Document:

exv4w185

			
		 	EXHIBIT 4.185

EVERGREEN PACKAGING INTERNATIONAL B.V.

as Pledgor

and

THE BANK OF NEW YORK MELLON

as Collateral Agent

 

DISCLOSED PLEDGE OF BANK ACCOUNTS

 

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

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1. Definitions And Interpretation
	 	 	1	 
	2. Undertaking To Pledge And Parallel Debt
	 	 	5	 
	3. Pledge
	 	 	6	 
	4. Representations, Warranties And Covenants
	 	 	7	 
	5. Enforcement
	 	 	9	 
	6. Miscellaneous Provisions
	 	 	9	 
	7. Power To Transfer
	 	 	11	 
	8. Termination
	 	 	13	 
	9. No Liability
	 	 	13	 
	10. Governing Law And Jurisdiction
	 	 	14	 
	ANNEX I LIST OF ACCOUNTS
	 	 	16	 
	ANNEX II FORM OF NOTIFICATION
	 	 	17	 

 

 

THIS DEED is made by:

	(1)	 	EVERGREEN PACKAGING INTERNATIONAL B.V., a private company with limited liability (besloten
vennootschap met beperkte aansprakelijkheid), incorporated under the laws of The Netherlands,
having its corporate seat (statutaire zetel) in Amsterdam, The Netherlands and its registered
address at Teleportboulevard 140, 1043 EJ Amsterdam, The Netherlands, Chamber of Commerce
registration number 24321403 (the “Pledgor”); and

	(2)	 	THE BANK OF NEW YORK MELLON, a company, incorporated under the laws of the State of New York,
with registered office at One Wall Street, New York, New York, registered with the Internal
Revenue Service under number 13-5160382 in its capacity as collateral agent under the First
Lien Intercreditor Agreement, and its successors and permitted assigns in such capacity, (the
“Collateral Agent”).

IT IS HEREBY AGREED AS FOLLOWS:

	1.	 	DEFINITIONS AND INTERPRETATION

	1.1	 	Definitions

	 	1.1.1	 	Unless defined in this Deed or the context otherwise requires, a term
defined in the First Lien Intercreditor Agreement has the same meaning in this Deed or
any notice given under or in connection with this Deed.

	 	1.1.2	 	In addition the following terms shall have the following meaning:

	 	 	 	“Account” means any present and future bank account maintained by the Pledgor in
The Netherlands (including but limited to the bank accounts listed in Annex 1 (List
of Accounts));

	 	 	 	“Account Bank” means any financial institution with which the Pledgor (now or in
the future) maintains an Account;

	 	 	 	“Additional Agreement” has the meaning given to that term in the First Lien
Intercreditor Agreement;

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

	 	 	 	“Applicable Representative” has the meaning given to that term in the First Lien
Intercreditor Agreement;

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

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

	 	 	 	“Deed” means this deed of disclosed pledge of bank accounts;

	 	 	 	“Enforcement Event” means an “Event of Default” under, and as defined in, the First
Lien Intercreditor Agreement;

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

	 	 	 	“Intercreditor Arrangements” means the First Lien Intercreditor Agreement and any
other document that is designated by the Loan Parties’ Agent and the Collateral
Agent as an intercreditor agreement, in each case as amended, novated,
supplemented, restated, replaced or modified from time to time;
	 
	 	 	 	“Issuers” means the “Issuers” under, and as defined in, the Senior Secured Note
Indenture, including their successors in interest;
	 
	 	 	 	“Lien” has the meaning given to such term in the First Lien Intercreditor
Agreement;
	 
	 	 	 	“Loan Documents” means the “Credit Documents” under, and as defined in, the First
Lien Intercreditor Agreement and any other document designated by the Loan Parties’
Agent and the Collateral Agent as a Loan Document;
	 
	 	 	 	“Loan Parties” means the “Grantors” under, and as defined in, the First Lien
Intercreditor Agreement;

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	 	 	 	“Loan Parties’ Agent” means Reynolds Group Holdings Limited (formerly known as Rank
Group Holdings Limited);
	 
	 	 	 	“Parallel Debt” has the meaning ascribed thereto in Section 4.10 (Parallel Debt) of
the First Lien Intercreditor Agreement;
	 
	 	 	 	“Principal Finance Documents” means the Credit Agreement, the Senior Secured Note
Indenture, the Intercreditor Arrangements and any Additional Agreement;
	 
	 	 	 	“Principal Obligations” means all present and future obligations and liabilities
(whether actual or contingent and whether owed jointly or severally or in any other
capacity whatsoever) of each Loan Party and each grantor of a security interest to
the Secured Parties (or any of them) under each or any of the Loan Documents,
together with all costs, charges and expenses incurred by any Secured Party in
connection with the protection, preservation or enforcement of its respective
rights under the Loan Documents or any other document evidencing or securing any
such liabilities other than the obligations pursuant to the Parallel Debt;
	 
	 	 	 	“Rights” means all present and future rights (vorderingen) of the Pledgor vis-à-vis
any Account Bank;
	 
	 	 	 	“Secured Obligations” means all present and future obligations and liabilities
(whether actual or contingent and whether owed jointly or severally or in any other
capacity whatsoever) of each Loan Party and each grantor of a security interest to
the Collateral Agent under each or any of the Loan Documents, together with all
costs, charges and expenses incurred by the Collateral Agent in connection with the
protection, preservation or enforcement of its respective rights under the Loan
Documents or any other document evidencing or securing any such liabilities, in
each case, pursuant to the Parallel Debt and all Principal Obligations that are
secured obligations pursuant to Clause 3.1.2;
	 
	 	 	 	“Secured Parties” means the “Secured Parties” under, and as defined in, the First
Lien Intercreditor Agreement; and
	 
	 	 	 	“Senior Secured Note Indenture” means the Indenture dated 5 November, 2009, among
the Issuers, the Note Guarantors (as defined therein) and The Bank of New York
Mellon, as trustee, principal paying agent, transfer agent and registrar, as
amended, extended, restructured, renewed, refunded, novated, supplemented,
restated, replaced or modified from time to time.

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	1.2	 	Interpretation

	 	1.2.1	 	Continuing Security

	 	 	 	Any references made in this Deed to any Loan Document or to any
agreement or document (under whatever name), shall, where applicable, be
deemed to be references to (i) such Loan Document or such other agreement or
documents as the same may have been, or may at any time be, extended,
prolonged, amended, restated, supplemented, restructured, replaced, modified,
renewed or novated, as persons may accede thereto as a party or withdraw
therefrom as a party in part or in whole or be released thereunder in part or
in whole, and as facilities and financial services are or may at any time be
granted, extended, prolonged, increased, reduced, cancelled, withdrawn,
amended, restated, supplemented, restructured, replaced, modified, renewed or
novated thereunder including, without limitation, (a) any increase or
reduction in any amount available thereunder or any alteration of or addition
to the purpose for which any such amount, or increased or reduced amount may
be used, (b) any facility provided in substitution of or in addition to the
facilities originally made available thereunder, (c) any rescheduling of the
indebtedness incurred thereunder whether in isolation or in connection with
any of the foregoing, and (d) any combination of the foregoing and/or (ii) any
document designated as Loan Document in accordance with the Loan Documents,
and consequently, the rights of pledge created under and pursuant to this Deed
and any supplemental deed of pledge will secure any additional amounts which
are or may be made available or become payable under the Loan Documents from
time to time.

	 	1.2.2	 	Annex; Clause

	 	 	 	Except as otherwise specified, a reference in this Deed to an Annex or a Clause
shall be construed as a reference to such Annex to or Clause of this Deed.

	 	1.2.3	 	Construction

	 	(a)	 	This Deed is subject to the terms of the Intercreditor Arrangements. In the
event of a conflict between the terms of this Deed and the Intercreditor Arrangements,
the terms of the Intercreditor Arrangements will prevail, subject to the mandatory
provisions of Dutch law. This does not apply to the extent that the inconsistency
between the Intercreditor Arrangements and any term of this Deed that relates to
creation or perfection of the security, to applicable law or to choice of court, in
which case this Deed will prevail.

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	 	(b)	 	To the extent set out in Section 4.11 of the First Lien Intercreditor
Agreement, the Pledgor shall, notwithstanding any release or discharge of all or any
part of the security, indemnify the Collateral Agent, its agents, its attorneys, any
delegate and any trustee in bankruptcy (curator) or administrator (bewindvoerder)
against any action, proceeding, claims, losses, liabilities, expenses, demands, taxes,
and costs which it may sustain as a consequence of any breach by the Pledgor of the
provisions of this Deed, the exercise or purported exercise of any of the rights and
powers conferred on them by this Deed or otherwise relating to the Rights.

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

	1.3	 	Unlawful Financial Assistance

	 	 	No obligations shall be included in the definition of “Secured Obligations” to the extent
that, if included, the security interest granted pursuant to this Deed or any part thereof
would be void as a result of a violation of the prohibition on financial assistance as
contained in Articles 2:98c and 2:207c Dutch Civil Code or any other applicable financial
assistance rules under any relevant jurisdiction (the “Prohibition”) and all provisions
hereof will be construed accordingly. For the avoidance of doubt, this Deed will continue
to secure those obligations which, if included in the definition of “Secured Obligations”,
would not constitute a violation of the Prohibition.

	2.	 	UNDERTAKING TO PLEDGE AND PARALLEL DEBT

	2.1	 	Undertaking to Pledge

	 	 	The Pledgor has agreed, or, as the case may be, hereby agrees with the Collateral Agent
that it shall grant to the Collateral Agent a right of pledge (pandrecht) over the Rights,
as security for the payment of the Secured Obligations.

	2.2	 	Parallel Debt

	 	 	Pursuant to the Parallel Debt the Collateral Agent has its own claim in respect of the
payment obligations of the Loan Parties to the Secured Parties. With respect to this claim
the Collateral Agent acts in its own name and not as representative (vertegenwoordiger) of
the Secured Parties or any of them and consequently the Collateral Agent becomes the sole
pledgee (pandhouder) under this Deed.

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	3.	 	PLEDGE

	3.1	 	Pledge of Rights

	 	3.1.1	 	To secure the payment of the Secured Obligations the Pledgor hereby grants
to the Collateral Agent, subject to any Liens permitted under sub-section 6.02 (u)
(Banker’s Lien) of the Credit Agreement, a first ranking disclosed right of pledge
(openbaar pandrecht eerste in rang) over the Rights, which rights of pledge are hereby
accepted by the Collateral Agent.

	 	3.1.2	 	If and to the extent that at the time of the creation of this right of
pledge, or at any time hereafter, a Principal Obligation owed to the Collateral Agent
cannot be validly secured through the Parallel Debt, such Principal Obligation itself
shall be a Secured Obligation.

	 	3.1.3	 	In order to perfect the right of pledge created pursuant to Clause 3.1.1,
the Pledgor shall (on its own behalf and on behalf of the Collateral Agent) forthwith
notify the Account Banks (which for the avoidance of doubt also includes financial
institutions with which the Pledgor will open an Account in the future) of the right
of pledge created hereby by sending a notification (mededeling) to the Account Banks
(the “Notification”) by registered mail or as otherwise agreed with the Collateral
Agent substantially in the form of Annex 2 (Form of Notification) with a copy to the
Collateral Agent. The Collateral Agent is authorised to notify any Account Bank of the
right of pledge created hereby.

	 	3.1.4	 	The Collateral Agent hereby authorises the Pledgor to send the
Notifications on its behalf and to accept on behalf of the Collateral Agent any right
of pledge created over Rights after the date hereof, which authorisation permits the
Pledgor to (also) act as the Collateral Agent ‘s counterparty within the meaning of
Article 3:68 Dutch Civil Code.

	 	3.1.5	 	The Collateral Agent is entitled to present this Deed and any other
document pursuant hereto for registration to any office, registrar or governmental
body in any jurisdiction the Collateral Agent deems necessary or useful to protect its
interests.

	 	3.1.6	 	The Collateral Agent is entitled to register this Deed with the Tax
Authorities, pursuant to which an undisclosed right of pledge (stil pandrecht) will be
created over the Rights which have not already been validly pledged by way of
disclosed pledge. The Collateral Agent shall at all times be authorised to notify the
Account Banks of such undisclosed rights of pledge.

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	3.2	 	Withdrawal Rights

	 	 	The Collateral Agent hereby authorizes the Pledgor to pay into, receive, withdraw or
otherwise transfer any credit balance from time to time on any Account (as envisaged by
Article 3:246 paragraph 4 Dutch Civil Code) and to exercise all rights and powers in
respect of any Account (including the disposal or closing of such Account). The Collateral
Agent is entitled to revoke this authorisation if an Enforcement Event has occurred and is
continuing.

	4.	 	REPRESENTATIONS, WARRANTIES AND COVENANTS

	4.1	 	Representations and Warranties

	 	 	The Pledgor hereby represents and warrants to the Collateral Agent that the following is
true and correct on the date hereof and will be true and correct on each date an Account
Bank is notified pursuant to Clause 3.1.3:

	 	(a)	 	it is entitled to pledge the Rights as envisaged hereby;

	 	(b)	 	the right of pledge created hereby over the Rights is, subject to any Liens
permitted under sub-section 6.02 (u) (Banker’s Lien) of the Credit Agreement, a first
ranking right of pledge (pandrecht eerste in rang), its Rights have not been
encumbered with limited rights (beperkte rechten) or otherwise and no attachment
(beslag) on the Rights has been made, in each case, except as permitted by the
Principal Finance Documents;

	 	(c)	 	its Rights have not been transferred, encumbered or attached in advance, nor
has it agreed to such transfer or encumbrance in advance, in each case, except as
permitted by the Principal Finance Documents; and

	 	(d)	 	other than the Accounts listed in Annex 1 (List of Accounts) opposite its
name, it does not have any other bank accounts in The Netherlands.

	4.2	 	Covenants

	 	 	The Pledgor hereby covenants that, subject to the Agreed Security Principles, it will:

	 	(a)	 	other than as permitted under the terms of the Principal Finance Documents,
not release, settle or subordinate any Rights without the Collateral Agent’s prior
written consent (such consent not to be unreasonably withheld or delayed);

	 	(b)	 	at the Collateral Agent’s first request, as soon as practicable submit an
up-to-date overview listing the Rights and the balances of its Accounts in the form
designated by the Collateral Agent, which may include a print-

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	 	 	 	out and/or an electronic data carrier containing the relevant data provided that no
more than one request shall be made in any 12 month period unless an Enforcement
Event has occurred and is continuing;

	 	(c)	 	at its own expense execute all documents, exercise any right, power or
discretion exercisable and do all such acts as the Collateral Agent may reasonably
request for creating, perfecting, protecting or enforcing the rights of pledge
envisaged hereby;

	 	(d)	 	other than envisaged hereby, or as permitted under the terms of the other
Principal Finance Documents, not pledge, otherwise encumber or transfer any Rights,
whether or not in advance, or permit to subsist any kind of encumbrance or attachment
over the Rights;

	 	(e)	 	other than as permitted under the terms of the Principal Finance Documents
not perform any act that would affect the validity or enforceability of the security
under this Deed or cause an Event of Default to occur;

	 	(f)	 	as soon as practicable inform the Collateral Agent of any event or
circumstance which may be of importance to the Collateral Agent for the preservation
or exercise of the Collateral Agent’s rights pursuant hereto and provide the
Collateral Agent, upon its written request, with any other information in relation to
the (pledge of the) Rights as the Collateral Agent may from time to time request
acting reasonably, provided that no more than one request shall be made in any 12
month period unless an Enforcement Event has occurred and is continuing; and

	 	(g)	 	as soon as reasonably practicable inform in writing persons such as a
liquidator (curator) in bankruptcy, an administrator (bewindvoerder) in a
(preliminary) suspension of payment or persons making an attachment, of the existence
of the rights of the Collateral Agent pursuant hereto.

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	5.	 	ENFORCEMENT

	5.1	 	Any failure by the Pledgor to satisfy the Secured Obligations when due shall constitute a
default (verzuim) in the performance of the Secured Obligations, without any reminder letter
(sommatie) or notice of default (ingebrekestelling) being required.

	5.2	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent may enforce its
right of pledge and take recourse against the proceeds thereof.

	5.3	 	The Pledgor shall not be entitled to request the court to determine that the Rights pledged
pursuant hereto shall be sold in a manner deviating from the provisions of Article 3:250 Dutch
Civil Code.

	5.4	 	The Collateral Agent shall not be obliged to give notice to the Pledgor of any intention to
sell the pledged Rights (as provided in Article 3:249 Dutch Civil Code) or, if applicable, of
the fact that it has sold the same Rights (as provided in Article 3:252 Dutch Civil Code).

	5.5	 	All monies received or realised by the Collateral Agent in connection with the Rights shall
be applied by the Collateral Agent in accordance with the Intercreditor Arrangements, subject
to the mandatory provisions of Dutch law on enforcement (uitwinning).

	6.	 	MISCELLANEOUS PROVISIONS

	6.1	 	Waiver

	 	6.1.1	 	To the fullest extent allowed by applicable law, the Pledgor waives (doet
afstand van) any right it may have of first requiring the Collateral Agent to proceed
against or claim payment from any other person or enforce any guarantee or security
granted by any other person before exercising its rights pursuant hereto, which waiver
is hereby accepted by the Collateral Agent.

	 	6.1.2	 	The Pledgor hereby irrevocably and unconditionally waives (doet afstand
van) any rights granted to it under or pursuant to any Dutch law provisions for the
protection of grantors of security for the debts of third parties, including, to the
extent relevant, any rights it may have pursuant to Articles 3:233, 3:234 and 6:139
Dutch Civil Code, which waiver is hereby accepted by the Collateral Agent.

	 	6.1.3	 	The Pledgor hereby irrevocably and unconditionally waives (doet afstand
van), to the extent necessary in advance, any and all rights of recourse (regres) or
subrogation (subrogatie) vis-à-vis any Loan Party

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	 	 	 	that the Pledgor has or may obtain or acquire after the date of this Deed as a
result of any enforcement action in respect of the rights of pledge granted under
or in connection with this Deed (and, to the extent such waiver is not enforceable
in whole or in part, any rights of recourse or subrogation to which the Pledgor is
or may become entitled under or pursuant to enforcement of any rights of pledge
created under or pursuant to this Deed are hereby pledged to the Collateral Agent
by way of a non disclosed pledge governed by the terms of this Deed), which waiver
is hereby accepted by the Collateral Agent.

	6.2	 	Evidence of Indebtedness

	 	 	An excerpt from the Collateral Agent’s records shall serve as conclusive evidence (dwingend
bewijs) of the existence and the amounts of the Secured Obligations, subject to proof to
the contrary.

	6.3	 	Unenforceability

	 	 	The Pledgor and the Collateral Agent hereby agree that they will negotiate in good faith to
replace any provision hereof which may be held unenforceable with a provision which is
enforceable and which is as similar as possible in substance to the unenforceable
provision.

	6.4	 	Power of Attorney

	 	 	The Pledgor hereby grants an irrevocable power of attorney to the Collateral Agent and any
trustee in bankruptcy (curator) or administrator (bewindvoerder) severally provided always
that the Collateral Agent may only be entitled to exercise the power of attorney granted to
it by the Pledgor under this Clause 6.4 if (i) an Enforcement Event has occurred which is
continuing and/or (ii) the Collateral Agent has received notice from the Applicable
Representative, the Loan Parties’ Agent and/or the Pledgor that the Pledgor has failed to
comply with a further assurance or perfection obligation within 10 Business Days of being
notified of that failure (with a copy of that notice being sent to the Loan Party’s Agent)
authorising the Collateral Agent to execute on its behalf all documents and to perform all
such acts on behalf of the Pledgor as the Collateral Agent may deem necessary or useful in
order to have the full benefit of the rights (to be) granted to the Collateral Agent
pursuant hereto, including (i) the exercise of any ancillary rights (nevenrechten) as well
as any other rights it has in relation to the Rights and (ii) the performance of
obligations of the Pledgor hereunder, which authorisations permits the Collateral Agent to
(also) act as the Pledgor’s counterparty within the meaning of Article 3:68 Dutch Civil
Code. Provided further that the Collateral Agent shall not be obliged to exercise the power
of attorney granted to it by the Pledgor under this Clause 6.4 unless and

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	 	 	until it shall have been (a) instructed to do so by the Applicable Representative and (b)
indemnified and/or secured and/or prefunded to satisfaction.

	6.5	 	Delegation

	 	 	Subject to Section 4.05 of the First Lien Intercreditor Agreement (to the extent permitted
by Dutch law), each of the Collateral Agent and any trustee in bankruptcy (curator) or
administrator (bewindvoerder) shall have full power to delegate (either generally or
specifically) the powers, authorities and discretions conferred on it by this Deed
(including the power of attorney) on such terms and conditions as it shall see fit which
delegation shall not preclude either the subsequent exercise, any subsequent delegation or
any revocation of such power, authority or discretion by the Collateral Agent or any
trustee in bankruptcy (curator) or administrator (bewindvoerder) itself.

	6.6	 	Costs

	 	 	With respect to costs and expenses, Section 9.05 (Expenses; Indemnity) of the Credit
Agreement shall apply mutatis mutandis and the provisions thereof are incorporated here by
reference.

	7.	 	POWER TO TRANSFER

	7.1	 	The Collateral Agent is entitled to transfer all or part of its rights and/or obligations
pursuant hereto to any replacement collateral agent appointed in accordance with the First
Lien Intercreditor Agreement, to the extent such transfer is in accordance with the terms of
the First Lien Intercreditor Agreement, and each Pledgor hereby in advance gives its
irrevocable consent to and hereby in advance irrevocably co-operates with any such transfer
(within the meaning of Articles 6:156 and 6:159 Dutch Civil Code).

	7.2	 	The security constituted by this Deed shall be reassigned and re-transferred (as applicable):

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

	 	7.2.2	 	in accordance with, and to the extent required by, the Intercreditor
Arrangements (to the extent it is possible to give effect to such arrangements under
Dutch law) and the Pledgor hereby in advance gives its irrevocable consent to and
hereby in advance irrevocably co-operates
with any such transfer (within the meaning of Articles 6:156 and 6:159 Dutch Civil
Code).

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	7.3	 	If the Pledgor disposes of any Rights and that disposal is permitted by the Principal Finance
Documents, such Right shall, unless an Enforcement Event has occurred and is continuing, be
automatically released, re-assigned, re-transferred and cancelled (as applicable) from the
security constituted by this Deed with effect from the day of such disposal and the Collateral
Agent (at the expense and cost of the Pledgor) shall do all such acts which are reasonably
requested by the Pledgor in order to release, re-assign, re-transfer and cancel (as
applicable) the relevant Right from the security constituted by this Deed. Any or all of the
Rights shall also be released, re-assigned, re-transferred and cancelled (as applicable) in
accordance with and to the extent permitted by the Intercreditor Arrangements.

	7.4	 	Subject to Section 9.16 (Confidentiality) of the Credit Agreement and the terms of the other
Principal Finance Documents the Collateral Agent is entitled to impart any information
concerning the Pledgor or the Rights to any (proposed) transferee.

	8.	 	TERMINATION

	8.1	 	Unless terminated by operation of law, the Collateral Agent’s right of pledge created
pursuant hereto shall be in full force and effect vis-à-vis the Pledgor until it shall have
terminated, in part or in whole, as described in Clause 8.2 and Clause 8.3 below.

	8.2	 	The Collateral Agent will be entitled to terminate by notice (opzeggen) the right of pledge
created hereunder and pursuant hereto, in part or in whole, in respect of all or part of the
Rights and/or all or part of the Secured Obligations. If and insofar as the purported effect
of any such termination would require a waiver (afstand) by the Collateral Agent, such
termination shall be construed accordingly and the Pledgor hereby in advance agrees to such
waiver.

	8.3	 	The Collateral Agent’s right of pledge created pursuant hereto in respect of any or all of
the Rights shall be released and cancelled (a) by the Collateral Agent (acting on the
instructions of the Applicable Representative) at the request and cost of the Pledgor, upon
the Secured Obligations being irrevocably paid or discharged in full and none of the Secured
Parties being under any further actual or contingent obligation to make advances or provide
other financial accommodation to the Pledgor or any other person under any of the Loan
Documents, or (b) in accordance with, and to the extent required by, the Intercreditor
Arrangements (to the extent it is possible to give effect to such arrangements under Dutch
law).

	9.	 	NO LIABILITY

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	 	 	None of the Collateral Agent, its nominee(s) or any trustee in bankruptcy (curator) or
administrator (bewindvoerder) or delegate appointed pursuant to this Deed shall be liable
by reason of (a) taking any action permitted by this Deed or (b) any neglect or default in
connection with the Rights or (c) the taking possession or realisation of all or any part
of the Rights, except to the extent provided in the Principal Finance Documents.

	10.	 	GOVERNING LAW AND JURISDICTION

	10.1	 	This Deed is governed by and shall be interpreted in accordance with Dutch law. All disputes
arising from or in connection with this Deed shall be submitted to the competent court in
Amsterdam, without prejudice to the Collateral Agent’s right to submit any disputes to any
other competent court in The Netherlands or in any other jurisdiction.

	10.2	 	If a party to this Deed is represented by (an) attorney(s) in connection with the execution
of this Deed or any agreement or document pursuant hereto, and the relevant power of attorney
is expressed to be governed by Dutch law, such choice of law is hereby accepted by the other
party, in accordance with Article 14 of the ‘The Hague Convention on the Law Applicable to
Agency’ of 14 March 1978.

	10.3	 	Pursuant to Article 1:15 Dutch Civil Code the Pledgor hereby designates the offices of the
Company as such Pledgor’s domicile (woonplaats) for service of process in any proceedings in
connection with this Deed. This designation shall be without prejudice to any other method of
service of process permitted by law.

<<signature page to follow>>

- 13 -

 

This Deed has been executed on 4 May 2010 by:

EVERGREEN PACKAGING INTERNATIONAL B.V., as Pledgor

	 	 	 	 	 	 	 

	/s/ Chiara Brophy
 

Name: Chiara Brophy

	 	 
	 	/s/ Pru Wyllie
 

Name: Pru Wyllie
	 	 
	Title: Attorney

	 	 	 	Title: Attorney	 	 

THE BANK OF NEW YORK MELLON, as Collateral Agent

	 	 	 	 	 	 	 

	/s/ Catherine F. Donohue
 

Name: Catherine F. Donohue

	 	 
	 	 
Name:
	 	  
	Title: Vice President

	 	 	 	Title:	 	 

- 14 -

 

ANNEX I

LIST OF ACCOUNTS

	 	 	 	 	 	 	 
	Bank	 	 	 	Account	 	 
	name	 	Address/ Contact name	 	No.	 	Currency
	Bank of
America

	 	Kathleen Pecaut

901 Main Street, 10th floor, Dallas,

TX 75202, USA
	 	[_____________]
	 	EUR
	 
	 	 	 	 	 	 
	Bank of
America

	 	Kathleen Pecaut

901 Main Street, 10th floor, Dallas,

TX 75202, USA
	 	[_____________]

	 	USD

- 15 -

 

ANNEX II

FORM OF NOTIFICATION

From: Evergreen Packaging International B.V. (the “Pledgor”)

To: BY REGISTERED MAIL

[Amsterdam], [•] 2010

Dear Sir/Madam,

Notification of Pledge

We hereby (also on behalf of the Collateral Agent) notify you of the deed of disclosed pledge of
bank accounts between the Pledgor and The Bank of New York Mellon as pledgee (the “ Collateral
Agent ”) dated ___ May 2010 (the “Pledge of Bank Accounts”), in which a disclosed first ranking
right of pledge (openbaar pandrecht eerste in rang) is (to be) created over all our present and
future rights vis-à-vis yourselves, subject to any Liens permitted under Sub-Section 6.02(u)
(Banker’s Liens) of the Credit Agreement (as defined in the Pledge of Bank Accounts).

Capitalised terms used herein shall have the same meaning given thereto in the Pledge of Bank
Accounts.

Please be informed that pursuant to the Pledge of Bank Accounts we will remain authorised to
operate our accounts with you as normal in accordance with the mandates that currently exist in
respect of our accounts with you and consequently you are authorised to continue to execute our
payment instructions in connection with the above-mentioned accounts until this authorisation is
terminated.

By signing this letter for acknowledgement you release any right of pledge, and waive any right of
set-off and suspension in respect of the above-mentioned accounts.

To the extent necessary this letter shall serve as a supplemental deed of pledge in connection with
all our present and future Rights to which the provisions of the Pledge of Bank Accounts shall
apply mutatis mutandis. The Pledgor accepts the right of pledge created hereby on behalf of the
Collateral Agent.

Please sign the enclosed copy of this letter for acknowledgement of receipt.

Yours sincerely,

 

By: Evergreen Packaging International B.V. (also on behalf of the Collateral Agent)

- 16 -

 

Title:

For acknowledgement of receipt

[the Financial Institutions Listed in Annex 1 (List of Accounts)]

	 	 	 	 	 	 	 

	By: 
	 	 	By: 
	 
	 
	 	Title:

	 	 	Title:	 	 

- 17 -exv4w186

EXHIBIT 4.186

 

AMENDMENT TO THE QUOTA PLEDGE AGREEMENT 

Among

The Bank of New York Mellon

as Collateral Agent for the benefit of the Secured Parties under the First Lien Intercreditor

Agreement

Closure Systems International B.V. 

and

Closure Systems International Holdings Inc.

as Grantors

and

Closure Systems International (Brazil) Sistemas de Vedação Ltda.

as the Company

 

Dated as of

May 4, 2010

 

 

 

 

AMENDMENT TO THE QUOTA PLEDGE AGREEMENT 

This Amendment to the Quota Pledge Agreement (the “Amendment”) is made as of May 4, 2010 by
and among:

     (a) Closure Systems International B.V., a company, duly organized and existing in
accordance with the laws of the Netherlands, with its registered office at Teleportboulevard 140,
1043EJ Amsterdam, Netherlands, herein duly represented in accordance with its Charter Documents
(together with its successors and permitted assignees, “CSI B.V.”);

     (b) Closure Systems International Holdings Inc., a company duly incorporated and
existing under the laws of the State of Delaware, United States of America (“USA”) , with its head
office at National Registered Agents, Inc, 160 Greentree Drive, Suite 101, Dover DE 19904 and
principal place of business at 6641 West Broad Street, Richmond, VA, 23230, USA, herein duly
represented in accordance with its Charter Documents (together with its successors and permitted
assignees, “CSI Holdings” and together with CSI B.V., the “Grantors”);

     (c) The Bank of New York Mellon, a financial institution duly organized and existing
under the laws of the State of New York, with its registered office at One Wall Street, New York,
New York, acting exclusively in the capacity as collateral agent of and for the benefit of the
Secured Parties under the First Lien Intercreditor Agreement (together with its successors and
permitted assignees in such capacity, the “Collateral Agent”); and

     (d) Closure Systems International (Brazil) Sistemas de Vedação Ltda., a limited
liability company duly organized and existing in accordance with the laws of Brazil, with its
registered office in the City of Barueri, State of São Paulo, at Alameda Araguaia, no 1.819-1.889,
Sítio Tamboré, enrolled with the Brazilian Taxpayers Roll of the Ministry of Finance (CNPJ/MF)
under no 09.074.885/0001-48 (the “Company”).

     WHEREAS, on January 29, 2010, the parties hereto entered into the Quota Pledge Agreement (the
“Pledge Agreement”);

     WHEREAS, the following document (“Additional Document”) was entered into on the dates,
and by and among the parties, described below:

     Amendment No. 2 and Incremental Term Loan Assumption Agreement dated on or about the date of
this Amendment, entered into by and among, including others, Reynolds Group Holdings Inc., Reynolds
Consumer Products Holdings Inc., Closure Systems International Holdings Inc., SIG Euro Holding AG &
Co. KGaA, SIG Austria Holding GmbH, Closure Systems International B.V., Reynolds Group Holdings
Limited, the Guarantors from time to time party thereto, the Lenders from time to time party
thereto and Credit Suisse AG (formerly known as Credit Suisse), as administrative agent for the
Lenders, related to the Credit Agreement dated as of November 5, 2009, as amended by Amendment No.
1 dated as of January 21, 2010.

 

 

     WHEREAS, the parties recognize and agree that the security interest created under the Pledge
Agreement shall extend to secure the obligations created under the Additional Document
(“Additional Covered Obligations”).

     NOW, THEREFORE, in consideration of the foregoing premises and mutual covenants contained
herein, the parties hereto agree as follows:

     1. Defined Terms. Capitalized terms used and not otherwise defined in this Amendment
are used herein and in any notice given under this Amendment with the same meanings ascribed to
such terms in the Pledge Agreement and in the First Lien Intercreditor Agreement, as applicable.
All terms defined in this Amendment shall have the defined meanings contained herein when used in
any certificate or other document made or delivered pursuant hereto unless otherwise defined
therein.

     2. Amendment. The parties hereto agree to amend the description of the Secured
Obligations contained in Schedule A-I of the Pledge Agreement in order to adjust such description
to the Additional Covered Obligations. Accordingly, the parties hereto amend Schedule A-I of the
Pledge Agreement, which shall be in force and effect as of the date hereof with the following
language:

“Description of the Secured Obligations under the Loan Documents

A) All obligations owed to the Secured Parties now existing or hereafter arising, direct or
indirect, absolute or contingent, due or to become due, under the Loan Documents, including (and
without limitation): 

	 	(i)	 	a senior secured U.S. term loan facility in an aggregate principal amount not
in excess of US$1,035,000,000 with an interest rate equivalent to the Applicable Margin
plus (a) (i) the greater of 2.00% per annum and (ii) (x) the product of the LIBO Rate
in effect for such Interest Period and (y) Statutory Reserves or (b) the Alternate Base
Rate; which shall be repaid in full on May 5, 2016 (subject to prepayment and
acceleration provisions);
	 
	 	(ii)	 	a senior secured European term loan facility in an aggregate principal amount
of approximately €250,000,000 with an interest rate equivalent to the Applicable Margin
plus (a) (i) the greater of 2.00% per annum and (ii) (x) the EURIBO Rate in effect for
such Interest Period plus (y) Mandatory Cost or (b) the Foreign Base Rate; which shall
be repaid in full on November 5, 2015 (subject to prepayment and acceleration
provisions);
	 
	 	(iii)	 	a senior secured U.S. revolving loan facility in an aggregate principal amount
of approximately US$120,000,000, which principal amounts include sub-limits for letter
of credit facilities, and which have an interest rate equivalent to the Applicable
Margin plus (a) (i) the greater of 2.00% per annum and (ii) (x) the product of the LIBO
Rate in effect for such Interest Period and (y) Statutory

 

 

	 	 	 	Reserves or (b) the Alternate Base Rate; which shall be repaid in full on November
5, 2014 (subject to prepayment and acceleration provisions);
	 
	 	(iv)	 	a senior secured European revolving loan facility in an aggregate principal
amount of approximately €80,000,000, which principal amounts include sub-limits for
letter of credit facilities, and which have an interest rate equivalent to the
Applicable Margin plus (a) (i) the greater of 2.00% per annum and (ii) (x) the EURIBO
Rate in effect for such Interest Period plus (y) Mandatory Cost or (b) the Foreign Base
Rate; which shall be repaid in full on November 5, 2014 (subject to prepayment and
acceleration provisions); and
	 
	 	(v)	 	incremental loan facilities in a principal amount up to US$1,550,000,000 with
an interest rate equivalent, as applicable to the rates described in clauses (i)
through (iv) above, except as otherwise set forth in the Credit Agreement or in the
applicable Incremental Assumption Agreement, which shall be repaid in full as set forth
in the relevant Incremental Assumption Agreement.

B) all other obligations, advances, debts and liabilities owed to the Credit Agreement’s Secured
Parties, including indemnities, fees and interest incurred under, arising out of or in connection
with the Credit Agreement.

Definitions

For the purpose of this item “I” of this Schedule A all capitalized terms used and not
otherwise defined in this Agreement shall have the meaning ascribed to such terms in the Credit
Agreement.”

     3. Registration of this Amendment. The Grantor, at its expense, shall within 20
(twenty) days from the execution date of this Amendment, (i) cause the signature of the parties who
have signed this Amendment outside Brazil to be notarized by a public notary and consularized at
the local Brazil consulate, (ii) cause this Amendment to be translated into Portuguese by a sworn
translator (tradutor público juramentado), and (iii) have this Amendment, together with its sworn
translation (tradução juramentada) into Portuguese, annotated at the margin of the registration of
the Pledge Agreement with the competent Registry of Deeds and Documents (Cartório de Registro de
Títulos e Documentos) in Brazil pursuant to Article 128 of Law No. 6,015 of December 31, 1973.. The
Grantor shall, promptly after such registration deliver to the Collateral Agent evidence of such
registration in form and substance satisfactory to the Collateral Agent. All expenses incurred in
connection with such registrations shall be borne by the Grantor.

Notwithstanding the foregoing, the Collateral Agent, at its sole discretion, may decide to
undertake any of the registrations, translations, filings and other formalities described herein if

 

 

Grantor fails to do so, whereupon the Grantor shall reimburse the Collateral Agent promptly of any
and all costs and expenses incurred by it related to such registrations, translations, filings and
other formalities in accordance with the provisions of the Principal Finance Documents.

     4. Effectiveness of the Pledge Agreement. All the provisions of the Pledge Agreement
not expressly amended as a result of this Amendment shall remain in full force and effect.

     5. Security Document. The Parties agree that this Amendment shall be deemed a
“Security Document” for the purposes of and as defined in the First Lien Intercreditor Agreement
(and for no other purpose) and that, accordingly, all rights, duties, privileges, protections and
benefits of the Collateral Agent set forth in the First Lien Intercreditor Agreement are hereby
incorporated by reference.

     6. Governing Law; Jurisdiction. This Amendment shall be governed by and construed and
interpreted in accordance with the laws of Brazil. The parties irrevocably submit to the
jurisdiction of the courts sitting in the City of São Paulo, State of São Paulo, Brazil, any action
or proceeding to resolve any dispute or controversy related to or arising from this Amendment and
the parties irrevocably agree that all claims in respect of such action or proceeding may be heard
and determined in such courts, with the express waiver of the jurisdiction of any other court,
however privileged it may be.

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed in the presence of
the undersigned witnesses.

Closure Systems International B.V.

					
	 	
 	 
	By:	/s/ Guilherme Rodrigues Miranda
 	 
	 	Guilherme Rodrigues Miranda 	 
	 	Title:  	attorney-in-fact 	 
	 

Closure Systems International Holdings Inc

					
	 	
 	 
	By:	/s/ Guilherme Rodrigues Miranda
 	 
	 	 Guilherme Rodrigues Miranda 	 
	 	Title:  	attorney-in-fact 	 
	 

Closure Systems International (Brazil) Sistemas de Vedação Ltda.

					
	 	
 	 
	By:	/s/ Guilherme Rodrigues Miranda
 	 
	 	 Guilherme Rodrigues Miranda 	 
	 	Title:  	officer 	 

 

 

	 	 	 	 	 

The Bank of New York Mellon as Collateral Agent acting as agent of and for the benefit of
the Secured Parties

					
	 	
 	 
	By:	      /s/ Marcos Canecchio Ribeiro
 	 
	 	Marcos Canecchio Ribeiro 	 
	 	Title:  	attorney-in-fact 	 
	 

WITNESSES:

	 	 	 

	/s/ Robert Angelo Suarez
	 	 
	 

	 	 
	Name: Robert Angelo Suarez

	 	Name:
	ID: RG 29.071.311-2

	 	ID:
	CPF. 346-453-548-76

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