Document:

Exhibit 10.5

 

SECOND
LIEN NOTES PLEDGE AND SECURITY AGREEMENT

 

This SECOND LIEN NOTES PLEDGE AND SECURITY
AGREEMENT, dated as of March 15, 2010 (as amended, supplemented, amended
and restated or otherwise modified from time to time, this “Security
Agreement”), is made by REDDY ICE CORPORATION, a Nevada corporation (the “Company”),
REDDY ICE HOLDINGS, INC., a Delaware corporation (“Parent”) and each
Subsidiary of the Company (collectively, the “Subsidiary Grantors” and together
with the Company and Parent, the “Grantors”) from time to time a party
to this Security Agreement, in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION
(“Wells Fargo”), as collateral agent (together with its successor(s) thereto
in such capacity, the “Collateral Agent”) for each of the Secured
Parties (terms used herein have the meanings set forth in or incorporated by
reference in Article I).

 

W I T N E S S E T H :

 

WHEREAS, pursuant to the Indenture, dated as of March 15,
2010  (as amended, supplemented, amended
and restated or otherwise modified from time
to time, the “Indenture”), among the Company, Parent , the Subsidiary
Guarantors, the Trustee, and the Collateral Agent, the Company has issued the
Notes;

 

WHEREAS, pursuant to the Indenture, dated as of March 15,
2010  (as amended, supplemented, amended
and restated or otherwise modified from time
to time, the “First Lien Indenture”), among the Company and the Trustee
and the Collateral Agent in its capacity as representative of the holders of
the First Lien Notes, the Company has issued the First Lien Notes;

 

WHEREAS, concurrently with the execution and
delivery of this Agreement, the Collateral Agent, JP Morgan Chase Bank,
National Association, in its capacity as collateral agent under the Credit
Agreement (the “Credit Agreement Collateral Agent”) and Wells Fargo, in
its capacity as collateral agent for the First Lien Notes (the “First Lien
Notes Collateral Agent,”and together with the Credit Agreement Collateral
Agent, the “First Lien Collateral Agents”), are entering into that
certain junior lien intercreditor agreement (as amended, supplemented,
restated, replaced or otherwise modified from time to time, the “Intercreditor
Agreement”);

 

WHEREAS, as a condition precedent to the issuance of
the Notes under the Indenture, each Grantor is required to execute and deliver
this Security Agreement;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, each Grantor
agrees, for the benefit of each Secured Party, as follows:

 

ARTICLE
I

DEFINITIONS

 

SECTION 1.1. 
Certain Terms.  The
following terms (whether or not underscored) when used in this Security
Agreement, including its preamble and recitals, shall have the 

 

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following meanings (such
definitions to be equally applicable to the singular and plural forms thereof):

 

“Additional Secured Debt Documents” means any
document or instrument executed and delivered with respect to any Additional
Secured Obligations.

 

“Additional Secured Obligations” is defined
in Section 8.7.

 

“Additional Secured Parties” shall mean the
holders from time to time of Additional Secured Obligations.

 

“Authorized Representative” means (i) the
Trustee for so long as the Notes are Secured Obligations hereunder and (ii) any
other trustee, agent or representative designated as an “Authorized
Representative” for any Additional Secured Parties in an Additional Secured
Party Joinder delivered to the Collateral Agent and the other Authorized
Representatives in accordance with Section 7.7 for so long as the
Additional Secured Obligations for which such party is serving in such capacity
constitutes Secured Obligations hereunder; provided that so long as
there are no Additional Secured Obligations, the Trustee will be deemed to be
the only Authorized Representative for the Secured Parties.

 

“Class” with respect to any Secured
Obligations, refers to all Secured Obligations under a Secured Agreement or
group of related Secured Agreements with respect to which a single Authorized
Representative is acting as such hereunder.

 

“Collateral” is defined in Section 2.1.

 

“Collateral Account” is defined in clause (b) of
Section 4.3.

 

“Collateral Agent” is defined in the preamble.

 

“Company” is defined in the preamble.

 

“Computer Hardware and Software Collateral”
means:

 

(a)                                  all computer and other
electronic data processing hardware, integrated computer systems, central
processing units, memory units, display terminals, printers, features, computer
elements, card readers, tape drives, hard and soft disk drives, cables,
electrical supply hardware, generators, power equalizers, accessories and all
peripheral devices and other related computer hardware;

 

(b)                                 all software programs
(including both source code, object code and all related applications and data
files), whether now owned, licensed or leased or hereafter acquired by a
Grantor, designed for use on the computers and electronic data processing hardware
described in clause (a) above;

 

(c)                                  all firmware associated
therewith;

 

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(d)                                 all documentation (including
flow charts, logic diagrams, manuals, guides and specifications) with respect
to such hardware, software and firmware described in preceding clauses (a) through
(c); and

 

(e)                                  all rights with respect to
all of the foregoing, including any and all copyrights, licenses, options,
warranties, service contracts, program services, test rights, maintenance
rights, support rights, improvement rights, renewal rights and indemnifications
and any substitutions, replacements, additions or model conversions of any of
the foregoing.

 

“Control Agreement” means an agreement in
form and substance reasonably satisfactory to the Collateral Agent which
provides for the Collateral Agent to have “control” as defined in Section 8-106
of the UCC, as such term relates to investment property (other than certificated
securities or commodity contracts), or as used in Section 9-106 of the
UCC, as that term relates to Deposit Accounts or commodity contracts).

 

“Copyright Collateral” means all copyrights
of the Grantors, whether statutory or common law, registered or unregistered
and whether published or unpublished, now or hereafter in force throughout the
world including all of the Grantors’ rights, titles and interests in and to all
copyrights registered in the United States Copyright Office or anywhere else in
the world also including the copyrights referred to in Item A of Schedule
V hereto, and registrations and recordings thereof and all applications for
registration thereof, whether pending or in preparation of all copyright
licenses, including each copyright license referred to in Item B of Schedule
V hereto.

 

“Discharge of First Lien Obligations” shall
have the meaning given such term by the Intercreditor Agreement.

 

“Distributions” means all non-cash dividends
paid on Capital Stock constituting Collateral, non-cash liquidating dividends
paid on Capital Stock constituting Collateral shares of Capital Stock
constituting Collateral resulting from (or in connection with the exercise of)
stock splits, reclassifications, warrants, options, non-cash dividends,
mergers, consolidations, and all other non-cash distributions (whether similar
or dissimilar to the foregoing) on or with respect to any Capital Stock
constituting Collateral, but excluding Dividends.

 

“Dividends” means cash dividends and cash
distributions with respect to any Capital Stock constituting Collateral that
are not a liquidating dividend.

 

“Event of Default” means an “Event of Default”
under and as defined in the Indenture or any Additional Secured Debt Document.

 

“Filing Statements” means all UCC financing
statements or other similar financing statements and UCC termination statements
required pursuant to the Notes Documents.

 

“First Lien Collateral Agents” is defined in
the recitals.

 

“First Lien Indenture” is defined in the
recitals.

 

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“First Lien Notes Collateral Agents” is defined
in the recitals.

 

“First Lien Secured Parties” means the “Secured
Parties” as defined in the First Lien Security Agreement.

 

“First Lien Notes” means the $300.0 million aggregate principal of first
lien senior secured notes due 2015 issued by the Company pursuant to the First
Lien Indenture and any additional notes issued pursuant to the First Lien
Indenture.

 

“First Lien Security Agreement” means the First
Lien Security Agreement dated as of March 15, 2010 made by the Grantors in
favor of the First Lien Notes Collateral Agent for the benefit of the First
Lien Secured Parties, as amended, amended and restated, supplemented or otherwise
modified from time to time.

 

“Foreign Pledge Agreement” means any
supplemental pledge agreement governed by the laws of a jurisdiction other than
the United States (or a State thereof) or the District of Columbia executed and
delivered by Parent, the Company or any of its Subsidiaries pursuant to the
terms of this Security Agreement or the Indenture, in form and substance
reasonably satisfactory to the Collateral Agent, as may be necessary or desirable
under the laws of organization or incorporation of a Subsidiary to further
protect or perfect the Lien on and security interest in any Collateral.

 

“Governmental Authority” means the government
of the United States, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other Person exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

 

“Grantors” is defined in the preamble.

 

“Inchoate Liens” means Liens of the type set
forth in clause (2), (3), (9), (10), (12), (16) and (18) of the definition of
Permitted Liens (as defined in the Indenture).

 

“Indenture” is defined in the recitals.

 

“Intellectual Property Collateral” means,
collectively, the Computer Hardware and Software Collateral, the Copyright
Collateral, the Patent Collateral, the Trademark Collateral and the Trade Secrets
Collateral.

 

“Intercreditor Agreement” is defined in the
recitals.

 

“Material Adverse Effect” means a material
adverse effect on (a) the condition (financial or otherwise), business,
operations, assets, liabilities (contingent or otherwise) or properties of the
Company and its Subsidiaries taken as a whole, (b) the rights and remedies
of any Secured Party under the Notes Documents taken as a whole or (c) the
ability of Parent, the Company or any Subsidiary Guarantor to perform its
Secured Obligations under any Notes Document.

 

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“Mortgaged Property” means “Collateral” as
defined in each Mortgage.

 

“Notes Documents” means the Notes, the
Indenture, the Collateral Documents and the Intercreditor Agreement.

 

“Obligations”
means any principal, interest (including any interest accruing subsequent to
the filing of a petition in bankruptcy, reorganization or similar proceeding at
the rate provided for in the documentation with respect thereto, whether or not
such interest is an allowed claim under applicable state, federal or foreign
law), premium, penalties, fees, indemnifications, reimbursements (including
reimbursement obligations with respect to letters of credit and banker’s
acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities, payable by any Obligor under the Indenture, the Notes,
the Intercreditor Agreement or any other Notes Document.

 

“Obligor” means, as the context may require,
Parent, the Company, Subsidiary Guarantors and each other Person (other than a
Secured Party) obligated under any Notes Document.

 

“Organic Document” means, relative to any
Grantor, as applicable, its certificate of incorporation, by laws, certificate
of partnership, partnership agreement, certificate of formation, limited
liability agreement, operating agreement and all shareholder agreements, voting
trusts and similar arrangements applicable to any of such Grantor’s Capital
Stock.

 

“Parent” is defined in the preamble hereto.

 

“Patent Collateral” means:

 

(a)                                  all letters patent and
applications for letters patent throughout the world, including all patent
applications in preparation for filing and each patent and patent application
referred to in Item A of Schedule III hereto;

 

(b)                                 all reissues, divisions,
continuations, continuations-in-part, extensions, renewals and reexaminations
of any of the items described in clause (a); and

 

(c)                                  all patent licenses, and
other agreements providing a Grantor with the right to use any items of the
type referred to in clauses (a) and (b) above,
including each patent license referred to in Item B of Schedule III
hereto.

 

“Receivables” is defined in clause (c) of
Section 2.1.

 

“Related Contracts” is defined in clause (c) of
Section 2.1.

 

“Secured Agreements” shall mean (i) this
Security Agreement, the Indenture, the Notes and the other Collateral Documents
and (ii) Additional Secured Debt Documents and, in each case of clause (i) and
(ii) above, all other documents, certificates and instruments relating to,
arising out of, or in any way connected therewith.

 

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“Secured Obligations” shall mean (i) all
Obligations and (ii) if any Additional Secured Obligations are incurred in
accordance with Section 7.7, all obligations, liabilities and indebtedness
(including, without limitation, principal, premium, interest (including,
without limitation, all interest that accrues after the commencement of any
case, proceeding or other action relating to the bankruptcy, insolvency,
reorganization or similar proceeding of any Grantor at the rate provided for in
the respective documentation, whether or not a claim for post-petition interest
is allowed in any such proceeding)) owing to any holder of Additional Secured
Obligations (that has been designated as Additional Secured Obligations
pursuant to Section 7.7) under any Additional Secured Debt
Documents.

 

“Secured Parties” shall mean, collectively, (i) the
Collateral Agent, (ii) the Trustee and the holders of the Notes and (iii) the
Additional Secured Parties and their Authorized Representatives; provided
that such Additional Secured Parties or their Authorized Representative comply
with Section 7.7 hereof and execute an Additional Secured Party Joinder.

 

“Securities Act” is defined in clause (a) of
Section 6.2.

 

“Security Agreement” is defined in the preamble.

 

“Termination Date” means the date on which
all Secured Obligations have been paid in full in cash and no commitments
remain under any Additional Secured Debt Documents.

 

“Trademark Collateral” means:

 

(a)                                  (i) all trademarks,
trade names, corporate names, company names, business names, fictitious
business names, trade styles, service marks, certification marks, collective
marks, logos and other source or business identifiers, and all goodwill of the
business associated therewith, now existing or hereafter adopted or acquired
including those referred to in Item A of Schedule IV hereto,
whether currently in use or not, all registrations and recordings thereof and
all applications in connection therewith, whether pending or in preparation for
filing, including registrations, recordings and applications in the United
States Patent and Trademark Office or in any office or agency of the United
States of America or any State thereof or any other country or political
subdivision thereof or otherwise, and all common-law
rights relating to the foregoing, and (ii) the right to obtain all
reissues, extensions or renewals of the foregoing (collectively referred to as
the “Trademark”);

 

(b)                                 all Trademark licenses for
the grant by or to a Grantor of any right to use any Trademark, including each
Trademark license referred to in Item B of Schedule IV hereto;

 

(c)                                  all of the goodwill of the
business connected with the use of, and symbolized by the items described in,
clause (a), and to the extent applicable clause (b); and

 

(d)                                 the right to sue third
parties for past, present and future infringement of any Trademark Collateral
described in clause (a) and, to the extent applicable, clause (b).

 

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“Trade Secrets Collateral” means all common
law and statutory trade secrets and all other confidential, proprietary or
useful information and all know-how obtained by or used in or contemplated at
any time for use in the business of a Grantor (all of the foregoing being collectively
called a “Trade Secret”), whether or not such Trade Secret has been
reduced to a writing or other tangible form, including all
documents and things embodying, incorporating or referring in any way to such
Trade Secret, all Trade Secret licenses, including each Trade Secret licenses
referred to in Schedule VI hereto.

 

“Trustee” means Wells Fargo in its capacity as trustee under the
Indenture and permitted successors and assigns.

 

“Wells Fargo” is defined in the preamble.

 

SECTION 1.2. 
Indenture Definitions. 
Unless otherwise defined herein or the context otherwise requires, terms
used in this Security Agreement, including its preamble recitals, have the meanings
provided in the Indenture.

 

SECTION 1.3. 
UCC Definitions.  Unless
otherwise defined herein or in the Indenture or the context otherwise requires,
terms for which meanings are provided in the UCC are used in this Security
Agreement (whether or not capitalized herein), including its preamble and
recitals, with such meanings.

 

ARTICLE
II

SECURITY
INTEREST

 

SECTION 2.1. 
Grant of Security Interest. 
Each Grantor hereby grants to the Collateral Agent, for its benefit and
the ratable benefit of each other Secured Party, a continuing security interest
in all of such Grantor’s following property, whether tangible or intangible,
whether now or hereafter existing, owned or acquired by such Grantor, and
wherever located (collectively, the “Collateral”):

 

(a)                                  (i) all investment
property in which such Grantor has an interest (including the Capital Stock of
each issuer of such Capital Stock described in Schedule I hereto) and (ii) all
other Capital Stock which are interests in limited liability companies or partnerships
in which such Grantor has an interest (including the Capital Stock of each issuer
of such Capital Stock described in Schedule I hereto), in each case
together with Dividends and Distributions payable in respect of the Collateral
described in the foregoing clauses (a)(i) and (a)(ii);

 

(b)                                 all goods, including all
equipment and inventory in all of its forms;

 

(c)                                  all accounts, contracts,
contract rights, chattel paper, documents, instruments, promissory notes and
general intangibles (including tax refunds and all payment intangibles),
whether or not arising out of or in connection with the sale or lease of goods
or the rendering of services, and all rights in and to all security agreements,
guaranties, leases and other contracts securing or otherwise relating to any
such accounts, contracts, contract rights, chattel paper, documents,
instruments, promissory notes, general intangibles 

 

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and payment intangibles (all
of the foregoing collectively referred to as the “Receivables”, and any
and all such security agreements, guaranties, leases and other contracts
collectively referred to as the “Related Contracts”);

 

(d)                                 all Intellectual Property
Collateral;

 

(e)                                  all Deposit Accounts;

 

(f)                                    all letter of credit rights;

 

(g)                                 all commercial tort claims
in which such Grantor has rights (including as a plaintiff) listed on Schedule
VII;

 

(h)                                 the Collateral Account, all
cash, checks, drafts, notes, bills of exchange, money orders, other like
instruments and all investment property held in the Collateral Account (or in
any sub-account thereof) and all interest and earnings in respect thereof;

 

(i)                                     all books, records,
writings, data bases, information and other property relating to, used or
useful in connection with, evidencing, embodying, incorporating or referring
to, any of the foregoing in this Section;

 

(j)                                     all other property and
rights of every kind and description and interests therein; and

 

(k)                                  all products, offspring,
rents, issues, profits, returns, income, supporting obligations and proceeds of
and from any and all of the foregoing Collateral (including proceeds which
constitute property of the types described in clauses (a) through (j),
and, to the extent not otherwise included, all payments under insurance (whether
or not the Collateral Agent is the loss payee thereof), or any indemnity,
warranty or guaranty, payable by reason of loss or damage to or otherwise with
respect to any of the foregoing Collateral).

 

Notwithstanding the foregoing, “Collateral”
shall not include (collectively, the “Excluded Property”) (i) any permit
or license or any contractual obligation entered into by Parent, the Company or
any Subsidiary Guarantor (A) that prohibits or requires the consent of any
Person other than the Company and its Affiliates which has not been obtained as
a condition to the creation by Parent, the Company or the applicable Subsidiary
Guarantor of a Lien on any right, title or interest in such permit, license or
contractual obligation or (B) to the extent that any requirement of law
applicable thereto prohibits the creation of a Lien thereon, but only, with
respect to the prohibition in clauses (A) and (B), to the extent, and
for as long as, such prohibition is not terminated or rendered unenforceable or
otherwise deemed ineffective by the Uniform Commercial Code or any other
requirement of law, (ii) property owned by the Company or any Subsidiary
Guarantor that is subject to a Lien permitted by clause (6) of the
definition of “Permitted Liens” (as defined in the Indenture) if the
contractual obligation pursuant to which such Lien is granted (or in the document
providing for such Lien) prohibits or requires the consent of any Person other
than the Company and its Affiliates which has not been obtained as a condition
to the creation of any other Lien on such item of property, (iii) any “intent
to use” trademark applications for which a 

 

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statement of use has not been filed (but only
until such statement is filed), (iv) cash collateral for (A) letters
of credit in an amount not to exceed $15.0 million and (B) Hedging
Obligations entered into in the ordinary course of business in an aggregate
amount not to exceed $5.0 million, (v) any general intangibles to the
extent containing an enforceable restriction against the granting of a security
interest therein, (vi) leasehold real property interests and (vii) investment
property consisting of voting Capital Stock of an issuer that is a Foreign
Subsidiary (other than a Foreign Subsidiary that (i) is treated as a
partnership under the Code or (ii) is not treated as an entity that is
separate from (A) such Grantor; (B) any Person that is treated as
partnership under the Code or (C) any “United States person” (as defined
in Section 7701(a)(30) of the Code)) of such Grantor, in excess of 65% of
the total combined voting power of all Capital Stock of each such Foreign
Subsidiary; provided, however, that “Excluded Property” shall
not include any proceeds, products, substitutions or replacements of Excluded
Property (unless such proceeds, products, substitutions or replacements would
otherwise constitute Excluded Property), which assets subject to such Lien
shall not constitute Collateral under any circumstance.

 

Notwithstanding anything to the contrary in this Section 2.1,
in the event that Rule 3-16 of Regulation S-X under the Securities
Act (as amended or modified from time to time) is interpreted by the SEC to
require (or is replaced with another rule or regulation, or any other law,
rule or regulation is adopted, which would require) the filing with the
SEC (or any other Governmental Authority) of separate financial statements of
any Subsidiary of the Company due to the fact that such Subsidiary’s Capital
Stock secures the Notes, then the Capital Stock of such Subsidiary shall
automatically be deemed not to be part of the Collateral but only to the extent
necessary to not be subject to such requirement (the “Rule 3-16 Exception”).
In such event, the Collateral Documents may be amended or modified, without the
consent of any Holder, to the extent necessary to release the Security
Interests in favor of the Collateral Agent on the shares of Capital Stock that
are so deemed to no longer constitute part of the Collateral. In the event that
Rule 3-16 of Regulation S-X under the Securities Act (as amended or
modified from time to time) is interpreted by the SEC to permit (or are
replaced with another rule or regulation, or any other law, rule or
regulation is adopted, which would permit) such Subsidiary’s Capital Stock to
secure the Notes in excess of the amount then pledged without the filing with
the SEC (or any other Governmental Authority) of separate financial statements
of such Subsidiary, then the Capital Stock of such Subsidiary shall automatically
be deemed to be a part of the Collateral but only to the extent necessary to
not be subject to any such financial statement requirement.

 

SECTION 2.2. 
Security for Obligations. 
This Security Agreement and the Collateral in which the Collateral Agent
for the benefit of the Secured Parties is granted a security interest hereunder
by the Grantors secure the payment of all Secured Obligations now or hereafter
existing.

 

SECTION 2.3. 
Grantors Remain Liable. 
Anything herein to the contrary notwithstanding

 

(a)                                  the Grantors will remain
liable under the contracts and agreements included in the Collateral to the
extent set forth therein, and will perform all of their duties and obligations
under such contracts and agreements to the same extent as if this Security
Agreement had not been executed;

 

9

 

(b)                                 the exercise by the
Collateral Agent of any of its rights hereunder will not release any Grantor
from any of its duties or obligations under any such contracts or agreements
included in the Collateral; and

 

(c)                                  no Secured Party will have
any obligation or liability under any contracts or agreements included in the
Collateral by reason of the security interests granted by this Security
Agreement, nor will any Secured Party be obligated to perform any of the obligations
or duties of any Grantor thereunder or to take any action to collect or enforce
any claim for payment assigned hereunder.

 

SECTION 2.4. 
Security Interest Absolute, etc. 
This Security Agreement shall in all respects be a continuing, absolute,
unconditional and irrevocable grant of security interest and shall remain in
full force and effect until the Termination Date or until otherwise released in
accordance with Section 7.5. 
All rights of the Secured Parties and the security interests granted to
the Collateral Agent (for its benefit and the ratable benefit of each other
Secured Party) hereunder, and all obligations of the Grantors hereunder, shall,
in each case, be absolute, unconditional and irrevocable irrespective of:

 

(a)                                  any lack of validity,
legality or enforceability of any Notes Document;

 

(b)                                 the failure of any Secured
Party (i) to assert any claim or demand or to enforce any right or remedy
against any Obligor or any other Person (including any other Guarantor) under
the provisions of any Notes Document or otherwise, or (ii) to exercise any
right or remedy against any other guarantor (including any other Guarantor) of,
or collateral securing, any Secured Obligations;

 

(c)                                  any change in the time,
manner or place of payment of, or in any other term of, all or any part of the
Secured Obligations, or any other extension, compromise or renewal of any
Secured Obligation;

 

(d)                                 any reduction, limitation,
impairment or termination of any Secured Obligations for any reason, including
any claim of waiver, release, surrender, alteration or compromise, and shall
not be subject to (and each Grantor hereby waives any right to or claim of) any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason
of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability
of, or any other event or occurrence affecting, any Secured Obligations or otherwise;

 

(e)                                  any amendment to,
rescission, waiver, or other modification of, or any consent to or departure
from, any of the terms of any Notes Document;

 

(f)                                    any addition, exchange or
release of any collateral or of any Person that is (or will become) a guarantor
(including the Grantors hereunder) of the Secured Obligations, or any surrender
or non-perfection of any collateral, or any amendment to or waiver or release
or addition to, or consent to or departure from, any other guaranty held by any
Secured Party securing any of the Secured Obligations; or

 

10

 

(g)                                 any other circumstance which
might otherwise constitute a defense available to, or a legal or equitable
discharge of, any Obligor, any surety or any guarantor.

 

SECTION 2.5. 
Postponement of Subrogation. 
Each Grantor agrees that it will not exercise any rights which it may
acquire by way of rights of subrogation under any Notes Document to which it is
a party.  No Grantor shall seek or be
entitled to seek any contribution or reimbursement from any Obligor, in respect
of any payment made under any Notes Document or otherwise, until following the
Termination Date.  Any amount, paid to
such Grantor on account of any such subrogation rights prior to the Termination
Date shall be held in trust for the benefit of the Secured Parties and shall
immediately be paid and turned over to the Collateral Agent for the benefit of
the Secured Parties in the exact form received by such Grantor (duly endorsed
in favor of the Collateral Agent, if required), to be credited and applied
against the Secured Obligations, whether matured or unmatured, in accordance
with Section 6.1; provided that if such Grantor has made
payment to the Secured Parties of all or any part of the Secured Obligations
and the Termination Date has occurred, then at such Grantor’s request, the
Collateral Agent (on behalf of the Secured Parties) will, at the expense of
such Grantor, execute and deliver to such Grantor appropriate documents
(without recourse and without representation or warranty) necessary to evidence
the transfer by subrogation to such Grantor of an interest in the Secured
Obligations resulting from such payment. 
In furtherance of the foregoing, at all times prior to the Termination
Date, such Grantor shall refrain from taking any action or commencing any
proceeding against any Obligor (or its successors or assigns, whether in
connection with a bankruptcy proceeding or otherwise) to recover any amounts in
respect of payments made under this Security Agreement to any Secured Party.

 

SECTION 2.6.  Second Priority Nature of Liens.  Notwithstanding anything herein to the contrary,
the lien and security interest granted to the Collateral Agent pursuant to this
Security Agreement and the exercise of any right or remedy by the Collateral
Agent hereunder are subject to the provisions of the Intercreditor
Agreement.  In the event of any conflict
between the terms of the Intercreditor Agreement and this Security Agreement,
the terms of the Intercreditor Agreement shall govern and control.  Notwithstanding anything herein to the contrary,
prior to the Discharge of First Lien Obligations, the requirements of this
Security Agreement to deliver Collateral to the Collateral Agent or register
the Collateral Agent as the registered owner of any Collateral shall be deemed
satisfied by delivery of such Collateral to, or the registration of such
Collateral in the name of, the applicable First Lien Collateral Agent.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES

 

In order to induce the Secured Parties to enter into
the Indenture and issue Notes thereunder, the Grantors represent and warrant to
each Secured Party as set forth below.

 

SECTION 3.1. 
As to Capital Stock of Subsidiaries.  With respect to any Subsidiary of any Grantor
that is

 

11

 

(a)                                  a corporation, business
trust, joint stock company or similar Person, all Capital Stock issued by such
Subsidiary are duly authorized and validly issued, fully paid and
non-assessable, and represented by a certificate; and

 

(b)                                 a partnership or limited
liability company, no Capital Stock issued by such Subsidiary (i) are
dealt in or traded on securities exchanges or in securities markets, (ii) expressly
provide that such Capital Stock are a security governed by Article 8 of
the UCC or (iii) are held in a securities account.

 

The percentage of the issued and outstanding
Capital Stock of each Subsidiary pledged by any Grantor hereunder are as set
forth on Schedule I hereto.

 

SECTION 3.2. 
Grantor Name, Location, etc. 
The jurisdiction in which each Grantor is located for purposes of
Sections 9-301 and 9-307 of the UCC is set forth in Item A of Schedule
II hereto.  During the five years
preceding the date hereof, no Grantor has been known by any legal name
different from the one set forth on the signature page hereto, no Grantor
used any other name on any filings with the IRS, nor has any such Grantor been
the subject of any merger, acquisition (including asset acquisition) or other
corporate reorganization, except as set forth in Item B of Schedule
II hereto.  The name set forth on the
signature page is the true and correct name of such Grantor.  Each Grantor’s organizational identification
number is (and, during the four months preceding the date hereof, such Grantor
has not had an organizational identification number different from that) set
forth in Item C of Schedule II hereto.  No Grantor is a party to any material
federal, state or local government contract except as set forth in Item D
of Schedule II hereto.  No Grantor
maintains any Deposit Accounts with any Person except as set forth in Item E
of Schedule II hereto. No Grantor has changed its jurisdiction of
incorporation or organization during the four months preceding the date hereof.

 

SECTION 3.3. 
Ownership, No Liens, etc. 
Such Grantor owns its Collateral free clear of any Lien, except for (a) Liens
created by this Security Agreement, (b) Inchoate Liens and, (c) in
the case of Collateral other than the Capital Stock of each Subsidiary pledged
hereunder, Liens permitted by Section 3.5 of the Indenture.  No effective financial statement or other
filing similar in effect covering any Collateral is on file in any record
office, except those filed in favor of the Collateral Agent relating to this
Security Agreement or those filed in connection with Liens permitted by Section 3.5
of the Indenture or as to which a duly executed termination statement relating
to such financing statement or other instrument has been delivered to the Collateral
Agent on the Issue Date.

 

SECTION 3.4. 
Possession of Inventory, etc. 
Except with respect to each Grantor’s automated ice production and
packaging system known under the Trademark “THE ICE FACTORY”, each Grantor’s
ice merchandisers located at certain of such Grantor’s customer locations and
each Grantor’s ice product inventory located at certain third-party warehouses,
each Grantor agrees that it will maintain exclusive possession of its goods,
instruments, promissory notes and inventory, other than (a) inventory in
transit in the ordinary course of business, (b) inventory which is in the
possession or control of a warehouseman, bailee agent or other Person (other
than a Person controlled by or under common control with such Grantor) that has
been notified of the security interest created in favor of the Secured Parties
pursuant to this Security Agreement, and has agreed to hold such inventory
subject to the Secured Parties’ Lien and waive 

 

12

 

any Lien held by it against
such inventory and (c) instruments or promissory notes that have been
delivered to the Collateral Agent pursuant to Section 3.5.

 

SECTION 3.5. 
Negotiable Documents, Instruments and Chattel Paper.  Subject to the Intercreditor Agreement, such
Grantor has delivered to the Collateral Agent possession of all originals of
all negotiable documents, instruments, promissory notes and chattel paper owned
or held by such Grantor on the Issue Date with a value in excess of $500,000.

 

SECTION 3.6. 
Intellectual Property Collateral. 
With respect to any Intellectual Property Collateral the loss,
impairment or infringement of which could reasonably be expected to have a
material adverse effect on the condition (financial or otherwise), business,
operations, assets, liabilities (contingent or otherwise) or properties of the
Obligors taken as a whole:

 

(a)                                  such Intellectual Property
Collateral is subsisting and has not been adjudged invalid or unenforceable, in
whole or in part;

 

(b)                                 such Intellectual Property
Collateral is valid and enforceable;

 

(c)                                  such Grantor has made all
necessary filings and recordations to protect its interest in such Intellectual
Property Collateral, including recordations of all of its interests in the
Patent Collateral and Trademark Collateral in the United States Patent and
Trademark Office and (subject to the terms of the Indenture) in corresponding
offices throughout the world, and its claims to the Copyright Collateral in the
United States Copyright Office and (subject to the terms of the Indenture) in
corresponding offices throughout the world;

 

(d)                                 such Grantor is the exclusive
owner of the entire and unencumbered right, title and interest in and to such
Intellectual Property Collateral and no claim has been made that the use of
such Intellectual Property Collateral does or may violate the asserted rights
of any third party; and

 

(e)                                  such Grantor has performed
and will continue to perform all acts and has paid and will continue to pay all
required fees and taxes to maintain each and every such item of Intellectual
Property Collateral in full force and effect.

 

Except as would not have a Material Adverse
Effect, each Grantor owns directly or is entitled to use by license or
otherwise, all patents, Trademarks, Trade Secrets, copyrights, mask works, licenses,
technology, know-how, processes and rights with respect to any of the foregoing
used in, necessary for or of importance to the conduct of such Grantor’s
business.

 

SECTION 3.7. 
Validity, etc.  This
Security Agreement creates a valid security interest in the Collateral securing
the payment of the Secured Obligations. 
Each Grantor has filed or caused to be filed all Filing Statements in
the appropriate offices therefor (or has authenticated and delivered to the
Collateral Agent Filing Statements suitable for filing in such offices) and has
taken all of the actions necessary to create perfected and (in the case of
Collateral consisting of the Capital Stock of each Subsidiary pledged
hereunder, subject to Inchoate Liens, and in case of all other Collateral,
subject to Section 3.5 of the Indenture) second-priority security
interests in 

 

13

 

the applicable Collateral
(other than (i) Deposit Accounts, (ii) cash and (iii) negotiable
documents, instruments, promissory notes and chattel paper with a value of less
than $500,000).

 

SECTION 3.8. 
Authorization, Approval, etc. 
Except as have been, or on the Issue Date will be, obtained or made and
are, or on the Issue Date will be, in full force and effect, and except (i) with
respect to any securities issued by a Subsidiary of the Grantor, as may be required
in connection with a disposition of such securities by laws affecting the
offering and sale of securities generally and (ii) any “change of control”
or similar filings required by any Governmental Authority, no authorization,
approval or other action by, and no notice to or filing with, any Governmental
Authority is required either

 

(a)                                  for the grant by the
Grantors of the security interest granted hereby, the pledge by the Grantors of
any Collateral pursuant hereto or for the execution, delivery and performance
of this Security Agreement by the Grantors;

 

(b)                                 for the perfection of the
Collateral Agent of its rights hereunder (other than with respect to filings
for the perfection of security interests that will not be made the Issue Date
but delivered to the Collateral Agent for filing on the Issue Date); or

 

(c)                                  for the exercise by the
Collateral Agent of the voting or other rights provided for in this Security
Agreement.

 

SECTION 3.9. 
Best Interests.  It is in
the best interests of such Grantor to execute this Security Agreement inasmuch
as such Grantor will, as a result of being a Subsidiary of the Borrower, derive
substantial direct and indirect benefits from the sale of the Notes pursuant to
the Indenture, and each Grantor agrees that the Secured Parties are relying on
this representation in agreeing to purchase the Notes.

 

ARTICLE
IV

COVENANTS

 

Each Grantor covenants and agrees that, until the
Termination Date, such Grantor will perform, comply with and be bound by the
obligations set forth below.

 

SECTION 4.1. 
As to Investment Property, etc.

 

SECTION 4.1.1. 
Capital Stock of Subsidiaries. 
No Grantor will allow any of its Subsidiaries that is

 

(a)                                  a corporation, business
trust, joint stock company or similar Person, to issue uncertificated
securities; and

 

(b)                                 a partnership or limited
liability company, to (i) issue Capital Stock that are to be dealt in or
traded on securities exchanges or in securities markets, (ii) expressly
provide in its Organic Documents that its Capital Stock are securities governed
by Article 8 of the UCC, or (iii) place such Subsidiary’s Capital
Stock in a securities account; provided that such Grantor may allow any
Subsidiaries to take any of the actions set forth in 

 

14

 

clauses (i), (ii) or (iii) so long as the
Collateral Agent has received evidence satisfactory to it that it has a
perfected, second-priority security interest in such Capital Stock (subject to
Inchoate Liens).

 

SECTION 4.1.2. 
Investment Property (other than Certificated Securities).  With respect to any investment property
(other than certificated securities) owned by any Grantor (other than cash in
an aggregate amount not exceeding $250,000), such Grantor will cause a Control
Agreement relating to such investment property to be executed and delivered by such
Grantor and the applicable financial intermediary in favor of the Collateral
Agent at the time such investment property is acquired or established.

 

SECTION 4.1.3. 
Stock Powers, etc.  Each Grantor agrees that all certificated securities
delivered by such Grantor pursuant to this Security Agreement will be
accompanied by duly executed undated blank stock powers, or other equivalent
instruments of transfer reasonably acceptable to the Collateral Agent,

 

SECTION 4.1.4. 
Continuous Pledge.  Each
Grantor will (subject to the terms of the Indenture) deliver to the Collateral
Agent and at all times keep pledged to the Collateral Agent pursuant hereto, on
a second-priority (subject to Section 3.5 of the Indenture), perfected basis
all investment property constituting Collateral, all payment intangibles to the
extent they are evidenced by a document, instrument, promissory note or chattel
paper and, following an Event of Default, all interest and principal with
respect to such payment intangibles, all Dividends and Distributions with
respect to investment property constituting Collateral, and all proceeds and
rights from time to time received by or distributable to such Grantor in
respect of any of the foregoing Collateral. 
Each Grantor agrees that it will, promptly (and in any event within 30
days following receipt thereof), deliver to the Collateral Agent possession of
all originals of negotiable documents, instruments, promissory notes and
chattel paper with a value in excess of $500,000 that it acquires following the
Issue Date.

 

SECTION 4.1.5. 
Voting Rights; Dividends, etc. 
Each Grantor agrees:

 

(a)                                  promptly upon receipt of
notice of the occurrence and continuance of an Event of Default from the
Collateral Agent and without any request therefor by the Collateral Agent, so
long as such Event of Default shall continue, to deliver (properly endorsed
where required hereby or requested by the Collateral Agent) to the Collateral Agent
all Dividends and Distributions with respect to investment property, all
interest, principal, other cash payments on payment intangibles, and all
proceeds of the Collateral, in each case thereafter received by such Grantor,
all of which shall be held by the Collateral Agent as additional Collateral;

 

(b)                                 with respect to Collateral
consisting of general partner interests or limited liability company interests,
to use commercially reasonable efforts to permit modifications to the
respective Organic Documents to admit the Collateral Agent, as a general
partner or member, respectively, immediately upon the occurrence and during the
continuance of an Event of Default; and

 

15

 

(c)                                  so long as the Collateral
Agent has notified such Grantor of the Collateral Agent’s intention to exercise
its voting power under this clause,

 

(i)                                     that the Collateral Agent
may exercise, subject to the terms of the Intercreditor Agreement, (to the
exclusion of such Grantor) the voting power and all other incidental rights of
ownership with respect to any investment property constituting Collateral and
such Grantor hereby grants the Collateral Agent an irrevocable proxy,
exercisable under such circumstances, to vote such investment property; and

 

(ii)                                  to promptly deliver to the
Collateral Agent such additional proxies and other documents as may be
necessary to allow the Collateral Agent to exercise such voting power.

 

All Dividends, Distributions, interest,
principal, cash payments, payment intangibles and proceeds which may at any
time and from time to time be held by such Grantor but which such Grantor is
then obligated, subject to the terms of the Intercreditor Agreement,  to deliver to the Collateral Agent, shall,
until delivery to Collateral Agent, be held by such Grantor separate and apart
from its other property in trust for the Collateral Agent.  The Collateral Agent agrees that unless an
Event of Default shall have occurred and be continuing and the Collateral Agent
shall have given the notice referred to in clause (c), such Grantor will
have the exclusive voting power with respect to any investment property
constituting Collateral and the Collateral Agent will, upon the written request
of such Grantor, promptly deliver such proxies and other documents, if any, as
shall be reasonably requested by such Grantor which are necessary to allow such
Grantor to exercise that voting power; provided that no vote shall be
cast, or consent, waiver, or ratification given or action taken by such Grantor
that would impair any such Collateral or be inconsistent with or violate any provision
of any Notes Document.

 

SECTION 4.2. 
Name of Grantor.  No
Grantor will change its name or jurisdiction of incorporation or organization
or organizational identification number except upon 30 days’ prior written notice
(or such shorter period as may be agreed to by the Collateral Agent) to the
Collateral Agent and taking all actions necessary to ensure continued
perfection of the Collateral Agent’s security interest in the Collateral at all
times following any such change.  If any
Grantor is organized outside of the United States, it will not change its “location”
as determined in accordance with Sections 9-301 and 9-307 of the UCC and as set
forth in Item A of Schedule II hereto except upon 30 days’ prior
written notice (or such shorter period as may be agreed to by the Collateral
Agent) to the Collateral Agent.

 

SECTION 4.3. 
As to Receivables.

 

(a)                                  Each Grantor shall have the
right to collect all Receivables so long as no Event of Default shall have
occurred and be continuing.

 

(b)                                 Upon (i) the occurrence
and continuance of an Event of Default and (ii) the delivery of written
notice by the Collateral Agent to each Grantor, all proceeds of Collateral
received by such Grantor shall be delivered in kind to the Collateral Agent for
deposit to a Deposit Account (the “Collateral Account”) of such Grantor
maintained with the Collateral Agent, and 

 

16

 

such Grantor shall not
commingle any such proceeds, and shall hold separate and apart from all other
property, all such proceeds in express trust for the benefit of the Collateral
Agent until delivery thereof is made to the Collateral Agent.

 

(c)                                  Following the delivery of
notice pursuant to clause (b)(ii) of this Section, the Collateral
Agent shall have the right to apply any amount in the Collateral Account to the
payment of any Secured Obligations which are due and payable.

 

(d)                                 With respect to the
Collateral Account, it is hereby confirmed and agreed that (i) deposits in
each Collateral Account are subject to a security interest as contemplated
hereby, (ii) each such Collateral Account shall be under the control of
the Collateral Agent and, (iii) the Collateral Agent shall have the sole
right of withdrawal over such Collateral Account.

 

SECTION 4.4. 
As to Collateral.

 

(a)                                  Subject to clause (b) of
this Section, each Grantor (i) may in the ordinary course of its business,
at its own expense, sell, lease or furnish under the
contracts of service any of the inventory normally held by such Grantor for
such purpose, and use and consume, in the ordinary course of its business, any
raw materials, work in process or materials normally held by such Grantor for
such purpose, (ii) will, at its own expense, endeavor to collect, as and
when due, all amounts due with respect to any of the Collateral, including the
taking of such action with respect to such collection as the Collateral Agent
may reasonably request following the occurrence of an Event of Default or, in
the absence of such request, as such Grantor may deem advisable, and (iii) may
grant, in the ordinary course of business, to any party obligated
on any of the Collateral, any rebate, refund, or allowance to which such party
may be lawfully entitled, and may accept, in connection therewith, the return
of goods, the sale or lease of which shall have given rise to such Collateral.

 

(b)                                 At any time following the
occurrence and during the continuance of an Event of Default, whether before or
after the maturity of any of the Secured Obligations, the Collateral Agent may (i) revoke
any or all of the rights of each Grantor set forth in clause (a), (ii) notify
any parties obligated on any of the Collateral to make payment to the
Collateral Agent of any amounts due or to become due thereunder and (iii) enforce
collection of any of the Collateral by suit or otherwise and surrender,
release, or exchange all or any part thereof, or compromise or extend or renew
for any period (whether or not longer than the original period) any
indebtedness thereunder or evidenced thereby.

 

(c)                                  Upon request of the
Collateral Agent following the occurrence and during the continuance of an
Event of Default, each Grantor will, at its own expense notify any parties obligated
on any of the Collateral to make payment to the Collateral Agent of any amounts
due or to become due thereunder.

 

(d)                                 At any time following the
occurrence and during the continuation of an Event of Default, the Collateral
Agent may endorse, in the name of such Grantor, any item, howsoever received by
the Collateral Agent, representing any payment on or other proceeds of any of
the Collateral.

 

17

 

SECTION 4.5. 
As to Intellectual Property Collateral.  Each Grantor covenants and agrees to comply
with the following provisions as such provisions relate to any Intellectual
Property Collateral material to the condition (financial or otherwise),
business, operations, liabilities (contingent or otherwise) or properties of
the Obligors taken as a whole:

 

(a)                                  such Grantor will not (i) do
or fail to perform any act whereby any of the Patent Collateral may lapse or
become abandoned or dedicated to the public or unenforceable, (ii) permit
any of its licensees to (A) fail to continue to use any of the Trademark
Collateral in order to maintain all of the Trademark Collateral in full force
free from any claim of abandonment for non-use, (B) fail to maintain as in
the past quality of products and services offered under all of the Trademark
Collateral, (C) employ all of the Trademark Collateral registered with any
federal or state or foreign authority with an appropriate notice of such
registration, (D) adopt or use any other Trademark which is confusingly
similar or a colorable imitation of any of the Trademark Collateral, (E) use
any of the Trademark Collateral registered with any federal, state or foreign
authority except for the uses for which registration or application for
registration of all of the Trademark Collateral has been made or (F) do or
permit any act or knowingly omit to do any act whereby any of the Trademark
Collateral may lapse or become invalid or unenforceable, or (iii) do or
permit any act or knowingly omit to do any act whereby any of the Copyright
Collateral or any of the Trade Secrets Collateral may lapse or become invalid
or unenforceable or placed in the public domain except upon expiration of the
end of an unrenewable term of a registration thereof, unless in the case of any
of the foregoing requirements in clauses (i), (ii) and (iii),
such Grantor either (x) reasonably and in good faith determine that any of
such Intellectual Property Collateral is of negligible economic value to such
Grantor, or (y) have a valid business purpose to do otherwise;

 

(b)                                 such Grantor shall promptly
notify the Collateral Agent if it knows or has reason to know, that any
application or registration relating to any material item of the Intellectual
Property Collateral may become abandoned or dedicated to the public or placed in the
public domain or invalid or unenforceable, or of any adverse determination or development
(including the institution of, or any such determination or develop in, any proceeding
in the United States Patent and Trademark Office, the United States Copyright Office or any foreign
counterpart thereof or any court) regarding such Grantor’s ownership of any of
the Intellectual Property Collateral, its right to register the same or to keep
and maintain and enforce the same;

 

(c)                                  such Grantor will take all
necessary steps, including in any proceeding before the United States Patent
and Trademark Office, the United States Copyright Office or (subject to the
terms of the Indenture) any similar office or agency in any other country or
any political subdivision thereof, to maintain and pursue any application (and
to obtain the relevant registration) filed with respect to, and to maintain any
registration of, the Intellectual Property Collateral, including the filing of
applications for renewal, affidavits of use, affidavits of incontestability and
opposition, interference and cancellation proceedings and the payment of fees
and taxes (except to the extent that dedication, abandonment or invalidation is
permitted under the foregoing clause (a) or (b)); and

 

18

 

(d)                                 on the Issue Date (and
thereafter upon the request of the Collateral Agent; provided that,
unless an Event of Default has occurred and is continuing, such request shall
be made no more than once in any period of 12 consecutive months) such Grantor
will promptly execute and deliver to the Collateral Agent (as applicable) a
Patent Security Agreement, Trademark Security Agreement and/or Copyright
Security Agreement, as the case may be, in the forms of Exhibit A, Exhibit B
and Exhibit C hereto following its obtaining an interest in any
such Intellectual Property, and shall execute and deliver to the Collateral
Agent any other document required to acknowledge or register or perfect the
Collateral Agent’s interest in any part of such item of Intellectual Property
Collateral unless the Grantor shall determine in good faith (with the consent
of the Collateral Agent, which consent shall not be unreasonably withheld or
delayed) that any Intellectual Property Collateral is of negligible economic
value to the Grantor.

 

SECTION 4.6.  Commercial Tort Claims.  Each Grantor shall notify the Collateral
Agent if such Grantor reasonably believes it is entitled to recover a commercial
tort claim the value of which is in excess of $1,000,000, and such Grantor
promptly (and in any event within 30 days of such acquisition) shall take all
such action reasonably necessary or requested by the Collateral Agent to grant
to the Collateral Agent and perfect a security interest in such commercial tort
claim.

 

SECTION 4.7. 
As to Deposit Accounts. 
With respect to any Deposit Accounts owned by any Grantor (other than
cash and cash equivalents not exceeding $250,000 in the aggregate and accounts
the entire balance of which is swept at least once every three business days to
an account described below), provided that, notwithstanding such threshold, a
Control Agreement shall always cover the Company’s and its Subsidiaries’ main
collection account, such Grantor will cause a Control Agreement relating to
such Deposit Account to be executed and delivered by such Grantor and the applicable
bank in favor of the applicable First Lien Collateral Agent:

 

(a)                                  with respect to
Deposit Accounts maintained on the Issue Date, on the Issue Date; and

 

(b)                                 with respect to Deposit
Accounts established after the Issue Date, at the time such Deposit Account is
established.

 

SECTION 4.8. 
Further Assurances, etc. 
Each Grantor agrees that, from time to time at its own expense, it will
promptly execute and deliver all further instruments and documents, and take
all further action, that may be necessary or that the Collateral Agent may reasonably
request, in order to perfect, preserve and protect any security interest
granted or purported to be granted hereby or to enable the Collateral Agent to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral.  Without limiting the
generality of the foregoing, such Grantor will

 

(a)                                  from time to time upon the
request of the Collateral Agent, promptly deliver to the Collateral Agent such
stock powers, instruments and similar documents, reasonably satisfactory in
form and substance to the Collateral Agent, with respect to such Collateral as
the Collateral Agent may reasonably request and will, from time to time 

 

19

 

upon the request of the Collateral
Agent after the occurrence and during the continuance of any Event of Default
promptly transfer any securities constituting Collateral into the name of any
nominee designated by the Collateral Agent; if any Collateral shall be evidenced
by an instrument, negotiable document, promissory note or chattel paper with a
value in excess of $500,000, deliver and pledge to the Collateral Agent
hereunder such instrument, negotiable document, promissory note or chattel
paper duly endorsed and accompanied by duly executed instruments of transfer or
assignment, all in form and substance reasonably satisfactory to the Collateral
Agent;

 

(b)                                 file (or cause to be filed)
such Filing Statements or continuation statements, or amendments thereto, and
such other instruments or notices (including assignment of claim form under or
pursuant to the federal assignment of claims statute 31 U.S.C. § 3726, any
successor or amended version thereof or any regulation promulgated under or
pursuant to any version thereof) as are necessary in order to perfect and
preserve the security interests and other rights granted or purported to be granted to
the Collateral Agent hereby;

 

(c)                                  deliver to the Collateral
Agent and at all times keep pledged to the Collateral Agent pursuant hereto, on
a second-priority (subject to Section 3.5 of the Indenture), perfected
basis, at the reasonable request of the Collateral Agent, all investment
property constituting Collateral, all Distributions with respect thereto, and
after an Event of Default, all Dividends and all interest and principal with
respect to promissory notes, and all proceeds and rights from time to time
receive by or distributable to such Grantor in respect of any of the foregoing
Collateral;

 

(d)                                 furnish to the Collateral
Agent, from time to time at the Collateral Agent’s request, statements and
schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as the Collateral Agent may reasonably
request, all in reasonable detail; and

 

(e)                                  do all things reasonably
requested by the Collateral Agent in order to enable the Collateral Agent to
have control (as such term is defined in Article 8 and Article 9 of
any applicable Uniform Commercial Code relevant to the creation, perfection or
priority of Collateral consisting of Deposit Accounts, accounts and letter of
credit rights) over any Collateral;

 

With respect to the foregoing and the grant
of the security interest hereunder, each Grantor hereby authorizes the
Collateral Agent to file one or more financing or continuation statements, and
amendments thereto, relative to all or any part of the Collateral including any
financing statement describing the collateral as “all assets,” or words of
similar effect.  Each Grantor agrees that
a carbon, photographic or other reproduction of this Security Agreement or any
financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by law.

 

20

 

ARTICLE
V

THE
COLLATERAL AGENT

 

SECTION 5.1. 
Collateral Agent Appointed Attorney-in-Fact.  Each Grantor hereby irrevocably appoints the
Collateral Agent its attorney-in-fact, with full authority in the place and
stead of such Grantor and in the name of such Grantor or otherwise, from time
to time in the Collateral Agent’s discretion, following the occurrence and
during the continuance of an Event of Default, to take any action and to
execute any instrument which the Collateral Agent may deem necessary or advisable
to accomplish the purposes of this Security Agreement, including:

 

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

 

(b)                                 to receive, endorse, and
collect any drafts or other instruments, documents and chattel paper, in
connection with clause (a) above;

 

(c)                                  to file any claims or take
any action or institute any proceedings which the Collateral Agent may deem
necessary or desirable for the collection of any of the Collateral or otherwise
to enforce the rights of the Collateral Agent with respect to any of the Collateral;
and

 

(d)                                 to perform the affirmative
obligations of such Grantor hereunder.

 

Each Grantor hereby acknowledges, consents
and agrees that the power of attorney granted pursuant to this Section is
irrevocable and coupled with an interest.

 

SECTION 5.2. 
Collateral Agent May Perform.  If any Grantor fails to perform any agreement
contained herein, upon the occurrence and during the continuance of any Event
of Default, the Collateral Agent may itself perform, or cause performance of,
such agreement, and the expenses of the Collateral Agent incurred in connection
therewith shall be payable by such Grantor pursuant to Article VII of the
Indenture.

 

SECTION .5.3. 
Collateral Agent Has No Duty. 
The powers conferred on the Collateral Agent hereunder are solely to
protect its interest (on behalf of the Secured Parties) in the Collateral and
shall not impose any duty on it to exercise any such powers.  Except for reasonable care of any Collateral
in its possession and the accounting for moneys actually received by it
hereunder, the Collateral Agent shall have no duty as to any Collateral or responsibility
for

 

(a)                                  ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders or
other matters relative to any investment property, whether or not the
Collateral Agent has or is deemed to have knowledge of such matters, or

 

(b)                                 taking any necessary steps
to preserve rights against prior parties or any other rights pertaining to any
Collateral.

 

21

 

SECTION 5.4. 
Reasonable Care.  The
Collateral Agent is required to exercise reasonable care in the custody and
preservation of any of the Collateral or Mortgaged Property in its possession; provided
that the Collateral Agent shall be deemed to have exercised reasonable care in
the custody and preservation of any of the Collateral or Mortgaged Property, if
it takes such action for that purpose as Grantor reasonably requests in writing
at times other than upon the occurrence and during the  continuance of
any Event of Default, but failure of the Collateral Agent to comply with any
such request at any time shall not in itself be deemed a failure to exercise reasonable
care.

 

SECTION 5.5.  Authority of Collateral Agent.  Each Grantor acknowledges that the rights and
responsibilities of the Collateral Agent under the Security Agreement and the
other Collateral Documents with respect to any action taken by the Collateral
Agent or the exercise or non-exercise by the Collateral Agent of any option,
right, request, judgment or other right or remedy provided for herein or in any
other Collateral Document resulting or arising out of this Security Agreement
or any other Collateral Document shall, as between the Collateral Agent and the
Secured Parties, be governed by the Indenture and the Intercreditor Agreement
and by such other agreements with respect thereto as may exist from to time
among them (including, without limitation, the other Notes Documents), but, as
between the Collateral Agent and the Grantors, the Collateral Agent shall be conclusively
presumed to be acting as agent for the Secured Parties with full and valid
authority so to act or refrain from acting, and the Grantors shall not be under
any obligation, or have any entitlement, to make any inquiry respecting such
authority.  The Collateral Agent shall
have all of the rights and benefits afforded it under the Indenture and the Intercreditor
Agreement in the administration of the Security Agreement and the other
Collateral Documents, as if such rights and benefits were specifically set
forth herein, including, but not limited to, the rights and benefits set forth
in Article XI of the Indenture.

 

ARTICLE
VI 

REMEDIES

 

SECTION 6.1. 
Certain Remedies.  If any
Event of Default shall have occurred and be continuing:

 

(a)                                  The Collateral Agent may
exercise in respect of the Collateral, in addition to other rights and remedies
provided for herein or otherwise available to it, all the rights and remedies
of a secured party on default under the UCC (whether or not the UCC applies to
the affected Collateral) and also may

 

(i)                                     require each Grantor to, and
each Grantor hereby agrees that it will, at its expense and upon request of the
Collateral Agent forthwith, assemble all or part of the Collateral as directed
by the Collateral Agent and make it available to the Collateral Agent at a
place to be designated by the Collateral Agent which is reasonably convenient
to both parties, and

 

(ii)                                  without notice except as
specified below, sell the Collateral or any part thereof in one or more parcels
at public or private sale, at any of the Collateral 

 

22

 

Agent’s offices or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as the Collateral
Agent may deem commercially reasonable. 
Each Grantor agrees that, to the extent notice of sale shall be required
by law, at least ten days prior notice to such 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.  The
Collateral Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. 
The Collateral Agent may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so
adjourned.

 

(b)                                 All cash proceeds received
by the Collateral Agent in respect of any sale of, collection from, or other
realization upon, all or any part of the Collateral shall be applied by the
Collateral Agent against, all or any part of the Secured Obligations as in Article VII
of the Indenture.

 

(c)                                  The Collateral Agent may

 

(i)                                     transfer all or any part of
the Collateral into the name of the Collateral Agent or its nominee, with or
without disclosing that such Collateral is subject to the Lien hereunder,

 

(ii)                                  notify the parties obligated
on any of the Collateral to make payment to the Collateral Agent of any amount
due or to become due thereunder,

 

(iii)                               enforce collection of any of
the Collateral by suit or otherwise, and surrender, release or exchange  all or any part thereof, or
compromise or extend or renew for any period (whether or not longer than the
original period) any obligations of any nature of any party with respect
thereto,

 

(iv)                              endorse any checks, drafts,
or other writings in any Grantor’s name to allow collection of the Collateral,

 

(v)                                 take control of any proceeds of the Collateral,
and

 

(vi)                              execute (in the name, place
and stead of any Grantor) endorsements,
assignments, stock powers and other instruments of conveyance or transfer with
respect to all or any of the Collateral.

 

SECTION 6.2. 
Securities Laws.  If the
Collateral Agent shall determine to exercise its right to sell all or any of
the Capital Stock that are Collateral pursuant to Section 6.1, each
Grantor agrees that, upon request of the Collateral Agent, such Grantor will,
at its own expense, use commercially reasonable efforts to:

 

(a)                                  execute and deliver, and
cause (or, with respect to any issuer which is not a Subsidiary of such
Grantor, use its best efforts to cause) each issuer of the Collateral
contemplated to be sold and the directors and officers thereof to execute and
deliver, all 

 

23

 

such instruments and
documents, and do or cause to be done all such other acts and things, as may be
necessary or, in the opinion of the Collateral Agent, advisable to register the
sale of such Capital Stock under the provisions of the Securities Act of 1933,
as from time to time amended (the “Securities Act”), and cause the
registration statement relating thereto to become effective and to remain
effective for such period as prospectuses are required by law to be furnished,
and to make all amendments and supplements thereto and to the related
prospectus which, in the reasonable opinion of the Collateral Agent, are
necessary or advisable, all in conformity with the requirements of the
Securities Act and the rules and regulations of the SEC applicable
thereto;

 

(b)                                 use commercially reasonable
efforts to qualify such Capital Stock for sale under the state securities or “Blue
Sky” laws and to obtain all necessary governmental approvals for, the sale of
such Capital Stock, as requested by the Collateral Agent;

 

(c)                                  cause (or, with respect to
any issuer which is not a Subsidiary of such Grantor, use its best efforts to
cause) each such issuer to make available to its security holders, as soon as
practicable, an earnings statement that will satisfy the provisions of Section 11(a) of
the Securities Act; and

 

(d)                                 do or cause to be done all
such other acts and things as may be necessary to make such sale of the
Collateral or any part thereof valid and binding and in compliance with
applicable law.

 

SECTION 6.3. 
Compliance with Restrictions. 
Each Grantor agrees that in any sale of any of the Collateral whenever
an Event of Default shall have occurred and be continuing, the Collateral Agent
is hereby authorized to comply with any limitation or restriction it connection with
such sale as it may be advised by counsel is necessary in order to (i) avoid
any violation of applicable law (including compliance with such procedures as
may restrict the number of prospective bidders and purchasers, require that
such prospective bidders and purchasers have certain qualifications, and
restrict such prospective bidders and purchasers to Persons who will represent
and agree that they are purchasing for their own account for investment and not
with a view to the distribution or resale of such Collateral), or (ii) obtain
any required approval of the sale or of the purchaser by any Governmental
Authority or official and such Grantor further agrees that such compliance
shall not result in such sale being considered or deemed not to have been made
in a commercially reasonable manner, nor shall the Collateral Agent be liable
nor accountable to such Grantor for any discount allowed by the reason of the
fact that such Collateral is sold in compliance with any such limitation or restriction.

 

SECTION 6.4. 
Protection of Collateral. 
The Collateral Agent may from time to time, at its option, perform any
act which any Grantor fails to perform after being requested in writing so to
perform (it being understood that no such request need be given after the occurrence
and during the continuance of an Event of Default) and the Collateral Agent may
from time to time take any other action which the Collateral Agent reasonably
deems necessary for the maintenance, preservation or protection of any of the
Collateral or of its security interest therein.

 

SECTION 6.5.  Intercreditor
Provisions and Voting         (a)        If
an Event of Default occurs and is continuing, the Collateral Agent shall
exercise its rights hereunder and the 

 

24

 

other Collateral Documents in accordance with the written instructions
from holders of more than 50% of the aggregate principal amount (or,
in case of discount notes, accreted value) of all the Secured Obligations.

 

(b)                                 Any action
taken or not taken without the vote of any Secured Party or Secured Parties
under this Section 6.5 shall nevertheless be binding on such
Secured Party or Secured Parties.

 

(c)                                  Except as
provided in the succeeding sentence or in Article VII, in the case
of an Event of Default, the Collateral Agent will only be permitted, subject to
applicable law, to exercise remedies and sell the Collateral under this
Agreement or any Mortgaged Property under any Mortgage at the direction of the
applicable Secured Parties as set forth in this Section 6.5.  If the Collateral Agent has asked the Secured
Parties for instruction and the applicable Secured Parties have not yet
responded to such request, the Collateral Agent shall be authorized to take,
but shall not be required to take, and shall in no event have any liability for
the taking, any delay in taking or the failure to take, such actions with
regard to an Event of Default which the Collateral Agent, in good faith,
believes to be reasonably required to promote and protect the interests of the
Secured Parties and to preserve the value of the Collateral and Mortgaged
Property and shall give the Secured Parties appropriate notice of such action; provided
that once instructions with respect to such request have been received by the
Collateral Agent from the applicable Secured Parties, the actions of the
Collateral Agent shall be governed thereby and the Collateral Agent shall not
take any further action which would be contrary thereto.

 

ARTICLE VII

APPLICATION OF PROCEEDS

 

SECTION 7.1  Application of Proceeds.

 

(a)                                  Subject to the terms of the
Intercreditor Agreement, the proceeds received by the Collateral Agent in
respect of any sale of, collection from or other realization upon all or any
part of the Collateral or Mortgaged Property pursuant to the exercise by the
Collateral Agent of its remedies hereunder or under any of the Collateral
Documents shall be applied, together with any other sums then held by the
Collateral Agent pursuant to this Agreement or any other Collateral Document,
by the Collateral Agent as follows: 

 

(i)                                     First, to the
payment of all reasonable costs and expenses, fees, commissions and taxes of
such sale, collection or other realization including compensation to the
Collateral Agent and the Trustee and its agents and counsel, and all reasonable
expenses, liabilities and advances made or incurred by the Collateral Agent and
the Trustee in connection therewith, and all indemnities and other amounts for
which each of the Collateral Agent and the Trustee is entitled pursuant to the
provisions of the Indenture or this Agreement;

 

(ii)                                  Second, to reimburse
any Secured Party for any indemnification amounts paid to the Collateral Agent
in connection with any costs and expenses incurred by the Collateral Agent;

 

25

 

(iii)                               Third, to the
payment of all accrued and unpaid interest and accrued fees owing in respect of
the Secured Obligations on a pro rata basis in accordance with the respective
amounts of all interest and accrued fees owed in respect of the Secured Obligations
to Secured Parties;

 

(iv)                              Fourth, to the
payment of all amounts of principal (or, in the case of discount notes, unpaid
accreted value) owing in respect of the Secured Obligations on a pro rata basis
in accordance with the respective amounts of all principal (or, in the case of
discount notes, unpaid accreted value) owed in respect of the Secured
Obligations to Secured Parties;

 

(v)                                 Fifth, to all other
amounts then owing in respect of the Secured Obligations; and

 

(vi)                              Sixth, the balance,
if any, to the Company or the Guarantors or such other persons as are entitled
thereto.

 

All applications of proceeds pursuant to clauses (ii) though
(v) above shall be allocated among the Secured Parties on a pro rata basis according to the principal (or,
in the case of discount notes, accreted value), interest and other amounts
owing in respect of the Secured Obligations at the time of the
distribution.  In the event that any such
proceeds are insufficient to pay in full the items described in clauses (i) through
(v) of this Section 8.1(a), the Grantors shall remain liable,
jointly and severally, for any deficiency.

 

(b)                                 Upon the
request of the Collateral Agent prior to any distribution under this Section 8.1,
each Secured Party or its Authorized Representative shall provide to the Collateral
Agent certificates, in form and substance reasonably satisfactory to the
Collateral Agent, setting forth the respective amounts referred to in Section 8.1(a),
that each such Secured Party or its Authorized Representative believes it is
entitled to receive, and the Collateral Agent shall be fully entitled to rely
on such certificates.

 

SECTION 7.2
..  Sharing of Proceeds.  If, despite the provisions of this Security
Agreement, any Secured Party shall receive any payment or other recovery in
excess of its portion of payments on account of the Secured Obligations to
which it is then entitled in accordance with this Agreement, such Secured Party
shall hold such payment or recovery in trust for the benefit of all Secured
Parties for distribution in accordance with Section 8.1.

 

ARTICLE
VIII

MISCELLANEOUS
PROVISIONS

 

SECTION 8.1. 
Notes Document.  This
Security Agreement is a Notes Document executed pursuant to the Indenture and
shall (unless otherwise expressly indicated herein) be construed, administered
and applied in accordance with the terms
and provisions thereof.

 

SECTION 8.2. 
Intercreditor
Agreement.  Notwithstanding
anything herein to the contrary, the Liens and security interests granted to
the Collateral Agent pursuant to this Security Agreement, the exercise of any
right or remedy by the Collateral Agent hereunder and the obligations 

 

26

 

of the Grantors  hereunder, in
each case, with respect to the Collateral are subject to the limitations and
provisions of the Intercreditor Agreement. 
In the event of any conflict between the terms of the Intercreditor
Agreement and the terms of this Security Agreement, the terms of the
Intercreditor Agreement shall govern and control.  Prior to the Discharge of the Credit Agreement
Obligations (as such terms are defined in the First Lien Intercreditor
Agreement) any requirement of this Security Agreement to deliver possession of
Collateral to the Collateral Agent shall be deemed satisfied by delivery of
such Collateral to any First Lien Collateral Agent.

 

SECTION 8.3. 
Binding on Successors, Transferees and Assigns; Assignment.  This Security Agreement shall remain in full
force and effect until the Termination Date has occurred, shall be binding upon
the Grantors and their successors, transferees and assigns and shall inure to
the benefit of and be enforceable by each Secured Party and its successors,
transferees and assigns.

 

SECTION 8.4. 
Amendments, etc.  No
amendment to or waiver of any provision of this Security Agreement, nor consent
to any departure by any Grantor from its obligations under this Security
Agreement, shall in any event be effective unless
made in accordance with the terms of the Indenture and unless in writing and
signed by the Collateral Agent with the written consent of such Secured
Parties, if any, required by the Indenture and any Additional Secured Debt
Documents and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

 

SECTION 7.5. 
Notices.  All notices or
instructions hereunder and all notices and other communications provided for
hereunder shall be in writing or by facsimile and addressed, delivered or
transmitted to the appropriate party at the address or facsimile number of such
party specified in the Indenture or in the Additional Secured Party Joinder or
at such other address or facsimile number as may be designated by such party in a notice to the
other party.  Any notice or other
communication, if mailed and properly addressed with postage prepaid or if
properly addressed and sent by pre-paid courier service, shall be deemed given
when received; any such notice or other
communication, if transmitted by facsimile, shall be deemed given when transmitted
and electronically confirmed.

 

SECTION 8.6. 
Release of Liens; Release of Grantor.  The lien and security interest in the
Collateral granted hereunder shall terminate and be released, in whole or in
part, (i) as to any Obligations under the Indenture, as provided in the
Indenture and (ii) as to Additional Secured Obligations under Additional
Secured Debt Documents, as provided in such Additional Secured Debt Documents.

 

SECTION 8.7.  Additional Secured Obligations.  On or after the date hereof, the Company may
from time to time designate Additional Pari Passu Lien Indebtedness (as defined
in the Indenture) of the Company or any Guarantor permitted to be incurred as “Pari
Passu Obligations” under the Indenture, 
the First Lien Indenture and the Credit Agreement as Additional Secured
Obligations by delivering to the Collateral Agent, each Authorized
Representative and each First Lien Collateral Agent (a) a certificate
signed by the chief financial officer of the Company (i) identifying the Class of
obligations so designated and the aggregate principal amount or face amount
thereof, stating that such Class of obligations is designated as an
Additional Secured Obligation for purposes hereof, (ii) representing that
such designation of such Class of obligations 

 

27

 

as an Additional Secured
Obligation complies with the terms of each of the Indenture, this Security
Agreement, the First Lien Indenture, the First Lien Security Agreement and the
Credit Agreement and (iii) specifying the name and address of the
Authorized Representative for such Class of obligations, (b) a fully
executed additional secured party joinder in the form attached as Annex II
(“Additional Secured Party Joinder”) and (c) an opinion of counsel  to the effect that the designation of such Class of
obligations as “Additional Secured Obligations” is in compliance with the terms
of the Indenture, the First Lien Indenture and the Credit Agreement.  Each Authorized Representative agrees that
upon the satisfaction of all conditions set forth in the preceding sentence,
the Collateral Agent shall act as agent under and subject to the terms of this
Security Agreement for the benefit of all Pari Passu Lien Secured Parties (as
defined in the Indenture), including without limitation, any Pari Passu Lien
Secured Parties that hold any such Additional Secured Obligations, and each Authorized
Representative agrees to the appointment, and acceptance of the appointment, of
the Collateral Agent as agent for the holders of such Additional Secured
Obligations as set forth in each Additional Secured Party Joinder and agrees,
on behalf of itself and each Additional Secured Party it represents, to be
bound by this Security Agreement.

 

SECTION 8.8. 
Additional Guarantors. 
Upon the execution and delivery by any other Person of a supplement in
the form of Annex I hereto,
such Person shall become a “Grantor” hereunder with the same force and effect
as if it were originally a party to this Security Agreement and named as a “Grantor”
hereunder.  The execution and delivery of
such supplement shall not require the consent of any other Grantor hereunder,
and the rights and obligations of each Grantor, hereunder shall remain in full
force and effect notwithstanding the addition of any new Grantor as a party to this Security Agreement.

 

SECTION 8.9. 
No Waiver; Remedies.  No
failure on the part of any Secured Party to exercise, and no delay in exercising,
any right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. 
The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

 

SECTION 8.10. 
Headings.  The various
headings of this Security Agreement are inserted for convenience
only and shall not affect the meaning or interpretation of this Security
Agreement or any provisions thereof.

 

SECTION 8.11. 
Severability.  Any
provision of this Security Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such provision and such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Security Agreement or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

SECTION 8.12. 
Governing Law, Entire Agreement, etc.  THIS
SECURITY AGREEMENT SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK),
EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST
HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR 

 

28

 

COLLATERAL
ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.  This Security Agreement and
the other Notes Documents constitute the entire understanding among the parties
hereto with respect to the subject matter hereof and thereof and supersede any
prior agreements, written or oral, with respect thereto.

 

SECTION 8.13. 
Counterparts.  This Security
Agreement may be executed by the parties hereto in several counterparts, each
of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement. 
Delivery of an executed counterpart of a signature page to this
Security Agreement by facsimile or
other electronic means (such as Adobe PDF file)  shall be
effective as delivery of a manually executed counterpart of this Security
Agreement.

 

SECTION 8.14. 
Foreign Pledge Agreements. 
Without limiting any of the rights, remedies, privileges or benefits
provided hereunder to the Collateral Agent for its benefit and the ratable
benefit of the other Secured Parties, each Grantor and the Collateral Agent
hereby agree that the terms and provisions of this Security Agreement in
respect of any Collateral subject to the pledge or other Lien of a Foreign
Pledge Agreement are, and shall deemed to be, supplemental and in addition to
the rights, remedies, privileges and benefits provided to the Collateral Agent
and the other Secured Parties under such Foreign Pledge Agreement and under
applicable law to the extent consistent with applicable law; provided
that in the event that the terms of this Security Agreement conflict or are
inconsistent with the applicable Foreign Pledge Agreement or applicable law
governing such Foreign Pledge Agreement, (i) to the extent that the
provisions of such Foreign Pledge Agreement or applicable foreign law are,
under applicable foreign law, necessary for the creation, perfection or
priority of the security interests in the Collateral subject to such Foreign
Pledge Agreement, the terms of such Foreign Pledge Agreement or such applicable
law shall be controlling and (ii) otherwise, the terms hereof shall be
controlling.

 

29

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Security Agreement to be duly executed and delivered by its
Authorized Officer as of the date first above written.

 

	
   

  	
  REDDY
  ICE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Janusek

  
	
   

  	
   

  	
  Name:

  	
  Steven J. Janusek

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President,
  Chief

  
	
   

  	
   

  	
  Financial Officer and
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  REDDY
  ICE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Janusek

  
	
   

  	
   

  	
  Name: 

  	
  Steven J. Janusek

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President,
  Chief

  
	
   

  	
   

  	
  Financial Officer and
  Secretary

  

 

S-1

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION,

  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Patrick T. Giordano

  
	
   

  	
   

  	
  Name:
  Patrick T. Giordano

  
	
   

  	
   

  	
  Title: Vice President

  

 

S-2

 

EXHIBIT
A

To
Second Lien Pledge and Security Agreement

 

SECOND LIEN NOTES PATENT SECURITY AGREEMENT

 

This SECOND LIEN NOTES PATENT SECURITY AGREEMENT,
dated as of
            
     , 200   (this “Agreement”), is made
by [NAME OF GRANTOR] a [STATE OF INCORPORATION] corporation (the “Grantor”),
in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”), as
collateral Agent (together with its successor(s) thereto in such capacity,
the “Collateral Agent”) for each of the Secured Parties.

 

W  I  T  N  E  S  S  E  T
H :

 

WHEREAS, pursuant to the Indenture, dated as of March 15,
2010 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the “Indenture”), among Reddy Ice Corporation, a Nevada
corporation (the “Company”), the Trustee and the Collateral Agent, the
Company has issued the Notes;

 

WHEREAS, in connection with the Indenture, the
Grantor has executed and delivered a Pledge and Security Agreement, dated as of
March 15, 2010  (as amended, supplemented,
amended and restated or otherwise modified from time to time, “Security Agreement”);

 

WHEREAS, pursuant to the Indenture and pursuant to
clause (d) of Section 4.5 of the Security Agreement, the Grantor is
required to execute and deliver this Agreement and to grant to the Collateral
Agent a continuing security interest in all of the Patent Collateral (as defined
below) to secure all Secured Obligations; and

 

WHEREAS, the Grantor has duly authorized the
execution, delivery and performance of this Agreement;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Grantor
agrees, for the benefit of each Secured Party, as follows:

 

SECTION 1. 
Definitions.  Unless
otherwise defined herein or the context otherwise requires, terms used in this
Agreement, including its preamble and recitals, have the meaning provided in
the Security Agreement.

 

SECTION 2. 
Grant of Security Interest. 
The Grantor hereby grants to the Collateral Agent, for its benefit and
the ratable benefit of each other Secured Party, a continuing security interest
in all of the following property, whether now or hereafter existing or acquired
by the Grantor (the “Patent Collateral”):

 

(a)                                  all of its
letters patent and applications for letters patent throughout the world,
including all patent applications in preparation for filing and each patent and
patent application referred to in Item A of Schedule I attached
hereto;

 

1

 

(b)                                 all reissues,
divisions, continuations, continuations-in-part, extensions, renewals and
reexaminations of any of the items described in clause (a);

 

(c)                                  all of its
patent licenses, and other agreements providing the Grantor with the right to
use any items of the type referred to in clauses (a) and (b) above,
including each patent license referred to in Item B of Schedule I
attached hereto; and

 

(d)                                 all proceeds
of, and rights associated with, the foregoing.

 

Notwithstanding the foregoing, “Patent
Collateral” shall not include (collectively, the “Patent Excluded Property”) (i) any
permit or license or any contractual obligation entered into by Parent, the
Company or any Subsidiary Guarantor (A) that prohibits or requires the
consent of any Person other than the Company and its Affiliates which has not
been obtained as a condition to the creation by Parent, the Company or the
applicable Subsidiary Guarantor of a Lien on any right, title or interest in
such permit, license or contractual obligation or (B) to the extent that
any requirement of law applicable thereto prohibits the creation of a Lien
thereon, but only, with respect to the prohibition in clauses (A) and
(B), to the extent, and for as long as, such prohibition is not terminated or
rendered unenforceable or otherwise deemed ineffective by the Uniform Commercial
Code or any other requirement of law or (ii) property owned by the Company
or any Subsidiary Guarantor that is subject to a Lien permitted by clause (6) of
the definition of “Permitted Liens” (as defined in the Indenture) if the
contractual obligation pursuant to which such Lien is granted (or in the
document providing for such Lien) prohibits or requires the consent of any
Person other than the Company and its Affiliates which has not been obtained as
a condition to the creation of any other Lien on such item of property,; provided, however,
that “Patent Excluded Property” shall not include any proceeds, products,
substitutions or replacements of Patent Excluded Property (unless such
proceeds, products, substitutions or replacements would otherwise constitute
Patent Excluded Property), which assets subject to such Lien shall not constitute
Patent Collateral under any circumstance.

 

SECTION 3. 
Security Agreement.  This
Agreement has been executed and delivered by the Grantor for the purpose of
registering the security interest of the Collateral Agent in the Patent
Collateral with the United States Patent and Trademark Office and corresponding
offices in other countries of the world. 
The security interest granted hereby has been granted as a supplement
to, and not in limitation of, the security interest granted to the Collateral
Agent for its benefit and the ratable benefit of each other Secured Party under
the Security Agreement.  The Security
Agreement (and all rights and remedies of the Collateral Agent and each Secured
Party thereunder) shall remain in full force and effect in accordance with its
terms.

 

SECTION 4. 
Release of Liens; Release of Grantor.  The lien and security interest in the Patent
Collateral and any Grantor shall be released pursuant to the provisions of the
Indenture.

 

SECTION 5. 
Acknowledgment.  The
Grantor does hereby further acknowledge and affirm that the rights and remedies
of the Collateral Agent with respect to the security interest in the Patent
Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein)
are incorporated by reference herein as if fully set forth herein.

 

2

 

SECTION 6. 
Notes Document.  This
Agreement is a Notes Document executed pursuant to the
Indenture and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions thereof.

 

SECTION 7.  Intercreditor Agreement.  Notwithstanding
anything herein to the contrary, the Liens and security interests granted to
the Collateral Agent pursuant to this Agreement,
the exercise of any right or remedy by the Collateral Agent  hereunder
and the obligations of the Guarantor  hereunder, in
each case, with respect to the Collateral are subordinated and subject to the
limitations and provisions of the Intercreditor Agreement.  In the event of any conflict between the
terms of the Intercreditor Agreement and the terms of this Security Agreement,
the terms of the Intercreditor Agreement shall govern and control.

 

SECTION 8. 
Counterparts.  This
Agreement may be executed by the parties hereto in several counterparts, each
of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement.

 

3

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be duly executed and delivered by its Authorized
Officers as of the date first above written.

 

	
   

  	
  [NAME
  OF GRANTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4

 

SCHEDULE I

to Patent Security Agreement

 

Item
A.  Patents

 

Issued Patents

 

	
  Country

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending Patent Applications

 

	
  Country

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Patent Applications In Preparation

 

	
  Country

  	
   

  	
  Docket No.

  	
   

  	
  Expected

  Filing Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Patent Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  

  Licensor

  	
   

  	
  

  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject

  Matter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

EXHIBIT B

to Pledge and Security Agreement

 

SECOND LIEN NOTES TRADEMARK SECURITY AGREEMENT

 

This SECOND LIEN NOTES TRADEMARK SECURITY AGREEMENT,
dated as
of            ,   ,
200   (this “Agreement”), is made by [NAME OF GRANTOR] a
[STATE OF INCORPORATION] corporation (the “Grantor”), in favor of WELLS
FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”), as collateral Agent
(together with its successor(s) thereto in such capacity, the “Collateral
Agent”) for each of the Secured Parties.

 

W  I  T  N  E  S  S  E  T
H :

 

WHEREAS, pursuant to the Indenture, dated as of March 15,
2010 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the “Indenture”), among Reddy Ice Corporation, a Nevada
corporation (the “Company”), the Trustee and the Collateral Agent, the
Company has issued the Notes;

 

WHEREAS, in connection with the Indenture, the
Grantor has executed and delivered a Pledge and Security Agreement, dated as of
March 15, 2010   (as, amended, supplemented,
amended and restated or otherwise modified from time to time, the “Security
Agreement”);

 

WHEREAS, pursuant to the Indenture and pursuant to
clause (e) of Section 4.5 of the Security Agreement, the Grantor is
required to execute and deliver this Agreement and to grant to the Collateral
Agent a continuing security interest in all of the Trademark Collateral (as
defined below) to secure all Secured Obligations; and

 

WHEREAS, the Grantor has duly authorized the
execution, delivery and performance of this Agreement;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Grantor
agrees, for the benefit of each Secured Party, as follows:

 

SECTION 1. 
Definitions.  Unless
otherwise defined herein or the context otherwise requires, terms used in this
Agreement, including its preamble and recitals, have the meanings provided in
the Security Agreement.

 

SECTION 2. 
Grant of Security Interest. 
The Grantor hereby grants to the Collateral Agent, for its benefit and
the ratable benefit of each other Secured Party, a continuing security interest
in all of the following property, whether now or hereafter existing or acquired
by the Grantor (the “Trademark Collateral”):

 

(a)                                  (i) all of
its trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, certification 

 

1

 

marks, collective marks,
logos and other source or business identifiers, and all goodwill of the
business associated therewith, now existing or hereafter adopted or acquired including
those referred to in Item A of Schedule I hereto, whether
currently in use or not, all registrations and recordings thereof and all
applications in connection therewith whether pending or in preparation for
filing, including registrations, recordings and applications in the United
States Patent and Trademark Office or in any office or agency of the United
States of America or any State thereof or any other country or political subdivision
thereof or otherwise, and all common-law rights relating to the foregoing and (ii) the
right to obtain all reissues, extensions or renewals of the foregoing
(collectively referred to as the “Trademark”);

 

(b)                                 all Trademark
licenses for the grant by or to the Grantor of any right to use any Trademark,
including each Trademark license referred to in Item B of Schedule I
hereto;

 

(c)                                  all of the
goodwill of the business connected with the use of, and symbolized by the items
described in, clause (a), and to the extent applicable clause (b);

 

(d)                                 the right to
sue third parties for past, present and future infringements of any Trademark
Collateral described in clause (a) and, to the extent applicable, clause (b) and

 

(e)                                  all proceeds
of, and rights associated with, the foregoing.

 

Notwithstanding the foregoing, “Trademark
Collateral” shall not include (collectively, the “Trademark Excluded Property”)
(i) any permit or license or any contractual obligation entered into by
Parent, the Company or any Subsidiary Guarantor (A) that prohibits or
requires the consent of any Person other than the Company and its Affiliates
which has not been obtained as a condition to the creation by Parent, the
Company or the applicable Subsidiary Guarantor of a Lien on any right, title or
interest in such permit, license or contractual obligation or (B) to the
extent that any requirement of law applicable thereto prohibits the creation of
a Lien thereon, but only, with respect to the prohibition in clauses (A) and
(B), to the extent, and for as long as, such prohibition is not terminated or
rendered unenforceable or otherwise deemed ineffective by the Uniform
Commercial Code or any other requirement of law, (ii) property owned by
the Company or any Subsidiary Guarantor that is subject to a Lien permitted by
clause (6) of the definition of “Permitted Liens” (as defined in the
Indenture) if the contractual obligation pursuant to which such Lien is granted
(or in the document providing for such Lien) prohibits or requires the consent
of any Person other than the Company and its Affiliates which has not been
obtained as a condition to the creation of any other Lien on such item of
property or (iii) any “intent to use” trademark applications for which a
statement of use has not been filed (but only until such statement is filed); provided, however,
that “Trademark Excluded Property” shall not include any proceeds, products,
substitutions or replacements of Trademark Excluded Property (unless such
proceeds, products, substitutions or replacements would otherwise constitute
Trademark Excluded Property), which assets subject to such Lien shall not
constitute Trademark Collateral under any circumstance.

 

2

 

SECTION 3. 
Security Agreement.  This
Agreement has been executed and delivered by the Grantor for the purpose of
registering the security interest of the Collateral Agent in the Trademark
Collateral with the United States Patent and Trademark Office and corresponding
offices in other countries of the world. 
The security interest granted hereby has been granted as a supplement
to, and not in limitation of, the security interest granted to the Collateral
Agent for its benefit and the ratable benefit of each other Secured Party under
the Security Agreement.  The Security
Agreement (and all rights and remedies of the Collateral Agent and each Secured
Party thereunder) shall remain in full force and effect in accordance with its
terms.

 

SECTION 4. 
Release of Liens; Release of Grantor.  The lien and security interest in the
Trademark Collateral and any Grantor shall be released pursuant to the
provisions of the Indenture.

 

SECTION 5. 
Acknowledgment.  The
Grantor does hereby further acknowledge and affirm that the rights and remedies
of the Collateral Agent with respect to the security interest in the Trademark
Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein)
are incorporated by reference herein as if fully set forth herein.

 

SECTION 6. 
Notes Document.  This
Agreement is a Notes Document executed pursuant to the Indenture and shall
(unless otherwise expressly indicated herein) be construed, administered and
applied in accordance with the terms and provisions thereof.

 

SECTION 7. 
Intercreditor Agreement.  Notwithstanding anything herein to the contrary, the
Liens and security interests granted to the Collateral Agent pursuant to this
Agreement, the exercise of any right or remedy
by the Collateral Agent  hereunder and
the obligations of the Guarantor  hereunder, in
each case, with respect to the Collateral are subordinated and subject to the
limitations and provisions of the Intercreditor Agreement.  In the event of any conflict between the
terms of the Intercreditor Agreement and the terms of this Agreement, the terms
of the Intercreditor Agreement shall govern and control.

 

SECTION 8. 
Counterparts.  This
Agreement may be executed by the parties hereto in several counterparts, each
of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement.

 

3

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be duly executed and delivered by Authorized Officer
as of the date first above written.

 

	
   

  	
  [NAME
  OF GRANTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4

 

SCHEDULE I

to Trademark Security Agreement

 

Item
A.  Trademarks

 

Registered Trademarks

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending Trademark Applications

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  

  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Trademark Applications In Preparation

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Docket No.

  	
   

  	
  Expected

  Filing Date

  	
   

  	
  Products/

  Services

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Trademark Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject

  Matter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

EXHIBIT C 

to Second Lien Pledge and Security Agreement

 

SECOND LIEN NOTES COPYRIGHT SECURITY AGREEMENT

 

This SECOND LIEN NOTES COPYRIGHT SECURITY AGREEMENT,
dated as of
            
    , 200   (this “Agreement”), is made by
[NAME OF GRANTOR] a [STATE OF INCORPORATION] corporation (the “Grantor”),
in favor of WELLS FARGO BANK, N.A. (“Wells Fargo”), as Collateral Agent
(together with its successor(s) in such capacity, the “Collateral Agent”)
for each of the Secured Parties.

 

W I T N E S S E T H :

 

WHEREAS, pursuant to the Indenture, dated as of March 15,
2010 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the “Indenture”), among Reddy Ice Corporation, a Nevada
corporation (the “Company”), the Lenders and the Collateral Agent, the
Company has issued the Notes;

 

WHEREAS, in connection with the Indenture, the
Grantor has executed a delivered a Subsidiary Pledge arid Security Agreement,
dated as of March 15, 2010  (as
amended, supplemented, amended and restated or otherwise modified from time to
time, “Security Agreement”);

 

WHEREAS, pursuant to the Indenture and pursuant to
and to clause (e) of Section 4.5 of the Security Agreement, the
Grantor is required to execute and deliver this Agreement and to grant to the
Collateral Agent a continuing security interest in all of the Copyright
Collateral (as defined below) to secure all Secured Obligations; and

 

WHEREAS, the Grantor has duly authorized the
execution, delivery and performance of this Agreement;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Grantor
agrees, for the benefit of each Secured Party, as follows:

 

SECTION 1. 
Definitions.  Unless
otherwise defined herein or the context otherwise requires, terms used in this
Agreement, including its preamble and recitals, have the meanings provided in
the Security Agreement.

 

SECTION 2. 
Grant of Security Interest. 
The Grantor hereby grants to the Collateral Agent, for its benefit and
the ratable benefit of each other Secured Party, a continuing security interest
in all of the following (the “Copyright Collateral”), whether now or
hereafter existing or acquired by the Grantor: 
all copyrights of the Grantor, whether statutory or common law,
registered or unregistered and whether published or unpublished, now or
hereafter in force throughout the world including all of the Grantor’s right,
title and interest in and to all copyrights registered in the United States Copyright
Office or anywhere else in the world and also including 

 

1

 

the copyrights referred to
in Item A of Schedule I hereto, and registrations and recordings
thereof and all applications for registration thereof, whether pending or in
preparation, and all copyright licenses, including each copyright license
referred to in Item B of Schedule I hereto and all proceeds of
the foregoing.

 

Notwithstanding the foregoing, “Copyright
Collateral” shall not include (collectively, the “Copyright Excluded Property”)
(i) any permit or license or any contractual obligation entered into by
Parent, the Company or any Subsidiary Guarantor (A) that prohibits or requires
the consent of any Person other than the Company and its Affiliates which has
not been obtained as a condition to the creation by Parent, the Company or the
applicable Subsidiary Guarantor of a Lien on any right, title or interest in
such permit, license or contractual obligation or (B) to the extent that
any requirement of law applicable thereto prohibits the creation of a Lien
thereon, but only, with respect to the prohibition in clauses (A) and
(B), to the extent, and for as long as, such prohibition is not terminated or
rendered unenforceable or otherwise deemed ineffective by the Uniform
Commercial Code or any other requirement of law or (ii) property owned by
the Company or any Subsidiary Guarantor that is subject to a Lien permitted by
clause (6) of the definition of “Permitted Liens” (as defined in the
Indenture) if the contractual obligation pursuant to which such Lien is granted
(or in the document providing for such Lien) prohibits or requires the consent
of any Person other than the Company and its Affiliates which has not been
obtained as a condition to the creation of any other Lien on such item of
property,; provided, however, that “Copyright Excluded
Property” shall not include any proceeds, products, substitutions or replacements
of Copyright Excluded Property (unless such proceeds, products, substitutions
or replacements would otherwise constitute Copyright Excluded Property), which
assets subject to such Lien shall not constitute Copyright Collateral under any
circumstance.

 

SECTION 3. 
Security Agreement.  This
Agreement has been executed and delivered by the Grantor for the purpose of
registering the security interest of the Collateral Agent in the Copyright
Collateral with the United States Copyright Office and corresponding offices in
other countries of the world.  The
security interest granted hereby has been granted as a supplement to, and not
in limitation of, the security interest granted to the Collateral Agent for its
benefit and the ratable benefit of each other Secured Party under the Security
Agreement.  The Security Agreement (and
all rights and remedies of the Collateral Agent and each Secured Party
thereunder) shall remain in full force and effect in accordance with its terms.

 

SECTION 4. 
Release of Liens; Release of Grantor.  The lien and security interest in the
Copyright Collateral and any Grantor shall be released pursuant to the
provisions of the Indenture.

 

SECTION 5. 
Acknowledgment.  The
Grantor does hereby further acknowledge and affirm that the rights and remedies
of the Collateral Agent with respect to the security interest in the Copyright
Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein)
are incorporated by reference herein as if fully set forth herein.

 

SECTION 6. 
Notes Document.  This
Agreement is a Notes Document executed pursuant to the Indenture and shall
(unless otherwise expressly indicated herein) be construed. administered and applied
in accordance with the terms and provisions thereof.

 

2

 

SECTION 7. 
Intercreditor Agreement.  Notwithstanding anything herein to the contrary, the
Liens and security interests granted to the Collateral Agent pursuant to this
Agreement, the exercise of any right or remedy
by the Collateral Agent  hereunder and
the obligations of the Guarantor  hereunder, in
each case, with respect to the Collateral are subordinated and subject to the
limitations and provisions of the Intercreditor Agreement.  In the event of any conflict between the
terms of the Intercreditor Agreement and the terms of this Security Agreement,
the terms of the Intercreditor Agreement shall govern and control.

 

SECTION 8. 
Counterparts.  This
Agreement may be executed by the parties hereto in several counterparts, each
of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement.

 

3

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be duly executed and delivered by its Authorized
Officer as of the date first above written.

 

	
   

  	
  [NAME
  OF GRANTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4

 

SCHEDULE I

to Copyright Security Agreement

 

Item
A.  Copyrights/Mask Works

 

Registered Copyrights/Mask Works

 

	
  Country

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  

  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Copyright/Mask Work Pending Registration Applications

 

	
  Country

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  

  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Copyright/Mask Work Registration Applications In Preparation

 

	
  Country

  	
   

  	
  Docket No.

  	
   

  	
  Expected

  Filing Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Copyright/Mask Work Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

ANNEX I

to the Second Lien Pledge and Security Agreement

 

SUPPLEMENT TO 

PLEDGE AND SECURITY AGREEMENT

 

This SUPPLEMENT, dated as of
                        
    ,         (this
“Supplement”), is to the Pledge and Security Agreement, dated as of March 15,
2010  (as amended, supplemented, amended
and restated or otherwise modified from time to time, the “Pledge and
Security Agreement”), among the Grantors (such capitalized term, and other
terms used in this Supplement, to have the meanings set forth in Article I
of the Pledge and Security Agreement) from time to time party thereto, in favor
of WELLS FARGO BANK, N.A. (“Wells Fargo”), as collateral Agent (together
with its successor(s) thereto in such capacity, the “Collateral Agent”)
for each of the Secured Parties.

 

W  I  T  N  E  S  S  E  T
H :

 

WHEREAS, pursuant to the Indenture, dated as of March 15,
2010 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the “Indenture”), among Reddy Ice Corporation, a Nevada
corporation (the “Company”), the Company has issued the Notes;

 

WHEREAS, pursuant to the provisions of Section 7.6
of the Pledge and Security Agreement, each of the undersigned is becoming a
Grantor under the Pledge and Security Agreement; and

 

WHEREAS, each of the undersigned
desires to become a “Grantor” under the Pledge and Security Agreement in order
to induce the Secured Parties to continue to hold the Notes;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, each of the
undersigned agrees, for the benefit of each Secured Party, as follows.

 

SECTION 1. 
Party to Pledge and Security Agreement, etc.  In accordance with the terms of the Pledge
and Security Agreement, by its signature below each of the undersigned hereby
irrevocably agrees to become a Grantor under the Pledge and Security Agreement
with the same force and effect as if it were an original signatory thereto and
each of the undersigned hereby (a) agrees to be bound by and comply with
all of the terms and provisions of the Pledge and Security Agreement applicable
to it as a Grantor, (b) grants to the Collateral Agent for the benefit of
the Secured Parties a security interest in the Collateral as security for the
Secured Obligations, and (c) represents and warrants that the
representations and warranties made by it as a Grantor thereunder are true and
correct as of the date hereof, unless stated to relate solely to an earlier
date, in which case such representations and warranties shall be true and
correct as of 

 

1

 

such earlier date.  In furtherance of the foregoing, each
reference to a “Grantor” and/or “Grantors” in the Pledge and Security Agreement
shall be deemed to include each of the undersigned.

 

SECTION 2. 
Representations.  Each of
the undersigned Grantor hereby represents and warrants that (a) this
Supplement has been duly authorized, executed and delivered by it and that this
Supplement and the Pledge and Security Agreement constitute the legal, valid
and binding obligation of each of the undersigned, enforceable against it in
accordance with terms, and (b) attached hereto are all Schedules to the
Pledge and Security Agreement providing information with respect to the undersigned.

 

SECTION 3. 
Full Force of Pledge and Security Agreement.  Except as expressly supplemented hereby, the
Pledge and Security Agreement shall remain in full force and effect in accordance
with its terms.

 

SECTION 4. 
Severability.  Wherever
possible each provision of this Supplement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Supplement shall be prohibited by or invalid under such law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or, the remaining provisions of
this Supplement or the Pledge and Security Agreement.

 

SECTION 5. 
Governing Law, Entire Agreement, etc.  THIS
SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND
5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).  This
Supplement and the other Notes Documents constitute the entire understanding
among the parties hereto with respect to the subject matter thereof and
supersede any prior agreements, written or oral, with respect thereto.

 

SECTION 6. 
Counterparts.  This
Supplement may be executed by the parties hereto in several counterparts, each
of which shall be deemed to be an original and all of which shall constitute together
but one and the same agreement.

 

2

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be duly executed and delivered by its Authorized
Officer as of the date first above written.

 

	
   

  	
  [NAME
  OF ADDITIONAL SUBSIDIARY]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME
  OF ADDITIONAL SUBSIDIARY]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  ACCEPTED
  AND AGREED FOR ITSELF AND ON BEHALF OF THE SECURED PARTIES:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION, 

  	
   

  
	
  as
  Collateral Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

3

 

ANNEX II

 

[Form of]

 

ADDITIONAL SECURED PARTY JOINDER

 

[Name
of Additional Secured Creditor]

[Address
of Additional Secured Creditor]

 

[Date]

 

 

The undersigned is the agent (the “Authorized
Representative”) for Persons wishing to become “Additional
Secured  Parties” (the “New
Secured Parties”) under the Security Agreement dated as of dated as of March 15,
2010 (as heretofore amended and/or supplemented, the “Security Agreement”
(terms used without definition herein have the meanings assigned thereto in the
Security Agreement)) among Company, Parent, the other Grantors party thereto
and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent (the “Collateral
Agent”).

 

In consideration of the foregoing, the undersigned
hereby:

 

(i)                                    represents that
the Authorized Representative has been authorized by the New Secured Parties to
become a party to the Security Agreement on behalf of the New Secured Parties
under that [DESCRIBE OPERATIVE AGREEMENT] (the “New Secured Agreement”)
and to act as the Authorized Representative for the New Secured Parties;

 

(ii)                                 acknowledges that the New
Secured Parties have received a copy of the Security Agreement, the Indenture
and the Intercreditor Agreement;

 

(iii)                              appoints and authorizes the
Collateral Agent to take such action as agent on its behalf and on behalf of
all other Secured Parties and to exercise such powers under the Security
Agreement and the Intercreditor Agreement as are delegated to the Collateral
Agent by the terms thereof, together with all such powers as are reasonably
incidental thereto; and

 

(iv)                             accepts and acknowledges the
terms of the Security Agreement and the Intercreditor Agreement applicable to
it and the New Secured Parties and agrees to serve as Authorized Representative
for the New Secured Parties with respect to the New Secured

 

1

 

Agreement and agrees on its own behalf and on
behalf of the New Secured Parties to be bound by the terms thereof applicable
to holders of Additional Secured Obligations, with all the rights and
obligations of an Additional Secured Party thereunder and bound by all the
provisions thereof as fully as if it had been an Additional Secured Party on
the effective date of the Security Agreement.

 

The Collateral Agent, by acknowledging and agreeing
to this Additional Secured Creditor Consent, accepts the appointment set forth
in clause (iii) above.

 

The name and address of the representative for
purposes of Section 7.7 of the Security Agreement are as follows:

 

[name and address of Authorized Representative]

 

THIS ADDITIONAL SECURED PARTY JOINDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK.

 

2

 

IN WITNESS WHEREOF, the undersigned has caused this
Additional Secured Party Joinder to be duly executed by its authorized officer
as of the        day of
20    .

 

	
   

  	
  [NAME
  OF AUTHORIZED REPRESENTATIVE]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  Acknowledged
  and Agreed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION, 

  	
   

  	
   

  
	
     as
  Collateral Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Reddy Ice Holdings, Inc., a Delaware
  corporation,

  	
   

  	
   

  
	
     as
  Grantor

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

3

 

SCHEDULE I

to Supplement No.     

to Second Lien Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Capital
Stock

 

	
   

  	
   

  	
  Common Stock

  	
   

  
	
  Issuer
  (corporate)

  	
   

  	
  Authorized

     Shares  

  	
   

  	
  Outstanding

      Shares   

  	
   

  	
  % of Shares

      Pledged

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Limited Liability Company Interests

  	
   

  
	
  Issuer
  (limited liability company)

  	
   

  	
  % of Limited Liability

  Company Interests Pledged

  	
   

  	
  Type of Limited Liability

  Company Interests Pledged

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Partnership Interests

  	
   

  
	
  Issuer
  (partnership)

  	
   

  	
  % of Partnership

  Interests Owned

  	
   

  	
  % of Partnership

  Interests Pledged

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

SCHEDULE II

to Supplement No.     

to Second Lien Pledge and Security Agreement

 

Item
A.  Locations of each Grantor:

 

	
  Name
  of Grantor:

  	
   

  	
  Location for purposes of UCC:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
  [LOCATION]

  

 

Item
B.  Merger or other corporate
reorganization.

 

	
  Name
  of Grantor:

  	
   

  	
  Merger or other corporate reorganization:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
   

  

 

Item
C.  Taxpayer ID numbers.

 

	
  Name
  of Grantor:

  	
   

  	
  Taxpayer ID numbers:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
   

  

 

Item
D.  Government Contracts:

 

	
  Name
  of Grantor:

  	
   

  	
  Description of Contract:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
   

  

 

1

 

Item
E.  Deposit Accounts:

 

	
  Name
  of Grantor:

  	
   

  	
  Description of Deposit Account:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
   

  

 

2

 

SCHEDULE III

to Supplement No.     

to Second Lien Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Item
A.  Patents

 

Issued Patents

 

	
  Country

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending Patent Applications

 

	
  Country

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Patent Applications In Preparation

 

	
  Country

  	
   

  	
  Docket No.

  	
   

  	
  Expected

  Filing Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Patent Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject

  Matter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

SCHEDULE IV

to Supplement No.     

to Second Lien Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Item
A.  Trademarks

 

Registered Trademarks

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending Trademark Applications

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Trademark Applications In Preparation

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Docket No.

  	
   

  	
  Expected

  Filing Date

  	
   

  	
  Products/

  Services

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item B.  Trademark Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject

  Matter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

SCHEDULE V

to Supplement No.     

to Second Lien Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Item
A.  Copyrights/Mask Works

 

Registered Copyrights/Mask Works

 

	
  Country

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Copyright/Mask Work Pending Registration Applications

 

	
  Country

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Copyright/Mask Work Registration Applications In Preparation

 

	
  Country

  	
   

  	
  Docket No.

  	
   

  	
  Expected

  Filing Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Copyright/Mask Work Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject

  Matter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

SCHEDULE VI

to Supplement No.     

to Second Lien Pledge and Security Agreement

([Name of Additional Subsidiary]

 

Trade Secret or Know-How Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject

  MatterExhibit 10.6

 

PLEDGE
AND SECURITY AGREEMENT

 

This PLEDGE AND SECURITY AGREEMENT, dated as of March 15,
2010 (as amended, supplemented, amended and restated or otherwise modified from
time to time, this “Security Agreement”), is made by REDDY ICE
CORPORATION, a Nevada corporation (the “Borrower”), REDDY ICE HOLDINGS,
INC., a Delaware corporation (“Parent”) and each Subsidiary of the
Borrower (collectively, the “Subsidiary Grantors” and together with the
Borrower and Parent, the “Grantors”) from time to time a party to this
Security Agreement, in favor of JPMORGAN CHASE BANK, N.A. (“JPMorgan”),
as administrative agent (together with its successor(s) thereto in such
capacity, the “Administrative Agent”) for each of the Secured Parties
(terms used herein have the meanings set forth in or incorporated by reference
in Article I).

 

W  I  T
N  E  S  S  E  T  H  :

 

WHEREAS, pursuant to the Credit Agreement, dated as
of March 15, 2010  (as amended,
supplemented, amended and restated or otherwise
modified from time to time, the “Credit Agreement”), among the Borrower,
the Lenders, and the Administrative Agent, the Lenders have extended
Commitments to make Credit Extensions to the Borrower; and

 

WHEREAS, as a condition precedent to the making of
the Credit Extensions under the Credit Agreement, each Grantor is required to
execute and deliver this Security Agreement;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, each Grantor
agrees, for the benefit of each Secured Party, as follows:

 

ARTICLE
I

DEFINITIONS

 

SECTION 1.1. 
Certain Terms.  The
following terms (whether or not underscored) when used in this Security
Agreement, including its preamble and recitals, shall have the following
meanings (such definitions to be equally applicable to the singular and plural
forms thereof):

 

“Administrative Agent” is defined in the preamble.

 

“Borrower” is defined in the preamble.

 

“Collateral” is defined in Section 2.1.

 

“Collateral Account” is defined in clause (b) of
Section 4.3.

 

“Computer Hardware and Software Collateral”
means:

 

(a)                                  all computer
and other electronic data processing hardware, integrated computer systems,
central processing units, memory units, display terminals, printers, 

 

1

 

features, computer elements,
card readers, tape drives, hard and soft disk drives, cables, electrical supply
hardware, generators, power equalizers, accessories and all peripheral devices
and other related computer hardware;

 

(b)                                 all software
programs (including both source code, object code and all related applications
and data files), whether now owned, licensed or leased or hereafter acquired by
a Grantor, designed for use on the computers and electronic data processing hardware
described in clause (a) above;

 

(c)                                  all firmware
associated therewith;

 

(d)                                 all
documentation (including flow charts, logic diagrams, manuals, guides and
specifications) with respect to such hardware, software and firmware described
in preceding clauses (a) through (c); and

 

(e)                                  all rights with
respect to all of the foregoing, including any and all copyrights, licenses,
options, warranties, service contracts, program services, test rights, maintenance
rights, support rights, improvement rights, renewal rights and indemnifications
and any substitutions, replacements, additions or model conversions of any of
the foregoing.

 

“Control Agreement” means an agreement in
form and substance reasonably satisfactory to the Administrative Agent which
provides for the Administrative Agent to have “control” as defined in Section 8-106
of the UCC, as such term relates to investment property (other than
certificated securities or commodity contracts), or as used in Section 9-106
of the UCC, as that term relates to Deposit Accounts or commodity contracts).

 

“Copyright Collateral” means all copyrights
of the Grantors, whether statutory or common law, registered or unregistered
and whether published or unpublished, now or hereafter in force throughout the
world including all of the Grantors’ rights, titles and interests in and to all
copyrights registered in the United States Copyright Office or anywhere else in
the world also including the copyrights referred to in Item A of Schedule
V hereto, and registrations and recordings thereof and all applications for
registration thereof, whether pending or in preparation of all copyright
licenses, including each copyright license referred to in Item B of Schedule
V hereto.

 

“Credit Agreement” is defined in the first
recital.

 

“Distributions” means all non-cash dividends
paid on Capital Securities constituting Collateral, non-cash liquidating
dividends paid on Capital Securities constituting Collateral shares of Capital
Securities constituting Collateral resulting from (or in connection with the exercise
of) stock splits, reclassifications, warrants, options, non-cash dividends,
mergers, consolidations, and all other non-cash distributions (whether similar
or dissimilar to the foregoing) on or with respect to any Capital Securities
constituting Collateral, but excluding Dividends.

 

“Dividends” means cash dividends and cash
distributions with respect to any Capital Securities constituting Collateral
that are not a liquidating dividend.

 

2

 

“Filing Statements” means all UCC financing
statements or other similar financing statements and UCC termination statements
required pursuant to the Loan Documents.

 

“First Lien Intercreditor Agreement” means that
certain first lien intercreditor agreement dated the Closing Date, among the
Administrative Agent and Wells Fargo Bank, National Association, as the
collateral agent for Borrower’s 11.25% Senior Secured Notes due 2015, as the
same may be amended, supplemented or otherwise modified from time to time.

 

“Foreign Pledge Agreement” means any
supplemental pledge agreement governed by the laws of a jurisdiction other than
the United States (or a State thereof) or the District of Columbia executed and
delivered by Parent, the Borrower or any of its Subsidiaries pursuant to the
terms of this Security Agreement or the Credit Agreement, in form and substance
reasonably satisfactory to the Administrative Agent, as may be necessary or
desirable under the laws of organization or incorporation of a Subsidiary to
further protect or perfect the Lien on and security interest in any Collateral.

 

“Governmental Authority” means the government
of the United States, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other Person exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

 

“Grantors” is defined in the preamble.

 

“Inchoate Liens” means Liens of the type set
forth in clause (f), (g), (h), (j), (l) and (m) of Section 7.2.3
of the Credit Agreement.

 

“Intellectual Property Collateral” means,
collectively, the Computer Hardware and Software Collateral, the Copyright
Collateral, the Patent Collateral, the Trademark Collateral and the Trade Secrets
Collateral.

 

“Intercreditor Agreements” means, collectively,
the First Lien Intercreditor Agreement and the Junior Lien Intercreditor
Agreement.

 

“JPMorgan” is defined in the preamble.

 

“Junior Lien Intercreditor Agreement” means
that certain junior lien intercreditor agreement dated the Closing Date, among
the Administrative Agent, and Wells Fargo Bank, National Association, in its
capacity as collateral agent for (x) the Borrower’s 11.25% Senior Secured
Notes due 2015 and (y) the Borrower’s 10.5% Second Lien Notes due 2015, as
the same may be amended, supplemented or otherwise modified from time to time.

 

“Loan Documents” means the Credit Agreement,
the Collateral Documents, the First Lien Intercreditor Agreement and the Junior
Lien Intercreditor Agreement.

 

“Material Adverse Effect” means a material
adverse effect on (a) the condition (financial or otherwise), business,
operations, assets, liabilities (contingent or otherwise) or properties 

 

3

 

of the Borrower and its
Subsidiaries taken as a whole, (b) the rights and remedies of any Secured
Party under the Loan Documents taken as a whole or (c) the ability of
Parent, the Borrower or any Subsidiary Guarantor to perform its Obligations
under any Loan Document.

 

“Obligor” means, as
the context may require, Parent, the Borrower, Subsidiary Guarantors and each
other Person (other than a Secured Party) obligated under any Loan Document.

 

“Organic Document” means, relative to any
Grantor, as applicable, its certificate of incorporation, by laws, certificate
of partnership, partnership agreement, certificate of formation, limited
liability agreement, operating agreement and all shareholder agreements, voting
trusts and similar arrangements applicable to any of such Grantor’s Capital
Securities.

 

“Parent” is defined in the preamble hereto.

 

“Patent Collateral” means:

 

(a)                                  all letters
patent and applications for letters patent throughout the world, including all
patent applications in preparation for filing and each patent and patent application
referred to in Item A of Schedule III hereto;

 

(b)                                 all reissues,
divisions, continuations, continuations-in-part, extensions, renewals and reexaminations
of any of the items described in clause (a); and

 

(c)                                  all patent
licenses, and other agreements providing a Grantor with the right to use any
items of the type referred to in clauses (a) and (b) above,
including each patent license referred to in Item B of Schedule III
hereto.

 

“Receivables” is defined in clause (c) of
Section 2.1.

 

“Related Contracts” is defined in clause (c) of
Section 2.1.

 

“Securities Act” is defined in clause (a) of
Section 6.2.

 

“Security Agreement” is defined in the preamble.

 

“Termination Date” means the date on which
all Obligations have been paid in full in cash.

 

“Trademark Collateral” means:

 

(a)                                  (i) all
trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, certification marks,
collective marks, logos and other source or business identifiers, and all
goodwill of the business associated therewith, now existing or hereafter
adopted or acquired including those referred to in Item A of Schedule
IV hereto, whether currently in use or not, all registrations and
recordings thereof and all applications in connection therewith, whether
pending or in preparation for filing, including registrations, recordings and
applications in 

 

4

 

the United States Patent and
Trademark Office or in any office or agency of the United States of America or
any State thereof or any other country or political subdivision thereof or
otherwise, and all common-law rights relating
to the foregoing, and (ii) the right to obtain all reissues, extensions or
renewals of the foregoing (collectively referred to as the “Trademark”);

 

(b)                                 all Trademark
licenses for the grant by or to a Grantor of any right to use any Trademark,
including each Trademark license referred to in Item B of Schedule IV
hereto;

 

(c)                                  all of the
goodwill of the business connected with the use of, and symbolized by the items
described in, clause (a), and to the extent applicable clause (b); and

 

(d)                                 the right to
sue third parties for past, present and future infringement of any Trademark Collateral
described in clause (a) and, to the extent applicable, clause (b).

 

“Trade Secrets Collateral” means all common
law and statutory trade secrets and all other confidential, proprietary or
useful information and all know-how obtained by or used in or contemplated at
any time for use in the business of a Grantor (all of the foregoing being collectively
called a “Trade Secret”), whether or not such Trade Secret has been
reduced to a writing or other tangible form, including all
documents and things embodying, incorporating or referring in any way to such
Trade Secret, all Trade Secret licenses, including each Trade Secret licenses
referred to in Schedule VI hereto.

 

SECTION 1.2. 
Credit Agreement Definitions. 
Unless otherwise defined herein or the context otherwise requires, terms
used in this Security Agreement, including its preamble recitals, have the meanings
provided in the Credit Agreement.

 

SECTION 1.3. 
UCC Definitions.  Unless
otherwise defined herein or in the Credit Agreement or the context otherwise
requires, terms for which meanings are provided in the UCC are used in this
Security Agreement (whether or not capitalized herein), including its preamble
and recitals, with such meanings.

 

ARTICLE
II

SECURITY INTEREST

 

SECTION 2.1. 
Grant of Security Interest. 
Each Grantor hereby grants to the Administrative Agent, for its benefit
and the ratable benefit of each other Secured Party, a continuing security
interest in all of such Grantor’s following property, whether tangible or
intangible, whether now or hereafter existing, owned or acquired by such
Grantor, and wherever located (collectively, the “Collateral”):

 

(a)                                  (i) all
investment property in which such Grantor has an interest (including the
Capital Securities of each issuer of such Capital Securities described in Schedule
I hereto) and (ii) all other Capital Securities which are interests in
limited liability companies or partnerships in which such Grantor has an
interest (including the Capital Securities of each issuer of such Capital
Securities described in Schedule I hereto), in each case together 

 

5

 

with Dividends and
Distributions payable in respect of the Collateral described in the foregoing clauses
(a)(i) and (a)(ii);

 

(b)                                 all goods,
including all equipment and inventory in all of its forms;

 

(c)                                  all accounts,
contracts, contract rights, chattel paper, documents, instruments, promissory
notes and general intangibles (including tax refunds and all payment intangibles),
whether or not arising out of or in connection with the sale or lease of goods
or the rendering of services, and all rights in and to all security agreements,
guaranties, leases and other contracts securing or otherwise relating to any
such accounts, contracts, contract rights, chattel paper, documents,
instruments, promissory notes, general intangibles and payment intangibles (all
of the foregoing collectively referred to as the “Receivables”, and any
and all such security agreements, guaranties, leases and other contracts
collectively referred to as the “Related Contracts”);

 

(d)                                 all
Intellectual Property Collateral;

 

(e)                                  all Deposit
Accounts;

 

(f)                                    all letter of
credit rights;

 

(g)                                 all commercial
tort claims in which such Grantor has rights (including as a plaintiff) listed
on Schedule VII;

 

(h)                                 the Collateral
Account, all cash, checks, drafts, notes, bills of exchange, money orders,
other like instruments and all investment property held in the Collateral
Account (or in any sub-account thereof) and all interest and earnings in
respect thereof;

 

(i)                                     all books,
records, writings, data bases, information and other property relating to, used
or useful in connection with, evidencing, embodying, incorporating or referring
to, any of the foregoing in this Section;

 

(j)                                     all other
property and rights of every kind and description and interests therein; and

 

(k)                                  all products,
offspring, rents, issues, profits, returns, income, supporting obligations and
proceeds of and from any and all of the foregoing Collateral (including
proceeds which constitute property of the types described in clauses (a) through
(j), and, to the extent not otherwise included, all payments under
insurance (whether or not the Administrative Agent is the loss payee thereof),
or any indemnity, warranty or guaranty, payable by reason of loss or damage to
or otherwise with respect to any of the foregoing Collateral).

 

Notwithstanding
the foregoing, “Collateral” shall not include (collectively, the “Excluded Property”)
(i) any permit or license or any contractual obligation entered into by
Parent, the Borrower or any Subsidiary Guarantor (A) that prohibits or
requires the consent of any Person other than the Borrower and its Affiliates
which has not been obtained as a condition to the creation by 

 

6

 

Parent,
the Borrower or the applicable Subsidiary Guarantor of a Lien on any right,
title or interest in such permit, license or contractual obligation or (B) to
the extent that any requirement of law applicable thereto prohibits the
creation of a Lien thereon, but only, with respect to the prohibition in
clauses (A) and (B), to the extent, and for as long as, such
prohibition is not terminated or rendered unenforceable or otherwise deemed
ineffective by the Uniform Commercial Code or any other requirement of law, (ii) property
owned by the Borrower or any Subsidiary Guarantor that is subject to a Lien
permitted by Section 7.2.3(d) of the Credit Agreement with
respect to Indebtedness permitted by Section 7.2.2(e)(ii) and (iii) of
the Credit Agreement if the contractual obligation pursuant to which such Lien
is granted (or in the document providing for such Lien) prohibits or requires
the consent of any Person other than the Borrower and its Affiliates which has
not been obtained as a condition to the creation of any other Lien on such item
of property, (iii) any “intent to use” trademark applications for which a
statement of use has not been filed (but only until such statement is filed), (iv) cash
collateral for (A) letters of credit in an amount not to exceed
$15.0 million, it being understood that on the Closing Date the Company
designated account #796636298 at J.P. Morgan Chase Bank, N.A. to maintain such
cash and (B) Hedging Obligations entered into in the ordinary course of
business in an aggregate amount not to exceed $5.0 million, (v) any
general intangibles to the extent containing an enforceable restriction against
the granting of a security interest therein, (vi) leasehold real property
interests and (vii) investment property consisting of voting Capital
Securities of an issuer that is a Foreign Subsidiary (other than a Foreign
Subsidiary that (i) is treated as a partnership under the Code or (ii) is
not treated as an entity that is separate from (A) such Grantor; (B) any
Person that is treated as partnership under the Code or (C) any “United
States person” (as defined in Section 7701(a)(30) of the Code)) of such
Grantor, in excess of 65% of the total combined voting power of all Capital
Securities of each such Foreign Subsidiary; provided,
however, that “Excluded Property”
shall not include any proceeds, products, substitutions or replacements of
Excluded Property (unless such proceeds, products, substitutions or
replacements would otherwise constitute Excluded Property), which assets
subject to such Lien shall not constitute Collateral under any circumstance.

 

SECTION 2.2. 
Security for Obligations. 
This Security Agreement and the Collateral in which the Administrative
Agent for the benefit of the Secured Parties is granted a security interest
hereunder by the Grantors secure the payment of all Obligations now or
hereafter existing.

 

SECTION 2.3. 
Grantors Remain Liable. 
Anything herein to the contrary notwithstanding

 

(a)                                  the Grantors
will remain liable under the contracts and agreements included in the
Collateral to the extent set forth therein, and will perform all of their
duties and obligations under such contracts and agreements to the same extent
as if this Security Agreement had not been executed;

 

(b)                                 the exercise by
the Administrative Agent of any of its rights hereunder will not release any
Grantor from any of its duties or obligations under any such contracts or
agreements included in the Collateral; and

 

7

 

(c)                                  no Secured
Party will have any obligation or liability under any contracts or agreements
included in the Collateral by reason of the security interests granted by this
Security Agreement, nor will any Secured Party be obligated to perform any of
the obligations or duties of any Grantor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder.

 

SECTION 2.4. 
Security Interest Absolute, etc. 
This Security Agreement shall in all respects be a continuing, absolute,
unconditional and irrevocable grant of security interest and shall remain in
full force and effect until the Termination Date or until otherwise released in
accordance with Section 7.5. 
All rights of the Secured Parties and the security interests granted to
the Administrative Agent (for its benefit and the ratable benefit of each other
Secured Party) hereunder, and all obligations of the Grantors hereunder, shall,
in each case, be absolute, unconditional and irrevocable irrespective of:

 

(a)                                  any lack of validity,
legality or enforceability of any Loan Document;

 

(b)                                 the failure of
any Secured Party (i) to assert any claim or demand or to enforce any
right or remedy against any Obligor or any other Person (including any other
Guarantor) under the provisions of any Loan Document or otherwise, or (ii) to
exercise any right or remedy against any other guarantor (including any other
Guarantor) of, or collateral securing, any Obligations;

 

(c)                                  any change in
the time, manner or place of payment of, or in any other term of, all or any
part of the Obligations, or any other extension, compromise or renewal of any
Obligation;

 

(d)                                 any reduction,
limitation, impairment or termination of any Obligations for any reason,
including any claim of waiver, release, surrender, alteration or compromise,
and shall not be subject to (and each Grantor hereby waives any right to or
claim of) any defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality, nongenuineness,
irregularity, compromise, unenforceability of, or any other event or occurrence
affecting, any Obligations or otherwise;

 

(e)                                  any amendment
to, rescission, waiver, or other modification of, or any consent to or
departure from, any of the terms of any Loan Document;

 

(f)                                    any addition,
exchange or release of any collateral or of any Person that is (or will become)
a guarantor (including the Grantors hereunder) of the Obligations, or any
surrender or non-perfection of any collateral, or any amendment to or waiver or
release or addition to, or consent to or departure from, any other guaranty
held by any Secured Party securing any of the Obligations; or

 

(g)                                 any other
circumstance which might otherwise constitute a defense available to, or a
legal or equitable discharge of, any Obligor, any surety or any guarantor.

 

SECTION 2.5. 
Postponement of Subrogation. 
Each Grantor agrees that it will not exercise any rights which it may
acquire by way of rights of subrogation under any Loan 

 

8

 

Document to which it is a
party.  No Grantor shall seek or be
entitled to seek any contribution or reimbursement from any Obligor, in respect
of any payment made under any Loan Document or otherwise, until following the
Termination Date.  Any amount, paid to
such Grantor on account of any such subrogation rights prior to the Termination
Date shall be held in trust for the benefit of the Secured Parties and shall
immediately be paid and turned over to the Administrative Agent for the benefit
of the Secured Parties in the exact form received by such Grantor (duly
endorsed in favor of the Administrative Agent, if required), to be credited and
applied against the Obligations, whether matured or unmatured, in accordance
with Section 6.1; provided that if such Grantor has made
payment to the Secured Parties of all or any part of the Obligations and the
Termination Date has occurred, then at such Grantor’s request, the Administrative
Agent (on behalf of the Secured Parties) will, at the expense of such Grantor,
execute and deliver to such Grantor appropriate documents (without recourse and
without representation or warranty) necessary to evidence the transfer by
subrogation to such Grantor of an interest in the Obligations resulting from
such payment.  In furtherance of the
foregoing, at all times prior to the Termination Date, such Grantor shall
refrain from taking any action or commencing any proceeding against any Obligor
(or its successors or assigns, whether in connection with a bankruptcy
proceeding or otherwise) to recover any amounts in respect of payments made
under this Security Agreement to any Secured Party.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

In order to induce the Secured Parties to enter into
the Credit Agreement and make Credit Extensions thereunder, the Grantors represent
and warrant to each Secured Party as set forth below.

 

SECTION 3.1. 
As to Capital Securities of Subsidiaries.  With respect to any Subsidiary of any Grantor
that is

 

(a)                                  a corporation,
business trust, joint stock company or similar Person, all Capital Securities
issued by such Subsidiary are duly authorized and validly issued, fully paid
and non-assessable, and represented by a certificate; and

 

(b)                                 a partnership
or limited liability company, no Capital Securities issued by such Subsidiary (i) are
dealt in or traded on securities exchanges or in securities markets, (ii) expressly
provide that such Capital Securities are a security governed by Article 8
of the UCC or (iii) are held in a securities account.

 

The percentage of the issued
and outstanding Capital Securities of each Subsidiary pledged by any Grantor
hereunder are as set forth on Schedule I hereto.

 

SECTION 3.2. 
Grantor Name, Location, etc. 
The jurisdiction in which each Grantor is located for purposes of Sections
9-301 and 9-307 of the UCC is set forth in Item A of Schedule II
hereto.  During the five years preceding
the date hereof, no Grantor has been known by any legal name different from the
one set forth on the signature page hereto, no Grantor used any other name
on any filings with the IRS, nor has any such Grantor been the subject of any
merger, acquisition (including asset acquisition) or other corporate
reorganization, except as set 

 

9

 

forth in Item B of Schedule
II hereto.  The name set forth on the
signature page is the true and correct name of such Grantor.  Each Grantor’s organizational identification
number is (and, during the four months preceding the date hereof, such Grantor
has not had an organizational identification number different from that) set
forth in Item C of Schedule II hereto.  No Grantor is a party to any material
federal, state or local government contract except as set forth in Item D
of Schedule II hereto.  No Grantor
maintains any Deposit Accounts with any Person except as set forth in Item E
of Schedule II hereto. No Grantor has changed its jurisdiction of
incorporation or organization during the four months preceding the date hereof.

 

SECTION 3.3. 
Ownership, No Liens, etc. 
Such Grantor owns its Collateral free clear of any Lien, except for (a) Liens
created by this Security Agreement, (b) Inchoate Liens and, (c) in
the case of Collateral other than the Capital Securities of each Subsidiary
pledged hereunder, Liens permitted by Section 7.2.3 of the Credit
Agreement.  No effective financial
statement or other filing similar in effect covering any Collateral is on file
in any record office, except those filed in favor of the Administrative Agent
relating to this Security Agreement or those filed in connection with Liens
permitted by Section 7.2.3 of the Credit Agreement or as to which a duly
executed termination statement relating to such financing statement or other instrument
has been delivered to the Administrative Agent on the Closing Date.

 

SECTION 3.4. 
Possession of Inventory, etc. 
Except with respect to each Grantor’s automated ice production and
packaging system known under the Trademark “THE ICE FACTORY”, each Grantor’s
ice merchandisers located at certain of such Grantor’s customer locations and
each Grantor’s ice product inventory located at certain third-party warehouses,
each Grantor agrees that it will maintain exclusive possession of its goods,
instruments, promissory notes and inventory, other than (a) inventory in transit
in the ordinary course of business, (b) inventory which is in the
possession or control of a warehouseman, bailee agent or other Person (other
than a Person controlled by or under common control with such Grantor) that has
been notified of the security interest created in favor of the Secured Parties
pursuant to this Security Agreement, and has agreed to hold such inventory
subject to the Secured Parties’ Lien and waive any Lien held by it against such
inventory and (c) instruments or promissory notes that have been delivered
to the Administrative Agent pursuant to Section 3.5.

 

SECTION 3.5. 
Negotiable Documents, Instruments and Chattel Paper.  Such Grantor has delivered to the
Administrative Agent possession of all originals of all negotiable documents,
instruments, promissory notes and chattel paper owned or held by such Grantor
on the Closing Date with a value in excess of $500,000.

 

SECTION 3.6. 
Intellectual Property Collateral. 
With respect to any Intellectual Property Collateral the loss, impairment
or infringement of which could reasonably be expected to have a material
adverse effect on the condition (financial or otherwise), business, operations,
assets, liabilities (contingent or otherwise) or properties of the Obligors
taken as a whole:

 

(a)                                  such
Intellectual Property Collateral is subsisting and has not been adjudged
invalid or unenforceable, in whole or in part;

 

(b)                                 such
Intellectual Property Collateral is valid and enforceable;

 

10

 

(c)                                  such Grantor
has made all necessary filings and recordations to protect its interest in such
Intellectual Property Collateral, including recordations of all of its interests
in the Patent Collateral and Trademark Collateral in the United States Patent
and Trademark Office and (subject to the terms of the Credit Agreement) in
corresponding offices throughout the world, and its claims to the Copyright
Collateral in the United States Copyright Office and (subject to the terms of
the Credit Agreement) in corresponding offices throughout the world;

 

(d)                                 such Grantor is the exclusive
owner of the entire and unencumbered right, title and interest in and to such
Intellectual Property Collateral and no claim has been made that the use of
such Intellectual Property Collateral does or may violate the asserted rights
of any third party; and

 

(e)                                  such Grantor
has performed and will continue to perform all acts and has paid and will
continue to pay all required fees and taxes to maintain each and every such
item of Intellectual Property Collateral in full force and effect.

 

Except as would not have a
Material Adverse Effect, each Grantor owns directly or is entitled to use by
license or otherwise, all patents, Trademarks, Trade Secrets, copyrights, mask
works, licenses, technology, know-how, processes and rights with respect to any
of the foregoing used in, necessary for or of importance to the conduct of such
Grantor’s business.

 

SECTION 3.7. 
Validity, etc.  This
Security Agreement creates a valid security interest in the Collateral securing
the payment of the Obligations.  Each
Grantor has filed or caused to be filed all Filing Statements in the
appropriate offices therefor (or has authenticated and delivered to the
Administrative Agent Filing Statements suitable for filing in such offices) and
has taken all of the actions necessary to create perfected and (in the case of
Collateral consisting of the Capital Securities of each Subsidiary pledged
hereunder, subject to Inchoate Liens, and in case of all other Collateral,
subject to Section 7.2.3 of the Credit Agreement) first-priority security
interests in the applicable Collateral (other than (i) Deposit Accounts, (ii) cash
and (iii) negotiable documents, instruments, promissory notes and chattel
paper with a value of less than $500,000).

 

SECTION 3.8. 
Authorization, Approval, etc. 
Except as have been, or on the Effective Date will be, obtained or made
and are, or on the Effective Date will be, in full force and effect, and except
(i) with respect to any securities issued by a Subsidiary of the Grantor,
as may be required in connection with a disposition of such securities by laws
affecting the offering and sale of securities generally and (ii) any “change
of control” or similar filings required by any Governmental Authority, no
authorization, approval or other action by, and no notice to or filing with,
any Governmental Authority is required either

 

(a)                                  for the grant
by the Grantors of the security interest granted hereby, the pledge by the
Grantors of any Collateral pursuant hereto or for the execution, delivery and
performance of this Security Agreement by the Grantors;

 

(b)                                 for the
perfection of the Administrative Agent of its rights hereunder (other than with
respect to filings for the perfection of security interests that will not be
made 

 

11

 

the Closing Date but
delivered to the Administrative Agent for filing on the Closing Date); or

 

(c)                                  for the
exercise by the Administrative Agent of the voting or other rights provided for
in this Security Agreement.

 

SECTION 3.9. 
Best Interests.  It is in
the best interests of such Grantor to execute this Security Agreement inasmuch
as such Grantor will, as a result of being a Subsidiary of the Borrower, derive
substantial direct and indirect benefits from the Credit Extensions made from
time to time to the Borrower by the Lenders pursuant to the Credit Agreement,
and each Grantor agrees that the Secured Parties are relying on this
representation in agreeing to make Credit Extensions to the Borrower.

 

ARTICLE
IV

COVENANTS

 

Each Grantor covenants and agrees that, until the
Termination Date, such Grantor will perform, comply with and be bound by the
obligations set forth below.

 

SECTION 4.1. 
As to Investment Property, etc.

 

SECTION 4.1.1.  Capital Securities of Subsidiaries.  No Grantor will allow any of its Subsidiaries
that is

 

(a)                                  a corporation,
business trust, joint stock company or similar Person, to issue uncertificated
securities; and

 

(b)                                 a partnership
or limited liability company, to (i) issue Capital Securities that are to
be dealt in or traded on securities exchanges or in
securities markets, (ii) expressly provide in its Organic Documents that
its Capital Securities are securities governed by Article 8 of the UCC, or
(iii) place such Subsidiary’s Capital Securities in a securities account; provided
that such Grantor may allow any Subsidiaries to take any of the actions set
forth in clauses (i), (ii) or (iii) so long as the
Administrative Agent has received evidence satisfactory to it that it has a
perfected, first-priority security interest in such Capital Securities (subject
to Inchoate Liens).

 

SECTION 4.1.2. 
Investment Property (other than Certificated Securities).  With respect to any investment property
(other than certificated securities) owned by any Grantor (other than cash in
an aggregate amount not exceeding $250,000), such Grantor will cause a Control
Agreement relating to such investment property to be executed and delivered by
such Grantor and the applicable financial intermediary in favor of the
Administrative Agent at the time such investment property is acquired or established.

 

SECTION 4.1.3. 
Stock Powers, etc.  Each Grantor agrees that all certificated securities
delivered by such Grantor pursuant to this Security Agreement will be
accompanied by duly executed undated blank stock powers, or other equivalent
instruments of transfer reasonably acceptable to the Administrative Agent,

 

12

 

SECTION 4.1.4. 
Continuous Pledge.  Each
Grantor will (subject to the terms of the Credit Agreement) deliver to the
Administrative Agent and at all times keep pledged to the Administrative Agent
pursuant hereto, on a first-priority (subject to Section 7.2.3 of the
Credit Agreement), perfected basis all investment property constituting
Collateral, all payment intangibles to the extent they are evidenced by a
document, instrument, promissory note or chattel paper and, following an Event
of Default, all interest and principal with respect to such payment intangibles,
all Dividends and Distributions with respect to investment property
constituting Collateral, and all proceeds and rights from time to time received
by or distributable to such Grantor in respect of any of the foregoing
Collateral.  Each Grantor agrees that it
will, promptly (and in any event within 30 days following receipt thereof), deliver
to the Administrative Agent possession of all originals of negotiable
documents, instruments, promissory notes and chattel paper with a value in
excess of $500,000 that it acquires following the Closing Date.

 

SECTION 4.1.5. 
Voting Rights; Dividends, etc. 
Each Grantor agrees:

 

(a)                                  promptly upon
receipt of notice of the occurrence and continuance of an Event of Default from
the Administrative Agent and without any request therefor by the Administrative
Agent, so long as such Event of Default shall continue, to deliver (properly
endorsed where required hereby or requested by the Administrative Agent) to the
Administrative Agent all Dividends and Distributions with respect to investment
property, all interest, principal, other cash payments on payment intangibles,
and all proceeds of the Collateral, in each case thereafter received by such
Grantor, all of which shall be held by the Administrative Agent as additional
Collateral;

 

(b)                                 with respect to
Collateral consisting of general partner interests or limited liability company
interests, to use commercially reasonable efforts to permit modifications to
the respective Organic Documents to admit the Administrative Agent, as a general
partner or member, respectively, immediately upon the occurrence and during the
continuance of an Event of Default; and

 

(c)                                  so long as the
Administrative Agent has notified such Grantor of the Administrative Agent’s
intention to exercise its voting power under this clause,

 

(i)                                     that the Administrative
Agent may exercise (to the exclusion of such Grantor) the voting power and all
other incidental rights of ownership with respect to any investment property
constituting Collateral and such Grantor hereby grants the Administrative Agent
an irrevocable proxy, exercisable under such circumstances, to vote such investment
property; and

 

(ii)                                  to promptly deliver to the
Administrative Agent such additional proxies and other documents as may be
necessary to allow the Administrative Agent to exercise such voting power.

 

All Dividends,
Distributions, interest, principal, cash payments, payment intangibles and proceeds
which may at any time and from time to time be held by such Grantor but which
such Grantor is then obligated to deliver to the Administrative Agent, shall,
until delivery to Administrative Agent, be held by such Grantor separate and
apart from its other property in trust for the 

 

13

 

Administrative Agent.  The Administrative Agent agrees that unless
an Event of Default shall have occurred and be continuing and the
Administrative Agent shall have given the notice referred to in clause (c),
such Grantor will have the exclusive voting power with respect to any investment
property constituting Collateral and the Administrative Agent will, upon the
written request of such Grantor, promptly deliver such proxies and other
documents, if any, as shall be reasonably requested by such Grantor which are
necessary to allow such Grantor to exercise that voting power; provided
that no vote shall be cast, or consent, waiver, or ratification given or action
taken by such Grantor that would impair any such Collateral or be inconsistent
with or violate any provision of any Loan Document.

 

SECTION 4.2. 
Name of Grantor.  No
Grantor will change its name or jurisdiction of incorporation or organization
or organizational identification number except upon 30 days’ prior written notice
(or such shorter period as may be agreed to by the Administrative Agent) to the
Administrative Agent and taking all actions necessary to ensure continued perfection
of the Administrative Agent’s security interest in the Collateral at all times
following any such change.  If any
Grantor is organized outside of the United States, it will not change its “location”
as determined in accordance with Sections 9-301 and 9-307 of the UCC and as set
forth in Item A of Schedule II hereto except upon 30 days’ prior
written notice (or such shorter period as may be agreed to by the
Administrative Agent) to the Administrative Agent.

 

SECTION 4.3. 
As to Receivables.

 

(a)                                  Each Grantor shall have the
right to collect all Receivables so long as no Event of Default shall have
occurred and be continuing.

 

(b)                                 Upon (i) the occurrence
and continuance of an Event of Default and (ii) the delivery of written
notice by the Administrative Agent to each Grantor, all proceeds of Collateral
received by such Grantor shall be delivered in kind to the Administrative Agent
for deposit to a Deposit Account (the “Collateral Account”) of such
Grantor maintained with the Administrative Agent, and such Grantor shall not
commingle any such proceeds, and shall hold separate and apart from all other
property, all such proceeds in express trust for the benefit of the Administrative
Agent until delivery thereof is made to the Administrative Agent.

 

(c)                                  Following the delivery of
notice pursuant to clause (b)(ii) of this Section, the
Administrative Agent shall have the right to apply any amount in the Collateral
Account to the payment of any Obligations which are due and payable.

 

(d)                                 With respect to the
Collateral Account, it is hereby confirmed and agreed that (i) deposits in
each Collateral Account are subject to a security interest as contemplated
hereby, (ii) each such Collateral Account shall be under the control of
the Administrative Agent and, (iii) the Administrative Agent shall have
the sole right of withdrawal over such Collateral Account.

 

SECTION 4.4. 
As to Collateral.

 

(a)                                  Subject to clause (b) of
this Section, each Grantor (i) may in the ordinary course of its business,
at its own expense, sell, lease or furnish under the
contracts of service any 

 

14

 

of the inventory normally
held by such Grantor for such purpose, and use and consume, in the ordinary
course of its business, any raw materials, work in process or materials
normally held by such Grantor for such purpose, (ii) will, at its own
expense, endeavor to collect, as and when due, all amounts due with respect to
any of the Collateral, including the taking of such action with respect to such
collection as the Administrative Agent may reasonably request following the occurrence
of an Event of Default or, in the absence of such request, as such Grantor may
deem advisable, and (iii) may grant, in the ordinary course of business,
to any party obligated on any of the Collateral, any rebate,
refund, or allowance to which such party may be lawfully entitled, and may accept,
in connection therewith, the return of goods, the sale or lease of which shall
have given rise to such Collateral.

 

(b)                                 At any time following the
occurrence and during the continuance of an Event of Default, whether before or
after the maturity of any of the Obligations, the Administrative Agent may (i) revoke
any or all of the rights of each Grantor set forth in clause (a), (ii) notify
any parties obligated on any of the Collateral to make payment to the
Administrative Agent of any amounts due or to become due thereunder and (iii) enforce
collection of any of the Collateral by suit or otherwise and surrender,
release, or exchange all or any part thereof, or compromise or extend or renew
for any period (whether or not longer than the original period) any indebtedness
thereunder or evidenced thereby.

 

(c)                                  Upon request of the
Administrative Agent following the occurrence and during the continuance of an
Event of Default, each Grantor will, at its own expense notify any parties obligated
on any of the Collateral to make payment to the Administrative Agent of any
amounts due or to become due thereunder.

 

(d)                                 At any time following the
occurrence and during the continuation of an Event of Default, the
Administrative Agent may endorse, in the name of such Grantor, any item,
howsoever received by the Administrative Agent, representing any payment on or
other proceeds of any of the Collateral.

 

SECTION 4.5. 
As to Intellectual Property Collateral.  Each Grantor covenants and agrees to comply
with the following provisions as such provisions relate to any Intellectual
Property Collateral material to the condition (financial or otherwise),
business, operations, liabilities (contingent or otherwise) or properties of
the Obligors taken as a whole:

 

(a)                                  such Grantor will
not (i) do or fail to perform any act whereby any of the Patent Collateral
may lapse or become abandoned or dedicated to the public or unenforceable, (ii) permit
any of its licensees to (A) fail to continue to use any of the Trademark
Collateral in order to maintain all of the Trademark Collateral in full force
free from any claim of abandonment for non-use, (B) fail to maintain as in
the past quality of products and services offered under all of the Trademark
Collateral, (C) employ all of the Trademark Collateral registered with any
federal or state or foreign authority with an appropriate notice of such
registration, (D) adopt or use any other Trademark which is confusingly
similar or a colorable imitation of any of the Trademark Collateral, (E) use
any of the Trademark Collateral registered with any federal, state or foreign
authority except for the uses for which registration or application for
registration of all of the Trademark Collateral has been made or (F) do or
permit any act or knowingly omit to do any act whereby 

 

15

 

any of the Trademark
Collateral may lapse or become invalid or unenforceable, or (iii) do or
permit any act or knowingly omit to do any act whereby any of the Copyright
Collateral or any of the Trade Secrets Collateral may lapse or become invalid
or unenforceable or placed in the public domain except upon expiration of the
end of an unrenewable term of a registration thereof, unless in the case of any
of the foregoing requirements in clauses (i), (ii) and (iii),
such Grantor either (x) reasonably and in good faith determine that any of
such Intellectual Property Collateral is of negligible economic value to such
Grantor, or (y) have a valid business purpose to do otherwise;

 

(b)                                 such Grantor
shall promptly notify the Administrative Agent if it knows or has reason to
know, that any application or registration relating to any material item of the
Intellectual Property Collateral may become abandoned or dedicated to the public or placed in the
public domain or invalid or unenforceable, or of any adverse determination or development
(including the institution of, or any such determination or develop in, any
proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any foreign
counterpart thereof or any court) regarding such Grantor’s ownership of any of
the Intellectual Property Collateral, its right to register the same or to keep
and maintain and enforce the same;

 

(c)                                  such Grantor
will take all necessary steps, including in any proceeding before the United
States Patent and Trademark Office, the United States Copyright Office or
(subject to the terms of the Credit Agreement) any similar office or agency in
any other country or any political subdivision thereof, to maintain and pursue
any application (and to obtain the relevant registration) filed with respect
to, and to maintain any registration of, the Intellectual Property Collateral,
including the filing of applications for renewal, affidavits of use, affidavits
of incontestability and opposition, interference and cancellation proceedings
and the payment of fees and taxes (except to the extent that dedication,
abandonment or invalidation is permitted under the foregoing clause (a) or
(b)); and

 

(d)                                 on the Closing
Date (and thereafter upon the request of the Administrative Agent; provided
that, unless an Event of Default has occurred and is continuing, such request
shall be made no more than once in any period of 12 consecutive months) such
Grantor will promptly execute and deliver to the Administrative Agent (as
applicable) a Patent Security Agreement, Trademark Security Agreement and/or
Copyright Security Agreement, as the case may be, in the forms of Exhibit A,
Exhibit B and Exhibit C hereto following its obtaining
an interest in any such Intellectual Property, and shall execute and deliver to
the Administrative Agent any other document required to acknowledge or register
or perfect the Administrative Agent’s interest in any part of such item of Intellectual
Property Collateral unless the Grantor shall determine in good faith (with the
consent of the Administrative Agent, which consent shall not be unreasonably
withheld or delayed) that any Intellectual Property Collateral is of negligible
economic value to the Grantor.

 

SECTION 4.6.  Commercial Tort Claims.  Each Grantor shall notify the Administrative
Agent if such Grantor reasonably believes it is entitled to recover a commercial
tort claim the value of which is in excess of $1,000,000, and such Grantor
promptly (and in any event within 30 days of such acquisition) shall take all
such action reasonably requested by the Administrative 

 

16

 

Agent to grant to the
Administrative Agent and perfect a security interest in such commercial tort
claim.

 

SECTION 4.7. 
As to Deposit Accounts. 
With respect to any Deposit Accounts owned by any Grantor (other than
cash and cash equivalents not exceeding $250,000 in the aggregate and accounts
the entire balance of which is swept at least once every three business days to
an account described below), provided that, notwithstanding such threshold, a
Control Agreement shall always cover the Borrower’s and its Subsidiaries’ main
collection account, such Grantor will cause a Control Agreement relating to
such Deposit Account to be executed and delivered by such Grantor and the applicable
bank in favor of the Administrative Agent:

 

(a)                                  with respect to
Deposit Accounts maintained on the Closing Date, on the Closing Date; and

 

(b)  with respect to
Deposit Accounts established after the Closing Date, at the time such Deposit
Account is established.

 

SECTION 4.8. 
Further Assurances, etc. 
Each Grantor agrees that, from time to time at its own expense, it will
promptly execute and deliver all further instruments and documents, and take
all further action, that may be necessary or that the Administrative Agent may
reasonably request, in order to perfect, preserve and protect any security
interest granted or purported to be granted hereby or to enable the
Administrative Agent to exercise and enforce its rights and remedies hereunder
with respect to any Collateral.  Without
limiting the generality of the foregoing, such Grantor will

 

(a)                                  from time to
time upon the request of the Administrative Agent, promptly deliver to the
Administrative Agent such stock powers, instruments and similar documents,
reasonably satisfactory in form and substance to the Administrative Agent, with
respect to such Collateral as the Administrative Agent may reasonably request
and will, from time to time upon the request of the Administrative Agent after
the occurrence and during the continuance of any Event of Default promptly
transfer any securities constituting Collateral into the name of any nominee
designated by the Administrative Agent; if any Collateral shall be evidenced by
an instrument, negotiable document, promissory note or chattel paper with a
value in excess of $500,000, deliver and pledge to the Administrative Agent
hereunder such instrument, negotiable document, promissory note or chattel
paper duly endorsed and accompanied by duly executed instruments of transfer or
assignment, all in form and substance reasonably satisfactory to the
Administrative Agent;

 

(b)                                 file (or cause
to be filed) such Filing Statements or continuation statements, or amendments
thereto, and such other instruments or notices (including assignment of claim
form under or pursuant to the federal assignment of claims statute 31 U.S.C.
§ 3726, any successor or amended version thereof or any regulation
promulgated under or pursuant to any version thereof) as are necessary, in
order to perfect and preserve the security interests and other rights granted
or purported to be granted to the Administrative
Agent hereby;

 

17

 

(c)                                  deliver to the
Administrative Agent and at all times keep pledged to the Administrative Agent
pursuant hereto, on a first-priority (subject to Section 7.2.3 Credit
Agreement), perfected basis, at the reasonable request of the Administrative
Agent, all investment property constituting Collateral, all Distributions with
respect thereto, and after an Event of Default, all Dividends and all interest
and principal with respect to promissory notes, and all proceeds and rights
from time to time receive by or distributable to such Grantor in respect of any
of the foregoing Collateral;

 

(d)                                 furnish to the
Administrative Agent, from time to time at the Administrative Agent’s request,
statements and schedules further identifying and describing the Collateral and
such other reports in connection with the Collateral as the Administrative
Agent may reasonably request, all in reasonable detail; and

 

(e)                                  do all things
reasonably requested by the Administrative Agent in order to enable the
Administrative Agent to have control (as such term is defined in Article 8
and Article 9 of any applicable Uniform Commercial Code relevant to the
creation, perfection or priority of Collateral consisting of Deposit Accounts,
accounts and letter of credit rights) over any Collateral;

 

With respect to the
foregoing and the grant of the security interest hereunder, each Grantor hereby
authorizes the Administrative Agent to file one or more financing or
continuation statements, and amendments thereto, relative to all or any part of
the Collateral including any financing statement describing the collateral as “all
assets,” or words of similar effect. 
Each Grantor agrees that a carbon, photographic or other reproduction of
this Security Agreement or any financing statement covering the Collateral or
any part thereof shall be sufficient as a financing statement where permitted
by law.

 

ARTICLE
V

THE ADMINISTRATIVE AGENT

 

SECTION 5.1. 
Administrative Agent Appointed Attorney-in-Fact.  Each Grantor hereby irrevocably appoints the
Administrative Agent its attorney-in-fact, with full authority in the place and
stead of such Grantor and in the name of such Grantor or otherwise, from time
to time in the Administrative Agent’s discretion, following the occurrence and during
the continuance of an Event of Default, to take any action and to execute any
instrument which the Administrative Agent may deem necessary or advisable to
accomplish the purposes of this Security Agreement, including:

 

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

 

(b)                                 to receive,
endorse, and collect any drafts or other instruments, documents and chattel
paper, in connection with clause (a) above;

 

(c)                                  to file any
claims or take any action or institute any proceedings which the Administrative
Agent may deem necessary or desirable for the collection of any of the 

 

18

 

Collateral or otherwise to
enforce the rights of the Administrative Agent with respect to any of the
Collateral; and

 

(d)                                 to perform the
affirmative obligations of such Grantor hereunder.

 

Each Grantor hereby
acknowledges, consents and agrees that the power of attorney granted pursuant
to this Section is irrevocable and coupled with an interest.

 

SECTION 5.2. 
Administrative Agent May Perform.  If any Grantor fails to perform any agreement
contained herein, upon the occurrence and during the continuance of any Event
of Default, the Administrative Agent may itself perform, or cause performance
of, such agreement, and the expenses of the Administrative Agent incurred in
connection therewith shall be payable by such Grantor pursuant to Section 10.3
of the Credit Agreement.

 

SECTION .5.3. 
Administrative Agent Has No Duty. 
The powers conferred on the Administrative Agent hereunder are solely to
protect its interest (on behalf of the Secured Parties) in the Collateral and
shall not impose any duty on it to exercise any such powers.  Except for reasonable care of any Collateral
in its possession and the accounting for moneys actually received by it
hereunder, the Administrative Agent shall have no duty as to any Collateral or
responsibility for

 

(a)                                  ascertaining or
taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relative to any investment property, whether or not
the Administrative Agent has or is deemed to have knowledge of such matters, or

 

(b)                                 taking any
necessary steps to preserve rights against prior parties or any other rights pertaining
to any Collateral.

 

SECTION 5.4. 
Reasonable Care.  The
Administrative Agent is required to exercise reasonable care in the custody and
preservation of any of the Collateral in its possession; provided that
the Administrative Agent shall be deemed to have exercised reasonable care in
the custody and preservation of any of the Collateral, if it takes such action
for that purpose as Grantor reasonably requests in writing at times other than
upon the occurrence and during the  continuance of any Event of
Default, but failure of the Administrative Agent to comply with any such
request at any time shall not in itself be deemed a failure to exercise reasonable
care.

 

SECTION 5.5. 
Authority of Administrative Agent.  Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Security Agreement with
respect to any action taken by the Administrative Agent or the exercise or
non-exercise by the Administrative Agent of any option, right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Security Agreement shall, as between the Administrative Agent and
the Secured Parties, be governed by the Credit Agreement, the Intercreditor
Agreements and by such other agreements with respect thereto as may exist from
to time among them (including, without limitation, the other Loan Documents),
but, as between the Administrative Agent and the Grantors, the Administrative Agent
shall be conclusively presumed to be acting as agent for the Secured Parties
with full and valid authority so to act or refrain from acting, and the
Grantors shall not be under any obligation, or have any entitlement, to make
any 

 

19

 

inquiry respecting such
authority.  The Administrative Agent
shall have all of the rights and benefits afforded it under the Credit
Agreement and the Intercreditor Agreements in the administration of this
Security Agreement, as if such rights and benefits were specifically set forth
herein.

 

ARTICLE
VI 

REMEDIES

 

SECTION 6.1. 
Certain Remedies.  If any
Event of Default shall have occurred and be continuing:

 

(a)                                  The
Administrative Agent may exercise in respect of the Collateral, in addition to
other rights and remedies provided for herein or otherwise available to it, all
the rights and remedies of a secured party on default under the UCC (whether or
not the UCC applies to the affected Collateral) and also may

 

(i)                                     require each Grantor to, and
each Grantor hereby agrees that it will, at its expense and upon request of the
Administrative Agent forthwith, assemble all or part of the Collateral as
directed by the Administrative Agent and make it available to the
Administrative Agent at a place to be designated by the Administrative Agent
which is reasonably convenient to both parties, and

 

(ii)                                  without notice except as
specified below, sell the Collateral or any part thereof in one or more parcels
at public or private sale, at any of the Administrative Agent’s offices or
elsewhere, for cash, on credit or for future delivery, and upon such other
terms as the Administrative Agent may deem commercially reasonable.  Each Grantor agrees that, to the extent
notice of sale shall be required by law, at least ten days prior notice to such
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.  The Administrative Agent shall not be
obligated to make any sale of Collateral regardless of notice of sale having
been given.  The Administrative Agent may
adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned.

 

(b)                                 All cash
proceeds received by the Administrative Agent in respect of any sale of,
collection from, or other realization upon, all or any part of the Collateral
shall be applied by the Administrative Agent against, all or any part of the
Obligations as in Section 4.7 of the Credit Agreement.

 

(c)                                  The
Administrative Agent may

 

(i)                                     transfer all or any part of
the Collateral into the name of the Administrative Agent or its nominee, with
or without disclosing that such Collateral is subject to the Lien hereunder,

 

20

 

(ii)           notify
the parties obligated on any of the Collateral to make payment to the
Administrative Agent of any amount due or to become due thereunder,

 

(iii)          enforce
collection of any of the Collateral by suit or otherwise, and surrender,
release or exchange  all or any part
thereof, or compromise or extend or renew for any period (whether or not longer
than the original period) any obligations of any nature of any party with
respect thereto,

 

(iv)          endorse
any checks, drafts, or other writings in any Grantor’s name to allow collection
of the Collateral,

 

(v)           take
control of any proceeds of the Collateral,
and

 

(vi)          execute (in the
name, place and stead of any Grantor) endorsements,
assignments, stock powers and other instruments of conveyance or transfer with
respect to all or any of the Collateral.

 

SECTION 6.2. 
Securities Laws.  If the
Administrative Agent shall determine to exercise its right to sell all or any
of the Capital Securities that are Collateral pursuant to Section 6.1,
each Grantor agrees that, upon request of the Administrative Agent, such
Grantor will, at its own expense, use commercially reasonable efforts to:

 

(a)           execute and deliver, and cause (or, with respect to any
issuer which is not a Subsidiary of such Grantor, use its best efforts to
cause) each issuer of the Collateral contemplated to be sold and the directors
and officers thereof to execute and deliver, all such instruments and
documents, and do or cause to be done all such other acts and things, as may be
necessary or, in the opinion of the Administrative Agent, advisable to register
the sale of such Capital Securities under the provisions of the Securities Act
of 1933, as from time to time amended (the “Securities Act”), and cause
the registration statement relating thereto to become effective and to remain
effective for such period as prospectuses are required by law to be furnished,
and to make all amendments and supplements thereto and to the related
prospectus which, in the reasonable opinion of the Administrative Agent, are
necessary or advisable, all in conformity with the requirements of the
Securities Act and the rules and regulations of the SEC applicable
thereto;

 

(b)           use commercially reasonable efforts to qualify such
Capital Securities for sale under the state securities or “Blue Sky” laws and
to obtain all necessary governmental approvals for, the sale of such Capital
Securities, as requested by the Administrative Agent;

 

(c)           cause (or, with respect to any issuer which is not a
Subsidiary of such Grantor, use its best efforts to cause) each such issuer to
make available to its security holders, as soon as practicable, an earnings
statement that will satisfy the provisions of Section 11(a) of the Securities
Act; and

 

21

 

(d)           do or cause to be done all such other acts and things as
may be necessary to make such sale of the Collateral or any part thereof valid
and binding and in compliance with applicable law.

 

SECTION 6.3. 
Compliance with Restrictions. 
Each Grantor agrees that in any sale of any of the Collateral whenever
an Event of Default shall have occurred and be continuing, the Administrative
Agent is hereby authorized to comply with any limitation or restriction it connection with
such sale as it may be advised by counsel is necessary in order to (i) avoid
any violation of applicable law (including compliance with such procedures as
may restrict the number of prospective bidders and purchasers, require that
such prospective bidders and purchasers have certain qualifications, and
restrict such prospective bidders and purchasers to Persons who will represent
and agree that they are purchasing for their own account for investment and not
with a view to the distribution or resale of such Collateral), or (ii) obtain
any required approval of the sale or of the purchaser by any Governmental
Authority or official and such Grantor further agrees that such compliance
shall not result in such sale being considered or deemed not to have been made
in a commercially reasonable manner, nor shall the Administrative Agent be
liable nor accountable to such Grantor for any discount allowed by the reason
of the fact that such Collateral is sold in compliance with any such limitation
or restriction.

 

SECTION 6.4. 
Protection of Collateral.  The
Administrative Agent may from time to time, at its option, perform any act
which any Grantor fails to perform after being requested in writing so to
perform (it being understood that no such request need be given after the
occurrence and during the continuance of an Event of Default) and the
Administrative Agent may from time to time take any other action which the
Administrative Agent reasonably deems necessary for the maintenance,
preservation or protection of any of the Collateral or of its security interest
therein.

 

ARTICLE
VII

MISCELLANEOUS PROVISIONS

 

SECTION 7.1. 
Loan Document.  This
Security Agreement is a Loan Document executed pursuant to the Credit Agreement
and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms
and provisions thereof, including Article X thereof.

 

SECTION 7.2.  Intercreditor Agreements.  Notwithstanding anything herein to the contrary, the
Liens and security interests granted to the Administrative Agent pursuant to
this Security Agreement, the exercise
of any right or remedy by the Administrative Agent hereunder and the
obligations of the Grantors hereunder, in each case, with respect to the
Collateral are subordinated and subject to the limitations and provisions of
the Intercreditor Agreements.  In the
event of any conflict between the terms of the Intercreditor Agreements and the
terms of this Security Agreement, the terms of the Intercreditor Agreements
shall govern and control.

 

SECTION 7.3. 
Binding on Successors, Transferees and Assigns; Assignment.  This Security Agreement shall remain in full
force and effect until the Termination Date has occurred, shall be binding upon
the Grantors and their successors, transferees and assigns and shall 

 

22

 

inure to the benefit of and
be enforceable by each Secured Party and its successors, transferees and assigns.

 

SECTION 7.4. 
Amendments, etc.  No
amendment to or waiver of any provision of this Security Agreement, nor consent
to any departure by any Grantor from its obligations under this Security
Agreement, shall in any event be effective
unless the same shall be in writing and signed by the Administrative Agent (on
behalf of the Lenders or the Required Lenders, as the case may be, pursuant to Section 10.1
of the Credit Agreement) and the Grantors and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given.

 

SECTION 7.5. 
Notices.  All notices and
other communications provided for hereunder shall be in writing or by facsimile
and addressed, delivered or transmitted to the appropriate party at the address
or facsimile number of such party specified in the Credit Agreement or at such
other address or facsimile number as may be designated by such party in a notice to the
other party.  Any notice or other communication,
if mailed and properly addressed with postage prepaid or if properly addressed
and sent by pre-paid courier service, shall be deemed given when received; any
such notice or other communication, if
transmitted by facsimile, shall be deemed given when transmitted and electronically
confirmed.

 

SECTION 7.6. 
Release of Liens; Release of Grantor.  Upon (a) the Disposition of Collateral
not in contravention of the Credit Agreement (other than any Disposition to the
Borrower or a Grantor) or (b) the occurrence of the Termination Date, the
security interests granted herein shall automatically terminate with respect to
(i) such Collateral (in the case of clause (a))
or (ii) all Collateral (in the case of clause (b)).  Upon any such Disposition or termination, the
Administrative Agent will, at the Grantors’ sole expense, deliver to the
Grantors, without any representations, warranties or recourse of any kind whatsoever,
(i) such Collateral (in the case of clause (a)) or (ii) all
Collateral (in the case of clause (b)) held by the Administrative Agent
hereunder, and execute and deliver to the Grantors such documents as the
Grantors shall reasonably request to evidence such
termination.  In addition, at the request
of the Borrower, and at the sole expense of the Borrower, a Grantor shall be released
from its obligations hereunder in the event that (a) the Capital
Securities of such Grantor are Disposed of in a transaction permitted by the
Credit Agreement or (b) a Grantor ceases to be a Subsidiary of the
Borrower as a result of a transaction permitted by the Credit Agreement; provided
that the Borrower shall have delivered to the Administrative Agent, at least
three Business Days prior to the date of such proposed release, a written
request for release identifying the relevant Grantor and a certification by the
Borrower stating that such transaction is in compliance with the Loan
Documents.

 

SECTION 7.7. 
Additional Guarantors. 
Upon the execution and delivery by any other Person of a supplement in
the form of Annex I hereto,
such Person shall become a “Grantor” hereunder with the same force and effect
as if it were originally a party to this Security Agreement and named as a “Grantor”
hereunder.  The execution and delivery of
such supplement shall not require the consent of any other Grantor hereunder,
and the rights and obligations of each Grantor, hereunder shall remain in full
force and effect notwithstanding the addition of any new Grantor as a party to this Security Agreement.

 

23

 

SECTION 7.8. 
No Waiver; Remedies.  No
failure on the part of any Secured Party to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative
and not exclusive of any remedies provided by law.

 

SECTION 7.9. 
Headings.  The various
headings of this Security Agreement are inserted for convenience
only and shall not affect the meaning or interpretation of this Security
Agreement or any provisions thereof.

 

SECTION 7.10. 
Severability.  Any
provision of this Security Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such provision and such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Security Agreement or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

SECTION 7.11. 
Governing Law, Entire Agreement, etc.  THIS
SECURITY AGREEMENT SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK),
EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST
HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE
GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.  This
Security Agreement and the other Loan Documents constitute the entire
understanding among the parties hereto with respect to the subject matter
hereof and thereof and supersede any prior agreements, written or oral, with
respect thereto.

 

SECTION 7.12. 
Counterparts.  This
Security Agreement may be executed by the parties hereto in several counterparts,
each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.  Delivery of an executed counterpart of a
signature page to this Security Agreement by facsimile or other electronic
means (such as Adobe PDF file) shall be effective as delivery of a manually
executed counterpart of this Security Agreement.

 

SECTION 7.13. 
Foreign Pledge Agreements. 
Without limiting any of the rights, remedies, privileges or benefits
provided hereunder to the Administrative Agent for its benefit and the ratable
benefit of the other Secured Parties, each Grantor and the Administrative Agent
hereby agree that the terms and provisions of this Security Agreement in
respect of any Collateral subject to the pledge or other Lien of a Foreign
Pledge Agreement are, and shall deemed to be, supplemental and in addition to
the rights, remedies, privileges and benefits provided to the Administrative
Agent and the other Secured Parties under such Foreign Pledge Agreement and under
applicable law to the extent consistent with applicable law; provided
that in the event that the terms of this Security Agreement conflict or are
inconsistent with the applicable Foreign Pledge Agreement or applicable law
governing such Foreign Pledge Agreement, (i) to the extent that the
provisions of such Foreign Pledge Agreement or applicable foreign law are,
under applicable 

 

24

 

foreign law, necessary for
the creation, perfection or priority of the security interests in the
Collateral subject to such Foreign Pledge Agreement, the terms of such Foreign
Pledge Agreement or such applicable law shall be controlling and (ii) otherwise,
the terms hereof shall be controlling.

 

25

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Security Agreement to be duly executed and delivered by its
Authorized Officer as of the date first above written.

 

	
   

  	
  REDDY
  ICE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven J. Janusek

  
	
   

  	
   

  	
  Name:
  

  	
  Steven
  J. Janusek

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President, Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  REDDY
  ICE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven J. Janusek

  
	
   

  	
   

  	
  Name:
  

  	
  Steven
  J. Janusek

  
	
   

  	
   

  	
  Title:
  

  	
  Executive
  Vice President, Chief Financial Officer and Secretary

  

 

S-1

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Martha Pruitt Matthews

  
	
   

  	
   

  	
  Name:
  

  	
  Martha
  Pruitt Matthews

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice President

  

 

S-2

 

EXHIBIT A

To Pledge
and Security Agreement

 

PATENT
SECURITY AGREEMENT

 

This PATENT SECURITY AGREEMENT, dated as of
            
     , 200  (this “Agreement”), is made by
[NAME OF GRANTOR] a [STATE OF INCORPORATION] corporation (the “Grantor”),
in favor of JPMORGAN CHASE BANK, N.A. (“JPMorgan”), as administrative
agent (together with its successor(s) thereto in such capacity, the “Administrative
Agent”) for each of the Secured Parties.

 

W  I  T  N  E  S  S  E  T
H :

 

WHEREAS, pursuant to the Credit Agreement, dated as
of March 15, 2010 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the “Credit Agreement”), among
Reddy Ice Corporation, a Nevada corporation (the “Borrower”), the
Lenders and the Administrative Agent, the Lenders have extended Commitments to
make Credit Extensions to the Borrower;

 

WHEREAS, in connection with the Credit Agreement,
the Grantor has executed and delivered a Pledge and Security Agreement, dated
as of March 15, 2010  (as amended,
supplemented, amended and restated or otherwise modified from time to time, “Security
Agreement”);

 

WHEREAS, pursuant to the Credit Agreement and
pursuant to clause (d) of Section 4.5 of the Security Agreement, the
Grantor is required to execute and deliver this Agreement and to grant to the
Administrative Agent a continuing security interest in all of the Patent Collateral
(as defined below) to secure all Obligations; and

 

WHEREAS, the Grantor has duly authorized the
execution, delivery and performance of this Agreement;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Grantor
agrees, for the benefit of each Secured Party, as follows:

 

SECTION 1. 
Definitions.  Unless
otherwise defined herein or the context otherwise requires, terms used in this
Agreement, including its preamble and recitals, have the meaning provided in
the Security Agreement.

 

SECTION 2. 
Grant of Security Interest. 
The Grantor hereby grants to the Administrative Agent, for its benefit
and the ratable benefit of each other Secured Party, a continuing security
interest in all of the following property, whether now or hereafter existing or
acquired by the Grantor (the “Patent Collateral”):

 

1

 

(a)           all of its letters patent and applications for letters
patent throughout the world, including all patent applications in preparation
for filing and each patent and patent application referred to in Item A
of Schedule I attached hereto;

 

(b)           all reissues, divisions, continuations,
continuations-in-part, extensions, renewals and reexaminations of any of the
items described in clause (a);

 

(c)           all of its patent licenses, and other agreements providing
the Grantor with the right to use any items of the type referred to in clauses (a) and
(b) above, including each patent license referred to in Item B of Schedule
I attached hereto; and

 

(d)           all proceeds of, and rights associated with, the
foregoing.

 

Notwithstanding the
foregoing, “Patent Collateral” shall not include (collectively, the “Patent
Excluded Property”) (i) any permit or license or any contractual
obligation entered into by Parent, the Borrower or any Subsidiary Guarantor (A) that
prohibits or requires the consent of any Person other than the Borrower and its
Affiliates which has not been obtained as a condition to the creation by Parent,
the Borrower or the applicable Subsidiary Guarantor of a Lien on any right,
title or interest in such permit, license or contractual obligation or (B) to
the extent that any requirement of law applicable thereto prohibits the
creation of a Lien thereon, but only, with respect to the prohibition in
clauses (A) and (B), to the extent, and for as long as, such
prohibition is not terminated or rendered unenforceable or otherwise deemed
ineffective by the Uniform Commercial Code or any other requirement of law or (ii) property
owned by the Borrower or any Subsidiary Guarantor that is subject to a Lien
permitted by Section 7.2.3(d) of the Credit Agreement with
respect to Indebtedness permitted by Section 7.2.2(e)(ii) and (iii) of
the Credit Agreement if the contractual obligation pursuant to which such Lien
is granted (or in the document providing for such Lien) prohibits or requires
the consent of any Person other than the Borrower and its Affiliates which has
not been obtained as a condition to the creation of any other Lien on such item
of property,; provided, however, that “Patent Excluded Property”
shall not include any proceeds, products, substitutions or replacements of
Patent Excluded Property (unless such proceeds, products, substitutions or
replacements would otherwise constitute Patent Excluded Property), which assets
subject to such Lien shall not constitute Patent Collateral under any circumstance.

 

SECTION 3. 
Security Agreement.  This
Agreement has been executed and delivered by the Grantor for the purpose of
registering the security interest of the Administrative Agent in the Patent
Collateral with the United States Patent and Trademark Office and corresponding
offices in other countries of the world. 
The security interest granted hereby has been granted as a supplement
to, and not in limitation of, the security interest granted to the Administrative
Agent for its benefit and the ratable benefit of each other Secured Party under
the Security Agreement.  The Security
Agreement (and all rights and remedies of the Administrative Agent and each Secured
Party thereunder) shall remain in full force and effect in accordance with its
terms.

 

SECTION 4. 
Release of Liens; Release of Grantor.  Upon (i) the Disposition of Patent
Collateral not in contravention of the Credit Agreement or (ii) the
occurrence of the Termination Date, the security interests granted herein shall
automatically terminate with respect to 

 

2

 

(A) such Patent Collateral
(in the case of clause (i)) or (B) all Patent Collateral (in the
case of clause (ii)).  Upon any
such Disposition or termination, the Administrative Agent will, at the Grantor’s
sole expense, deliver to the Grantor, without any representations, warranties
or recourse of any kind whatsoever, (A) such Patent Collateral (in the
case of clause (i)) or (B) all Patent Collateral (in the case of clause
(ii)) held by the Administrative Agent hereunder, and execute and deliver
to the Grantor such documents as the Grantor shall reasonably request to
evidence such termination.  In addition,
at the request of the Borrower, and at the sole expense of the Borrower, the
Grantor shall be released from its obligations hereunder in the event that (a) the
Capital Securities of the Grantor are Disposed of in a transaction permitted by
the Credit Agreement or (b) the Grantor ceases to be a Subsidiary of the
Borrower as a result of a transaction permitted by the Credit Agreement; provided
that the Borrower shall have delivered to the Administrative Agent, at least
three Business Days prior to the date of such proposed release, a written
request for release naming the Grantor and a certification by the Borrower stating
that such transaction is in compliance with the Loan Documents.

 

SECTION 5. 
Acknowledgment.  The
Grantor does hereby further acknowledge and affirm that the rights and remedies
of the Administrative Agent with respect to the security interest in the Patent
Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein)
are incorporated by reference herein as if fully set forth herein.

 

SECTION 6. 
Loan Document.  This
Agreement is a Loan Document executed pursuant to the Credit
Agreement and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions thereof,
including Article X thereof.

 

SECTION 7. 
Intercreditor Agreements.  Notwithstanding anything herein to the contrary, the
Liens and security interests granted to the Administrative Agent pursuant to
this Agreement, the exercise of any right or
remedy by the Administrative Agent  hereunder and
the obligations of the Guarantor hereunder, in each case, with respect to the
Collateral are subordinated and subject to the limitations and provisions of
the Intercreditor Agreements.  In the
event of any conflict between the terms of the Intercreditor Agreements and the
terms of this Agreement, the terms of the Intercreditor Agreements shall govern
and control.

 

SECTION 8. 
Counterparts.  This
Agreement may be executed by the parties hereto in several counterparts, each
of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement.

 

3

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be duly executed and delivered by its Authorized
Officers as of the date first above written.

 

	
   

  	
  [NAME
  OF GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4

 

SCHEDULE I

to Patent Security Agreement

 

Item
A.  Patents

 

Issued Patents

 

	
  Country

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending Patent Applications

 

	
  Country

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Patent Applications In Preparation

 

	
  Country

  	
   

  	
  Docket No.

  	
   

  	
  Expected

  Filing Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Patent Licenses

 

	
  Country
  or 

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject 

  Matter

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

EXHIBIT B

to Pledge and Security Agreement

 

TRADEMARK SECURITY AGREEMENT

 

This TRADEMARK SECURITY AGREEMENT, dated as
of            ,     ,
200    (this “Agreement”), is made by [NAME OF GRANTOR] a
[STATE OF INCORPORATION] corporation (the “Grantor”), in favor of
JPMORGAN CHASE BANK, N.A. (“JPMorgan”), as administrative agent
(together with its successor(s) thereto in such capacity, the “Administrative
Agent”) for each of the Secured Parties.

 

W I T N E S S E T H :

 

WHEREAS, pursuant to the Credit Agreement, dated as
of March 15, 2010 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the “Credit Agreement”), among
Reddy Ice Corporation, a Nevada corporation (the “Borrower”), the
Lenders and the Administrative Agent, the Lenders have extended Commitments to
make Credit Extensions to the Borrower;

 

WHEREAS, in connection with the Credit Agreement,
the Grantor has executed and delivered a Pledge and Security Agreement, dated
as of March 15, 2010   (as, amended,
supplemented, amended and restated or otherwise modified from time to time, the
“Security Agreement”);

 

WHEREAS, pursuant to the Credit Agreement and
pursuant to clause (e) of Section 4.5 of the Security Agreement, the
Grantor is required to execute and deliver this Agreement and to grant to the
Administrative Agent a continuing security interest in all of the Trademark
Collateral (as defined below) to secure all Obligations; and

 

WHEREAS, the Grantor has duly authorized the
execution, delivery and performance of this Agreement;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Grantor
agrees, for the benefit of each Secured Party, as follows:

 

SECTION 1. 
Definitions.  Unless
otherwise defined herein or the context otherwise requires, terms used in this
Agreement, including its preamble and recitals, have the meanings provided in
the Security Agreement.

 

SECTION 2. 
Grant of Security Interest. 
The Grantor hereby grants to the Administrative Agent, for its benefit
and the ratable benefit of each other Secured Party, a continuing security
interest in all of the following property, whether now or hereafter existing or
acquired by the Grantor (the “Trademark Collateral”):

 

1

 

(a)           (i) all
of its trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, certification marks,
collective marks, logos and other source or business identifiers, and all
goodwill of the business associated therewith, now existing or hereafter
adopted or acquired including those referred to in Item A of Schedule
I hereto, whether currently in use or not, all registrations and recordings
thereof and all applications in connection therewith whether pending or in
preparation for filing, including registrations, recordings and applications in
the United States Patent and Trademark Office or in any office or agency of the
United States of America or any State thereof or any other country or political
subdivision thereof or otherwise, and all common-law rights relating to the
foregoing and (ii) the right to obtain all reissues, extensions or
renewals of the foregoing (collectively referred to as the “Trademark”);

 

(b)           all
Trademark licenses for the grant by or to the Grantor of any right to use any
Trademark, including each Trademark license referred to in Item B of Schedule
I hereto;

 

(c)           all
of the goodwill of the business connected with the use of, and symbolized by
the items described in, clause (a), and to the extent applicable clause (b);

 

(d)           the
right to sue third parties for past, present and future infringements of any
Trademark Collateral described in clause (a) and, to the extent
applicable, clause (b) and

 

(e)           all
proceeds of, and rights associated with, the foregoing.

 

Notwithstanding the foregoing, “Trademark
Collateral” shall not include (collectively, the “Trademark Excluded Property”)
(i) any permit or license or any contractual obligation entered into by
Parent, the Borrower or any Subsidiary Guarantor (A) that prohibits or
requires the consent of any Person other than the Borrower and its Affiliates
which has not been obtained as a condition to the creation by Parent, the
Borrower or the applicable Subsidiary Guarantor of a Lien on any right, title
or interest in such permit, license or contractual obligation or (B) to
the extent that any requirement of law applicable thereto prohibits the
creation of a Lien thereon, but only, with respect to the prohibition in
clauses (A) and (B), to the extent, and for as long as, such
prohibition is not terminated or rendered unenforceable or otherwise deemed
ineffective by the Uniform Commercial Code or any other requirement of law, (ii) property
owned by the Borrower or any Subsidiary Guarantor that is subject to a Lien
permitted by Section 7.2.3(d) of the Credit Agreement with
respect to Indebtedness permitted by Section 7.2.2(e)(ii) and (iii) of
the Credit Agreement if the contractual obligation pursuant to which such Lien
is granted (or in the document providing for such Lien) prohibits or requires
the consent of any Person other than the Borrower and its Affiliates which has
not been obtained as a condition to the creation of any other Lien on such item
of property or (iii) any “intent to use” trademark applications for which
a statement of use has not been filed (but only until such statement is filed);
provided, however, that “Trademark Excluded Property”
shall not include any proceeds, products, substitutions or replacements of
Trademark Excluded Property (unless such proceeds, products, substitutions or
replacements would otherwise constitute Trademark Excluded Property), which
assets subject to such Lien shall not constitute Trademark Collateral under any
circumstance.

 

2

 

SECTION 3. 
Security Agreement.  This
Agreement has been executed and delivered by the Grantor for the purpose of
registering the security interest of the Administrative Agent in the Trademark
Collateral with the United States Patent and Trademark Office and corresponding
offices in other countries of the world. 
The security interest granted hereby has been granted as a supplement
to, and not in limitation of, the security interest granted to the Administrative
for its benefit and the ratable benefit of each other Secured Party under the
Security Agreement.  The Security
Agreement (and all rights and remedies of the Administrative Agent and each
Secured Party thereunder) shall remain in full force and effect in accordance
with its terms.

 

SECTION 4. 
Release of Liens; Release of Grantor.  Upon (i) the Disposition of Trademark
Collateral not in contravention of the Credit Agreement or (ii) the
occurrence of the Termination Date, the security interests granted herein shall
automatically terminate with respect to (A) such Trademark Collateral (in
the case of clause (i)) or (B) all Trademark Collateral (in the
case of clause (ii)).  Upon any
such Disposition or termination, the Administrative Agent will, at the Grantor’s
sole expense, deliver to the Grantor, without any representations, warranties
or recourse of any kind whatsoever, (A) such Trademark Collateral (in the
case of clause (i)) or (B) all Trademark Collateral (in the case of
clause (ii)) held by the Administrative Agent hereunder, and execute and
deliver to the Grantor such documents as the Grantor shall reasonably request
to evidence such termination.  In
addition, at the request of the Borrower, and at the sole expense of the
Borrower, the Grantor shall be released from its obligations hereunder in the
event that (a) the Capital Securities of the Grantor are Disposed of in a
transaction permitted by the Credit Agreement or (b) the Grantor ceases to
be a Subsidiary of the Borrower as a result of a transaction permitted by the
Credit Agreement; provided that the Borrower shall have delivered to the
Administrative Agent, at least three Business Days prior to the date of such
proposed release, a written request for release naming the Grantor and a
certification by the Borrower stating that such transaction is in compliance
with the Loan Documents.

 

SECTION 5. 
Acknowledgment.  The
Grantor does hereby further acknowledge and affirm that the rights and remedies
of the Administrative Agent with respect to the security interest in the Trademark
Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein)
are incorporated by reference herein as if fully set forth herein.

 

SECTION 6. 
Loan Document.  This
Agreement is a Loan Document executed pursuant to the Credit Agreement and
shall (unless otherwise expressly indicated herein) be construed, administered
and applied in accordance with the terms and provisions thereof, including Article X thereof.

 

SECTION 7. 
Intercreditor Agreements.  Notwithstanding anything herein to the contrary, the
Liens and security interests granted to the Administrative Agent pursuant to
this Agreement, the exercise of any right or
remedy by the Administrative Agent hereunder and the obligations of the
Guarantor hereunder, in each case, with respect to the Collateral are subordinated
and subject to the limitations and provisions of the Intercreditor
Agreements.  In the event of any conflict
between the terms of the Intercreditor Agreements and the terms of this Agreement,
the terms of the Intercreditor Agreements shall govern and control.

 

3

 

SECTION 8. 
Counterparts.  This
Agreement may be executed by the parties hereto in several counterparts, each
of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement.

 

4

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be duly executed and delivered by Authorized Officer
as of the date first above written.

 

	
   

  	
  [NAME
  OF GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., 

  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

5

 

SCHEDULE I

to Trademark Security Agreement

 

Item
A.  Trademarks

 

Registered Trademarks

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending Trademark Applications

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Trademark Applications In Preparation

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Docket No.

  	
   

  	
  Expected 

  Filing Date

  	
   

  	
  Products/

  Services

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Trademark Licenses

 

	
  Country
  or 

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject 

  Matter

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

EXHIBIT C 

to Pledge and Security Agreement

 

COPYRIGHT SECURITY AGREEMENT

 

This COPYRIGHT SECURITY AGREEMENT, dated as of
            
    , 200    (this “Agreement”), is
made by [NAME OF GRANTOR] a [STATE OF INCORPORATION] corporation (the “Grantor”),
in favor of JPMORGAN CHASE BANK, N.A. (“JPMorgan”), as administrative
agent (together with its successor(s) in such capacity, the “Administrative
Agent”) for each of the Secured Parties.

 

W I T N E S S E T H :

 

WHEREAS, pursuant to the Credit Agreement, dated as
of March 15, 2010 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the “Credit Agreement”), among
Reddy Ice Corporation, a Nevada corporation (the “Borrower”), the
Lenders and the Administrative Agent, the Lenders have extended Commitments to
make Credit Extensions to the Borrower;

 

WHEREAS, in connection with the Credit Agreement,
the Grantor has executed a delivered a Pledge arid Security Agreement, dated as
of March 15, 2010  (as amended,
supplemented, amended and restated or otherwise modified from time to time, “Security
Agreement”);

 

WHEREAS, pursuant to the Credit Agreement and
pursuant to and to clause (e) of Section 4.5 of the Security
Agreement, the Grantor is required to execute and deliver this Agreement and to
grant to the Administrative Agent a continuing security interest in all of the
Copyright Collateral (as defined below) to secure all Obligations; and

 

WHEREAS, the Grantor has duly authorized the
execution, delivery and performance of this Agreement;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Grantor
agrees, for the benefit of each Secured Party, as follows:

 

SECTION 1. 
Definitions.  Unless
otherwise defined herein or the context otherwise requires, terms used in this
Agreement, including its preamble and recitals, have the meanings provided in
the Security Agreement.

 

SECTION 2. 
Grant of Security Interest. 
The Grantor hereby grants to the Administrative Agent, for its benefit
and the ratable benefit of each other Secured Party, a continuing security
interest in all of the following (the “Copyright Collateral”), whether
now or hereafter existing or acquired by the Grantor:  all copyrights of the Grantor, whether
statutory or common law, registered or unregistered and whether published or unpublished,
now or hereafter in force throughout the world including all of the Grantor’s
right, title and interest in and to all copyrights registered in the United
States Copyright Office or anywhere else in the world and also including 

 

1

 

the copyrights referred to
in Item A of Schedule I hereto, and registrations and recordings
thereof and all applications for registration thereof, whether pending or in
preparation, and all copyright licenses, including each copyright license
referred to in Item B of Schedule I hereto and all proceeds of
the foregoing.

 

Notwithstanding the foregoing, “Copyright Collateral”
shall not include (collectively, the “Copyright Excluded Property”) (i) any
permit or license or any contractual obligation entered into by Parent, the
Borrower or any Subsidiary Guarantor (A) that prohibits or requires the
consent of any Person other than the Borrower and its Affiliates which has not
been obtained as a condition to the creation by Parent, the Borrower or the
applicable Subsidiary Guarantor of a Lien on any right, title or interest in
such permit, license or contractual obligation or (B) to the extent that
any requirement of law applicable thereto prohibits the creation of a Lien
thereon, but only, with respect to the prohibition in clauses (A) and
(B), to the extent, and for as long as, such prohibition is not terminated or
rendered unenforceable or otherwise deemed ineffective by the Uniform
Commercial Code or any other requirement of law or (ii) property owned by
the Borrower or any Subsidiary Guarantor that is subject to a Lien permitted by
Section 7.2.3(d) of the Credit Agreement with respect to
Indebtedness permitted by Section 7.2.2(e)(ii) and (iii) of
the Credit Agreement if the contractual obligation pursuant to which such Lien
is granted (or in the document providing for such Lien) prohibits or requires
the consent of any Person other than the Borrower and its Affiliates which has
not been obtained as a condition to the creation of any other Lien on such item
of property,; provided, however, that “Copyright Excluded Property”
shall not include any proceeds, products, substitutions or replacements of
Copyright Excluded Property (unless such proceeds, products, substitutions or
replacements would otherwise constitute Copyright Excluded Property), which
assets subject to such Lien shall not constitute Copyright Collateral under any
circumstance.

 

SECTION 3. 
Security Agreement.  This
Agreement has been executed and delivered by the Grantor for the purpose of
registering the security interest of the Administrative Agent in the Copyright
Collateral with the United States Copyright Office and corresponding offices in
other countries of the world.  The
security interest granted hereby has been granted as a supplement to, and not
in limitation of, the security interest granted to the Administrative Agent for
its benefit and the ratable benefit of each other Secured Party under the
Security Agreement.  The Security
Agreement (and all rights and remedies of the Administrative Agent and each Secured
Party thereunder) shall remain in full force and effect in accordance with its
terms.

 

SECTION 4. 
Release of Liens; Release of Grantor.  Upon (i) the Disposition of Copyright
Collateral not in contravention of the Credit Agreement or (ii) the
occurrence of the Termination Date, the security interests granted herein shall
automatically terminate with respect to (A) such Copyright Collateral (in
the case of clause (i)) or (B) all Copyright Collateral (in the
case of clause (ii)).  Upon any
such Disposition or termination, the Administrative Agent will, at the Grantor’s
sole expense, deliver to the Grantor, without any representations, warranties
or recourse of any kind whatsoever, (A) such Copyright Collateral (in the
case of clause (i)) or (B) all Copyright Collateral (in the case of
clause (ii)) held by the Administrative Agent hereunder, and execute and
deliver to the Grantor such documents as the Grantor shall reasonably request
to evidence such termination.  In
addition, at the request of the Borrower, and at the sole expense of the
Borrower, the Grantor shall be released from its obligations hereunder in the
event that (a) 

 

2

 

the Capital Securities of
the Grantor are Disposed of in a transaction permitted by the Credit Agreement
or (b) the Grantor ceases to be a Subsidiary of the Borrower as a result
of a transaction permitted by the Credit Agreement; provided that the
Borrower shall have delivered to the Administrative Agent, at least three
Business Days prior to the date of such proposed release, a written request for
release naming the Grantor and a certification by the Borrower stating that
such transaction is in compliance with the Loan Documents.

 

SECTION 5. 
Acknowledgment.  The
Grantor does hereby further acknowledge and affirm that the rights and remedies
of the Administrative Agent with respect to the security interest in the
Copyright Collateral granted hereby are more fully set forth in the Security
Agreement, the terms and provisions of which (including the remedies provided
for therein) are incorporated by reference herein as if fully set forth herein.

 

SECTION 6. 
Loan Document.  This
Agreement is a Loan Document executed pursuant to the Credit Agreement and
shall (unless otherwise expressly indicated herein) be construed. administered
and applied in accordance with the terms and provisions thereof, including Article X
thereof.

 

SECTION 7. 
Intercreditor Agreements.  Notwithstanding anything herein to the contrary, the
Liens and security interests granted to the Administrative Agent pursuant to
this Agreement, the exercise of any right or
remedy by the Administrative Agent hereunder and the obligations of the
Guarantor hereunder, in each case, with respect to the Collateral are subordinated
and subject to the limitations and provisions of the Intercreditor
Agreements.  In the event of any conflict
between the terms of the Intercreditor Agreements and the terms of this Agreement,
the terms of the Intercreditor Agreements shall govern and control.

 

SECTION 8. 
Counterparts.  This
Agreement may be executed by the parties hereto in several counterparts, each
of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement.

 

3

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be duly executed and delivered by its Authorized
Officer as of the date first above written.

 

	
   

  	
  [NAME
  OF GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4

 

SCHEDULE I

to Copyright Security Agreement

 

Item
A.  Copyrights/Mask Works

 

Registered Copyrights/Mask Works

 

	
  Country

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Copyright/Mask Work Pending Registration Applications

 

	
  Country

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Copyright/Mask Work Registration Applications In Preparation

 

	
  Country

  	
   

  	
  Docket No.

  	
   

  	
  Expected 

  Filing Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Copyright/Mask Work Licenses

 

	
  Country
  or 

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

ANNEX I

to the Pledge and Security Agreement

 

SUPPLEMENT TO 

PLEDGE AND SECURITY AGREEMENT

 

This SUPPLEMENT, dated as of
                        
    ,         (this
“Supplement”), is to the Pledge and Security Agreement, dated as of March 15,
2010 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the “Pledge and Security Agreement”), among the Grantors
(such capitalized term, and other terms used in this Supplement, to have the
meanings set forth in Article I of the Pledge and Security Agreement) from
time to time party thereto, in favor of JPMORGAN CHASE BANK, N.A. (“JPMorgan”),
as administrative agent (together with its successor(s) thereto in such
capacity, the “Administrative Agent”) for each of the Secured Parties.

 

W I T N E S S E T H :

 

WHEREAS, pursuant to the Credit Agreement, dated as
of March 15, 2010 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the “Credit Agreement”), among
Reddy Ice Corporation, a Nevada corporation (the “Borrower”), the
Lenders and the Administrative Agent, the Lenders have extended Commitments to
make Credit Extensions to the Borrower;

 

WHEREAS, pursuant to the provisions of Section 7.6
of the Pledge and Security Agreement, each of the undersigned is becoming a
Grantor under the Pledge and Security Agreement; and

 

WHEREAS, each of the undersigned
desires to become a “Grantor” under the Pledge and Security Agreement in order
to induce the Secured Parties to continue to extend Credit Extensions under the
Credit Agreement;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, each of the
undersigned agrees, for the benefit of each Secured Party, as follows.

 

SECTION 1. 
Party to Pledge and Security Agreement, etc.  In accordance with the terms of the Pledge
and Security Agreement, by its signature below each of the undersigned hereby
irrevocably agrees to become a Grantor under the Pledge and Security Agreement
with the same force and effect as if it were an original signatory thereto and
each of the undersigned hereby (a) agrees to be bound by and comply with
all of the terms and provisions of the Pledge and Security Agreement applicable
to it as a Grantor, (b)  grants to the Administrative Agent for the
benefit of the Secured Parties a security interest in the Collateral as
security for the Obligation, and (c) represents and warrants that the
representations and warranties made by it as a Grantor thereunder are true and
correct as of the date hereof, unless stated to relate solely to an earlier
date, in which case such representations and warranties shall be true and
correct as of 

 

1

 

such earlier date.  In furtherance of the foregoing, each
reference to a “Grantor” and/or “Grantors” in the Pledge and Security Agreement
shall be deemed to include each of the undersigned.

 

SECTION 2. 
Representations.  Each of
the undersigned Grantor hereby represents and warrants that (a) this
Supplement has been duly authorized, executed and delivered by it and that this
Supplement and the Pledge and Security Agreement constitute the legal, valid
and binding obligation of each of the undersigned, enforceable against it in
accordance with terms, and (b) attached hereto are all Schedules to the
Pledge and Security Agreement providing information with respect to the undersigned.

 

SECTION 3. 
Full Force of Pledge and Security Agreement.  Except as expressly supplemented hereby, the
Pledge and Security Agreement shall remain in full force and effect in accordance
with its terms.

 

SECTION 4. 
Severability.  Wherever
possible each provision of this Supplement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Supplement shall be prohibited by or invalid under such law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or, the remaining provisions of
this Supplement or the Pledge and Security Agreement.

 

SECTION 5. 
Governing Law, Entire Agreement, etc.  THIS
SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND
5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).  This
Supplement and the other Loan Documents constitute the entire understanding
among the parties hereto with respect to the subject matter thereof and
supersede any prior agreements, written or oral, with respect thereto.

 

SECTION 6. 
Counterparts.  This
Supplement may be executed by the parties hereto in several counterparts, each
of which shall be deemed to be an original and all of which shall constitute together
but one and the same agreement.

 

2

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be duly executed and delivered by its Authorized
Officer as of the date first above written.

 

	
   

  	
   

  	
  [NAME
  OF ADDITIONAL SUBSIDIARY]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [NAME
  OF ADDITIONAL SUBSIDIARY]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED FOR ITSELF

  AND ON BEHALF OF THE SECURED PARTIES:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  JPMORGAN CHASE BANK, N.A.,

  as Administrative Agent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
						

 

3

 

SCHEDULE I

to Supplement No.     

to Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Capital
Securities

 

	
   

  	
   

  	
  Common Stock

  	
   

  
	
  Issuer
  (corporate)

  	
   

  	
  Authorized

  Shares

  	
   

  	
  Outstanding

  Shares

  	
   

  	
  % of Shares

  Pledged

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Limited Liability Company Interests

  	
   

  
	
  Issuer
  (limited liability company)

  	
   

  	
  % of Limited Liability

  Company Interests Pledged

  	
   

  	
  Type of Limited Liability

  Company Interests Pledged

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Partnership Interests

  	
   

  
	
  Issuer
  (partnership)

  	
   

  	
  % of Partnership

  Interests Owned

  	
   

  	
  % of Partnership

  Interests Pledged

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

SCHEDULE II

to Supplement No.     

to Pledge and Security Agreement

 

Item
A.  Locations of each Grantor:

 

	
  Name
  of Grantor:

  	
   

  	
  Location for purposes of UCC:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
  [LOCATION]

  

 

Item
B.  Merger or other corporate reorganization.

 

	
  Name
  of Grantor:

  	
   

  	
  Merger or other corporate reorganization:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
   

  

 

Item
C.  Taxpayer ID numbers.

 

	
  Name
  of Grantor:

  	
   

  	
  Taxpayer ID numbers:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
   

  

 

Item
D.  Government Contracts:

 

	
  Name
  of Grantor:

  	
   

  	
  Description of Contract:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
   

  

 

1

 

Item
E.  Deposit Accounts:

 

	
  Name
  of Grantor:

  	
   

  	
  Description of Deposit Account:

  
	
   

  	
   

  	
   

  
	
  [GRANTOR]

  	
   

  	
   

  

 

2

 

SCHEDULE III

to Supplement No.     

to Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Item
A.  Patents

 

Issued Patents

 

	
  Country

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending Patent Applications

 

	
  Country

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Patent Applications In Preparation

 

	
  Country

  	
   

  	
  Docket No.

  	
   

  	
  Expected

  Filing Date

  	
   

  	
  Inventor(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Patent Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject

  Matter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

SCHEDULE IV

to Supplement No.     

to Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Item
A.  Trademarks

 

Registered Trademarks

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending Trademark Applications

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Trademark Applications In Preparation

 

	
  Country

  	
   

  	
  Trademark

  	
   

  	
  Docket No.

  	
   

  	
  Expected 

  Filing Date

  	
   

  	
  Products/

  Services

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item B.  Trademark Licenses

 

	
  Country
  or 

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject 

  Matter

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

SCHEDULE V

to Supplement No.     

to Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Item
A.  Copyrights/Mask Works

 

Registered Copyrights/Mask Works

 

	
  Country

  	
   

  	
  Registration No.

  	
   

  	
  Registration Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Copyright/Mask Work Pending Registration Applications

 

	
  Country

  	
   

  	
  Serial No.

  	
   

  	
  Filing Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Copyright/Mask Work Registration Applications In Preparation

 

	
  Country

  	
   

  	
  Docket No.

  	
   

  	
  Expected

  Filing Date

  	
   

  	
  Author(s)

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Item
B.  Copyright/Mask Work Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  

  Licensor

  	
   

  	
  

  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject

  Matter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

SCHEDULE VI

to Supplement No.     

to Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Trade Secret or Know-How Licenses

 

	
  Country
  or

  Territory

  	
   

  	
  Licensor

  	
   

  	
  Licensee

  	
   

  	
  Effective

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Subject

  Matter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE VII

to Supplement No.     

to Pledge and Security Agreement

([Name of Additional Subsidiary])

 

Commercial Tort Claims

 

	
  Title

  	
   

  	
  Description

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]