Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.53

GUARANTY

THIS
GUARANTY is made as of November 19, 2007 by each party named on the signature pages hereto
and the Additional Guarantors (as hereinafter defined) (such Persons so listed and the Additional
Guarantors individually and collectively herein called “Guarantor”) in favor of TCW ASSET
MANAGEMENT COMPANY, as administrative agent for Holders, as such term is defined in the Note
Purchase Agreement described below.

RECITALS:

1. Rio Vista Penny LLC, an Oklahoma limited liability company (“Company”), has
executed in favor of Holders those certain promissory notes dated of even date herewith, payable to
the order of Holders in the aggregate principal amount of $30,000,000 (such promissory notes, as
from time to time amended, and all promissory notes given in substitution, renewal or extension
therefor or thereof, in whole or in part, being herein collectively called the “Notes”).

2. The Notes were executed pursuant to a Note Purchase Agreement dated of even date herewith
(herein, as from time to time amended, supplemented or restated, called the “Note Purchase
Agreement”), by and among Company, Agent and Holders, pursuant to which Holders have agreed to
advance funds to Company under the Notes.

3. It is a condition precedent to Holders’ obligations to advance funds pursuant to the
Note Purchase Agreement that Guarantor shall execute and deliver to Agent a satisfactory
guaranty of Company’s obligations under the Notes and the Note Purchase Agreement.

4. Rio Vista ECO LLC, an Oklahoma limited liability company (“ECO”), owns all of the
outstanding equity interests of Company and GO (as each are defined below).

5. Rio
Vista GO LLC, an Oklahoma limited liability company (“GO”), has executed in favor of
Company that certain promissory note dated as of November 19, 2007, payable to the order of Company
in the aggregate principal amount of $2,200,000 (such promissory note, as from time to time
amended, and all promissory notes given in substitution, renewal or extension therefor or thereof,
in whole or in part, being herein collectively called the “GO Note”).

6. As part of the consideration of Company’s advancing funds under the GO Note to GO, GO
agreed to execute and deliver to Agent a satisfactory guaranty of Company’s obligations under the
Notes and the Note Purchase Agreement.

7. GO owns all of the outstanding equity interests of GO, LLC, an Oklahoma limited liability
company (“GO LLC”).

8. Company owns all of the outstanding equity interests of MV Pipeline Company, an Oklahoma
corporation (“MV”).

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9. Company, ECO, GO, GO LLC, MV, and the other direct and indirect subsidiaries of Company are
mutually dependent on each other in the conduct of their respective businesses under a holding
company structure, with the credit needed from time to time by each often being provided by another
or by means of financing obtained by one such affiliate with the support of the others for their
mutual benefit and the ability of each to obtain such financing being dependent on the successful
operations of the others.

10. Each Guarantor has determined that such Guarantor’s execution, delivery and performance of
this Guaranty may reasonably be expected to benefit such Guarantor, directly or indirectly, and are
in the best interests of such Guarantor.

NOW, THEREFORE, in consideration of the premises, of the benefits which will inure to each
Guarantor from Holders’ advances of funds to Company under the Note Purchase Agreement, and of Ten
Dollars and other good and valuable consideration, the receipt and sufficiency of all of which are
hereby acknowledged, and in order to induce Holders to advance funds under the Note Purchase
Agreement, each Guarantor hereby agrees with Agent, for the benefit of Agent and Holders as
follows:

AGREEMENTS:

Section 1. Definitions. Reference is hereby made to the Note Purchase Agreement for
all purposes. All terms used in this Guaranty which are defined in the Note Purchase Agreement and
not otherwise defined herein shall have the same meanings when used herein. All references herein
to any Obligation Document, Note Document, or other document or instrument refer to the same as
from time to time amended, supplemented or restated. As used herein the following terms shall have
the following meanings:

“Additional Guarantor” has the meaning given to such term in Section 11.

“Agent” means the Person who, at the time in question, is the “Administrative Agent”
under the Note Purchase Agreement.

“Holders” means all who at any time are “Holders” under the Note Purchase Agreement.

“Obligations” means collectively all of the indebtedness, obligations, and
undertakings which are guaranteed by each Guarantor and described in subsections (a) and (b) of
Section 2.

“Obligation Documents” means this Guaranty, the Notes, the Note Purchase Agreement,
the Note Documents, all other documents and instruments under, by reason of which, or pursuant to
which any or all of the Obligations are evidenced, governed, secured, or otherwise dealt with, and
all other documents, instruments, agreements, certificates, legal opinions and other writings
heretofore or hereafter delivered in connection herewith or therewith.

“Obligors” means Company, Guarantors and any other endorsers, guarantors or obligors,
primary or secondary, of any or all of the Obligations.

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“Security” means any rights, properties, or interests of Agent or Holders, under
the Obligation Documents or otherwise, which provide recourse or other benefits to Agent or
Holders in connection with the Obligations or the non-payment or non-performance thereof, including
collateral (whether real or personal, tangible or intangible) in which Agent or Holders have rights
under or pursuant to any Obligation Documents, guaranties of the payment or performance of any
Obligation, bonds, surety agreements, keep-well agreements, letters of credit, rights of
subrogation, rights of offset, and rights pursuant to which other claims are subordinated to the
Obligations.

Section 2. Guaranty.

(a) Each Guarantor hereby irrevocably, absolutely, and unconditionally guarantees to Agent
and each Holder the prompt, complete, and full payment when due, and no matter how the same shall
become due, of:

(i) the Notes, including all principal, all interest thereon and all other sums
payable thereunder;

(ii) all obligations or liabilities of any Obligor owing to Administrative Agent
or any Holder Party under the Security Documents;

(iii) all other sums payable under the other Note Documents, whether for
principal, interest, fees or otherwise; and

(iv) any and all other indebtedness or liabilities which may at any time be owed
to any Holder Party, whether incurred heretofore or hereafter or concurrently herewith,
voluntarily or involuntarily, whether owed alone or with others, whether fixed, contingent,
absolute, inchoate, liquidated or unliquidated, whether such liability arises by notes,
discounts, overdrafts, open account indebtedness or in any other manner whatsoever, and
including interest, attorneys’ fees and collection costs as may be provided by law or in any
instrument or agreement evidencing any such indebtedness or liability.

Without limiting the generality of the foregoing, each Guarantor’s liability hereunder shall extend
to and include all post-petition interest, expenses, and other duties and liabilities of Company
described above in this subsection (a), or below in the following subsection (b), which would be
owed by Company but for the fact that they are unenforceable or not allowable due to the existence
of a bankruptcy, reorganization, or similar proceeding involving Company.

(b) Each Guarantor hereby irrevocably, absolutely, and unconditionally guarantees to Agent and
each Holder the prompt, complete and full performance, when due, and no matter how the same shall
become due, of all obligations and undertakings of Company to Agent or such Holder under, by reason
of, or pursuant to any of the Obligation Documents.

(c) If Company shall for any reason fail to pay any Obligation, as and when such Obligation
shall become due and payable, whether at its stated maturity, as a result of the exercise of any
power to accelerate, or otherwise, each Guarantor will, upon demand by Agent, pay such Obligation
in full to Agent for the benefit of Agent or the Holder to whom such Obligation is owed. If Company
shall for any reason fail to perform promptly any Obligation, each Guarantor will, upon demand by
Agent, cause such Obligation to be performed or, if
specified by Agent, provide sufficient funds, in such amount and manner as Agent shall in good
faith determine, for the prompt, full and faithful performance of such Obligation by Agent or such
other Person as Agent shall designate.

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(d) If either Company or any Guarantor fail to pay or perform any Obligation as described in
the immediately preceding subsections (a), (b), or (c) each Guarantor will incur the additional
obligation to pay to Agent, and each Guarantor will forthwith upon demand by Agent pay to Agent,
the amount of any and all expenses, including fees and disbursements of Agent’s counsel and of any
experts or agents retained by Agent, which Agent may incur as a result of such failure.

(e) As between Guarantors and Agent or Holders, this Guaranty shall be considered a primary
and liquidated liability of each Guarantor.

(f) The liability of each Guarantor (other than ECO) hereunder shall be limited to the maximum
amount of liability that can be incurred without rendering this Guaranty, as it relates to such
Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer,
and not for any greater amount.

Section 3. Unconditional Guaranty.

(a) No action which Agent or any Holder may take or omit to take in connection with any
of the Obligation Documents, any of the Obligations (or any other indebtedness owing by Company to
Agent or any Holder), or any Security, and no course of dealing of Agent or any Holder with any
Obligor or any other Person, shall release or diminish any Guarantor’s obligations, liabilities,
agreements or duties hereunder, affect this Guaranty in any way, or afford any Guarantor any
recourse against Agent or any Holder, regardless of whether any such action or inaction may
increase any risks to or liabilities of Agent or any Holder or any Obligor or increase any risk to
or diminish any safeguard of any Security. Without limiting the foregoing, each Guarantor hereby
expressly agrees that Agent and Holders may, from time to time, without notice to or the consent of
any Guarantor, do any or all of the following:

(i) Amend, change or modify, in whole or in part, any one or more of the
Obligation Documents and give or refuse to give any waivers or other indulgences with
respect thereto.

(ii) Neglect, delay, fail, or refuse to take or prosecute any action for the
collection or enforcement of any of the Obligations, to foreclose or take or prosecute any
action in connection with any Security or Obligation Document, to bring suit against any
Obligor or any other Person, or to take any other action concerning the Obligations or the
Obligation Documents.

(iii) Accelerate, change, rearrange, extend, or renew the time, rate, terms, or
manner for payment or performance of any one or more of the Obligations (whether for
principal, interest, fees, expenses, indemnifications, affirmative or negative covenants, or
otherwise).

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(iv) Compromise or settle any unpaid or unperformed Obligation or any other
obligation or amount due or owing, or claimed to be due or owing, under any one or more of
the Obligation Documents.

(v) Take, exchange, amend, eliminate, surrender, release, or subordinate any or all
Security for any or all of the Obligations, accept additional or substituted Security
therefor, and perfect or fail to perfect Agent’s or Holders’ rights in any or all
Security.

(vi) Discharge, release, substitute or add Obligors.

(vii) Apply all monies received from Obligors or others, or from any Security for
any of the Obligations, as Agent or Holders may determine to be in their best interest,
without in any way being required to marshal Security or assets or to apply all or any part
of such monies upon any particular Obligations.

(b) No action or inaction of any Obligor or any other Person, and no change of law or
circumstances, shall release or diminish any Guarantor’s obligations, liabilities, agreements, or
duties hereunder, affect this Guaranty in any way, or afford any Guarantor any recourse against
Agent or any Holder. Without limiting the foregoing, the obligations, liabilities, agreements, and
duties of Guarantors under this Guaranty shall not be released, diminished, impaired, reduced, or
affected by the occurrence of any or all of the following from time to time, even if occurring
without notice to or without the consent of any Guarantor:

(i) Any voluntary or involuntary liquidation, dissolution, sale of all or
substantially all assets, marshalling of assets or liabilities, receivership,
conservatorship, assignment for the benefit of creditors, insolvency, bankruptcy,
reorganization, arrangement, or composition of any Obligor or any other proceedings
involving any Obligor or any of the assets of any Obligor under laws for the protection of
debtors, or any discharge, impairment, modification, release, or limitation of the liability
of, or stay of actions or lien enforcement proceedings against, any Obligor, any properties
of any Obligor, or the estate in bankruptcy of any Obligor in the course of or resulting
from any such proceedings.

(ii) The failure by Agent or any Holder to file or enforce a claim in any
proceeding described in the immediately preceding subsection (i) or to take any other action
in any proceeding to which any Obligor is a party.

(iii) The release by operation of law of any Obligor from any of the
Obligations or any other obligations to Agent or any Holder.

(iv) The invalidity, deficiency, illegality, or unenforceability of any of the
Obligations or the Obligation Documents, in whole or in part, any bar by any statute of
limitations or other law of recovery on any of the Obligations, or any defense or excuse for
failure to perform on account of force majeure, act of God, casualty, impossibility,
impracticability, or other defense or excuse whatsoever.

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(v) The failure of any Obligor or any other Person to sign any guaranty or other
instrument or agreement within the contemplation of any Obligor, Agent or any Holder.

(vi) The fact that Guarantors may have incurred directly part of the
Obligations or is otherwise primarily liable therefor.

(vii) Without limiting any of the foregoing, any fact or event (whether or not
similar to any of the foregoing) which in the absence of this provision would or might
constitute or afford a legal or equitable discharge or release of or defense to a guarantor
or surety other than the actual payment and performance by Guarantors under this Guaranty.

(c) Agent and Holders may invoke the benefits of this Guaranty before pursuing any remedies
against any Obligor or any other Person and before proceeding against any Security now or hereafter
existing for the payment or performance of any of the Obligations. Agent and Holders may maintain
an action against any Guarantor on this Guaranty without joining any other Obligor therein and
without bringing a separate action against any other Obligor.

(d) If any payment to Agent or any Holder by any Obligor is held to constitute a preference or
a voidable transfer under applicable state or federal laws, or if for any other reason Agent or any
Holder is required to refund such payment to the payor thereof or to pay the amount thereof to any
other Person, such payment to Agent or such Holder shall not constitute a release of any Guarantor
from any liability hereunder, and each Guarantor agrees to pay such amount to Agent or such Holder
on demand and agrees and acknowledges that this Guaranty shall continue to be effective or shall be
reinstated, as the case may be, to the extent of any such payment or payments. Any transfer by
subrogation which is made as contemplated in Section 6 prior to any such payment or payments shall
(regardless of the terms of such transfer) be automatically voided upon the making of any such
payment or payments, and all rights so transferred shall thereupon revert to and be vested in Agent
and Holders.

(e) This is a continuing guaranty and shall apply to and cover all Obligations and renewals
and extensions thereof and substitutions therefor from time to time.

Section 4. Waiver. Each Guarantor hereby waives, with respect to the
Obligations, this Guaranty, and the other Obligation Documents:

(a) notice of the incurrence of any Obligation by Company, and notice of any kind
concerning the assets, liabilities, financial condition, creditworthiness, businesses, prospects,
or other affairs of Company (it being understood and agreed that: (i) each Guarantor shall take
full responsibility for informing itself of such matters, (ii) neither Agent nor any Holder shall
have any responsibility of any kind to inform any Guarantor of such matters, and (iii) Agent and
Holders are hereby authorized to assume that each Guarantor, by virtue of its relationships with
Company which are independent of this Guaranty, has full and complete knowledge of such matters
whenever Holders extend credit to Company or take any other action which may change or increase any
Guarantor’s liabilities or losses hereunder).

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(b) notice that Agent, any Holder, any Obligor, or any other Person has taken or omitted to
take any action under any Obligation Document or any other agreement or instrument relating thereto
or relating to any Obligation.

(c) notice of acceptance of this Guaranty and all rights of each Guarantor under any statute
or law discharging such Guarantor from liability hereunder for failure to sue on this Guaranty.

(d) default, demand, presentment for payment, and notice of default, demand, dishonor,
nonpayment, or nonperformance.

(e) notice of intention to accelerate, notice of acceleration, protest, notice of protest,
notice of any exercise of remedies (as described in the following Section 5 or otherwise), and all
other notices of any kind whatsoever.

Section 5. Exercise of Remedies. Agent and each Holder shall have the right to
enforce, from time to time, in any order and at Agent’s or such Holder’s sole discretion, any
rights, powers and remedies which Agent or such Holder may have under the Obligation Documents or
otherwise, including judicial foreclosure, the exercise of rights of power of sale, the taking of a
deed or assignment in lieu of foreclosure, the appointment of a receiver to collect rents, issues
and profits, the exercise of remedies against personal property, or the enforcement of any
assignment of leases, rentals, oil or gas production, or other properties or rights, whether real
or personal, tangible or intangible; and each Guarantor shall be liable to Agent and each Holder
hereunder for any deficiency resulting from the exercise by Agent or any Holder of any such right
or remedy even though any rights which any Guarantor may have against Company or others may be
destroyed or diminished by exercise of any such right or remedy. No failure on the part of Agent or
any Holder to exercise, and no delay in exercising, any right hereunder or under any other
Obligation Document shall operate as a waiver thereof; nor shall any single or partial exercise of
any right preclude any other or further exercise thereof or the exercise of any other right. The
rights, powers and remedies of Agent and each Holder provided herein and in the other Obligation
Documents are cumulative and are in addition to, and not exclusive of, any other rights, powers or
remedies provided by law or in equity. The rights of Agent and each Holder hereunder are not
conditional or contingent on any attempt by Agent or any Holder to exercise any of its rights under
any other Obligation Document against any Obligor or any other Person.

Section 6. Limited Subrogation and Setoff.

(a) Until all of the Obligations have been paid and performed in full no Guarantor shall
have any right to exercise any right of subrogation, reimbursement, indemnity, exoneration,
contribution or any other claim which it may now or hereafter have against or to any Obligor or any
Security in connection with this Guaranty (including any right of subrogation under any statute or
other law), and each Guarantor hereby waives any rights to enforce any remedy which such Guarantor
may have against Company and any right to participate in any Security until such time. If any
amount shall be paid to any Guarantor on account of any such subrogation or other rights, any such
other remedy, or any Security at any time when all of the Obligations and all other expenses
guaranteed pursuant hereto shall not have been paid in full, such amount shall be
held in trust for the benefit of Agent, shall be segregated from the other funds of such Guarantor
and shall forthwith be paid over to Agent to be held by Agent as collateral for, or then or at any
time thereafter applied in whole or in part by Agent against, all or any portion of the
Obligations, whether matured or unmatured, in such order as Agent shall elect.

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(b) If any Guarantor shall make payment to Agent of all or any portion of the Obligations and
if all of the Obligations shall be finally paid in full, Agent will, at such Guarantor’s request
and expense, execute and deliver to such Guarantor (without recourse, representation or warranty)
appropriate documents necessary to evidence the transfer by subrogation to such Guarantor of an
interest in the Obligations resulting from such payment by such Guarantor; provided that such
transfer shall be subject to Section 3(d) above and that without the consent of Agent (which Agent
may withhold in its discretion) such Guarantor shall not have the right to be subrogated to any
claim or right against any Obligor which has become owned by Agent or any Holder, whose ownership
has otherwise changed in the course of enforcement of the Obligation Documents, or which Agent
otherwise has released or wishes to release from its Obligations.

(c) Upon full and final payment of the Obligations, each Guarantor which has made payments
upon the Obligations shall be entitled to contribution from each other Guarantor hereunder, to the
end that all such payments upon the Obligations shall be shared among all Guarantors in proportion
to their respective Net Worths, provided that the contribution obligations of each Guarantor shall
be limited to the maximum amount that it can pay at such time without rendering its contribution
obligations voidable under applicable law relating to fraudulent conveyances or fraudulent
transfers. As used in this subsection, the “Net Worth” of each Guarantor means, at any time, the
remainder of (i) the fair value of such Guarantor’s assets (other than such right of contribution),
minus (ii) the fair value of such Guarantor’s liabilities (other than its liabilities under its
guaranty of the Obligations).

(d) To the extent, and only to the extent, that GO shall make payment to Agent of all or any
portion of the Obligations (a “GO Guaranty Payment”), GO shall be entitled to setoff the
amount of such GO Guaranty Payment against amounts owing by GO to Company under the GO Note. Except
as expressly provided by the immediately preceding sentence, GO shall not have any right to
exercise any right of subrogation, reimbursement, indemnity, exoneration, contribution or any other
claim which it may now or hereafter have against or to any Obligor or any Security in connection
with such GO Guaranty Payment.

Section 7. Successors and Assigns. Guarantor’s rights or obligations hereunder
may not be assigned or delegated, but this Guaranty and such obligations shall pass to and be fully
binding upon the successors of each Guarantor, as well as each Guarantor. This Guaranty shall apply
to and inure to the benefit of Agent and Holders and their successors or assigns. Without limiting
the generality of the immediately preceding sentence, Agent and each Holder may assign, grant a
participation in, or otherwise transfer any Obligation held by it or any portion thereof, and Agent
and each Holder may assign or otherwise transfer its rights or any portion thereof under any
Obligation Document, to any other Person, and such other Person shall thereupon become entitled to
all of the benefits in respect thereof granted to Agent or such Holder hereunder unless otherwise
expressly provided by Agent or such Holder in connection with such assignment or transfer.

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Section 8. Subordination and Offset. Each Guarantor hereby subordinates and
makes inferior to the Obligations any and all indebtedness now or at any time hereafter owed by
Company to such Guarantor. Each Guarantor agrees that after the occurrence of any Default or Event
of Default it will neither permit Company to repay such indebtedness or any part thereof nor accept
payment from Company of such indebtedness or any part thereof without the prior written consent of
Agent and Holders. If any Guarantor receives any such payment without the prior written consent of
Agent and Holders, the amount so paid shall be held in trust for the benefit of Holders, shall be
segregated from the other funds of such Guarantor, and shall forthwith be paid over to Agent to be
held by Agent as collateral for, or then or at any time thereafter applied in whole or in part by
Agent against, all or any portions of the Obligations, whether matured or unmatured, in such order
as Agent shall elect. Each Guarantor hereby grants to Holders a right of offset to secure the
payment of the Obligations and such Guarantor’s obligations and liabilities hereunder, which right
of offset shall be upon any and all monies, securities and other property (and the proceeds
therefrom) of such Guarantor now or hereafter held or received by or in transit to Agent or any
Holder from or for the account of such Guarantor, whether for safekeeping, custody, pledge,
transmission, collection or otherwise, and also upon any and all deposits (general or special),
credits and claims of such Guarantor at any time existing against Agent or any Holder. Upon the
occurrence of any Default or Event of Default Agent and each Holder is hereby authorized at any
time and from time to time, without notice to any Guarantor, to offset, appropriate and apply any
and all items hereinabove referred to against the Obligations and Guarantors’ obligations and
liabilities hereunder irrespective of whether or not Agent or such Holder shall have made any
demand under this Guaranty and although such obligations and liabilities may be contingent or
unmatured. Agent and each Holder agrees promptly to notify the applicable Guarantor after any such
offset and application made by Agent or such Holder, provided that the failure to give such notice
shall not affect the validity of such offset and application. The rights of Agent and each Holder
under this section are in addition to, and shall not be limited by, any other rights and remedies
(including other rights of offset) which Agent and Holders may have.

Section 9. Representations and Warranties. Each Guarantor hereby represents and
warrants to Agent and each Holder as follows:

(a) The Recitals at the beginning of this Guaranty are true and correct in all respects.

(b) Each of the representations and warranties contained in Article V of the Note Purchase
Agreement are true, insofar as they refer to each Guarantor, or to the assets, operations,
conditions, agreements, business or actions of such Guarantor, as one of the Restricted Persons, or
to the Note Documents to which such Guarantor is a party.

Section 10. Covenants. Each Guarantor hereby agrees to observe and comply with
each of the covenants and agreements made in the Note Purchase Agreement, insofar as they refer to
such Guarantor, or the assets, obligations, conditions, agreements, business, or actions of such
Guarantor, as one of the Restricted Persons, or to the Note Documents to which such Guarantor is a
party.

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Section 11. No Oral Change; Amendments; Guaranty Supplements. No amendment of any
provision of this Guaranty shall be effective unless it is in writing and signed by
Guarantors and Agent, and no waiver of any provision of this Guaranty, and no consent to any
departure by any Guarantor therefrom, shall be effective unless it is in writing and signed by
Agent, and then such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given and to the extent specified in such writing. In addition, all such
amendments and waivers shall be effective only if given with the necessary approvals of Holders as
required in Section 12.1 of the Note Purchase Agreement. Upon the execution and delivery by any
Person of a guaranty supplement in substantially the form of Exhibit A hereto (each, a
“Guaranty Supplement”), (i) such Person shall be referred to as an “Additional Guarantor”
and shall become and be a Guarantor hereunder, and each reference in this Guaranty to a “Guarantor”
shall also mean and be a reference to such Additional Guarantor, and each reference in any other
Note Document to a “Guarantor” shall also mean and be a reference to such Additional Guarantor, and
(ii) each reference herein to “this Guaranty,”
“hereunder,” “hereof” or words of like import
referring to this Guaranty, and each reference in any other Note Document to the “Guaranty,”
“thereunder,” “thereof” or words of like import referring to this Guaranty, shall mean and be a
reference to this Guaranty as supplemented by such Guaranty Supplement.

Section 12. Invalidity of Particular Provisions. If any term or provision of this
Guaranty shall be determined to be illegal or unenforceable all other terms and provisions hereof
shall nevertheless remain effective and shall be enforced to the fullest extent permitted by
applicable law.

Section 13. Headings and References. The headings used herein are for purposes of
convenience only and shall not be used in construing the provisions hereof. The words “this
Guaranty,” “this instrument,” “herein,” “hereof,” “hereby” and words of similar import refer to
this Guaranty as a whole and not to any particular subdivision unless expressly so limited. The
phrases “this section” and “this subsection” and similar phrases refer only to the subdivisions
hereof in which such phrases occur. The word “or” is not exclusive, and the word “including” (in
its various forms) means “including without limitation”. Pronouns in masculine, feminine and neuter
genders shall be construed to include any other gender, and words in the singular form shall be
construed to include the plural and vice versa, unless the context otherwise requires.

Section 14. Term. This Guaranty shall be irrevocable until all of the Obligations
have been completely and finally paid and performed, and no Holder has any obligation to make any
loans or other advances to Company, and all obligations and undertakings of Company under, by
reason of, or pursuant to the Obligation Documents have been completely performed, and this
Guaranty is thereafter subject to reinstatement as provided in Section 3(d). All extensions of
credit and financial accommodations heretofore or hereafter made by Agent or Holders to Company
shall be conclusively presumed to have been made in acceptance hereof and in reliance hereon.

Section 15. Notices. Any notice or communication required or permitted hereunder
shall be given in writing, sent by personal delivery, by telecopy, by delivery service with proof
of delivery, or by registered or certified United States mail, postage prepaid, addressed (a) to
Agent at the address listed in the Note Purchase Agreement and (b) to Guarantor at the address
listed on Guarantor’s signature page hereto or to such other address or to the attention of such
other individual as hereafter shall be designated in writing by the applicable party sent in
accordance herewith. Any such notice or communication shall be deemed to have been given (a) in the
case of personal delivery or delivery service, as of the date of first attempted delivery at the
address or in the manner provided herein, (b) in the case of telecopy, upon receipt, or (c) in the
case of registered or certified United States mail, three days after deposit in the mail.

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Section 16. Limitation on Interest. Agent, Holders and Guarantors intend to
contract in strict compliance with applicable usury law from time to time in effect, and the
provisions of the Note Purchase Agreement limiting the interest for which any Guarantor is
obligated are expressly incorporated herein by reference.

Section 17. Note Document. This Guaranty is a Note Document, as defined in the
Note Purchase Agreement, and is subject to the provisions of the Note Purchase Agreement governing
Note Documents. Each Guarantor hereby ratifies, confirms and approves the Note Purchase Agreement
and the other Note Documents and, in particular, any provisions thereof which relate to such
Guarantor.

Section 18. Counterparts; Fax. This Guaranty may be executed in any number of
counterparts, each of which when so executed shall be deemed to constitute one and the same
Guaranty. This Guaranty may be validly executed and delivered by facsimile or other electronic
transmission.

Section 19. Indemnity. Each Guarantor agrees to indemnify each Holder Party, upon
demand, from and against any and all liabilities, obligations, broker’s fees, claims, losses,
damages, penalties, fines, actions, judgments, suits, settlements, costs, expenses or disbursements
(including reasonable fees of attorneys, accountants, experts and advisors) of any kind or nature
whatsoever (in this section collectively called “liabilities and costs”) which to any extent (in
whole or in part) may be imposed on, incurred by, or asserted against such Person growing out of,
resulting from or in any other way associated with this Guaranty, the other Note Documents and the
transactions and events (including the enforcement or defense thereof) at any time associated
herewith and therewith or contemplated herein or therein (whether arising in contract or in tort or
otherwise). Among other things, the forgoing indemnification covers all liabilities and costs
incurred by each Holder Party related to any breach of a Note Document by a Restricted Person, any
bodily injury to any Person or damage to any Person’s property, or any violation or noncompliance
with any Environmental Laws by any Holder Party or any other Person or any liabilities or duties of
any Holder Party or any other Person with respect to Hazardous Materials found in or released into
the environment.

[Guaranty]

 

11

 

The foregoing indemnification shall apply whether or not such liabilities and costs are in any
way or to any extent owed, in whole or in part, under any claim or theory of strict liability or
caused, in whole or in part, by any negligent act or omission of any kind by any Holder Party (in
each case whether alleged, arising or imposed in a legal proceeding brought by or against any
Restricted Person, any Holder Party, or any other Person),

provided only that no Holder Party shall be entitled under this section to receive indemnification
for that portion, if any, of any liabilities and costs which is proximately caused by its own
individual gross negligence or willful misconduct, as determined in a final judgment. If any Person
(including any Guarantor, Company or any of their Affiliates) ever alleges such gross negligence or
willful misconduct by any Holder Party, the indemnification provided for in this section shall
nonetheless be paid upon demand, subject to later adjustment or reimbursement, until such time as a
court of competent jurisdiction enters a final judgment as to the extent and effect of the alleged
gross negligence or willful misconduct. As used in this section the term “Holder Party” shall
include each director, officer, agent, attorney, employee, representative and Affiliate of such
Persons.

Section 20.
Governing Law;
Submission of Process.
this
Guaranty shall be governed
by and construed in accordance with the internal laws of the State
of New York, without regard to principles of conflicts of laws. Each Guarantor hereby irrevocably
(a) submits itself to the non-exclusive jurisdiction of the state and federal courts sitting in the
State and County of New York, (b) agrees and consents that service of process may be made upon it
in any legal proceeding relating to this Guaranty or the Obligations by any means allowed under New
York or federal law, and (c) waives any objection that it may now or hereafter have to the venue of
any such proceeding being in such a court and any claim that any such proceeding brought in such a
court has been brought in an inconvenient forum. Each Guarantor hereby makes the foregoing
submissions, agreements, consents and waivers on behalf of and with respect to each of its
subsidiaries.

Section 21.
Waiver of Jury Trial,
Punitive Damages, etc.
each Guarantor hereby
knowingly, voluntarily, intentionally, and irrevocably (a) waives, to the
maximum extent not prohibited by Law, any right it may have to a trial by jury in respect of any
litigation based hereon, or directly or indirectly at any time arising out of, under or in
connection with this Guaranty or any transaction contemplated hereby or associated herewith, before
or after maturity; (b) waives, to the maximum extent not
prohibited by Law, any right it may have
to claim or recover in any such litigation any “Special
Damages” as defined below, 

[Guaranty]

 

12

 

(c) certifies
that no party hereto nor any representative or agent or counsel for
any party hereto has represented, expressly or otherwise, or implied that such party would not, in the
event of litigation, seek to enforce the foregoing waivers, and (d) acknowledges that it has been
induced to enter into this Agreement, the other Note Documents and the transactions contemplated
hereby and thereby by, among other things, the mutual waivers and certifications contained in this
section. As used in this section, “Special Damages” includes all special, consequential, exemplary,
or punitive damages (regardless of how named), but does not include any payments or funds which any
party hereto has expressly promised to pay or deliver to any other
party hereto.

Section 22. FINAL AGREEMENT. THIS WRITTEN AGREEMENT AND THE OTHER NOTE DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

[The
remainder of this page is intentionally left blank.]

[Guaranty]

 

13

 

IN WITNESS WHEREOF, each Guarantor has executed and delivered this Guaranty as of the date
first written above.

	 	 	 	 	 
	 	RIO VISTA ECO LLC

 	 
	 	By:  	/s/ Ian Bothwell
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	RIO VISTA GO LLC

 	 
	 	By:  	/s/ Ian Bothwell
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	GO, LLC

 	 
	 	By:  	/s/ Ian Bothwell
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	MV PIPELINE COMPANY

 	 
	 	By:  	/s/ Ian Bothwell
 	 
	 	 	Ian Bothwell 	 
	 	 	President 	 

Address of each Guarantor:

2601 Northwest Expressway #902E 

Oklahoma City, Oklahoma 73112-7217 

Attn.: Ian Bothwell 

Facsimile: (310) 563-6255

[Guaranty]

 

 

 

EXHIBIT A

FORM OF GUARANTY SUPPLEMENT

                                        , 20_____ 

THIS GUARANTY SUPPLEMENT is
made as of [mm/dd/yy] (this “Supplement”) is delivered
pursuant to that certain Guaranty, dated as of November 19, 2007 (as it may be amended,
supplemented or otherwise modified, the “Guaranty”; the terms defined therein and not
otherwise defined herein being used herein as therein defined), by Rio Vista ECO LLC, an Oklahoma
limited liability company, Rio Vista GO LLC, an Oklahoma limited liability company, GO, LLC, an
Oklahoma limited liability company, and MV Pipeline Company, an Oklahoma corporation, as the
initial guarantors, in favor of TCW Asset Management Company, as administrative agent
(“Agent”).

Section 1. Pursuant to Section 11 of the Guaranty, the undersigned hereby:

(a) agrees that this Supplement may be attached to the Guaranty and that by the execution and
delivery hereof, the undersigned becomes a Guarantor under the Guaranty and the Note Documents and
agrees to be bound by all of the terms thereof;

(b) represents and warrants that each of the representations and warranties set forth in the
Guaranty, the Note Purchase Agreement and each other Note Document and applicable to the
undersigned is true and correct both before and after giving effect to this Supplement, except to
the extent that any such representation and warranty relates solely to any earlier date, in which
case such representation and warranty is true and correct as of such earlier date;

(c) no event has occurred or is continuing as of the date hereof, or will result from the
transactions contemplated hereby on the date hereof, that would constitute an Event of Default or a
Default; and

(d) agrees to irrevocably, absolutely, and unconditionally guaranty the prompt, complete, and
full payment and performance when due of all Obligations as provided by Section 2 of the Guaranty.

Section 2. The undersigned agrees from time to time, upon request of Agent, to take such
additional actions and to execute and deliver such additional documents and instruments as Agent
may request to effect the transactions contemplated by, and to carry out the intent of, this
Agreement. Any notice or other communication herein required or permitted to be given shall be
given pursuant to Section 15 of the Guaranty, and all for purposes thereof, the notice address of
the undersigned shall be the address as set forth on the signature page hereof.

This
Supplement shall be deemed a contract and instrument made under the laws of the State
of New York and shall be construed and enforced in accordance with
and governed by the Internal
laws of the State of New York, without regard to the principles of conflicts of laws.

[Guaranty]

 

 

 

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

	 	 	 	 	 
	 	[NAME OF SUBSIDIARY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	Address for Notices:
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	Attention:
	 	 	 	 
	 

	 	 	 	 
	Telecopier:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	ACKNOWLEDGED AND ACCEPTED,
	as of the date above first written:

	 	 	 	 	 	 	 
	TCW ASSET MANAGEMENT COMPANY,
	as Agent	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

[Guaranty]

 

Exhibit A — Page 2Filed by Bowne Pure Compliance

 

Exhibit 10.54

SECURITY AGREEMENT 

dated as of November 19, 2007

of

Rio Vista Penny LLC, each other Grantor listed on the signature pages hereof and each other

Grantor that otherwise may become a party hereto

in favor of

TCW Asset Management Company, as Administrative Agent

[Security Agreement]

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 	 	 	 
	ARTICLE I Definitions and References
	 	 	1	 
	Section 1.1. Definitions in Note Purchase Agreement
	 	 	1	 
	Section 1.2. Definitions in the UCC, etc.
	 	 	1	 
	Section 1.3. Definitions in this Agreement
	 	 	2	 
	Section 1.4. Rules of Construction; References and Titles
	 	 	3	 
	 
	ARTICLE II Security Interest
	 	 	4	 
	Section 2.1. Grant of Security Interest
	 	 	4	 
	Section 2.2. Secured Obligations Secured
	 	 	5	 
	 
	ARTICLE III Representations and Warranties
	 	 	6	 
	Section 3.1. Representations and Warranties
	 	 	6	 
	 
	ARTICLE IV Covenants
	 	 	9	 
	Section 4.1. General Covenants Applicable to Collateral
	 	 	9	 
	Section 4.2. Covenants for Specified Types of Collateral
	 	 	10	 
	 
	ARTICLE V Voting and Distribution Rights in Respect Of Pledged Equity
	 	 	12	 
	Section 5.1. Voting Rights
	 	 	12	 
	Section 5.2. Dividend Rights While No Event of Default Exists 
	 	 	12	 
	Section 5.3. Actions by Secured Party
	 	 	13	 
	Section 5.4. Rights While an Event of Default Exists
	 	 	13	 
	 
	ARTICLE VI Remedies, Powers and Authorizations
	 	 	13	 
	Section 6.1. Normal Provisions Concerning the Collateral
	 	 	13	 
	Section 6.2. Event of Default Remedies
	 	 	15	 
	Section 6.3. Application of Proceeds
	 	 	17	 
	Section 6.4. Deficiency
	 	 	18	 
	Section 6.5. Private Sales of Investment Property and Other Pledged Equity
	 	 	18	 
	Section 6.6. Indemnity and Expenses
	 	 	19	 
	Section 6.7. Non-Judicial Remedies
	 	 	19	 
	Section 6.8. Limitation on Duty of the Secured Party in Respect of Collateral
	 	 	19	 
	Section 6.9. Appointment of Other Agents
	 	 	20	 
	 
	ARTICLE VII Miscellaneous
	 	 	20	 
	Section 7.1. Notices
	 	 	20	 

 

i

 

	 	 	 	 	 
	 	 	Page	 
	 	 	 	 
	Section 7.2. Amendments and Waivers
	 	 	20	 
	Section 7.3. Additional Grantors
	 	 	20	 
	Section 7.4. Preservation of Rights
	 	 	21	 
	Section 7.5. Severability
	 	 	21	 
	Section 7.6. Survival
	 	 	21	 
	Section 7.7. Binding Effect and Assignment
	 	 	21	 
	Section 7.8. Release of Collateral; Termination
	 	 	21	 
	Section 7.9. Limitation on Interest
	 	 	22	 
	Section 7.10. Governing Law
	 	 	22	 
	Section 7.11. Final Agreement
	 	 	22	 
	Section 7.12. Counterparts; Facsimile
	 	 	22	 
	Section 7.13. Acceptance by the Secured Party
	 	 	22	 
	Section
7.14. Jurisdiction,
Etc.
	 	 	23	 
	Section 7.15. Restatement
	 	 	23	 

	 	 	 
	Schedules
	 	 
	Schedule 1

	 	Address for Notices and Jurisdiction of Organization
	Schedule 2

	 	Scheduled Collateral
	 
	 	 
	Exhibits

	 	 
	Exhibit A
	 	Form of Grantor Accession Agreement

 

ii

 

SECURITY AGREEMENT

THIS
SECURITY AGREEMENT (this “Agreement”) is made as of November 19, 2007, by Rio Vista Penny
LLC and each other Grantor listed on the signature pages hereof and that may become parties hereto
pursuant to Section 7.3 in favor of TCW Asset Management Company, as administrative agent under the
Note Purchase Agreement described below (the “Secured Party”), for the benefit of the
Beneficiaries.

RECITALS

A. Company,
the Secured Party, and certain holders (collectively, the “Holders”) are parties
to that certain Note Purchase Agreement dated as of November 19, 2007 (as heretofore or hereafter
amended, supplemented or restated from time to time, the “Note Purchase Agreement”).

B. Pursuant to the Note Purchase Agreement, the Holders have agreed to make senior
secured term loans to Company.

C. In order to induce the Beneficiaries to extend such credit, each Grantor has agreed to
grant to the Secured Party, for the benefit of the Beneficiaries, a security interest in the
Collateral.

NOW, THEREFORE, in consideration of the premises and for other valuable consideration, the
receipt and sufficiency of which the parties acknowledge, each Grantor agrees as follows:

ARTICLE I

Definitions and References

Section 1.1. Definitions in Note Purchase Agreement. Capitalized terms used herein and
not otherwise defined have the respective meanings specified in the Note Purchase Agreement.

Section 1.2. Definitions in the UCC, etc. The following terms have the meanings
specified in the UCC:

(a) Account.

(b) Chattel Paper.

(c) Commercial Tort Claim.

(d) Deposit Account.

(e) Document.

(f) Electronic Chattel Paper

[Security Agreement]

 

1

 

(g) Equipment.

(h) General Intangible.

(i) Instrument.

(j) Inventory.

(k) Investment Property.

(l) Letter of Credit Right.

(m) Payment Intangible.

(n) Proceeds.

(o) Securities Account.

(p) Security.

(q) Uncertificated Security.

Other terms used in this Agreement that are defined in the UCC and not otherwise defined
herein or in the Note Purchase Agreement have the meanings specified in the UCC, unless the
context otherwise requires.

Section 1.3. Definitions in this Agreement. The following terms have the following
meanings:

“Beneficiaries” means the Secured Party, the Holders, and any other Person to which any
Secured Obligation is owed.

“Collateral” means, with respect to any Grantor, all property described in Section 2.1 in
which such Grantor has any right, title or interest. References to Collateral herein with respect
to a Grantor are intended to refer to Collateral in which such Grantor has any right, title or
interest and not to Collateral in which any other Grantor has any right, title or interest.

“Grantor” means each Person granting a security interest in any Collateral pursuant to
this Agreement. References to “Grantor” in this Agreement are intended to refer to each such
Person as if such Person were the only grantor pursuant to this Agreement, except:

(a) that references to “any Grantor” are meant to refer to each Person that is a
Grantor,

(b) that references to “the Grantors” are meant to refer to collectively to all Persons
that are Grantors and

(c) as otherwise may be specifically set forth herein.

[Security Agreement]

 

2

 

“Holders” has the meaning specified in Recital A.

“Note Purchase Agreement” has the meaning specified in Recital A.

“Pledged Debt” means all Investment Property and General Intangibles constituting or
pertaining to Indebtedness owing by any Person to Grantor.

“Pledged Equity” means all Investment Property and General Intangibles constituting or
pertaining to Equity in Persons.

“Secured Obligations” means all Obligations of all Restricted Persons now or
hereafter arising under the Note Documents.

“Secured Party” has the meaning specified in the preamble.

“Securities Act” means the Securities Act of 1933.

“UCC” means the Uniform Commercial Code in effect in the State of New York from time to time;
provided that, if perfection or the effect of perfection or non-perfection or the priority
of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in
effect from time to time in such other jurisdiction for purposes of the provisions hereof relating
to such perfection, effect of perfection or non-perfection or priority.

Section 1.4. Rules of Construction; References and Titles. The definitions of terms
herein shall apply equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine, feminine and neuter
forms. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase
“without limitation.” The word “will” shall be construed to have the same meaning and effect as the
word “shall.” Unless the context requires otherwise:

(a) Any definition of or reference to any agreement, instrument or other document herein shall
be construed as referring to such agreement, instrument or other document as from time to time
amended, restated, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein).

(b) Unless otherwise specified, any reference herein to any Person shall be construed to
include such Person’s successors and assigns.

(c) The
words “herein,” “hereof” and “hereunder,” and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular provision hereof.

(d) All references herein to Articles, Sections, Exhibits and Schedules shall be construed to
refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement.

(e) Any reference to any Law herein shall, unless otherwise specified, refer to such law as
amended, modified or supplemented from time to time.

[Security Agreement]

 

3

 

(f) The words “asset” and “property” shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.

(g) Except as specified otherwise, references to any document, instrument, or agreement
shall include:

(i) all exhibits, schedules, and other attachments thereto, and

(ii) all documents, instruments, or agreements issued or executed in
replacement thereof.

(h) A title appearing at the beginning of any subdivision is for convenience only, does not
constitute any part of such subdivision and shall be disregarded in construing the language
contained in such subdivision.

(i) The phrases “this Section” and “this subsection” and similar phrases refer only to the
section or subsection hereof in which such phrases occur.

(j) The word “or” is not exclusive, and the word “including” (in all of its
grammatical variations) means “including without limitation”.

ARTICLE II

Security Interest

Section 2.1. Grant of Security Interest. As collateral security for the payment and
performance of all Secured Obligations, Grantor pledges, collaterally assigns and grants to the
Secured Party for the benefit of the Beneficiaries a continuing security interest in all right,
title and interest of Grantor in and to all of the following property, whether now owned or
existing or hereafter acquired or arising, regardless of where located and howsoever Grantor’s
interests therein arise, whether by ownership, security interest, claim or otherwise:

(a) Accounts.

(b) All Equity listed on Schedule 2, whether constituting General Intangibles or
Investment Property.

(c) General Intangibles, including all Payment Intangibles.

(d) Documents.

(e) Instruments.

(f) Inventory.

(g) Equipment, including, all parts thereof, all accessions thereto, and all
replacements therefor.

[Security Agreement]

 

4

 

(h) Deposit Accounts, including all Deposit Accounts listed on Schedule 2.

(i) Investment Property, and all dividends, distributions, return of capital, interest,
distributions, value, cash, instruments and other property from time to time received, receivable
or otherwise distributed in respect of or in exchange for any investment property and all
subscription warrants, rights or options issued thereon or with respect thereto, including Pledged
Debt.

(j) Commercial Tort Claims that are listed opposite Grantor’s name on Schedule 2, as in effect
on the date hereof or as hereafter modified pursuant to Section 4.2.

(k) Letter of Credit Rights.

(1) Chattel Paper.

(m) Books and records (including customer lists, marketing information, credit files, price
lists, operating records, vendor and supplier price lists, land and title records, geological and
geophysical records and data, reserve engineering records and data, computer software, computer
hardware, computer disks and tapes and other storage media, printouts and other materials and
records) pertaining to any Collateral or to any oil, gas or mineral properties and interests.

(n) Money and property of any kind from time to time in the possession or under the control of
any Beneficiary.

(o) Proceeds of the foregoing.

Notwithstanding the foregoing, this Section 2.1 does not grant a security interest in any property
to the extent that such grant is prohibited under any agreement relating to such property and the
violation of such prohibition would cause Grantor to lose its interest in or rights with respect to
such property, except to the extent that Part 5 of Article 9 of the UCC would render such
prohibition ineffective.

Section 2.2. Secured Obligations Secured.

(a) The security interest created hereby in the Collateral secures the payment and performance
of all Secured Obligations.

(b) Without limiting the generality of the foregoing, this Agreement secures, as to Grantor,
the payment of all amounts that constitute part of the Secured Obligations and would be owed by any
Restricted Person to any Beneficiary under the Note Documents but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving a Restricted Person.

(c) Notwithstanding any other provision of this Agreement, with respect to any Grantor, the
liability of such Grantor hereunder and under each other Note Document to which it is a party shall
be limited to the maximum liability that such Grantor may incur without rendering this Agreement
and such other Note Documents subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provision of any applicable state or
federal law. This subsection (c) shall not apply to Company, or Rio Vista ECO LLC.

[Security Agreement]

 

5

 

ARTICLE III

Representations and Warranties

Section 3.1. Representations and Warranties. Grantor represents and warrants to the
Beneficiaries as follows:

(a) If Grantor is not Company, each representation and warranty made by Company with respect
to Grantor in any other Note Document is correct.

(b) Grantor has and will have at all times the right, power and authority to grant to the
Secured Party as provided herein a security interest in the Collateral, free and clear of any Lien.
This Agreement creates a valid and binding security interest in favor of the Secured Party in the
Collateral, securing the Secured Obligations.

(c) None of the Collateral in which Grantor has granted a security interest that
constitutes goods:

(i) is covered by any Document, except for Documents that are subject hereto and have
been delivered to the Secured Party;

(ii) is subject to any landlord’s lien or similar Lien, except for Permitted
Liens; or

(iii) is in the possession of any Person other than Grantor or the Secured Party,
except for Collateral being transported in the ordinary course of business and Collateral
subject to a joint operating agreement that is in the possession of the operator under the
agreement.

(d) With respect to Pledged Equity:

(i) All units and other securities constituting Pledged Equity have been duly
authorized and validly issued, are fully paid and non-assessable, and were not issued in
violation of the preemptive rights of any Person or of any agreement by which Grantor or any
issuer of Pledged Equity is bound.

(ii) The Pledged Equity listed on Schedule 2 constitutes all equity interests owned by
Grantor in its Subsidiaries. All endorsements, deliveries, notifications, and other actions
required by Section 4.2(d)(i) and (ii) have been taken with respect to such Pledged Equity
and all other Pledged Equity.

(iii) All documentary, stamp or other taxes or fees owing in connection with the
issuance, transfer or pledge of any Pledged Equity (or rights in respect thereof) have been
paid.

[Security Agreement]

 

6

 

(iv) No restriction or condition exists with respect to the transfer, voting or
capital of any Pledged Equity.

(v) Except as disclosed on Schedule 2, no Grantor or issuer of Pledged Equity has any
outstanding subscription agreement, option, warrant or convertible security outstanding or
any other right outstanding pursuant to which any Person would be entitled to have issued to
it units of ownership interest in any issuer of Pledged Equity.

(vi) Grantor has taken or concurrently herewith is taking all actions necessary to
perfect the Secured Party’s security interest in Pledged Equity, including any registration,
filing or notice that may be necessary or advisable under Article 8 of the Uniform
Commercial Code as in effect in the jurisdiction in which any issuer of such Pledged Equity
was organized, and no other Person has any such registration, filing or notice in effect.

(vii) Schedule 2 correctly and completely reflects all Pledged Equity owned by Grantor
as of the date hereof, and Schedule 2 accurately sets forth the percentage of each class or
series of Equity issued by the issuer of such Pledged Equity that is held by Grantor.

(viii) Schedule 2 sets forth all agreements, including all operating, management,
voting and shareholder agreements to which Grantor is a party or by which it is bound and
that relate to Pledged Equity and a correct and complete copy of each such Agreement has
been delivered to counsel for the Secured Party.

(ix) No issuer of Pledged Equity has made any call for capital that has not been fully
paid by Grantor and each other holder of Equity of such issuer.

(x) Neither Grantor nor any other holder of equity issued by any issuer of Pledged
Equity is in default under any agreement relating to Pledged Equity.

(xi) Neither the execution, delivery or performance of this Agreement nor the exercise
of any right or remedy of the Secured Party hereunder will cause a default under any
agreement in respect of Pledged Equity or otherwise adversely affect or diminish any Pledged
Equity.

(xii) Grantor’s rights under any agreement in respect of Pledged Equity are enforceable
in accordance with their terms, except as such enforcement may be limited by bankruptcy,
insolvency or similar laws of general application relating to the enforcement of creditors’
rights.

(e) To the full extent requested by the Secured Party, Grantor has delivered to the Secured
Party all Instruments and other writings evidencing Pledged Debt in existence on the date hereof,
in suitable form for transfer by delivery with any necessary endorsement or accompanied by fully
executed instruments of transfer or assignment in blank.

(f) Grantor has no Deposit Account as of the date hereof other than those listed on Schedule
2.

[Security Agreement]

 

7

 

(g) Grantor has no Securities Account as of the date hereof.

(h) Grantor is the beneficiary of no Letter of Credit Right as of the date hereof other than
those listed on Schedule 2.

(i) Grantor is not aware of any Commercial Tort Claim that it may have other than those listed
on Schedule 2.

(j) Grantor is an entity of the type specified on Schedule 1 (or Schedule 1 to any security
agreement supplement delivered by it pursuant to Section 7.3) opposite its name and is organized
under the laws of the jurisdiction specified in such Schedule opposite its name, which is Grantor’s
location pursuant to the UCC. Grantor has not conducted business under any name except the name in
which it has executed this Agreement, which is the exact name that appears in Grantor’s
Organizational Documents. Grantor’s organizational identification number, if any, is set forth in
Schedule 1.

(k) Grantor has good and marketable title to the Collateral, free and clear of all Liens,
except for the security interest created by this Agreement and any Permitted Liens. No effective
financing statement or other registration or instrument similar in effect covering any Collateral
is on file in any recording office except any that have been filed in favor of the Secured Party
relating to this Agreement.

(1) There is no condition precedent to the effectiveness of this Agreement that has not been
satisfied or waived.

(m) Grantor, if other than Company, has, independently and without reliance upon any
Beneficiary and based on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement and each other Note Document to which it
is or is to be a party, and Grantor, if other than Company, has established adequate means of
obtaining from each other Restricted Person on a continuing basis information pertaining to, and is
now and on a continuing basis will be completely familiar with, the business, condition (financial
or otherwise), operations, performance, properties and prospects of each other Restricted Person.

(n) The direct or indirect value of the consideration received and to be received by Grantor
in connection herewith is reasonably worth at least as much as the liability of Grantor hereunder
and under each other Note Document to which Grantor is a party, and the incurrence of such
liability in return for such consideration may reasonably be expected to benefit Grantor, directly
or indirectly. Grantor is not “insolvent” on the date hereof (that is, the sum of Grantor’s
absolute and contingent liabilities, including its Obligations hereunder and under each other Note
Document to which Grantor is a party, does not exceed the fair market value of Grantor’s assets).
Grantor’s capital is adequate for the businesses in which Grantor is engaged and intends to be
engaged. Grantor has not incurred (whether hereby or otherwise), nor does Grantor intend to incur
or believe that it will incur, debts that will be beyond its ability to pay as such debts mature.

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All balance sheets, earning statements, financial data and other information concerning Grantor
that have been furnished to Agent and each Holder to induce it to accept this Agreement (or
otherwise furnished to Agent and each Holder in connection with the transactions
contemplated hereby or associated herewith) fairly represent the financial condition of Grantor as
of the dates and the results of Grantor’s operations for the periods for which the same are
furnished. None of such balance sheets, earnings and cash flow statements, financial data and other
information contains any untrue statement of a material fact or omits to state any material fact
that is necessary to make any statements contained therein not misleading.

ARTICLE IV

Covenants

Section 4.1. General Covenants Applicable to Collateral. Grantor will at all times
perform and observe the covenants contained in the Note Purchase Agreement that are applicable to
Grantor (whether made by Grantor or made by Company with respect to Grantor) for so long as any
Secured Obligation is outstanding. In addition, Grantor will, so long as this Agreement shall be in
effect, perform and observe the following:

(a) Without limitation of any other covenant herein, Grantor shall not cause or permit any
change in its name, identity or organizational structure, or any change to its jurisdiction of
organization, unless Grantor shall have first:

(i) notified the Secured Party of such change at least 30 days prior to the effective
date of such change (or such shorter notice as the Secured Party may approve),

(ii) taken all action requested by the Secured Party (under the following subsection
(b) or otherwise) for the purpose of further confirming and protecting the Secured Party’s
security interest and rights under this Agreement and the perfection and priority thereof,
and

(iii) if requested by the Secured Party, provided to the Secured Party a legal opinion
to the Secured Party’s satisfaction confirming that such change shall not adversely affect
the Secured Party’s security interest and rights under this Agreement or the perfection or
priority of such security interest.

In any notice delivered pursuant to this subsection, Grantor will expressly state that the notice
is required by this Agreement and contains facts that may require additional filings of financing
statements or other notices for the purposes of continuing perfection of the Secured Party’s
security interest in the Collateral.

(b) Grantor will, at its expense and as from time to time requested by the Secured Party,
promptly execute and deliver all further instruments, agreements, filings and registrations, and
take all further action, in order:

(i) to confirm and validate this Agreement and the Secured Party’s rights and remedies
hereunder;

(ii) to correct any error or omission in the description herein of the Secured
Obligations or the Collateral or in any other provision hereof;

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(iii) to perfect, register and protect the security interest and rights created or
purported to be created hereby or to maintain or upgrade in rank the priority of such
security interests and rights;

(iv) to enable the Secured Party to exercise and enforce its rights and remedies
hereunder; or

(v) otherwise to give the Secured Party the full benefits of the rights and
remedies described in or granted under this Agreement.

In connection with the foregoing, Grantor will, whenever requested by the Secured Party:

(A) execute and file any financing statement, continuation statement or other
filing or registration relating to the Secured Party’s security interest and rights
hereunder, and any amendment thereto,

(B) mark its books and records relating to any Collateral to reflect that such
Collateral is subject to this Agreement and the security interests hereunder, and

(C) whenever requested by Secured Party from time to time, Grantor will obtain
from any account debtor or other obligor in respect of any property included in the
Collateral an acknowledgment by such account debtor or obligor that such property is
subject to this Agreement.

(c) Grantor shall not take any action that would, or fail to take any action if such failure
would, impair the enforceability, perfection or priority of the Secured Party’s security interest
in any Collateral.

Section 4.2. Covenants for Specified Types of Collateral. For so long as any Secured
Obligation is outstanding:

(a) Grantor will, promptly upon request by the Secured Party, deliver to the Secured Party all
Documents and Instruments included in the Collateral. All such Documents and Instruments shall be
held by or on behalf of the Secured Party pursuant hereto and shall be delivered in suitable form
for transfer by delivery with any necessary endorsement or shall be accompanied by fully executed
instruments of transfer or assignment in blank, all in form and substance satisfactory to the
Secured Party.

(b) If at any time there exists Collateral in which a security interest may be perfected by a
notation on the certificate of title or similar evidence of ownership of such Collateral, Grantor
will, promptly upon request by the Secured Party, deliver to the Secured Party all certificates of
title and similar evidences of ownership, all applications therefor, and all other documents that
are necessary or appropriate in order to register the Secured Party’s security interest in such
Collateral on such certificate of title or other evidence of ownership or in otherwise perfecting
the Secured Party’s security interest in such Collateral.

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(c) For each Deposit Account that Grantor at any time maintains, Grantor will, pursuant to an
agreement in form and substance satisfactory to the Secured Party, at the Secured Party’s option,
cause the depository bank that maintains such Deposit Account to agree to comply at any time with
instructions from the Secured Party to such depository bank directing the disposition of funds from
time to time credited to such Deposit Account, without further consent of Grantor, or take such
other action as the Secured Party may approve in order to perfect the Secured Party’s security
interest in such Deposit Account. This subsection shall not apply to any Deposit Account:

(i) for which the Secured Party is the depository bank, or

(ii) that is specially and exclusively used for payroll, payroll taxes, and other
employee wage and benefit payments to or for the benefit of Grantor’s salaried employees.

(d) (i) If Grantor shall at any time hold or acquire any certificated security, Grantor will
forthwith endorse, assign, and deliver the same to the Secured Party, accompanied by such
instruments of transfer or assignment duly executed in blank as the Secured Party may from time to
time specify.

(ii) If any security now or hereafter acquired by Grantor is uncertificated and is
issued to Grantor or its nominee directly by the issuer thereof, Grantor will immediately
notify the Secured Party of such issuance and, pursuant to an agreement in form and
substance satisfactory to the Secured Party, cause the issuer thereof to agree to comply
with instructions from the Secured Party as to such security, without further consent of
Grantor or such nominee, or take such other action as the Secured Party may approve in order
to perfect the Secured Party’s security interest in such security.

(iii) Grantor shall not permit any Pledged Equity to be held by a securities
intermediary or held in a Securities Account. Grantor shall not permit any Pledged Equity
that is an equity interest in a limited liability company or a limited partnership and that
is a General Intangible to become Investment Property.

(iv) Grantor shall not:

(A) adjust, settle, compromise, amend or modify any right in respect of any
Pledged Equity or any agreement relating thereto;

(B) permit the creation of any additional equity interest in any issuer of
Pledged Equity, unless immediately upon creation the same is pledged to the Secured
Party pursuant hereto to the extent necessary to give the Secured Party a
first-priority security interest in such Pledged Equity after such creation that is
in the aggregate at least the same percentage of such Pledged Equity as was subject
hereto before such issue, whether such additional interest is presently vested or
will vest upon the payment of money or the occurrence or nonoccurrence of any other
condition; or

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(C) enter into any agreement, other than the Note Documents, creating, or
otherwise permit to exist, any restriction or condition upon the transfer or
exercise of any rights in respect of any Pledged Equity, including any restriction
or condition upon the transfer, voting or control of any Pledged Equity.

(e) If Grantor is at any time a beneficiary under a letter of credit now or hereafter issued
in favor of Grantor, Grantor shall promptly notify the Secured Party thereof and, at the request
and option of the Secured Party, pursuant to an agreement in form and substance satisfactory to the
Secured Party, either:

(i) arrange for the issuer and any confirmer of such letter of credit to consent to an
assignment to the Secured Party of the proceeds of any drawing under such letter of credit;
or

(ii) arrange for the Secured Party to become the transferee beneficiary of such
letter of credit.

(f) If Grantor shall at any time after the date hereof have a Commercial Tort Claim, Grantor
shall promptly notify the Secured Party in writing of the details thereof and execute and deliver
to the Secured Party a supplement to Schedule 2 listing such Commercial Tort Claim, which
supplement shall take effect without further action on the part of any party hereto or beneficiary
hereof and shall make such Commercial Tort Claim collateral security subject to this Agreement.

ARTICLE V

Voting and Distribution Rights in Respect Of Pledged Equity

Section 5.1. Voting Rights. Grantor shall be entitled to exercise all voting and other
consensual rights pertaining to the Pledged Equity or any part thereof for any purpose;
provided that Grantor shall not exercise or refrain from exercising any such right if such
action would have a material adverse effect on the value of any Pledged Equity or on the Secured
Party’s security interest or the value thereof.

Section 5.2. Dividend Rights While No Event of Default Exists. Grantor shall be
entitled to receive and retain all dividends, interest and other distributions paid in respect of
the Pledged Equity if and to the extent that the payment thereof is not otherwise prohibited by the
Note Documents; provided that:

(a) all dividends, interest and other distributions paid or payable other than in cash in
respect of, and instruments and other property received, receivable or otherwise distributed in
respect of, or in exchange for, any Pledged Equity;

(b) all dividends and other distributions paid or payable in cash in respect of any Pledged
Equity in connection with a partial or total liquidation or dissolution or in connection with a
reduction of capital, capital surplus or paid in surplus; and

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(c) all cash paid, payable or otherwise distributed in respect of principal of, or in
redemption of, or in exchange for, any Pledged Equity,

shall be, and shall be forthwith delivered to the Secured Party to hold as, Collateral and shall,
if received by Grantor, be received in trust for the benefit of the Secured Party, be segregated
from the other property or funds of Grantor and be forthwith delivered to the Secured Party as
Pledged Equity in the same form as so received (with any necessary indorsement).

Section 5.3.
Actions by Secured Party. The Secured Party will execute and deliver (or
cause to be executed and delivered) to Grantor all such instruments as Grantor may reasonably
request for the purpose of enabling Grantor to receive the benefits Section 5.1 above and to
receive the dividends or interest payments that it is authorized to receive and retain pursuant to
Section 5.2 above.

Section 5.4.
Rights While an Event of Default Exists. Upon the occurrence and during
the continuance of an Event of Default:

(a) All rights of Grantor to receive the dividends, interest and other distributions that it
would otherwise be authorized to receive and retain pursuant to Section 5.2 shall automatically
cease, and all such rights shall thereupon become vested in the Secured Party, which shall
thereupon have the sole right to receive and hold as Pledged Equity such dividends, interest and
other distributions.

(b) All dividends, interest and other distributions that are received by Grantor contrary to
subsection (a) above shall be received in trust for the benefit of the Secured Party, shall be
segregated from other funds of Grantor, and shall be forthwith paid over to the Secured Party as
Pledged Equity in the same form as so received (with any necessary indorsement).

ARTICLE VI

Remedies, Powers and Authorizations

Section 6.1.
Normal Provisions Concerning the Collateral.

(a) Grantor irrevocably authorizes the Secured Party at any time and from time to time to
file, without the signature of Grantor, in any jurisdiction any amendments to existing
financing statements and any initial financing statements and amendments thereto that:

(i) indicate the Collateral as being:

(A) “all assets of Grantor and all proceeds thereof, and all rights and
privileges with respect thereto” or words of similar effect, regardless of whether
any particular asset comprised in the Collateral falls within the scope of Article 9
of the UCC or the granting clause of this Agreement; or

(B) of an equal or lesser scope or with greater detail;

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(ii) contain any other information required for the sufficiency or filing office
acceptance of any financing statement or amendment, including whether Grantor is an
organization, the type of organization and any organization identification number issued to
Grantor; and

(iii) properly effectuate the transactions described in the Note Documents, as
determined by the Secured Party in its discretion.

Grantor will furnish any such information to the Secured Party promptly upon request. A carbon,
photographic or other reproduction of this Agreement or any financing statement describing any
Collateral is sufficient as a financing statement and may be filed in any jurisdiction by the
Secured Party. Grantor ratifies and approves all financing statements heretofore filed by or on
behalf of the Secured Party in any jurisdiction in connection with the transactions contemplated
hereby.

(b) Grantor appoints the Secured Party as Grantor’s attorney in fact and proxy, with full
authority in the place and stead of Grantor and in the name of Grantor or otherwise, from time to
time in the Secured Party’s discretion, to take any action and to execute any instrument that the
Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement
including any action or instrument:

(i) to obtain and adjust any insurance required to be paid to the Secured Party
pursuant hereto;

(ii) to ask for, demand, collect, sue for, recover, compound, receive and give
acquittance and receipts for moneys due and to become due under or in respect of any
Collateral;

(iii) to receive, indorse and collect any drafts or other Instruments or
Documents;

(iv) to enforce any obligations included in the Collateral; and

(v) to file any claims or take any action or institute any proceedings that the Secured
Party may deem necessary or desirable for the collection of any Collateral or otherwise to
enforce the rights of Grantor or the Secured Party with respect to any Collateral.

Such power of attorney and proxy are coupled with an interest, are irrevocable, and are to be used
by the Secured Party for the sole benefit of the Beneficiaries.

(c) If Grantor fails to perform any agreement or obligation contained herein, the Secured
Party may, but shall have no obligation to, itself perform, or cause performance of, such agreement
or obligation, and the expenses of the Secured Party incurred in connection therewith shall be
payable by Grantor under Section 6.6.

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(d) If any Collateral in which Grantor has granted a security interest hereunder is at any
time in the possession or control of any warehouseman, bailee or any of Grantor’s agents, Grantor shall, upon the request of the Secured Party, notify such warehouseman, bailee or agent of
the Secured Party’s rights hereunder and instruct such Person to hold all such Collateral for the
Secured Party’s account subject to the Secured Party’s instructions. No such request by the Secured
Party shall be deemed a waiver of any provision hereof that was otherwise violated by such
Collateral being held by such Person prior to such instructions by Grantor.

(e) The Secured Party shall have the right, at any time in its discretion and without notice
to Grantor, to transfer to or to register in the name of the Secured Party or any of its nominees
any Investment Property or other Pledged Equity, subject only to the voting rights retained
pursuant to Section 5.1.

(f) Anything herein to the contrary notwithstanding:

(i) Grantor shall remain liable to perform all duties and obligations under the
agreements included in the Collateral to the same extent as if this Agreement had not been
executed.

(ii) The exercise by the Secured Party of any right hereunder shall not release Grantor
from any duty or obligation under any agreement included in the Collateral.

(iii) No Beneficiary shall have any obligation or liability under the agreements
included in the Collateral by reason of this Agreement or any other Note Document, nor shall
any Beneficiary be obligated to perform any duty or obligation of Grantor thereunder or take
any action to collect or enforce any claim for payment assigned hereunder.

Section 6.2.
Event of Default Remedies. If an Event of Default shall have occurred and
be continuing, the Secured Party may from time to time in its discretion, without limitation and
without notice except as expressly provided below:

(a) Exercise in respect of the Collateral, in addition to any other right and remedy provided
for herein, under the other Note Documents, or otherwise available to it, all the rights and
remedies of a secured party on default under the UCC (whether or not the UCC applies to the
affected Collateral) and any other applicable law.

(b) Require Grantor to, and Grantor will at its expense and upon request of the Secured Party
forthwith, assemble all or part of the Collateral as directed by the Secured Party and make it
(together with all books, records and information of Grantor relating thereto) available to the
Secured Party at a place to be designated by the Secured Party that is reasonably convenient to
both parties.

(c) Prior to the disposition of any Collateral:

(i) to the extent permitted by applicable Law, enter, with or without process of law
and without breach of the peace, any premises where any Collateral is or may be located, and
without charge or liability to the Secured Party seize and remove such Collateral from such
premises;

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(ii) have access to and use Company’s books, records, and information relating to
the Collateral; and

(iii) store or transfer any Collateral without charge in or by means of any storage or
transportation facility owned or leased by Grantor, process, repair or recondition any
Collateral or otherwise prepare it for disposition in any manner and to the extent the
Secured Party deems appropriate and, in connection with such preparation and disposition,
use without charge any copyright, trademark, trade name, patent or technical process used by
Grantor.

(d) Reduce its claim to judgment or foreclose or otherwise enforce, in whole or in part, the
security interest created hereby by any available judicial procedure.

(e) Dispose of, at its office, on the premises of Grantor or elsewhere, any Collateral, as a
unit or in parcels, by public or private proceedings, and by way of one or more contracts (but that
the sale of any Collateral shall not exhaust the Secured Party’s power of sale, and sales may be
made from time to time, and at any time, until all of the Collateral has been sold or until the
Secured Obligations have been paid and performed in full), and at any such sale it shall not be
necessary to exhibit any Collateral.

(f) Buy (or allow any Beneficiary to buy) Collateral, or any part thereof, at any public
sale.

(g) Buy (or allow any Beneficiary to buy) Collateral, or any part thereof, at any private sale
if any Collateral is of a type customarily sold in a recognized market or is of a type that is the
subject of widely distributed standard price quotations.

(h) Apply by appropriate judicial proceedings for appointment of a receiver for the
Collateral, or any part thereof, and Grantor consents to any such appointment.

(i) Comply with any applicable state or federal Law requirement in connection with a
disposition of Collateral and such compliance shall not be considered to affect adversely the
commercial reasonableness of any sale of Collateral.

(j) Sell Collateral without giving any warranty, with respect to title or any other
matter.

(k) Notify (or to require Grantor to notify) any and all obligors under any Account, Payment
Intangible, Instrument or other right to payment included in the Collateral of the assignment
thereof to the Secured Party under this Agreement and to direct such obligors to make payment of
all amounts due or to become due to Grantor thereunder directly to the Secured Party and, upon such
notification and at the expense of Grantor and to the extent permitted by law, to enforce
collection of any such Account, Payment Intangible, Instrument or other right to payment and to
adjust, settle or compromise the amount or payment thereof, in the same manner and to the same
extent as Grantor could have done. After Grantor receives notice that the Secured Party has given
(or after the Secured Party has required Grantor to give) any notice referred to above in this
subsection:

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(i) all amounts and proceeds (including instruments and writings) received by Grantor
in respect of any Account, Payment Intangible, Instrument or other right to payment
included in the Collateral shall be received in trust for the benefit of the Secured Party
hereunder, shall be segregated from other funds of Grantor and shall be forthwith paid over
to the Secured Party in the same form as so received (with any necessary indorsement) to
be, at the Secured Party’s discretion, either:

(A) held as cash collateral and released to Grantor upon the remedy of all
Defaults and Events of Default, or

(B) while an Event of Default is continuing, applied as specified in Section
6.3, and

(ii) Grantor shall not adjust, settle or compromise the amount or payment of any
Account, Payment Intangible, Instrument, or other right to payment included in the
Collateral or release wholly or partly any account debtor or obligor thereon or allow any
credit or discount thereon.

(l) Give any entitlement order, instruction or direction in respect of any of Investment
Property to any issuer, securities intermediary, or commodity intermediary, and to withhold its
consent to the exercise of any withdrawal rights or dealing rights by Grantor.

(m) Give an instruction to any depository bank that maintains a Deposit Account for Grantor
with respect to the disposition of funds credited thereto or restrict the ability of Grantor to
withdraw funds credited thereto, except as authorized in any other Note Document.

To the extent notice of sale shall be required by law with respect to Collateral, at least 10-days’
notice to Grantor of the time and place of any public sale or the time after which any private sale
is to be made shall constitute reasonable notification; provided that, if the Secured Party
fails in any respect to give such notice, its liability for such failure shall be limited to the
liability (if any) imposed on it by law under the UCC. The Secured Party shall not be obligated to
make any sale of Collateral regardless of notice of sale having been given. The Secured Party may
adjourn any public or private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and place to which it was
so adjourned.

Section 6.3.
Application of Proceeds. If an Event of Default shall have occurred and
be continuing, any cash held by or on behalf of the Secured Party and all cash proceeds received by
or on behalf of the Secured Party in respect of any sale of, collection from, or other realization
upon any Collateral may, in the discretion of the Secured Party, be held by the Secured Party as
collateral for, and/or then or at any time thereafter applied in whole or in part by the Secured
Party for the benefit of the Beneficiaries against, any Secured Obligation, in the following
manner:

(a) First, paid to the Secured Party for any amounts then owing to the Secured Party
pursuant to the Note Purchase Agreement or otherwise under the Note Documents or that has otherwise
been incurred by the Secured Party in connection with the payment or other satisfaction of any
Lien, encumbrance or adverse claim upon or against any Collateral or any
other action that the Secured Party determines is reasonably appropriate in connection with the
preservation or maintenance of the Collateral.

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(b) Second, paid to the Beneficiaries in payment of the Secured Obligations, ratably
in accordance with the respective amounts thereof then owing to the Beneficiaries or as otherwise
provided in the Note Purchase Agreement.

(c) Third, any surplus of such cash or cash proceeds held by or on the behalf of the
Secured Party and remaining after payment in full of all the Secured Obligations shall be paid over
to the applicable Grantor or to whatever Person may be lawfully entitled to receive such surplus.

Section 6.4.
Deficiency. If the proceeds of any sale, collection or realization of or
upon the Collateral of the Grantors by the Secured Party are insufficient to pay all Secured
Obligations and all other amounts to which the Secured Party is entitled, Grantor shall be liable
for the deficiency, together with interest thereon as provided in the Note Documents or (if no
interest is so provided) at such other rate as shall be fixed by applicable law, together with the
costs of collection and the reasonable fees of any attorneys employed by the Secured Party and/or
the other Beneficiaries to collect such deficiency. Collateral may be sold at a loss to Grantor,
and the Secured Party shall have no liability or responsibility to Grantor for such loss. Grantor
acknowledges that a private sale may result in less proceeds than a public sale.

Section 6.5.
Private Sales of Investment Property and Other Pledged Equity. The
Beneficiaries may deem it impracticable to effect a public sale of any Investment Property or other
Pledged Equity and may determine to make one or more private sales of such Investment Property or
other Pledged Equity to a restricted group of purchasers that will be obligated to agree, among
other things, to acquire the same for their own account, for investment and not with a view to the
distribution or resale thereof. Any such private sale may be at a price and on other terms less
favorable to the seller than the price and other terms that might have been obtained at a public
sale. Any such private sale nevertheless shall be deemed to have been made in a commercially
reasonable manner, and neither the Secured Party nor any other Beneficiary shall have any
obligation to delay sale of any such Investment Property or other Pledged Equity for the period of
time necessary to permit their registration for public sale under the Securities Act. Any offer to
sell any such Collateral that has been:

(i) publicly advertised on a bona-fide basis in a newspaper or other publication of
general circulation in the financial community of Oklahoma City, Oklahoma or New York, New
York (to the extent that such an offer may be so advertised without prior registration under
the Securities Act), or

(ii) made privately in the manner described above to not less than 15 bonafide
offerees,

shall be deemed to involve a “public disposition” under Section 9-610(c) of the UCC,
notwithstanding that such sale may not constitute a “public offering” under the Securities Act, and
any Beneficiary may bid for such Collateral.

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Section 6.6. Indemnity and Expenses. In addition to, but not in qualification or
limitation of, any similar obligations under other Note Documents:

(a) Grantors jointly and severally will indemnify the Secured Party, each other Beneficiary
and any agent appointed pursuant to Section 6.9 from and against all claims, losses and liabilities
growing out of or resulting from this Agreement (including enforcement of this Agreement), WHETHER
OR NOT SUCH CLAIMS, LOSSES AND LIABILITIES ARE IN ANY WAY OR TO ANY EXTENT CAUSED BY OR ARISING OUT
OF SUCH INDEMNIFIED PARTY’S OWN NEGLIGENCE OR STRICT LIABILITY, except to the extent such claims,
losses or liabilities are proximately caused by such indemnified party’s individual gross
negligence or willful misconduct.

(b) Grantors jointly and severally will upon demand pay to the Secured Party the amount of all
costs and expenses, including the fees and disbursements of the Secured Party’s counsel and of any
experts and agents, that the Secured Party may incur in connection with:

(i) the transactions that give rise to this Agreement;

(ii) the preparation of this Agreement and the perfection and preservation of this
security interest created under this Agreement;

(iii) the administration of this Agreement;

(iv) the custody, preservation, use or operation of, or the sale of, collection from,
or other realization upon, any Collateral;

(v) the exercise or enforcement of any right of the Secured Party hereunder; or

(vi) the failure by any Grantor to perform or observe any of the provisions hereof.

Section 6.7. Non-Judicial Remedies. In granting to the Secured Party the power to
enforce its rights hereunder without prior judicial process or judicial hearing, to the extent
permitted by applicable Law, Grantor waives, renounces and knowingly relinquishes any legal right
that might otherwise require the Secured Party to enforce its rights by judicial process and
confirms that such remedies are consistent with the usage of trade, are responsive to commercial
necessity and are the result of a bargain at arm’s length. The Secured Party may, however, in its
discretion, resort to judicial process.

Section 6.8. Limitation on Duty of the Secured Party in Respect of Collateral. Beyond
the exercise of reasonable care in the custody thereof, the Secured Party shall have no duty as to
any Collateral in its possession or control or in the possession or control of any agent or bailee
or as to the preservation of rights against prior parties or any other rights pertaining thereto.
The Secured Party shall be deemed to have exercised reasonable care in the custody of Collateral in
its possession if such Collateral is accorded treatment substantially equal to which that it
accords its own property, and the Secured Party shall not be liable or responsible for any loss or
damage to any Collateral, or for any diminution in the value thereof, by reason of the act or
omission of any warehouseman, carrier, forwarding agency, consignee or other agent or bailee selected by the
Secured Party in good faith.

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Section 6.9.
Appointment of Other Agents. At any time, in order to comply with any
legal requirement in any jurisdiction, the Secured Party may appoint any bank or trust company or
one or more other Persons, either to act as co-agent or co-agents, jointly with the Secured Party,
or to act as separate agent or agents on behalf of the Secured Party, with such power and authority
as may be necessary for the effective operation of the provisions hereof and may be specified in
the instrument of appointment.

ARTICLE VII

Miscellaneous

Section 7.1.
Notices. Any notice or communication required or permitted hereunder
shall be given in writing, sent in the manner provided in the Note Purchase Agreement, if to the
Secured Party or to a Grantor that is a party to the Note Purchase Agreement, to the address set
forth in the Note Purchase Agreement and, for any other Grantor, to the address specified opposite
its name on Schedule 1, or to such other address or to the attention of such other individual as
hereafter shall be designated in writing by the applicable party sent in accordance herewith. Any
such notice or communication shall be deemed to have been given as provided in the Note Purchase
Agreement for notices given thereunder.

Section 7.2.Amendments
and Waivers. Except as provided in Section 4.2(f) or 7.3, no
amendment of this Agreement shall be effective unless it is in writing and signed by Grantor and
the Secured Party, and no waiver of this Agreement or consent to any departure by Grantor herefrom
shall be effective unless it is in writing and signed by the Secured Party, and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for that
given and to the extent specified in such writing. In addition, all such amendments and waivers
shall be effective only if given with the necessary approvals required in the Note Purchase
Agreement. No such amendment shall bind any Grantor not a party thereto, but no such amendment with
respect to any Grantor shall require the consent of any other Grantor.

Section 7.3.Additional Grantors. Upon the execution and delivery, or authentication,
by any Person of a security agreement supplement in substantially the form of Exhibit A:

(a) such Person shall become a Grantor hereunder, each reference in this Agreement and the
other Note Documents to “Grantor” shall also mean and be a reference to such Person, and each
reference in this Agreement and the other Note Documents to “Collateral” shall also mean and be a
reference to the Collateral of such Person, and

(b) Schedule 2 attached to such security agreement supplement shall be incorporated into and
become a part of and supplement Schedule 2 hereto, and the Secured Party may attach such
supplemental schedule to such Schedule; and each reference to such Schedule shall mean and be a
reference to such Schedule as supplemented pursuant to such supplement.

[Security Agreement]

 

20

 

Section 7.4.
Preservation of Rights. No failure on the part of the Secured Party or
any other Beneficiary to exercise, and no delay in exercising, any right hereunder or under any
other Note Document shall operate as a waiver thereof; nor shall any single or partial exercise of any
such right preclude any other or further exercise thereof or the exercise of any other right. The
rights and remedies of the Secured Party provided herein and in the other Note Documents are
cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law or
otherwise.

Section 7.5.
Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or invalidity without invalidating the remaining portions hereof or thereof or
affecting the validity or enforceability of such provision in any other jurisdiction.

Section 7.6.
Survival. Each representation and warranty, covenant and other obligation
of Grantor herein shall survive the execution and delivery of this Agreement, the execution and
delivery of any other Note Document and the creation of the Secured Obligations.

Section 7.7.
Binding Effect and Assignment. This Agreement shall:

(a) be binding on Grantor and its successors, and

(b) inure, together with all rights and remedies of the Secured Party hereunder, to the
benefit of the Secured Party and the other Beneficiaries and their respective successors,
transferees and assigns.

Without limiting the generality of the foregoing, the Secured Party and any other Beneficiary may
(except as otherwise provided in any Note Document) pledge, assign or otherwise transfer any right
under any Note Document to any other Person, and such other Person shall thereupon become vested
with all benefits in respect thereof granted herein or otherwise. No right or duty of Grantor
hereunder may be assigned or otherwise transferred without the prior written consent of the Secured
Party.

Section 7.8.
Release of Collateral; Termination.

(a) Upon any sale, lease, transfer or other disposition of any Collateral of Grantor in
accordance with the Note Documents (other than sales of Inventory in the ordinary course of
business), the Secured Party will, at Grantor’s expense, execute and deliver to Grantor such
documents as Grantor shall reasonably request to evidence the release of such Collateral from the
assignment and security interest granted hereby; provided that:

(i) at the time of such request and such release no Default shall have occurred and be
continuing;

(ii) Grantor shall have delivered to the Secured Party, at least 10 Business Days prior
to the date of the proposed release (or by such lesser notice as the Secured Party may
approve), a written request for release describing the item of Collateral and the terms of
the sale, lease, transfer or other disposition in reasonable detail, including the price
thereof and any expenses in connection therewith, together with a form of release for
execution by the Secured Party and a certificate of Grantor to the effect that the transaction is in compliance with the Note Documents and such other matters as the
Secured Party may request; and

[Security Agreement]

 

21

 

(iii) if any Note Document provides for any application of the proceeds of any such
sale, lease, transfer or other disposition, or any payment to be made, in connection
therewith, such proceeds shall have been applied or payment made as provided therein.

(b) As and when provided in the Note Purchase Agreement, this Agreement and the security
interest created hereby shall terminate, all rights in the Collateral shall revert to Grantors and
the Secured Party, at a Grantor’s request and at its expense, will:

(i) return to Grantor such of Grantor’s Collateral in the Secured Party’s possession as
shall not have been sold or otherwise disposed of or applied pursuant to the terms hereof,
and

(ii) execute and deliver to Grantor such documents as Grantor shall reasonably request
to evidence such termination.

No Grantor is authorized to file any financing statement or amendment or termination statement with
respect to any financing statement originally filed in connection with this Agreement without the
prior written consent of the Secured Party, subject to Grantors’ rights under Sections 9-509(d)(2)
and 9-518 of the UCC. Notwithstanding the foregoing, Sections 6.6, 7.9 and 7.14 shall survive the
termination of this Agreement.

Section 7.9. Limitation on Interest. Section 12.9 of the Note Purchase
Agreement, which limits the interest for which Grantor is obligated, is incorporated herein
by reference.

Section 7.10. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

Section 7.11. Final Agreement. This Agreement and the other Note Documents represent
the final agreement between the parties hereto and may not be contradicted by evidence of prior,
contemporaneous, or subsequent oral agreements of the parties hereto. There are no unwritten oral
agreements between the parties hereto.

Section 7.12.
Counterparts; Facsimile. This Agreement may be separately executed in
any number of counterparts, all of that when so executed shall be deemed to constitute one and the
same Agreement. This Agreement may be validly delivered by facsimile or other electronic
transmission of an executed counterpart of the signature page hereof.

Section 7.13. Acceptance by the Secured Party. By its acceptance of the benefits
hereof, the Secured Party and the Beneficiaries shall be deemed to have agreed to be bound hereby
and to perform any obligation on their part set forth herein.

[Security Agreement]

 

22

 

Section 7.14.
Jurisdiction, Etc. this Agreement shall be
governed by and construed in accordance with the internal laws of the State of New York, without regard to principles of conflicts of laws.
Grantor hereby irrevocably (a) submits itself to the non-exclusive
jurisdiction of the state and federal courts sitting in the State and
County of New York, (b) agrees and consents that service of process
may be made upon it and any of its Subsidiaries in any legal proceeding
relating to the Note Documents or the Obligations by any means allowed under New York or federal law, and (c) waives any objection that it may
now or hereafter have to the venue of any such proceeding being in such a court and any claim that any such proceeding brought in such a court
has been brought in an inconvenient forum. Grantor hereby makes the
foregoing submissions, agreements, consents and waivers on behalf of
and with respect to each of its Subsidiaries.

Section 7.15. Restatement. This Agreement renews and restates that certain Security
Agreement dated as of August 29, 2005, executed by G M Oil Properties, Inc., an Oklahoma
corporation as successor by merger to Steadfast Resources, Inc. (“GM”), in favor of the Secured
Party (as amended, supplemented, restated or otherwise modified from time to time, the
“Original Security Agreement”). The Original Security Agreement secured certain obligations
under that certain Note Purchase Agreement dated as of August 29, 2006 by and among, Secured Party
and the Holders (as defined therein), which obligations were assumed by Company pursuant to that
certain Assumption Agreement of even date herewith. All of the terms and provisions of this
Agreement shall supersede the terms and provisions of the Original Security Agreement. This
Agreement renews, extends and continues without interruption all Liens existing by the Original
Security Agreement, although the terms and provisions and conditions of such Liens shall hereafter
be governed in all respects by this Agreement.

[The remainder of this page is intentionally left blank]

[Security Agreement]

 

23

 

IN WITNESS WHEREOF, Grantor has executed and delivered this Agreement as of the date
first-above written.

	 	 	 	 	 
	 	RIO VISTA PENNY LLC

 	 
	 	By:  	/s/
Ian Bothwell 
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	RIO VISTA GO LLC

 	 
	 	By:  	/s/
Ian Bothwell 
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	RIO VISTA ECO LLC

 	 
	 	By:  	/s/
Ian Bothwell 
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	GO, LLC

 	 
	 	By:  	/s/
Ian Bothwell 
 	 
	 	 	Ian Bothwell 	 
	 	 	Manager 	 
	 
	 	MV PIPELINE COMPANY

 	 
	 	By:  	/s/
Ian Bothwell 
 	 
	 	 	Ian Bothwell 	 
	 	 	President 	 
	 

[Signature Page to Security Agreement]

 

 

 

SCHEDULE 1

to

SECURITY AGREEMENT

Address for Notices and Jurisdiction of Organization

	 	 	 	 	 	 	 
	 	 	 	 	Jurisdiction of	 	 
	Name of Grantor	 	Type of Organization	 	Organization	 	Address for Notices
	 
	 	 	 	 	 	 
	Rio Vista Penny LLC

	 	Limited liability company
	 	Oklahoma
	 	2601 Northwest

Expressway #902E
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Oklahoma City,

Oklahoma 73112
	 
	 	 	 	 	 	 
	Rio Vista ECO LLC

	 	Limited liability company
	 	Oklahoma
	 	2601 Northwest

Expressway #902E
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Oklahoma City,

Oklahoma 73112
	 
	 	 	 	 	 	 
	Rio Vista GO LLC

	 	Limited liability company
	 	Oklahoma
	 	2601 Northwest

Expressway #902E
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Oklahoma City,

Oklahoma 73112
	 
	 	 	 	 	 	 
	GO, LLC

	 	Limited liability company
	 	Oklahoma
	 	2601 Northwest

Expressway #902E
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Oklahoma City,

Oklahoma 73112
	 
	 	 	 	 	 	 
	MV Pipeline 

Company

	 	Corporation
	 	Oklahoma
	 	2601 Northwest

Expressway #902E
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Oklahoma City,

Oklahoma 73112

[Security Agreement]

Schedule 1

 

 

 

SCHEDULE 2

to

SECURITY AGREEMENT

Scheduled Collateral

INDEBTEDNESS

Promissory Note dated November 19, 2007 from Rio Vista GO LLC, as Borrower, to
 Rio Vista Penny LLC,
as Lender, in the principal amount of $2,200,000, payable on demand.

DEPOSIT ACCOUNTS

None.

EQUITY AND RELATED MATTERS

50,000
shares of common stock in MV Pipeline Company, which constitutes 100%
of the 
issued and
outstanding stock in MV Pipeline Company.

LETTER OF CREDIT RIGHTS

None.

COMMERCIAL TORT CLAIMS

None.

[Security Agreement]

Schedule 2

 

 

 

EXHIBIT A

to

SECURITY AGREEMENT

FORM OF GRANTOR ACCESSION AGREEMENT

                    
__, 20 __

TCW Asset Management Company,

as the Secured Party for the Beneficiaries referred to

in the Security Agreement
referred to below

	 	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	Attn:
	 	 	 	 
	 

	 	 	 	 

Ladies and Gentlemen:

The undersigned refers to:

(i) the Note Purchase Agreement dated as of November 19, 2007 (as heretofore or
hereafter amended, supplemented or restated, the “Note Purchase Agreement”) among
Rio Vista Penny LLC, an Oklahoma limited liability company the Holders party thereto, and
you, as administrative agent, and

(ii) the Security Agreement dated as of November 19, 2007 (the “Security
Agreement”) made by the Grantors from time to time party thereto in your favor for the
benefit of the Beneficiaries.

Terms defined in the Note Purchase Agreement or the Security Agreement and not otherwise defined
herein are used herein as defined in the Note Purchase Agreement or the Security Agreement.

SECTION 1. Grant of Security. The undersigned grants to you, for the benefit of the
Beneficiaries, a security interest in all of its right, title and interest in and to all of the
Collateral of the undersigned, whether now owned or hereafter acquired by the undersigned, wherever
located and whether now or hereafter existing or arising, including the property of the undersigned
set forth on the attached supplemental schedules to the Schedules to the Security Agreement.

SECTION 2. Security for Obligations. The grant of a security interest in, the
Collateral by the undersigned under this Agreement and the Security Agreement secures the payment
of the Secured Obligations. Without limiting the generality of the foregoing, this Security
Agreement Supplement and the Security Agreement secures the payment of all amounts that constitute
part of the Secured Obligations and that would be owed by any Restricted Person to any Beneficiary
under the Note Documents but for the fact that such Secured Obligations are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a
Restricted Person.

[Security Agreement]

 

Exhibit A
— 1

 

 

SECTION 3. Information Relating to the Undersigned. The undersigned is an entity of
the type specified on Schedule 1 and is organized under the laws of the jurisdiction specified on
Schedule 1 and its address for notices is specified on Schedule 1. Its organizational
identification number, if any, is set forth in Schedule 1.

SECTION 4. Supplement to Security Agreement Schedule 2. The undersigned has attached
hereto a supplemental Schedule 2 to Schedule 2 to the Security Agreement, and the undersigned
certifies, as of the date first-above written, that such supplemental schedule has been prepared by
the undersigned in substantially the form of Schedule to the Security Agreement and is true and
complete.

SECTION
5. Representations, Warranties, Agreements, Waivers. The undersigned as of the
date hereof makes each representation, warranty, agreement (including indemnification agreements),
waiver, and acknowledgement set forth in the Security Agreement (as supplemented by the attached
supplemental schedules).

SECTION 6. Obligations Under the Security Agreement. As of the date first-above
written, the undersigned hereby joins the Security Agreement as a party thereto and as a Grantor
thereunder and hereby agrees to be bound as a Grantor by all of the terms and provisions of the
Security Agreement. As of the date first-above written, each reference in the Security Agreement to
a “Grantor” shall also mean and be a reference to the undersigned.

SECTION 7. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the jurisdiction whose laws the Security Agreement provides will
govern such agreement.

	 	 	 	 	 
	 	Very truly yours,

[GRANTOR]

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	ACCEPTED AND AGREED AS
OF THE DATE
FIRST-ABOVE STATED.	 	 
	 
	 	 	 	 
	TCW ASSET MANAGEMENT COMPANY, as Secured Party	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

[Security Agreement]

 

Exhibit A — 2

 

 

SCHEDULE 1

to

SECURITY AGREEMENT SUPPLEMENT

Address for Notices and Jurisdiction of Organization

	 	 	 	 	 	 	 
	 	 	 	 	Jurisdiction of	 	 
	Name of Grantor	 	Type of Organization	 	Organization	 	Address for Notices
	 
	 	 	 	 	 	 

[Security Agreement]

 

Exhibit A Schedule 1

 

 

SCHEDULE 2

to

SECURITY AGREEMENT SUPPLEMENT

Scheduled Collateral

AGREEMENTS

[List]

INDEBTEDNESS

[List]

DEPOSIT ACCOUNTS

[List]

EQUITY AND RELATED MATTERS

[Include descriptions of equity, percentage ownership and any shareholder, voting,

operating or similar agreements.]

LETTER OF CREDIT RIGHTS

[List]

COMMERCIAL TORT CLAIMS

[List]

[Security Agreement]

 

Exhibit A Schedule 2

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