Document:

exv4w137

EXHIBIT 4.137

	 	 	 	 	 

	 
	 	Dated         29 January        2010
	 	 

Security Interest Agreement

Over Securities

Relating to

Sig Asset Holdings Limited

     (1) SIG Combibloc Group AG

     (2) Wilmington Trust (London) Limited as Collateral Agent

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

 

 

CONTENTS

	 	 	 
	Clause	 	Page
	1 Definitions and Interpretation
	 	3
	2 Security
	 	10
	3 Undertakings
	 	12
	4 Covenants
	 	12
	5 Enforcement Event
	 	13
	6 Continuing Security
	 	13
	7 Exchange Rate
	 	14
	8 Power of Attorney
	 	14
	9 Appropriation
	 	14
	10 Preservation of other Security and Rights and Further Assurance
	 	15
	11 Credit Agreement Warranties
	 	15
	12 Creation of a Suspense Account
	 	15
	13 Assignment
	 	15
	14 Notices
	 	16
	15 Costs and Expenses
	 	16
	16 Delegation
	 	16
	17 Indemnity
	 	16
	18 No liability
	 	16
	19 Droit de Discussion and Droit de Division
	 	16
	20 General
	 	17
	21 Governing Law and Jurisdiction
	 	18
	SCHEDULE 1
	 	19
	SCHEDULE 2
	 	20

 

 

THIS AGREEMENT is dated 29 day of January 2010

BETWEEN:

	(1)	 	SIG COMBIBLOC GROUP AG, a company organised under the laws of Switzerland, registered
with the commercial register (Handelsregister) of the Canton of Schaffhausen under company
number CH-290.3.004.149-2, with its registered seat in Neuhausen am Rheinfall, Switzerland and
its business address as at the date of this Agreement at Laufengasse 18, CH-8212 Neuhausen am
Rheinfall, Switzerland (the “Grantor”); and

	(2)	 	WILMINGTON TRUST (LONDON) LIMITED, a private limited company whose registered number is
05650152 and whose registered office address as at the date of this Agreement is at Fifth
Floor, 6 Broad Street Place, London EC2M 7JH in its capacity as collateral agent as appointed
under the First Lien Intercreditor Agreement (as defined below) for the Secured Parties (as
defined below), with its successors, permitted transferees and assigns in such capacity
(“Collateral Agent”).

RECITALS:

	(A)	 	The Credit Agreement (as defined below) has been entered into under which the Facility
(as defined below) may be provided to Reynolds Group Holdings Inc., Reynolds Consumer Products
Holdings Inc., SIG Euro Holding AG & Co. KGaA, SIG Austria Holding GmbH, Closure Systems
International Holdings Inc. and Closure Systems International B.V. and certain other parties.
The Company (as defined below) and the Grantor are guarantors under the Credit Agreement.

	(B)	 	The Senior Secured Note Indenture (as defined below) has been entered into in
respect of which the Company and the Grantor are guarantors.

	(C)	 	It is a condition subsequent of entry into the Loan Documents (as defined below) (which
include the Credit Agreement and the Senior Secured Note Indenture) that the Grantor enters
into this Agreement in order to secure the discharge of the Obligations (as defined below).

	(D)	 	The Grantor agrees to grant in favour of the Collateral Agent a security interest in the
Collateral (as defined below) so that this Agreement shall constitute a security interest
agreement in accordance with the Law (as defined below) and the Loan Documents (as defined
below).

	 	 	 
	OPERATIVE PROVISIONS
	1

	 	Definitions and Interpretation
	 
	 	 
	1.1

	 	Definitions
	 
	 	 
	 

	 	In this Agreement, unless the context otherwise requires, the
following words and expressions shall have the meanings set out
below:

	 	 	 

	Acknowledgement

	 	means the acknowledgement to be
given to the Collateral Agent by
the Company substantially in the
form set out in Part 2 of
Schedule 2
	 
	 	 
	Additional Agreement

	 	has the meaning given to that
term in the First Lien
Intercreditor Agreement
	 
	 	 

 

 

	 	 	 

	Additional Collateral Agent’s Fee Letter

	 	means the fee letter dated 20
January 2010 among the Collateral
Agent and Reynolds Group Holdings
Limited as amended, novated,
supplemented, restated or
modified from time to time
	 
	 	 
	Agreed Security Principles

	 	has the meaning it is given in
the Credit Agreement and the
Senior Secured Note Indenture and
to the extent of any
inconsistency the meaning it is
given in the Credit Agreement
shall prevail
	 
	 	 
	Amendment No.1 and Joinder Agreement

	 	means the joinder agreement
dated 21 January 2010 made among
(amongst others) the Collateral
Agent, The Bank of New York
Mellon, Credit Suisse AG and
Reynolds Group Holdings Limited
pursuant to which the Collateral
Agent is appointed an additional
collateral agent and becomes
party to the First Lien
Intercreditor Agreement
	 
	 	 
	Applicable Representative

	 	has the meaning given to that
term in the First Lien
Intercreditor Agreement
	 
	 	 
	Borrowers

	 	means the “Borrowers” under or as
defined in the Credit Agreement
from time to time
	 
	 	 
	Business Day

	 	means any day (other than a
Saturday, Sunday or bank holiday)
on which banks are open in New
York, London and Guernsey for
normal banking business
	 
	 	 
	Collateral

	 	means:
	 
	 	 
	 

	 	(1) the Securities;
	 
	 	 
	 

	 	(2) to the fullest extent
permitted by law, all
Derivative Assets; and
	 
	 	 
	 

	 	(3) all of the Grantor’s right,
title and interest to and in the
Securities and the Derivative
Assets

	 
	 	 
	 

	 	and in each case whether or not
the certificates of title
relating to the Securities were
or the title to the Securities
was vested in the Collateral
Agent or its nominees before or
after the date of this Agreement
and whether or not such
certificates were or such title
was vested originally for the
purposes of creating security,
safe custody, collection or
otherwise (and shall include,
unless the context otherwise
requires all or any part of the
assets referred to in (1) to (3)
above)

 

 

	 	 	 

	Companies Law

	 	means The Companies (Guernsey)
Law, 2008 (as amended)
	 
	 	 
	Company

	 	means SIG Asset Holdings Limited
a non-cellular company limited by
shares incorporated in Guernsey
whose registered number is 28883
and whose registered office as at
the date of this Agreement is at
Heritage Hall, Le Marchant
Street, St Peter Port, Guernsey
	 
	 	 
	Credit Agreement

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

	 	means all securities, rights,
dividends, interest, monies,
distributions and other property
(whether of a capital or income
nature) accruing, offered, issued
or deriving at any time by way of
dividend, bonus, redemption,
exchange, purchase, sale,
substitution, conversion,
consolidation, sub-division,
preference, option or otherwise
attributable to any of the
securities which from time to
time comprise the Securities and
includes any Securities which may
be renumbered or redesignated
	 
	 	 
	Encumbrance

	 	means any “Lien” under and as
defined in the First Lien
Intercreditor Agreement, other
than the security interest
created pursuant to this
Agreement
	 
	 	 
	Enforcement Event

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

	 	means the time, credit or banking
facilities provided to the
Borrowers from time to time under
the Credit Agreement
	 
	First Lien Intercreditor Agreement

	 	means the First Lien
Intercreditor Agreement dated 5
November 2009 among (amongst
others) The Bank of New York
Mellon as collateral agent and as
trustee under the Senior Secured
Note Indenture, Credit Suisse AG
(formerly known as Credit 

 

 

	 	 	 

	 

	 	Suisse)
as administrative agent under the
Credit Agreement and the Loan
Parties, as amended, novated,
supplemented, restated or
modified from time to time
(including by the Amendment No.1
and Joinder Agreement which added
the Collateral Agent as a
collateral agent under the First
Lien Intercreditor Agreement)

	 	 	 

	Intercreditor Arrangements

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

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

	 	means the Security Interests

(Guernsey) Law, 1993
	 
	 	 
	Lien

	 	has the meaning given to that
term in the First Lien
Intercreditor Agreement
	 
	 	 
	Loan Documents

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

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

	 	means Reynolds Group Holdings

Limited (formerly known as Rank

Group Holdings Limited)
	 
	 	 
	Notice

	 	means the notice to be given to
the Company substantially in the
form set out in Part 1 of
Schedule 2
	 
	 	 
	Obligations

	 	means all present and future
obligations and liabilities
(whether actual or contingent and
whether owed jointly or severally
or in any other capacity
whatsoever) of each Loan Party
and each grantor of a security
interest to the Secured Parties
(or any of them) under each or
any of the Loan Documents
including in particular, but not
limited to, the Parallel
Obligations together with all
costs, charges and expenses
incurred by any Secured Party in
connection with the protection,
preservation or enforcement of
its respective rights under the
Loan Documents or any other
documents

 

 

	 	 	 

	 

	 	evidencing or securing
any such liabilities provided
always that the Grantor

(A) shall only be liable under
this Agreement or any other Loan
Document (including, for the
avoidance of doubt, any
restructuring of the Grantor’s
rights of set-off and/or
subrogation and its duties to
subordinate claims) in relation
to obligations (other than
obligations under the Loan
Documents of (y) the Grantor (i)
incurred as Borrower under the
Credit Agreement, (ii) incurred
as borrower under a Local
Facility Agreement (as defined in
the Credit Agreement), (iii)
incurred as a party to and
beneficiary under any Hedging
Agreement (as defined in the
Credit Agreement), (iv) owed as
Cash Management Obligations,
provided the Grantor is a
beneficiary of the Cash
Management Services causing such
Cash Management Obligations (all
as defined in the Credit
Agreement), (v) incurred as a
party to and beneficiary under
any Additional Agreement or (vi)
to the extent certain proceeds of
the Senior Secured Note Indenture
have been made available to the
Grantor, up to such proceeds and
(z) a direct or indirect
subsidiary of the Grantor (the
“Grantor’s Subsidiary”) (i)
incurred as Borrower under the
Credit Agreement, (ii) incurred
as borrower under a Local
Facility Agreement (as defined in
the Credit Agreement), (iii)
incurred as a party to and
beneficiary under any Hedging
Agreement (as defined in the
Credit Agreement), (iv) owed as
Cash Management Obligations,
provided the Grantor’s Subsidiary
is a beneficiary of the Cash
Management Services causing such
Cash Management Obligations (all
as defined in the Credit
Agreement), (v) incurred as a
party to and beneficiary under
any Additional Agreement or (vi)
to the extent certain proceeds of
the Senior Secured Note Indenture
have been made available to the
Grantor’s Subsidiary, up to such
proceeds) to the extent such
obligations do not constitute a
repayment of capital
(Einlagerueckgewaehr), a
violation of the legally
protected reserves (gesetzlich
geschuetzte Reserven) or a
payment of a (constructive)
dividend prohibited by the Swiss
Federal Code of Obligations by
the Grantor and in the maximum
amount of its profits available
for the distribution of dividends
at the point in time the
Grantor’s obligations fall due
(being the balance sheet profits
and any free reserves made for
this

 

 

	 	 	 

	 

	 	purpose, in each case in
accordance with the relevant
Swiss law);
	 
	 	 
	 

	 	(B) pass for such payments
shareholder’s resolutions for the
distribution of dividends in
accordance with the relevant
provisions of the Swiss Federal
Code of Obligations being in
force at that time (currently the
profits available for the
distribution of dividends as
described above must be
determined based on an audited
balance sheet and such
shareholders’ resolution must be
based on a report from the
Grantor’s auditors approving the
proposed distribution of
dividends); and
	 
	 	 
	 

	 	(C) deduct from such payments
Swiss Anticipatory Tax
(withholding tax) at the rate of
35% (or such other rate as in
force from time to time) and
subject to any applicable double
taxation treaty and/or agreements
entered into with the Swiss
Federal Tax administration:
	 
	 	 
	 

	 	(i) pay such deduction to the
Swiss Federal Tax Administration;
and

	 
	 	 
	 

	 	(ii) give evidence to the
respective Secured Party
beneficiary or Secured Parties
beneficiaries (as the same may
be) of such deduction in
accordance with Section 2.20 of
the Credit Agreement (Taxes) and
Section 4.15 of the Senior
Secured Note Indenture
(Withholding Taxes);

	 
	 	 
	 

	 	(iii) but if such a deduction is
made, not be obliged to gross-up
pursuant to Section 2.20 of the
Credit Agreement (Taxes) and
Section 4.15 of the Senior
Secured Note Indenture
(Withholding Taxes) to the extent
that such gross-up would result
in the aggregate amounts paid to
the Secured Parties beneficiaries
and the Swiss Federal Tax
administration exceeding the
maximum amount of its profits
available for the distribution of
dividends

	 
	 	 
	Parallel Obligations

	 	means the independent obligations
of any of the Loan Parties
arising pursuant to the First
Lien Intercreditor Agreement to
pay to the Collateral Agent sums
equal to the sums owed by such
Loan Party to the other Secured
Parties (or any of them) under
the Loan Documents

 

 

	 	 	 

	Principal Finance Documents

	 	means the Credit Agreement, the
Senior Secured Note Indenture,
the Intercreditor Arrangements
and any Additional Agreement
	 
	 	 
	Required Currency

	 	means the currency or currencies
in which the Obligations are
expressed from time to time
	 
	 	 
	Secured Parties

	 	means the “Secured Parties”
under, and as defined in, the
First Lien Intercreditor
Agreement
	 
	 	 
	Securities

	 	means the securities described in
Schedule 1 and any and all
further shares in the capital of
the Company of which the Grantor
may become the legal and/or
beneficial owner from time to
time
	 
	 	 
	Security Documents

	 	means the “Security Documents”
under, and as defined in, the
First Lien Intercreditor
Agreement
	 
	 	 
	Security Period

	 	means the period commencing on
the date of this Agreement and
terminating on the date upon
which the security constituted by
this Agreement is released in
accordance with Clause 6 of this
Agreement
	 
	 	 
	Senior Secured Note Indenture

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

	1.2	 	Interpretation

	 	1.2.1	 	Headings in this Agreement are inserted for convenience only and shall be
ignored in construing this Agreement.
	 
	 	1.2.2	 	Unless the context otherwise requires, words (including definitions) denoting
the singular number only shall include the plural and vice versa.
	 
	 	1.2.3	 	References to “this Agreement”, a “Clause” or a “Schedule” are references to
this agreement or a clause in or schedule of it.
	 
	 	1.2.4	 	References to laws, ordinances, statutes and/or statutory provisions shall be
construed as referring to such laws, ordinances, statutes or statutory provisions as
respectively replaced amended extended or consolidated.
	 
	 	1.2.5	 	References to any document shall be construed as a reference to such document
as the same may be amended, extended, restructured, renewed, novated, supplemented,
restated, refunded, replaced or modified from time to time.

 

 

	 	1.2.6	 	References to the “Collateral Agent” or the “Grantor” shall include a
reference to any successor, permitted transferee and permitted assign.
	 
	 	1.2.7	 	References to a “party” shall mean a party to this Agreement.
	 
	 	1.2.8	 	The expression “person” shall be construed to include references to any
person, firm, company, partnership, corporation or any agency of any of them.
	 
	 	1.2.9	 	The Grantor shall be the “debtor”, the Collateral Agent shall be the “secured
party” and an Enforcement Event which is continuing shall be the “events of default”
for the purposes of the Law.
	 
	 	1.2.10	 	Unless defined in this Agreement or the context otherwise requires, a term defined in
the First Lien Intercreditor Agreement has the same meaning in this Agreement and in
any notice given under this Agreement.

	1.3	 	The Grantor acknowledges and agrees that the Collateral Agent’s actions under this Agreement
are on the basis of authority conferred under the Principal Finance Documents to which the
Collateral Agent is a party, and on directions of the Applicable Representative. In so
acting, the Collateral Agent shall have, subject to the terms of the Principal Finance
Documents, the protections, immunities, rights, indemnities and benefits conferred on the
collateral agent under the Principal Finance Documents.
	 
	1.4	 	For the avoidance of doubt, it is acknowledged that the Collateral Agent is permitted to act
on the instructions of the Applicable Representative in accordance with Clause 2.02(a)(i) of
the First Lien Intercreditor Agreement. It is further acknowledged that the Collateral Agent
may assume that any and all instructions received by it from the Applicable Representative
under this Agreement are reasonable, and that any question as to the reasonableness or
otherwise of such instructions shall be determined as between the Applicable Representative
and the Grantor.
	 
	2	 	Security

	2.1	 	In consideration of the borrowings under the Loan Documents and for the purpose
of securing the discharge of the Obligations, the Grantor as legal owner of all the Securities
as identified in Schedule 1 hereby:

	 	2.1.1	 	acknowledges and confirms delivery to the Collateral Agent of the certificates
or documents of title to the Securities; and
	 
	 	2.1.2	 	assigns to and charges in favour of the Collateral Agent all its rights, title
and interest in and the benefit of the Collateral in order to create a security
interest in or over it in accordance with the Law.

	2.2	 	The Grantor agrees that the security created over all rights, title and interest in and the
benefit of the Collateral pursuant to this Agreement constitutes continuing security for the
payment, performance and discharge of the Obligations and that, subject to the Legal
Reservations (as defined in the Credit Agreement), the Collateral Agent shall have a first
priority security interest over the Collateral in accordance with the Law.

	2.3	 	Until the payment, performance and discharge of the Obligatons, the obligations of the
Grantor under this Agreement and the security created pursuant to this Agreement shall not be
discharged, impaired or otherwise affected by:

 

 

	 	2.3.1	 	any time, waiver or consent granted to, or composition with, any Loan Party or
other person;
	 
	 	2.3.1	 	the release of any Loan Party or any other person under the terms of any
composition or arrangement with any creditor of any member of the Group;
	 
	 	2.3.2	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or security over assets
of, any Loan Party or other person or any non-presentation or non-observance of any
formality or other requirement in respect of any instrument or any failure to realise
the full value of any security;
	 
	 	2.3.3	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of any Loan Party or any other person;
	 
	 	2.3.4	 	any amendment, novation, supplement, extension (whether of maturity or
otherwise) or restatement (in each case however fundamental and of whatsoever nature,
and whether or not more onerous) or replacement of a Loan Document or any other
document or security or of the Obligations;
	 
	 	2.3.5	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Loan Documents or any other document or security or of the Obligations; or
	 
	 	2.3.6	 	any insolvency or similar proceedings, including, as a matter of Guernsey law,
a declaration of désastre or the granting of a preliminary vesting order.

	2.4	 	The creation of the security interest pursuant to Clause 2.1 is in addition to, and shall not
affect, the Collateral Agent’s other rights under or pursuant to this Agreement.

	2.5	 	The Grantor undertakes that, on the date of execution of this Agreement, it shall:

	 	2.5.1	 	provided that the Notice has been signed by the Collateral Agent, execute and
deliver to the Company the Notice and, following the delivery of such Notice, procure
that the Company executes and promptly delivers the Acknowledgment to the Collateral
Agent; and
	 
	 	2.5.2	 	execute and deliver undated stock transfer forms in relation to the Securities
(the “Stock Transfer Forms”), with the name of the transferee left blank, to the
Collateral Agent.

	2.6	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent may complete the
Stock Transfer Forms.

	2.7	 	No defect in respect of any security interest created in any intangible movable property from
time to time comprising the Collateral shall derogate from or affect the validity of this
Agreement or the security interest created pursuant to this Agreement in relation to any other
intangible movable property.

	2.8	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent may at its
discretion pay any calls or other payments due from time to time in respect of the Collateral
or payable in respect of any rights attaching to the Collateral.

	2.9	 	Unless an Enforcement Event has occurred and is continuing, the parties to this Agreement
agree that:

	 	2.9.1	 	the Grantor may receive all dividends, income, interest or other amounts
relating to the Derivative Assets from time to time paid on the Collateral to the

 

 

	 	 	 	extent permitted under the Principal Finance Documents; and
	 
	 	2.9.2	 	the Grantor shall be entitled to exercise all voting rights in relation to the
Collateral and exercise all other rights and powers in respect of the Collateral
provided that the Grantor shall not exercise such rights and powers in any manner which
would adversely affect the validity or enforceability of this Agreement or which would
cause the occurrence of an Enforcement Event.

	3	 	Undertakings

	3.1	 	The Grantor undertakes to the Collateral Agent for the continuance of this Agreement that,
unless otherwise permitted under the Principal Finance Documents:

	 	3.1.1	 	it will pay all calls or other payments due from time to time in respect of
the Securities;
	 
	 	3.1.2	 	it will use best endeavours to procure that throughout the Security Period:

	 	(a)	 	no further shares in the Company shall be issued other than to
the Grantor unless the Grantor complies with Clause 3.2; and
	 
	 	(b)	 	no amendment be made to the memorandum and articles of
incorporation of the Company which would adversely affect the validity or
enforceability of this Agreement or which would cause the occurrence of an
Enforcement Event, without the prior written consent of the Collateral Agent (acting on the reasonable
instruction of the Applicable Representative); and

	 	3.1.3	 	it will deposit with the Collateral Agent copies of all documents relating to
any bonus or rights or other issue of stock or shares in respect of the Securities.

	3.2	 	At all times throughout the Security Period, the Grantor shall, subject to the Agreed
Security Principles, cause any third party which may, from time to time, subscribe for shares
of the Company, to provide a Lien over such shares in a substantially similar form to this
Agreement.
	 
	4	 	Covenants

	4.1	 	The Grantor covenants and undertakes to the Collateral Agent, so that the same shall be
continuing covenants and undertakings throughout the Security Period, that it shall not
without prior written consent of the Collateral Agent, acting on the instruction of the
Applicable Representative (such instruction not to be unreasonably withheld or delayed),
except as permitted under the Principal Finance Documents or this Agreement:

	 	4.1.1	 	negotiate, settle or waive any claim for loss, damage or other compensation
affecting the Collateral or any part of it; or
	 
	 	4.1.2	 	create nor attempt to create nor allow the creation of any further Encumbrance
in or over the Collateral; or
	 
	 	4.1.3	 	sell or attempt to sell, encumber, withdraw, close, disburse, pay, assign,
transfer or otherwise dispose of the Collateral or any interest in it or part of it.

	4.2	 	The Grantor covenants and undertakes to the Collateral Agent, so that the same shall be
continuing covenants and undertakings throughout the Security Period, that it shall use best
endeavours to prevent any person (other than the Collateral Agent,

 

 

	 	 	any Secured Party or the Grantor) from becoming entitled to claim any right over the Collateral or any part of it, unless
such claim is permitted by the Principal Finance Documents.
	 
	5	 	Enforcement Event

	5.1	 	Without prejudice and in addition to any of the rights of the Collateral Agent under the Law
(after the occurrence of an Enforcement Event which is continuing), if an Enforcement Event
has occurred and is continuing, the Collateral Agent may (upon the instruction of the
Applicable Representative) enforce the security granted by this Agreement, following delivery
of the required notice under the Law.
	 
	5.2	 	If an Enforcement Event has occurred and is continuing and provided the Collateral Agent has
served notice in accordance with Clause 5.1, the Grantor authorises and instructs the
Collateral Agent to deal with the Collateral in its own discretion as it sees fit in
accordance with the Intercreditor Arrangements without any reference to or further authority
from the Grantor and without any enquiry by the Grantor as to the justification for the
Collateral Agent’s actions.

	6	 	Release of Security

	6.1	 	The security interest created pursuant to this Agreement shall continue in full force and effect until it shall be
released, re-assigned, re-transferred and cancelled:

	 	6.1.1	 	by the Collateral Agent (acting on the instructions of the Applicable
Representative) at the request and cost of the Grantor, upon the Obligations being
irrevocably paid or discharged in full and none of the Secured Parties being under any
further actual or contingent obligation to make advances or provide other financial
accommodation to the Grantor or any other person under any of the Loan Documents; or
	 
	 	6.1.2	 	in accordance with, and to the extent required by, the Intercreditor
Arrangements (to the extent it is possible to give effect to such arrangements under
Guernsey law).

	6.2	 	Upon the discharge of the security interest created pursuant to this Agreement the Collateral
Agent shall at the Grantor’s cost:

	 	6.2.1	 	furnish to the Grantor a completed certificate of discharge in the form
prescribed by the Law;
	 
	 	6.2.2	 	re-assign or re-transfer the Collateral to the Grantor or to such person as
the Grantor may direct;
	 
	 	6.2.3	 	deliver the certificates or documents of title, notices and stock transfer
forms in respect of the Collateral to the Grantor or to such other person as the
Grantor may direct; and
	 
	 	6.2.4	 	do all such acts which are reasonably requested by the Grantor in order to
release, re-assign, re-transfer and cancel the security interest constituted by this
Agreement.

	6.3	 	If the Grantor disposes of any Collateral and that disposal is permitted by the Principal
Finance Documents, that Collateral shall, unless an Enforcement Event has occurred and is
continuing, be automatically released, re-assigned, re-transferred and cancelled from the
security interest constituted by this Agreement with effect from the day of such disposal and
the Collateral Agent (at the expense and cost of the Grantor) shall do all such acts which are
reasonably requested by the Grantor in

 

 

		 	order to release, re-assign, re-transfer and cancel the relevant Collateral from the security interest constituted by this Agreement. Any or all of the Collateral shall also be released, re-assigned, re-transferred and cancelled in
accordance with and to the extent permitted by the Intercreditor Arrangements.
	 
	7	 	Exchange Rate
	 
	 	 	The Collateral Agent may exchange or convert to the Required Currency any currency held or received by it from the Grantor in accordance with the terms of the Principal Finance
Documents.
	 
	8	 	Power of Attorney
	 
	8.1	 	The Grantor by way of security irrevocably appoints the Collateral Agent to be its 	attorney (with 	full power of substitution and delegation) in its name and on its behalf 	and as its act 	and deed to execute, deliver and perfect
 all documents and do all 	things which the attorney may consider to be required or desirable for:

	 	8.1.1	 	carrying out any obligation imposed on the Grantor by this Agreement or any
other agreement binding on the Grantor in relation to the Collateral to which the
Collateral Agent is a party (including the execution and delivery of any deeds,
charges, assignments or other security and any transfers of the Collateral);
	 
	 	8.1.2	 	enabling the Collateral Agent to exercise, or delegate the exercise of, all or
any of its rights under or pursuant to this Agreement or by law; and
	 
	 	8.1.3	 	enabling any person delegated by the Collateral Agent to exercise, or delegate
the exercise of any of the rights, powers and authorities conferred on them by or
pursuant to this Agreement or by law,

	 	 	provided always that the Collateral Agent may only be entitled to exercise the powers
conferred upon it by the Grantor under this Clause 8.1 if:

	 	(i)	 	an Enforcement Event has occurred and is continuing; and/or
	 
	 	(ii)	 	in respect of further assurance obligations or any action relating to the
perfection of the security contemplated under this Agreement, the Collateral Agent has
received notice from the Applicable Representative, the Loan Parties’ Agent and/or the
Grantor that the Grantor has failed to comply with a further assurance or perfection
obligation within 10 Business Days of being notified of that failure (with a copy of
that notice being sent to the Loan Parties’ Agent),

	 	 	provided further that the Collateral Agent shall not be obliged to exercise the powers
conferred upon it by the Grantor under this Clause 8.1 unless and until it shall have been
(a) instructed to do so by the Applicable Representative and (b) indemnified and/or secured
and/or prefunded to its satisfaction.

	8.2	 	The Grantor shall ratify and confirm all things lawfully done and all documents properly
executed by the Collateral Agent or any person properly delegated by it as an attorney in the
exercise or purported exercise of all or any of the powers hereby granted.

9 Appropriation

	9.1	 	Subject to Clause 9.2 and if an Enforcement Event has occurred and is continuing, the
Collateral Agent may appropriate all payments received in respect of the

 

 

	 	 	Collateral for the account of the Grantor in reduction of any part of the Obligations in
accordance with the Intercreditor Arrangements.
	 
	9.2	 	The Collateral Agent may open a new account or accounts if the Collateral Agent receives
actual or constructive notice of any charge or interest affecting the Collateral, unless such
charge or interest is permitted under the Principal Finance Documents. Whether or not the
Collateral Agent opens any such account no payment received by the Collateral Agent after
receiving such notice shall (if followed by any payment out of or debit to the relevant
account other than for the purpose of satisfying the Obligations) be appropriated towards or
have the effect of discharging any part of the Obligations outstanding at the time of
receiving such notice, unless such notice is in respect of a charge or interest permitted
under the Principal Finance Documents.
	 
	10	 	Preservation of other Security and Rights and Further Assurance
	 
	10.1	 	This security is in addition to any other security present or future held by the Collateral
Agent for the Obligations and shall not merge with or prejudice such other security or any
contractual or legal rights of the Collateral Agent.
	 
	10.2	 	The security created by this Agreement shall not be affected by any other security held by
the Collateral Agent in respect of the Obligations being void or unenforceable.
	 
	10.3	 	Subject to the Agreed Security Principles, the Grantor shall at its own cost and at the
Collateral Agent’s request (acting on the reasonable instructions of the Applicable
Representative), execute or procure the execution of, any agreement, deed or document and take
any action required by the Collateral Agent, in each case to protect or preserve the security
created by this Agreement over the Collateral.
	 
	11	 	Credit Agreement Warranties
	 
	 	 	The Grantor hereby warrants and represents to the Collateral Agent that, on and as at the
date of this Agreement with reference to the facts and circumstances then existing and
subject to the provisions of the Principal Finance Documents and the Intercreditor
Arrangements, the representations and warranties made by the Grantor as Loan Party in
Section 3.01 (Organisation; Powers), Section 3.02 (Authorization), Section 3.03
(Enforceability), Section 3.06 (No Material Adverse Change), Section 3.07 (Title to
Properties; Possession Under Leases), Section 3.09 (Litigation; Compliance with Laws),
Section 3.10 (Agreements), Section 3.19 (Security Documents) and Section 3.22 (Solvency) of
the Credit Agreement are true and accurate as regards the Grantor and this Agreement.
	 
	12	 	Creation of a Suspense Account
	 
	12.1	 	All monies received, recovered or realised by the Collateral Agent under this Agreement may,
at the discretion of the Collateral Agent (acting on the instructions of the Applicable
Representative), be credited to an interest bearing separate or suspense account for so long
as the Collateral Agent may think fit without any intermediate obligation on the part of the
Collateral Agent to apply such monies in or towards payment and discharge of the Obligations.
	 
	13	 	Assignment
	 
	13.1	 	The Collateral Agent may assign and transfer all or any part of its rights and obligations
under this Agreement in accordance with the Principal Finance Documents and the expression
“Collateral Agent” wherever used in this Agreement shall be deemed to include any such
assignees and other successors permitted

 

 

	 	 	under the Principal Finance Documents, whether immediate or derivative, of the Collateral
Agent, who shall be entitled to enforce and proceed upon this Agreement in the same manner
as if named in this Agreement.

	13.2	 	The Grantor shall not assign or otherwise transfer all or any of its rights, benefits or
obligations arising under this Agreement unless otherwise permitted by the Principal Finance
Documents.
	 
	14	 	Notices

	14.1	 	For the purposes of section 13 of the Law, any notice or demand by the Collateral Agent
or the Grantor shall be made or given in accordance with Section 5.01 of the First Lien
Intercreditor Agreement or may effectually be made by notice in writing to the Grantor served
in accordance with Section 13 of the Law.

	14.2	 	For the avoidance of doubt, the parties to this Agreement agree that any notice of
default required to be given pursuant to Section 7(3) of the Law shall be deemed to have been
received by the Grantor if delivered in accordance with Clause 14.1 above.
	 
	15	 	Costs and Expenses

	 	 	The parties agree that the Additional Collateral Agent’s Fee Letter and Section
9.05(a) of the Credit Agreement shall apply to this Agreement as regards the Grantor and
this Agreement.
	 
	16	 	Delegation

	 	 	Subject to Section 4.05 of the First Lien Intercreditor Agreement, the Collateral Agent
shall have full power to delegate (either generally or specifically) the powers, authorities
and discretions conferred on it by this Agreement (including the power of attorney) on such
terms and conditions as it shall see fit which delegation shall not preclude either the
subsequent exercise, any subsequent delegation or any revocation of such power, authority or
discretion by the Collateral Agent itself.
	 
	17	 	Indemnity

	 	 	To the extent set out in Section 4.11 of the First Lien Intercreditor Agreement, the
Grantor shall, notwithstanding any release or discharge of all or any part of the security,
indemnify the Collateral Agent, its agents, attorneys and any delegate against any action,
proceeding, claims, losses, liabilities, expenses, demands, taxes and costs which it may
sustain as a consequence of any breach by the Grantor of the provisions of this Agreement,
the exercise or purported exercise of any of the rights and powers conferred on them by this
Agreement or otherwise relating to the Collateral.
	 
	18	 	No liability

	 	 	None of the Collateral Agent, its nominee(s) or any delegate appointed pursuant to this
Agreement shall be liable by reason of (a) taking any action permitted by this Agreement or
(b) any neglect or default in connection with the Collateral or (c) the taking possession or
realisation of all or any part of the Collateral, except to the extent provided in the
Principal Finance Documents.
	 
	19	 	Droit de Discussion and Droit de Division

	 	 	The Grantor abandons all and every right which it may have at any time under any existing or
future Guernsey law including, but not limited to the “droit de discussion” and the “droit
de division” or otherwise to require that recourse be had to the assets of some other person
nor shall the Grantor be entitled to require that any other person be made a party to any
legal proceedings brought by the Collateral Agent, or

 

 

	 	 	to require that any liability of the Grantor be divided or apportioned amongst any other
persons or reduced in any manner whatsoever, whether the formalities required by Guernsey
law, in regard to the rights or obligations of sureties shall or shall not have been
observed.
	 
	20	 	General
	 
	20.1	 	The rights and remedies provided in this Agreement are cumulative and are not exclusive of
any rights or remedies provided by law or to which the Collateral Agent may otherwise be
entitled.
	 
	20.2	 	No failure on the part of the Collateral Agent to exercise and no delay on its part in
exercising any right or remedy under this Agreement will operate as a waiver of it, nor will
any single or partial exercise of any right or remedy preclude any other or further exercise
of it or any other right or remedy.
	 
	20.3	 	With the exception of any action permitted under this Agreement, any waiver or consent by the
Collateral Agent under this Agreement must be in writing and may be given subject to any
conditions thought fit by the Collateral Agent acting reasonably. Unless otherwise stated,
any waiver or consent shall be effective for the period and for the purpose for which it is
given.
	 
	20.4	 	Any liberty or power which may be exercised or any determination which may be made under this
Agreement by the Collateral Agent may, subject to any terms of this Agreement to the contrary,
be exercised or made in the absolute and unfettered discretion of the Collateral Agent.
	 
	20.5	 	This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, personal representatives, executors, administrators, successors, permitted
transferees and permitted assigns as provided in this Agreement.
	 
	20.6	 	The security interests created under this Agreement shall remain binding on the Grantor
notwithstanding any amalgamation, re-construction, re-organisation, merger, sale, liquidation,
administration or transfer by or involving the Collateral Agent or its assets unless such
security interests are released, re-assigned, re-transferred or cancelled in accordance with
Clause 6 of this Agreement.
	 
	20.7	 	Nothing in this Agreement and no action taken by the parties pursuant to this Agreement shall
constitute, or be deemed to constitute, the parties a partnership, association, joint venture
or other co-operative entity.
	 
	20.8	 	Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Agreement, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
	 
	20.9	 	This Agreement is subject to the terms of the Intercreditor Arrangements. In the event of a
conflict between the terms of this Agreement and the Intercreditor Arrangements, the terms of
the Intercreditor Arrangements will prevail.
	 
	20.10	 	The Collateral Agent shall be entitled to impart any information concerning the Grantor in
respect of the Collateral to the extent permitted by the terms of the Principal Finance
Documents and this Agreement.
	 
	20.11	 	This Agreement may be executed in any number of counterparts. All the counterparts shall
together constitute a single instrument.

 

 

	21	 	Governing Law and Jurisdiction
	 
	21.1	 	This Agreement shall be governed by and construed in accordance with the laws of the Island
of Guernsey.
	 
	21.2	 	For the benefit of the Collateral Agent the Grantor irrevocably submits to the jurisdiction
of the Guernsey courts and the Grantor irrevocably agrees that a judgment in any proceedings
in connection with this Agreement by the Guernsey courts shall be conclusive and binding upon
the Grantor and may be enforced against the Grantor in the courts of any other jurisdiction.
The Collateral Agent shall also be entitled to take proceedings in connection with this
Agreement against the Grantor in the courts of any country in which the Grantor has assets or
in any other courts of competent jurisdiction.
	 
	21.3	 	The Grantor waives:

	 	21.3.1	 	any objection which the Grantor may now or in the future have to the Guernsey courts
or other courts referred to in Clause 21.2 as a venue for any proceedings in connection
with this Agreement; and
	 
	 	21.3.2	 	any claim which the Grantor may now or in the future be able to make that any
proceedings in the Guernsey courts or other courts referred to in Clause 21.2 have been
instituted in an inappropriate forum.

IN WITNESS OF WHICH this Agreement has been duly executed

SIGNED by

/s/ Philip
West 

Philip West

Attorney

for and on behalf of

SIG COMBIBLOC GROUP AG

SIGNED by

/s/ Elaine
Lockhart 

Elain Lockart

for and on behalf of

WILMINGTON TRUST (LONDON) LIMITED

 

 

SCHEDULE 1

The Securities

The entire issued share capital of SIG Asset Holdings Limited a non-cellular company limited by
shares whose registered number is 28883 and whose registered office as at the date of this
Agreement is at Heritage Hall, Le Marchant Street, St Peter Port, Guernsey, being 81,647 non
redeemable preference shares of €10.00 each fully paid up and 656 ordinary shares of €10.00 each
fully paid up.

	 	 	 	 	 	 	 	 	 

	SHAREHOLDER AND
	 	BENEFICIAL OWNER	 	NO. OF SHARES	 	CLASS OF SHARES	 	CERTIFICATE NO.
	ADDRESS AND
REGISTERED NUMBER
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIG COMBIBLOC GROUP
	 	SIG COMBIBLOC	 	656	 	Ordinary	 	2004
	AG with business
	 	GROUP AG	 	 	 	 	 	 
	address as at the
date of this
Agreement, at
Laufengasse
18, CH-8212
Neuhausen am
Rheinfall,
Switzerland and
company number
CH-290.3.004.149-2
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIG COMBIBLOC GROUP
	 	SIG COMBIBLOC	 	81,647	 	Non redeemable	 	3009
	AG with business
	 	GROUP AG	 	 	 	preference	 	 
	address as at the
date of this
Agreement, at
Laufengasse
18, CH-8212
Neuhausen am
Rheinfall,
Switzerland and
company number
CH-290.3.004.149-2
	 	 	 	 	 	 	 	 

 

 

SCHEDULE 2

Part 1

Notice to Company

	 	 	 

	To:

	 	SIG Asset Holdings Limited (“Company”)
	 
	 	 
	From:

	 	Wilmington Trust (London) Limited (“Collateral Agent”); and
	 
	 	 
	 

	 	SIG Combibloc Group AG (“Grantor”)
	 
	 	 
	Date:

	 	[•]

Dear Sirs

Security Interest Agreement over Securities in the Company between the Grantor, the Company and the
Collateral Agent dated [•] (“SIA”)

We refer to the SIA. This is a Notice. Terms defined in the SIA have the same meaning when used
in this Notice unless given a different meaning in this Notice.

	1	 	We give you notice that pursuant to the terms of the SIA the Grantor has assigned to the
Collateral Agent:

	1.1	 	the entire issued share capital of the Company as at the date hereof (“Securities”); and

	1.2	 	to the fullest extent permitted by law, all securities, rights, dividends, interest, monies
and distributions (whether of a capital or income nature) accruing, offered, issued or
deriving at any time by way of dividend, bonus, redemption, exchange, purchase, sale,
substitution, conversion, consolidation, sub-division, preference, option or otherwise
attributable to any of the securities which from time to time comprise the Securities and
includes any Securities which may be renumbered or redesignated (“Derivative Assets”); and

	1.3	 	all the Grantor’s right, title and interest to and in the Securities and the Derivative
Assets,

	 	 	(together the “Collateral”).

	2	 	Until the entry of the name of the Collateral Agent or its nominee in the register of members
of the Company in accordance with the terms of the SIA, the assignment of the Collateral
pursuant to the SIA does not operate as an assignment to the Collateral Agent of the voting
rights in or in respect of the Securities, nor does it operate as an assignment of all
Derivative Assets from time to time paid on the Collateral.

	3	 	We irrevocably authorise you to disclose to the Collateral Agent or its nominees, attorneys
or assigns (notified by you in writing from time to time by the Collateral Agent) all such
information relating to the Securities as you are required to disclose under the terms of the
Principal Finance Documents.

	4	 	Unless you receive notice from the Collateral Agent or its nominees, attorneys or

 

 

	 	 	assigns to the contrary, or the Lien over such Securities is released in accordance with the
terms of the SIA, you shall administer the Securities in accordance with the terms of this
Notice.

	6	 	This notice shall be governed by and construed in accordance with the laws of the Island of
Guernsey.

Please confirm your agreement to be bound by and comply with the terms of this Notice by signing
and returning, both a copy of this Notice and the acknowledgement below, to the Collateral Agent at
the address below marked for the attention of Elaine Lockhart with a copy to the Grantor.

Yours faithfully

SIGNED by

For and on behalf of

WILMINGTON TRUST (LONDON) LIMITED

SIGNED by

For and on behalf of

SIG COMBIBLOC GROUP AG

 

 

Part 2

ACKNOWLEDGMENT

	 	 	 
	To:

	 	Wilmington Trust (London) Limited

6 Broad Street Place

London EC2M 7JH

United Kingdom

For the attention of: Elaine Lockhart

Dated
[•]

Dear Sirs

Terms defined in the Notice have the same meaning when used in this Acknowledgment.

We confirm that:

	(1)	 	we accept the authorisations and instructions contained in the Notice and we undertake to act
in accordance and comply with the terms of the Notice;

	(2)	 	at the date of this acknowledgement we have not received notice of any other security
interest, lien, mortgage, charge or any other third party interest whatsoever in relation to
the Securities;

	(3)	 	if we become aware of any matter referred to in paragraph (2) above, unless such matter is
permitted under the Principal Finance Documents (as defined in the SIA) we will promptly
inform you in writing of such event;

	(4)	 	if instructed by you in writing (accompanied by a relevant and complete stock transfer form)
if an Enforcement Event (as defined in the SIA) has occurred and is continuing, we will enter
in the register of members of the Company your name or the name of any nominee, attorney or
assignee in accordance with the provisions of such stock transfer form;

This acknowledgement is governed by and construed in accordance with the laws of the Island of
Guernsey.

Yours
faithfully

SIG ASSET HOLDINGS LIMITEDexv4w138

EXHIBIT 4.138

Dated  January 29 2010

Security Interest Agreement

Over Third Party Bank Account

Relating to

SIG Asset Holdings Limited

	 	(1)	 	SIG Asset Holdings Limited
	 
	 	(2)	 	Wilmington Trust (London) Limited As Collateral
Agent

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

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page
	 
	 	 	 	 	 	 
	1

	 	Definitions and Interpretation
	 	 	3	 
	2

	 	Security
	 	 	8	 
	3

	 	Warranties
	 	 	9	 
	4

	 	Covenants
	 	 	9	 
	5

	 	Enforcement Events
	 	 	10	 
	6

	 	Release of Security
	 	 	10	 
	7

	 	Exchange Rate
	 	 	11	 
	8

	 	Power of Attorney
	 	 	11	 
	9

	 	Appropriation
	 	 	12	 
	10

	 	Preservation of other Security and Rights and Further Assurance
	 	 	12	 
	11

	 	Credit Agreement Warranties
	 	 	12	 
	12

	 	Creation of a Suspense Account
	 	 	13	 
	13

	 	Assignment
	 	 	13	 
	14

	 	Notices
	 	 	13	 
	15

	 	Costs and Expenses
	 	 	13	 
	16

	 	Delegation
	 	 	13	 
	17

	 	Indemnity
	 	 	13	 
	18

	 	No liability
	 	 	14	 
	19

	 	Droit de Discussion and Droit de Division
	 	 	14	 
	20

	 	General
	 	 	14	 
	21

	 	Governing Law and Jurisdiction
	 	 	15	 
	SCHEDULE 1	 	 	17	 
	SCHEDULE 2	 	 	18	 
	SCHEDULE 3	 	 	20	 
	SCHEDULE 4	 	 	21	 

-2-

 

THIS AGREEMENT is dated 29 day of January 2010

BETWEEN:

	(1)	 	SIG Asset Holdings Limited, a non-cellular company limited by shares incorporated in Guernsey
whose registered number is 28883 and whose registered office as at the date of this Agreement
is at Heritage Hall, Le Marchant Street, St Peter Port, Guernsey (“Grantor”); and
	 
	(2)	 	Wilmington Trust (London) Limited, a private limited company whose registered number is
05650152 and whose registered office address as at the date of this Agreement is at Fifth
Floor, 6 Broad Street Place, London EC2M 7JH in its capacity as collateral agent as appointed
under the First Lien Intercreditor Agreement (as defined below) for the Secured Parties (as
defined below), with its successors, permitted transferees and assigns in such capacity
(“Collateral Agent”).

RECITALS

	(A)	 	The Credit Agreement (as defined below) has been entered into under which the Facility (as
defined below) may be provided to Reynolds Group Holdings Inc., Reynolds Consumer Products
Holdings Inc., SIG Euro Holding AG & Co. KGaA, SIG Austria Holding GmbH, Closure Systems
International Holdings Inc. and Closure Systems International B.V. and certain other parties.
The Grantor is a guarantor under the Credit Agreement.
	 
	(B)	 	The Senior Secured Note Indenture (as defined below) has been entered into in respect of
which the Grantor is a guarantor.
	 
	(C)	 	It is a condition subsequent of entry into and/or continuing of the Loan Documents (as
defined below) (which include the Credit Agreement and the Senior Secured Note Indenture) that
the Grantor enters into this Agreement in order to secure the discharge of the Obligations (as
defined below).
	 
	(D)	 	The Grantor agrees to grant in favour of the Collateral Agent a security interest in the
Collateral (as defined below) so that this Agreement shall constitute a security interest
agreement in accordance with the Law (as defined below) and the Loan Documents (as defined
below).

IT IS AGREED as follows:

	1	 	Definitions and Interpretation
	 
	1.1	 	Definitions

	 	 	In this Agreement, unless the context otherwise requires, the following words and
expressions shall have the meanings set out below:

	 	 	 	 

	 

	Account
	 	means the account of the Grantor described in
Schedule 1 and any sub-account of the Grantor
held in Guernsey (or such other account or
accounts held in Guernsey as may be established
by the Grantor in substitution for or in
addition to it)
	 
	 	 	 
	 

	Account Balance
	 	means all sums at any time and from time to time
standing to the credit of an Account and
includes all interest accrued or accruing in the
future and any

-3-

 

	 	 	 	 	 

	 

	 	 	 	monies of the Grantor held with
the Deposit Bank (however described, designated
or numbered) which derive in whole or in part
from an Account or from any sum at any time
standing to the credit of an Account
	 
	 	 	 	 
	 

	 	Acknowledgment
	 	means the acknowledgement to be given to the
Collateral Agent by the Deposit Bank
substantially in the form set out in Schedule 3
	 
	 	 	 	 
	 

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

	 	Additional Collateral
Agent’s Fee Letter
	 	means the fee letter dated 20 January 2010 among
the Collateral Agent and Reynolds Group Holdings
Limited as amended, novated, supplemented,
restated or modified from time to time.
	 
	 	 	 	 
	 

	 	Agreed Security Principles
	 	has the meaning it is given in the Credit
Agreement and the Senior Secured Note Indenture
and to the extent of any inconsistency the
meaning it is given in the Credit Agreement
shall prevail
	 
	 	 	 	 
	 

	 	Amendment No. 1 and
Joinder Agreement
	 	means the joinder agreement dated 21 January
2010 made among (amongst others) the Collateral
Agent, The Bank of New York Mellon, Credit
Suisse AG and Reynolds Group Holdings Limited
pursuant to which the Collateral Agent is
appointed an additional collateral agent and
becomes party to the First Lien Intercreditor
Agreement
	 
	 	 	 	 
	 

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

	 	Borrowers
	 	means the “Borrowers” under or as defined in the
Credit Agreement from time to time
	 
	 	 	 	 
	 

	 	Business Day
	 	means any day (other than a Saturday, Sunday or
bank holiday) on which banks are open in New
York. London and Guernsey for normal banking
business
	 
	 	 	 	 
	 

	 	Collateral
	 	means the Account and Account Balance and all
other income, monies, interest and rights from
or incidental to the Account or Account Balance
from time to time
	 
	 	 	 	 
	 

	 	Companies Law
	 	means The Companies (Guernsey) Law,
2008 (as amended)
	 
	 	 	 	 
	 

	 	Credit Agreement
	 	means the credit agreement dated 5 November
2009, among Reynolds Group Holdings Inc.,
Reynolds Consumer Products Holdings Inc.,
Closure Systems International Holdings Inc.,
Closure Systems International B.V., SIG Euro
Holding AG & Co. KGaA and SIG Austria Holding
GmbH as borrowers, Reynolds Group Holdings
Limited, the lenders from

-4-

 

	 	 	 	 	 

	 

	 	 	 	time to time party
thereto and Credit Suisse AG (formerly known as
Credit Suisse) as administrative agent, as
amended, extended, restructured, renewed,
novated, supplemented, restated, refunded,
replaced or modified from time to time
	 
	 	 	 	 
	 

	 	Deposit Bank
	 	means Barclays Private Clients International,
details of which are set out in Schedule 1
	 
	 	 	 	 
	 

	 	Encumbrance
	 	means any “Lien” under and as defined in the
First Lien Intercreditor Agreement, other than
the security interest created pursuant to this
Agreement
	 
	 	 	 	 
	 

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

	 	Facility
	 	means the time, credit or banking facilities
provided to the Borrowers from time to time
under the Credit Agreement
	 
	 	 	 	 
	 

	 	First Lien Intercreditor

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

	 	Future Account
	 	means all future accounts of the Grantor held in
Guernsey which as at the date of the Agreement
have not yet been established and any
sub-accounts of the Grantor held in Guernsey (or
such other account or accounts held in Guernsey
as may be established by the Grantor in
substitution for or in addition to it)
	 
	 	 	 	 
	 

	 	Future Account Balance
	 	means all monies from time to time standing to
the credit of the Future Account(s) including
all accrued interest
	 
	 	 	 	 
	 

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

	 	Issuers
	 	means the “Issuers” under, and as defined in,
the Senior Secured Note Indenture, including
their

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	 	 	 	successors in interest
	 
	 	 	 	 
	 

	 	Law
	 	means the Security Interests (Guernsey) Law, 1993
	 
	 	 	 	 
	 

	 	Lien
	 	has the meaning given to that term in the First
Lien Intercreditor Agreement
	 
	 	 	 	 
	 

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

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

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

	 	Notice
	 	means the notice to be given to third parties
substantially in the form set out in Schedule 2
	 
	 	 	 	 
	 

	 	Obligations
	 	means all present and future obligations and
liabilities (whether actual or contingent and
whether owed jointly or severally or in any
other capacity whatsoever) of each Loan Party
and each grantor of a security interest to the
Secured Parties (or any of them) under each or
any of the Loan Documents, together with all
costs, charges and expenses incurred by any
Secured Party in connection with the protection,
preservation or enforcement of its respective
rights under the Loan Documents or any other
document evidencing or securing any such
liabilities
	 
	 	 	 	 
	 

	 	Principal Finance
Documents
	 	means the Credit Agreement, the Senior Secured
Note Indenture, the Intercreditor Arrangements
and any Additional Agreement
	 
	 	 	 	 
	 

	 	Required Currency
	 	means the currency or currencies in which the
Obligations are expressed from time to time
	 
	 	 	 	 
	 

	 	Secured Parties
	 	means the “Secured Parties” under, and as
defined in, the First Lien Intercreditor
Agreement
	 
	 	 	 	 
	 

	 	Security Documents
	 	means the “Security Documents” under, and as
defined in, the First Lien Intercreditor
Agreement
	 
	 	 	 	 
	 

	 	Security Period
	 	means the period commencing on the date of this
Agreement and terminating on the date upon which
the security constituted by this Agreement is
released in accordance with Clause 6 of this
Agreement
	 
	 	 	 	 
	 

	 	Senior Secured Note
Indenture
	 	means the Indenture dated 5 November, 2009 among
the Issuers, the Note Guarantors (as defined
therein) and The Bank of New York Mellon as
trustee,

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	 	 	 	principal paying agent, transfer agent
and registrar, as amended, extended,
restructured, renewed, novated, supplemented,
restated, refunded, replaced or modified from
time to time
	 
	 	 	 	 
	 

	 	Supplemental SIA
	 	means the supplemental security interest
agreement letter substantially in the form set
out in Schedule 4

	1.2	 	Interpretation

	 	1.2.1	 	Headings in this Agreement are inserted for convenience only and shall be
ignored in construing this Agreement.
	 
	 	1.2.2	 	Unless the context otherwise requires, words (including definitions) denoting
the singular number only shall include the plural and vice versa.
	 
	 	1.2.3	 	References to “this Agreement”, a “Clause” or a “Schedule” are references to
this agreement or a clause in or schedule of it.
	 
	 	1.2.4	 	References to laws, ordinances, statutes and/or statutory provisions shall be
construed as referring to such laws, ordinances, statutes or statutory provisions as
respectively replaced amended extended or consolidated.
	 
	 	1.2.5	 	References to any document shall be construed as a reference to such document
as the same may be amended, extended, restructured, renewed, novated, supplemented,
restated, refunded, replaced or modified from time to time.
	 
	 	1.2.6	 	References to the “Collateral Agent” or the “Grantor” shall include a
reference to any successor, permitted transferee and permitted assign.
	 
	 	1.2.7	 	References to a “party” shall mean a party to this Agreement.
	 
	 	1.2.8	 	The expression “person” shall be construed to include references to any
person, firm, company, partnership, corporation or any agency of them.
	 
	 	1.2.9	 	The Grantor shall be the “debtor”, the Collateral Agent shall be the “secured
party” and an Enforcement Event which is continuing shall be the “events of default”
for the purposes of the Law.
	 
	 	1.2.10	 	Unless defined in this Agreement or the context otherwise requires, a term defined in
the First Lien Intercreditor Agreement has the same meaning in this Agreement and in
any notice given under this Agreement.

	1.3	 	The Grantor acknowledges and agrees that the Collateral Agent’s actions under this Agreement
are on the basis of authority conferred under the Principal Finance Documents to which the
Collateral Agent is a party, and on directions of the Applicable Representative. In so
acting, the Collateral Agent shall have, subject to the terms of the Principal Finance
Documents, the protections, immunities, rights, indemnities and benefits conferred on the
collateral agent under the Principal Finance Documents.
	 
	1.4	 	For the avoidance of doubt, it is acknowledged that the Collateral Agent is permitted to act
on the instructions of the Applicable Representative in accordance with Clause 

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	 	 	2.02(a)(i) of
the First Lien Intercreditor Agreement. It is further acknowledged that the Collateral Agent
may assume that any and all instructions received by it from the Applicable Representative
under this Agreement are reasonable, and that any question
as to the reasonableness or
otherwise of such instructions
shall be determined as between
the Applicable Representative and
the Grantor.

	2	 	Security

	2.1	 	In consideration of the borrowings under the Loan Documents and for the purpose of securing
the discharge of the Obligations, the Grantor as beneficial owner of the Collateral hereby:

	 	2.1.1	 	assigns to and charges in favour of the Collateral Agent all its rights, title
and interest in and the benefit of the Collateral in order to create a security
interest in or over it in accordance with the Law, subject to obtaining any and all
necessary consents to that assignment; and
	 
	 	2.1.2	 	abandons, subject to Clause 2.7 and except as may be permitted by this
Agreement or any Loan Document, in favour of the Collateral Agent during the
continuance of this Agreement all its rights or authority which the Grantor may have
over the Collateral, including but not limited to the right to withdraw or transfer
monies from the Account,

	 	 	to create a security interest in the Collateral in favour of the Collateral Agent in
accordance with the Law.

	2.2	 	The Grantor agrees that the security created over all rights, title and interest in and the
benefit of the Collateral pursuant to this Agreement constitutes continuing security for the
payment, performance and discharge of the Obligations and that, subject to the Legal
Reservations (as defined in the Credit Agreement) and any Liens permitted under sub-section
6.02(u) of the Credit Agreement and any equivalent Liens under the Loan Documents, the
Collateral Agent shall have a first priority security interest over the Collateral in
accordance with the Law and this Agreement.
	 
	2.3	 	Until the payment, performance and discharge of the Obligations, the obligations of the
Grantor under this Agreement and the security created pursuant to this Agreement shall not be
discharged, impaired or otherwise affected by;

	 	2.3.1	 	any time, waiver or consent granted to, or composition with, any Loan Party or
other person;
	 
	 	2.3.2	 	the release of any Loan Party or any other person under the terms of any
composition or arrangement with any creditor of any member of the Group;
	 
	 	2.3.3	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or security over assets
of, any Loan Party or other person or any non-presentation or non-observance of any
formality or other requirement in respect of any instrument or any failure to realise
the full value of any security;
	 
	 	2.3.4	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of any Loan Party or any other person;
	 
	 	2.3.5	 	any amendment, novation, supplement, extension (whether of maturity or
otherwise) or restatement (in each case however fundamental and of 

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	 	 	 	whatsoever nature,
and whether or not more onerous) or replacement of a Loan Document or any other
document or security or of the Obligations;

	 	2.3.6	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Loan Documents or any other document or security or of the Obligations; or
	 
	 	2.3.7	 	any insolvency or similar proceedings, including, as a matter of Guernsey law,
a declaration of désastre or the granting of a preliminary vesting order.

	2.4	 	The creation of the security interest pursuant to Clause 2.1 is in addition to, and shall not
affect, the Collateral Agent’s other rights under or pursuant to this Agreement.
	 
	2.5	 	The Grantor shall, upon the date of execution of this Agreement, provided that the Notice has
been signed by the Collateral Agent, countersign the Notice and shall use reasonable
endeavours to procure that the Deposit Bank executes and delivers the Acknowledgment to the
Collateral Agent.
	 
	2.6	 	The assignment and security interest made and given by this Agreement shall affect, and the
Account and the Collateral shall include, any accounts or money substituted for or added to it
from time to time and the expressions “Account” and “Collateral” shall be construed
accordingly.
	 
	2.7	 	The Grantor agrees that, if for any reason the Account is redesignated or renumbered, all of
the terms of this Agreement shall apply to the redesignated or renumbered account as if all
sums at any time standing to the credit of the redesignated or renumbered account form part of
the Collateral.
	 
	2.8	 	Unless an Enforcement Event has occurred and is continuing, the parties agree that the
Grantor may from time to time pay into, receive, withdraw or otherwise transfer sums standing
to the credit of an Account or any Future Account and deposit, dispose of, close or otherwise
deal with an Account, any Future Account or the Collateral and exercise all rights and powers
in respect of an Account, any Future Account or the Collateral as permitted in accordance with
the provisions of the Principal Finance Documents.
	 
	2.9	 	If an Enforcement Event has occurred and is continuing all sums standing to the credit of the
Account and all sums which the Collateral Agent or the Grantor is obliged under the terms of
this Agreement to pay into the Account may be applied by the Collateral Agent at such time and
in such manner in accordance with the provisions of the Intercreditor Arrangements.

	3	 	 Warranties

	 	 	The Grantor represents and warrants to the Collateral Agent on and as at the date of
this Agreement, with reference to the facts and circumstances then existing and subject to
the provisions of the Principal Finance Documents and the Intercreditor Arrangements that:

	3.1	 	the Account represents all bank accounts held by the Grantor in Guernsey; and
	 
	3.2	 	subject to any Liens permitted under sub-section 6.02(u) of the Credit Agreement, the
Collateral is its own absolute beneficial property free from any Encumbrance.

	4	 	Covenants

	 	 	Subject to the Agreed Security Principles, the Grantor covenants and undertakes to
the 

-9-

 

	 	 	Collateral Agent, so that the same shall be continuing covenants and undertakings
throughout the Security Period, that:

	4.1	 	if an Enforcement Event has occurred and is continuing, it will send to the Collateral
Agent promptly upon request from the Collateral Agent copies of all statements, orders,
notices given in connection with the Account by the relevant bank and will provide to the
Collateral Agent such other information in relation to the Account which the Collateral
Agent may from time to time request (upon the reasonable instruction of the Applicable
Representative);
	 
	4.2	 	if Future Accounts are established it will promptly notify the Collateral Agent of the same
and execute a Supplemental SIA to the intent that a security interest will be created in such
Future Accounts and the related Future Account Balances upon entering into the Supplemental
SIA and service of the Notice on the third party bank by the Collateral Agent;
	 
	4.3	 	it will use best endeavours to prevent any person (other than the Collateral Agent, any
Secured Party or the Grantor) from becoming entitled to claim any right over the Collateral or
any part of it, unless such claim is permitted by the Principal Finance Documents and except
for any rights of the Deposit Bank or any other person with whom an Account or Future Account
is held; and
	 
	4.4	 	it will confirm or protect its interest in the Collateral, to the extent set out in Section
5.12 (Further Assurances) of the Credit Agreement.

	5	 	Enforcement Event

	5.1	 	Without prejudice and in addition to any of the rights of the Collateral Agent under the Law,
(after the occurrence of an Enforcement Event which is continuing) if an Enforcement Event has
occurred and is continuing, the Collateral Agent may (upon the instruction of the Applicable
Representative) enforce the security granted by this Agreement, following delivery of the
required notice under the Law.

	5.2	 	If an Enforcement Event has occurred and is continuing and provided the Collateral Agent has
served notice in accordance with Clause 5.1, the Grantor authorises and instructs the
Collateral Agent to deal with the Collateral in its own discretion as it sees fit in
accordance with the Intercreditor Arrangements without any reference to or further authority
from the Grantor and without any enquiry by the Grantor as to the justification for the
Collateral Agent’s actions.

	6	 	Release of Security

	6.1	 	The security interest created pursuant to this Agreement shall continue in full force and
effect until it shall be released, re-assigned, re-transferred and cancelled:

	 	6.1.1	 	by the Collateral Agent (acting on the instructions of the Applicable
Representative) at the request and cost of the Grantor, upon the Obligations being
irrevocably paid or discharged in full and none of the Secured Parties being under any
further actual or contingent obligation to make advances or provide other financial
accommodation to the Grantor or any other person under any of the Loan Documents; or
	 
	 	6.1.2	 	in accordance with, and to the extent required by, the Intercreditor
Arrangements (to the extent it is possible to give effect to such arrangements under
Guernsey law).

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	6.2	 	Upon the discharge of the security interest created pursuant to this Agreement the Collateral
Agent shall at the Grantor’s cost:

	 	6.2.1	 	furnish to the Grantor a completed certificate of discharge in the form
prescribed by the Law;
	 
	 	6.2.2	 	re-assign or re-transfer the Collateral to the Grantor or to such person as
the Grantor may direct and give notice to the third party bank accordingly; and
	 
	 	6.2.3	 	do all such acts which are reasonably requested by the Grantor in order to
release, re-assign, re-transfer and cancel the security interest constituted by this
Agreement.

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

	7	 	Exchange Rate

	 	 	The Collateral Agent may exchange or convert to the Required Currency any currency
held or received by it from the Grantor in accordance with the terms of the Principal
Finance Documents.

	8	 	Power of Attorney

	8.1	 	The Grantor by way of security irrevocably appoints the Collateral Agent to be its attorney
(with full power of substitution and delegation) in its name and on its behalf and as its act
and deed to execute, deliver and perfect all documents and do all things which the attorney
may consider to be required or desirable for:

	 	8.1.1	 	carrying out any obligation imposed on the Grantor by this Agreement or any
other agreement binding on the Grantor in relation to the Collateral to which the
Collateral Agent is a party (including the execution and delivery of any deeds,
charges, assignments or other security and any transfers of the Collateral);
	 
	 	8.1.2	 	enabling the Collateral Agent to exercise, or delegate the exercise of, all or
any of its rights under or pursuant to this Agreement or by law; and
	 
	 	8.1.3	 	enabling any person delegated by the Collateral Agent to exercise, or delegate
the exercise of any of the rights, powers and authorities conferred on them by or
pursuant to this Agreement or by law,

	 	 	provided always that the Collateral Agent may only be entitled to exercise the powers
conferred upon it by the Grantor under this Clause 8.1 if:

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

	(ii)	 	in respect of further assurance obligations or any action relating to the perfection of
the 

-11-

 

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

	 	 	provided further that the Collateral Agent shall not be obliged to exercise the powers
conferred upon it by the Grantor under this Clause 8.1 unless and until it shall have been
(a) instructed to do so by the Applicable Representative and (b) indemnified and/or secured
and/or prefunded to its satisfaction.

	8.2	 	The Grantor shall ratify and confirm all things lawfully done and all documents properly
executed by the Collateral Agent or any person properly delegated by it as an attorney in the
exercise or purported exercise of all or any of the powers hereby granted.

	9	 	Appropriation

	9.1	 	Subject to Clause 9.2 and if an Enforcement Event has occurred and is continuing the
Collateral Agent may appropriate all payments received in respect of the Collateral for the
account of the Grantor in reduction of any part of the Obligations in accordance with the
Intercreditor Arrangements.

	9.2	 	The Collateral Agent may open a new account or accounts if the Collateral Agent receives
actual or constructive notice of any charge or interest affecting the Collateral, unless such
charge or interest is permitted under the Principal Finance Documents. Whether or not the
Collateral Agent opens any such account no payment received by the Collateral Agent after
receiving such notice shall (if followed by any payment out of or debit to the relevant
account other than for the purpose of satisfying the Obligations) be appropriated towards or
have the effect of discharging any part of the Obligations outstanding at the time of
receiving such notice, unless such notice is in respect of a charge or interest permitted
under the Principal Finance Documents.

	10	 	Preservation of other Security and Rights and Further Assurance

	10.1	 	This security is in addition to any other security present or future held by the Collateral
Agent for the Obligations and shall not merge with or prejudice such other security or any
contractual or legal rights of the Collateral Agent.

	10.2	 	The security created by this Agreement shall not be affected by any other security held by
the Collateral Agent in respect of the Obligations being void or unenforceable.

	10.3	 	Subject to the Agreed Security Principles, the Grantor shall at its own cost and at the
Collateral Agent’s request (acting on the reasonable instructions of the Applicable
Representative), execute or procure the execution of, any agreement, deed or document and take
any action required by the Collateral Agent, in each case to protect or preserve the security
created by this Agreement over the Collateral.

	11	 	Credit Agreement Warranties

	 	 	The Grantor hereby warrants and represents to the Collateral Agent that, on and as at the
date of this Agreement with reference to the facts and circumstances then existing and
subject to the provisions of the Principal Finance Documents and the Intercreditor
Arrangements, the representations and warranties made by the Grantor as Loan Party in
Section 3.01 (Organisation; Powers), Section 3.02 (Authorization), Section 3.03
(Enforceability), Section 3.06 (No Material Adverse Change), Section 3.07 (Title to

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	 	 	Properties; Possession Under Leases), Section 3.09 (Litigation; Compliance with Laws),
Section 3.10 (Agreements), Section 3.19 (Security Documents) and Section 3.22 (Solvency) of
the Credit Agreement are true and accurate as regards the Grantor and this Agreement.

	12	 	Creation of a Suspense Account

	 	 	All monies received, recovered or realised by the Collateral Agent under this Agreement may,
at the discretion of the Collateral Agent (acting on the instructions of the Applicable
Representative), be credited to an interest bearing separate or suspense account for so long
as the Collateral Agent may think fit without any intermediate obligation on the part of the
Collateral Agent to apply such monies in or towards payment and discharge of the
Obligations.

	13	 	Assignment

	13.1	 	The Collateral Agent may assign and transfer all or any part of its rights and obligations
under this Agreement in accordance with the Principal Finance Documents and the expression
“Collateral Agent” wherever used in this Agreement shall be deemed to include any such
assignees and other successors permitted under the Principal Finance Documents, whether
immediate or derivative, of the Collateral Agent, who shall be entitled to enforce and proceed
upon this Agreement in the same manner as if named in this Agreement.

	13.2	 	The Grantor shall not assign or otherwise transfer all or any of its rights, benefits or
obligations arising under this Agreement unless otherwise permitted by the Principal Finance
Documents.

	14	 	Notices

	14.1	 	For the purposes of section 13 of the Law, any notice or demand by the Collateral Agent or
the Grantor shall be made or given in accordance with Section 5.01 of the First Lien
Intercreditor Agreement or may effectually be made by notice in writing to the Grantor served
in accordance with Section 13 of the Law.

	14.2	 	For the avoidance of doubt, the parties to this Agreement agree that any notice of default
required to be given pursuant to Section 7(3) of the Law shall be deemed to have been received
by the Grantor if delivered in accordance with Clause 14.1 above.

	15	 	Costs and Expenses

	 	 	The parties agree that the Additional Collateral Agent’s Fee Letter and Section 9.05(a) of
the Credit Agreement shall apply to this Agreement as regards the Grantor and this
Agreement.

	16	 	Delegation

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

	17	 	Indemnity

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

	18	 	No liability

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

	19	 	Droit de Discussion and Droit de Division

	 	 	The Grantor abandons all and every right which it may have at any time under any existing or
future Guernsey law including, but not limited to the “droit de discussion” and the “droit
de division” or otherwise to require that recourse be had to the assets of some other person
nor shall the Grantor be entitled to require that any other person be made a party to any
legal proceedings brought by the Collateral Agent, or to require that any liability of the
Grantor be divided or apportioned amongst any other persons or reduced in any manner
whatsoever, whether the formalities required by Guernsey law, in regard to the rights or
obligations of sureties shall or shall not have been observed.

	20	 	General

	20.1	 	The rights and remedies provided in this Agreement are cumulative and are not exclusive of
any rights or remedies provided by law or to which the Collateral Agent may otherwise be
entitled.

	20.2	 	No failure on the part of the Collateral Agent to exercise and no delay on its part in
exercising any right or remedy under this Agreement will operate as a waiver of it, nor will
any single or partial exercise of any right or remedy preclude any other or further exercise
of it or any other right or remedy.

	20.3	 	With the exception of any action permitted under this Agreement, any waiver or consent by the
Collateral Agent under this Agreement must be in writing and may be given subject to any
conditions thought fit by the Collateral Agent acting reasonably. Unless otherwise stated, any
waiver or consent shall be effective for the period and for the purpose for which it is given.

	20.4	 	Any liberty or power which may be exercised or any determination which may be made under this
Agreement by the Collateral Agent may, subject to any terms of this Agreement to the contrary,
be exercised or made in the absolute and unfettered discretion of the Collateral Agent.

	20.5	 	This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, personal representatives, executors, administrators, successors, permitted
transferees and permitted assigns as provided in this Agreement.

	20.6	 	The security interests created under this Agreement shall remain binding on the Grantor
notwithstanding any amalgamation, re-construction, re-organisation, merger,

-14-

 

	 	 	sale, liquidation,
administration or transfer by or involving the Collateral Agent or its assets unless such
security interests are released, re-assigned, re-transferred or cancelled in accordance with
Clause 6 of this Agreement.

	20.7	 	Nothing in this Agreement and no action taken by the parties pursuant to this Agreement shall
constitute, or be deemed to constitute, the parties a partnership, association, joint venture
or other co-operative entity.

	20.8	 	Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to only the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Agreement, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

	20.9	 	This Agreement is subject to the terms of the Intercreditor Arrangements. In the event of a
conflict between the terms of this Agreement and the Intercreditor Arrangements, the terms of
the Intercreditor Arrangements will prevail.

	20.10	 	The Collateral Agent shall be entitled to impart any information concerning the Grantor in
respect of the Collateral to the extent permitted by the terms of the Principal Finance
Documents and this Agreement.

	20.11	 	This Agreement may be executed in any number of counterparts. All the counterparts shall
together constitute a single instrument.

	21	 	Governing Law and Jurisdiction

	21.1	 	This Agreement shall be governed by and construed in accordance with the laws of the Island
of Guernsey.

	21.2	 	For the benefit of the Collateral Agent the Grantor irrevocably submits to the jurisdiction
of the Guernsey courts and the Grantor irrevocably agrees that a judgment in any proceedings
in connection with this Agreement by the Guernsey courts shall be conclusive and binding upon
the Grantor and may be enforced against the Grantor in the courts of any other jurisdiction.
The Collateral Agent shall also be entitled to take proceedings in connection with this
Agreement against the Grantor in the courts of any country in which the Grantor has assets or
in any other courts of competent jurisdiction.

	21.3	 	The Grantor waives:

	 	21.3.1	 	any objection which the Grantor may now or in the future have to the Guernsey courts
or other courts referred to in Clause 21.2 as a venue for any proceedings in connection
with this Agreement; and
	 
	 	21.3.2	 	any claim which the Grantor may now or in the future be able to make that any
proceedings in the Guernsey courts or other courts referred to in Clause 21.2 have been
instituted in an inappropriate forum.

-15-

 

IN WITNESS OF WHICH this Agreement has been duly executed the day and year first above written.

	 	 	 	 	 
	SIGNED BY

for and on behalf of

 	 	 
	/s/ Philip West
 	 	 
	Philip West 	 	 
	Authorized Signatory 	 	 
	 
	SIG ASSET HOLDINGS LIMITED

SIGNED BY

for and on behalf of

 	 
	/s/ Elaine Lockhart
 	 	 
	Elaine Lockhart 	 
	 	 	 
	WILMINGTON TRUST (LONDON) LIMITED

 	 
	 	 	 
	 	 	 
	 	 	 

-16-

 

	 	 	 	 	 

SCHEDULE 1

The Account

	 	 	 

	Bank:

	 	Barclays Private Clients International
	Branch:

	 	St Peter Port, Guernsey
	IBAN No:

	 	GB91 BARC 203532[________]
	Account Name:

	 	SIG Asset Holdings Limited
	Sort Code:

	 	20-35-32
	Account Number:

	 	[________]
	Swift:

	 	BARCGB22

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SCHEDULE 2

Form of Notice

[Letterhead of Collateral Agent]

	 	 	 

	To:

	 	Barclays Private Clients International

Le Marchant House

Le Truchot

St Peter Port

Guernsey

GY1 3BE

Date:

Dear Sirs

Account Number: [__________] (Designated as SIG Asset Holdings Limited (the “Account Holder”) (the
“Account”)

We, Wilmington Trust (London) Limited (“Collateral Agent”), refer to the above Account maintained
by you at your branch (sort code: 20-35-32) (referred to as the “Account” which expression shall
include all and any monies standing to the credit of the same from time to time and any sub-account
of the Account Holder held in Guernsey (or such other account or accounts held in Guernsey as may
be established by the Account Holder in substitution of it or in addition to it)).

We hereby give you notice that the Account Holder has assigned (subject to obtaining any and all
necessary consents to that assignment) all its rights, title and interest in and the benefit of the
Account to the Collateral Agent pursuant to a Guernsey law security interest agreement dated
[•] 2010 and made between the Collateral Agent and the Account Holder (“Agreement”).

If an Enforcement Event (as defined in the Agreement) has occurred and is continuing and provided
that a notice specifying the particular Enforcement Event has been provided to you in accordance
with the Agreement, you are authorised and instructed to accept any written notice or instructions
to you from the Collateral Agent relating to the Account without any reference to or further
authority from us or the Account Holder and without any enquiry by you as to the justification for
the disclosure or, as the case may be, validity of the notice or instructions and as if such demand
or other communication had been made by the Account Holder and to pay any amounts standing to the
credit of the Account to such account at such bank as the Collateral Agent may from time to time
specify and otherwise comply with the directions of the Collateral Agent in relation to the
Account.

In relation to the Account, should the Collateral Agent advise you in writing that an Enforcement
Event (as defined in the Agreement) has occurred and is continuing, you will be responsible to make
the Account into a blocked account. When the Collateral Agent gives you such written notification,
at no time from the time of notification until the time you have been advised by the Collateral
Agent in writing to the contrary, may the Account Holder be given access to the Account.

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For the avoidance of doubt, unless and until you receive notice from the Collateral Agent that an
Enforcement Event has occurred and is continuing, the Account shall be operated as normal in
accordance with the account mandate that currently exists.

This notice may not be amended, varied, terminated or withdrawn without the Collateral Agent’s
express prior written consent or until the Account has been released from the security constituted
by the Agreement in accordance with the terms of the Agreement.

Would you please acknowledge receipt of this notice to the Collateral Agent on the enclosed
duplicate of this notice confirming in accordance with the terms of such acknowledgement that you
waive all rights and interests (including, in particular, rights of set-off and rights to combine
accounts) in relation to the Account.

This notice is governed by and construed in accordance with the laws of the Island of Guernsey.

Yours faithfully

duly authorised

for and on behalf of

WILMINGTON TRUST (LONDON) LIMITED

We confirm the above instructions to Barclays Private Clients International

 

for and on behalf of

SIG Asset Holdings Limited

Date:             2010

-19-

 

SCHEDULE 3

Form of Acknowledgment

[Letterhead of Barclays Private Clients International]

	 	 	 

	To:

	 	Wilmington Trust (London) Limited

6 Broad Street Place

London EC2M 7JH

United Kingdom

Attention: Elaine Lockhart

Date:

Dear Sirs

Account Number: [__________] (Designated as SIG Asset Holdings Limited (the “Account Holder”) (the
“Account”)

We hereby acknowledge and confirm our agreement to the terms of your letter dated
[•] (“Notice”) of which the above is a copy and further confirm that:

	1	 	we accept the instructions contained in the notice and agree to comply with the notice to the
extent permitted by law;
	 
	2	 	we have not received notice of the interest of any third party;
	 
	3	 	all and any of our rights or interest in or to the Account (including, without limitation,
rights of set-off and rights to combine accounts) are hereby waived unless and until you
notify us that the Account has been released from the security constituted by the Agreement
save to the extent of any costs and expenses we may incur by reason of any dispute regarding
the Accounts and/or any account charges or other charges in respect of the maintenance and
operation of the Accounts, for which the Account Holder shall be separately liable to
indemnify us; and
	 
	4	 	we hereby waive any restriction on transfer, assignment or charging contained in the terms
and conditions or otherwise in relation to the Account.

This acknowledgement is governed by and construed in accordance with the laws of the Island of
Guernsey.

Yours faithfully

 

duly authorised

for and on behalf of

Barclays Private Clients International

-20-

 

SCHEDULE 4

Form of Supplemental SIA

	 	 	 

	To:

	 	Wilmington Trust (London) Limited

6 Broad Street Place

London EC2M 7JH

United Kingdom

Attention: Elaine Lockhart

Date:

Dear Sirs

Security
Interest Agreement Over Third Party Bank Accounts dated [ • ] 2010 (the “Agreement”)

	1.	 	This letter is supplemental to the Agreement (the “Supplemental SIA”).
	 
	2.	 	Terms not defined in this Supplemental SIA shall have the same meaning (in so far as the
context allows) as in the Agreement. To the extent applicable, all terms of the Agreement are
hereby incorporated into this Supplemental SIA.
	 
	3.	 	This Supplemental SIA hereby amends the definition of:
	 
	 	 	“Account” to mean ‘(i) the account of the Grantor described in Schedule 1 and any
sub-account of the Grantor held in Guernsey (or such other account or accounts held in
Guernsey as may be established by the Grantor in substitution for or in addition to it); and
(ii) the Future Account(s) listed in Schedule A to the Supplemental SIA dated [insert date
of the Supplemental SIA] and any sub-account of the Grantor held in Guernsey (or such other
account or accounts held in Guernsey as may be established by the Grantor in substitution
for or in addition to it).
	 
	4.	 	For the avoidance of doubt, this Supplemental SIA does not: (i) create any further security
interest in the Account or Account Balance; (ii) in any way amend or affect the priority date
of the security interest created in the Account or Account Balance under the Agreement; (iii)
create any further security interest in any Future Account(s) (if any) or Future Account
Balances (if appropriate) created under a previous Supplemental SIA (if any); or (iv) in any
way amend or affect the priority date of the security interest created in any Future
Account(s) (if any) or Future Account Balances (if appropriate) created under a previous
Supplemental SIA (if any).
	 
	5.	 	As anticipated under the Agreement, the Grantor has established the Future 

-21-

 

	 	 	Account(s) listed
in Schedule A to this Supplemental SIA. The Grantor hereby acknowledges that
the security created pursuant to this Supplemental SIA constitutes a continuing security for
the payment of the Obligations.

	6.	 	As required by clause 2.1 of the Agreement, the Grantor as beneficial owner of the Future
Account(s) listed in Schedule A to this Supplemental SIA and the related Future Account
Balances hereby:

	 	6.1	 	assigns to and charges in favour of the Collateral Agent all its rights, title
and interest in and the benefit of the Future Account(s) listed in Schedule A of this
Supplemental SIA and any related Future Account Balances, subject to obtaining any and
all necessary consents to that assignment; and
	 
	 	6.2	 	abandons, subject to Clause 2.7 of the Agreement and except as may be permitted
by this Supplemental SIA, the Agreement or any Loan Document, in favour of the
Collateral Agent during the continuance of this Supplemental SIA all its rights or
authority which the Grantor may have over the Future Account(s) set out in Schedule A
of this Supplemental SIA or any related Future Account Balances.
	 
	 	 	 	to create a security interest in the Future Account(s) set out in Schedule A of this
Supplemental SIA and any related Future Account Balances in favour of the Collateral Agent
in accordance with the Law.

	7.	 	The Grantor shall, promptly upon the execution of this Supplemental SIA and provided that the
Notice has been signed by the Collateral Agent, countersign the Notice in substantially
similar form to that set out in Schedule 2 of the Agreement required to be delivered to any
third party in respect of the Future Account(s) set out in Schedule A of this Supplemental SIA
and any related Future Account Balances.

	8.	 	The Grantor repeats for the benefit of the Collateral Agent the warranties and undertakings
given at Clauses 3 and 11 of the Agreement as at the date of this Supplemental SIA to the
extent relating to the Grantor, this Supplemental SIA, the Future Account(s) set out in
Schedule A to the Supplemental SIA and any related Future Account Balances.

	9.	 	This Supplemental SIA amends Schedule 1 of the Agreement to clarify the scope of the
Accounts. The table set out as Schedule B to this Supplemental SIA hereby amends and replaces
Schedule 1 to the Agreement.

I would be grateful if you would sign and return a copy of this Supplemental SIA for our records.

Yours faithfully

 

For and on behalf of

SIG Asset Holdings Limited

-22-

 

Date: [       ]

We agree to the creation to a Security Interest in the Future Account(s) listed in Schedule A to
this Supplemental SIA and any related Future Account Balances and to the terms of this Supplemental
SIA.

For and on behalf of

Wilmington Trust (London) Limited

-23-

 

SCHEDULE A

List of Future Accounts

to be covered by this Supplemental SIA

Bank:

Branch:

IBSB No:

Account Name:

Account Number:

-24-

 

SCHEDULE B

Cash Account secured under the Agreement

Bank:

Branch:

IBSB No:

Account Name:

Account Number:

[Future
Account(s) previously secured under a Supplemental SIA dated [
• ]

Bank:

Branch:

IBSB No:

Account Name:

Account Number:]

Future
Account(s) secured under the Supplemental SIA dated [ • ]

Bank:

Branch:

IBSB No:

Account Name:

Account Number:

-25-

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