Document:

Exhibit 10.26

 

AMENDED AND RESTATED

PARENT GUARANTY AND PLEDGE AGREEMENT

 

This AMENDED
AND RESTATED PARENT GUARANTY AND PLEDGE AGREEMENT (as amended, supplemented,
amended and restated or otherwise modified from time to time, this “Agreement”),
dated as of August 12, 2005 (amending and restating the Parent Guaranty and
Pledge Agreement, dated as of August 15, 2003 (the “Existing Agreement”)),
is made by REDDY ICE HOLDINGS, INC., a Delaware corporation (the “Guarantor”),
in favor of CREDIT SUISSE, acting through its Cayman Islands Branch (“Credit
Suisse”), as administrative agent (together with its successors thereto in
such capacity, the “Administrative Agent”) for each of the Secured
Parties (terms used herein have the meanings set forth, or incorporated by
reference, in Article I).

 

W  I  T  N
E  S  S  E  T  H :

 

WHEREAS,
pursuant to the Amended and Restated Credit Agreement (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”), dated as of August 9, 2005, among Reddy Ice Group,
Inc., a Delaware corporation (the “Borrower”), the Lenders, the
Administrative Agent, CIBC World Markets Corp., as the Syndication Agent for
the Lenders, CIBC World Markets Corp., Credit Suisse, Bear, Stearns & Co.
Inc. and Lehman Brothers Inc., as the Co-Lead Arrangers and Co-Bookrunners, and
Bear Stearns Corporate Lending Inc. and Lehman Commercial Paper Inc., as the
Co-Documentation Agents for the Lenders, the Lenders and the Issuers extended
Commitments to make Credit Extensions to the Borrower; and

 

WHEREAS, the
Guarantor has requested that the Existing Agreement be amended and restated in
its entirety to read as hereinafter set forth;

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Guarantor 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 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.

 

“Agreement”
is defined in the preamble.

 

“Borrower”
is defined in the first recital.

 

“Collateral”
is defined in Section 2.1.

 

“Credit
Agreement” is defined in the first recital.

 

 

“Credit
Suisse” is defined in the preamble.

 

“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.

 

“Existing
Agreement” is defined in the preamble.

 

“Guarantor”
is defined in the preamble.

 

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

 

 “Parent Debt” means the Indebtedness
evidenced by the Parent Notes.

 

“Parent
Debt Documents” means, collectively, the Parent Note Indenture, the
Registration Rights Agreement (as defined in the Parent Note Indenture) and
each of the loan agreements, indentures, note purchase agreements, promissory
notes, guarantees, and other instruments (including the Parent Notes)
evidencing the terms of the Parent Debt or any Parent Refinanced Debt, as
amended, supplemented, amended and restated or otherwise modified in accordance
with Section 5.9.

 

“Parent
Debt Prepayment” means (a) the making of any payment or prepayment of
principal of, or premium or interest on, the Parent Debt or any Parent Refinanced
Debt (i) other than the scheduled date for payment of interest set forth in the
applicable Parent Debt Documents, or (ii) which would violate the terms of the
applicable Parent Debt Documents, (b) the redemption, retirement, purchase,
defeasance or other acquisition of the Parent Debt or any Parent Refinanced
Debt or (c) the making any deposit (including the payment of amounts into a
sinking fund or other similar fund) for any of the foregoing purposes.

 

“Parent
Notes” means the Guarantor’s 10.5% senior discount notes issued on October
27, 2004 and due 2012, as in effect on the Amendment Effective Date and,
thereafter, as amended, supplemented, amended and restated or otherwise
modified in accordance with Section 5.9, and any registered exchange
notes issued in exchange therefor.

 

“Parent
Note Indenture” means the Indenture, dated as of October 27, 2004, among
the Guarantor and U.S. Bank National Association, as trustee, as in effect on
the Amendment Effective Date and, thereafter, as amended, supplemented, amended
and restated or otherwise modified in accordance with Section 5.9.

 

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“Parent
Refinanced Debt” any unsecured Indebtedness of the Parent (other than the
Parent Debt) issued pursuant to documentation containing redemption and other
prepayment events, maturities, amortization schedules, covenants, events of
default, remedies, acceleration rights, subordination provisions and other
material terms either (i) substantially similar to the Parent Notes (other than
interest rates, redemption premiums and call periods), (ii) more favorable to
the Lenders than those of the Parent Notes or (iii) otherwise satisfactory to
the Required Lenders.

 

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

 

SECTION 1.2.        Credit
Agreement 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 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 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.  The Guarantor
hereby grants to the Administrative Agent for its benefit and for the ratable
benefit of each other Secured Party, a continuing security interest in all of the
following property, whether tangible or intangible, whether now or hereafter
existing, owned or acquired by the Guarantor and wherever located (the “Collateral”):

 

(a)           all Capital Securities
in which the Guarantor has an interest that constitute Capital Securities of a
Subsidiary of the Guarantor, including the Capital Securities of each
Subsidiary of the Guarantor described in Schedule I, in each case
together with Dividends and Distributions payable in respect of the Collateral
described in the foregoing clause (a); and

 

(b)           all proceeds of and
from any and all of the foregoing Collateral (including proceeds which
constitute property of the types described in clause (a) above).

 

The Guarantor
hereby confirms that this grant is a continuation of the grant made in the
Existing Agreement.

 

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

 

SECTION 2.3.        Dividends
on Pledged Shares.  In the event that
any Dividend with respect to any Capital Securities pledged hereunder is
permitted to be paid (in accordance with Section 7.2.6 of the Credit
Agreement), such Dividend or payment may be paid directly to the
Guarantor.  If any Dividend or payment is
paid in contravention of Section 7.2.6 of the Credit

 

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Agreement, the Guarantor shall hold the same
segregated and in trust for the Administrative Agent until paid to the
Administrative Agent in accordance with Section 5.4 hereto.

 

ARTICLE III

GUARANTY PROVISIONS

 

SECTION 3.1.        Guaranty.  The Guarantor hereby absolutely,
unconditionally and irrevocably guarantees the full and punctual payment when
due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise, of all Obligations now or hereafter
existing, whether for principal, interest (including interest accruing at the
then applicable rate provided in the Credit Agreement after the occurrence of
any Default set forth in Section 8.1.9 of the Credit Agreement, whether or not
a claim for post-filing or post-petition interest is allowed under applicable
law following the institution of a proceeding under bankruptcy, insolvency or
similar laws), fees, Reimbursement Obligations, expenses or otherwise
(including all such amounts which would become due but for the operation of the
automatic stay under Section 362(a) of the United States Bankruptcy Code, 11
U.S.C. §362(a), and the operation of Sections 502(b) and 506(b) of the United
States Bankruptcy Code, 11 U.S.C. §502(b) and §506(b)).  This Agreement constitutes a guaranty of
payment when due and not of collection, and the Guarantor specifically agrees
that it shall not be necessary or required that any Secured Party exercise any
right, assert any claim or demand or enforce any remedy whatsoever against any
Obligor or any other Person before or as a condition to the obligations of such
Guarantor hereunder.

 

SECTION 3.2.        Reinstatement,
etc.  The Guarantor hereby agrees
that this Agreement shall continue to be effective or be reinstated, as the
case may be, if at any time any payment (in whole or in part) of any of the
Obligations is invalidated, declared to be fraudulent or preferential, set
aside, rescinded or must otherwise be restored by any Secured Party, including
upon the occurrence of any Default set forth in Section 8.1.9 of the Credit
Agreement or otherwise, all as though such payment had not been made.

 

SECTION 3.3.        Guaranty
and Security Interest Absolute, etc. 
This Agreement shall in all respects be a continuing, absolute,
unconditional and irrevocable agreement of payment, and shall remain in full
force and effect until the Termination Date has occurred.  The Guarantor guarantees that the Obligations
will be paid in accordance with the terms of each Loan Document under which
they arise, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of any
Secured Party with respect thereto.  The
liability of the Guarantor under this Agreement shall 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 the Guarantor) of, or
collateral securing, any Obligations;

 

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(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 the Guarantor 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 Guarantor) 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 3.4.        Setoff.  The Guarantor hereby irrevocably authorizes
each Secured Party, without the requirement that any prior notice be given to
the Guarantor (prior notice being expressly waived by the Guarantor), upon the
occurrence and during the continuance of any Event of Default described in
clauses (a) through (d) of Section 8.1.9 of the Credit Agreement or, with the
consent of the Required Lenders, upon the occurrence and during the continuance
of any other Event of Default, to setoff and appropriate and apply to the
payment of the Obligations (whether or not then due, and whether or not any
Secured Party has made any demand for payment of the Obligations), any and all
balances, claims, credits, deposits (general or special, time or demand,
provisional or final), accounts or money of the Guarantor then or thereafter
maintained with such Secured Party, excluding deposits held by the Guarantor as
a fiduciary for others, and (as security for such Obligations) the Guarantor
hereby grants to each Secured Party a continuing security interest in, any and
all balances, credits, deposits, accounts or moneys of the Guarantor then or
thereafter maintained with such Secured Party; provided that any such
appropriation and application shall be subject to the provisions of Section 4.8
of the Credit Agreement.  Each Secured
Party agrees promptly to notify the Guarantor and the Administrative Agent
after any such setoff and application made by such Secured Party; provided
further, however, that the failure to give such notice shall not affect the
validity of such setoff and application. 
The rights of each Secured Party under this Section are in addition to
other rights and remedies (including other rights of setoff under applicable law
or otherwise) which such Secured Party may have.

 

5

 

SECTION 3.5.        Waiver,
etc.  The Guarantor hereby waives
promptness, diligence, notice of acceptance and any other notice with respect
to any of the Obligations and this Agreement and any requirement that any
Secured Party protect, secure, perfect or insure any Lien, or any property
subject thereto, or exhaust any right or take any action against any Obligor or
any other Person (including any other guarantor) or entity or any collateral
securing the Obligations, as the case may be.

 

SECTION 3.6.        Postponement
of Subrogation, etc.  The Guarantor
agrees that it will not exercise any rights which it may acquire by way of
rights of subrogation under any Loan Document to which it is a party, nor shall
the Guarantor 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 the Guarantor 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 the Guarantor (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 4.7 of
the Credit Agreement; provided that if the Guarantor has made payment to
the Secured Parties of all or any part of the Obligations and the Termination
Date has occurred, then at the Guarantor’s request, the Administrative Agent
(on behalf of the Secured Parties) will, at the Guarantor’s expense, execute
and deliver to the Guarantor appropriate documents (without recourse and
without representation or warranty) necessary to evidence the transfer by
subrogation to the Guarantor of an interest in the Obligations resulting from such
payment.  In furtherance of the
foregoing, at all times prior to the Termination Date, the Guarantor 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 Agreement to any Secured Party.

 

ARTICLE IV          

REPRESENTATIONS AND WARRANTIES

 

In order to
induce the Secured Parties to enter into the Credit Agreement and make Credit
Extensions thereunder, and to induce Secured Parties to enter into Rate
Protection Agreements, the Guarantor represents and warrants to each Secured
Party as set forth below.

 

SECTION 4.1.        As
to Capital Securities of the Borrower. 
All Capital Securities issued by the Borrower are duly authorized and
validly issued, fully paid and non-assessable, and represented by a
certificate.  The percentage of the
issued and outstanding Capital Securities of the Borrower pledged by the
Guarantor hereunder is as set forth on Schedule I hereto.

 

SECTION 4.2.        Location
of Guarantor, etc.  The jurisdiction
in which the Guarantor is located for purposes of Sections 9-301 and 9-307 of
the UCC is set forth in Item A of Schedule II hereto. Set forth
in Item B of Schedule II is each location a secured party would
have filed a UCC financing statement in the last five years prior to the date
hereof to perfect a security interest in equipment, inventory and general
intangibles owned by the Guarantor.  The
Guarantor does not have any trade names other than those set forth in Item C
of Schedule II hereto.  During the
five years preceding the date hereof, the Guarantor has not been known by any
legal name

 

6

 

different from the one set forth on the
signature page hereto, nor has the Guarantor been the subject of any merger or
other corporate reorganization, except as set forth in Item D of Schedule
II hereto.  The name set forth on the
signature page is the true and correct name of the Guarantor.  The Guarantor’s federal taxpayer
identification number is (and, during the four months preceding the date
hereof, the Guarantor has not had a federal taxpayer identification number
different from that) set forth in Item E of Schedule II hereto.

 

SECTION 4.3.        Ownership,
No Liens, etc.  The Guarantor owns
the Collateral free and clear of any Lien, except for Liens created by this
Agreement and Inchoate Liens.  No
effective financing statement or other filing similar in effect covering any
Collateral is on file in any recording office, except those filed in favor of
the Administrative Agent relating to this Agreement.

 

SECTION 4.4.        Validity,
etc.  This Agreement creates a valid
security interest in the Collateral securing the payment of the Obligations.  The Guarantor has taken all of the actions
necessary to create perfected and first-priority (subject to Inchoate Liens)
security interests in the Collateral including in the case of Collateral
comprised of certificated securities, delivery of such Collateral to the
Administrative Agent, together with stock powers (undated), duly executed in
blank.

 

SECTION 4.5.        Authorization,
Approval, etc.  Except as have been,
or on the Amendment Effective Date will be, obtained or made and are, or on the
Amendment Effective Date will be, in full force and effect, and except (i) with
respect to any securities issued by the Borrower, 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
Guarantor of the security interest granted hereby, the pledge by the Guarantor
of any Collateral pursuant hereto or for the execution, delivery and
performance of this Agreement by the Guarantor;

 

(b)           for the perfection of
the Administrative Agent of its rights hereunder; or

 

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

 

SECTION 4.6.        Compliance
with Laws.  The Guarantor is in
material compliance with the requirements of all applicable laws, rules and
regulations, the non-compliance with any of which could reasonably be expected
to materially adversely affect the value of the Collateral.

 

SECTION 4.7.        Credit
Agreement Representations and Warranties. 
The representations and warranties contained in Article VI of the Credit
Agreement, insofar as the representations and warranties contained therein are
applicable to the Guarantor and its properties, are true and correct in all
material respects, each such representation and warranty set forth in such
Article (insofar as applicable as aforesaid) and all other terms of the Credit
Agreement to which reference is made therein, together with all related
definitions and ancillary provisions, being

 

7

 

hereby incorporated into this Agreement by
reference as though specifically set forth in this Article.

 

SECTION 4.8.        Subsidiaries.  The Guarantor has no direct Subsidiaries
other than the Borrower.

 

SECTION 4.9.        Issuance
of Parent Notes and Parent Refinanced Debt.

 

(a)           The Guarantor had the
power and authority to incur the Parent Debt as provided for under the Parent
Debt Documents applicable thereto and had duly authorized, executed and
delivered the Parent Debt Documents applicable to such Parent Debt.  The Parent Debt Documents constitute,
assuming the due authorization, execution and delivery by the other parties
thereto, the legal, valid and binding obligations of the Guarantor enforceable
against the Guarantor in accordance with their terms (except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally and by
principles of equity).

 

(b)           Upon the issuance of
any Parent Refinanced Debt, the Guarantor will have the power and authority to
incur such Parent Refinanced Debt as provided for under the Parent Debt
Documents applicable thereto and will have duly authorized, executed and
delivered the Parent Debt Documents applicable to such Parent Refinanced Debt.  Upon the issuance of any Parent Refinanced
Debt, the Parent Debt Documents applicable thereto will constitute, assuming
the due authorization, execution and delivery by the other parties thereto, the
legal, valid and binding obligations of the Guarantor enforceable against the
Guarantor in accordance with their terms (except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization or similar laws
affecting creditors’ rights generally and by principles of equity).

 

ARTICLE V

COVENANTS

 

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

 

SECTION 5.1.        Capital
Securities of the Borrower.  The
Guarantor will not allow the Borrower to issue uncertificated securities.

 

SECTION 5.2.        Stock
Powers, etc.  The Guarantor agrees
that all certificated securities delivered by the Guarantor pursuant to this
Agreement will be accompanied by duly executed undated blank stock powers, or
other equivalent instruments of transfer reasonably acceptable to the
Administrative Agent.

 

SECTION 5.3.        Continuous
Pledge.  The Guarantor will deliver
to the Administrative Agent and at all times keep pledged to the Administrative
Agent pursuant hereto, on a first-priority (subject to Inchoate Liens),
perfected basis all Capital Securities issued by the Borrower, and, following
an Event of Default, all proceeds and rights from time to time received by or
distributable to the Guarantor in respect of any Capital Securities issued by
the Borrower.

 

8

 

SECTION 5.4.        Voting
Rights; Dividends, etc.  The
Guarantor 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
Collateral, and all proceeds of the Collateral, in each case thereafter
received by the Guarantor, all of which shall be held by the Administrative
Agent as additional Collateral; and

 

(b)           immediately upon the
occurrence and during the continuation of an Event of Default and so long as
the Administrative Agent has notified the Guarantor of the Administrative Agent’s
intention to exercise its voting power under this clause,

 

(i)            the Administrative
Agent may exercise (to the exclusion of the Guarantor) the voting power and all
other incidental rights of ownership with respect to any Collateral and the
Guarantor hereby grants the Administrative Agent an irrevocable proxy,
exercisable under such circumstances, to vote such Collateral; 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 and proceeds which may at any time and from time to time be held
by the Guarantor but which the Guarantor is then obligated to deliver to the
Administrative Agent, shall, until delivery to the Administrative Agent, be
held by the Guarantor separate and apart from its other property in trust for
the 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 (b), the Guarantor will have the exclusive voting
power with respect to any investment property constituting Collateral and the
Administrative Agent will, upon the written request of the Guarantor, promptly
deliver such proxies and other documents, if any, as shall be reasonably
requested by the Guarantor which are necessary to allow the Guarantor to
exercise that voting power; provided that no vote shall be cast, or
consent, waiver, or ratification given, or action taken by the Guarantor that
would impair any such Collateral in any material respect or be inconsistent
with or violate any provision of any Loan Document.

 

SECTION 5.5.        Further
Assurances, etc.  The Guarantor
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 reasonably 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, the Guarantor will

 

9

 

(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;

 

(b)           file (or cause to be
filed) such Filing Statements or continuation statements, or amendments
thereto, and such other instruments or notices as the Administrative Agent may
reasonably request in order to perfect and preserve the security interests and
other rights granted or purported to be granted to the Administrative Agent
hereby; and

 

(c)           deliver to the
Administrative Agent and at all times keep pledged to the Administrative Agent
pursuant hereto, on a first-priority (subject to Inchoate Liens), perfected
basis, at the reasonable request of the Administrative Agent, all Capital
Securities of the Borrower constituting Collateral, and, following an Event of
Default, all Dividends and Distributions with respect thereto and all proceeds
and rights from time to time received by or distributable to the Guarantor in
respect of any of the foregoing Collateral.

 

With respect
to the foregoing and the grant of the security interest hereunder, the
Guarantor 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.  The
Guarantor agrees that a carbon, photographic or other reproduction of this
Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law.

 

SECTION 5.6.        Change
of Name, etc.  The Guarantor will not
change its name or place of incorporation or organization or federal taxpayer
identification number except upon 30 days’ prior written notice to the
Administrative Agent (or such shorter period as agreed to by the Administrative
Agent).  The Guarantor will not be
organized outside of the United States.

 

SECTION 5.7.        No
Defaults.  The Guarantor will not,
and will not permit the Borrower or any of its Subsidiaries to, take any action
or fail to take any action if such action or failure to act would result in a
Default under the Credit Agreement.

 

SECTION 5.8.        Compliance
with Laws, etc.  The Guarantor will
comply in all material respects with all applicable laws, rules, regulations
and orders, such compliance to include (without limitation):

 

(a)           the maintenance and
preservation of its corporate existence and qualification as a foreign
corporation, except where the failure to so qualify could not reasonably be
expected to have a Material Adverse Effect; provided that this clause
(a) will not prohibit any transaction otherwise permitted under Section
5.9; and

 

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(b)           the payment, before the
same become delinquent, of all material taxes, assessments and governmental
charges imposed upon it or upon its property except to the extent being
contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with GAAP shall have been set aside on its books.

 

SECTION 5.9.        Activities
of the Guarantor.  (a)  The Guarantor will not engage in any business
activity other than

 

(i)            its continuing
ownership of all of the Capital Securities of the Borrower, all other
activities reasonably related thereto, including electing directors of the
Borrower and monitoring its Investment in the Borrower, and its compliance with
the obligations applicable to it under each Loan Document,

 

(ii)           its payments of any
dividends or other distributions in respect of, or its repurchase or redemption
of, any of its Capital Securities,

 

(iii)          its issuance of Capital
Securities or Indebtedness,

 

(iv)          its payment of principal
and interest on any Indebtedness,

 

(v)           activities related to
being a public company, and

 

(vi)          its payment of overhead
expenses and taxes.

 

(b)           Notwithstanding
the foregoing, the Guarantor will not

 

(i)            create, assume, or
suffer to exist any Lien upon, or grant any options or other rights with
respect to, any of its revenues, property or other assets, whether now owned or
hereafter acquired other than (A) pursuant to the Loan Documents, (B) Inchoate
Liens or (C) Liens on assets not constituting Collateral in favor of a trustee
under an indenture under which the Guarantor has issued any Parent Notes or
Parent Refinancing Debt for the benefit of the trustee and not for the benefit
of the holders of such Parent Notes or Parent Refinancing Debt for fees,
expenses and indemnities of the trustee,

 

(ii)           consolidate or
amalgamate with or merge into or with any other Person,

 

(iii)          create, incur, assume or
suffer to exist any Investment in any other Person, other than an Investment in
the Borrower,

 

(iv)          incur any Indebtedness
or otherwise become or be liable in respect of any Indebtedness other than in
respect of (A) the Obligations, (B) the guarantees of the Subordinated Notes
(or any refinancing thereof), (C) unsecured Indebtedness of the Guarantor
evidenced by the Parent Notes or any Parent Refinancing Debt, in each case
incurred pursuant to the terms of the applicable Parent Debt Documents, (D)
guarantees of the Borrower’s obligations in respect of rental or lease
transactions entered into by the Borrower and not prohibited by Section 7.2.14
of the Credit Agreement, and (E) unsecured Indebtedness in an aggregate amount
at any time outstanding not to exceed $10,000,000;

 

11

 

(v)           consent to any
amendment, supplement, waiver or other modification of, or enter into any
forbearance from exercising any rights with respect to the terms or provisions
contained in, its Organic Documents if the result thereof would have a material
adverse effect on the Lenders in the good faith judgment of the Guarantor (it
being agreed that any modification of any such Organic Document would not have
an adverse effect on the Lenders if such modification is made to effectuate a
transaction otherwise permitted by the terms of any Loan Document);

 

(vi)          and will not permit any
of its Subsidiaries to make a Parent Debt Prepayment other than (1) any
refinancing or repayment of the Parent Notes or any Parent Refinanced Debt with
the proceeds from (A) Capital Securities of the Guarantor, (B) new Parent
Refinanced Debt so long as such new Parent Refinanced Debt is in a principal
amount not in excess of that which is outstanding on the Amendment Effective
Date plus all reasonable fees, expenses, accrued interest and any
required premium or discount in connection with such financing, (2) with the
proceeds of dividends received from the Borrower not prohibited by the Credit
Agreement, (3) the payment of Additional Interest (as defined in the Parent
Notes Indenture) in an aggregate amount not exceeding $200,000 or (4) paying of
a consent fee (and expenses incurred in connection therewith) in connection
with the Parent Notes Consent in an aggregate amount not exceeding $1,750,000;

 

(vii)         consent to any amendment,
supplement, waiver or other modification of the terms or provisions contained
in the Parent Debt Documents, other than any amendment, supplement, waiver or
modification of the Parent Debt Documents which (i) extends the date or reduces
the amount of any required repayment, prepayment or redemption of the principal
of such Parent Debt or any Parent Refinancing Debt, (ii) reduces the rate or
extends the date for payment of the interest, premium (if any) or fees payable
on such Parent Debt or any Parent Refinancing Debt or (iii) makes the
covenants, events of default or remedies in such Parent Debt Documents less
restrictive on the Guarantor; and

 

(viii)        pay any dividends on the
Guarantor’s Capital Securities out of distributions of funds received from the
Borrower pursuant to clause (f) of Section 7.2.6 of the Credit Agreement unless
(1) no Dividend Suspension Period is in effect, (2) no Default has occurred and
is continuing at the time such dividend is declared and (3) no Event of Default
has occurred and is continuing at the time such payment is made.

 

ARTICLE VI

THE ADMINISTRATIVE AGENT

 

SECTION 6.1.        Administrative
Agent Appointed Attorney-in-Fact. 
The Guarantor hereby irrevocably appoints the Administrative Agent its
attorney-in-fact, with full authority in the place and stead of the Guarantor
and in the name of the Guarantor 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

 

12

 

Administrative Agent may deem necessary or
advisable to accomplish the purposes of this Agreement, including:

 

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

 

(b)           to perform the
affirmative obligations of the Guarantor hereunder.

 

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

 

SECTION 6.2.        Administrative
Agent May Perform.  If the Guarantor
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 the
Guarantor pursuant to Section 4.7 of the Credit Agreement.

 

SECTION 6.3.        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,  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 6.4.        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 the Guarantor 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.

 

ARTICLE VII

REMEDIES

 

SECTION 7.1.        Certain
Remedies.  If any Event of Default
shall have occurred and be continuing:

 

13

 

(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, 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.  The Guarantor agrees that, to the extent
notice of sale shall be required by law, at least ten days prior notice to the
Guarantor 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 set forth 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, (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 the
Guarantor’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
the Guarantor) endorsements, assignments, stock powers and other instruments of
conveyance or transfer with respect to all or any of the Collateral.

 

SECTION 7.2.        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, the Guarantor
agrees that, upon request of the Administrative Agent, the Guarantor will, at
its own expense, use commercially reasonable efforts to:

 

(a)           execute and deliver,
and cause the Borrower 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

 

14

 

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 its 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 the Borrower 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 7.3.        Compliance
with Restrictions.  The Guarantor
agrees that

 

(a)           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 in 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

 

(b)           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 the Guarantor for any discount allowed by the reason of the
fact that such Collateral is sold in compliance with any such limitation or
restriction.

 

SECTION 7.4.        Indemnity
and Expenses.

 

(a)           The Guarantor agrees to
indemnify the Administrative Agent from and against any and all claims, losses
and liabilities arising out of or resulting from this Agreement (including
enforcement of this Agreement), except claims, losses or liabilities resulting
from the Administrative Agent’s breach of contract, gross negligence or wilful
misconduct.

 

(b)           The Guarantor will,
upon demand, pay to the Administrative Agent the amount of any and all
reasonable expenses, including the reasonable fees and disbursements of its
counsel and of any experts and agents, which the Administrative Agent may incur
in connection with (i) the administration of each Loan Document, 

 

15

(ii) the
custody, preservation, use or operation of, or the sale of, collection from, or
other realization upon, any of the Collateral, (iii) the exercise or
enforcement of any of the rights of the Administrative Agent or the Secured
Parties hereunder, and (iv) the failure by the Guarantor to perform or observe
any of the provisions hereof.

 

SECTION 7.5.        Protection
of Collateral.  The Administrative
Agent may from time to time, at its option, perform any act which the Guarantor
fails to perform within 30 days 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 VIII       

MISCELLANEOUS PROVISIONS

 

SECTION 8.1.        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 8.2.        Binding
on Successors, Transferees and Assigns; Assignment.  This Agreement shall remain in full force and
effect until the Termination Date has occurred, shall be binding upon the
Guarantor and its 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 8.3.        Amendments,
etc.  No amendment to or waiver of
any provision of this Agreement, nor consent to any departure by the Guarantor
from its obligations under this 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 Guarantor and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.

 

SECTION 8.4.        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 (in the case of the Guarantor, 8750 N. Central Expressway, Suite 1800,
Dallas, Texas 75231) set forth 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 8.5.        Release
of Liens.  Upon the occurrence of the
Termination Date, the security interests granted herein shall automatically
terminate with respect to the Collateral. 
Upon such occurrence, the Administrative Agent will, at the Guarantor’s
sole expense, deliver to

 

16

 

the Guarantor, without any representations,
warranties or recourse of any kind whatsoever, all Collateral held by the
Administrative Agent hereunder, and execute and deliver to the Guarantor such
documents as the Guarantor shall reasonably request to evidence such
termination.

 

SECTION 8.6.        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 8.7.        Headings.  The various headings of this Agreement are
inserted for convenience only and shall not affect the meaning or
interpretation of this Agreement or any provisions thereof.

 

SECTION 8.8.        Severability.  Any provision of this 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 Agreement
or affecting the validity or enforceability of such provision in any other
jurisdiction.

 

SECTION 8.9.        Governing
Law, Entire Agreement, etc.  THIS 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 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 8.10.      Forum
Selection and Consent to Jurisdiction. 
ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH, ANY LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT,
THE LENDERS, THE ISSUER OR THE GUARANTOR IN CONNECTION HEREWITH OR THEREWITH
MAY BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED
THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY
BE BROUGHT, AT THE ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS OF ANY
JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.  THE GUARANTOR IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE
WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED
HEREIN.  THE GUARANTOR HEREBY

 

17

 

EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER
MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH
COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.  TO THE EXTENT
THAT THE GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION
OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE,
ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH
RESPECT TO ITSELF OR ITS PROPERTY, THE GUARANTOR HEREBY IRREVOCABLY WAIVES TO
THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER THE LOAN DOCUMENTS.

 

SECTION 8.11.      Waiver
of Jury Trial.  THE ADMINISTRATIVE
AGENT (ON BEHALF OF ITSELF AND EACH OTHER SECURED PARTY) AND THE GUARANTOR
HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT
PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, EACH
LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, SUCH LENDER, THE
ISSUER OR THE GUARANTOR IN CONNECTION THEREWITH.  THE GUARANTOR ACKNOWLEDGES AND AGREES THAT IT
HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH
OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT
THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE AGENT, EACH
LENDER AND THE ISSUER ENTERING INTO THE LOAN DOCUMENTS.

 

SECTION 8.12.      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.  Delivery of an executed counterpart of a
signature page to this Agreement by facsimile shall be effective as delivery of
a manually executed counterpart of this Agreement.

 

18

 

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.

 

	
   

  	
  REDDY ICE
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
           /s/
  Steven J. Janusek

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CREDIT
  SUISSE, acting through its

  Cayman Islands Branch,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
           /s/
  Denise L. Alverez

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judith E. SmithQuickLinks
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Exhibit 10.28  

 
 

AMENDMENT TO REDDY ICE HOLDINGS, INC.
  2003 STOCK OPTION PLAN    
    

        The Reddy Ice Holdings, Inc. 2003 Stock Option Plan (the "Plan") is amended as follows, effective as of August 8, 2005. 

        1.     Section 3(a)
of the Plan is amended to add "; and" at the end of clause (ix) thereof and to add the following clause (x) at the end of such
Section 3(a): 

"(x) to
provide for the early exercise of an Option for Restricted Shares as provided in Section 6(d) below." 

        2.     The
last sentence of Section 4(a) of the Plan is amended to read as follows: 

"If
Shares subject to any Option are not issued, or cease to be issuable for any reason, including (but not exclusively) because an Option is forfeited, terminated, expires unexercised, is settled in
cash in lieu of Shares or is exchanged for other Options, or Shares subject to any Restricted Share agreement issued on early exercise of an Option are forfeited, the Shares that were subject to that
Option or Restricted Share agreement, as the case may be, shall no longer be charged against the number of available Shares and shall again be available for issue or exercise pursuant to grants of new
Options under this Plan to the extent of such forfeiture, termination, expiration, settlement or exchange." 

        3.     Section 4(c)
of the Plan is amended by adding new paragraph (vii) to read as follows: 

        "(vii) If
an event or condition described in this Section 4(c) occurs, the Committee shall make applicable adjustments to outstanding Restricted Shares issued on early
exercise of Options which are substantially similar to those adjustments set forth above in this Section 4(c)." 

        4.     Section 5(e)(i) of
the Plan is amended by adding the following at the end thereof: 

"Notwithstanding
any provision of this Plan to the contrary, in the event of a Qualified IPO on or prior to August 31, 2005, all unvested Time Based Options outstanding on the closing date of
such Qualified IPO shall vest 40% on February 28, 2006, an additional 40% on January 16, 2007 and final 20% on July 1, 2007." 

        5.     Section 5
of the Plan is amended by adding the following new Section 5(e)(ii)(4) thereto: 

        "(4)
Notwithstanding any provision of this Plan to the contrary, upon the closing of a Qualified IPO on or prior to August 31, 2005, all Performance Based Options outstanding on
the closing date of such Qualified IPO shall become exercisable in full on such date." 

        6.     Section 5(g)
of the Plan is amended by adding new clause (iv) to the end thereof: 

        "(iv) Notwithstanding
any provision of this Plan to the contrary, following a Qualified IPO on or prior to August 31, 2005, unless otherwise determined by a unanimous vote
of the Board (without the participation by the Participant if he or she is a member of the Board), (A) if the termination is by the Participant's employer not for Cause (as such term is defined
in the Participant's employment agreement if the Participant has a written employment agreement with the employer, or as defined below if the Participant does not have such a written employment
agreement) or (B) if termination is by the Participant for good reason (as defined in the Participant's written employment Agreement, but only for Participants in whose employment agreement
such term appears), then the Time Based Options held by such Participant shall become vested in full on the date of termination. For purposes of this Plan, in the case of a Participant who does not
have a written employment agreement with his or her employer, "Cause" means (i) the commission by the Participant of an act of fraud, dishonesty, embezzlement or the unauthorized disclosure or
use of confidential information, (ii) the Participant pleads guilty or no contest to, or is convicted of, any criminal offense involving moral turpitude, (iii) material 

 

misconduct
by the Participant which could reasonably be expected to adversely affect the Parent or its Subsidiaries, (iv) failure by the Participant to adequately perform the duties for which
he or she has been employed, as determined by the Parent in good faith, or (v) material breach by the Participant of the code of conduct of the Parent or its Subsidiaries." 

        7.     Section 6(a)
of the Plan is amended by adding the following at the end thereof: 

"Only
if and to the extent so authorized by the Committee, the Option may be exercised through the written election of the Participant to have Shares withheld by the Parent from the Shares otherwise
to be received upon exercise, with such withheld Shares having an aggregate fair market value on the date of exercise equal to the exercise price." 

        8.     New
Section 6(d) is added to the Plan to read as follows: 

        "(d)    Early Exercise For Restricted Shares.    The Committee may provide at the time of grant or any time
thereafter, in its sole discretion, that any Option granted at any time under the Plan shall be exercisable with respect to Shares for which it would otherwise not then be exercisable, provided that,
in connection with such exercise, the Participant enters into a form of Restricted Share agreement approved by the Committee with respect to the Shares obtained on exercise (which shall be Restricted
Shares hereunder). Unless otherwise determined by the Committee, the lapse of restrictions with respect to such Restricted Shares (including, without limitation, in the event of a Change of Control)
shall occur on the same schedule, and subject to the same conditions, as the exercisability of the Option under which the Restricted Shares were exercised. Except to the extent, if any, restricted
under the award agreement relating to the Restricted Shares, a Participant who receives Restricted Shares on early exercise of an Option shall have all of the rights of a shareholder including,
without limitation, the right to vote the Restricted Shares and the right to receive dividends thereon. Except as otherwise determined by the Committee, at the date of grant or thereafter, upon
termination of service during the applicable restriction period, Restricted Shares and any accrued but unpaid dividends that are at that time subject to restrictions shall be forfeited;  provided,
however, that the Committee may provide, by rule or regulation or in any Restricted Share
agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating to Restricted Shares will be waived in whole or in part in the event of termination of service
resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture of Restricted Shares. Restricted Shares granted under the Plan may be evidenced in such
manner as the Committee shall determine. If certificates representing Restricted Shares are registered in the name of the Participant, such certificates shall bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such Restricted Shares, and, unless the Committee determines otherwise, the Company shall retain physical possession of the certificate and the
Participant shall deliver a stock power to the Company, endorsed in blank, relating to the Restricted Shares." 

        9.     Sections
8(a), (c), (d), (e), (f), (g) and (h) shall each be amended by adding "or Restricted Share" after the word "Option" in each place it appears
therein. 

2

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AMENDMENT TO REDDY ICE HOLDINGS, INC. 2003 STOCK OPTION PLAN

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