Document:

exv10wee

Exhibit
10(ee)

EXECUTION COPY

JOINT VENTURE AGREEMENT

by and among

GREIF, INC.

and

GREIF INTERNATIONAL HOLDING SUPRA C.V.

and

DABBAGH GROUP HOLDING COMPANY LIMITED

and

NATIONAL SCIENTIFIC COMPANY LIMITED

 

 

CONTENTS

	 	 	 	 	 
	Section	 	Page	 
	1. Governance and Management of Global Alliance Entities
	 	 	2	 
	1.1 Establishment of Global Alliance Entities’ Boards of Directors and
Designation of Chairmen
	 	 	2	 
	1.2 Responsibilities of Global Alliance Entity Boards of Directors
	 	 	4	 
	1.3 Voting Thresholds for Board Decision-Making; Certain Approvals
	 	 	4	 
	1.4 Meetings; Quorum; Notice
	 	 	7	 
	1.5 Designation of CEO/CFO
	 	 	9	 
	1.6 Fiduciary Duties
	 	 	10	 
	1.7 Indemnification
	 	 	11	 
	1.8 Distributions
	 	 	11	 
	1.9 Fiscal Year
	 	 	12	 
	1.10 Constituent Documents Interpretation
	 	 	12	 
	2. Cooperation; Non-Competition; Business Opportunities; Exclusivity
	 	 	12	 
	2.1 Strategic Plan and Operating Plan
	 	 	12	 
	2.2 Transfer Pricing Mechanism; EBITDA Equalization; Shared Services Fee; Acquisitions
	 	 	13	 
	2.3 IP Matters
	 	 	14	 
	2.4 Exclusivity
	 	 	14	 
	2.5 Business Opportunities
	 	 	16	 
	3. Transfer Restrictions
	 	 	17	 
	3.1 General Restrictions
	 	 	17	 
	3.2 Permitted Transfers
	 	 	17	 
	3.3 Continuing Obligations to Make Capital Contributions
	 	 	20	 
	4. Dissolution
	 	 	20	 
	4.1 General
	 	 	20	 
	4.2 Fault Dissolution
	 	 	20	 
	4.3 Termination
	 	 	21	 
	4.4 Liquidation
	 	 	21	 
	4.5 Continuing Obligations to Make Capital Contributions
	 	 	22	 
	5. Miscellaneous
	 	 	23	 
	5.1 Confidentiality
	 	 	23	 
	5.2 Compliance with Agreement
	 	 	23	 
	5.3 Compliance with Laws
	 	 	24	 
	5.4 Notices
	 	 	25	 
	5.5 Governing Law; Jurisdiction
	 	 	27	 
	5.6 Severability
	 	 	28	 
	5.7 Amendments
	 	 	28	 
	5.8 Waiver
	 	 	29	 
	5.9 Counterparts
	 	 	29	 
	5.10 Entire Agreement
	 	 	29	 
	5.11 No Assignment; No Third Party Beneficiaries
	 	 	29	 
	5.12 Publicity
	 	 	29	 
	5.13 Construction
	 	 	29	 
	5.14 Disclaimer of Agency
	 	 	30	 
	5.15 Relationship of Greif and Dabbagh
	 	 	30	 
	5.16 Language
	 	 	30	 
	5.17 Interpretation and Construction of this JV Agreement
	 	 	30	 
	 
	Signatories
	 	 	31	 

 

 

JOINT VENTURE AGREEMENT

THIS JOINT VENTURE AGREEMENT (this JV Agreement), dated as of September 29, 2010 is made and
entered into

AMONG:

	(1)	 	GREIF, INC., a corporation formed under the laws of Delaware (Greif Parent) solely
for the purpose of the obligations set forth in Section 2.4 (Exclusivity), Section
2.5 (Business Opportunities) and Section 5 (Miscellaneous);

	(2)	 	GREIF INTERNATIONAL HOLDING SUPRA C.V., a limited partnership formed under the laws
of the Netherlands (Greif);

	(3)	 	DABBAGH GROUP HOLDING COMPANY LIMITED, a corporation formed under the laws of Saudi Arabia
(Dabbagh Parent), solely for the purpose of the obligations set forth in Section 2.4
(Exclusivity), Section 2.5 (Business Opportunities) and Section 5
(Miscellaneous); and

	(3)	 	NATIONAL SCIENTIFIC COMPANY LIMITED, a limited liability company formed under the
laws of Saudi Arabia (NSC).

WHEREAS:

	(A)	 	Greif is engaged, directly and indirectly, in the business of producing industrial packaging
products, such as steel, fibre and plastic drums, intermediate bulk containers, closure
systems for industrial packaging products, certain transit protection products, and
polycarbonate water bottles, and services, such as blending, filling and other packaging
services, logistics and warehousing. NSC is engaged, directly and indirectly, in the business
of wholesale and retail trading of human and veterinary medicine, chemicals, medical
equipment, scientific equipment, scientific instruments, laboratory equipment and furniture,
and providing maintenance and installation services for such equipment.

	(B)	 	Since 2007, Greif (indirectly through its portfolio company Greif International Holding B.V.)
and an Affiliate of Dabbagh Parent, Petromin Corporation, have been participating in a
fifty-one percent-forty-nine percent (51%/49%) joint venture called Greif Saudi Arabia Ltd.

	(C)	 	Greif and NSC regard each other as valuable partners and wish to expand their relationship by
participating in a new joint venture that will engage in the Polywoven Industrial Packaging
Business (as defined in the Formation Agreement).

	(D)	 	Greif and NSC desire to locate polywoven fabric manufacturing in Saudi Arabia and possibly
other countries.

	(E)	 	Greif wishes to contribute capital and the Greif Brand, Channel and Expertise (as defined in
the Formation Agreement) and NSC wishes to contribute capital and KSA Expertise and Support
(as defined in the Formation Agreement) to ChannelCo, AssetCo and KSA Hub combined in
accordance with the provisions of this JV Agreement and the other Transaction Documents (as
defined in the Formation Agreement), and to create cross-ownership in each of these entities
and joint management and joint profit sharing among ChannelCo, AssetCo and KSA Hub in a manner
that will promote long-term cooperation, growth, coordination and synergies among such
entities as provided herein (the Global Alliance).

 

 

	(F)	 	The Global Alliance will benefit from Greif’s expertise, know-how and branding and NSC’s
access to capital, proven record of successful asset management and understanding of the Saudi
Arabian market and regional business environment, local knowledge and local presence.
	 
	(G)	 	Greif and NSC intend to make certain strategic acquisitions of businesses that are engaged in
the Polywoven Industrial Packaging Business through the Global Alliance.
	 
	(H)	 	Greif and NSC intend that the Global Alliance will provide highly competitive services and
products in the Polywoven Industrial Packaging Business more cost effectively, more
efficiently and more rapidly than they each could provide alone.
	 
	(I)	 	Greif and NSC intend that the Global Alliance will be a fifty percent-fifty percent (50%/50%)
joint venture between Greif and NSC through the combined operations of their subsidiaries
ChannelCo, AssetCo and KSA Hub in all respects notwithstanding the Ownership Interests (as
defined in the Formation Agreement) in individual Global Alliance Entities and that all of the
Global Alliance Entities will be operated in a transparent and operationally efficient manner.
	 
	(J)	 	In furtherance of the objectives set forth above, Greif Parent, Greif, Dabbagh Parent and NSC
desire to enter into this JV Agreement and the other Transaction Documents to govern the
ongoing operation of the Global Alliance. Certain terms used in this JV Agreement shall have
the meanings ascribed to such terms in Annex 1 to the Formation Agreement.

NOW, THEREFORE, each of Greif Parent, Greif, Dabbagh Parent and NSC, intending to be legally bound
to the extent provided in this JV Agreement, hereby agree as follows:

	1.	 	GOVERNANCE AND MANAGEMENT OF GLOBAL ALLIANCE ENTITIES
	 
	1.1	 	Establishment of Global Alliance Entities’ Boards of Directors and Designation of Chairmen
	 
	(a)	 	Board Representation of ChannelCo, AssetCo and KSA Hub; Voting
	 
	 	 	Effective as of the Closing, the business and affairs of each of ChannelCo, AssetCo and KSA
Hub will be managed exclusively by or under the direction of a Board of Directors of each
such entity, established in accordance with the Constituent Documents of each such entity
and consisting of eight (8) or ten (10) individuals (including the CEO), as agreed between
Greif and NSC. Such individuals shall either be senior management employees of either Greif
or NSC or have relevant business experience. The parties shall cause the shareholders of
the Global Alliance Entities to appoint, on the nomination of Greif, half of the individuals
to serve on the Board of Directors of each of ChannelCo, AssetCo and KSA Hub and, on the
nomination of NSC, the other half of the individuals to serve on the Board of Directors of
each of ChannelCo, AssetCo and KSA Hub. Board of Director nominations made in accordance
with the previous sentence by either Greif or NSC shall not be objected to by Greif or NSC
(as the case may be). Pursuant to the Constituent Documents of each of ChannelCo, AssetCo
and KSA Hub and except as provided below, each individual who is a member of a Global
Alliance Entity Board of Directors shall be entitled to one (1) vote on all matters that may
come before such Board of Directors.
	 
	(b)	 	Board Representation of Global Alliance Subsidiaries
	 
	 	 	Each of Greif and NSC shall cause each Global Alliance Subsidiary (as and when formed) to be
managed exclusively by or under the direction of a Board of Directors to be established in
accordance with the requirements for the Board of Directors of the parent entity of such
Global Alliance Subsidiary.

2

 

	(c)	 	ChannelCo, AssetCo and KSA Hub Chairmen
	 
	 	 	Greif shall designate a representative of Greif to serve as the Chairman of the ChannelCo
Board of Directors (ChannelCo Chairman). The ChannelCo Chairman will preside over all
meetings of the ChannelCo Board of Directors and, pursuant to the Constituent Documents of
such entity, will be empowered to break any tie votes of the ChannelCo Board of Directors
with respect to any decision that may come before the ChannelCo Board of Directors. For the
avoidance of doubt, the ChannelCo Chairman may not break a tie vote (nor be entitled to an
additional vote) on any decision requiring a Board Supermajority Approval unless such
chairman’s vote, together with all other votes cast with respect to such matter, meets the
minimum number of votes required for such approval pursuant to Section 1.3(a). The
ChannelCo Chairman will have such other powers and duties as may be delegated to him by the
ChannelCo Board of Directors, subject to the provisions of this JV Agreement and the
Constituent Documents of such entity.
	 
	 	 	NSC shall designate a representative of NSC to serve as the Chairman of the AssetCo Board of
Directors (AssetCo Chairman). The AssetCo Chairman will preside over all meetings of the
AssetCo Board of Directors and, pursuant to the Constituent Documents of such entity, will
be empowered to break any tie votes of the AssetCo Board of Directors with respect to any
decision that may come before the AssetCo Board of Directors. For the avoidance of doubt,
the AssetCo Chairman may not break a tie vote (nor be entitled to an additional vote) on any
decision requiring a Board Supermajority Approval unless such chairman’s vote, together with
all other votes cast with respect to such matter, meets the minimum number of votes required
for such approval pursuant to Section 1.3(a). The AssetCo Chairman will have such
other powers and duties as may be delegated to him by the AssetCo Board of Directors,
subject to the provisions of this JV Agreement and the Constituent Documents of such entity.
	 
	 	 	NSC shall designate a representative of NSC to serve as the Chairman of the KSA Hub Board of
Directors (KSA Hub Chairman). The KSA Hub Chairman will preside over all meetings of the
KSA Hub Board of Directors and, pursuant to the Constituent Documents of such entity, will
be empowered to break any tie votes of the KSA Hub Board of Directors with respect to any
decision that may come before the KSA Hub Board of Directors.  For the avoidance
of doubt, the KSA Hub Chairman may not break a tie vote (nor be entitled to an additional
vote) on any decision requiring a Board Supermajority Approval unless such chairman’s vote,
together with all other votes cast with respect to such matter, meets the minimum number of
votes required for such approval pursuant to Section 1.3(a). The KSA Hub Chairman
will have such other powers and duties as may be delegated to him by the KSA Hub Board of
Directors, subject to the provisions of this JV Agreement and the Constituent Documents of
such entity.
	 
	(d)	 	Global Alliance Subsidiaries Chairmen
	 
	 	 	With regard to each Global Alliance Subsidiary, the parent entity of such Global Alliance
Subsidiary shall designate the Chairman of such Global Alliance Subsidiary (Global Alliance
Subsidiary Chairman). The Global Alliance Subsidiary Chairman will preside over all
meetings of the Board of Directors of the Global Alliance Subsidiary of which he is the
Chairman and, pursuant to the Constituent Documents of such entity, will be empowered to
break any tie votes of such Board of Directors with respect to any decision that may come
before them. For the avoidance of doubt, the Global Alliance Subsidiary Chairman may not
break a tie vote (nor be entitled to an additional vote) on any decision requiring a Board
Supermajority Approval unless such chairman’s vote, together with all other votes cast with
respect to such matter, meets the minimum number of votes required for such approval
pursuant to Section 1.3(a). The Global Alliance Subsidiary Chairman will have such
other powers and duties as

3

 

	 	 	may be delegated to him by the Board of Directors of the Global Alliance Subsidiary of which
he is the Chairman, subject to the provisions of this JV Agreement and the Constituent
Documents of such entity.
	 
	1.2	 	Responsibilities of Global Alliance Entity Boards of Directors
	 
	 	 	The purposes of the Board of Directors of each Global Alliance Entity shall be to establish
and resolve matters of policy. As more fully set forth in the applicable Constituent
Documents of each Global Alliance Entity, the responsibilities of the Board of Directors of
each Global Alliance Entity shall include, without limitation:
	 
	(a)	 	approving of any proposed acquisitions, divestitures or restructurings relating to such
Global Alliance Entity;
	 
	(b)	 	establishing any Intellectual Property rights of such Global Alliance Entity;
	 
	(c)	 	legal and risk management of such Global Alliance Entity, including the development and
implementation of compliance policies reasonably designed to ensure compliance with all
applicable Laws;
	 
	(d)	 	developing evaluation and approval procedures for third party services and transactions;
	 
	(e)	 	conducting financial reviews and audits, approving operating and capital budgets and requests
for Capital Contributions and other financings of such Global Alliance Entity;
	 
	(f)	 	establishing review criteria for the CEO and CFO of such Global Alliance Entity and setting
compensation for the Board of Directors, executive management and staff of such Global
Alliance Entity and establishing broad organizational cultural norms for success within such
Global Alliance Entity;
	 
	(g)	 	appointing, reviewing and terminating executive management and setting compensation, benefits
and other terms of employment for executive management of such Global Alliance Entity; and
	 
	(h)	 	any other action set forth in Section 1.3(a), Section 1.3(b) and/or
Section 1.3(c).
	 
	1.3	 	Voting Thresholds for Board Decision-Making; Certain Approvals
	 
	(a)	 	Actions Requiring a Supermajority Approval of Board
	 
	 	 	Subject to Section 3.2(e), the actions specified below may not be taken by (i) any
of ChannelCo, AssetCo or KSA Hub unless approved by (A) seven (7) members of the applicable
Global Alliance Entity Board of Directors if such Board consists of eight (8) members, or
(B) eight (8) members of the applicable Global Alliance Entity Board of Directors if such
Board consists of ten (10) members (each a Board Supermajority Approval) and ChannelCo,
AssetCo and KSA Hub shall take such actions as may be necessary as holder of the Ownership
Interests in any of their Subsidiaries to ensure that such entities do not take any of the
specified actions without such Board Supermajority Approval of ChannelCo, AssetCo or KSA
Hub, as the case may be, and (ii) KSA Hub in respect of the decisions listed under items (i)
 — (ii) and (iv) — (v) below unless a supermajority shareholders vote comprising
shareholders holding at least seventy-five percent (75%) of the share capital of KSA Hub (or
such greater amount as may be required by applicable Law) is obtained:

4

 

	 	(i)	 	a voluntary liquidation or bankruptcy (or equivalent procedures under any
applicable Law) of the Global Alliance Entity (except a liquidation pursuant to
Section 4.4);
	 
	 	(ii)	 	a change in the purpose or scope of operations of the Global Alliance Entity;
	 
	 	(iii)	 	the pursuit or divestment of a Business Opportunity acquired through any of
the Acquired Businesses;
	 
	 	(iv)	 	the sale, disposition or encumbrance of assets, properties, businesses or
rights (whether by sale (including share sale), merger, combination, consolidation,
joint venture or otherwise) by the Global Alliance Entity (other than sales or
dispositions of inventory in the ordinary course of business) in one (1) transaction or
a series of related transactions that (A) constitute all or substantially all the
assets of such entity, or (B) have a Fair Market Value in excess of two and one half
million dollars ($2,500,000);
	 
	 	(v)	 	the acquisition of assets, properties or rights (whether by sale, merger,
combination, consolidation, joint venture or otherwise) by the Global Alliance Entity
(other than acquisitions of inventory, equipment or raw materials in the ordinary
course of business) of any business, assets or Liabilities;
	 
	 	(vi)	 	any expenses relating to a restructuring or closure of a facility of more than
two and one half million dollars ($2,500,000);
	 
	 	(vii)	 	any amendment to the legal or organizational structure of the Global Alliance
Entity or to the Constituent Documents of the Global Alliance Entity;
	 
	 	(viii)	 	transactions between or among the Global Alliance Entity and either Greif or NSC or
any of their Affiliates other than a transaction on terms that are no less favorable to
the Global Alliance Entity than the terms of an arm’s length transaction in the
ordinary course of business;
	 
	 	(ix)	 	any modification of, or deviation from, the Distribution Policy of the Global
Alliance Entity;
	 
	 	(x)	 	the approval and adoption of the annual Operating Plan; provided
that if Board Supermajority Approval is not obtained for the annual Operating
Plan, then the prior year’s Operating Plan shall continue in effect with all amounts in
such Operating Plan increased by five percent (5%);
	 
	 	(xi)	 	the execution of any Contract or commitment to make any capital expenditure in
excess of two and one half million dollars ($2,500,000) per project or in excess of
seventy-five percent (75%) of the annual depreciation expense for all capital expenses
per year;
	 
	 	(xii)	 	the incurrence of debt by the Global Alliance Entity (including guarantees and
other financing mechanisms such as leases), other than incurrences in the ordinary
course of business of short term debt of less than ten percent (10%) of the sales
revenues of such entity; and
	 
	 	(xiii)	 	any change or modification to any material accounting or tax policy, election or
position, or the making of any entity classification election under Treas. Reg.
§301.7701-3, with respect to the Global Alliance Entity, except (i) any such change or
modification required under applicable generally accepted accounting principles or tax
Law or (ii) any change or modification to be consistent with any accounting or tax
policy, election or position of either Greif or NSC, unless

5

 

	 	 	 	such change or modification would adversely affect either Greif or NSC or any of
their Affiliates in any material respect.

	(b)	 	Actions Requiring an Ordinary Approval of Board
	 
	 	 	Subject to Section 3.2(e), the actions specified below may not be taken by any of
ChannelCo, AssetCo or KSA Hub unless approved by the applicable Global Alliance Entity Board
of Directors (Board Ordinary Approval) (and ChannelCo, AssetCo and KSA Hub shall take such
actions as may be necessary as holder of the Ownership Interests in any of their
Subsidiaries to ensure that such entities do not take any of the specified actions without
such Board Ordinary Approval):

	 	(i)	 	the incurrence of any operational expenses relating to inventory in excess of
twenty-five percent (25%) over the budget for such item included in the Operating Plan
or the incurrence of non-inventory expenses for goods and services in excess of fifteen
percent (15%) over the budget for such item included in the Operating Plan; and
	 
	 	(ii)	 	the settlement of litigation or assumption of Liabilities other than in the
ordinary course of business involving the Global Alliance Entity, which litigation or
settlement involves (A) an amount in excess of five hundred thousand dollars
($500,000), (B) any acceptance of injunctive relief or contractual agreement that would
affect in any material respect the Purpose or limit or restrict the Polywoven
Industrial Packaging Business of any Global Alliance Entity, or impose any other
Burdensome Condition on any such entity, or (C) an acknowledgment of criminal liability
or responsibility.

	(c)	 	Actions Requiring Parent Approval
	 
	 	 	The actions specified below may not be taken by any of ChannelCo, AssetCo or KSA Hub unless
approved by each of Greif and NSC, through Greif HoldCo and Dabbagh HoldCo respectively
(Parent Approval), (and ChannelCo, AssetCo and KSA Hub shall take such actions as may be
necessary as holder of the Ownership Interests in any of their Subsidiaries to ensure that
such entities (and the officers, directors, employees and representatives of such entities)
do not take any of the specified actions without such Parent Approval):

	 	(i)	 	the acquisition by the Global Alliance Entity of any business, assets or
Liabilities outside the scope of the operations of the Global Alliance (as defined in
the Strategic Plan and as amended pursuant to Section 2.5);
	 
	 	(ii)	 	a request to make a Capital Contribution available that is not consistent with
the Strategic Plan or a contribution in excess of the Capital Contribution obligations
of either of Greif or NSC or an adjustment in the obligations of Greif and NSC to make
Capital Contributions pursuant to Section 4.3(a) of the Formation Agreement;
	 
	 	(iii)	 	the Transfer by either Greif or NSC or any of their respective Affiliates of
its direct or indirect Ownership Interest in the Global Alliance Entity, other than a
Permitted Transfer pursuant to Section 3.2;
	 
	 	(iv)	 	issuance of any new Ownership Interest to any Person other than Greif or NSC or
permit any Person other than Greif or NSC to otherwise acquire any Ownership Interest
of any Global Alliance Entity;

6

 

	 	(v)	 	a voluntary liquidation or bankruptcy (or equivalent procedures under any
applicable Law) of the Global Alliance Entity (except a liquidation pursuant to
Section 4.4);
	 
	 	(vi)	 	a change in the purpose or scope of operations of the Global Alliance Entity;
	 
	 	(vii)	 	a material change in the purpose or scope of operations of the Global Alliance
Entity;
	 
	 	(viii)	 	the approval and adoption of the Strategic Plan and any amendment thereto or
deviation therefrom; and
	 
	 	(ix)	 	the adjustment of the rights and preferences of or the
issuance of additional shares of capital stock or other equity interest of (or securities convertible into or
exchangeable for shares of capital stock of) the Global Alliance Entity (except in
accordance with Section 3or Section 4).

	1.4	 	Meetings; Quorum; Notice
	 
	(a)	 	Agendas
	 
	 	 	Each Chairman shall prepare or direct the preparation of the agenda for, and preside over,
meetings of the Board of Directors on which he serves as Chairman. The Chairman shall
deliver a preliminary version of such agenda to each representative on the Board of
Directors on which he serves as Chairman at least seven (7) calendar days prior to the
giving of notice of a regular or special meeting, and any representative on such Board of
Directors may add items to such agenda. The final version of the agenda shall be included
in the notice of meeting.
	 
	(b)	 	Timing; Notice
	 
	 	 	Each of Greif and NSC anticipate that each Global Alliance Entity Board of Directors shall
meet at least once per quarter, or more often to the extent required by applicable Law, for
the purpose of reviewing the operating results of the business of such entity and for the
transaction of any other lawful business. Such meetings shall occur at such times as each
such Board of Directors may from time to time determine. Special meetings of any Global
Alliance Entity Board of Directors may be called by the Chairman of such Board of Directors
or any other member of such Board of Directors and shall be held at such place as may be
determined by such Board of Directors. Written notice of the time and place of each regular
and special meeting of any Global Alliance Entity Board of Directors shall be given by or at
the direction of the Chairman of such Board of Directors to each representative on such
Board of Directors, in the case of a regular or a special meeting at least fifteen (15)
calendar days before such meeting. Whenever notice is required to be given to any
representative on any Global Alliance Entity Board of Directors, such notice shall specify
the agenda for such meeting and, to the extent appropriate, shall be accompanied by
supporting documentation. The required notice to any representative may be waived by such
representative in writing. Attendance by a representative at a meeting shall constitute a
waiver of any required notice of such meeting by such representative, except when such
representative attends such meeting for the express purpose of objecting, at the beginning
of the meeting, to the transaction of any business because the meeting is not properly
called or convened.
	 
	(c)	 	Quorum for Decision-Making
	 
	 	 	The presence of a majority of the voting members of a Global Alliance Entity Board of
Directors (including at least two (2) members designated by Greif and two (2) members
designated by NSC), shall be required to constitute a quorum for the transaction of any
business by such Board of Directors. The

7

 

	 	 	affirmative vote of a majority of the voting members of a Global Alliance Entity Board of
Directors shall be the act of such Board of Directors, except as otherwise required by the
applicable Law or this JV Agreement. Each director shall have one (1) vote, and the
Chairman shall have a tie-breaking vote as set forth in Section 1.1.

	(d)	 	Attendance

	 	(i)	 	Each of Greif and NSC shall use its respective commercially reasonable efforts
to cause the members of the Global Alliance Entity Board of Directors nominated by it
to attend meetings of such Board of Directors in person. Notwithstanding any provision
to the contrary, each representative of Greif on a Global Alliance Entity Board of
Directors shall attend in person at least seventy-five percent (75%) of the meetings
that take place in a year, unless such representative is excused by NSC from attendance
in person. Notwithstanding any provision to the contrary, each representative of NSC
on a Global Alliance Entity Board of Directors shall attend in person at least
seventy-five percent (75%) of the meetings that take place in a year, unless such
representative is excused by Greif from attendance in person.
	 
	 	(ii)	 	While each of Greif and NSC intend that the representatives on a Global
Alliance Entity Board of Directors shall attend meetings of such Boards of Directors in
person, each of Greif and NSC acknowledge that representatives may from time to time be
prevented from doing so due to various circumstances. Representatives on a Global
Alliance Entity Board of Directors may, therefore, to the extent permitted by
applicable Law, participate in and vote at a meeting of such Board of Directors by
means of conference telephone, video-conference or similar communications equipment by
means of which all persons participating in the meeting can hear each other, and
participation in a meeting pursuant to this Section 1.4(d) shall constitute
presence in person at such meeting, except where a representative participates in the
meeting for the express purpose of objecting, at the beginning of the meeting, to the
transaction of any business on the ground that the meeting is not properly called or
convened.
	 
	 	(iii)	 	A representative of Greif or NSC on a Global Alliance Entity Board of
Directors shall be allowed to participate by proxy, provided that such
representative has complied with the attendance requirement set forth in Section
1.4(d)(i).

	(e)	 	Action by Written Consent
	 
	 	 	To the extent permitted by applicable Law, any action required or permitted to be taken at a
meeting of any Global Alliance Entity Board of Directors may be taken without a meeting if a
written consent or resolution, setting forth the action so taken, is signed by all the
representatives on such Board of Directors entitled to vote and filed with the minutes of
the proceedings of such Board of Directors. Such consent shall have the same force and
effect as a unanimous affirmative vote of the representatives on such Board of Directors.
	 
	(f)	 	Removal; Resignation; Vacancies
	 
	 	 	Except as otherwise provided in this JV Agreement, the representatives on a Global Alliance
Entity Board of Directors shall hold office at the pleasure of the Person that designated
them. Any such Person may at any time, by written notice to each of Greif and NSC and to
the applicable Board of Directors, request the shareholders of a Global Alliance Entity to
remove (with or without cause) its representative on such Board of Directors and to appoint
a new representative designated by such Person. The parties shall cause the shareholders of
such Global Alliance Entity to take any actions that may be required to

8

 

	 	 	effectuate such removal and/or appointment. Subject to applicable Law, no representative
may be removed except upon instruction of the Person designating the same. Any
representative on a Global Alliance Entity Board of Directors may resign at any time by
giving written notice to each of Greif and NSC or other Person that requested the
appointment of such representative and to such Board of Directors. Such resignation shall
take effect on the date shown on or specified in such notice or, if such notice is not dated
and the date of resignation is not specified in such notice, on the date of the receipt of
such notice by the applicable Board of Directors. No acceptance of such resignation shall
be necessary to make it effective. Any vacancy on a Global Alliance Entity Board of
Directors shall be filled only by the shareholders of such Global Alliance Entity on the
nomination of the Person whose representative has caused the vacancy by giving written
notice to such Board of Directors and to each of Greif and NSC, as the case may be, of its
nomination of the replacement that will serve on the Board of Directors.

	(g)	 	No Remuneration
	 
	 	 	No person shall be entitled to any fee, remuneration or compensation from a Global Alliance
Entity in connection with his service as a representative of or as a member of a Board of
Directors except (i) for reimbursement of properly authorized expenses in accordance with
such procedures as may be established by each Board of Directors, and (ii) where such
remuneration payment is deemed to be commercially appropriate for an independent director
(not otherwise an Affiliate of either Greif or NSC) and necessary under applicable Law and
where each of Greif and NSC agree in advance.
	 
	1.5	 	Designation of CEO/CFO
	 
	(a)	 	Election
	 
	 	 	Notwithstanding any other provisions to the contrary contained in this JV Agreement or any
Constituent Document, at all times, Greif will, after consultation with NSC, designate the
CEO of each of ChannelCo, AssetCo and KSA Hub and NSC will, after consultation with Greif,
designate the CFO of each of ChannelCo, AssetCo and KSA Hub. At least seven (7) calendar
days prior to the Closing, Greif will notify NSC of its initial CEO designee and NSC will
notify Greif of its initial CFO designee. The parties shall cause the shareholders of the
applicable Global Alliance Entity, at the direction of either Greif or NSC (and after
consultation with Greif or NSC, as the case may be), to appoint the CEO and to remove the
CEO in the event that the CEO (1) is convicted of any criminal offense under applicable Law,
(2) becomes physically incapable of discharging his obligations as CEO, or (3) in the
reasonable judgment of either Greif or NSC, is not properly discharging his duties as CEO.
The applicable Global Alliance Entity Board of Directors shall, at the direction of either
Greif or NSC (and after consultation with either Greif or NSC, as the case may be), remove
the CFO in the event that the CFO (1) is convicted of any criminal offense under applicable
Law, (2) becomes physically incapable of discharging his obligations as CFO, or (3) in the
reasonable judgment of either Greif or NSC, is not properly discharging his duties as CFO.
	 
	 	 	Notwithstanding any other provisions to the contrary contained in this JV Agreement or any
Constituent Document, at all times, Greif will, after consultation with NSC, designate the
Subsidiary CEO of each Global Alliance Subsidiary and NSC will, after consultation with
Greif, designate the Subsidiary CFO of each Global Alliance Subsidiary. At least seven (7)
calendar days prior to the Closing, Greif will notify NSC of its initial Subsidiary CEO
designee and NSC will notify Greif of its initial Subsidiary CFO designee. The applicable
Global Alliance Entity Board of Directors shall, at the direction of either Greif or NSC
(and after consultation with either Greif or NSC, as the case may be), remove such
Subsidiary CEO in the event that such Subsidiary CEO (1) is convicted of any criminal
offense under applicable

9

 

	 	 	Law, (2) becomes physically incapable of discharging his obligations as Subsidiary CEO, or
(3) in the reasonable judgment of either Greif or NSC, is not properly discharging his
duties as Subsidiary CEO. The applicable Global Alliance Entity Board of Directors shall,
at the direction of either Greif or NSC (and after consultation with either Greif or NSC, as
the case may be), remove the Subsidiary CFO in the event that such Subsidiary CFO (1) is
convicted of any criminal offense under applicable Law, (2) becomes physically incapable of
discharging his obligations as Subsidiary CFO, or (3) in the reasonable judgment of either
Greif or NSC, is not properly discharging his duties as Subsidiary CFO.

	(b)	 	Duties
	 
	 	 	The CEO of each Global Alliance Entity shall have the responsibility for managing the
day-to-day operations and all external relationships of the applicable Global Alliance
Entity in accordance with the Strategic Plan and Operating Plan. The duties and
responsibilities of the CEO shall include:

	 	(i)	 	making manufacturing, sourcing and network decisions, selecting outsourcers and
shared services, entering into contracts with third parties, settling claims and
conducting the operations of the Global Alliance Entity in accordance with the
Strategic Plan and Operating Plan;
	 
	 	(ii)	 	managing branding, pricing and sales forces, developing products within the
scope of the Global Alliance, developing or stopping the production of products within
the scope of the Global Alliance;
	 
	 	(iii)	 	appointing and reviewing staff and setting compensation for staff of the
Global Alliance Entity;
	 
	 	(iv)	 	proposing and implementing the Strategic Plan and Operating Plan; and
	 
	 	(v)	 	taking all other actions required in the ordinary course of business that have
not been specifically assigned to the Board of Directors pursuant to this JV Agreement
or any of the other Transaction Documents.

	 	 	The CEO of each Global Alliance Entity shall report to the Board of Directors of the
applicable Global Alliance Entity. The CFO of each Global Alliance Entity shall report to
the CEO of such entity.
	 
	(c)	 	Appointment of Global Alliance Entities Staff
	 
	 	 	The CEO shall have the authority to appoint such executive staff as he may determine is
desirable in order to assist the CEO and CFO in the performance of their duties;
provided that the CFO shall have the authority to appoint non-executive
staff who will report directly to the CFO.
	 
	1.6	 	Fiduciary Duties
	 
	(a)	 	Each of Greif and NSC, acting through the respective representatives appointed on each Global
Alliance Entity Board of Directors on their nomination, may, in its sole discretion, approve
or decline to approve (and direct the representatives so appointed by it to approve or decline
to approve) any matter presented to such Board of Directors. To the extent permitted by
applicable Law, no member of a Global Alliance Entity Board of Directors (in his role as a
member of such Board of Directors) will have a fiduciary or other duty to Greif, NSC or their
respective Affiliates or any Global Alliance Entity other than to the Person that nominated
such member to be appointed to such Board of Directors.

10

 

	(b)	 	Subject to applicable Law, neither Greif nor any of its Affiliates nor any officer, director,
employee or former employee of Greif or its Affiliates nor any member of a Global Alliance
Entity Board of Directors (in either case, other than an officer of any Global Alliance
Entity) shall have any obligation, or be liable, to NSC or any Global Alliance Entity for
exercising any of the rights of Greif or such Affiliate under this JV Agreement or any other
Transaction Document to which it is or will be a party, or for exercising or failing to
exercise its rights as a shareholder, member or manager of any Global Alliance Entity (other
than a breach of any Transaction Document) or for breach of any fiduciary or other similar
duty to NSC or any Global Alliance Entity by reason of such conduct.
	 
	(c)	 	Subject to applicable Law, neither NSC nor any of its Affiliates nor any officer, director,
employee or former employee of NSC or its Affiliates nor any member of a Global Alliance
Entity Board of Directors (in either case, other than an officer of any Global Alliance
Entity) shall have any obligation, or be liable to Greif or any Global Alliance Entity for
exercising any of the rights of NSC or such Affiliate under this JV Agreement or any other
Transaction Document to which it is or will be a party, or for exercising or failing to
exercise its rights as a shareholder, member or manager of any Global Alliance Entity (other
than a breach of any Transaction Document) or for breach of any fiduciary or other similar
duty to Greif or any Global Alliance Entity by reason of such conduct.
	 
	1.7	 	Indemnification
	 
	 	 	Each Global Alliance Entity will provide customary indemnification for members of its Board
of Directors and its executives from and against claims that may be asserted against such
member or executive in connection with managing the business and affairs of such Global
Alliance Entity, as the case may be.
	 
	1.8	 	Distributions
	 
	(a)	 	Subject to actual declarations by the Board of Directors of each Global Alliance Entity and
applicable Law (or subject to actual declarations by the shareholders in the case of each of
ChannelCo, AssetCo and KSA Hub), as promptly as practicable after the end of the fourth fiscal
quarter of each Fiscal Year, the Board of Directors of each Global Alliance Entity (or the
shareholders in the case of each of ChannelCo, AssetCo and KSA Hub) shall cause such Global
Alliance Entity to distribute (i) any amounts required to pay attributable income tax
Liabilities to its respective shareholders or equity holders as the case may, and (ii)
commencing no earlier than the third anniversary of the Closing Date, at least thirty percent
(30%) of its net income determined in accordance with GAAP and legally available for
distribution (Distribution Policy). Notwithstanding the foregoing (i) any distributions of
AssetCo, ChannelCo or KSA Hub intended to be made pursuant to the Distribution Policy shall be
based on a net income calculated on a combined basis of (A) AssetCo and KSA Hub taken together
and (B) ChannelCo (Combined Net Income); and (ii) any such distributions of the Combined Net
Income required to be made pursuant to the Distribution Policy shall to the extent possible
under applicable Law be made by ChannelCo.
	 
	(b)	 	The Board of Directors of a Global Alliance Entity (and the shareholders in the case of each
of ChannelCo, AssetCo and KSA Hub) shall not declare any distribution if they reasonably
expect that ChannelCo will not be able to distribute the Combined Net Income under applicable
Law. In such event, the Combined Net Income that is not distributed by ChannelCo during a
Fiscal Year shall be included in the calculation of the Combined Net Income to be distributed
during the following Fiscal Year.

11

 

	1.9	 	Fiscal Year
	 
	 	 	Except as may otherwise be required by applicable Law, the Fiscal Year of each of the Global
Alliance Entities shall end on October 31 of each year.
	 
	1.10	 	Constituent Documents Interpretation
	 
	 	 	Each of Greif, NSC, Greif Parent and Dabbagh Parent agrees that the ChannelCo Constituent
Documents, the AssetCo Constituent Documents and the KSA Hub Constituent Documents,
including their respective rights and obligations thereunder, shall at any time be
interpreted and construed in accordance with the provisions of this JV Agreement. If there
is a conflict between a provision of this JV Agreement on the one hand and a provision of
the ChannelCo Constituent Documents, the AssetCo Constituent Documents and the KSA Hub
Constituent Documents on the other hand, each of Greif, NSC, Greif Parent and Dabbagh Parent
agrees to use its rights under the ChannelCo Constituent Documents, the AssetCo Constituent
Documents and the KSA Hub Constituent Documents, inter alia, as shareholder, so as to give
maximum effect to the provisions and purposes of this JV Agreement in all respects and not
in a manner which is inconsistent with this JV Agreement. If at any time, for the full
implementation of this JV Agreement in all respects, the ChannelCo Constituent Documents
and/or the AssetCo Constituent Documents and/or the KSA Hub Constituent Documents need to be
amended, Greif, NSC, Greif Parent and Dabbagh Parent shall, at the first request of either
one, discuss the amendment of the ChannelCo Constituent Documents and/or the AssetCo
Constituent Documents and/or the KSA Hub Constituent Documents to give maximum effect to the
provisions and purposes of this JV Agreement in all respects.
	 
	2.	 	COOPERATION; NON-COMPETITION; BUSINESS OPPORTUNITIES; EXCLUSIVITY
	 
	2.1	 	Strategic Plan and Operating Plan
	 
	(a)	 	Strategic Plan and Operating Plan
	 
	 	 	The operations of the Global Alliance shall be governed by the Strategic Plan, which
Strategic Plan shall include all the Global Alliance Entities. The budget for each Global
Alliance Entity shall be governed by an Operating Plan in accordance with the Strategic Plan
then in effect.
	 
	(b)	 	Development and Approval of Strategic Plan
	 
	 	 	The Strategic Plan for the five (5) Fiscal Years ending October 31, 2014 shall be the
Initial Strategic Plan for each Global Alliance Entity (Initial Strategic Plan). At least
one hundred and eighty (180) calendar days prior to the end of Fiscal Year 2014 for each
Global Alliance Entity, the CEO of each such entity shall submit changes to the Strategic
Plan for the subsequent five-year period to the Board of Directors of such Global Alliance
Entity for its review and approval. Each Strategic Plan shall be substantially in the form
of, and address the matters addressed in, the Strategic Plan then in effect. Prior to the
end of that Fiscal Year, the Board of such Global Alliance Entity shall vote on the approval
of the Strategic Plan and obtain Parent Approval in accordance with Section
1.3(c)(viii). The Strategic Plan shall include high level projections of results of
operations and capital requirements, underlying assumptions (including key performance
indicators) and market analyses for the five (5) Fiscal Years covered by such Plan.
	 
	(c)	 	Development and Approval for Operating Plan

12

 

	 	 	At least sixty (60) calendar days prior to end of each Fiscal Year, the CEO at each Global
Alliance Entity shall propose a one-year Operating Plan for such Global Alliance Entity and
deliver a copy to the Board of Directors of such Global Alliance Entity. The proposed
Operating Plan for each Global Alliance Entity shall be consistent with its Strategic Plan
then in effect. The Operating Plan for each Global Alliance Entity shall include
projections and budgeting with respect to revenues, operating expenses, operating cash
flows, capital expenditures, financing, market priorities and funding requirements in each
case for the following Fiscal Year.
	 
	(d)	 	Conformity with Strategic Plan and Operating Plan
	 
	 	 	Greif, NSC, the Board of Directors and the CEOs of each Global Alliance Entity shall cause
the executives and employees of such Global Alliance Entity to conduct the operations of
such Global Alliance Entity in accordance with its Strategic Plan and Operating Plan and the
other Transaction Documents then in effect. In the event that the Board of Directors of a
Global Alliance Entity determines that the operations of such Global Alliance Entity do not
conform or are inconsistent with its Strategic Plan and/or Operating Plan or the other
Transaction Documents then in effect, such Board of Directors shall take all actions
necessary to cause the applicable Global Alliance Entity to remedy such nonconformity.
	 
	2.2	 	Transfer Pricing Mechanism; EBITDA Equalization; Shared Services Fee; Acquisitions
	 
	(a)	 	Transfer Pricing Mechanism
	 
	 	 	All sales by AssetCo to ChannelCo shall be based on a transfer price mechanism to be set
forth in the Supply Agreement, which will be based on OECD Guidelines and Greif’s Global
Transfer Pricing Policy and, pursuant to the Supply Agreement, any sales by AssetCo to third
parties will only be permitted if ChannelCo shall have received (or provision shall have
been made such that it will receive when required) one hundred percent (100%) of its product
requirements.
	 
	(b)	 	EBITDA Equalization
	 
	 	 	Within forty-five (45) calendar days after the end of each financial quarter (based on
monthly calculations updated through the quarter end), the EBITDA of ChannelCo, on the one
hand, and AssetCo and KSA Hub taken together, on the other hand, shall be determined and the
amount thereof shall be notified to Greif and NSC by the applicable CFO(s). If ChannelCo’s
EBITDA exceeds the EBITDA of AssetCo and KSA Hub taken together, then ChannelCo shall pay an
amount equal to one half of the excess to AssetCo. If AssetCo’s EBITDA, taken together with
KSA Hub’s EBITDA, exceeds the EBITDA of ChannelCo, then AssetCo shall pay an amount equal to
one half of the excess to ChannelCo. Any payment required to be made pursuant to the
preceding two sentences shall be due and payable five (5) Business Days after the date of
determination and notification. Notwithstanding any other provision of this Section
2.2 to the contrary, the Global Alliance Entities with the lower EBITDA may discuss and
agree with the other Global Alliance Entities alternative arrangements to effect an
equalization of EBITDA between ChannelCo on the one hand, and AssetCo and KSA Hub on the
other hand.
	 
	(c)	 	Shared Services
	 
	 	 	Each of Greif and NSC and their respective Affiliates shall provide certain services to the
Global Alliance Entities, as set forth in the Shared Services Agreement.

13

 

	(d)	 	Acquisitions
	 
	 	 	From and after Closing. each of Greif and NSC and their respective Affiliates shall comply
with Section 4.2 of the Formation Agreement (Acquisitions).
	 
	2.3	 	IP Matters
	 
	(a)	 	IP License Agreement
	 
	 	 	As set forth in the IP License Agreement, Greif Parent shall provide a license to each
Global Alliance Entity for the use of Greif’s name and the Greif Business System for use
solely in the Polywoven Industrial Packaging Business and for any other business as agreed
by Greif and NSC.
	 
	(b)	 	New Developments
	 
	 	 	Each Global Alliance Entity shall (i) cause all technological developments, inventions,
discoveries or improvements by such Global Alliance Entity’s employees or agents to be fully
documented in accordance with Greif’s existing practices, (ii) cause all key employees and
consultants of such Global Alliance Entity to execute appropriate patent assignment
agreements to the Global Alliance Entity and, (iii) where possible and appropriate, to file
and prosecute United States, Saudi Arabia and any foreign patent applications relating to
and protecting such developments on behalf of the Global Alliance Entities, in each case
consistent with intellectual property policies established and modified from time to time by
Greif.
	 
	2.4	 	Exclusivity
	 
	(a)	 	Global Alliance Scope of Activities

	 	(i)	 	None of Greif Parent, Greif, Dabbagh Parent nor NSC nor their respective
Affiliates shall, without the prior written consent of the other, (i) during the period
that it holds a direct or indirect Ownership Interest in any Global Alliance Entity,
and (ii) for two (2) years thereafter, directly or indirectly, own, manage, operate,
jointly control, finance or participate in the ownership, management, operation,
control or financing of, or be connected as a partner, principal, agent,
representative, consultant or otherwise with, or use or permit its name or the name of
any of its Affiliates to be used in connection with, any business or enterprise that is
engaged in the Polywoven Industrial Packaging Business anywhere in the world (the
Territory), other than through the Global Alliance.
	 
	 	(ii)	 	Notwithstanding the foregoing, Greif and its Affiliates shall be permitted to
continue their existing business (other than the Acquired Businesses consisting of
Storsack Holding GmbH, UNSA Ambalaj Sanayi ve Ticaret Anonim Sirketi, Ligtermoet B.V.
and their respective subsidiaries), and Greif, NSC and their respective Affiliates
shall be permitted to hold passive ownerships of up to five percent (5%) in publicly
owned companies that engage in the Polywoven Industrial Packaging Business.

	(b)	 	NSC Scope of Activities
	 
	 	 	In connection with the activities of the Global Alliance, NSC and its Affiliates, including
Dabbagh Parent, will have access to the Greif Business System and other proprietary,
confidential and other nonpublic information (including trade secrets, know how, customer
lists and employee identities)

14

 

	 	 	relating to aspects of Greif’s business that will not be conducted through the Global
Alliance, including the Rigid Industrial Packaging Business (as hereinafter defined).
Because such information cannot be separated from the information relevant to the Polywoven
Industrial Packaging Business that will be conducted through the Global Alliance, Dabbagh
Parent and NSC hereby agree as follows in exchange for access to the Greif Business System
and such other information:

	 	(i)	 	During the term of the Global Alliance and for three (3) years after the
termination of the Global Alliance, Dabbagh Parent, NSC and their Affiliates shall not,
directly or indirectly, on its or their own behalf or on behalf of another person or
entity: (i) own, operate, advise, consult, promote or assist (financially or
otherwise), participate in, become employed by, or have any interest in any business
that is engaged in the same or similar business as the Rigid Industrial Packaging
Business anywhere in the world; (ii) solicit, attempt to solicit, sell or license any
product or service in competition with the products or services of Greif Parent and its
Affiliates to any Customer of Greif Parent or its Affiliates; and (iii) induce, solicit
or attempt to influence any employee of Greif Parent or its Affiliates to terminate his
or her employment with Greif Parent or its Affiliates, nor shall Dabbagh Parent, NSC or
any of their Affiliates, in any other manner, interfere with or attempt to interfere
with, in any way, the relationship of Greif Parent and its Affiliates with any
employees, officers, managers, agents, suppliers, vendors, independent contractors,
customers or otherwise. Each of Dabbagh Parent and NSC acknowledges the territory,
scope and duration of this provision to be reasonable given the nature of Dabbagh
Parent’s and NSC’s access to confidential business information of Greif Parent.
	 
	 	(ii)	 	Notwithstanding the foregoing, Dabbagh Parent’s interest in Greif Saudi Arabia
Ltd. at the time of execution of this JV Agreement or any subsequent passive ownership
of five percent (5%) or less in a publicly owned company that engages in the Rigid
Industrial Packaging Business and whose shares or interests are regularly traded on a
recognized exchange shall not be deemed a violation of the above stated covenants. The
noncompetition period referenced above shall be tolled or suspended during any period
of violation or attempted violation by NSC or any of its Affiliates.
	 
	 	(iii)	 	Rigid Industrial Packaging Business shall mean the manufacture, distribution
or sale of any fibre drum, steel drum, plastic drum, intermediate bulk container, water
bottle, closure, industrial packaging accessory, load securement product, linerboard or
medium sheet, corrugated sheet or corrugated container or multi-wall bag; and the
provision of services relating to industrial packaging for blending, filling,
warehousing and logistics.
	 
	 	(iv)	 	Customer shall mean any current customer of Greif Parent or any of its
Affiliates as of the date of termination of the Global Alliance and any person or
entity who has been a customer of Greif or any of its Affiliates at any time within two
(2) years prior to that date.

	(c)	 	Enforceability

	 	(i)	 	Each of Greif Parent, Greif, Dabbagh Parent and NSC acknowledge and agree that
the time, scope, geographic area and other provisions of this Section 2.4 have
been specifically negotiated by sophisticated parties and specifically agree that such
time, scope, geographic area, and other provisions are reasonable under the
circumstances. Each of Greif Parent, Greif, Dabbagh Parent and NSC agree that if,
despite this express agreement of Greif Parent, Greif, Dabbagh Parent and NSC, a court
should hold any portion of this Section 2.4 to be unenforceable for any reason,

15

 

	 	 	 	the maximum restrictions of time, scope and geographic area reasonable under the
circumstances, as determined by the court, will be substituted for the restrictions
held to be unenforceable. In furtherance of the foregoing, each of Greif Parent,
Greif, Dabbagh Parent and NSC agree that the court making the determination of
invalidity or unenforceability shall have the power to reduce the duration, or area
of the term or provision, to delete specific words or phrases, or to replace any
invalid or unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or
unenforceable term or provision, and this JV Agreement shall be enforceable as so
modified.
	 
	 	(ii)	 	Each of Greif Parent, Greif, Dabbagh Parent and NSC agree that the other and
each of the Global Alliance Entities shall be entitled to preliminary and permanent
injunctive relief, without the necessity of proving actual damages or posting any bond
or other security, as well as an equitable accounting of all earnings, profits and
other benefits arising from any violation of this Section 2.4, which rights
shall be cumulative and in addition to any other rights or remedies to which such
Person may be entitled. Section 6 of the Formation Agreement shall not apply
to any Dispute with regard to this Section 2.4.

	2.5	 	Business Opportunities
	 
	(a)	 	If any of Greif Parent, Greif, Dabbagh Parent or NSC becomes aware of any corporate or
business opportunities relating to products manufactured with polywoven fabric that are not
within the then-current definition of the Polywoven Industrial Packaging Business, including
opportunities relating to an acquisition of a business or assets or participation interests, a
purchase of an equity interest, potential sales of new products such as HDPE sacks, dry bulk
liners, leno bags and PW strapping, or other similar transactions (each a Business
Opportunity) such entity (the Presenting Entity) shall present such Business Opportunity to
NSC (if Greif Parent or Greif is the Presenting Entity) or Greif (if Dabbagh Parent or NSC is
the Presenting Entity) in writing, together with a reasonably detailed explanation and
financial summary of such Business Opportunity that would be sufficient to the entity that is
not the Presenting Entity (the Non-Presenting Entity) to reasonably evaluate such Business
Opportunity. The Non-Presenting Entity shall have the right but not the obligation to agree
or consent that the applicable Global Alliance Entity can pursue such Business Opportunity
(and that such Business Opportunity becomes included in the definition of the Polywoven
Industrial Packaging Business) and shall inform the Presenting Entity of its decision within
thirty (30) calendar days after the Business Opportunity is presented. If the Non-Presenting
Entity informs the Presenting Entity that it will not agree to consent to the applicable
Global Alliance Entity pursuing the Business Opportunity, then the Presenting Entity shall be
entitled to individually pursue the Business Opportunity.
	 
	(b)	 	In the event that a Global Alliance Entity has acquired a Business Opportunity through one
(1) or more Acquired Businesses and the Board of Directors of such Global Alliance Entity has
determined that such Business Opportunity must be divested, such Global Alliance Entity will
offer the Business Opportunity to each of Greif and NSC. Each of Greif and NSC shall have the
right but not the obligation to pursue such Business Opportunity and shall inform the other
and the applicable Global Alliance Entity of its decision within forty-five (45) days after
receipt of notice of the Business Opportunity. If each of Greif and NSC informs the
applicable Global Alliance Entity that it shall not pursue the Business Opportunity or fails
to respond within such forty-five (45) day period, then the applicable Global Alliance Entity
shall be entitled to divest the Business Opportunity to a third party.
	 
	(c)	 	In the event that the Global Alliance Entity offers the Business Opportunity to each of Greif
and NSC in accordance with Section 2.5(b) and both Greif and NSC inform the applicable
Global Alliance Entity

16

 

	 	 	that they wish to pursue the Business Opportunity, then the Business Opportunity shall be
carried out by such Global Alliance Entity.
	 
	3.	 	TRANSFER RESTRICTIONS
	 
	3.1	 	General Restrictions
	 
	(a)	 	Neither Greif nor NSC shall, directly or indirectly, sell, lease, contribute, exchange,
transfer, assign, pledge, hypothecate, encumber or otherwise dispose of, by gift or otherwise,
(Transfer) or permit any of its Affiliates to Transfer, any portion of its direct or indirect
Ownership Interest in any Global Alliance Entity, except for Transfers permitted by this
Section 3 or Section 4.
	 
	(b)	 	Any attempted or actual Transfer of a direct or indirect Ownership Interest in a Global
Alliance Entity in violation of this JV Agreement shall be of no effect and null and void.
Each of Greif and NSC shall use its respective commercially reasonable efforts to cooperate
with the other in connection with any attempted Transfer by the other in compliance with this
Section 3.
	 
	3.2	 	Permitted Transfers
	 
	(a)	 	General
	 
	 	 	Each of Greif and NSC may Transfer all or any portion of its direct or indirect Ownership
Interest in a Global Alliance Entity (without prior approval or consent of Greif or NSC (as
the case may be) or any Board of Directors of any Global Alliance Entity) if:

	 	(i)	 	such Transfer is made to a Wholly-Owned Subsidiary of such entity,
provided that the transferring entity remains responsible for all
Liabilities transferred in connection therewith;
	 
	 	(ii)	 	the continued participation of either Greif or NSC in the Global Alliance would
cause any of Greif, NSC (or any of their respective Affiliates) or any Global Alliance
Entity to violate any applicable Law in any material respect, provided
that the transferring entity complies with Section 3.2(b);
	 
	 	(iii)	 	any Governmental Authority requires either Greif or NSC to divest any portion
of its direct or indirect Ownership Interest in a Global Alliance Entity,
provided that the transferring entity first takes such action as may be
reasonably available to it to challenge such order (including commencing litigation, if
applicable) and has exhausted all available appeals and complies with Section
3.2(b);
	 
	 	(iv)	 	such Transfer occurs as part of an IPO to be effected after the third
anniversary of the Closing Date, provided that the transferring entity
complies with Section 3.2(c);
	 
	 	(v)	 	such Transfer occurs as part of a private placement offering to one or more
third party investors of NSC’s direct or indirect Ownership Interest in Dabbagh HoldCo;
provided that: (i) the third party investor shall not be a direct
competitor of Greif or any Global Alliance Entity (unless otherwise mutually agreed to
by Greif and NSC); (ii) Dabbagh Parent (or one of its Affiliates) shall maintain
Control of Dabbagh HoldCo following the closing of such private placement offering;
(iii) the private placement would not result in a violations of OFAC sanctions; and
(iv) Greif’s consent is provided and such consent shall not be unreasonably withheld.

17

 

	 	(vi)	 	such Transfer occurs as part of a voluntary sale of a minority interest to a
bona fide third party purchaser (a Third Party Sale), provided that the
transferring entity complies with Section 3.2(d); or
	 
	 	(vii)	 	such Transfer is made in accordance with Section 3.2(e)(i) or
Section 3.2(e)(ii).

	(b)	 	Involuntary Transfers
	 
	 	 	If at any time (i) either Greif or NSC obtains a legal opinion from outside counsel that its
continued participation in the Global Alliance would cause it (or any of its Affiliates) or
any Global Alliance Entity to violate any applicable Law in any material respect, or (ii)
any Governmental Authority requires either Greif or NSC to divest any portion of its direct
or indirect Ownership Interest in a Global Alliance Entity, then such Person seeking to
Transfer an Ownership Interest (the Selling Party) shall first be required to offer in
writing all of its Ownership Interest in each Global Alliance Entity to the other party (the
Non-Selling Party) at the greater of (i) the percentage of such Ownership Interests relative
to all outstanding Ownership Interests multiplied by the book value of the relevant Global
Alliance Entity, and (ii) the percentage of such Ownership Interests relative to all
outstanding Ownership Interests multiplied by the Formula Value of the relevant Global
Alliance Entity, and on such other material terms and conditions as may be included in the
written offer. The Non-Selling Party may, at its option, either accept or reject the offer
as soon as practicable after receipt thereof, and in any event within sixty (60) calendar
days after receipt thereof (the ROFO Expiration Date). The Non-Selling Party shall have the
right to accept the offer as to all (but not less than all) of the Ownership Interest
offered thereby. In the event that the Non-Selling Party shall elect to purchase such
Ownership Interest, the Non-Selling Party shall communicate in writing such election to
purchase to the Selling Party on or before the ROFO Expiration Date, and shall, when taken
in conjunction with the offer, be deemed to constitute a valid, legally binding and
enforceable agreement for the sale and purchase of such Ownership Interest covered thereby.
In the event that the Non-Selling Party does not accept the offer prior to the ROFO
Expiration Date, the Selling Party shall be free to sell the Ownership Interest contemplated
by the offer in a Third Party Sale on such terms and conditions as set forth in the said
offer to a prospective third party purchaser who is not a direct competitor of the
Non-Selling Party or the Global Alliance at any time over the twelve (12) month period
following the ROFO Expiration Date. In the event that the Selling Party has not entered
into a definitive agreement to sell all of such Person’s Ownership Interest in the Global
Alliance within twelve (12) months after the ROFO Expiration Date, such Selling Party may
notify the Non-Selling Party of its decision to dissolve the Global Alliance pursuant to
Section 4.
	 
	(c)	 	Initial Public Offering
	 
	 	 	Either Greif or NSC may determine to effect an IPO with regard to shares in Greif HoldCo or
Dabbagh HoldCo, respectively, after the third anniversary of the Closing Date;
provided that (i) if the IPO involves Greif HoldCo, then the IPO must be
structured such that Greif Parent (or one of its Affiliates) would retain Control of Greif
HoldCo following consummation of the IPO and such other provisions shall have been made
(including if applicable amendments to the Transaction Documents and/or the Constituent
Documents) to the reasonable satisfaction of NSC to ensure that the governance and economic
aspects of the Global Alliance will continue to function post-IPO in a manner substantially
similar to the pre-IPO status and the intentions of the parties reflected herein; (ii) if
the IPO involves Dabbagh HoldCo, then the IPO must be structured such that Dabbagh Parent
(or one of its Affiliates) would retain Control of Dabbagh HoldCo following consummation of
the IPO and such other provisions shall have been made (including, if applicable, amendments
to the Transaction Documents and/or the Constituent Documents) to the reasonable
satisfaction of Greif to ensure that the governance and

18

 

	 	 	economic aspects of the Global Alliance will continue to function post-IPO in a manner
substantially similar to the pre-IPO status and the intentions of the parties reflected
herein.
	 
	(d)	 	Third Party Sale

	 	 	If at any time either Greif or NSC determines to effect a Third Party Sale, such Person
shall only proceed with such Third Party Sale if: (i) it receives the written consent of the
Non-Selling Party to the proposed Third Party Sale (not to be unreasonably withheld); (ii)
the prospective third party purchaser is not a direct competitor of the Non-Selling Party
(in the reasonable determination of the Non-Selling Party); (iii) the Ownership Interest
offered for sale is a minority interest of either Greif HoldCo or Dabbagh HoldCo, as the
case may be; (iv) if the Third Party Sale involves Greif HoldCo, then the Third Party Sale
must be structured such that Greif Parent (or one of its Affiliates) would retain Control of
Greif HoldCo following consummation of the Third Party Sale and such other provisions shall
have been made (including, if applicable, amendments to the Transaction Documents and/or the
Constituent Documents) to the reasonable satisfaction of NSC to ensure that the governance
and economic aspects of the Global Alliance will continue to function post-Third Party Sale
in a manner substantially similar to the pre-Third Party Sale status and the intentions of
the parties reflected herein; and (v) if the Third Party Sale involves Dabbagh HoldCo, then
the Third Party Sale must be structured such that Dabbagh Parent (or one of its Affiliates)
would retain Control of Dabbagh HoldCo following consummation of the Third Party Sale and
such other provisions shall have been made (including, if applicable, amendments to the
Transaction Documents and/or the Constituent Documents) to the reasonable satisfaction of
Greif to ensure that the governance and economic aspects of the Global Alliance will
continue to function post-Third Party Sale in a manner substantially similar to the
pre-Third Party Sale status and the intentions of the parties reflected herein.
	 
	(e)	 	Transfers in Violation of JV Agreement Void; Default Transfers

	 	(i)	 	(A) Any attempted or actual Transfer of a direct or indirect Ownership Interest
in a Global Alliance Entity in violation of this JV Agreement by Greif or one of its
Affiliates shall be void ab initio and shall not be recorded in the books and records
of any Global Alliance Entity; provided that (1) all members of the
Boards of Directors of each of AssetCo, ChannelCo and KSA Hub and any other Global
Alliance Entity Board of Directors appointed at the direction of Greif shall
automatically be removed and the vote of such individuals shall no longer be required
in connection with any Board Ordinary Approval or Board Supermajority Approval, and (2)
NSC shall have the right (in addition to any of its other rights under this JV
Agreement) to receive from Greif any proceeds Greif or one of its Affiliates received
in connection with such void attempted or actual Transfer. (B) In the case of a
failure by Greif to make a Capital Contribution or Credit Support available that is
properly requested in accordance with Section 4.3 of the Formation Agreement,
NSC shall have the right (in addition to any of its other rights under this JV
Agreement) but not the obligation to require Greif to sell Greif’s direct or indirect
Ownership Interests in the Global Alliance Entities to NSC at a purchase price equal to
seventy-five percent (75%) of the book value of Greif’s Ownership Interests. Upon
receipt of notice from NSC indicating that NSC wishes to purchase Greif’s Ownership
Interests (the Dabbagh Call Notice), Greif shall be obligated to sell Greif’s Ownership
Interests to NSC and NSC shall be obligated to purchase Greif’s Ownership Interests
from Greif. The closing on such purchase shall be within thirty (30) calendar days
after Greif’s receipt of the Dabbagh Call Notice or, if later, the fifth Business Day
after the determination of the purchase price and the receipt of any required
regulatory approvals. NSC and Greif shall execute such documents and instruments as
may be necessary or appropriate to effect the foregoing pursuant to this Section
3.2(e)(i).

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	 	(ii)	 	(A) Any attempted or actual Transfer of a direct or indirect Ownership Interest
in a Global Alliance Entity in violation of this JV Agreement by NSC or one of its
Affiliates shall be void ab initio and shall not be recorded in the books and records
of any Global Alliance Entity; provided that (1) all members of the
Boards of Directors of each of AssetCo, ChannelCo and KSA Hub and any other Global
Alliance Entity Board of Directors appointed at the direction of NSC shall
automatically be removed and the vote of such individuals shall no longer be required
in connection with any Board Ordinary Approval or Board Supermajority Approval, and (2)
Greif shall have the right (in addition to any of its other rights under this JV
Agreement) to receive from NSC any proceeds NSC or any of its Affiliates received in
connection with such void attempted or actual Transfer. (B) In the case of a failure
by NSC to make a Capital Contribution or Credit Support available that is properly
requested in accordance with Section 4.3 of the Formation Agreement, Greif
shall have the right (in addition to any of its other rights under this JV Agreement)
but not the obligation to require NSC to sell NSC’s direct or indirect Ownership
Interests in the Global Alliance Entities to Greif at a purchase price equal to
seventy-five percent (75%) of the book value of NSC’s Ownership Interests. Upon
receipt of notice from Greif indicating that Greif wishes to purchase NSC’s Ownership
Interests (the Greif Call Notice), NSC shall be obligated to sell NSC’s Ownership
Interests to Greif and Greif shall be obligated to purchase NSC’s Ownership Interests
from NSC. The closing on such purchase shall be within thirty (30) calendar days after
NSC’s receipt of the Greif Call Notice or, if later, the fifth Business Day after the
determination of the purchase price and the receipt of any required regulatory
approvals. NSC and Greif shall execute such documents and instruments as may be
necessary or appropriate to effect the foregoing pursuant to this Section
3.2(e)(ii).

	3.3	 	Continuing Obligations to Make Capital Contributions

	 	 	Neither a Third Party Sale nor an IPO shall release the Person that effects a Transfer from
its obligations to make one hundred percent (100%) of the Capital Contributions, and make
available one hundred percent (100%) of the Credit Support, applicable to it as set forth in
the Formation Agreement and the Strategic Plan.

	4.	 	DISSOLUTION
	 
	4.1	 	General
	 
	 	 	The Global Alliance shall continue without interruption indefinitely unless otherwise
terminated earlier pursuant to this Section 4; provided, however,
that a Global Alliance Entity shall not terminate until its affairs have been wound up and
its assets distributed as provided herein.
	 
	4.2	 	Fault Dissolution
	 
	 	 	The Global Alliance shall terminate and each Global Alliance Entity shall be wound up and
its assets distributed if either Greif or NSC notifies the other that any of the following
circumstances exists (the Termination Conditions):
	 
	(a)	 	either (i) the continued participation of either Greif or NSC in the Global Alliance would
cause any of Greif, NSC (or any of their respective Affiliates) or any Global Alliance Entity
to violate any applicable Law in any material respect, (ii) NSC or any of its Affiliates has
become, or is likely to become, subject to OFAC sanctions or similar sanctions administered by
any other relevant Governmental Authority, or (iii) any Governmental Authority requires Greif,
NSC or any of their respective Affiliates to divest any

20

 

	 	 	portion of its direct or indirect Ownership Interest in a Global Alliance Entity, and, in
the case of either subclause (i), (ii) or (iii) above, no Transfer pursuant to Section
3.2(b) is capable of being effected; or

	(b)	 	(A) a Default Event has occurred with respect to either Greif or NSC (or any of their
respective Affiliates), excluding an event under clauses (c), (d), (e) or (f) under the
definition of Default Event (a Bankruptcy Event); or (B) a Bankruptcy Event occurs with
respect to either Greif or NSC (or any of their respective Affiliates that represents 10% or
more of the total assets or total revenues of its respective corporate group).

	4.3	 	Termination
	 
	(a)	 	Termination Condition Date

	 	 	Not later than forty (40) calendar days after a Termination Condition exists (the
Termination Condition Date) each of Greif and NSC shall proceed to terminate the Global
Alliance and wind up each Global Alliance Entity.

	(b)	 	Global Alliance Sale Procedure; Commercially Reasonable Efforts

	 	 	Except as expressly stated otherwise, the approval requirements set forth in Sections
1.3(a), Section 1.3(b) and 1.3(c) hereof shall not be applicable to the
implementation of the arrangements set forth in this Section 4.3(b). Each of Greif
and NSC shall use its respective commercially reasonable efforts to sell each Global
Alliance Entity as a going concern to a third party that is not a direct competitor of
either Greif or NSC or to either of Greif or NSC and to obtain any necessary Governmental
Approvals required to effect such sales. To facilitate such sales, each of Greif and NSC
shall consent to the selection of an investment banking firm to manage any such sales in
such a manner as to maximize the value of such entities for each of Greif and NSC and to
provide indemnities and other protections for each of Greif and NSC from post-sale
Liabilities of the Global Alliance Entities, including with respect to post-closing
environmental and decommissioning matters. In the event that Greif and NSC have not
completed the sales of all of the Global Alliance Entities individually within three (3)
years after the Termination Condition Date (the Sale Period), each Global Alliance Entity
that has not been sold shall be liquidated pursuant to the procedures set forth in
Section 4.4.

	4.4	 	Liquidation

	(a)	 	Appointment of Liquidator; Responsibilities

	 	 	Upon the required liquidation of a Global Alliance Entity in accordance with Section
4.3(b), the Board of Directors of each such Global Alliance Entity shall select a Person
to be the liquidator of such Global Alliance Entity (the Liquidator). In the event any such
Board of Directors cannot unanimously agree on the Liquidator, the CEO of each of Greif and
NSC (or such CEOs’ representatives) shall jointly select the Liquidator for such Global
Alliance Entity. In the event that liquidation is for KSA Hub, then shareholders of KSA Hub
shall jointly select the Liquidator for KSA Hub. In the event that liquidation is for
ChannelCo or AssetCo and the Person selected as Liquidator is not a member of the Board of
Directors of such entity, then the shareholders of such entity shall resolve to appoint the
selected Person as Liquidator for such entity. The Liquidator shall not resign at any time
without twenty (20) calendar days’ prior written notice and may only be removed by unanimous
approval of the applicable Board of Directors, or, in the event of a failure to obtain such
unanimous approval, then jointly by the CEO of each of Greif and NSC (or such CEOs’
representatives), unless otherwise provided for by Law as applicable to the subject Global
Alliance Entity. Upon dissolution, resignation, or removal of the

21

 

	 	 	Liquidator, a successor and substitute Liquidator (who shall have and succeed to all rights,
powers, and obligations of the original Liquidator) shall, within forty (40) calendar days
thereafter, be selected by the unanimous approval of the applicable Board of Directors. To
the extent permissible by Law as applicable to the subject Global Alliance Entity, the
Liquidator shall, subject to providing adequate reserves, distribute any assets (including
Unrealized Appreciation) among the owners of such Global Alliance Entity, provided,
however, that neither Greif nor NSC may receive an amount in excess of its positive
capital account balance with respect to each entity that may be taxed as a partnership under
United States Laws. If any assets still remain in such Global Alliance Entity, the
Liquidator shall liquidate such assets and apply and distribute the proceeds of such
liquidation in the following order and priority, to the maximum extent permitted by Law:

	 	(i)	 	first, to creditors of such Global Alliance Entity (including owners thereof to
the extent permitted by Law) in satisfaction of the Global Alliance Entity’s known
debts and Liabilities (whether by payment or the making of provision for the known
amount thereof);

	 	(ii)	 	second, to repay all costs incurred by such Global Alliance Entity in
connection with the liquidation proceedings; and

	 	(iii)	 	third, to the owners of such Global Alliance Entity, pro rata in accordance
with the positive balances of their respective capital accounts in the event the entity
is taxed as a partnership under United States Laws, or in accordance with their
Ownership Interests for all other entities.

	(b)	 	Distribution in Trust

	 	 	Notwithstanding the provisions of Section 4.4(a) requiring the liquidation of the
assets of a Global Alliance Entity (but subject to the order of priorities set forth
therein) and if permitted under the Laws of the jurisdiction where the relevant Global
Alliance Entity is incorporated, in the discretion of the Liquidator, a pro rata
portion of the distributions that would otherwise be made to the owners of such Global
Alliance Entity pursuant to Section 4.4(a) hereof may be:

	 	(i)	 	distributed to a trust established for the benefit of the owners for the
purposes of liquidating the Global Alliance Entity’s assets, collecting amounts owed to
the Global Alliance Entity, and paying any contingent or unforeseen Liabilities or
obligations of the Global Alliance Entity or of the owners arising out of or in
connection with the Global Alliance Entity. The assets of any such trust shall be
distributed to the owners from time to time, in the reasonable discretion of the
Liquidator, in the same proportions as the amount distributed to such trust by the
Global Alliance Entity that would otherwise have been distributed to the owners of the
Global Alliance Entity pursuant to this JV Agreement; or

	 	(ii)	 	withheld to provide a reasonable reserve of the Global Alliance Entity’s
Liabilities (contingent or otherwise) and to reflect the unrealized portion of any
installment obligations owed to the Global Alliance Entity, provided
that such withheld amount shall be distributed to the owners of such Global
Alliance Entity as soon as practicable.

	4.5	 	Continuing Obligations to Make Capital Contributions

	 	 	A Termination Condition shall extinguish, without any further Liability, all further
obligations to make Capital Contributions, or to make available Credit Support, pursuant to
the Strategic Plan of each of Greif and NSC, except that each of Greif and NSC shall remain
liable for any obligation that existed prior to the occurrence of a Termination Condition.

22

 

	5.	 	MISCELLANEOUS
	 
	5.1	 	Confidentiality

	(a)	 	Covenant of Confidentiality. Except as may be required by applicable Law, each of
Greif Parent, Greif, Dabbagh Parent and NSC shall treat all Confidential Information of each
other and any Global Alliance Entity that is obtained in connection with participation in the
Global Alliance, and not otherwise known to them or already in the public domain (other than
through a breach by any Person of any duty or obligation of confidentiality), as confidential.
	 
	(b)	 	No Disclosure or Unauthorized Use of Confidential Information. Each of Greif Parent,
Greif, Dabbagh Parent and NSC acknowledge that the Confidential Information described in
Section 5.1(a) is a valuable and unique asset and covenants that it will not allow the
disclosure of any such Confidential Information to any Person, other than its advisors (who
shall receive such Confidential Information with no right to disclose the same or use it
except for the same use as permitted to the disclosing party), for any reason whatsoever,
unless such information is in the public domain through no wrongful act of such disclosing
party or such disclosure is required by Law. Neither Greif Parent, Greif, Dabbagh Parent nor
NSC shall use the Confidential Information described in Section 5.1(a) in any manner
or for any purpose except as expressly permitted by the other or the Global Alliance Entity
that owns the Confidential Information or from which it was obtained.
	 
	(c)	 	Affiliates. The terms of this Section 5.1 shall apply to any Affiliate of
Greif Parent or Dabbagh Parent to the same extent as if such Affiliate were either Greif
Parent or Dabbagh Parent, and each of Greif Parent and Dabbagh Parent shall take whatever
actions may be necessary to cause any of its Affiliates to adhere to the terms of this
Section 5.1.
	 
	(d)	 	Injunctive Relief.

	 	(i)	 	In the event of any breach or threatened breach by Greif Parent or Greif of any
provision of this Section 5.1, NSC shall be entitled to injunctive or other
equitable relief, restraining Greif Parent and Greif from using or disclosing any
Confidential Information, in whole or in part, or from engaging in conduct that would
constitute a breach of their obligations under this Section 5.1. Such relief
shall be in addition to and not in lieu of any other remedies that may be available,
including an action for the recovery of damages.

	 	(ii)	 	In the event of any breach or threatened breach by Dabbagh Parent or NSC of any
provision of this Section 5.1, Greif shall be entitled to injunctive or other
equitable relief, restraining Dabbagh Parent and NSC from using or disclosing any
Confidential Information, in whole or in part, or from engaging in conduct that would
constitute a breach of the obligations of their obligations under this Section
5.1. Such relief shall be in addition to and not in lieu of any other remedies
that may be available, including an action for the recovery of damages.

	5.2	 	Compliance with Agreement

	 	 	Each of Greif, NSC, Greif Parent and Dabbagh Parent shall, and shall cause its respective
employees and agents to, take all actions as a shareholder or director or officer of any
other entity that is required to cause any other entity to conduct its business and to take
such actions as shall be necessary in order to effect this JV Agreement, the Transactions or
the Transaction Documents.

23

 

	5.3	 	Compliance with Laws
	 
	(a)	 	Notwithstanding anything to the contrary contained in this JV Agreement or any other
Transaction Document, from and after the Closing, each of Greif and NSC and their respective
Affiliates (which Affiliates are directly or indirectly engaged in the Polywoven Industrial
Packaging Business) and each Global Alliance Entity and each Global Alliance Subsidiary shall
comply with the requirements of all Laws applicable to each respective party in all material
respects and shall make such filings, take such actions, refrain from such actions and
otherwise provide all cooperation as may reasonably be requested by the affected party from
time to time to ensure that neither Greif nor NSC nor their respective Affiliates (including
the Global Alliance Entities and Global Alliance Subsidiaries) is in violation of any Law
applicable to them (including by reason of their ownership in any Global Alliance Entity or
Global Alliance Subsidiary) and to the extent that the exercise of any right or fulfillment of
any obligation under this JV Agreement would cause Greif or NSC, their respective Affiliates
or a Global Alliance Entity or Global Alliance Subsidiary to violate any applicable Law in any
material respect, then such right will be exercised or such obligation will be complied with
only to the extent that (i) applicable Law will not be so violated and (ii) such is in
accordance with each of Greif’s and NSC’s compliance policies, including the Joint Venture
Compliance Policy.
	 
	(b)	 	Each of Greif and NSC shall formally adopt, implement and from time to time amend the Joint
Venture Compliance Policy and shall cooperate in good faith to develop and implement any other
appropriate compliance policies designed to ensure that the Global Alliance, each Global
Alliance Entity, each Global Alliance Subsidiary and NSC and its Affiliates in connection with
their direct or indirect participation in the Global Alliance, complies in all material
respects with all applicable Laws, including anti-terrorism sanctions and Laws concerning
worker health and safety, environmental protection, anti-corruption, anti-boycott and
anti-money-laundering and shall implement and maintain adequate internal financial and
management controls and procedures to monitor, audit, detect and prevent the violation of such
applicable Laws. Greif shall from time to time provide NSC and each Global Alliance Entity
with information concerning applicable U.S. anti-bribery and anti-corruption Laws and the
sanctions programs administered by OFAC; the parties agree that such provision of information
shall not be construed as providing legal advice to NSC.
	 
	(c)	 	No Applicable Person shall violate any anti-bribery or anti-corruption Laws, nor shall any
Applicable Person, directly or indirectly, offer, pay, promise to pay, or authorize a
Prohibited Payment to any Government Official or to any person under circumstances where such
Applicable Person knew or was aware of a reasonable probability that all or a portion of such
money or thing of value would be offered, given or promised, directly or indirectly, to any
Government Official, for the purpose of:

	 	(i)	 	either influencing any act or decision of such Government Official in his
official capacity, inducing such Government Official to do or omit to do any act in
relation to his lawful duty, securing any improper advantage, or inducing such
Government Official to influence or affect any act or decision of any Governmental
Authority or instrumentality; or

	 	(ii)	 	assisting Greif, NSC, any Global Alliance Entity, any Global Alliance
Subsidiary or any of their respective Affiliates in obtaining or retaining business for
or with, or directing business to any of them.

	 	(iii)	 	each of Greif, NSC, Greif Parent and Dabbagh Parent agrees to promptly report
to the others any Prohibited Payment made in connection with the Global Alliance, any
Global Alliance

24

 

	 	 	 	Entity or any Global Alliance Subsidiary of which any of them obtains knowledge or
has reasonable grounds to believe has occurred.

	(d)	 	No Relevant Person shall engage directly or indirectly in transactions connected with any
government, country, or other entity or Person that is the target of or subject to sanctions
administered by OFAC or any other relevant Governmental Authority, including all entities
owned by any Persons identified on the SDN List. No Relevant Person is any such Person or
entity. Notwithstanding the foregoing, NSC and its Affiliates may engage in transactions with
(i) countries or governments that are subject to sanctions administered by OFAC or any other
relevant Governmental Authority and (ii) Persons identified on OFAC’s SDN List solely due to
their being owned or controlled by a government that is subject to OFAC sanctions under a
“country regime” (rather than a “bad actor” regime), provided that: (x) such
activities do not violate laws applicable to NSC or its Affiliates, (y) such activities are
wholly unrelated to any of Greif or its Affiliates, the Global Alliance, any Global Alliance
Entity or any Global Alliance Subsidiary and do not contravene the Joint Venture Compliance
Policy and (z) such activities do not constitute the predominant share of the business
activities (as constituted by revenues generated) of NSC or Dabbagh Parent or result in NSC or
Dabbagh Parent materially acting on behalf of such Persons, countries or governments. Each of
Greif, NSC, Greif Parent and Dabbagh Parent agrees to promptly report to the others upon
obtaining knowledge or having reasonable grounds to believe that a Relevant Person has become
or is likely to become the target of any such sanctions which may be grounds for termination
of the Global Alliance pursuant to Section 4.2(a) of this JV Agreement.

5.4 Notices

	 	 	All notices that are required or permitted hereunder shall be in writing and shall be
sufficient if personally delivered or sent by email, registered or certified mail, facsimile
message or internationally recognized courier service. Any notices shall be deemed given
upon the earlier of the date when received at, or the third Business Day after the date when
sent by an internationally recognized courier service, or the day after the date when sent
by email to or facsimile to, the address or facsimile number set forth below, unless such
address or facsimile number is changed by notice to the other parties, and shall be
delivered by hand or courier service, mailed or sent by email, graphic scanning or other
telegraphic communications equipment of the sending party, as follows:
	 
	 	 	Greif:

Greif International Holding Supra C.V.

Bergseweg 6, 3633 AK Vreeland

The Netherlands

Attn: SBU Controller

Fax: +31 294 232 441

with required copies (which copies shall not constitute notice) to:

Greif, Inc.

425 Winter Road

Delaware, OH 43015

Attn: President

Fax: +1 740 549 6101

and

25

 

Greif, Inc.

425 Winter Road

Delaware, OH 43015

Attn: General Counsel

Fax: +1 740 549 6101

and

Allen & Overy LLP

1221 Avenue of the Americas

New York, NY 10020

Attn: Eric S. Shube

email: eric.shube@allenovery.com

Fax: +1 212 610 6399

Greif Parent:

Greif, Inc.

425 Winter Road

Delaware, OH 43015

Attn: President

Fax: +1 740 549 6101

with a required copy (which copy shall not constitute notice) to:

Greif, Inc.

425 Winter Road

Delaware, OH 43015

Attn: General Counsel

Fax: +1 740 549 6101

and

Allen & Overy LLP

1221 Avenue of the Americas

New York, NY 10020

Attn: Eric S. Shube

email: eric.shube@allenovery.com

Fax: +1 212 610 6399

NSC:

National Scientific Company Limited

P.O. Box 1039

Jeddah 21431

Kingdom of Saudi Arabia

Attn: M H Jazeel

email: jazeel@dabbagh.com

Fax: +966 2 669 6184

26

 

with required copies (which copies shall not constitute notice) to:

Dabbagh Group Holding Company Limited

P.O. Box 1039

Jeddah 21431

Kingdom of Saudi Arabia

Attn: M H Jazeel

email: jazeel@dabbagh.com

Fax: +966 2 669 6184

and

Legal Advisors, In Association with Baker & McKenzie

Olayan Complex

Tower II, 3rd Floor

Riyadh 11491

Saudi Arabia

Attn: George Sayen

email: george.sayen@bakermckenzie.com

Fax: +966 1 291 5571

Dabbagh Parent:

Dabbagh Group Holding Company Limited

P.O. Box 1039

Jeddah 21431

Kingdom of Saudi Arabia

Attn: M H Jazeel

email: jazeel@dabbagh.com

Fax: +966 2 669 6184

with a required copy (which copy shall not constitute notice) to:

Legal Advisors, In Association with Baker & McKenzie

Olayan Complex

Tower II, 3rd Floor

Riyadh 11491

Saudi Arabia

Attn: George Sayen

email: george.sayen@bakermckenzie.com

Fax: +966 1 291 5571

	5.5	 	Governing Law; Jurisdiction

	(a)	 	This JV Agreement, any non-contractual obligations arising out of or in connection with this
JV Agreement (and any Disputes arising out of or related hereto or to the Transactions or to
the inducement of any party to enter herein, whether for breach of contract, tortious conduct
or otherwise and whether predicated on common law, statute or otherwise), shall in all
respects be governed by and construed in accordance with the laws of England and Wales,
including all matters of construction, validity and performance, in each case without
reference to any conflict of law rules that might lead to the

27

 

	 	 	application of the laws of another jurisdiction. The English courts have exclusive
jurisdiction to settle any Dispute arising out of or in connection with this JV Agreement
(including a Dispute relating to any non-contractual obligations arising out of or in
connection with this JV Agreement) and each of Greif Parent, Greif, Dabbagh Parent and NSC
hereby irrevocably and unconditionally submit to the exclusive jurisdiction of the English
courts, for the purposes of any Proceeding.
	 
	(b)	 	Each of Greif Parent and Greif irrevocably appoints Grief UK Limited, Business Unit Manager
of Merseyside Works, of Oil Sites Road, Ellesmere Port, Cheshire CH65 4EZ as their agent in
England for service of process.
	 
	(c)	 	Each of Dabbagh Parent and NSC irrevocably appoints Law Debenture Corporate Services Limited,
of 100 Wood Street, London EC2V 7EX as their agent in England for service of process.
	 
	(d)	 	Each of Greif (on behalf of Greif and its Affiliates) and NSC (on behalf of NSC and its
Affiliates) irrevocably and unconditionally waives, to the fullest extent permitted by
applicable Law, any objection to the laying of venue of any such Proceeding in English courts,
and hereby and thereby further irrevocably and unconditionally waives and agrees not to plead
or claim in any such court that any such Proceeding brought in any such court has been brought
in an inappropriate or inconvenient forum.
	 
	(e)	 	Each of Greif (on behalf of Greif and its Affiliates) and NSC (on behalf of NSC and its
Affiliates) irrevocably and unconditionally waives, to the fullest extent permitted by
applicable Law, any right it may have to a trial by jury in any Proceeding arising, directly
or indirectly, out of or relating to this JV Agreement, any other Transaction Document or the
transactions contemplated herein or therein and for any counterclaim therein (in each case
whether based on contract, tort or any other theory and whether predicated on common law,
statute or otherwise). Each of Greif (on behalf of Greif and its Affiliates) and NSC (on
behalf of NSC and its Affiliates) (1) certifies that no representative, agent or attorney of
any other party has represented, expressly or otherwise, that such other party would not, in
the event of a Proceeding, seek to enforce the foregoing waiver, and (2) acknowledges that it
and the other parties have been induced to enter into this JV Agreement by, amongst other
things, the mutual waivers and certifications in this clause.
	 
	5.6	 	Severability
	 
	 	 	If any provision of this JV Agreement shall be held to be illegal, invalid or unenforceable,
Greif, NSC, Greif Parent and Dabbagh Parent agree that such provision will be enforced to
the maximum extent permissible so as to effect the intent of Greif, NSC, Greif Parent and
Dabbagh Parent and the validity, legality and enforceability of the remaining provisions of
this JV Agreement shall not in any way be affected or impaired thereby. If necessary to
effect the intent of Greif, NSC, Greif Parent and Dabbagh Parent, each of Greif, NSC, Greif
Parent and Dabbagh Parent will negotiate in good faith to amend this JV Agreement to replace
the unenforceable language with enforceable language that as closely as possible reflects
such intent.
	 
	5.7	 	Amendments
	 
	 	 	This JV Agreement may be modified only by a written amendment signed by each of Greif, NSC,
Greif Parent and Dabbagh Parent.

28

 

	5.8	 	Waiver
	 
	 	 	Any term or provision of this JV Agreement may be waived at any time by the Person entitled
to the benefit thereof by a written instrument duly executed by such Person. The waiver by
Greif, NSC, Greif Parent or Dabbagh Parent of any instance of another Person’s noncompliance
with any obligation or responsibility herein shall be in writing and signed by the waiving
Person and shall not be deemed a waiver of other instances of such other Person’s
noncompliance.
	 
	5.9	 	Counterparts
	 
	 	 	This JV Agreement may be executed in two or more counterparts, each of which shall be
binding as of the date first written above, and all of which shall constitute one and the
same instrument. Each such copy shall be deemed an original, and it shall not be necessary
in making proof of this JV Agreement to produce or account for more than one such
counterpart.
	 
	5.10	 	Entire Agreement
	 
	 	 	The provisions of this JV Agreement set forth the entire agreement and understanding among
each of Greif, NSC, Greif Parent and Dabbagh Parent as to the formation of the Global
Alliance and supersede all prior agreements, oral or written, and all other prior
communications between Greif, NSC, Greif Parent and Dabbagh Parent relating to the formation
of such Global Alliance, other than the other Transaction Documents.
	 
	5.11	 	No Assignment; No Third Party Beneficiaries
	 
	 	 	This JV Agreement shall be binding upon and inure to the benefit of and be enforceable by
the respective heirs, legal representatives, successors and permitted assigns of Greif, NSC,
Greif Parent and Dabbagh Parent. Nothing in this JV Agreement shall confer any rights upon
any Person other than Greif, NSC, Greif Parent and Dabbagh Parent and their respective
heirs, legal representatives, successors and permitted assigns, except as provided in this
Section 5.11. None of Greif, NSC, Greif Parent and Dabbagh Parent shall assign this
JV Agreement, or any right, benefit or obligation hereunder. Any attempted assignment of
this JV Agreement in violation of this Section 5.11 shall be void and of no effect.
	 
	5.12	 	Publicity
	 
	 	 	Each of Greif, NSC, Greif Parent and Dabbagh Parent shall consult in good faith with each
other with a view to agreeing upon any press release or public announcement relating to the
Transactions or by the other Transaction Documents prior to the consummation thereof.
Notwithstanding the foregoing, each party may make any public disclosures required by Law or
stock exchange regulation, but will make commercially reasonable efforts to give the other
parties an opportunity to review any such disclosure prior to release (to the extent
practicable).
	 
	5.13	 	Construction
	 
	 	 	This JV Agreement has been negotiated by Greif, NSC, Greif Parent and Dabbagh Parent and
their respective counsel and shall be fairly interpreted in accordance with its terms and
without any strict construction in favor of or against any of Greif, NSC, Greif Parent and
Dabbagh Parent.

29

 

	5.14	 	Disclaimer of Agency
	 
	 	 	Except for provisions herein expressly authorizing one (1) Person to act for another, this
JV Agreement shall not constitute any of Greif, NSC, Greif Parent or Dabbagh Parent as a
legal representative or agent of another party, nor shall any of Greif, NSC, Greif Parent
and Dabbagh Parent have the right or authority to assume, create or incur any Liability or
any obligation of any kind, expressed or implied, against or in the name or on behalf of
another party or any of its Affiliates or any of the Global Alliance Entities unless
otherwise expressly permitted by each of Greif, NSC, Greif Parent and Dabbagh Parent.
	 
	5.15	 	Relationship of Greif Parent, Greif, Dabbagh Parent and NSC
	 
	 	 	Nothing contained in this JV Agreement shall be deemed to create a partnership entity among
any of Greif Parent, Greif, Dabbagh Parent and NSC or any of their Affiliates.
	 
	5.16	 	Language
	 
	 	 	Each of Greif, NSC, Greif Parent and Dabbagh Parent have negotiated this JV Agreement in,
and the definitive version of this JV Agreement shall be in, the English language and all
communications relating hereto shall be in the English language.
	 
	5.17	 	Interpretation and Construction of this JV Agreement
	 
	 	 	The definitions in Annex 1 to the Formation Agreement shall apply equally to both
the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms. The words
“include,” “includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” Unless the context shall require otherwise, the word “or” shall be inclusive
and not exclusive. All references herein to Articles, Sections, Annexes, Exhibits and
Schedules shall be deemed to be references to Articles and Sections of, and Annexes,
Exhibits and Schedules to, this JV Agreement unless the context shall otherwise require.
The table of contents and the headings of the Articles and Sections are inserted for
convenience of reference only and are not intended to be a part of or to affect the meaning
or interpretation of this JV Agreement. Unless the context shall otherwise require, any
reference to any agreement or other instrument or statute or regulation is to such
agreement, instrument, statute or regulation as amended and supplemented from time to time
(and, in the case of a statute or regulation, to any successor provision). Any reference in
this JV Agreement to a “day” or a number of “days” (without the explicit qualification of
“Business”) shall be interpreted as a reference to a calendar day or number of calendar
days. If any action or notice is to be taken or given on or by a particular calendar day,
and such calendar day is not a Business Day, then such action or notice shall be deferred
until, or may be taken or given, on the next Business Day. In the event of a conflict
between any provision of a Transaction Document (other than this JV Agreement) and any
provision of this JV Agreement, each of Greif, Greif Parent, Dabbagh Parent and NSC agree to
cause the provision of the Transaction Document to be amended to conform to the relevant
provision of this JV Agreement to the fullest extent permitted by applicable Law. Unless
otherwise noted, all references in this JV Agreement to “$” shall refer to U.S. Dollars.

30

 

SIGNATORIES

IN WITNESS WHEREOF, Greif Parent, Greif, Dabbagh Parent and NSC have caused their respective duly
authorized officers to execute this JV Agreement as of the day and year first above written.

	 	 	 	 	 
	 	

GREIF, INC.

 	 
	 	By:  	/s/ Michael J. Gasser
 	 
	 	 	Name:  	Michael J. Gasser 	 
	 	 	Title:  	Chairman & CEO 	 
	 
	 	GREIF INTERNATIONAL HOLDING SUPRA C.V.

 	 
	 	By:  	Greif CV-Management LLC
 	 
	 
	 	By:  	         /s/ Michael J. Gasser
 	 
	 	 	Name:  	Michael J. Gasser 	 
	 	 	Title:  	Chairman 	 
	 
	 	NATIONAL SCIENTIFIC COMPANY LIMITED

 	 
	 	By:  	/s/ Waheed Ahmed Shaikh
 	 
	 	 	Name:  	Waheed Ahmed Shaikh 	 
	 	 	Title:  	COO 	 
	 
	 	DABBAGH GROUP HOLDING COMPANY LIMITED

 	 
	 	By:  	/s/ Mohamed Husnee Jazeel
 	 
	 	 	Name:  	Mohamed Husnee Jazeel 	 
	 	 	Title:  	CFO 	 
	 

31exv10wff

Exhibit 10ff

EXECUTION VERSION

 

Sale Agreement

by and between

Greif Packaging LLC,

and each other entity from time to time party hereto as an Originator,

as Originators

and

Greif Receivables Funding LLC,

as the SPV

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	SECTION 1.1 Definitions
	 	 	1	 
	SECTION 1.2 Other Terms
	 	 	4	 
	SECTION 1.3 Computation of Time Periods
	 	 	4	 
	ARTICLE II SALE AND PURCHASE OF RECEIVABLES
	 	 	5	 
	SECTION 2.1 Sale
	 	 	5	 
	SECTION 2.2 Intent of the Parties; Grant of Security Interest
	 	 	5	 
	SECTION 2.3 No Recourse
	 	 	6	 
	SECTION 2.4 No Assumption of Obligations
	 	 	6	 
	SECTION 2.5 UCC Filing
	 	 	6	 
	ARTICLE III CONSIDERATION AND PAYMENT
	 	 	6	 
	SECTION 3.1 Purchase Price
	 	 	6	 
	SECTION 3.2 Subordination
	 	 	7	 
	ARTICLE IV ADMINISTRATION AND COLLECTION
	 	 	8	 
	SECTION 4.1 Servicing of Receivables
	 	 	8	 
	SECTION 4.2 Deemed Collections
	 	 	8	 
	SECTION 4.3 Actions Evidencing Purchases
	 	 	9	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	 	 	10	 
	SECTION 5.1 Mutual Representations and Warranties
	 	 	10	 
	SECTION 5.2 Originators’ Additional Representations and Warranties
	 	 	11	 
	SECTION 5.3 Notice of Breach
	 	 	14	 
	ARTICLE VI COVENANTS
	 	 	14	 
	SECTION 6.1 Mutual Covenants
	 	 	14	 
	SECTION 6.2 Affirmative Covenants of the Originator
	 	 	15	 
	SECTION 6.3 Negative Covenants of the Originator
	 	 	17	 
	ARTICLE VII TERM AND TERMINATION
	 	 	18	 
	SECTION 7.1 Term
	 	 	18	 
	SECTION 7.2 Effect of Purchase Termination Date
	 	 	19	 
	ARTICLE VIII INDEMNIFICATION
	 	 	19	 
	SECTION 8.1 Indemnities by the Originator
	 	 	19	 

-i-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE IX MISCELLANEOUS PROVISIONS
	 	 	21	 
	SECTION 9.1    Waivers; Amendments
	 	 	21	 
	SECTION 9.2    Notices
	 	 	22	 
	SECTION 9.3    Governing Law
	 	 	22	 
	SECTION 9.4    Integration
	 	 	22	 
	SECTION 9.5    Severability of Provisions
	 	 	22	 
	SECTION 9.6    Counterparts; Facsimile Delivery
	 	 	22	 
	SECTION 9.7    Successors and Assigns; Binding Effect
	 	 	22	 
	SECTION 9.8    Costs, Expenses and Taxes
	 	 	22	 
	SECTION 9.9    No Proceedings; Limited Recourse
	 	 	23	 
	SECTION 9.10  Further Assurances
	 	 	23	 

	 	 	 

	SCHEDULES
	 	 
	Schedule I

	 	Originator Information
	Schedule II

	 	Blocked Account Banks and Account Information
	Schedule III

	 	Perfection Representations, Warranties and Covenants
	Schedule IV

	 	List of Obligors of Retained Receivables

-ii-

 

 

SALE AGREEMENT

     This SALE AGREEMENT, dated as of December 8, 2008 (this “Agreement”), by and between
GREIF PACKAGING LLC, a Delaware limited liability company (“GP”), and each other entity
from time to time party hereto as an Originator (each, an “Originator” and collectively,
the “Originators”), and GREIF RECEIVABLES FUNDING LLC, a Delaware limited liability company
(the “SPV”). The parties hereto agree as follows:

WITNESSETH:

     WHEREAS, in the ordinary course of its business, the Originators acquire and originate, from
time to time, Receivables and related rights arising pursuant to certain Contracts between the
Originators and various Obligors;

     WHEREAS, Grief, Inc. (“Greif”) owns all of the outstanding membership interests of the
SPV;

     WHEREAS, the Originators wish to sell, contribute or otherwise convey certain Conveyed
Receivables and Related Assets to the SPV, from time to time, and the SPV is willing to purchase or
otherwise acquire Receivables and Related Assets from the Originators, on the terms and subject to
the conditions set forth herein;

     WHEREAS, the Originators and the SPV intend the conveyances effected hereunder to be true
sales or contributions, as the case may be, of Conveyed Receivables and Related Assets (including
all of the Originators’ rights, titles and interests in and to any related Contracts) by the
Originators to the SPV, providing the SPV with the full benefits of ownership of the Conveyed
Receivables and Related Assets, and the Originators and the SPV do not intend the conveyances
effected hereunder to be characterized as loans from the SPV to the Originators;

     WHEREAS, the Originators and the SPV acknowledge that a lien and security interest in the
Conveyed Receivables and certain of the Related Assets sold, contributed or otherwise conveyed by
the Originators to the SPV hereunder will be granted and assigned by the SPV pursuant to the Second
Tier Agreement (as hereinafter defined) and the related Transaction Documents to Bank of America,
National Association, as Agent, on behalf of the Secured Parties;

     NOW, THEREFORE, in consideration of the foregoing, other good and valuable consideration, and
the mutual terms and covenants contained herein, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Definitions. All capitalized terms used herein shall have the meanings
specified herein or, if not so specified, the meaning specified in, or incorporated by reference
into, the Second Tier Agreement (all such meanings to be equally applicable to the singular and
plural forms of the terms defined). As used in this Agreement, the following terms shall have the
following meanings:

 

 

     “Asset Purchase Price” is defined in Section 3.1(a).

     “Conveyed Receivable” shall mean each Receivable sold by an Originator to the SPV in
accordance with Section 2.1.

     “Deferred Purchase Price” is defined in Section 3.1(b).

     “Initial Purchase” is defined in Section 2.1(a).

     “Initial Purchase Date” shall mean the Closing Date or such later date as the parties
hereto shall agree.

     “Minimum Capital Test” shall mean a test that is satisfied on any day when (a) the
Aggregate Unpaid Balance minus (b) the Net Investment minus (c) the then
outstanding aggregate Deferred Purchase Price is equal to or greater than $5,000,000.

     “Originator Indemnified Amounts” is defined in Section 8.1.

     “Originator Indemnified Parties” is defined in Section 8.1.

     “Originators” shall have the meaning set forth in the Preamble hereto.

     “Permitted Payments” is defined in Section 3.2(b).

     “Purchase” shall mean, as the context may require, the Initial Purchase or a
Subsequent Purchase.

     “Purchase Date” shall mean the Initial Purchase Date or a Subsequent Purchase Date,
as the context may require.

     “Purchase Termination Date” is defined in Section 7.1.

     “Related Assets” shall mean, with respect to each Receivable:

     (A) any Returned Goods and documentation or title evidencing the shipment or storage of
any goods relating to any sale giving rise to such Receivable;

     (B) all other security interests or liens and property subject thereto from time to
time, if any, purporting to secure payment of such Receivable, whether pursuant to the
related Contract or otherwise, together with all financing statements and other filings
authorized by an Obligor relating thereto;

     (C) all guarantees, indemnities, warranties, letters of credit, insurance policies and
proceeds and premium refunds thereof and other agreements or arrangements of any kind from
time to time supporting or securing payment of such Receivable, whether pursuant to the
Contract related to such Receivable or otherwise;

2

 

     (D) all records, instruments, documents and other agreements (including any Contract
with respect thereto) related to such Receivable;

     (E) all Collections with respect to such Receivable; and

     (F) all proceeds of the foregoing.

     “Retained Receivable” shall mean a Receivable owed by any of the Obligors listed on
Schedule IV hereto.

     “Returned Goods” means all right, title and interest of any Originator in and to
returned, repossessed or foreclosed goods and/or merchandise the sale of which gave rise to a
Receivable.

     “Second Tier Agreement” means the Transfer and Administration Agreement, dated as of
December 8, 2008, by and among the SPV, the Originators, GP, as initial Servicer, YC SUSI Trust, as
a Conduit Investor and Uncommitted Investor, Bank of America, National Association, as the Agent, a
Managing Agent, an Administrator and a Committed Investor, and the various Investor Groups,
Managing Agents and Administrators from time to time parties thereto.

     “Senior Obligations” means all Aggregate Unpaids which may now or hereafter be owing
by the SPV to the Agent and the other Secured Parties.

“Solvent” means “Solvent” means, with respect to any Person at any time, a
condition under which:

          (i) the fair value and present fair saleable value of such Person’s total assets is, on the
date of determination, greater than such Person’s total liabilities (including contingent and
unliquidated liabilities) at such time;

          (ii) such Person is and shall continue to be able to pay all of its liabilities as such
liabilities mature; and

          (iii) such Person does not have unreasonably small capital with which to engage in
its current and in its anticipated business.

For purposes of this definition:

          (A) the amount of a Person’s contingent or unliquidated liabilities at any time shall be that
amount which, in light of all the facts and circumstances then existing, represents the amount
which can reasonably be expected to become an actual or matured liability;

          (B) the “fair value” of an asset shall be the amount which may be realized within a
reasonable time either through collection or sale of such asset at its regular market value;

          (C) the “regular market value” of an asset shall be the amount which a capable and diligent
business person could obtain for such asset from an interested buyer who is willing to purchase
such asset under ordinary selling conditions; and

3

 

     (D) the “present fair saleable value” of an asset means the amount which can be obtained if
such asset is sold with reasonable promptness in an arm’s length transaction in an existing and
not theoretical market.

     “SPV” shall have the meaning set forth in the Preamble hereto.

     “Subordinated Obligations” means all obligations which may now or hereafter be owing
by the SPV to each Originator and its successors or assigns (including the obligation to pay the
purchase price of any Receivable and interest thereon).

     “Subsequent Purchase” shall mean each Purchase other than the Initial Purchase.

     “Subsequent Purchase Date” shall mean the date of any Subsequent Purchase.

     SECTION 1.2 Other Terms. All terms defined directly or by incorporation herein shall
have the defined meanings when used in any certificate or other document delivered pursuant thereto
unless otherwise defined therein. For purposes of this Agreement and all such certificates and
other documents, unless the context otherwise requires: (a) accounting terms not otherwise defined
herein, and accounting terms partly defined herein to the extent not defined, shall have the
respective meanings given to them under, and shall be construed in accordance with, GAAP; (b) terms
used in Article 9 of the UCC in the State of New York, and not specifically defined herein, are
used herein as defined in such Article 9; (c) references to any amount as on deposit or outstanding
on any particular date means such amount at the close of business on such day; (d) the words
“hereof,” “herein” and “hereunder” and words of similar import refer to this Agreement (or the
certificate or other document in which they are used) as a whole and not to any particular
provision of this Agreement (or such certificate or document); (e) references to any Section,
Schedule or Exhibit are references to Sections, Schedules and Exhibits in or to this Agreement (or
the certificate or other document in which the reference is made) and references to any paragraph,
subsection, clause or other subdivision within any Section or definition refer to such paragraph,
subsection, clause or other subdivision of such Section or definition; (f) the term “including”
means “including without limitation”; (g) references to any law or regulation refer to that law or
regulation as amended from time to time and include any successor law or regulation; (h) references
to any agreement refer to that agreement as from time to time amended or supplemented or as the
terms of such agreement are waived or modified in accordance with its terms; (i) references to any
Person include that Person’s successors and assigns; (j) headings are for purposes of reference
only and shall not otherwise affect the meaning or interpretation of any provision hereof; and (k)
each reference to “Originator” herein refers severally to each of the Originators as to
itself and the Receivables and Related Assets owned by it from time to time. Notwithstanding the
foregoing, the term “Related Assets” as used herein excludes the SPV’s rights under this Agreement.

     SECTION 1.3 Computation of Time Periods. Unless otherwise stated in this Agreement,
in the computation of a period of time from a specified date to a later specified date, the word
“from” means “from and including” and the words “to” and “until” each means “to but excluding.”

4

 

ARTICLE II

SALE AND PURCHASE OF RECEIVABLES

     SECTION 2.1 Sale. (a) On the terms and subject to the conditions set forth herein,
each of the Originators hereby sells to the SPV on the Initial Purchase Date, and the SPV hereby
purchases from each of the Originators on the Initial Purchase Date, all of each Originator’s
right, title and interest, in, to and under each and every Receivable (other than any Retained
Receivable) existing at the opening of each Originator’s business on the Initial Purchase Date,
together with all other Related Assets and all proceeds thereof, whether such Related Assets or
proceeds relating thereto exist at such time or arise or are acquired thereafter. The foregoing
purchase and sale are herein sometimes collectively called the “Initial Purchase”.

     (b) On the terms and subject to the conditions set forth herein, each of the Originators
hereby sells to the SPV effective as of each Subsequent Purchase Date, and the SPV hereby purchases
from each of the Originators effective as of each Subsequent Purchase Date, each Receivable (other
than any Retained Receivable), together with all Related Assets and all proceeds thereof, whether
such Related Assets or proceeds relating thereto exist at such time or arise or are acquired
thereafter, arising after the Initial Purchase Date and through and including the Termination Date,
provided that notwithstanding the foregoing, no Originator shall have an obligation to sell to the
SPV any Receivable or Related Assets under this Agreement if immediately prior thereto SPV is not
solvent.

     SECTION 2.2 Intent of the Parties; Grant of Security Interest. (a) The Originators and
the SPV intend that the sale, assignment and transfer of the Conveyed Receivables and Related
Assets to the SPV hereunder shall be treated as a sale for all purposes, other than federal and
state income tax purposes. If notwithstanding the intent of the parties, the sale, assignment and
transfer of the Conveyed Receivables and Related Assets to the SPV is not treated as a sale for all
purposes, other than federal and state income tax purposes, then (i) this Agreement also is
intended by the parties to be, and hereby is, a security agreement within the meaning of the UCC,
and (ii) the sale, assignment and transfer of the Conveyed Receivables and Related Assets provided
for in this Agreement shall be treated as the grant of, and the Originators hereby grant to the
SPV, a security interest in the Conveyed Receivables and Related Assets to secure the payment and
performance of the Originators’ obligations to the SPV hereunder and under the other Transaction
Documents or as may be determined in connection therewith by applicable Law. The Originators and
the SPV shall, to the extent consistent with this Agreement, take such actions as may be necessary
to ensure that, if this Agreement were deemed to create a security interest in, and not to
constitute a sale of, the Conveyed Receivables and Related Assets, such security interest would be
deemed to be a perfected security interest in favor of the SPV under applicable Law and shall be
maintained as such throughout the term of this Agreement.

     (b) The Originators hereby grant to the SPV a security interest in the Blocked Accounts as
additional collateral to secure the payment and performance of the Originators’ obligations to the
SPV hereunder and under the other Transaction Documents or as may be determined in connection
therewith by applicable Law, and shall take such actions as may be necessary to ensure that such
security interest would be deemed to be a perfected security interest in favor of the SPV under
applicable Law and shall be maintained as such throughout the term of this Agreement.

5

 

     SECTION 2.3 No Recourse. Except as specifically provided in this Agreement, the
purchase and sale of the Conveyed Receivables and Related Assets under this Agreement shall be
without recourse to any Originator.

     SECTION 2.4 No Assumption of Obligations. The SPV shall not have any obligation or
liability with respect to any Conveyed Receivables, Contracts or other Related Assets, nor shall
the SPV have any obligation or liability to any Obligor or other customer or client of any
Originator (including without limitation any obligation to perform any of the obligations of any
Originator under any Conveyed Receivables, Contracts or other Related Assets).

     SECTION 2.5 UCC Filing. The Originators shall record and file, at their own expense,
any financing statements (and continuation statements with respect to such financing statements
when applicable) with respect to the Conveyed Receivables and the Related Assets then existing and
thereafter created (and, in any case, conveyed to the SPV hereunder) for the transfer and grant, as
applicable, of accounts, equipment, instruments, chattel paper and general intangibles (as defined
in the UCC) meeting the requirements of applicable state law in such manner and in such
jurisdictions as are reasonably requested by the SPV or any Managing Agent and necessary to perfect
the transfer and assignment of such Conveyed Receivables and Related Assets to the SPV (and to the
Agent (for the benefit of the Secured Parties) as assignee thereof). The Originators have delivered
or shall, within two (2) Business Days following the Purchase Date of any Conveyed Receivable,
deliver a file-stamped copy of such financing statements to the SPV and the Agent, and have taken,
or shall take, at the Originators’ own expense, all other steps as are necessary under applicable
Law (including the filing of any additional financing statements in connection with any Subsequent
Purchase) to perfect such transfers and assignments and has delivered to the SPV and the Agent, or
shall deliver, confirmation of such steps including any assignments, as are necessary or are
reasonably requested by the SPV or any Managing Agent. The Originators hereby authorize the
Servicer to file such financing statements or take such other action described in this Section
2.5 on behalf of the Originators, at the Originators’ expense.

     Each Originator further agrees, at its own expense, with respect to the Conveyed Receivables
and Related Assets conveyed by it to the SPV hereunder, on or prior to each Purchase Date, to
indicate on its computer files that such Conveyed Receivables and Related Assets have been
conveyed pursuant to this Agreement. Each Conveyed Receivable and Related Asset purchased
hereunder shall be included in and become part of the Records.

ARTICLE III

CONSIDERATION AND PAYMENT

     SECTION 3.1 Purchase Price.

     (a) The SPV hereby agrees to pay each Originator with respect to any Conveyed Receivables and
the Related Assets purchased by the SPV from such Originator on each Purchase Date a purchase
price (in each case, the “Asset Purchase Price”) equal to the fair market value of all
such Conveyed Receivables and Related Assets then being sold by such Originator to the SPV on such
Purchase Date.

6

 

     (b) The SPV shall pay each Originator the Asset Purchase Price with respect to each Conveyed
Receivable and Related Assets sold by such Originator to the SPV on the applicable Purchase Date by
transfer of funds, to the extent that the SPV has funds available for that purpose after (i)
satisfying the SPV’s current obligations under the Second Tier Agreement and (ii) taking into
account the proceeds that the SPV expects to receive from the Investors pursuant to the Second Tier
Agreement on such Purchase Date. To the extent that such funds are insufficient, then at the
election of such Originator, either (x) the remaining Conveyed Receivables and Related Assets shall
be deemed to have been transferred by such Originator to the SPV as a capital contribution, in
return for an increase in the value of the membership interests of the SPV held by such Originator
or (y) if the Minimum Capital Test is satisfied and the applicable Originator so elects, by notice
to the Agent, the remainder of the Asset Purchase Price shall be deferred (the “Deferred
Purchase Price”) and shall be paid by the SPV from time to time when the SPV has funds that are
not otherwise needed to satisfy the SPV’s obligations under the Second Tier Agreement (to the
extent then due and payable), to pay for new Conveyed Receivables and Related Assets or to pay
interest pursuant to subsection 3.1(d); provided, that the remainder of the Asset Purchase
Price shall in any event be payable not later than one (1) year after the Final Payout Date.

     (c) All Conveyed Receivables and Related Assets, if any, that have been conveyed hereunder by
way of capital contribution by an Originator shall be administered and otherwise treated hereunder
in the same way as Conveyed Receivables and Related Assets that have been conveyed by way of sale.

     (d) The SPV shall pay interest on the aggregate Deferred Purchase Price outstanding from time
to time under this Agreement at a variable rate per annum equal to the rate of interest publicly
announced from time to time by Bank of America as its “prime rate”. Such interest shall be
computed on the basis of the actual number of days elapsed and a 360 day year and shall be paid on
each Settlement Date, to the extent the SPV has available funds that are not needed to satisfy the
SPV’s obligations under the Second Tier Agreement (to the extent then due and payable) or to pay
for new Conveyed Receivables and Related Assets.

     SECTION 3.2 Subordination.

     (a) The payment and performance of the Subordinated Obligations is hereby subordinated to the
Senior Obligations and, except as set forth in this Section 3.2, the Originators will not
ask, demand, sue for, take or receive from the SPV, by setoff or in any other manner, the whole or
any part of any Subordinated Obligations, unless and until the Senior Obligations shall have been
fully paid and satisfied (the temporary reduction of outstanding Senior Obligations not being
deemed to constitute full payment or satisfaction thereof).

     (b) Notwithstanding clause (a) above and subject to clauses (c) and
(e) below, the SPV may pay the purchase price for the Conveyed Receivables and Related
Assets, interest thereon and other Restricted Payments as provided in Section 3.1 from
funds available in accordance with Section 2.14 of the Second Tier Agreement (all such
payments being herein called “Permitted Payments”).

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     (c) Prior to payment in full of the Senior Obligations, the Originators shall have no
right to sue for, or otherwise exercise any remedies with respect to, any Permitted Payment, or
otherwise take any action against the SPV or the SPV’s property with respect to any Permitted
Payment.

     (d) Should any payment or distribution be received by any Originator upon or with respect to
the Subordinated Obligations (other than Permitted Payments) prior to the satisfaction of all of
the Senior Obligations, such Originator shall receive and hold the same in trust, as trustee, for
the benefit of the holders of Senior Obligations, and shall forthwith deliver the same to the
Agent (in the form received, except where endorsement or assignment by the Originators is
necessary), for application to the Senior Obligations, whether or not then due.

     (e) In the event of any Event of Bankruptcy with respect to the SPV, (i) the Originators shall
promptly file a claim or claims, in the form required in such Event of Bankruptcy, for the full
outstanding amount of the Subordinated Obligations, and shall use commercially reasonable efforts
to cause such claim or claims to be approved and all payments or other distributions in respect
thereof to be made directly to the Agent (for the benefit of the holders of Senior Obligations)
until all Senior Obligations shall have been paid and performed in full and in cash, and (ii) the
Originators shall not be subrogated to the rights of any such holder to receive payments or
distributions from the SPV until one (1) year and one (1) day after payment in full and in cash of
all Senior Obligations.

     (f) If at any time any payment (in whole or in part) made with respect to any Senior
Obligation is rescinded or must be restored or returned (whether in connection with any Event of
Bankruptcy or otherwise), the subordination provisions contained in this Section 3.2 shall
continue to be effective or shall be reinstated, as the case may be, as though such payment had
not been made.

     (g) The subordination provisions contained in this Section 3.2 shall not be impaired
by amendment or modification to the Transaction Documents or any lack of diligence in the
enforcement, collection or protection of, or realization on, the Senior Obligations or any
security therefor.

ARTICLE IV

ADMINISTRATION AND COLLECTION

     SECTION 4.1 Servicing of Receivables. Notwithstanding the sale of
Conveyed
Receivables pursuant to this Agreement, GP, for so long as it acts as Servicer under the Second
Tier Agreement, shall continue to be responsible for the servicing, administration and collection
of the Conveyed Receivables, all on the terms set out in (and subject to any rights to terminate
the initial Servicer as servicer pursuant to) the Second Tier Agreement.

     SECTION 4.2 Deemed Collections.

     (a) If on any day the Unpaid Balance of an Eligible Receivable is reduced (but not
cancelled) as a result of any Dilution, the applicable Originator(s) shall be deemed to have
received on such day a Collection of such Receivable in the amount of such reduction. If on any

8

 

day an Eligible Receivable is canceled as a result of any Dilution, the applicable Originator(s)
shall be deemed to have received on such day a Collection of such Receivable in the amount of the
Unpaid Balance (as determined immediately prior to such Dilution) of such Eligible Receivable.

     (b) If on any day any representation or warranty of an Originator set forth in Section
5.1(d), or Sections 5.2(a) or (h) with respect to any Eligible Receivable
(whether on or after the date of transfer thereof to the SPV as contemplated hereunder) is
determined to be incorrect as of such time when such representation or warranty was made or
confirmed, such Originator shall be deemed to have received on such day a Collection of such
Eligible Receivable in an amount equal to its Unpaid Balance.

     (c) Not later than the second Business Day following any deemed Collection under Section
4.2(a) or (b), such Originator(s) shall pay to the SPV an amount equal to such deemed
Collection, and such amount shall be paid by the SPV as a Collection in accordance with Section
2.12 of the Second Tier Agreement.

     (d) To the extent that the SPV subsequently receives actual Collections with respect to any
deemed Collections with respect to any Receivable referenced in Section 4.2(a) or (b)
above, the SPV shall pay such Originator an amount equal to the amount so collected, such
amount to be payable in the same manner and priority as the Deferred Purchase Price.

     SECTION 4.3 Actions Evidencing Purchases. (a) On or prior to the Initial Purchase
Date, each Originator shall mark its master data processing records evidencing Receivables with a
legend, reasonably acceptable to the SPV, evidencing that the Conveyed Receivables have been sold
in accordance with this Agreement. In addition, each Originator agrees that from time to time, at
its expense, it shall promptly execute and deliver all further instruments and documents, and take
all further action, that the SPV or its assignee may reasonably request in order to perfect,
protect or more fully evidence the purchases hereunder, or to enable the SPV or its assigns to
exercise or enforce any of their respective rights with respect to the Conveyed Receivables and
Related Assets. Without limiting the generality of the foregoing, each Originator shall, upon the
request of the SPV or its designee; (i) execute and file such financing or continuation statements,
or amendments thereto or assignments thereof, and such other instruments or notices, as may be
necessary or appropriate and (ii) mark conspicuously each Contract evidencing each Retained
Receivable with a legend, acceptable to the SPV, evidencing that the related Retained Receivables
have not been sold in accordance with this Agreement.

     (b) Each Originator hereby authorizes the SPV or its designee to (i) file one or more
financing or continuation statements, and amendments thereto and assignments thereof, relative to
all or any of the Conveyed Receivables and Related Assets now existing or hereafter arising in the
name of such Originator and (ii) to the extent permitted by the Second Tier Agreement, notify
Obligors of the assignment of the Conveyed Receivables and Related Assets.

     (c) Without limiting the generality of Section 4.3(a), each Originator shall, not
earlier than six (6) months and not later than three (3) months prior to the fifth (5th)
anniversary of the date of filing of the financing statements filed in connection with the Closing
Date or any other financing statement filed pursuant to this Agreement, if the Final Payout
Date shall not have

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occurred: (i) execute and deliver and file or cause to be filed appropriate continuation
statements; and (ii) deliver or cause to be delivered to the Agent an opinion of counsel for such
Originator in form and substance and delivered by counsel reasonably satisfactory to the SPV,
confirming and updating the opinion delivered in connection with the Initial Purchase Date
relating to the validity, perfection and priority of the SPV’s interests in the Conveyed
Receivables.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     SECTION 5.1 Mutual Representations and Warranties. Each Originator and the SPV
represents and warrants to the other, as to itself only, that, on the Initial Purchase Date and on
each Subsequent Purchase Date:

     (a) Corporate Existence and Power. It (i) is validly existing and in good standing
under the laws of its jurisdiction of formation, (ii) was duly organized, (iii) has all corporate
or limited liability company power and all licenses, authorizations, consents and approvals of all
Official Bodies required to carry on its business in each jurisdiction in which its business is
now and proposed to be conducted (except where the failure to have any such licenses,
authorizations, consents and approvals would not individually or in the aggregate reasonably be
expected to have a Material Adverse Effect) and (iv) is duly qualified to do business and is in
good standing in every other jurisdiction in which the nature of its business requires it to be so
qualified, except where the failure to be so qualified or in good standing would not reasonably be
expected to have a Material Adverse Effect.

     (b) Authorization; No Contravention. The execution, delivery and performance by it of
this Agreement, the Second Tier Agreement and the other Transaction Documents to which it is a
party (i) are within its corporate or limited liability company powers, (ii) have been duly
authorized by all necessary corporate or limited liability company action, (iii) require no action
by or in respect of, or filing with, any Official Body or official thereof (except as contemplated
by this Agreement, (iv) do not contravene or constitute a default under (A) its organizational
documents, (B) any Law applicable to it, (C) any provision of any indenture, agreement or other
instrument evidencing material Indebtedness to which it is a party or by which any of its property
may be bound or (D) any order, writ, judgment, award, injunction, decree or other instrument
binding on or affecting it or its property except, with respect to clauses (B),
(C) and (D) above, to the extent the contravention or default under such Law,
contractual restriction, order, writ, judgment, award, injunction, decree or other instrument
would not reasonably be expected to have a Material Adverse Effect, or (v) result in the creation
or imposition of any Adverse Claim upon or with respect to its property (except as contemplated
hereby).

     (c) Binding Effect. Each of this Agreement and the other Transaction Documents to
which it is a party have been duly executed and delivered and constitute its legal, valid and
binding obligation, enforceable against it in accordance with their terms, subject to applicable
bankruptcy, insolvency, moratorium or other similar laws affecting the rights of creditors
generally (whether at law or equity).

     (d) Preference; Voidability. The SPV shall have given reasonably equivalent value to
each Originator in consideration for the transfer to the SPV of the Conveyed Receivables and

10

 

Related Assets from such Originator, and each such transfer shall not have been made for or on
account of an antecedent debt owed by any Originator to the SPV and no such transfer is or may be
voidable under any section of the Bankruptcy Code.

     (e) Compliance with Applicable Laws; Licenses, etc.

     (A) It is in compliance in all material respects with the requirements of all
applicable laws, rules, regulations, and orders of all Official Bodies (including, without
limitation, the Federal Consumer Credit Protection Act, as amended, Regulation Z of the
Board of Governors of the Federal Reserve System, as amended, laws, rules and regulations
relating to usury, truth in lending, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices and privacy and all other consumer laws,
rules and regulations applicable to the Conveyed Receivables), a breach of any of which,
individually or in the aggregate, would be reasonably likely to have a Material Adverse
Effect.

     (B) It has not failed to obtain any licenses, permits, franchises or other
governmental authorizations necessary to the ownership of its properties or to the conduct
of its business (including, without limitation, any registration requirements or other
actions as may be necessary in any applicable jurisdiction in connection with the ownership
of the Contracts or the Conveyed Receivables and other related assets), which violation or
failure to obtain would be reasonably likely to have a Material Adverse Effect.

     SECTION 5.2 Originators’ Additional Representations and Warranties.
Each
Originator represents and warrants to the SPV, as to itself only, that, on the Initial Purchase
Date and on each Subsequent Purchase Date:

     (a) Perfection; Good Title. Immediately preceding each Purchase hereunder, each
Originator is the owner of all of the Conveyed Receivables and all Related Assets to be sold by it
pursuant to such Purchase, free and clear of all Adverse Claims (other than any Adverse Claim
arising hereunder or under the Second Tier Agreement). The representations set forth on
Schedule III are true and correct as applied to each Originator. This Agreement constitutes
a valid sale, transfer and assignment of the Conveyed Receivables and Related Assets to the SPV
and, upon each Purchase, the SPV shall acquire a valid and enforceable perfected first priority
ownership interest or a first priority perfected security interest in each Conveyed Receivable and
all of the Related Assets that exist on the date of such Purchase, with respect thereto, free and
clear of any Adverse Claim (other than pursuant to this Agreement or the Second Tier Agreement).

     (b) Accuracy of Information. All factual information (taken as a whole) heretofore or
contemporaneously furnished by or on behalf of the SPV, the Servicer, the Originator or Greif,
Inc. or any of their Subsidiaries or Affiliates in writing to any Investor, Managing Agent or the
Agent (including, without limitation, all information contained in the Transaction Documents) for
purposes of or in connection with this Agreement or any transaction contemplated herein is, and
all other such factual information (taken as a whole) hereafter furnished by or on behalf of the
SPV, the Servicer, the Originator or Greif, Inc. or any of their Subsidiaries or Affiliates in

11

 

writing to any Investor, Managing Agent or the Agent for purposes of or in connection with this
Agreement or any transaction contemplated herein, when taken as a whole, do not contain as of the
date furnished any untrue statement of material fact or omit to state a material fact necessary in
order to make the statements contained herein or therein, in light of the circumstances under which
they were made, not misleading. The SPV, the Servicer, the Originator and Greif, Inc. and any of
their Subsidiaries or Affiliates have disclosed to each Investor, each Managing Agent and the Agent
(a) all agreements, instruments and corporate or other restrictions to which SPV, the Servicer, the
Originator or Greif, Inc. or any of their Subsidiaries or Affiliates is subject, and (b) all other
matters known to any of them, that individually or in the aggregate with respect to
(a) and (b) above, would reasonably be expected to result in a Material Adverse Effect.

     (c) Tax Status. Each of the Originators has (i) timely filed all tax returns
(federal,
state and local) required to be filed by it and (ii) paid or made adequate provision for the
payment of all taxes, assessments and other material governmental charges, other than those
taxes, assessments, or charges that are being contested in good faith through appropriate
proceedings and for which adequate reserves in accordance with GAAP have been provided and
(b) to the extent that the failure to do so would not reasonably be expected to result in a
Material
Adverse Effect.

     (d) Action, Suits. It is not in violation of any order of any Official Body. Except
as set forth in Schedule 4.1(g) to the Second Tier Agreement, there are no actions, suits or
proceedings pending or, to the best knowledge of the SPV, threatened (i) against the SPV, the
Servicer, any Originator or Greif, Inc. or any of their Subsidiaries or Affiliates challenging the
validity or enforceability of any material provision of any Transaction Document, or (ii) that
would reasonably be expected to have a Material Adverse Effect.

     (e) Use of Proceeds. No proceeds of any Purchase hereunder shall be used by an
Originator (i) to acquire any security in any transaction which is subject to Section 13 or 14 of
the Securities Exchange Act of 1934, (ii) to acquire any equity security of a class which is
registered pursuant to Section 12 of such Act or (iii) for any other purpose that violates
applicable Law, including Regulation U of the Federal Reserve Board.

     (f) Principal Place of Business; Chief Executive Office; Location of Records. The
principal place of business, chief executive office and the offices where each Originator keeps
all its Records, are located at the address(es) described on Schedule I or such other
locations notified to the SPV in accordance with Section 6.3(g) in jurisdictions where all
action required by Section 4.3 has been taken and completed.

     (g) Subsidiaries; Tradenames, Etc. As of the date hereof, no Originator has, within
the last five (5) years, operated under any tradename other than its legal name, and, within the
last five (5) years, no Originator has changed its name, merged with or into or consolidated with
any other Person or been the subject of any proceeding under the Bankruptcy Code. Schedule I
lists the correct Federal Employer Identification Number of each Originator.

     (h) Nature of Receivables. Each Conveyed Receivable is an Eligible Receivable. On
the Purchase Date of any Conveyed Receivable by the SPV hereunder, no Originator has any knowledge
of any fact (including any defaults by the Obligor thereunder on any other Conveyed

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Receivable represented by it to be an Eligible Receivable) that would cause it or should have
caused it to expect any payments on such Receivable not to be paid in full when due; provided,
however, that any such Receivables may be subject to historical delinquency or default issues to
the same extent as other previous receivables of such Originator.

     (i) Credit and Collection Policy. Each Originator has at all times
complied in all
material respects with the Credit and Collection Policy with regard to each Eligible Receivable.

     (j) Material Adverse Effect. On and since the Closing Date
there has been no
Material Adverse Effect.

     (k) No Termination Event. No event has occurred and is continuing and no condition
exists which constitutes a Termination Event or a Potential Termination Event as applied to any
Originator.

     (l) Not an Investment Company or Holding Company. No Originator
is, or is
controlled by, an “investment company” within the meaning of the Investment Company Act of 1940, or
such Originator is exempt from all provisions of such act.

     (m) ERISA. Except as, in the aggregate, would not reasonably be expected to have a
Material Adverse Effect, no steps have been taken by any Person to terminate any Pension Plan the
assets of which are not sufficient to satisfy all of any Originator’s benefit liabilities (as
determined under Title IV of ERISA), no contribution failure has occurred or is expected to occur
with respect to any Pension Plan sufficient to give rise to a lien under Section 302(f) of ERISA,
and each Pension Plan has been administered in all material respects in compliance with its terms
and applicable provision of ERISA and the Code.

     (n) Blocked Accounts. The names and addresses of all the Blocked Account Banks,
together with the account numbers of the Blocked Accounts at such Blocked Account Banks, are
specified in Schedule II (or at such other Blocked Account Banks and/or with such other
Blocked Accounts as have been notified to the SPV and each Managing Agent and for which Blocked
Account Agreements have been executed in accordance with Section 6.3(g) and delivered to
the Servicer and the Agent). All Blocked Accounts are subject to Blocked Account Agreements. All
Obligors have been instructed to make payment to a Blocked Account; provided that if cash or cash
proceeds other than Collections on Receivables are deposited into a Blocked Account (the
“Excluded Amounts”), such Excluded Amounts shall not comprise a part of the Related Assets,
and the SPV shall have no right, title or interest in any such Excluded Amounts.

     (o) Bulk Sales. No transaction contemplated hereby or by the
Second Tier
Agreement requires compliance with any bulk sales act or similar law.

     (p) Nonconsolidation. Each Originator shall take all actions
required to maintain
SPV’s status as a separate legal entity, including (i) not holding the SPV out to third parties as
other than an entity with assets and liabilities distinct from such Originator and such
Originator’s other Subsidiaries; (ii) not holding itself out to be responsible for any Indebtedness
of the SPV or, other than by reason of owning membership interests of the SPV, for any decisions or
actions

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relating to the SPV; (iii) having separate financial statements for the SPV, which may be
consolidated under the financial statements of Greif, Inc.; (iv) taking such other actions as are
necessary on its part to ensure that all corporate and limited liability company procedures
required by its and the SPV’s respective organizational documents are duly and validly taken; (v)
keeping correct and complete records and books of account and corporate minutes; and (vi) not
acting in any manner that could foreseeably mislead others with respect to the SPV’s separate
identity. In addition to the foregoing, each Originator shall take the following actions:

     (A) maintain company records and books of account separate from those of the SPV;

     (B) continuously maintain as official records the resolutions, agreements and other
instruments underlying the transactions described in this Agreement;

     (C) maintain an arm’s-length relationship with the SPV and shall not hold itself out
as being liable for any Indebtedness of the SPV;

     (D) keep its assets and its liabilities wholly separate from those of the SPV;

     (E) not mislead third parties by conducting or appearing to conduct business
on behalf of the SPV or expressly or impliedly representing or suggesting that such
Originator is liable or responsible for any Indebtedness of the SPV or that the assets
of
such Originator are available to pay the creditors of the SPV;

     (F) at all times have stationery and other business forms and a mailing address
and telephone number separate from those of the SPV;

     (G) at all times limit its transactions with the SPV only to those expressly
permitted hereunder or under any other Transaction Document; and

     (H) comply in all material respects with (and cause to be true and correct in all
material respects) each of the facts and assumptions relating to it contained in the
opinion(s) of Vorys, Sater, Seymour and Pease LLP, delivered pursuant to Section 5.1(l)
of the Second Tier Agreement.

     SECTION 5.3 Notice of Breach. Upon discovery by an Originator of a breach of any
of the representations and warranties made by it in Sections 5.1 and 5.2, the
Originator shall give prompt written notice to the SPV within three (3) Business Days of such
discovery.

ARTICLE VI

COVENANTS

     SECTION 6.1 Mutual Covenants. At all times from the date hereof
to the Final
Payout Date, each Originator and the SPV shall:

     (a) Compliance with Laws, Etc. Comply in all material respects with all
Laws to
which it or its respective properties may be subject, and preserve and maintain its corporate or

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limited liability company existence, rights, franchises, qualifications and privileges, except to
the extent any non-compliance would not reasonably be expected to have a Material Adverse Effect.

     (b) Reporting Requirements. Provide periodic financial statements, information and
reports as reasonably requested by the other party. All such statements, information and reports
shall be true and accurate in all material respects.

     (c) Separate Business; Nonconsolidation. Not take any action that is inconsistent
with the terms of Sections 6.1(k)(i) or 6.1(l) of the Second Tier Agreement or Section
5.2(p) hereof.

     (d) Solvency of SPV. In the case of the SPV, ensure that (i) the fair value of the
assets of the SPV, at a fair valuation, will, at all times prior to the Final Payout Date, exceed
its debts and liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable
value of the property of the SPV, at all times prior to the Final Payout Date, will be greater than
the amount that will be required to pay the probable liability of its debts and other liabilities,
subordinated, contingent or otherwise, as such debts and other liabilities become absolute and
matured; (iii) the SPV will, at all times prior to the Final Payout Date, be able to pay its debts
and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured; and (iv) the SPV will not, at any time prior to the Final Payout Date, have
unreasonably small capital with which to conduct the business in which it is engaged as such
business is now conducted and is proposed to be conducted.

     SECTION 6.2 Affirmative Covenants of the Originator. At all times from the date
hereof to the Final Payout Date:

     (a) Conduct of Business; Ownership. Each Originator shall continue to engage in
business of the same general type as now conducted by them (including businesses reasonably related
or incidental thereto) and do all things necessary to remain duly organized, validly existing and
in good standing in its jurisdiction of formation and maintain all requisite authority to conduct
its business in each jurisdiction in which its business is conducted, except where the failure to
do so would not reasonably be expected to have a Material Adverse Effect. The SPV shall at all
times be a wholly-owned Subsidiary of the Originators, each of which at all times must be a direct
or indirect Subsidiary of Greif, Inc.

     (b) Furnishing of Information and Inspection of Records. Each Originator shall furnish
to the SPV or any Managing Agent from time to time such information with respect to the Related
Assets as the SPV or such Managing Agent may reasonably request, including listings identifying the
Obligor and the Unpaid Balance for each Receivable. Each Originator shall, at any time and from
time to time during regular business hours upon reasonable notice (which shall be at least 2
Business Days), as requested by the SPV or any Managing Agent, permit the SPV or such Managing
Agent, or their respective agents or representatives, (i) to examine and make copies of and take
abstracts from all books, records and documents (including computer tapes and disks) relating to
the Conveyed Receivables or other Related Assets, including the related Contracts and (ii) to visit
the offices and properties of such Originator for the purpose of examining such materials described
in clause (i), and to discuss matters relating to the Conveyed Receivables, the Related
Assets or such Originator’s performance hereunder, under the Contracts and under the other
Transaction Documents to which such Person is a party

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with any of the officers, directors, employees or independent public accountants of such Originator
having knowledge of such matters (but only in the presence of a Responsible Officer of the SPV);
provided that unless a Termination Event or Potential Termination Event shall have occurred and be
continuing, the Originator shall not be required to reimburse the reasonable expenses of more than
one (1) such visit per calendar year.

     (c) Keeping of Records and Books of Account. Each Originator shall maintain and
implement administrative and operating procedures (including an ability to recreate records
evidencing Conveyed Receivables and related Contracts in the event of the destruction of the
originals thereof), and keep and maintain all documents, books, computer tapes, disks, records and
other information reasonably necessary or advisable for the collection of all Conveyed Receivables
(including records adequate to permit the daily identification of each new Conveyed Receivable and
all Collections of and adjustments to each existing Conveyed Receivable). Each Originator shall
give the SPV and the Agent prompt notice of any material change in its administrative and operating
procedures referred to in the previous sentence (and the Agent will promptly forward such notice to
each Managing Agent).

     (d) Performance and Compliance with Conveyed Receivables, Contracts and Credit and
Collection Policy. Each Originator shall (i) at its own expense, timely and fully perform and
comply with all material provisions, covenants and other promises required to be observed by it
under the Contracts related to the Conveyed Receivables in accordance with the Credit and
Collection Policy; and (ii) timely and fully comply in all material respects with the Credit and
Collection Policy in regard to each Conveyed Receivable and the related Contract.

     (e) Notice of Agent’s Interest. In the event that any Originator shall sell or
otherwise transfer any interest in accounts receivable or any other financial assets (other than as
contemplated by the Transaction Documents), any computer tapes or files or other documents or
instruments provided by such Originator in connection with any such sale or transfer shall disclose
the SPV’s ownership of the Conveyed Receivables and the Agent’s interest therein.

     (f) Collections. The Originators have instructed, or shall instruct, all Obligors to
cause all Collections to be deposited directly to a Blocked Account or to post office boxes to
which only Blocked Account Banks have access and shall instruct the Blocked Account Banks to cause
all items and amounts relating to such Collections received in such post office boxes to be removed
and deposited into a Blocked Account on a daily basis.

     (g) Collections Received. Each Originator shall hold in trust, and deposit, promptly,
but in any event not later than two (2) Business Days following its receipt thereof, to a Blocked
Account all Collections received by it from time to time.

     (h) Blocked Accounts. Each Blocked Account shall at all times
be subject to a
Blocked Account Agreement.

     (i) Sale Treatment. No Originator shall treat the transactions contemplated by
this
Agreement in any manner other than as a sale or contribution (as applicable) of Conveyed
Receivables by such Originator to the SPV, except to the extent that such transactions are not
recognized on account of consolidated financial reporting in accordance with
GAAP or are

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disregarded for tax purposes. In addition, each Originator shall disclose (in a footnote or
otherwise) in all of its financial statements (including any such financial statements consolidated
with any other Person’s financial statements) the existence and nature of the transaction
contemplated hereby and the interest of the SPV in the Conveyed Receivables and Related Assets.

     (j) Ownership Interest, Etc. Each Originator shall, at its
expense, take all action
necessary or desirable to establish and maintain a valid and enforceable ownership or first
priority perfected security interest in the Conveyed Receivables, the associated Related Assets and
proceeds with respect thereto, in each case free and clear of any Adverse Claim, in favor of the
SPV, including taking such action to perfect, protect or more fully evidence the interest of the
SPV and the Agent, as the Agent may request.

     (k) Perfection Covenants. Each of the Originators shall comply
with each of the
covenants set forth in Schedule III to this Agreement which are incorporated herein by
reference.

     (l) Information for Servicer Report. Each Originator shall promptly
deliver any
information, documents, records or reports with respect to the Conveyed Receivables that the SPV
shall require to complete the Servicer Report pursuant to Section 2.8 of the Second Tier Agreement.

     SECTION 6.3 Negative Covenants of the Originator. At all times
from the date
hereof to the Final Payout Date, unless the Majority Investors shall otherwise consent in writing:

     (a) No Sales, Liens, Etc. Except as otherwise provided herein and in the Second Tier
Agreement, no Originator shall sell, assign (by operation of law or otherwise) or otherwise dispose
of, or create or suffer to exist any Adverse Claim upon (or the filing of any financing statement)
or with respect to (A) any of the Conveyed Receivables or Related Assets, or (B) any proceeds of
inventory or goods, the sale of which may give rise to a Receivable, or assign any right to receive
income in respect thereof.

     (b) No Extension or Amendment of Receivables. Except as otherwise permitted in
Section 7.2 of the Second Tier Agreement, no Originator shall extend, amend or otherwise
modify the terms of any Conveyed Receivable, or amend, modify or waive any term or condition of any
Contract related thereto.

     (c) No Change in Business or Credit and Collection Policy. No Originator shall make
any change in the character of its business or in the Credit and Collection Policy, which change
would, in either case, materially impair the collectability of any Eligible Receivable or
reasonably be expected to have a Material Adverse Effect.

     (d) No Mergers, Etc. No Originator shall consolidate or merge with or into, or sell,
lease or transfer all or substantially all of its assets to, any other Person, unless (i) no
Termination Event would be expected to occur as a result of such transaction and (ii) such Person
executes and delivers to the Agent and each Managing Agent an agreement by which such Person
assumes the obligations of the applicable Originator hereunder and under the other Transaction
Documents to which it is a party, or confirms that such obligations remain

17

 

enforceable against it, together with such certificates and opinions of counsel as the Agent
or any Managing Agent may reasonably request.

     (e) Change in Payment Instructions to Obligors. No Originator shall add or terminate
any bank as a Blocked Account Bank or any account as a Blocked Account to or from those listed in
Schedule II or make any change in its instructions to Obligors regarding payments to be
made to any Blocked Account, unless (i) such instructions are to deposit such payments to another
existing Blocked Account or to the Collection Account or (ii) the SPV and the Agent shall have
received written notice of such addition, termination or change at least thirty (30) days prior
thereto and the SPV and the Agent shall have received a Blocked Account Agreement executed by each
new Blocked Account Bank or an existing Blocked Account Bank with respect to each new Blocked
Account reasonably acceptable to the SPV and the Agent, as applicable.

     (f) Deposits to Blocked Accounts. No Originator shall deposit or otherwise credit, or
cause or permit to be so deposited or credited, any Excluded Amounts to the Collection Account. If
Excluded Amounts (including any inadvertent deposits) are deposited into any Blocked Account, the
applicable Originator(s) will promptly identify such Excluded Amounts for segregation and removal
from such Blocked Account. Other than as permitted in the foregoing sentence, no Originator will,
or will permit any other Person to, commingle Collections or other funds to which the SPV or any
other Secured Party is entitled with any other Excluded Amounts.

     (g) Change of Name, Etc. No Originator shall change its name, identity or structure
(including pursuant to a merger) or the location of its jurisdiction or formation or any other
change which could render any UCC financing statement filed in connection with this Agreement or
any other Transaction Document to become “seriously misleading” under the UCC, unless at least
thirty (30) days prior to the effective date of any such change the Originator delivers to the
SPV, the Agent and each Managing Agent (i) such documents, instruments or agreements, executed by
the applicable Originator(s) as are necessary to reflect such change and to continue the
perfection of the SPV’s and the Agent’s ownership interests or security interests in the Conveyed
Receivables and Related Assets and (ii) if necessary, new or revised Blocked Account Agreements
executed by the Blocked Account Banks which reflect such change and enable the Agent to continue
to exercise its rights contained in Section 7.3 of the Second Tier Agreement.

     (h) Amendment of this Agreement. None of the Originators shall amend, modify or
supplement this Agreement or waive any provision hereof, in each case except with the prior
written consent of the Majority Investors; nor shall any Originator take any other action under
this Agreement that would reasonably be expected to result in a material adverse effect on the
Agent, any Managing Agent or any Investor.

ARTICLE VII

TERM AND TERMINATION

     SECTION 7.1 Term. This Agreement shall commence as of the Closing Date and
shall continue in full force and effect until the earliest of (a) the date after the Final Payout
Date designated by the SPV or the Originators as the termination date at any time following sixty
(60) day’s written notice to the other (with a copy thereof to the Agent) or (b) the occurrence of
the

18

 

Termination Date (any such date being a “Purchase Termination Date”); provided that the
occurrence of the Purchase Termination Date pursuant to this Section 7.1 shall not
discharge any Person from any obligations incurred prior to the Purchase Termination Date,
including any obligations to make any payments with respect to the interest of the SPV in any
Receivable sold prior to the Purchase Termination Date; and provided further that (i) the rights
and remedies of the SPV with respect to any representation and warranty made or deemed to be made
by any Originator pursuant to this Agreement, (ii) the indemnification and payment provisions of
Article VIII, and (iii) the agreements set forth in Sections 2.2, 2.3,
2.4 and 9.9 shall survive any termination of this Agreement.

     SECTION 7.2 Effect of Purchase Termination Date. Following the occurrence of the
Purchase Termination Date pursuant to Section 7.1, no Originator shall sell to, and the
SPV shall not purchase from any Originator, any Receivables or Related Assets. No termination or
rejection or failure to assume the executory obligations of this Agreement in any Event of
Bankruptcy with respect to any Originator or the SPV shall be deemed to impair or affect the
obligations pertaining to any executed sale or executed obligations, including pre-termination
breaches of representations and warranties by any Originator or the SPV. Without limiting the
foregoing, prior to the Purchase Termination Date, the failure of any Originator to deliver
computer records of any Conveyed Receivables or any reports regarding any Conveyed Receivables
shall not render such transfer or obligation executory, nor shall the continued duties of the
parties pursuant to Article IV or Section 8.1 render an executed sale executory.

ARTICLE VIII

INDEMNIFICATION

     SECTION 8.1 Indemnities by the Originator. Without limiting any
other rights which the Originator Indemnified Parties may have hereunder or under applicable
Law, each Originator hereby agrees, jointly and severally, to indemnify the SPV and its
successors, transferees and assigns and all officers, directors, shareholders, controlling
persons, employees, counsel and other agents of any of the foregoing (collectively,
“Originator Indemnified Parties”) from and against any and all damages, losses, claims,
liabilities, costs and expenses, including reasonable attorneys’ fees (which attorneys may be
employees of any Originator Indemnified Party) and disbursements (all of the foregoing being
collectively referred to as “Originator Indemnified Amounts”) awarded against or incurred
by any of them in any action or proceeding between any Originator and any of the Originator
Indemnified Parties or between any of the Originator Indemnified Parties and any third party, in
each case arising out of or as a result of this Agreement, the other Transaction Documents, the
ownership or maintenance, either directly or indirectly, by the SPV or any other Originator
Indemnified Party of any interest in any Conveyed Receivable and Related Assets or any of the
other transactions contemplated hereby or thereby, excluding, however, (i) Originator Indemnified
Amounts to the extent resulting from gross negligence or willful misconduct on the part of such
Originator Indemnified Party or (ii) recourse for uncollectible Receivables, or (iii) any Excluded
Taxes. Without limiting the generality of the foregoing, each Originator shall indemnify each
Originator Indemnified Party for Originator Indemnified Amounts relating to or resulting from:

     (a) any representation or warranty made by any Originator or any officers of
any Originator under or in connection with this Agreement, any of the other Transaction Documents,

19

 

any Servicer Report or any other information or report delivered by any Originator pursuant
hereto, or pursuant to any of the other Transaction Documents which shall have been incomplete,
false or incorrect in any respect when made or deemed made;

     (b) the failure by any Originator to comply with any applicable Law with respect to any
Receivable or the related Contract, or the nonconformity of any Conveyed Receivable or the related
Contract with any such applicable Law;

     (c) the failure to vest and maintain vested in the SPV a first priority, perfected ownership
interest in the Conveyed Receivables and Related Assets, free and clear of any Adverse Claim;

     (d) the failure by any Originator, following a request from the Agent, to file, or any delay
in filing, financing statements, continuation statements, or other similar instruments or documents
under the UCC of any applicable jurisdiction or other applicable laws with respect to any of the
Conveyed Receivables and Related Assets;

     (e) any dispute, claim, offset or defense (other than discharge in bankruptcy) or as a result
of the uncollectibility of any Receivable) of the Obligor to the payment of any Conveyed
Receivable (including a defense based on such Receivable or the related Contract not being the
legal, valid and binding obligation of such Obligor enforceable against it in accordance with its
terms), or any other claim resulting from the sale of merchandise or services related to such
Receivable or the furnishing or failure to furnish such merchandise or services, or from any
breach or alleged breach of any provision of the Conveyed Receivables or the related Contracts
restricting assignment of any Conveyed Receivables;

     (f) any failure of any Originator to perform its duties or obligations in accordance with the
provisions hereof;

     (g) any products liability claim or personal injury or property damage suit or other similar
or related claim or action of whatever sort arising out of or in connection with merchandise or
services which are the subject of any Conveyed Receivable;

     (h) the transfer to the SPV of an interest in any Receivable other than an Eligible
Receivable;

     (i) the failure by any Originator to comply with any term, provision or
covenant contained in this Agreement or any of the other Transaction Documents to which it is a
party or to perform any of its respective duties or obligations under the Conveyed Receivables or
related Contracts;

     (j) the failure of any Originator to pay when due any sales, excise
or personal property taxes payable in connection with any of the Conveyed Receivables;

     (k) any repayment by any Originator Indemnified Party of any amount previously
distributed in reduction of Net Investment which such Originator Indemnified Party believes in
good faith is required to be made;

20

 

     (l) the commingling by any Originator of Collections at any time with any
other funds;

     (m) any investigation, litigation or proceeding related to this Agreement, any of the other
Transaction Documents, the use of proceeds of purchases by any Originator, the ownership of the
Asset Interest, or any Conveyed Receivable or Related Asset;

     (n) failure of any Blocked Account Bank to remit any amounts held in the Blocked Accounts or
any related lock-boxes pursuant to the instructions of the Servicer, the SPV, any Originator or
the Agent (to the extent such Person is entitled to give such instructions in accordance with the
terms hereof, of the Second Tier Agreement and of any applicable Blocked Account Agreement)
whether by reason of the exercise of set-off rights or otherwise;

     (o) any inability to obtain any judgment in or utilize the court or other adjudication system
of, any state in which an Obligor may be located as a result of the failure of any Originator to
qualify to do business or file any notice of business activity report or any similar report;

     (p) any attempt by any Person to void, rescind or set-aside any
transfer by any Originator to the SPV of any Conveyed Receivable or Related Assets under
statutory provisions or common law or equitable action, including any provision of the Bankruptcy
Code or other insolvency law;

     (q) any action taken by any Originator or the Servicer (if the Servicer is an Affiliate or
designee of an Originator) in the enforcement or collection of any Conveyed Receivable (unless
such action was directed by the Agent or the Investors in bad faith or with gross negligence or
willful misconduct);

     (r)
the use of the proceeds of any Purchase hereunder; or

     (s) any and all amounts paid or payable by the SPV pursuant to Sections 9.3, 9.4 or 9.5 of
the Second Tier Agreement.

ARTICLE IX

MISCELLANEOUS PROVISIONS

     SECTION 9.1 Waivers; Amendments. (a) No failure or delay on the part of the SPV in
exercising any power, right or remedy under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power, right or remedy preclude any other further
exercise thereof or the exercise of any other power, right or remedy. The rights and remedies
herein provided shall be cumulative and nonexclusive of any rights or remedies provided by law.

     (b) Any provision of this Agreement may be amended or waived if, but only if, such amendment
or waiver is in writing and is signed by each of the parties hereto and consented to in writing by
the Agent.

21

 

     SECTION 9.2 Notices. All communications and notices provided for hereunder shall be
provided in the manner described in Section 11.3 of the Second Tier Agreement.

     SECTION 9.3 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO THE CONFLICTS OF LAW
PRINCIPLES THEREOF OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     SECTION 9.4 Integration. This
Agreement contains the final and
complete integration of all prior expressions by the parties hereto with respect to the subject
matter hereof and shall constitute the entire Agreement among the parties hereto with respect to
the subject matter hereof superseding all prior oral or written understandings.

     SECTION 9.5 Severability of Provisions. If any one or more of the provisions of
this Agreement shall for any reason whatsoever be held invalid, then such provisions shall be
deemed severable from the remaining provisions of this Agreement and shall in no way affect the
validity or enforceability of such other provisions.

     SECTION 9.6 Counterparts; Facsimile Delivery. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which when taken together shall
constitute one and the same Agreement. Delivery by facsimile of an executed signature page of this
Agreement shall be effective as delivery of an executed counterpart hereof.

     SECTION 9.7 Successors and Assigns; Binding Effect. This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns and shall also inure to the benefit of the parties to the Second Tier
Agreement and their respective successors and assigns; provided that none of the Originators nor
the SPV may assign any of its rights or delegate any of its duties hereunder or under any of the
other Transaction Documents to which it is a party without the prior written consent of each
Managing Agent. Each Originator acknowledges that the SPV’s rights under this Agreement may be
assigned to the Agent, on behalf of the Investors, under the Second Tier Agreement and consents to
such assignment and to the exercise of those rights directly by the SPV, to the extent permitted
by the Second Tier Agreement.

     SECTION 9.8 Costs, Expenses and Taxes. In addition to its
obligations under Section 8.1, each Originator agrees to pay on demand (a) all costs and
expenses (including attorneys’, accountants’ and other third parties’ fees and expenses, any
filing fees and expenses incurred by officers or employees of the SPV or its assigns) incurred by
the SPV and its assigns in connection with the enforcement of, or any actual or claimed breach of,
this Agreement, including the reasonable attorneys’ fees and expenses incurred in connection with
the foregoing or in advising such Persons as to their respective rights and remedies under this
Agreement in connection with any of the foregoing and (b) all stamp and other taxes and fees
payable or determined to be payable in connection with the execution, delivery, filing and
recording of this Agreement, other than taxes based upon income.

22

 

     SECTION 9.9 No Proceedings; Limited Recourse. Each Originator covenants
and agrees, for the benefit of the parties to the Second Tier Agreement, that it shall not
institute against SPV, or join any other Person in instituting against SPV, any proceeding of a
type referred to in the definition of Event of Bankruptcy until one (1) year and one (1) day after
the Final Payment Date. In addition, all amounts payable by the SPV to an Originator pursuant to
this Agreement shall be payable solely from funds available for that purpose pursuant to Section
2.14 of the Second Tier Agreement.

     SECTION 9.10 Further Assurances. The SPV and each Originator agree to do
and perform, from time to time, any and all acts and to execute any and all further instruments
required or reasonably requested by the other party more fully to effect the purposes of this
Agreement.

[SIGNATURES FOLLOW]

23

 

     IN WITNESS WHEREOF, the SPV and each Originator have caused this Sale Agreement to be
duly executed by their respective officers as of the day and year first above written.

	 	 	 	 	 

	 	 	GREIF PACKAGING LLC,
	 	 	as an Originator
	 
	 	 	 	 
	 

	 	By:	 	/s/ Donald S. Huml
	 

	 	Name:	 	Donald S. Huml
	 

	 	 	 	 
	 

	 	Title:	 	Executive Vice President
and 
Chief Financial Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	GREIF RECEIVABLES FUNDING LLC,
	 	 	as the SPV
	 
	 	 	 	 
	 

	 	By:	 	/s/ John K. Dieker
	 

	 	Name:	 	John K. Dieker
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Acknowledged and Consented to:

GREIF, INC.,

	 	 	 

	By:
	 	/s/ Donald S. Huml
	Name:
	 	Donald S. Huml
	 

	 	 
	Title:
	 	Executive Vice President
and 

Chief Financial Officer 
	 

	 	 

Sale Agreement

 

SCHEDULE I

ORIGINATOR INFORMATION

Actions, Suits, Litigation or Proceedings:

None

Principal Place of Business:

Greif Packaging LLC:

425 Winter Road

Delaware, OH 43015

Chief Executive Office:

Greif Packaging LLC:

425 Winter Road

Delaware, OH 43015

Location of Records:

Greif Packaging LLC:

425 Winter Road

Delaware, OH 43015

Tradenames:

Greif Packaging LLC:

Greif

Greif Industrial Packaging & Services LLC

Greif Containers, Inc.

Federal Employer Identification Number:

Greif Packaging LLC:

36-3268123

Schedule I-1

 

SCHEDULE II

BLOCKED ACCOUNT BANKS AND ACCOUNT INFORMATION

	 	 	 	 	 	 	 
	Bank Name & Address	 	Type of Account	 	Account / ABA Nos.	 	Lockbox Address (PO Box & Street)
	JPM Morgan — 550 W. Van Buren St, 14th Floor,

	 	Collection
	 	Acct

# 323414842
	 	Greif
	Chicago, IL 60607

	 	 	 	LBX# 88911
	 	P.O. Box 88911
	Description — Great Lakes

	 	 	 	ABA# 021000021
	 	Chicago, IL 60695-1879
	JPM Morgan — 550 W. Van Buren St, 14th Floor,

	 	Collection
	 	Acct# 323414850
	 	Greif
	Chicago, IL 60607

	 	 	 	LBX # 88908
	 	P.O. Box 88908
	Description — Massillon Bank Account

	 	 	 	ABA# 021000021
	 	Chicago, IL 60695-1879
	JPM Morgan — 550 W. Van Buren St, 14th Floor,

	 	Collection
	 	Acct# 323414559
	 	Greif
	Chicago, IL 60607

	 	 	 	LBX # 88879
	 	P.O. Box 88879
	Description — Greif Corporate Bank Account

	 	 	 	LBX# 532416
	 	Chicago, IL 60695-1879
	 

	 	 	 	ABA# 021000021	 	 
	 

	 	 	 	 	 	Greif
	 

	 	 	 	 	 	P.O. Box 532416
	 

	 	 	 	 	 	Atlanta, GA 303532416
	JPM Morgan — 550 W. Van Buren St, 14th Floor,

	 	Collection
	 	Acct# 304234117
	 	Greif
	Chicago, IL 60607

	 	 	 	LBX # 88209
	 	P.O. Box 88209
	Description — CorrChoice Bank Account

	 	 	 	LBX# 533035
	 	Chicago, IL 60695-1879
	 

	 	 	 	ABA# 021000021	 	 
	 

	 	 	 	 	 	Greif 

P.O. Box 533035

Atlanta, GA 303532416
	JPM Morgan — 550 W. Van Buren St, 14th Floor,

	 	Concentration
	 	Acct# 323414397	 	 
	Chicago, IL 60607

	 	 	 	ABA# 021000021	 	 
	Description — Greif Receivables Funding Conc.
	 	 	 	 	 	 

Schedule II-1

 

SCHEDULE III

PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

     In addition to the representations, warranties and covenants contained in this Agreement,
each Originator hereby represents, warrants, and covenants as follows:

General

     1. The First Tier Agreement creates a valid and continuing security interest (as defined in
UCC Section 9-102) in the Conveyed Receivables and Related Assets in favor of the SPV, which
security interest is prior to all other Adverse Claims, and is enforceable as such as against
creditors of and purchasers from the Originators.

     2. The Conveyed Receivables constitute “accounts” within the meaning of UCC Section 9-102.
The rights of the Originators under the First Tier Agreement constitute “general intangibles”
within the meaning of UCC Section 9-102.

     3. Each Originator has taken all steps necessary to perfect its security interest against the
applicable Obligors in the Conveyed Receivables and Related Assets (if any) securing the Conveyed
Receivables.

Creation

     4. Immediately prior to the transfer and assignment herein contemplated, each Originator had
good title to the Conveyed Receivables transferred by it to the SPV under the First Tier Agreement,
and was the sole owner thereof, free and clear of all Adverse Claims and, upon the transfer
thereof, the SPV shall have good title to such Conveyed Receivables, and will (i) be the sole owner
thereof, free and clear of all liens, encumbrances, security interests, and rights of others, or
(ii) have a first priority security interest in such Conveyed Receivables, and the transfer or
security interest has been perfected under the UCC. No Originator has taken any action to convey
any right to any Person that would result in such Person having a right to payments due under the
Conveyed Receivables, except as contemplated by the First Tier Agreement and the other Transaction
Documents.

Perfection

     5. Each Originator has taken or will have taken all steps reasonably necessary to assist the
SPV to cause, within ten (10) days after the effective date of the First Tier Agreement, the
filing of all appropriate financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the sale of, or security interest in, the
Conveyed Receivables and the rights of the SPV under the First Tier Agreement from SPV to the
Agent.

SCHEDULE III-1

 

Priority

     6. Other than the transfer of the Conveyed Receivables under the First Tier Agreement, none
of the Originators has pledged, assigned, sold, granted a security interest in, or otherwise
conveyed any of the Conveyed Receivables or the Related Assets.

     7. None of the Originators has any knowledge of any judgment, ERISA or tax lien filings
against it which would reasonably be expected to have a Material Adverse Effect.

     8. Notwithstanding any other provision of this Agreement or any other Transaction Document,
the Perfection Representations contained in this Schedule shall be continuing, and remain in full
force and effect until such time as all obligations under the First Tier Agreement have been
finally and fully paid and performed.

     9. In order to evidence the interests of the SPV under the First Tier Agreement, each
Originator shall, from time to time, take such action, or execute and deliver such instruments
(other than filing financing statements) as may be necessary (including such actions as are
requested in writing by the Agent) to maintain the SPV’s ownership interest and to maintain and
perfect, as a first-priority interest, the SPV’s security interest in the Conveyed Receivables and
the other Related Assets. The Originators shall, upon the request of the Agent, from time to time
and within the time limits established by Law, prepare and present to the Agent for the Agent’s
authorization and approval all financing statements, amendments, continuations or other filings
necessary to continue, maintain and perfect as a first-priority interest the SPV’s interest in the
Conveyed Receivables and other Related Assets. The Agent’s approval of such filings shall authorize
the Originators to file such financing statements under the UCC. Notwithstanding anything else in
the Transaction Documents to the contrary, the Originators shall not have any authority to file a
termination, partial termination, release, partial release, or any amendment that deletes the name
of a debtor or excludes collateral of any such financing statements, without the prior written
consent of the Agent.

SCHEDULE III-2

 

SCHEDULE IV

LIST OF OBLIGORS OF RETAINED RECEIVABLES

None.

Schedule IV-1

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