Inc., RGHL US Escrow I LLC and RGHL
Escrow Issuer (Luxembourg) I S.A. as issuers
and The Bank of New York Mellon, London
Branch, as paying agent dated as of 15
October 2010, pursuant to which the issuers
initially issued debt securities in escrow,
the proceeds of which were released on 16
November 2010.
	 

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	SIG Austria Holding GmbH

	 	means SIG Austria Holding GmbH, a limited
liability company organised under the laws
of Austria with its seat in Saalfelden am
Steinernen Meer, Austria, and its business
address as at the date of this Agreement at
Industriestraße 3, 5760 Saalfelden, Austria,
registered in the Austrian companies
register (Firmenbuch) under file number FN
236071 p.
	 
	 	 
	SIG Combibloc GmbH

	 	means SIG Combibloc GmbH, a limited
liability company organised under the laws
of Austria with its seat in Saalfelden am
Steinernen Meer, Austria, and its business
address as at the date of this Agreement at
Industriestraße 3, 5760 Saalfelden, Austria,
registered in the Austrian companies
register (Firmenbuch) under file number FN
237985 d.
	 
	 	 
	SIG Combibloc GmbH & Co KG

	 	means SIG Combibloc GmbH & Co KG, a limited
partnership organised under the laws of
Austria with its seat in Saalfelden am
Steinernen Meer, Austria, and its business
address as at the date of this Agreement at
Industriestraße 3, 5760 Saalfelden, Austria,
registered in the Austrian companies
register (Firmenbuch) under file number FN
240335 i.
	 
	 	 
	Security Documents

	 	means the documents listed in Schedule 1.

2. Construction

2.1 In this Agreement, unless the context otherwise requires:

	(a)	 	the rules of interpretation contained in the First Lien Intercreditor Agreement apply to the
construction of this Agreement and any notice given under or in connection with this
Agreement;
	 
	(b)	 	unless otherwise stated, a “Clause” is a reference to a Clause of this Agreement;
	 
	(c)	 	unless otherwise stated, a “Schedule” is a reference to a Schedule of this Agreement and
references to this Agreement include its Schedules;
	 
	(d)	 	words importing the plural shall include the singular and vice versa;
	 
	(e)	 	a reference to (or to any specified provision of) any agreement, deed or other instrument
(for the avoidance of doubt including, but not limited to, such agreements, deeds or other
instruments which are entered into prior to or after the conclusion of this Agreement) is to
be construed as a reference to that agreement, deed or other

- 5 -

 

	 	 	instrument or that provision as from time to time amended, extended, restructured, renewed,
refunded, novated, supplemented, restated, replaced or modified; and

	(f)	 	this Agreement is subject to the terms of the First Lien Intercreditor Agreement and of any
other Intercreditor Arrangements (as defined in the Security Documents). In the event of a
conflict between the terms of this Agreement, the First Lien Intercreditor Agreement or any
other Intercreditor Arrangements, the terms of the First Lien Intercreditor Agreement or any
other Intercreditor Arrangements, as relevant, will prevail.

3. Confirmation

3.1 Each Confirming Party hereby:

	(a)	 	consents to the Assumption Agreement and the transactions contemplated thereby; and
	 
	(b)	 	agrees that, notwithstanding the effectiveness or otherwise of the Assumption Agreement and
the issuance of the Senior Secured Notes (as defined in the Senior Secured Notes Indenture),
each of the Security Documents to which it is a party continues, subject to the Legal
Reservations (as defined in the Credit Agreement) to be in full force and effect; and
	 
	(c)	 	confirms the pledges and security interests created by or pursuant to the Security Documents
to which it is a party and that such pledges and security interests are upheld and remain
unaffected; and
	 
	(d)	 	acknowledges that the pledges and security interests created by or pursuant to the Security
Documents to which it is a party continue in full force and effect subject to the Legal
Reservations (as defined in the Credit Agreement) and extend, subject to the limitations
therein, to (i) the New Incremental Term Loans (as defined in the Assumption Agreement), which
shall be considered “Credit Agreement Obligations” under the First Lien Intercreditor
Agreement, and (ii) the “Secured Obligations” as defined in the Senior Secured Notes
Indenture, which have been designated as “Additional Obligations” under and pursuant to the
First Lien Intercreditor Agreement.

3.2 Each Confirming Party further confirms and agrees that, with respect to the Security Documents
to which it is a party, the obligations under the New Incremental Term Loans (as defined in the
Assumption Agreement) and the Senior Secured Notes (as defined in the Senior Secured Notes
Indenture) constitute “Secured Obligations” under each Security Document to which it is a party.

3.3 Each of the Confirming Parties hereby agrees that each of the Parallel Debt of such Confirming
Party created under the First Lien Intercreditor Agreement or under any guarantor joinder to the
First Lien Intercreditor Agreement, in effect prior to the date hereof shall continue to be in full
force and effect and shall accrue to the benefit of the Collateral Agent (for the benefit of the
Secured Parties) and shall continue to apply, as applicable, in relation

- 6 -

 

to all Obligations define(in the First Lien Intercreditor Agreement following the effectiveness of
the Assumption Agreement.

3.4 For the avoidance of doubt, notwithstanding anything contained herein, this agreement is a
Security Document under the First Lien Intercreditor Agreement and each of the protections,
immunities, rights, indemnities and benefits conferred on the Collateral Agent under the Security
Documents and the First Lien Intercreditor Agreement, respectively, shall continue in full force
and effect and shall apply to this Agreement as if set out in full herein.

4. Representations and Warranties

4.1 Each Confirming Party hereby represents and warrants to the Collateral Agent as of the date
hereof that such Confirming Party (a) is duly organized and validly existing under the laws of
Austria and (b) has the power and authority to execute, deliver and perform its obligations under
this Agreement.

4.2 Each Confirming Party hereby represents and warrants to the Collateral Agent as of the date
hereof that the entry by such Confirming Party into this Agreement and the transactions
contemplated in the Assumption Agreement have been duly authorized by all requisite corporate
and/or partnership and, if required, stockholder and partner action.

4.3 Each Confirming Party hereby represents and warrants to the Collateral Agent as of the date
hereof that this Agreement has been duly executed and delivered by each such Confirming Party and,
subject to Legal Reservations (as defined in the Credit Agreement), constitutes a legal, valid and
binding obligation of such Confirming Party enforceable against such Confirming Party in accordance
with its terms.

5. Notices

All communications and notices hereunder shall be in writing and given as provided in Section 5.01
of the First Lien Intercreditor Agreement.

6. Execution in Counterparts

This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same Agreement. In this respect the Collateral
Agent and the Confirming Parties agree not to contest the validity of an uncertified copy of this
Agreement in any court or enforcement proceedings in the Republic of Austria.

7. Stamp duty

The parties hereto agree that the provisions of sections 9.19 (Place of Performance) and 9.20
(Austria Stamp Duty) of the Credit Agreement (and, if the Credit Agreement is no longer in
existence, an equivalent clause in any Additional Agreement) and the provisions of

- 7 -

 

sections 5.15 (Place of Performance) and 5.16 (Austrian Stamp Duty) of the First Lien Intercreditor
Agreement (and, if the First Lien Intercreditor Agreement is no longer in existence, an equivalent
clause in any other Intercreditor Arrangements) shall apply to this Agreement as if incorporated
herein mutatis mutandis.

8. Miscellaneous

8.1 This Agreement is a Loan Document (as defined in the Credit Agreement) executed pursuant to the
Credit Agreement and shall (unless otherwise expressly indicated herein) be construed, administered
and applied in accordance with the terms of the Credit Agreement.

8.2 This Agreement shall not extinguish the obligations for the payment of money outstanding under
any Credit Document or discharge or release the priority of any Credit Document or any other
security therefore. Nothing herein shall be construed as a substitution or novation of the
obligations outstanding under any Credit Document or instruments securing the same, which shall
remain in full force and effect. Nothing in or implied by this Agreement or in any other document
contemplated hereby shall be construed as a release or other discharge of any obligations or
liabilities of any party under any Credit Document. Each of the Credit Documents shall remain in
full force and effect notwithstanding the execution and delivery of this Agreement.

8.3 Except as expressly set forth herein, this Agreement shall not by implication or otherwise
limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Secured
Parties under any Credit Document, and shall not alter, modify, amend or in any way affect any of
the terms, conditions, obligations, covenants or agreements contained in any Credit Document, all
of which are ratified and affirmed in all respects and shall continue in full force and effect.

8.4 If at any time, any one or more of the provisions hereof is or becomes invalid, illegal or
unenforceable in any respect under the law of any jurisdiction, such provision shall as to such
jurisdiction, be ineffective to the extent necessary without affecting or impairing the validity,
legality and enforceability of the remaining provisions hereof or of such provisions in any other
jurisdiction. The invalid, illegal or unenforceable provision shall be deemed to be replaced by
such valid, legal or enforceable provision which comes as close as possible to the original intent
of the parties in respect of the invalid, illegal or unenforceable provision.

8.5 Any amendments, changes, variations or waivers to this Agreement may be made only with the
agreement of the Confirming Parties and the Collateral Agent in writing and, if required under
Austrian statutory law, in the form of a notarial deed. This applies also to this Clause 8.5.

9. Capital maintenance

9.1 The liability of the Confirming Parties under this Agreement shall at all times be limited so
that no assumption of an obligation under this Agreement be required if this would violate

- 8 -

 

mandatory Austrian capital maintenance rules (Kapitalerhaltungsvorschriften) pursuant to
Austrian company law, in particular Sections 82 et seq of the Austrian Act on Limited Liability
Companies (Gesetz über Gesellschaften mit beschränkter Haftung) and/or Sections 52 and 65 et seq of
the Austrian Stock Corporation Act (Aktiengesetz).

9.2 Should any obligation under this Agreement violate or contradict Austrian capital maintenance
rules and should therefore be held invalid or unenforceable, such obligation shall be deemed to be
replaced by an obligation of a similar nature which is in compliance with Austrian capital
maintenance rules and which provides the best possible security interest in favour of the Secured
Parties. By way of example, should it be held that the security interest created under a Security
Document as amended by this Agreement is contradicting Austrian capital maintenance rules in
relation to any amount of the Secured Obligations (as defined in such Security Document), the
security interest created under such Security Document as amended by this Agreement shall be
reduced to the maximum amount of the Secured Obligations (as defined in such Security Document),
which is permitted pursuant to Austrian capital maintenance rules.

10. Choice of Law

This Agreement shall be governed and construed in accordance with the laws of Austria.

11. Settlement of disputes

11.1 Jurisdiction of English Courts

	(a)	 	The courts of England, shall have exclusive jurisdiction to settle any dispute arising out of
or in connection with this Agreement (including a dispute regarding the existence, validity or
termination of this Agreement).
	 
	(b)	 	The Parties agree that the courts of England are the most appropriate and convenient courts
to settle disputes and accordingly no Party will argue to the contrary.

11.2 Clause 11.1 is for the benefit of the Collateral Agent only. As a result, the Collateral Agent
shall not be prevented from taking proceedings relating to a dispute in any other courts with
jurisdiction. To the extent allowed by law, the Collateral Agent may take concurrent proceedings in
any number of jurisdictions.

11.3 Without prejudice to any other mode of service allowed under any relevant law, the Pledgor:

	(a)	 	irrevocably appoints Law Debenture Corporate Services Limited as its agent for service of
process in relation to any proceedings before the English courts in connection with this
Agreement; and
	 
	(b)	 	agrees that failure by an agent for service of process to notify the Pledgor of the process
will not invalidate the proceedings concerned.

- 9 -

 

SIG Austria Holding GmbH

	 	 	 	 	 	 	 

	 
	/s/ Chiara Brophy	 	 	/s/ Pru Wyllie
	Represented by: Chiara Brophy	 	 	Represented by: Pru Wyllie
	Date: 27 August 2010	 	 	Date: 27 August 2010
	 
	SIG Combibloc GmbH	 	 	 	 
	 
	/s/ Chiara Brophy	 	 	/s/ Pru Wyllie
	Represented by: Chiara Brophy	 	 	Represented by: Pru Wyllie
	Date: 27 August 2010	 	 	Date: 27 August 2010
	 
	SIG Combibloc GmbH & Co KG	 	 	 	 
	 
	/s/ Chiara Brophy	 	 	/s/ Pru Wyllie
	Represented by: Chiara Brophy	 	 	Represented by: Pru Wyllie
	Date: 27 August 2010	 	 	Date: 27 August 2010
	 
	Wilmington Trust (London) Limited	 	 	 	 
	 
	/s/ Michael Quinlan	 	 	 	 
	Represented by: Michael Quinlan	 	 	 	 
	Date: 27 August 2010	 	 	 	 

- 10 -

 

Schedule 1

List of the Security Documents

	(a)	 	Limited interest pledge agreement over the limited partnership interest in SIG Combibloc GmbH
& Co KG granted by SIG Austria Holding GmbH in favour of the Collateral Agent;
	 
	(b)	 	General interest pledge agreement over the general partnership interest in SIG Combibloc GmbH
& Co KG granted by SIG Combibloc GmbH in favour of the Collateral Agent;
	 
	(c)	 	Account pledge agreement over the bank accounts granted by SIG Austria Holding GmbH in favour
of the Collateral Agent;
	 
	(d)	 	Account pledge agreement over the bank accounts granted by SIG Combibloc GmbH in favour of
the Collateral Agent;
	 
	(e)	 	Account pledge agreement over the bank accounts granted by SIG Combibloc GmbH & Co KG in
favour of the Collateral Agent;
	 
	(f)	 	Receivables pledge agreement over the receivables granted by SIG Austria Holding GmbH in
favour of the Collateral Agent;
	 
	(g)	 	Receivables pledge agreement over the receivables granted by SIG Combibloc GmbH in favour of
the Collateral Agent;
	 
	(h)	 	Receivables pledge agreement over the receivables granted by SIG Combibloc GmbH & Co KG in
favour of the Collateral Agent.

- 11 -

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