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                                                                     EXHIBIT 4.2

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                              OWENS-ILLINOIS, INC.,

                                     ISSUER

                                       AND

                           OWENS-ILLINOIS GROUP, INC.
                         OWENS-BROCKWAY PACKAGING, INC.,

                          THE GUARANTEEING SUBSIDIARIES

                                       AND

                              THE BANK OF NEW YORK,

                                     TRUSTEE

                              --------------------

                             SUPPLEMENTAL INDENTURE

                            DATED AS OF JUNE 26, 2001

                              --------------------

                          Supplemental to the Indenture
                            dated as of May 15, 1997
               with respect to the following series of Securities:
                         7.85% Senior Notes due 2004 and
                           8.10% Senior Notes due 2007

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      Supplemental Indenture (this "SUPPLEMENTAL INDENTURE"), dated as of June
26, 2001 among Owens-Illinois, Inc. (or its permitted successor), a Delaware
corporation (the "COMPANY"), Owens-Illinois Group, Inc. ("GROUP") and
Owens-Brockway Packaging, Inc. ("PACKAGING") (each of Group and Packaging, a
"GUARANTEEING SUBSIDIARY"), subsidiaries of the Company, and The Bank of New
York, as trustee under the indenture referred to below (the "TRUSTEE").

                               W I T N E S S E T H

      WHEREAS, the Company has executed and delivered to the Trustee an
indenture dated as of May 15, 1997, as amended or supplemented prior to the date
hereof (the "INDENTURE"), pursuant to which the Company has issued $300 million
principal amount of 7.85% Senior Notes due 2004 and $300 million principal
amount of 8.10% Senior Notes due 2007, each of which are a separate series of
Securities under the Indenture;

      WHEREAS, the Holders of not less than a majority of the principal amount
of the outstanding [list series of securities that have consented]
(collectively, the "NOTES") have consented to the amendments to the Indenture
set forth herein;

      WHEREAS, (a) each Guaranteeing Subsidiary desires to unconditionally
guarantee all of the Company's obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "NOTE GUARANTEE") and (b) the
Guaranteeing Subsidiaries desire to pledge and grant security interests in
certain collateral to (i) secure on a second priority basis the Company's
obligations under the Indenture and the Notes on the terms and conditions set
forth herein and (ii) secure on a second priority basis the obligations of each
Guaranteeing Subsidiary under the Note Guarantee; and

      WHEREAS, the amendments effected by this Supplemental Indenture will not
become operative unless and until the conditions set forth in Section 7 are
satisfied.

      NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Company, each Guaranteeing Subsidiary and the Trustee mutually covenant and
agree for the equal and ratable benefit of the Holders of the Notes as follows:

      SECTION 1. CAPITALIZED TERMS. Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

      SECTION 2. DEFINITIONS. The following definitions are hereby added to
Section 1.01 of the Indenture, which, in the event of a conflict with the
definition of terms in the Indenture, shall control:

      "COLLATERAL AGENT" means Bankers Trust Company or any successor acting in
the capacity of collateral agent under the Pledge Agreement.

      "CREDIT AGREEMENT" means the Secured Credit Agreement dated as of April
23, 2001 among certain subsidiaries of the Company, the lenders named therein,
the agents for the lenders, the managers for the lenders and Bankers Trust
Company, as administrative agent, as such agreement may be amended, amended and
restated, supplemented or otherwise modified from time to time, and includes any
credit agreement or bank facility that extends the maturity of or refinances or
replaces all or any portion of the obligations or commitments under such
agreement or any successor agreement.

      "EQUITY INTERESTS" means any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock, including,
without limitation, with respect to partnerships, partnership interests and any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, such
partnership (collectively, "Capital Stock"), and all warrants, options or other
rights to acquire such Capital Stock.

      "GUARANTIED OBLIGATIONS" has the meaning given such term in the Credit
Agreement or the Subsidiary Guaranty, as applicable.

      "INTERCREDITOR AGREEMENT" means the Intercreditor Agreement executed and
delivered by the Collateral Agent and the other parties thereto dated as of
April 23, 2001, in the form of Exhibit A hereto, as such Intercreditor Agreement
may hereafter be amended, supplemented or otherwise modified from time to time.

      "NEW SENIOR DEBT" means Indebtedness of any Subsidiary of the Company
issued after the date hereof so long as such Indebtedness is issued in
compliance with the terms and provisions of the Credit Agreement and constitutes
"New Senior Debt" under the Credit Agreement.

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      "PERMITTED JUNIOR SECURITIES" means Equity Interests or debt securities of
the Company or any Guaranteeing Subsidiary, in each case that are subordinated
to the Senior Guarantees to substantially the same extent as, or to a greater
extent than, the Note Guarantee is subordinated to the Senior Guarantees.

      "PLEDGE AGREEMENT" means the Pledge Agreement executed and delivered by
Group and Packaging to the Collateral Agent dated as of April 23, 2001, in the
form of Exhibit B hereto, as such Pledge Agreement may hereafter be amended,
supplemented or otherwise modified from time to time.

      "PLEDGED COLLATERAL" means the Pledged Collateral as defined in the Pledge
Agreement.

      "SENIOR GUARANTEE" means (i) the guarantee by Group of the Guarantied
Obligations pursuant to the Credit Agreement, (ii) the guarantee by Packaging of
the Guarantied Obligations pursuant to the Subsidiary Guaranty to which it is a
party and (iii) if applicable, the guarantee by any Guaranteeing Subsidiary of
obligations of the issuer or issuers of any New Senior Debt.

      "SUBSIDIARY GUARANTY" means the Guaranty executed and delivered by
Packaging pursuant to the Credit Agreement.

      SECTION 3. AGREEMENT TO PROVIDE SECURITY. The Company and the Guaranteeing
Subsidiaries hereby agree to provide security for the Notes on the following
terms and conditions:

            SECTION 3.1 PLEDGE AGREEMENT.The due and punctual payment of the
principal of and interest, if any, on the Notes when and as the same shall be
due and payable, whether on an interest payment date, at maturity, by
acceleration, repurchase, redemption or otherwise, and interest on the overdue
principal of and interest (to the extent permitted by law), if any, on the Notes
and performance of all other obligations of the Company to the Holders of Notes
or the Trustee under the Indenture and the Notes, and the performance of each
Guaranteeing Subsidiary under the Note Guarantee, in each case according to the
terms hereunder or thereunder, shall be secured as provided in the Pledge
Agreement. The Company shall deliver to the Trustee copies of all documents
delivered to the Collateral Agent pursuant to the Pledge Agreement, and shall do
or cause to be done all such acts and things as may be necessary or proper, or
as may be required by the provisions of the Pledge Agreement, to assure and
confirm to the Trustee and the Collateral Agent the security interest in the
Pledged Collateral contemplated hereby, by the Pledge Agreement or any part
thereof, as from time to time constituted, so as to render the same available
for the security and benefit of the Indenture, the Note Guarantee and of the
Notes secured hereby, according to the intent and purposes herein and therein
expressed. The Company shall take, or shall cause its Subsidiaries to take, as
necessary or upon request of the Trustee, any and all actions reasonably
required to cause the Pledge Agreement to create and maintain, as security for
the obligations of the Company and the Guaranteeing Subsidiaries under this
Supplemental Indenture and the Indenture, a valid and enforceable second
priority Lien in and on all the Pledged Collateral, in favor of the Collateral
Agent for the benefit of the Holders of Notes, as and to the extent set forth in
the Pledge Agreement.

            SECTION 3.2 RECORDING AND OPINIONS.

                  (a) The Company shall furnish to the Trustee promptly
following the execution and delivery of this Supplemental Indenture an Opinion
of Counsel either (i) stating that in the opinion of such counsel all action has
been taken with respect to the recording, registering and filing of the
Indenture, financing statements or other instruments necessary to make effective
the Lien intended to be created by the Pledge Agreement, and reciting with
respect to the security interests in the Pledged Collateral, the details of such
action, or (ii) stating that, in the opinion of such counsel, no such action is
necessary to make such Lien effective.

                  (b) The Company shall furnish to the Trustee within 30 days
after May 1 of each year, beginning with May 1, 2002, an Opinion of Counsel,
dated as of such date, either (i) (A) stating that, in the opinion of such
counsel, action has been taken with respect to the recording, registering,
filing, re-recording, re-registering and refiling of all supplemental
indentures, financing statements, continuation statements or other instruments
of further assurance as is necessary to maintain the Lien of the Pledge
Agreement and reciting with respect to the security interests in the Pledged
Collateral the details of such action or referring to prior Opinions of Counsel
in which such details are given, and (B) stating that, based on relevant laws as
in effect on the date of such Opinion of Counsel, all financing statements and
continuation statements have been executed and filed that are necessary as of
such date and during the succeeding 12 months fully to preserve and protect, to
the extent such protection and preservation are possible by filing, the rights
of the Holders of Notes and the Collateral Agent and the

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Trustee hereunder and under the Pledge Agreement with respect to the security
interests in the Pledged Collateral, or (ii) stating that, in the opinion of
such counsel, no such action is necessary to maintain such Lien and assignment.

                  (c) The Company shall otherwise comply with the provisions of
TIAss.314(b).

            SECTION 3.3 RELEASE OF COLLATERAL. Pledged Collateral may be
released from the Lien and security interest created by the Pledge Agreement at
any time or from time to time in accordance with the provisions of the Pledge
Agreement and the Intercreditor Agreement. The release of any Pledged Collateral
from the terms of the Indenture and the Pledge Agreement shall not be deemed to
impair the security under the Indenture in contravention of the provisions
hereof if and to the extent the Pledged Collateral is released pursuant to the
terms of the Pledge Agreement and the Intercreditor Agreement. The Trustee
acknowledges and the Holders, by their consent to the amendments effected by
this Supplemental Indenture are deemed to acknowledge, that a release of the
Pledged Collateral in accordance with the terms of the Pledge Agreement and the
Intercreditor Agreement will not be deemed for any purpose to be an impairment
of the security under the Indenture. To the extent applicable, the Company shall
comply with TIA ss. 313(b), relating to reports, and TIA ss. 314(d), relating to
the release of property or securities from the Lien and security interest of the
Pledge Agreement and relating to the substitution therefor of any property or
securities to be subjected to the Lien and security interest of the Pledge
Agreement. Any certificate or opinion required by TIA ss. 314(d) may be made by
an Officer of the Company except in cases where TIA ss. 314(d) requires that
such certificate or opinion be made by an independent Person.

            SECTION 3.4 AUTHORIZATION OF ACTIONS TO BE TAKEN BY THE TRUSTEE
UNDER THE PLEDGE AGREEMENT. Subject to the provisions of the Intercreditor
Agreement and the Pledge Agreement, the Trustee shall have power to institute
and maintain such suits and proceedings to prevent any impairment of the Pledged
Collateral by any acts that may be unlawful or in violation of the Pledge
Agreement, the Intercreditor Agreement or the Indenture, and such suits and
proceedings to preserve or protect its interests and the interests of the
Holders of Notes in the Pledged Collateral (including power to institute and
maintain suits or proceedings to restrain the enforcement of or compliance with
any legislative or other governmental enactment, rule or order that may be
unconstitutional or otherwise invalid if the enforcement of, or compliance with,
such enactment, rule or order would impair the security interest hereunder or be
prejudicial to the interests of the Holders of Notes or of the Trustee).

            SECTION 3.5 AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE UNDER
THE PLEDGE AGREEMENT. The Trustee is authorized to receive any funds for the
benefit of the Holders of Notes distributed under the Pledge Agreement, and to
make further distributions of such funds to the Holders of Notes according to
the provisions of this Supplemental Indenture, the Indenture and the
Intercreditor Agreement.

      SECTION 4. AGREEMENT TO GUARANTEE. Each Guaranteeing Subsidiary hereby
agrees as follows:

            SECTION 4.1 GUARANTEE.

                  (a) Such Guaranteeing Subsidiary jointly and severally
guarantees to each Holder of a Note authenticated and delivered by the Trustee
and to the Trustee and its successors and assigns, irrespective of the validity
and enforceability of this Supplemental Indenture, the Indenture, the Notes or
the obligations of the Company thereunder, that:

                        (i) the principal of and interest on the Notes will be
promptly paid in full when due, whether at maturity, by acceleration, redemption
or otherwise, and interest on the overdue principal of and interest on the Notes
(to the extent permitted by law), if any (including amounts that would become
due but for the operation of the automatic stay under Section 362(a) of the
Bankruptcy Law, and interest that, but for the filing of a proceeding under the
Bankruptcy Law with respect to the Company, would have accrued on the Notes,
whether or not any such interest is allowed as an enforceable claim against the
Company in such proceeding), and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and

                        (ii) in case of any extension of time of payment or
renewal of any Notes or any of such other obligations, that same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise.
Failing payment when due of any amount so guaranteed or any performance so
guaranteed for whatever reason, the Guaranteeing Subsidiaries shall be jointly
and severally obligated to pay the same immediately.

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                  (b) The obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or the
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to enforce the same or
any other circumstance that might otherwise constitute a legal or equitable
discharge or defense of a Guaranteeing Subsidiary.

                  (c) The following is hereby waived: diligence, presentment,
demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever.

                  (d) This Note Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and the
Indenture.

                  (e) If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Guaranteeing Subsidiaries, or any
custodian, trustee, liquidator or other similar official acting in relation to
either the Company or the Guaranteeing Subsidiaries, any amount paid by either
to the Trustee or such Holder, this Note Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect.

                  (f) Such Guaranteeing Subsidiary shall not be entitled to any
right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby.

                  (g) As between the Guaranteeing Subsidiaries, on the one hand,
and the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 of the
Indenture for the purposes of this Note Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (y) in the event of any declaration of
acceleration of such obligations as provided in Article 6 of the Indenture, such
obligations (whether or not due and payable) shall forthwith become due and
payable by the Guaranteeing Subsidiaries for the purpose of this Note Guarantee.

                  (h) Such Guaranteeing Subsidiary shall have the right to seek
contribution from any non-paying Guaranteeing Subsidiary so long as the exercise
of such right does not impair the rights of the Holders under the Note
Guarantee.

                  (i) Each Guaranteeing Subsidiary hereby confirms that it is
the intention of such party that the Note Guarantee of such Guaranteeing
Subsidiary not constitute a fraudulent transfer or conveyance for purposes of
Bankruptcy Law, the Uniform Fraudulent Conveyance Act or any similar federal or
state law to the extent applicable to any Note Guarantee. To effectuate the
foregoing intention, the Trustee and the Guaranteeing Subsidiaries hereby
irrevocably agree that the obligations of such Guaranteeing Subsidiary will,
after giving effect to any maximum amount and any other contingent and fixed
liabilities that are relevant under any applicable Bankruptcy Law or fraudulent
conveyance laws, and after giving effect to any collections from, rights to
receive contribution from or payments made by or on behalf of any other
Guaranteeing Subsidiary in respect of the obligations of such other Guaranteeing
Subsidiary under this Supplemental Indenture, this Note Guarantee shall be
limited to the maximum amount permissible such that the obligations of such
Guaranteeing Subsidiary under this Note Guarantee will not constitute a
fraudulent transfer or conveyance.

            SECTION 4.2 EXECUTION AND DELIVERY. Each Guaranteeing Subsidiary
agrees that the Note Guarantee shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such Note
Guarantee.

            SECTION 4.3 GUARANTEEING SUBSIDIARY MAY CONSOLIDATE, ETC. ON CERTAIN
TERMS.

                  (a) Subject to Section 4.4(a) below, a Guaranteeing Subsidiary
may not consolidate with or merge with or into (whether or not such Guaranteeing
Subsidiary is the surviving Person) another Person unless the Person formed by
or surviving any such consolidation or merger (if other than a Guaranteeing
Subsidiary or the Company) unconditionally assumes all the obligations of such
Guaranteeing Subsidiary, pursuant to a supplemental indenture in form and
substance reasonably satisfactory to the Trustee, under the Notes, the Indenture
and the Note Guarantee on the terms set forth herein or therein.

                  (b) Subject to Section 4.4(a) below, in case of any such
consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered

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to the Trustee and satisfactory in form to the Trustee, of the Note Guarantee
and the due and punctual performance of all of the covenants and conditions of
the Indenture to be performed by the Guaranteeing Subsidiary, such successor
Person shall succeed to and be substituted for the Guaranteeing Subsidiary with
the same effect as if it had been named herein as a Guaranteeing Subsidiary.
Such successor corporation thereupon may cause to be signed any or all of the
Note Guarantees which theretofore shall not have been signed by the Guaranteeing
Subsidiary and delivered to the Trustee. All the Note Guarantees so issued shall
in all respects have the same legal rank and benefit under the Indenture as the
Note Guarantees theretofore and thereafter issued in accordance with the terms
of the Indenture as though all of such Note Guarantees had been issued at the
date of the execution hereof.

                  (c) Notwithstanding clauses (a) and (b) above, nothing
contained in the Indenture or in any of the Notes shall prevent any
consolidation or merger of a Guaranteeing Subsidiary with or into the Company or
another Guaranteeing Subsidiary, or shall prevent any sale or conveyance of the
property of a Guaranteeing Subsidiary as an entirety or substantially as an
entirety to the Company or another Guaranteeing Subsidiary.

            SECTION 4.4 RELEASES.

                  (a) In the event of a sale or other disposition of all or
substantially all of the assets of any Guaranteeing Subsidiary, by way of
merger, consolidation or otherwise, or a sale or other disposition of all of the
capital stock of any Guaranteeing Subsidiary, in each case to a Person that is
not (either before or after giving effect to such transaction) a Subsidiary of
the Company, then such Guaranteeing Subsidiary (in the event of a sale or other
disposition, by way of merger, consolidation or otherwise, of all of the capital
stock of such Guaranteeing Subsidiary) or the corporation acquiring the property
(in the event of a sale or other disposition of all or substantially all of the
assets of such Guaranteeing Subsidiary) will be released and relieved of any
obligations under its Note Guarantee. Upon delivery by the Company to the
Trustee of an Officers' Certificate to the effect that such sale or other
disposition has occurred, the Trustee shall execute any documents reasonably
required in order to evidence the release of any Guaranteeing Subsidiary from
its obligations under its Note Guarantee.

                  (b) The Company, in its sole discretion, may release and
relieve a Guaranteeing Subsidiary of any obligations under its Note Guarantee in
the event such Guaranteeing Subsidiary is no longer a guarantor of any
Guarantied Obligations. Upon delivery by the Company to the Trustee of an
Officers' Certificate to the effect that such Guaranteeing Subsidiary is no
longer a guarantor of any Guarantied Obligations, the Trustee shall execute any
documents reasonably required in order to evidence the release of any
Guaranteeing Subsidiary from its obligations under its Note Guarantee.

                  (c) Any Guaranteeing Subsidiary not released from its
obligations under its Note Guarantee shall remain liable for the full amount of
principal of and interest on the Notes and for the other obligations of any
Guaranteeing Subsidiary under the Indenture.

            SECTION 4.5 SUBORDINATION OF NOTE GUARANTEE. Each Guaranteeing
Subsidiary covenants and agrees that the obligations of such Guaranteeing
Subsidiary under its Note Guarantee shall be junior and subordinate in right of
payment to the prior payment in full in cash of all obligations under the Senior
Guarantee of such Guaranteeing Subsidiary.

            SECTION 4.6 PAYMENT OVER OF PROCEEDS UPON DISSOLUTION, ETC. Upon any
distribution to creditors of a Guaranteeing Subsidiary in a liquidation or
dissolution of such Guaranteeing Subsidiary or in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to such Guaranteeing
Subsidiary or its property, in an assignment for the benefit of creditors or any
marshaling of the Guaranteeing Subsidiary's assets and liabilities:

                        (i) holders of the Senior Guarantees shall be entitled
to receive payment in full in cash of all obligations due in respect of such
Senior Guarantees (including interest after the commencement of any such
proceeding at the rate specified in the Indebtedness to which such Senior
Guarantee relates whether or not any such interest is allowed as an enforceable
claim against the Guaranteeing Subsidiary in such proceeding) before holders of
the Note Guarantee shall be entitled to receive any payment with respect to the
Note Guarantee (except that Holders may receive (A) Permitted Junior Securities
and (B) payments and other distributions made from any defeasance trust created
pursuant to Section 8.03 or 8.04 of the Indenture); and (ii) until all
obligations with respect to the Senior Guarantees (as provided in clause (i)
above) are paid in full in cash, any distribution to which holders of the Note
Guarantee would be

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entitled but for this Section 4 shall be made to holders entitled to the benefit
of the Senior Guarantees (except that holders of the Note Guarantee may receive
(A) Permitted Junior Securities and (B) payments and other distributions made
from any defeasance trust created pursuant to Section 8.03 or 8.04 of the
Indenture), as their interests may appear.

            SECTION 4.7 DEFAULT ON SENIOR GUARANTEES.

                        (a) A Guaranteeing Subsidiary may not make any payment
or distribution to the Trustee or any holder in respect of obligations with
respect to the Note Guarantee and may not acquire from the Trustee or any Holder
any Notes for cash or property (other than (A) Permitted Junior Securities and
(B) payments and other distributions made from any defeasance trust created
pursuant to Section 8.03 or 8.04 of the Indenture) until all obligations with
respect to the Senior Guarantees have been paid in full in cash if:

                        (i) a default in the payment of any obligations with
respect to any Senior Guarantee occurs and is continuing beyond any applicable
grace period in the agreement, indenture or other document governing such Senior
Guarantee; or

                        (ii) a default, other than a payment default, with
respect to any Senior Guarantee occurs and is continuing that then permits
holders of the Senior Guarantee to accelerate the maturity of the Indebtedness
to which such Senior Guarantee relates and a Trust Officer of the Trustee
receives a notice of the default (a "PAYMENT BLOCKAGE NOTICE") from a Person who
may give it pursuant to Section 4.13 hereof. If a Trust Officer of the Trustee
receives any such Payment Blockage Notice, no subsequent Payment Blockage Notice
shall be effective for purposes of this Section unless and until (A) at least
360 days shall have elapsed since the effectiveness of the immediately prior
Payment Blockage Notice and (B) all scheduled payments of principal, premium, if
any, and interest on the Notes that have come due have been paid in full in
cash. No nonpayment default that existed or was continuing on the date of
delivery of any Payment Blockage Notice to a Trust Officer of the Trustee shall
be, or be made, the basis for a subsequent Payment Blockage Notice unless such
default shall have been waived for a period of not less than 180 days.

                  (b) A Guaranteeing Subsidiary may and shall resume payments on
and distributions in respect of the Note Guarantee and may acquire Notes upon
the earlier of:

                        (i) the date upon which the default is cured or waived,
or

                        (ii) in the case of a default referred to in clause (ii)
of subclause (a) hereof, 179 days pass after notice is received if the maturity
of the Indebtedness to which such Senior Guarantee relates has not been
accelerated,

if this Section 4 otherwise permits the payment, distribution or acquisition at
the time of such payment or acquisition.

            SECTION 4.8 WHEN DISTRIBUTION MUST BE PAID OVER. In the event that
the Trustee or any holder receives any payment of any obligations with respect
to the Note Guarantee at a time when a Trust Officer of the Trustee or such
holder, as applicable, has actual knowledge that such payment is prohibited by
this Section 4, such payment shall be held by the Trustee or such holder, in
trust for the benefit of, and shall be paid forthwith over and delivered, upon
written request, to, the holders of the Senior Guarantees as their interests may
appear or their representative under the indenture or other agreement (if any)
pursuant to which the Senior Guarantees may have been issued, as their
respective interests may appear, for application to the payment of all
obligations with respect to the Senior Guarantees remaining unpaid to the extent
necessary to pay such obligations in full in accordance with their terms, after
giving effect to any concurrent payment or distribution to or for the holders of
the Senior Guarantees.

      With respect to the holders of the Senior Guarantees, the Trustee
undertakes to perform only such obligations on the part of the Trustee as are
specifically set forth in this Section 4 and no implied covenants or obligations
with respect to the holders of the Senior Guarantees shall be read into this
Supplemental Indenture or the Indenture against the Trustee. The Trustee shall
not be deemed to owe any fiduciary duty to the holders of the Senior Guarantees,
and shall not be liable to any such holders if the Trustee shall pay over or
distribute to or on behalf of holders of the Note Guarantee or any Guaranteeing
Subsidiary or any other Person money or assets to which any holders of Senior
Guarantees shall be entitled by virtue of this Section 4, except if such payment
is made as a result of the willful misconduct or gross negligence of the
Trustee.

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            SECTION 4.9 SUBROGATION. After all obligations with respect to the
Senior Guarantees are paid in full and all Guarantied Obligations are satisfied
or terminated and until the Notes are paid in full, holders of the Note
Guarantee shall be subrogated to the rights of holders of Senior Guarantees to
receive distributions applicable to the Senior Guarantees to the extent that
distributions otherwise payable to the holders of the Note Guarantee have been
applied to the payment of the obligations with respect to the Senior Guarantees.
A distribution made under this Section 4 to holders of Senior Guarantees that
otherwise would have been made to holders of the Note Guarantee is not, as
between a Guaranteeing Subsidiary and Holders, a payment by such Guaranteeing
Subsidiary on the Note Guarantee.

            SECTION 4.10 RELATIVE RIGHTS. This Section 4 defines the relative
rights of holders of the Note Guarantee and holders of Senior Guarantees.
Nothing in this Supplemental Indenture or the Indenture shall:

                        (i) impair, as between the Company or any Guaranteeing
Subsidiary and holders of the Note Guarantee, the obligation of the Company and
the Guaranteeing Subsidiaries, which is absolute and unconditional, to pay
principal of and interest on the Notes in accordance with their terms;

                        (ii) affect the relative rights of holders of the Note
Guarantee and creditors of the Guaranteeing Subsidiaries other than their rights
in relation to holders of Senior Guarantees; or

                        (iii) prevent the Trustee or any Holder of Notes from
exercising its available remedies upon a Default or Event of Default, subject to
the rights of holders of Senior Guarantees to receive distributions and payments
otherwise payable to holders of the Note Guarantee.

            SECTION 4.11 SUBORDINATION MAY NOT BE IMPAIRED BY ANY GUARANTEEING
SUBSIDIARY. No right of any holder of a Senior Guarantee to enforce the
subordination of the obligations evidenced by the Note Guarantee shall be
impaired by any act or failure to act by any Guaranteeing Subsidiary or any
holder of the Note Guarantee or by the failure of any Guaranteeing Subsidiary or
any holder of the Note Guarantee to comply with this Supplemental Indenture or
the Indenture.

            SECTION 4.12 DISTRIBUTION OR NOTICE TO REPRESENTATIVE. Whenever a
distribution is to be made or a notice given to holders of the Senior
Guarantees, the distribution may be made and the notice given to their
representative.

      Upon any payment or distribution of assets of any Guaranteeing Subsidiary
referred to in this Section 4, the Trustee and the holders of the Note Guarantee
shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction or upon any certificate of such representative or of the
liquidating trustee or agent or other Person making any distribution to the
Trustee or to the holders of the Note Guarantee for the purpose of ascertaining
the Persons entitled to participate in such distribution, the holders of the
Senior Guarantees and other Indebtedness of the Guaranteeing Subsidiaries, the
amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Section 4.

            SECTION 4.13 RIGHTS OF TRUSTEE AND PAYING AGENT. Notwithstanding the
provisions of this Supplemental Indenture or any other provision of the
Indenture, the Trustee shall not be charged with knowledge of the existence of
any facts that would prohibit the making of any payment or distribution by the
Trustee, and the Trustee and the Paying Agent may continue to make payments in
accordance with the Indenture and the Note Guarantee, unless a Trust Officer of
the Trustee shall have received at its Corporate Trust Office at least five
business days prior to the date of such payment written notice of facts that
would cause the payment of any obligations with respect to the Note Guarantee to
violate this Section 4. Only a Guaranteeing Subsidiary or a Representative may
give the notice. For purposes of this Section 4.13, "Representative" means,
until the Credit Agreement has been terminated, the administrative agent under
the Credit Agreement, and thereafter, any authorized representative of the
holders of the Senior Guarantees, so long as such representative has provided
proof of its status as an authorized representative to the Trustee prior to
giving any notice pursuant to this Section 4.13. Nothing in this Section 4 shall
impair the claims of, or payments to, the Trustee under or pursuant to Section
7.7 of the Indenture.

      The Trustee in its individual or any other capacity may hold Senior
Guarantees with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights.

            SECTION 4.14 NO RECOURSE AGAINST OTHERS. No past, present or future
director, officer, employee, incorporator or agent of the Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Company
or any Guaranteeing Subsidiary under the Notes, any Note Guarantees, the
Indenture or this

                                      -7-
<Page>

Supplemental Indenture or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Such waiver may not be effective to
waive liabilities under the federal securities laws and it is the view of the
Securities and Exchange Commission that such a waiver is against public policy.

      SECTION 5. DEFAULTS AND REMEDIES.

            SECTION 5.1 ADDITIONAL EVENT OF DEFAULT. In addition to the Events
of Default set forth in Section 6.01 of the Indenture, the Notes shall include
the following additional Event of Default:

   "(7) Group or Packaging fails to comply in any material respect with any of
   its agreements contained in the Indenture, or the loss of the perfection or
   priority of the Liens securing the Notes or the Note Guarantee pursuant to
   the Pledge Agreement, so long as the Notes are secured in accordance with the
   terms thereof, and in each case the Default continues for the period and
   after the notice specified in the final paragraph of this Section 6.01."

            SECTION 5.2 OTHER PROVISIONS RESTATED. The following provisions
shall be amended and restated with respect to the Notes in order to provide for
rights, directions and remedies as they relate to the Pledge Agreement and the
Intercreditor Agreement:

            "Section 6.03  Other Remedies.

      If an Event of Default with respect to Securities of any series occurs and
      is continuing, the Trustee may pursue any available remedy to collect the
      payment of principal or interest on the Securities of that series or to
      enforce the performance of any provision of the Securities of that series,
      this Indenture, the Pledge Agreement, the Intercreditor Agreement or any
      Note Guarantee.

      The Trustee may maintain a proceeding even if it does not possess any of
      the Securities or does not produce any of them in the proceeding. A delay
      or omission by the Trustee or any Securityholder in exercising any right
      or remedy accruing upon an Event of Default shall not impair the right or
      remedy or constitute a waiver of or acquiescence in the Event of Default.
      All remedies are cumulative to the extent permitted by law."

            "Section 6.06  Limitation on Suits.

      A Holder of Securities of any series may not pursue a remedy with respect
      to this Indenture, the Securities, the Pledge Agreement or any Note
      Guarantee unless:

             (1)  the Holder  gives to the Trustee  written  notice of a
             continuing Event of Default with respect to that series;

             (2) the Holders of at least 50% in principal amount of the then
             outstanding Securities of that series make a written request to the
             Trustee to pursue the remedy;

             (3)  such Holder or Holders offer to the Trustee  indemnity
             satisfactory to the Trustee against any loss,  liability or
             expense;

             (4) the Trustee does not comply with the request within 60 days
             after receipt of the request and the offer and, if requested, the
             provision of indemnity; and

             (5) during such 60-day period the Holders of a majority in
             principal amount of the then outstanding Securities of that series
             do not give the Trustee a direction inconsistent with the request.

      No Holder of any series of Securities may use this Indenture to prejudice
      the rights of another Holder of Securities of that series or to obtain a
      preference or priority over another Holder of Securities of that series."

            "Section 6.10  Priorities.

      If the Trustee collects any money with respect to Securities of any series
      pursuant to this Article (including without limitation any amounts
      received from the distribution of payments pursuant to the Intercreditor
      Agreement, the Pledge Agreement or any Note Guarantee), it shall pay out
      the money in the following order:

                                      -8-
<Page>

            First: to the Trustee, its agents and attorneys for amounts due
            under Section 7.07 hereof, including payment of all compensation,
            expense and liabilities incurred, and all advances made, by the
            Trustee and the costs and expenses of collection;

            Second: to Securityholders for amounts due and unpaid on the
            Securities of such series for principal and interest, ratably,
            without preference or priority of any kind, according to the amounts
            due and payable on the Securities of such series for principal and
            interest, respectively; and

            Third: to the Company or to such party as a court of competent
            jurisdiction shall direct; PROVIDED, however, that in the case of
            amounts received from the distribution of payments pursuant to the
            Intercreditor Agreement or any other proceeds of Pledged Collateral
            securing any series of Securities, such amounts shall not be
            distributed to the Company but shall rather be held by the Trustee,
            in trust, for subsequent application in accordance with the
            Securities of such series and this Indenture to the payment of
            principal of, premium, if any, and interest on the Securities upon
            the earlier to occur of (i) any scheduled or mandatory payment of
            principal, optional redemption or payment of accrued interest on the
            Securities of such series, in any such case as directed in writing
            by the Company, and (ii) the acceleration of the maturity of the
            Securities of that series pursuant to Section 6.02 (including an
            acceleration by reason of an Event of Default specified in Section
            6.01 (4) or (5)). Until so applied, such payments shall be held in a
            separate account, in trust, by the Trustee or invested by the
            Trustee at the written direction of the Company. At such time as no
            Securities of any series remain outstanding, any excess money held
            by the Trustee shall be paid to the Company.

            The Trustee may fix a record date and payment date for any payment
            to Holders of Securities of any series pursuant to this Section. The
            Trustee shall notify the Company in writing reasonably in advance of
            any such record date and payment date."

      SECTION 6. PLEDGE AND INTERCREDITOR AGREEMENTS. The Trustee hereby
acknowledges and accepts the appointment of the Collateral Agent under the
Pledge Agreement and shall, concurrently with the execution hereof, deliver to
the Collateral Agent an acknowledgement of the Intercreditor Agreement. In
addition, the Trustee shall execute such further documents and instruments as
may be necessary to create in favor of the Collateral Agent a valid and
enforceable second priority Lien on the Pledged Collateral.

      SECTION 7. EFFECTIVENESS. The amendments effected by this Supplemental
Indenture shall take effect on the date that each of the following conditions
shall have been satisfied or waived:

                  (a) each of the parties hereto shall have executed and
delivered this Supplemental Indenture; and

                  (b) the Company has received (i) written consent to these
amendments from the holders of at least a majority in principal amount of each
series of Securities issued under the Indenture and (ii) written consent to
substantially similar amendments to the Indenture dated May 20, 1998 (the "Other
Indenture") from the holders of at least a majority in principal amount of the
following series of securities issued under the Other Indenture: $350 million
principal amount of 7.15% Senior Notes due 2005, $250 million principal amount
of 7.35% Senior Notes due 2008, $250 million principal amount of 7.50% Senior
Debentures due 2010 and $250 million of 7.80% Senior Debentures due 2018.

      SECTION 8. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW
YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

      SECTION 9. COUNTERPARTS. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

      SECTION 10. EFFECT OF HEADINGS. The Section headings herein are for
convenience only and shall not affect the construction hereof.

                                      -9-
<Page>

      SECTION 11. THE TRUSTEE. The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Guaranteeing Subsidiaries and the
Company. The Company's obligations with respect to compensation and indemnity of
the Trustee shall extend to the administration of and performance of its powers
and duties under the Pledge Agreement and the Intercreditor Agreement.

      SECTION 12. INDENTURE REMAINS IN FULL FORCE AND EFFECT. Except as
expressly set forth herein, the terms of the Indenture shall continue in full
force and effect in accordance with the provisions thereof. As used herein, the
terms "Indenture," "herein," "hereunder," and words of similar import, shall,
unless the context otherwise requires, refer to the Indenture, as supplemented
hereby.

                                      -10-
<Page>

      IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed of the date first above written.

      Dated:  June 26, 2001

                                    Owens-Illinois Group, Inc.

                                    By:  /s/ David G. Van Hooser
                                         ---------------------------------------
                                    Name: David G. Van Hooser
                                    Title: Senior Vice President and Chief
                                            Financial Officer

                                    Owens-Brockway Packaging, Inc.

                                    By:  /s/ David G. Van Hooser
                                         ---------------------------------------
                                    Name: David G. Van Hooser
                                    Title: Senior Vice President and Chief
                                            Financial Officer

                                    Owens-Illinois, Inc.

                                    By:  /s/ David G. Van Hooser
                                         ---------------------------------------
                                    Name: David G. Van Hooser
                                    Title: Senior Vice President and Chief
                                            Financial Officer

                                    The Bank of New York,
                                      as Trustee

                                    By:  /s/ Terence Rawlins
                                         ---------------------------------------
                                         Authorized Signatory

                                      -11-<Page>

                                                                     EXHIBIT 4.3

                                PLEDGE AGREEMENT

      This PLEDGE AGREEMENT (as amended, amended and restated or otherwise
modified from time to time, herein called this "AGREEMENT") is dated as of April
23, 2001 between OWENS-ILLINOIS GROUP, INC., a Delaware corporation ("COMPANY"),
and OWENS BROCKWAY PACKAGING INC., a Delaware corporation ("PACKAGING") (each a
"PLEDGOR" and collectively, the "PLEDGORS"), and BANKERS TRUST COMPANY
("BANKERS"), as Collateral Agent for and representative of (in such capacity
herein called the "COLLATERAL AGENT") the Lenders (as hereinafter defined), the
Interest Rate Exchangers (as hereinafter defined), the Currency Exchangers (as
hereinafter defined), and, subject to the satisfaction of the Supplemental
Indenture Condition (as hereinafter defined), the trustees under the Existing
Senior Note Indentures (as hereinafter defined) (each, including any successor,
an "EXISTING SENIOR NOTE TRUSTEE" and collectively, the "EXISTING SENIOR NOTE
TRUSTEES"), the Other Permitted Credit Exposure Holders (as hereinafter
defined), the New Senior Debt Representatives (as hereinafter defined), the
Refinancing Senior Debt Representatives (as hereinafter defined) and the New
Junior Debt Representatives (as hereinafter defined). Initially capitalized
terms used herein without definition are defined in the Credit Agreement (as
hereinafter defined).

                                 R E C I T A L S

      1. The Lenders have entered into a Secured Credit Agreement of even date
herewith (as such agreement may hereafter be amended, supplemented or otherwise
modified from time to time, the "CREDIT AGREEMENT," which term shall also
include and refer to any successor or replacement facility of Company or its
Subsidiaries designated in writing as such by Borrowers' Agent with Collateral
Agent's consent and acknowledgement of the termination of the predecessor Credit
Agreement by an agent for the lenders thereunder) with certain subsidiaries of
Company and Packaging as Borrowers (the "BORROWERS") and with Company as
guarantor pursuant to Section 9 thereof and Owens-Illinois General, Inc., as
Borrowers' Agent. In addition, in connection therewith, Packaging has executed a
guaranty (the "SUBSIDIARY Guaranty") of all Obligations as defined in and now or
hereafter existing under or in respect of the Credit Agreement (collectively,
the "OBLIGATIONS").

      2. Company is the legal and beneficial owner of (i) the shares of stock
described in PART I of SCHEDULE I hereto (the "COMPANY PLEDGED SHARES") issued
by the corporations named therein, which shares constitute the percentage of all
of the issued and outstanding shares of all classes of capital stock of such
companies identified in PART I of said SCHEDULE I, and (ii) the indebtedness
described in PART II of said SCHEDULE I (the "COMPANY PLEDGED DEBT") issued by
the obligors named therein. Packaging is the legal and beneficial owner of (i)
the shares of stock described in PART I of SCHEDULE II hereto (the "PACKAGING
PLEDGED SHARES") issued by the corporation named therein, which shares
constitute the percentage of all of the issued and outstanding shares of all
classes of capital stock of such company identified in PART I of said SCHEDULE
II, and (ii) the indebtedness described in PART II of said SCHEDULE II (the
"PACKAGING PLEDGED DEBT") issued by the obligor named therein (collectively, the
Company Pledged Shares and the Packaging Pledged Shares are referred to herein
as the "PLEDGED SHARES," and the Company Pledged Debt and the Packaging Pledged
Debt are referred to herein as the "PLEDGED DEBT").

<Page>

      3. Owens-Illinois, Inc., a Delaware corporation ("HOLDINGS"), and the
Existing Senior Note Trustees have entered into the Indentures dated as of May
15, 1997 and May 20, 1998 (each, as amended, supplemented or otherwise modified
from time to time, an "EXISTING SENIOR NOTE INDENTURE" and collectively, the
"EXISTING SENIOR NOTE INDENTURES") pursuant to which Holdings has issued the
following senior notes and debentures (collectively, the "EXISTING SENIOR
NOTES"): (i) the 7.85% Senior Notes due 2004 in the aggregate principal amount
of $300,000,000; (ii) the 7.15% Senior Notes due 2005 in the aggregate principal
amount of $350,000,000; (iii) the 8.10% Senior Notes due 2007 in the aggregate
principal amount of $300,000,000; (iv) the 7.35% Senior Notes due 2008 in the
aggregate principal amount of $250,000,000; (v) the 7.50% Senior Debentures due
2010 in the aggregate principal amount of $250,000,000; and (vi) the 7.80%
Senior Debentures due 2018 in the aggregate principal amount of $250,000,000.

      4. If the Supplemental Indenture Condition has been satisfied, the Company
and Packaging may guaranty the obligations of Holdings under the Existing Senior
Note Indentures and the Existing Senior Notes issued thereunder pursuant to
subordinated guaranties (the "EXISTING SENIOR NOTES SUBORDINATED Guaranty").

      5. It is contemplated that, from time to time Subsidiaries of Company may
incur obligations to Lenders or affiliates of Lenders arising out of loans,
advances, overdrafts, interest rate, currency or hedge products and other
derivative exposures or extensions of credit to the extent permitted under the
Credit Agreement ("OTHER PERMITTED CREDIT EXPOSURE"). Company and Packaging have
guarantied such Other Permitted Credit Exposure pursuant, and subject, to
Section 9 of the Credit Agreement and the Subsidiary Guaranty, respectively.
Each Holder of any such Other Permitted Credit Exposure is referred to herein as
an "OTHER PERMITTED CREDIT EXPOSURE HOLDER" and, collectively, all such Holders
are referred to as "OTHER PERMITTED CREDIT EXPOSURE HOLDERS"). The documents and
instruments evidencing or relating to any such Other Permitted Credit Exposure
are referred to as the "OTHER PERMITTED CREDIT EXPOSURE DOCUMENTS."

      6. It is contemplated that, from time to time to the extent permitted by
the Credit Agreement, Company and/or Packaging may issue or guaranty certain New
Senior Debt (as defined in the Credit Agreement). Any indenture, debenture,
note, guaranty or other document executed by Company or Packaging in connection
with the issuance of any such New Senior Debt is referred to herein as a "NEW
SENIOR DEBT DOCUMENT" individually and the "NEW SENIOR DEBT DOCUMENTS"
collectively. Any trustee or like representative of the holders of any such New
Senior Debt is referred to herein as a "NEW SENIOR DEBT REPRESENTATIVE."

      7. It is contemplated that, from time to time to the extent permitted by
the Credit Agreement, Holdings may issue on a senior basis, and Company and/or
Packaging may issue or guaranty on a subordinated basis, certain Refinancing
Senior Debt (as defined in the Credit Agreement). Any indenture, debenture,
note, guaranty or other document executed by Holdings, Company or Packaging in
connection with the issuance of any such Refinancing Senior Debt is referred to
herein as a "REFINANCING SENIOR DEBT DOCUMENT" individually and the "REFINANCING
SENIOR DEBT DOCUMENTS" collectively. Any trustee or like representative of the
holders of any such Refinancing Senior Debt is referred to herein as a
"REFINANCING SENIOR DEBT REPRESENTATIVE."

                                       2
<Page>

      8. It is contemplated that, from time to time to the extent permitted by
the Credit Agreement, Holdings, Company and/or Packaging may issue or guaranty
certain New Junior Debt (as defined in the Credit Agreement). Any indenture,
debenture, note, guaranty or other document executed by Holdings, Company or
Packaging in connection with the issuance of any such New Junior Debt is
referred to herein as a "NEW JUNIOR DEBT DOCUMENT" individually and the "NEW
JUNIOR DEBT DOCUMENTS" collectively. Any trustee or like representative of the
holders of any such New Junior Debt is referred to herein as a "NEW JUNIOR DEBT
REPRESENTATIVE."

      9. It is contemplated that Company may from time to time, assume from
Holdings or enter into Interest Rate Agreements and Currency Agreements with one
or more Lenders or their respective affiliates (collectively, the "INTEREST RATE
EXCHANGERS" or the "CURRENCY EXCHANGERS," as the case may be, and the
obligations under such agreements, including the obligation to make payments in
the event of early termination thereunder being the "INTEREST RATE Obligations"
or the "CURRENCY OBLIGATIONS," as the case may be). Such Interest Rate
Obligations and Currency Obligations are guarantied pursuant to Company's
guaranty under the Credit Agreement and Packaging's Subsidiary Guaranty.

      10. The Pledgors wish to pledge and grant security interests in the
Pledged Collateral in favor of the Collateral Agent for the benefit of the
Lenders, the Other Permitted Credit Exposure Holders, the Interest Rate
Exchangers, the Currency Exchangers, and the holders of any New Senior Debt and
the New Senior Debt Representatives (collectively, the "SENIOR SECURED
PARTIES"), for the benefit of the Refinancing Senior Debt Representatives and,
only if the Supplemental Indenture Condition has been satisfied, the holders of
the Existing Senior Notes and the Existing Senior Note Trustees and
(collectively, the "SECOND PRIORITY SECURED PARTIES") and for the benefit of the
holders of any New Junior Debt and the New Junior Debt Representatives (the
"THIRD PRIORITY SECURED PARTIES"; the Senior Secured Parties and the Second
Priority Secured Parties and the Third Priority Secured Parties being
collectively referred to herein as the "SECURED PARTIES"); "SUPPLEMENTAL
INDENTURE CONDITION" means the Existing Senior Note Trustees and Holdings, the
Company and Packaging have executed and delivered one or more supplemental
indentures which effect amendments to the Existing Senior Note Indentures with
respect to each series of Existing Senior Notes to provide for the Existing
Senior Notes Subordinated Guaranty and certain terms and conditions relating to
the Pledged Collateral, which supplemental indentures shall be in form and
substance satisfactory to and approved by the Agent and shall not be amended,
amended and restated or otherwise modified except as permitted by the Credit
Agreement.

      11. Concurrently herewith, the Collateral Agent and the current Other
Permitted Credit Exposure Holders have entered into an Intercreditor Agreement
(such Intercreditor Agreement as it may hereafter be amended, amended and
restated or otherwise modified from time to time being the "INTERCREDITOR
AGREEMENT") which provides for, INTER, ALIA, the ----- ---- appointment of the
Collateral Agent to administer the Pledged Collateral. Any New Senior Debt
Representative, Refinancing Senior Debt Representative, New Junior Debt
Representative, Interest Rate Exchanger, Currency Exchanger, and any future
Other Permitted Credit Exposure Holder shall only be entitled to the benefits of
this Agreement if such Person shall have executed and delivered to the
Collateral Agent a counterpart of the Intercreditor Agreement or an
acknowledgment to the Intercreditor Agreement (in the form attached thereto)

                                       3
<Page>

acknowledged by the Pledgors or Borrower's Agent, and, in the case of the
Existing Senior Note Trustees and the Existing Senior Note holders, if the
Supplemental Indenture Condition has been satisfied.

      NOW, THEREFORE, in consideration of the premises the parties hereto agree
as follows:

SECTION 1. PLEDGES.

      1.1   SENIOR PLEDGE

            A. BY COMPANY. Company hereby pledges to the Collateral Agent and
grants to the Collateral Agent for the ratable benefit of the Senior Secured
Parties a first priority security interest in the following (the "COMPANY
PLEDGED COLLATERAL") to secure the Senior Secured Obligations (as defined in
SECTION 2):

            (a) the Company Pledged Shares and the certificates representing the
      Company Pledged Shares and any interest of Company in the entries on the
      books of any financial intermediary pertaining to the Company Pledged
      Shares, and, subject to SECTION 6, all dividends, cash, options, warrants,
      rights, instruments and other property or proceeds from time to time
      received, receivable or otherwise distributed in respect of or in exchange
      for any or all of the Company Pledged Shares;

            (b) all additional shares of stock of any issuer of the Company
      Pledged Shares from time to time acquired by Company in any manner (which
      shares shall be deemed to be part of the Company Pledged Shares), and the
      certificates representing such additional shares and any interest of
      Company in the entries on the books of any financial intermediary
      pertaining to such additional shares, and, subject to SECTION 6, all
      dividends, cash, options, warrants, rights, instruments and other property
      or proceeds from time to time received, receivable or otherwise
      distributed in respect of or in exchange for any or all of such shares;

            (c) the Company Pledged Debt and the instruments evidencing the
      Pledged Debt, and all interest, cash instruments and other property from
      time to time received, receivable or otherwise distributed in respect of
      or in exchange for any or all of the Company Pledged Debt; and

            (d) all proceeds of any of the foregoing.

      B. BY PACKAGING. Packaging hereby pledges to the Collateral Agent and
grants to the Collateral Agent for the ratable benefit of the Senior Secured
Parties a first priority security interest in the following (the "PACKAGING
PLEDGED COLLATERAL") to secure the Senior Secured Obligations:

            (a) the Packaging Pledged Shares and the certificates representing
      the Packaging Pledged Shares and any interest of Packaging in the entries
      on the books of any financial intermediary pertaining to the Packaging
      Pledged Shares, and, subject to SECTION 6, all dividends, cash options,
      warrants, rights, instruments and other property or proceeds from

                                       4
<Page>

      time to time received, receivable or otherwise distributed in respect of
      or in exchange for any or all of the Packaging Pledged Shares;

            (b) all additional shares of stock of any issuer of the Packaging
      Pledged Shares from time to time acquired by Packaging in any manner
      (which shares shall be deemed to be part of the Packaging Pledged Shares),
      and the certificates representing such additional shares and any interest
      of Packaging in the entries on the books of any financial intermediary
      pertaining to such additional shares, and, subject to Section 6, all
      dividends, cash, options, warrants, rights, instruments and other property
      or proceeds from time to time received, receivable or otherwise
      distributed in respect of or in exchange for any or all of such shares;

            (c) the Packaging Pledged Debt and the instruments evidencing the
      Pledged Debt, and all interest, cash instruments and other property from
      time to time received, receivable or otherwise distributed in respect of
      or in exchange for any or all of the Packaging Pledged Debt; and

            (d) all proceeds of any of the foregoing.

The Company Pledged Collateral and the Packaging Pledged Collateral is referred
to herein collectively as the "PLEDGED COLLATERAL."

      1.2 SECOND PRIORITY PLEDGE. The Pledgors hereby pledge to the Collateral
Agent and grant to the Collateral Agent for the ratable benefit of the Second
Priority Secured Parties a second priority security interest in the Pledged
Collateral to secure the Second Priority Secured Obligations (as defined in
SECTION 2).

      1.3 THIRD PRIORITY PLEDGE. The Pledgors hereby pledge to the Collateral
Agent and grant to the Collateral Agent for the ratable benefit of the Third
Priority Secured Parties a third priority security interest in the Pledged
Collateral to Secure the Third Priority Secured Obligations (as defined in
SECTION 2).

SECTION 2. SECURED OBLIGATIONS; PRIORITY.

      2.1 SENIOR SECURED OBLIGATIONS. This Agreement secures, and the Pledged
Collateral is collateral security for, the prompt payment or performance in full
when due, whether at stated maturity, by acceleration or otherwise (including
the payment of amounts which would become due but for the operation of the
automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. ss.
362(a)), of all Obligations, all obligations of the Pledgors under any Other
Permitted Credit Exposure Documents, all obligations of either Pledgor or other
permitted obligor under any New Senior Debt Documents and all Interest Rate
Obligations and Currency Obligations now or hereinafter existing under or in
respect of the Interest Rate Agreements and the Currency Agreements, in each
case whether for principal, premium or interest (including, without limitation,
interest which, but for the filing of a petition in a bankruptcy, reorganization
or other similar proceeding with respect to the Pledgor, would accrue on such
obligations), payments for early termination, payments for settlement of amounts
due under any such agreement, fees, expenses or otherwise and all obligations of
either Pledgor or other permitted obligor now or hereafter existing under this
Agreement (all such obligations

                                       5
<Page>

being the "SENIOR SECURED OBLIGATIONS"); provided that the pledge made and
security interest granted in SECTION 1 and any other provisions of this
Agreement shall be effective as to any obligations in respect of any Other
Permitted Credit Exposure Documents, New Senior Debt Documents, Interest Rate
Agreements or Currency Agreements only if the holders of such obligations or
their representatives shall have executed and delivered to the Collateral Agent
a counterpart of the Intercreditor Agreement or an acknowledgment to the
Intercreditor Agreement (in the form attached thereto) acknowledged by the
Pledgors or Borrowers' Agent, as applicable. For purposes of determining the
amount of Senior Secured Obligations relating to any obligation with respect to
which a Person other than a Pledgor is the direct or primary obligor and with
respect to which a Pledgor is a guarantor (including by way of providing
security), the total amount of such Senior Secured Obligations shall be
calculated without duplication of the amount of such direct or primary
obligation secured by the Pledged Collateral and the related guaranty
obligations of the Pledgors secured by the Pledged Collateral.

      2.2 SECOND PRIORITY SECURED OBLIGATIONS. This Agreement secures, and the
Pledged Collateral is collateral security for, the prompt payment in full when
due, whether at stated maturity, by acceleration or otherwise (including amounts
which would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. ss. 362(a)), of all obligations of the
Pledgors now or hereafter existing under the Existing Senior Notes Subordinated
Guaranty and all obligations under the Existing Senior Note Indentures and the
Existing Senior Notes issued thereunder (only if the Supplemental Indenture
Condition has been satisfied) and all obligations of either Pledgor or other
permitted obligor under any Refinancing Senior Debt Documents in each case
whether for principal, premium, interest (including, without limitation,
interest which, but for the filing of a petition in a bankruptcy, reorganization
or other similar proceeding with respect to a Pledgor, would accrue on such
obligations), fees, expenses or otherwise, and all obligations of the Pledgors
now or hereafter existing under this Agreement (all such obligations being the
"SECOND PRIORITY SECURED OBLIGATIONS"); provided that the pledge made and
security interest granted in SECTION 1 and any other provisions of this
Agreement shall be effective as to any obligations in respect of any Refinancing
Senior Debt only if the holders of such obligation or a Refinancing Senior Debt
Representative shall have executed and delivered to the Collateral Agent a
counterpart of the Intercreditor Agreement or an acknowledgment to the
Intercreditor Agreement (in the form attached thereto) acknowledged by the
Pledgors or Borrowers' Agent, as applicable. For purposes of determining the
amount of Second Priority Secured Obligations relating to any obligation with
respect to which a Pledgor is a guarantor (including by way of providing
security), the total amount of such Second Priority Secured Obligations shall be
calculated without duplication of the amount of such direct or primary
obligation secured by the Pledged Collateral and the related guaranty
obligations of the Pledgors secured by the Pledged Collateral.

      2.3 THIRD PRIORITY SECURED OBLIGATIONS. This Agreement secures, and the
Pledged Collateral is collateral security for, the prompt payment in full when
due, whether at stated maturity, by acceleration or otherwise (including amounts
which would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. ss. 362(a)), of all obligations of the
Pledgors or other permitted obligors now or hereafter existing under any New
Junior Debt Documents, whether for principal, premium, interest (including,
without limitation, interest which, but for the filing of a petition in a
bankruptcy, reorganization or other similar proceeding with respect to a
Pledgor, would accrue on such obligations), fees,

                                       6
<Page>

expenses or otherwise, and all obligations of the Pledgors now or hereafter
existing under this Agreement (all such obligations being the "THIRD PRIORITY
SECURED OBLIGATIONS"); provided that the pledge made and the security interest
granted in SECTION 1 and any other provisions of this Agreement shall be
effective as to any obligations in respect of New Junior Debt only if the
holders of any such obligation or an applicable New Junior Debt Representative
shall have executed and delivered to the Collateral Agent a counterpart of the
Intercreditor Agreement or an acknowledgment to the Intercreditor Agreement (in
the form attached thereto) acknowledged by the Pledgors. For purposes of
determining the amount of Third Priority Secured Obligations relating to any
obligation with respect to which a Pledgor is a guarantor (including by way of
providing security), the total amount of such Third Priority Secured Obligations
shall be calculated without duplication of the amount of such direct or primary
obligation secured by the Pledged Collateral and the related guaranty
obligations of the Pledgors secured by the Pledged Collateral. The Senior
Secured Obligations, the Second Secured Obligations and the Third Priority
Secured Obligations collectively are referred to herein as the "SECURED
OBLIGATIONS".

      2.4 RIGHTS IN PLEDGED COLLATERAL. Notwithstanding anything to the contrary
contained in the Credit Agreement, any Other Permitted Credit Exposure Document,
Currency Agreement, Interest Rate Agreement, New Senior Debt Document, Existing
Senior Note Indenture, Existing Senior Notes Subordinated Guaranty, Refinancing
Senior Debt Document or New Junior Debt Document, and irrespective of:

            (a) the time, order or method of attachment or perfection of the
      security interests created hereby;

            (b) the time or order of filing or recording of financing statements
      or other documents filed or recorded to perfect security interests in any
      Pledged Collateral, and

            (c) the rules for determining priority under the Uniform Commercial
      Code or any other law or rule governing the relative priorities of secured
      creditors,

any security interest in any Pledged Collateral heretofore or hereafter granted
to secure any Senior Secured Obligation has and shall have priority, to the
extent of any unpaid Senior Secured Obligations, over any security interest in
such Pledged Collateral granted to secure the Second Priority Secured
Obligations or the Third Priority Secured Obligations, and any security interest
in any Pledged Collateral heretofore or hereafter granted to secure any Second
Priority Secured Obligation has and shall have priority, to the extent of any
unpaid Second Priority Secured Obligations, over any security interest in such
Pledged Collateral granted to secure the Third Priority Secured Obligations.

SECTION 3. DELIVERY OF PLEDGED COLLATERAL.

      3.1 All certificates or instruments representing or evidencing the Pledged
Collateral shall be delivered to and held by or on behalf of the Collateral
Agent pursuant hereto and shall be in suitable form for transfer by delivery, or
shall be accompanied by duly executed instruments of transfer or assignment in
blank, all in form and substance satisfactory to the Collateral Agent. The
Collateral Agent shall have the right, at any time upon or after the occurrence
of an Event of Default (as defined in SECTION 11) and without notice to either
Pledgor, to transfer to or to register in the name of the Collateral Agent or
any of its nominees any or all of the Pledged

                                       7
<Page>

Collateral. In addition, the Collateral Agent shall have the right at any time
to exchange certificates or instruments representing or evidencing Pledged
Collateral for certificates or instruments of smaller or larger denominations.

SECTION 4. REPRESENTATIONS AND WARRANTIES

      4.1 BY COMPANY. Company hereby represents and warrants to the Collateral
Agent and each Secured Party as follows:

            (a) Company is, and at the time of delivery of any Company Pledged
      Collateral to the Collateral Agent pursuant to SECTION 3 will be, the
      legal and beneficial owner of the Company Pledged Collateral free and
      clear of any Lien except for the liens and security interests created by
      this Agreement.

            (b) Company has full power, authority and legal right to pledge all
      the Company Pledged Collateral pursuant to this Agreement.

            (c) No consent of any other party (including, without limitation,
      stockholders or creditors of Company) and no consent, authorization,
      approval or other action by, and no notice to or filing with, any
      governmental authority or regulatory body is required either (x) for the
      pledge by Company of the Company Pledged Collateral pursuant to this
      Agreement or for the execution, delivery or performance of this Agreement
      by Company or (y) for the exercise by the Collateral Agent of the voting
      or other rights provided for in this Agreement or the remedies in respect
      of the Company Pledged Collateral pursuant to this Agreement; except (a)
      for foreign governmental actions, notices or filings required for actions
      referred to in clauses (x) and (y) as to Company Pledged Shares issued by
      corporations which own, directly or indirectly, the stock of Foreign
      Entities and (b) as may be required in connection with such disposition by
      laws affecting the offering and sale of securities generally.

            (d) All of the Company Pledged Shares have been duly authorized and
      validly issued and are fully paid and non-assessable. The Company Pledged
      Debt has been duly authorized, authenticated or issued and delivered, and
      is the legal, valid and binding obligation of the issuers thereof, and is
      not in default.

            (e) The pledge of the Company Pledged Shares and the Company Pledged
      Debt pursuant to this Agreement, together with delivery of the shares and
      notes, accompanied by duly executed instruments of transfer or assignment
      in blank and an effective endorsement, creates a valid and perfected first
      priority security interest in the Company Pledged Shares and the Company
      Pledged Debt securing the payment of the Senior Secured Obligations, a
      valid and perfected second priority security interest in the Company
      Pledged Shares and the Company Pledged Debt securing the payment of the
      Second Priority Secured Obligations, and a valid and perfected third
      priority security interest in the Company Pledged Shares and the Company
      Pledged Debt securing the payment of the Third Priority Secured
      Obligations.

            (f) As of the date hereof, the Company Pledged Shares consisting of
      capital stock of the Persons identified in PART I of SCHEDULE I annexed
      hereto constitute the percentage

                                       8
<Page>

      of the issued and outstanding shares of stock of such Persons as
      identified in PART I of SCHEDULE I annexed hereto. The Company Pledged
      Debt constitutes all of the issued and outstanding debt obligations owing
      to Company as of the date specified therein by the Persons identified in
      PART II of SCHEDULE I annexed hereto.

            (g) Except as otherwise permitted by the Credit Agreement, the
      Company at all times will be sole beneficial owner of the Company Pledged
      Collateral.

            (h) The pledge of the Company Pledged Collateral pursuant to this
      Agreement does not violate Regulations T, U or X of the Federal Reserve
      Board.

      4.2 BY PACKAGING. Packaging hereby represents and warrants to the
Collateral Agent and each Secured Party as follows:

            (a) Packaging is, and at the time of delivery of any Packaging
      Pledged Collateral to the Collateral Agent pursuant to SECTION 3 will be,
      the legal and beneficial owner of the Packaging Pledged Collateral free
      and clear of any Lien except for the lien and security interest created by
      this Agreement.

            (b) Packaging has full power, authority and legal right to pledge
      all the Packaging Pledged Collateral pursuant to this Agreement.

            (c) No consent of any other party (including, without limitation,
      stockholders or creditors of Packaging) and no consent, authorization,
      approval or other action by, and no notice to or filing with, any
      governmental authority or regulatory body is required either (x) for the
      pledge by Packaging of Packaging Pledged Collateral pursuant to this
      Agreement or for the execution, delivery or performance of this Agreement
      by Packaging or (y) for the exercise by the Collateral Agent of the voting
      or other rights provided for in this Agreement or the remedies in respect
      of the Packaging Pledged Collateral pursuant to this Agreement; except (a)
      for foreign governmental actions, notices or filings required for actions
      referred to in clauses (x) and (y) as to Packaging Pledged Shares issued
      by corporations which own, directly or indirectly, the stock of Foreign
      Entities and (b) as may be required in connection with such disposition by
      laws affecting the offering and sale of securities generally.

            (d) All of the Packaging Pledged Shares have been duly authorized
      and validly issued and are fully paid and non-assessable. The Packaging
      Pledged Debt has been duly authorized, authenticated or issued and
      delivered, and is the legal, valid and binding obligation of the issuers
      thereof, and is not in default.

            (e) The pledge of the Packaging Pledged Shares and the Packaging
      Pledged Debt pursuant to this Agreement, together with delivery of shares
      and notes, accompanied by duly executed instruments of transfer of
      assignment in blank and an effective endorsement, creates a valid and
      perfected first priority security interest in the Packaging Pledged Shares
      and the Packaging Pledged Debt securing the payment of the Senior Secured
      Obligations, a valid and perfected second priority security interest in
      the Packaging Pledged Shares and the Packaging Pledged Debt securing the
      payment of the Second Priority Secured Obligations and a valid and
      perfected third priority security

                                       9
<Page>

      interest in the Packaging Pledged Shares and the Packaging Pledged Debt
      securing the payment of the Third Priority Secured Obligations.

            (f) As of the date hereof, the Packaging Pledged Shares consisting
      of capital stock of the Persons identified in Part I of Schedule II
      annexed hereto constitute the percentage of the issued and outstanding
      shares of stock of such Persons as identified in Part I of Schedule II
      annexed hereto. The Packaging Pledged Debt constitutes all of the issued
      and outstanding Debt Obligations owing to Packaging as of the date hereof
      by the Persons identified in Part II of Schedule II annexed hereto.

            (g) Except as otherwise permitted by the Credit Agreement, Packaging
      at all times will be sole beneficial owner of the Packaging Pledged
      Collateral.

            (h) The pledge of the Packaging Pledged Collateral pursuant to this
      Agreement does not violate Regulations T, U or X of the Federal Reserve
      Board.

SECTION 5. SUPPLEMENTS, FURTHER ASSURANCES.

      5.1 Each Pledgor agrees that at any time and from time to time, at the
expense of such Pledgor, such Pledgor will promptly execute and deliver all
further instruments and documents, and take all further action, that may be
necessary or that the Collateral Agent may reasonably request, in order to
perfect and protect any security interest granted or purported to be granted
hereby or to enable the Collateral Agent to exercise and enforce its rights and
remedies hereunder with respect to any Pledged Collateral.

      5.2 Each Pledgor further agrees that it will, upon obtaining any shares of
any Person required to be pledged pursuant to Section 1.1A(b) or 1.1(B)(b),
promptly (and in any event within five (5) Business Days) deliver to the
Collateral Agent a pledge amendment, duly executed by the Pledgor, in
substantially the form of SCHEDULE III hereto (a "PLEDGE AMENDMENT"), in respect
of the additional Pledged Shares which are to be pledged pursuant to this
Agreement. Each Pledgor hereby authorizes the Collateral Agent to attach each
Pledge Amendment to this Agreement and agrees that all Pledged Shares listed on
any Pledge Amendment delivered to the Collateral Agent shall for all purposes
hereunder be considered Pledged Collateral; provided, that, the failure of a
Pledgor to execute a Pledge Amendment with respect to any additional Pledged
Shares pursuant to this Agreement shall not impair the security interest of
Collateral Agent therein or otherwise adversely affect the rights and remedies
of Collateral Agent hereunder with respect thereto.

SECTION 6. VOTING RIGHTS; DIVIDENDS; ETC.

      6.1 As long as no Event of Default (as defined in SECTION 11) shall have
occurred and be continuing:

(a)   Pledgors shall be entitled to exercise any and all voting and other
      consensual rights pertaining to the Pledged Collateral or any part
      thereof for any purpose not inconsistent with the terms of this
      Agreement and the Credit Agreement; PROVIDED, HOWEVER, that each
      Pledgor shall give the Collateral Agent at least 5 days' prior written
      notice of the manner in which it intends to exercise any such right;
      PROVIDED, FURTHER,

                                       10
<Page>

      HOWEVER, that neither (i) the voting by a Pledgor of any Pledged Shares
      for, or a Pledgor's consent to, the election of directors at a regularly
      scheduled annual or other meeting of stockholders or with respect to
      incidental matters at any such meeting nor (ii) a Pledgor's consent to or
      approval of any action otherwise permitted under this Agreement and the
      Credit Agreement shall be deemed inconsistent with the terms of this
      Agreement or the Credit Agreement (including, without limitation,
      impairing in any material manner the Pledged Collateral or the material
      rights of any of the Secured Parties), within the meaning of this SECTION
      6.1(A), and no notice of any such voting or consent need be given to the
      Collateral Agent.

            (b) The Pledgors shall be entitled to receive and retain, and to
      utilize free and clear of the Lien of this Agreement, any and all
      dividends, distributions, principal and interest paid in respect of the
      Pledged Collateral; provided, however, that any and all dividends and
      other distributions in equity securities shall be, and shall be forthwith
      delivered to the Collateral Agent to hold as, Pledged Collateral and
      shall, if received by a Pledgor, be received in trust for the benefit of
      the Collateral Agent, be segregated from the other property or funds of
      such Pledgor, and be forthwith delivered to the Collateral Agent as
      Pledged Collateral in the same form as so received (with any necessary
      endorsement).

            (c) In order to permit the Pledgors to exercise the voting and other
      rights which they are entitled to exercise pursuant to SECTION 6.1(A)
      above and to receive the dividends, distributions, principal or interest
      payments which they are authorized to receive and retain pursuant to
      SECTION 6.1(B) above, the Collateral Agent shall, if necessary, upon
      written request of a Pledgor, from time to time execute and deliver (or
      cause to be executed and delivered) to such Pledgor all such proxies,
      dividend payment orders and other instruments as such Pledgor may
      reasonably request.

            (d) Upon the occurrence and during the continuance of an Event of
      Default:

                  (i) Upon written notice from the Collateral Agent to a
            Pledgor, all rights of such Pledgor to exercise the voting and other
            consensual rights which it would otherwise be entitled to exercise
            pursuant to SECTION 6.1(A) above shall cease, and all such rights
            shall thereupon become vested in the Collateral Agent which shall
            thereupon have the sole right to exercise such voting and other
            consensual rights during the continuance of such Event of Default.

                  (ii) Other than amounts to be used by a Pledgor to directly or
            indirectly make Holdings Ordinary Course Payments permitted to be
            paid pursuant to Section 6.5 of the Credit Agreement, all rights of
            a Pledgor to receive the dividends, distributions, principal and
            interest payments which it would otherwise be authorized to receive
            and retain pursuant to SECTION 6.1(B) above shall cease and all such
            rights shall thereupon become vested in the Collateral Agent who
            shall thereupon have the sole right to receive and hold as Pledged
            Collateral such dividends, distributions, principal and interest
            payments during the continuance of such Event of Default.

                                       11
<Page>

            (e) In order to permit the Collateral Agent to receive all dividends
      and other distributions to which it may be entitled under SECTION 6.1(D)
      above, to exercise the voting and other consensual rights which it may be
      entitled to exercise pursuant to SECTION 6.1(D) above, and to receive all
      dividends, distributions, principal and interest payments and other
      distributions which it may be entitled to receive under SECTION 6.1(B)
      above, each Pledgor shall, if necessary, upon written notice from the
      Collateral Agent, from time to time execute and deliver to the Collateral
      Agent appropriate proxies, dividend payment orders and other instruments
      as the Collateral Agent may reasonably request.

            (f) All dividends, distributions, principal and interest payments
      which are received by either Pledgor contrary to the provisions of SECTION
      6.1(D) above shall be received in trust for the benefit of the Collateral
      Agent, shall be segregated from other funds of such Pledgor and shall be
      forthwith paid over to the Collateral Agent as Pledged Collateral in the
      same form as so received (with any necessary endorsement).

SECTION 7. TRANSFERS AND OTHER LIENS; ADDITIONAL SHARES.

      7.1 TRANSFERS AND OTHER LIENS. Each Pledgor agrees that it will not,
except as permitted by the Credit Agreement (i) sell or otherwise dispose of, or
grant any option or warrant with respect to, any of the Pledged Collateral, (ii)
create or permit to exist any Lien upon or with respect to any of the Pledged
Collateral, except for the liens and security interests under this Agreement, or
(iii) permit any issuer of Pledged Shares to merge or consolidate unless all the
outstanding capital stock of the surviving or resulting corporation is, upon
such merger or consolidation, pledged hereunder and no cash, securities or other
property is distributed in respect of the outstanding shares of any other
constituent corporation; PROVIDED, HOWEVER, that in the event of an Asset Sale
permitted by the Credit Agreement wherein the assets subject to such Asset Sale
are Pledged Shares, the Collateral Agent shall release the Pledged Shares that
are the subject of such Asset Sale to the applicable Pledgor free and clear of
the lien and security interest under this Agreement (a) so long as any
Obligations remain outstanding under the Intercreditor Agreement, concurrently
with the receipt of advice from the Lender Agent (as defined in the Credit
Agreement) thereunder that arrangements satisfactory to it have been made for
delivery to it of the Net Asset Sale Proceeds of such Asset Sale to which the
Lenders, New Senior Debt holders and Other Permitted Credit Exposure Holders,
Interest Rate Exchangers and Currency Exchangers are entitled under the Credit
Agreement and the Intercreditor Agreement, (b) after such time as all
Obligations under the Credit Agreement have been paid in full and the Credit
Agreement and the Letters of Credit have terminated, in the event that any other
Secured Parties are entitled to receive any portion of the proceeds of such
Asset Sale, concurrently with the receipt of advice from the agent or trustee
for such Secured Parties that arrangements satisfactory to it have been made for
delivery to it of the amounts required to be paid to such Secured Parties out of
the proceeds of such Asset Sale, and (c) in the event no Secured Party is
entitled to receive any portion of the proceeds of such Asset Sale, concurrently
with the consummation of such Asset Sale; and provided, further, that
notwithstanding anything herein to the contrary, (x) the Collateral Agent shall
release Pledged Shares or other Pledged Collateral from the liens and security
interests of this Agreement as may be specified by the Lender Agent upon the
approval of the release of such Pledged Shares or other Pledged Collateral by
the requisite percentage of

                                       12
<Page>

Lenders under the Credit Agreement, and (y) the Collateral Agent shall release
Pledged Shares or other Pledged Collateral from the liens and security interests
of this Agreement, upon satisfaction of the conditions set forth in, and in
accordance with, SECTION 18, below.

      7.2 ADDITIONAL SHARES. Company agrees that it will (i) cause each issuer
of Company Pledged Shares not to issue any stock or other securities in addition
to or in substitution for the Company Pledged Shares issued by such issuer,
except to Company or as otherwise consented to by Requisite Lenders, and (ii)
pledge hereunder, immediately upon its acquisition (directly or indirectly)
thereof, any and all additional shares of stock or other equity securities of
each issuer of Company Pledged Shares. Packaging agrees that it will (i) cause
each issuer of Packaging Pledged Shares not to issue any stock or other
securities in addition to or in substitution for the Packaging Pledged Shares
issued by such issuer, except to Packaging or as otherwise consented to by
Requisite Lenders and (ii) pledge hereunder, immediately upon its acquisition
(directly or indirectly) thereof, any and all additional shares of stock or
other equity securities of each issuer of Packaging Pledged Shares.

SECTION 8. COLLATERAL AGENT APPOINTED ATTORNEY-IN- FACT.

            Each Pledgor hereby appoints the Collateral Agent such Pledgor's
attorney-in-fact, with full authority in the place and stead of such Pledgor and
in the name of such Pledgor or otherwise, from time to time in the Collateral
Agent's discretion to take any action and to execute any instrument which the
Collateral Agent may reasonably deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation, to receive, endorse
and collect all instruments made payable to such Pledgor representing any
dividend, interest payment or other distribution in respect of such Pledged
Collateral or any part thereof and to give full discharge for the same.

SECTION 9. COLLATERAL AGENT MAY PERFORM.

            If either Pledgor fails to perform any agreement contained herein
after receipt of a written request to do so from the Collateral Agent, the
Collateral Agent may itself perform, or cause performance of, such agreement,
and the reasonable expenses of the Collateral Agent, including the reasonable
fees and expenses of its counsel, incurred in connection therewith shall be
payable by the Pledgors under SECTION 13 hereof.

SECTION 10. REASONABLE CARE.

      The Collateral Agent shall be deemed to have exercised reasonable care in
the custody and preservation of the Pledged Collateral in its possession if the
Pledged Collateral is accorded treatment substantially equivalent to that which
the Collateral Agent, in its individual capacity, accords its own property
consisting of negotiable securities, it being understood that neither the
Collateral Agent nor any other Secured Party shall have responsibility for (i)
ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Pledged Collateral, whether
or not the Collateral Agent or any other Secured Party has or is deemed to have
knowledge of such matters, or (ii) taking any necessary steps (other than steps
taken in accordance with the standard of care set forth above to maintain
possession of

                                       13
<Page>

the Pledged Shares and Pledged Debt) to preserve rights against any Person with
respect to any Pledged Collateral.

SECTION 11. REMEDIES UPON DEFAULT; DECISIONS RELATING TO EXERCISE OF REMEDIES.

      11.1 REMEDIES UPON DEFAULT. Subject to SECTIONS 11.2 and 11.3, (i) if any
Event of Default under and as defined in the Credit Agreement, or (ii) after
such time as all Obligations shall have been paid in full and the Credit
Agreement and the Letters of Credit have terminated, and PROVIDED that the
Pledged Collateral then secures the payment and performance of any obligations
under any New Senior Debt Documents, any obligations under any Other Permitted
Credit Exposure Documents, any Interest Rate Obligations or any Currency
Obligations, if any event of default under (A) any Interest Rate Agreement or
Currency Agreement which is secured by the Pledged Collateral, (B) any
obligations under any New Senior Debt Documents which are secured by the Pledged
Collateral, or (C) any obligations in respect of any Other Permitted Credit
Exposure Documents which are secured by the Pledged Collateral, as the case may
be, or (iii) after such time as all Senior Secured Obligations shall have been
indefeasibly paid in full, and PROVIDED that the Pledged Collateral then secures
the payment and performance of the Second Priority Secured Obligations, if any
event of default under any Existing Senior Note Indenture or any obligations
under any Refinancing Senior Debt Documents which are secured by the Pledged
Collateral or (iv) after such time as all Senior Secured Obligations and all
Second Priority Secured Obligations have been indefeasibly paid in full, and
provided that the Pledged Collateral then secures the payment and performance of
the Third Priority Secured Obligations, if any event of default under any New
Junior Debt Document (each of the events of default described in the foregoing
CLAUSES (I) through (IV) (subject to any provisos set forth therein) being
referred to herein as an "EVENT OF DEFAULT") shall have occurred and be
continuing:

            (a) The Collateral Agent may exercise in respect of the Pledged
      Collateral, in addition to other rights and remedies provided for herein
      or otherwise available to it, all the rights and remedies of a secured
      party on default under the Uniform Commercial Code (the "CODE") in effect
      in the State of New York at that time, and the Collateral Agent may also
      in its sole discretion, without notice except as specified below, sell the
      Pledged Collateral or any part thereof in one or more parcels at public or
      private sale, at any exchange, broker's board or at any of the Collateral
      Agent's offices or elsewhere, for cash, on credit or for future delivery,
      and at such price or prices and upon such other terms as the Collateral
      Agent may deem commercially reasonable, irrespective of the impact of any
      such sales on the market price of the Pledged Collateral. The Collateral
      Agent or any other Secured Party may be the purchaser of any or all of the
      Pledged Collateral at any such sale but shall not be entitled, for the
      purpose of bidding and making settlement or payment of the purchase price
      for all or any portion of the Pledged Collateral sold at such sale, to use
      and apply any of the Secured Obligations owed to such Person as a credit
      on account of the purchase price of any Pledged Collateral payable by such
      Person at such sale. Each purchaser at any such sale shall hold the
      property sold absolutely free from any claim or right on the part of
      either Pledgor, and each Pledgor hereby waives (to the extent permitted by
      law) all rights of redemption, stay and/or appraisal which it now has or
      may at any time in the future have under any rule of law or statute now
      existing or hereafter enacted. Each Pledgor agrees that, to the extent
      notice

                                       14
<Page>

      of sale shall be required by law, at least ten days' notice to such
      Pledgor of the time and place of any public sale or the time after which
      any private sale is to be made shall constitute reasonable notification.
      The Collateral Agent shall not be obligated to make any sale of Pledged
      Collateral regardless of notice of sale having been given. The Collateral
      Agent may adjourn any public or private sale from time to time by
      announcement at the time and place fixed therefor, and such sale may,
      without further notice, be made at the time and place to which it was so
      adjourned. Each Pledgor hereby waives any claims against the Collateral
      Agent arising by reason of the fact that the price at which any Pledged
      Collateral may have been sold at such a private sale was less than the
      price which might have been obtained at a public sale, even if the
      Collateral Agent accepts the first offer received and does not offer such
      Pledged Collateral to more than one offeree.

            (b) Each Pledgor recognizes that, by reason of certain prohibitions
      contained in the Securities Act of 1933, as amended (the "SECURITIES
      Act"), and applicable state securities laws, the Collateral Agent may be
      compelled, with respect to any sale of all or any part of the Pledged
      Collateral, to limit purchasers to those who will agree, among other
      things, to acquire the Pledged Collateral for their own account, for
      investment and not with a view to the distribution or resale thereof. Each
      Pledgor acknowledges that any such private sales may be at prices and on
      terms less favorable to the Collateral Agent than those obtainable through
      a public sale without such restrictions (including, without limitation, a
      public offering made pursuant to a registration statement under the
      Securities Act), and, notwithstanding such circumstances, agrees that any
      private sale shall be deemed to have been made in a commercially
      reasonable manner and that the Collateral Agent shall have no obligation
      to engage in public sales and no obligation to delay the sale of any
      Pledged Collateral for the period of time necessary to permit the issuer
      thereof to register it for a form of public sale requiring registration
      under the Securities Act or under applicable state securities laws, even
      if such Pledgor would agree to do so.

            (c) If the Collateral Agent determines to exercise its right to sell
      any or all of the Pledged Collateral, upon written request, each Pledgor
      shall and shall cause each issuer of any Pledged Shares to be sold
      hereunder from time to time to furnish to the Collateral Agent all such
      information as the Collateral Agent may request in order to determine the
      number of shares and other instruments included in the Pledged Collateral
      which may be sold by the Collateral Agent as exempt transactions under the
      Securities Act and the rules of the Securities and Exchange Commission
      thereunder, as the same are from time to time in effect.

      11.2 DECISIONS RELATING TO EXERCISE OF REMEDIES. Notwithstanding anything
in this Agreement to the contrary, as provided in the Intercreditor Agreement,
the Collateral Agent shall exercise, or shall refrain from exercising, any
remedy provided for in SECTION 11 in accordance with the instructions of
Requisite Obligees (as defined in the Intercreditor Agreement) and the Interest
Rate Exchangers, the Currency Exchangers, any Other Permitted Credit Exposure
Holders, the holders of any New Senior Debt or any New Senior Debt
Representative, the holders of the Existing Senior Notes and any Existing Senior
Note Trustee, the holders of any Refinancing Senior Debt and any Refinancing
Senior Debt Representative and the holders of any New Junior Debt and any New
Junior Debt Representative shall be bound by such instructions;

                                       15
<Page>

and the sole rights of the Interest Rate Exchangers, the Currency Exchangers,
Other Permitted Credit Exposure Holders, the holders of any New Senior Debt,
holders of the Existing Senior Notes and the Existing Senior Note Trustees, the
holders of any Refinancing Senior Debt, and the holders of any New Junior Debt
and their respective representatives under this Agreement shall be to be secured
by the Pledged Collateral and to receive the payments provided for in SECTION 12
hereof.

      11.3 LIMITATIONS ON EXERCISE OF REMEDIES. Notwithstanding anything in this
Agreement to the contrary, as provided in the Intercreditor Agreement, (i) the
Collateral Agent shall not exercise any remedy provided for in SECTION 11 for
the purpose of realizing value on the Pledged Collateral to be applied to the
payment of the Second Priority Secured Obligations unless (a) such remedy is
concurrently being exercised for the purpose of realizing value on the Pledged
Collateral to be applied to the payment of the Senior Secured Obligations or (b)
all Senior Secured Obligations shall have been indefeasibly paid in full, and
(ii) the Collateral Agent shall not exercise any remedy provided for in SECTION
11 for the purpose of realizing value on the Pledged Collateral to be applied to
the payment of the Third Priority Secured Obligations unless (a) such remedy is
concurrently being exercised for the purpose of realizing value on the Pledged
Collateral to be applied to the payment of the Senior Secured Obligations and
the Second Secured Obligations or (b) all Senior Secured Obligations and all
Second Priority Secured Obligations shall have been indefeasibly paid in full.

      11.4 NO IMPAIRMENT OF SUBORDINATION IN RIGHT OF PAYMENTS. The
Intercreditor Agreement sets forth and any New Junior Debt Documents may set
forth certain agreements of the Pledgors, and the holders of the New Junior Debt
may be subject to certain obligations, which subordinate the right of payment of
such New Junior Debt to the prior payment of "Senior Indebtedness" or terms of
similar import. Notwithstanding anything in this Agreement to the contrary, such
agreements and obligations of the Pledgors and the holders of the New Junior
Debt shall not be impaired in any manner by the pledge of the Pledged
Collateral, the security interests granted by this Agreement or the exercise of
rights provided hereunder, and the rights of the holders of such "Senior
Indebtedness" shall not be impaired in any manner by any such action.

SECTION 12. APPLICATION OF PROCEEDS.

            After and during the continuance of an Event of Default, any cash
held by the Collateral Agent as Pledged Collateral and all cash proceeds
received by the Collateral Agent (all such cash being "PROCEEDS") in respect of
any sale of, collection from, or other realization upon all or any part of the
Pledged Collateral pursuant to the exercise by the Collateral Agent of its
remedies as a secured creditor as provided in SECTION 11 of this Agreement shall
be applied promptly from time to time by the Collateral Agent as follows:

            FIRST, to the payment of the costs and expenses of such sale,
      collection or other realization, including reasonable compensation to the
      Collateral Agent and its agents and counsel, and all expenses, liabilities
      and advances made or incurred by the Collateral Agent in connection
      therewith;

                                       16
<Page>

            SECOND, to the payment of the Senior Secured Obligations (including
      any Aggregate Available Amount (as defined in the Security Agreement)
      deposits into the L/C Collateral Account for outstanding Letters of
      Credit, provided that if such Letters of Credit expire without being fully
      drawn, then at that time, such excess amounts shall be applied as provided
      in this SECTION 12 to then outstanding Senior Secured Obligations) for the
      ratable benefit of the holders thereof; PROVIDED that in making such
      application in respect of outstanding obligations under New Senior Debt
      Documents, the Collateral Agent shall be entitled to deduct from the share
      of such Proceeds otherwise payable to the New Senior Debt Representatives
      the New Senior Debt holders' pro rata share of all amounts that the
      Collateral Agent has been paid by the Paying Indemnifying Parties (such
      term being used in this SECTION 12 as defined in Section 7(c) of the
      Intercreditor Agreement) pursuant to Section 7(c) of the Intercreditor
      Agreement;

            THIRD, only after payment in full of all Senior Secured Obligations,
      to the payment of the Second Priority Secured Obligations for the ratable
      benefit of the holders thereof; PROVIDED, THAT, that in making such
      application to the Existing Senior Note Trustees, the Collateral Agent
      shall be entitled to deduct from the share of such Proceeds otherwise
      payable to the holders of the Existing Senior Notes such holders' pro rata
      share of all amounts that the Collateral Agent has been paid by the Paying
      Indemnifying Parties pursuant to Section 7(c) of the Intercreditor
      Agreement, PROVIDED, FURTHER, that in making such application in respect
      of obligations outstanding under Refinancing Senior Debt Documents, the
      Collateral Agent shall be entitled to deduct from the share of such
      Proceeds otherwise payable to the Refinancing Senior Debt Representatives
      such Refinancing Senior Debt holders' pro rata share of all amounts that
      the Collateral Agent has been paid by the Paying Indemnifying Parties
      pursuant to Section 7(c) of the Intercreditor Agreement;

            FOURTH, only after payment in full of all Senior Secured Obligations
      and all Second Priority Secured Obligations, to the payment of the Third
      Priority Secured Obligations for the ratable benefit of the holders
      thereof; PROVIDED, THAT, in making such application in respect of
      obligations outstanding under New Junior Debt Documents, the Collateral
      Agent shall be entitled to deduct from the share of such Proceeds
      otherwise payable to the New Junior Debt Representatives such New Junior
      Debt holders' pro rata share of all amounts that the Collateral Agent has
      been paid by the Paying Indemnifying Parties pursuant to Section 7(c) of
      the Intercreditor Agreement; and

            FIFTH, after payment in full of all Secured Obligations, to
      applicable Pledgor, or its successors or assigns, or to whomsoever may be
      lawfully entitled to receive the same or as a court of competent
      jurisdiction may direct, of any surplus then remaining from such Proceeds.

            At the time of any application of Proceeds by the Collateral Agent
pursuant to this SECTION 12, the Collateral Agent shall provide the Existing
Senior Note Trustees (only if the Supplemental Indenture Condition has been
satisfied) and any Other Permitted Credit Exposure Holder, New Senior Debt
Representative, Refinancing Senior Debt Representative and/or New Junior Debt
Representative with a certificate setting forth the total amount paid to the
Collateral Agent pursuant to Section 7(c) of the Intercreditor Agreement and a
calculation of the amounts,

                                       17
<Page>

if any, deducted from Proceeds paid to Existing Senior Note Trustees, Other
Permitted Credit Exposure Holders, New Senior Debt Representatives, Refinancing
Senior Debt Representatives or New Junior Debt Representatives, as the case may
be.

SECTION 13. EXPENSES.

      The Pledgors will upon demand pay to the Collateral Agent the amount of
any and all reasonable expenses, including the reasonable fees and expenses of
its counsel and of any experts and agents, which the Collateral Agent may incur
in connection with (i) the administration of this Agreement, (ii) the custody or
preservation of, or the sale of, collection from, or other realization upon, any
of the Pledged Collateral, (iii) the exercise or enforcement of any of the
rights of the Collateral Agent or any other Secured Party hereunder or (iv) the
failure by any Pledgor to perform or observe any of the provisions hereof. The
Pledgors' obligations under this SECTION 13 shall be joint and several.

SECTION 14. NO WAIVER.

      No failure on the part of the Collateral Agent to exercise, and no course
of dealing with respect to, and no delay in exercising, any right, power or
remedy hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise by the Collateral Agent of any right, power or remedy hereunder
preclude any other or further exercise thereof or the exercise of any other
right, power or remedy. The remedies herein provided are to the fullest extent
permitted by law cumulative and are not exclusive of any remedies provided by
law.

SECTION 15. COLLATERAL AGENT.

      The Collateral Agent has been appointed as Collateral Agent hereunder
pursuant to the Intercreditor Agreement by the Lender Agent and the current
Other Permitted Credit Exposure Holders and, in the event that any Existing
Senior Notes, future Other Permitted Credit Exposure, New Senior Debt, Interest
Rate Obligations, Currency Obligations, Refinancing Senior Debt, or New Junior
Debt are secured hereby, by each Other Permitted Credit Exposure Holder, New
Senior Debt Representative, each Interest Rate Exchanger, each Currency
Exchanger, each Refinancing Senior Debt Representative and each New Junior Debt
Representative executing a counterpart to the Intercreditor Agreement or, in the
case of Existing Senior Note Trustees, pursuant to the Existing Senior Note
Supplemental Indentures, and the Collateral Agent shall be entitled to the
benefits of the Intercreditor Agreement. The Collateral Agent shall be
obligated, and shall have the right, hereunder to make demands, to give notices,
to exercise or refrain from exercising any rights, and to take or refrain from
taking action (including, without limitation, the release or substitution of
Pledged Collateral) solely in accordance with this Agreement and the
Intercreditor Agreement. The Collateral Agent may resign and a successor
Collateral Agent may be appointed in the manner provided in the Intercreditor
Agreement. Upon the acceptance of any appointment as a Collateral Agent by a
successor Collateral Agent, that successor Collateral Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Collateral Agent under this Agreement, and the retiring
Collateral Agent shall thereupon be discharged from its duties and obligations
under this Agreement and shall deliver any Pledged Collateral in its possession
to the successor Collateral Agent. After any retiring Collateral Agent's
resignation,

                                       18
<Page>

the provisions of this Agreement shall inure to its benefit as to any actions
taken or omitted to be taken by it under this Agreement while it was Collateral
Agent. Anything contained in this Agreement to the contrary notwithstanding, in
the event of any conflict between the express terms and provisions of this
Agreement and the express terms and provisions of the Intercreditor Agreement,
such terms and provisions of the Intercreditor Agreement shall control.

SECTION 16. INDEMNIFICATION.

      Each Pledgor hereby agrees to indemnify the Collateral Agent for any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind and nature whatsoever which
may be imposed on, incurred by or asserted against the Collateral Agent in any
way relating to or arising out of this Agreement, the Intercreditor Agreement,
the Credit Agreement, the Subsidiary Guaranty, the Interest Rate Agreements, the
Currency Agreements, the Other Permitted Credit Exposure Documents, the Existing
Senior Notes, the Existing Senior Note Indentures, any Existing Senior Notes
Subordinated Guaranty, New Senior Debt Documents, Refinancing Senior Debt
Documents or New Junior Debt Documents or any other documents contemplated by or
referred to therein or the transactions contemplated thereby or the enforcement
of any of the terms hereof or of any such other documents or otherwise arising
or relating in any manner to the pledges, dispositions of Pledged Collateral or
proceeds of Pledged Collateral, or other actions of any nature with respect to
the Pledged Collateral contemplated hereunder and under the Intercreditor
Agreement to secure the payment of the Secured Obligations; PROVIDED, however,
that the Pledgor shall not be liable for any of the foregoing to the extent they
arise from the gross negligence or willful misconduct of the Collateral Agent or
failure by the Collateral Agent to exercise reasonable care in the custody and
preservation of the Pledged Collateral as provided in SECTION 10.

SECTION 17. AMENDMENTS, ETC.

      Prior to such time as all Senior Secured Obligations shall have been
indefeasibly paid in full and the Credit Agreement has terminated and all
Letters of Credit have been cancelled, this Agreement may not be amended,
modified or waived except with the written consent of the Pledgors, the
Collateral Agent and the Lender Agent and, solely with respect to an amendment
of SECTION 12, the relative ranking or the priority of the security interests
granted in SECTION 1, this SECTION 17, or the release of Pledged Collateral
except as herein provided, with the written consent of each Interest Rate
Exchanger (if the Pledged Collateral then secures such Interest Rate Exchanger),
each Currency Exchanger (if the Pledged Collateral then secures such Currency
Exchanger), Other Permitted Credit Exposure Holder (if the Pledged Collateral
then secures such Other Permitted Credit Exposure), any New Senior Debt
Representative (if the Pledged Collateral then secures the New Senior Debt), the
Existing Senior Note Trustees (if the Pledged Collateral then secures the
Existing Senior Notes) and any Refinancing Senior Debt Representative (if the
Pledged Collateral then secures Refinancing Senior Debt), in each case to the
extent such Secured Party is affected thereby in a manner adverse to such party;
PROVIDED that the written consent of the Lender Agent shall not be required if
the Obligations have been indefeasibly paid in full and the Credit Agreement has
terminated and all Letters of Credit have been cancelled; PROVIDED, FURTHER,
that if the Obligations have been indefeasibly paid in full and the Credit
Agreement has terminated and all Letters of Credit have been cancelled, the
written consent of the holders of a majority of the outstanding Interest Rate
Obligations, Currency

                                       19
<Page>

Obligations and New Senior Debt which are secured by the Pledged Collateral
shall be required to any amendment, modification or waiver of this Agreement;
PROVIDED, FURTHER, during such time as the Pledged Collateral secures only the
payment of the Second Priority Secured Obligations and Third Priority Secured
Obligations, this Agreement may not be amended, modified or waived except with
the written consent of the Pledgors, the Collateral Agent, the Existing Senior
Note Trustees (if the Pledged Collateral then secures the Existing Senior Notes)
and any Refinancing Senior Debt Representative (if the Pledged Collateral then
secures Refinancing Senior Debt) and PROVIDED, further, that during such time as
the Pledged Collateral secures only the payment of the Third Priority Secured
Obligations, this Agreement may not be amended, modified or waived except with
the written consent of the Pledgors, the Collateral Agent and any New Junior
Debt Representative (if the Pledged Collateral then secures any New Junior
Debt), PROVIDED, HOWEVER, that, notwithstanding the foregoing, no such written
consent of any party (other than the Lender Agent) shall be required with
respect to amendments, modifications or waivers necessary to permit the
incurrence of additional Indebtedness (including any successor or replacement
facility to the Credit Agreement) secured by the Pledged Collateral and entitled
to the benefits hereof insofar as the foregoing is not prohibited by the
applicable documents governing or evidencing the Secured Obligations, including
without limitation any amendments, modifications or waivers for the purpose of
adding appropriate references to additional parties in, and according such
parties the benefits of, any of the provisions hereof and designating such
parties as Senior Secured Parties (and the related obligations as Senior Secured
Obligations), Second Priority Secured Parties (and the related obligations as
Second Priority Secured Obligations) or Third Priority Secured Parties (and the
related obligations as Third Priority Secured Obligations), as applicable, in
connection with the incurrence of such indebtedness.

SECTION 18. TERMINATION.

            Upon the earlier to occur of (a) payment in full in cash of all
Senior Secured Obligations (excluding the Other Permitted Credit Exposure,
Interest Rate Obligations and Currency Obligations and obligations under or in
respect of the New Senior Debt Documents), the cancellation or termination of
the Commitments and the cancellation or expiration of all outstanding Letters of
Credit, and upon the written election of Pledgors, (b) the first date on which
the Pledged Collateral no longer secures the Obligations and upon written
election of Pledgors, and (c) the achievement of the Threshold Debt Rating and
acknowledgement of such ratings by Collateral Agent, the security interests
granted hereby and this Agreement shall terminate and all rights to the Pledged
Collateral shall revert to the applicable Pledgors, and the Collateral Agent
shall, upon the request and at the expense of the Pledgors, forthwith assign,
transfer and deliver, against receipt and without recourse to the Collateral
Agent, such of the Pledged Collateral as shall not have been sold or otherwise
applied pursuant to the terms hereof to or on the order of the Pledgors.

            Notwithstanding anything herein (including SECTION 20) to the
contrary, if all the Obligations have either been paid in full in cash or are no
longer secured by any of the Pledged Collateral, this Agreement shall be
terminable at the election of the Pledgors and upon the delivery of written
notice of such election to the Collateral Agent, this Agreement shall terminate
and the Collateral Agent shall, at the expense of the Pledgors, forthwith
assign, transfer and deliver against receipt and without recourse to the
Collateral Agent, such Pledged Collateral as

                                       20
<Page>

shall not have been sold or otherwise applied pursuant to the terms hereof to or
on the order of the Pledgors.

SECTION 19. ADDRESSES FOR NOTICES.

            All notices and other communications provided for hereunder shall be
in writing (including telegraphic or telecopy communication) and mailed,
telegraphed, telecopied or delivered, if to a Pledgor, addressed to it at the
address set forth on the signature page of this Agreement, if to the Collateral
Agent, addressed to it at the address set forth on the signature page of this
Agreement, if to the Lender Agent, addressed to it at the address set forth on
the signature page of the Credit Agreement, or as to any party at such other
address as shall be designated by such party in a written notice to each other
party complying as to delivery with the terms of this SECTION 19. All such
notices and other communications shall be effective when received.

SECTION 20. CONTINUING SECURITY INTEREST; TRANSFER OF NOTES.

            Subject to SECTION 18, this Agreement shall create a continuing
security interest in the Pledged Collateral and shall (i) remain in full force
and effect until indefeasible payment in full in cash of all Secured
Obligations, (ii) be binding upon the Pledgor, its successors and assigns, and
(iii) inure, together with the rights and remedies of the Collateral Agent
hereunder, to the benefit of the Collateral Agent and each other Secured Party
and each of their respective successors, transferees and assigns. Without
limiting the generality of the foregoing clause (iii) and subject to the
provisions of subsections 10.2 and 10.17 of the Credit Agreement, any Secured
Party may assign or otherwise transfer any indebtedness held by it secured by
this Agreement to any other person or entity, and such other person or entity
shall thereupon become vested with all the benefits in respect thereof granted
to such Secured Party herein or otherwise, subject, however, to the provisions
of the Intercreditor Agreement.

SECTION 21. GOVERNING LAW; TERMS.

            THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION
5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), EXCEPT AS
REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE CODE
REQUIRES THAT THE PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES
HEREUNDER, IN RESPECT OF ANY PARTICULAR PLEDGED COLLATERAL ARE GOVERNED BY THE
LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. Unless otherwise
defined herein or in the Credit Agreement, terms defined in Articles 8 and 9 of
the Code are used herein as therein defined.

SECTION 22. CONSENT TO JURISDICTION AND SERVICE OF PROCESS.

            All judicial proceedings brought against either Pledgor with respect
to this Agreement may be brought in any state or federal court of competent
jurisdiction in the State of

                                       21
<Page>

New York and by execution and delivery of this Agreement, each Pledgor accepts
for itself and in connection with its properties, generally and unconditionally,
the nonexclusive jurisdiction of the aforesaid courts, and irrevocably agrees to
be bound by any judgment rendered thereby in connection with this Agreement. The
Pledgors designate and appoint C T Corporation System, The Corporation Trust
Company, 1633 Broadway, New York, New York 10019 and such other Persons as may
hereafter be selected by the Pledgors, irrevocably agreeing in writing to so
serve, as its agent to receive on its behalf service of all process in any such
proceedings in any such court, such service being hereby acknowledged by each
Pledgor to be effective and binding service in every respect. A copy of any such
process so served shall be mailed by registered mail to the Pledgors at their
addresses referred to in SECTION 19, except that unless otherwise provided by
applicable law, any failure to mail such copy shall not affect the validity of
service of process. If any agent appointed by the Pledgors refuses to accept
service, each Pledgor hereby agrees that service upon it by mail shall
constitute sufficient notice. Nothing herein shall affect the right to serve
process in any other manner permitted by law or shall limit the right of the
Collateral Agent to bring proceedings against a Pledgor in the courts of any
other jurisdiction.

SECTION 23. SECURITY INTEREST ABSOLUTE.

            All rights of the Collateral Agent and security interests hereunder,
and all obligations of the Pledgors, hereunder shall be absolute and
unconditional irrespective of, and Pledgors hereby waive any and all defenses
that they may now or in the future have arising out of:

            (a) any lack of validity or enforceability of any of the Credit
      Agreement, any Interest Rate Agreement, any Currency Agreement, any Other
      Permitted Credit Exposure Guaranty, any of the Existing Senior Notes, any
      Existing Senior Notes Indenture, the Existing Senior Notes Subordinated
      Guaranty, any New Senior Debt Document, any Refinancing Senior Debt
      Document, any New Junior Debt Document, or any other agreement or
      instrument relating thereto;

            (b) any change in the time, manner or place of payment of, or in any
      other term of, all or any of the Secured Obligations, or any other
      amendment or waiver of or any consent to any departure from any of the
      Credit Agreement, Subsidiary Guaranty, any Interest Rate Agreement, any
      Currency Agreement, any Other Permitted Credit Exposure Document, the
      Existing Senior Note, any Existing Senior Note Indenture, any Existing
      Senior Notes Subordinated Guaranty, any New Senior Debt Document, any
      Refinancing Senior Debt Document, or any New Junior Debt Document;

            (c) any exchange, release or non-perfection of any other collateral,
      or any release or amendment or waiver of or consent to any departure from
      any guaranty, for all or any of the Secured Obligations; or

            (d) any other circumstance which might otherwise constitute a
      defense available to, or a discharge of, either Pledgor.

                                       22
<Page>

SECTION 24. WAIVER OF JURY TRIAL.

            EACH PLEDGOR AND COLLATERAL AGENT HEREBY AGREE TO WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT. The scope of this waiver is intended to be all
encompassing of any and all disputes that may be filed in any court and that
relate to the subject matter of this transaction, including without limitation,
contract claims, tort claims, breach of duty claims, and all other common law
and statutory claims. Each Pledgor and Collateral Agent acknowledge that this
waiver is a material inducement for each Pledgor and Collateral Agent to enter
into a business relationship, that each Pledgor and Collateral Agent have
already relied on this waiver in entering into this Agreement and that each will
continue to rely on this waiver in their related future dealings. Each Pledgor
and Collateral Agent further warrant and represent that each has reviewed this
waiver with its legal counsel, and that each knowingly and voluntarily waives
its jury trial rights following consultation with legal counsel. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING
(OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 24
AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.
In the event of litigation, this Agreement may be filed as a written consent to
a trial by the court.

SECTION 25. Counterparts.

            This Agreement may be executed in one or more counterparts and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument; signature pages may
be detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the same
document.

                  [Remainder of page intentionally left blank]

                                       23
<Page>

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

                                   PLEDGOR

                                   OWENS-ILLINOIS GROUP, INC.

                                   By  /s/ Jeffrey A. Denker
                                      ----------------------------------
                                   Title  Assistant Treasurer
                                         -------------------------------

                                   Notice Address:

                                      One Seagate
                                      Toledo, Ohio  43666
                                      Attention:  Treasurer

                                   PLEDGOR

                                   OWENS BROCKWAY PACKAGING INC.

                                   By  /s/ Jeffrey A. Denker
                                      ----------------------------------
                                   Title  Assistant Treasurer
                                         -------------------------------

                                   Notice Address:
                                      One Seagate
                                      Toledo, Ohio  43666
                                      Attention:  Treasurer

                                      S-1
<Page>

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

                                   COLLATERAL AGENT

                                   BANKERS TRUST COMPANY

                                   By   /s/ Mary Jo Jolly
                                      ----------------------------------
                                   Title  Assistant Vice President
                                        --------------------------------

                                   Notice Address:

                                      Bankers Trust Company
                                      130 Liberty Street, 14th Floor
                                      New York, New York  10006
                                      Attention:  Mary Jo Jolly

                                   with a copy to:

                                      Bankers Trust Company
                                      300 South Grand Avenue, 41st Floor
                                      Los Angeles, California 90071
                                      Attention:  Robert G. Kolb

                                       S-2

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