Document:

exv10w90

 

EXHIBIT
10.90

January 29, 2007

Mr. Dennis McLaughlin, Chairman & Chief Executive Officer

Earth Biofuels, Inc.

3001 Knox Street, Suite 403

Dallas, TX 75205

Re:
Offer to Capitalize BIOFUELS with $150 Million in exchange for Common Stock.

Dear Mr. McLaughlin:

NEXXUS ONE CAPITAL TRUST OF SWITZERLAND, A.G. (hereinafter referred to as or “NEXXUS”) is pleased
to submit our offer to provide $150 Million in new capitalization for EARTH BIOFUELS, INC.
(Hereinafter referred to as “BIOFUELS” of the “Company”) in exchange for voting common stock of
BIOFUELS on the terms and conditions more fully set forth below.

NEXXUS proposes to increase the underwriting capacity of BIOFUELS by delivering $150 Million in the
form of an investment grade bond in exchange for voting common stock (the “Transaction”) of
BIOFUELS (the “Company”). References to “this letter of intent” mean collectively, this letter and
the attached summary of certain terms and condition (the “Term Sheet”).

	1.	 	Capitalization Agreement. Subject to the terms of this letter of intent, the Company and
NEXXUS agree to negotiate, prepare and execute a mutually acceptable capitalization agreement
(the “Capitalization Agreement”) for the Transaction containing (a) the terms and conditions
in the Term Sheet, (b) other representations, warranties, covenants, indemnities, reserves,
and offset rights pertaining to the Company’s financial condition and prospects, assets,
liabilities, legal circumstances, business and operations that are customary in similar
transactions, and (c) other mutually satisfactory provisions that are consistent with the
express terms of the Transaction. The Company and NEXXUS agree to negotiate in good faith, to
respond promptly in negotiations, and to use their best efforts to execute the Capitalization
Agreement and to satisfy all conditions to completion of the Transaction in a timely manner.

	2.	 	Bona Fides. Assets securing NEXXUS are portfolios of investment grade bonds rated by
Standard and Poor’s, Moody’s or Fitch. NEXXUS will provide details of the bonds, their
rating(s) and the specific issue and ISIN number as appropriate once
we have entered into a
Mutual Confidentiality Agreement.

7251 West Lake Mead Boulevard, Suite 300

Las Vegas, Nevada 89128

(USA) 702-562-4020 (Facsimile) 702-926-9639

 

 

	3.	 	Investigation. Upon reasonable advance notice, the Company will afford free and full
access to the
Company’s shareholders, directors, officers, employees, offices, books, and records, during
normal
business hours in order to permit NEXXUS and its officers, partners, attorneys, and other
advisors
(“Representatives”) to investigate the Company’s financial condition and prospects, assets,
liabilities,
legal circumstances, business and operations to the extent that NEXXUS or its Representatives
deem
necessary or desirable. NEXXUS agrees (and agrees to instruct its Representatives) to complete
its
investigation as promptly as possible without undue disruption to the Company’s business.
	 
	4.	 	Confidentiality. Unless and until the Transaction is completed (a) no formal announcement of
the Transaction may be made to third parties except in order to obtain necessary or appropriate
third party and governmental consents or approvals and otherwise upon the mutual agreement of NEXXUS and
the Company, and (b) NEXXUS agrees (and agrees to direct it Representatives) to (i) otherwise
hold in confidence all information obtained from the Company or its Representatives about the Company
that is not otherwise public or generally available to the public, (ii) not reveal the
confidential information to any person or entity except in order to obtain necessary and appropriate
third-party and governmental consents and approvals, as may be required by law, or as may be required to obtain
debt or equity financing for the Transaction, and (iii) not use that confidential information for any
purpose except in connection with investigating, documenting, and completing the Transaction. If the
Transaction is not completed and upon written request by the Company, NEXXUS agrees to use all
reasonable efforts to return to the Company all written material related to the
Company.
	 
	5.	 	Exclusivity. Except with respect to NEXXUS and this letter of intent, the Company (a)
represents that there are no agreements or understandings in effect that directly or indirectly relate to
the sale or other disposition of a majority of the capital stock of the Company or any material portion of
the Company’s assets or business and (b) agrees that before the earlier of (i) the expiration of
this letter of intent, or (ii) the date on which NEXXUS advises the Company that it does not intend to
consummate the Transaction, the Company will not solicit the interest of any other potential equity
investors or enter into any agreement or understanding or otherwise negotiate with any other person or entity
for the purpose of any such sale or disposition.
	 
	6.	 	Expiration.
	 
	 	 	(a) This letter of intent will automatically expire on January 30, 2007 at 5:00 P.S.T. unless
extended by NEXXUS as provided below or accepted by Company.
	 
	 	 	(b) The rights duties and obligations in Paragraphs 1, 2, and 4 will automatically expire unless
the Company and NEXXUS have entered into the Capitalization Agreement by either (i) January 30,
2007 or (ii) another date that may be agreed to in writing by both the Company and NEXXUS.

Page 2 of 2 Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward looking statements that are subject to risks and uncertainties
including, but not limited to, the impact of competition in the marketplace, the cyclical nature of
the business, reliance on key marketing relationships, fluctuations in operating results and other
risks detailed from time to time in the Company’s periodic reports filed with the SEC (reports are
available from the Company upon request). These various risks and uncertainties may cause the
Company’s actual results to differ materially from those expressed in any of the forward looking
statements made by, or on behalf of the Company in this release. This Proposal is neither an offer
to sell or to purchase securities, banking services or insurance products. All of the above
referenced services and products are provided by third party affiliates.

 

 

	 	 	(c) Upon execution of the Capitalization Agreement, this letter of intent shall expire and
be superseded by the Capitalization Agreement.

	7.	 	Miscellaneous. Unless stated otherwise (a) any communication to a party of this letter must
be in writing to be effective and is deemed to be given on the day actually delivered or, if mailed,
on the third business day after its is properly addressed, affixed with the appropriate first class
postage and deposited with the U.S. postal service.
	 
	8.	 	Parties Intent. This letter of intent is intended to be an expression of sincere and genuine
interest on NEXXUS’ part to proceed toward a capitalization of BIOFUELS with $150 Million in exchange for
voting common stock of BIOFUELS. It is intended that, based on this interest, both parties will
use their best efforts to expeditiously move from the framework outlined in this letter of intent to
a final and binding Capitalization Agreement. Consequently, no provision of this letter is intended by
the parties to be legally binding, except Paragraphs 3 and 4. The parties shall not be legally bound
until the Capitalization Agreement is duly executed.

If you are in general agreement with the terms of this proposal, please contact us at your earliest
convenience so we may present a formal, binding offer.

We look forward to working with you toward a successful and mutually beneficial capitalization of
BIOFUELS with $150 Million.

	 	 	 	 	 	 	 
	Respectfully submitted,	 	Agreed and Accepted by,	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Dennis McLaughlin	 	 
	 	 	 	 	 
	Samuel G. Enegren	 	Dennis McLaughlin	 	 
	Advisor to the Trust	 	Title: Chairman & Chief Executive	 	 
	 
	 	 	 	 	 	 
	January 29, 2007

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

Page 3 of 3 Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: This release contains forward looking statements that are subject to risks and uncertainties
including, but not limited to, the impact of competition in the marketplace, the cyclical nature of
the business, reliance on key marketing relationships, fluctuations in operating results and other
risks detailed from time to time in the Company’s periodic reports filed with the SEC (reports are
available from the Company upon request). These various risks and uncertainties may cause the
Company’s actual results to differ materially from those expressed in any of the forward looking
statements made by, or on behalf of the Company in this release. This Proposal is neither an offer
to sell or to purchase securities, banking services or insurance products. All of the above
referenced services and products are provided by third party affiliates.

 

 

CERTAIN TERMS AND CONDITIONS FOR

CAPITALIZATION OF BIOFUELS

WITH $150 MILLION USD

January 29, 2007

	 	 	 
	DEFINED TERMS

	 	The terms defined in the letter of intent to which this
term sheet is attached have the same meanings when used
here, unless otherwise defined.
	 
	 	 
	PURCHASE PRICE

	 	$150 Million structured in the following manner; $150
Million will be apportioned to the purchase of 144
“Restricted” common stock of the outstanding shares of
the Company by NEXXUS ONE CAPITAL TRUST OF SWITZERLAND,
A.G. or assigns. Share price shall be calculated as the
volume weighted average price determined over the period
of the three (3) trading days prior to date of closing.
$150 Million will be paid at closing by NEXXUS in the
form of an investment grade five year secured bond
paying not less than five percent per annum in exchange
for $187.5 Million of Company shares in accordance with
a Shareholder’s Agreement to be negotiated between
NEXXUS and Company prior to closing. Said bond shall be
rated investment grade by Standard & Poors, Moody’s or
Fitch. The bond and shares ownership will be transferred
at Closing and the Nexxus bond and shares of BIOFUELS
stock will be delivered into a mutually acceptable
escrow not less than three days prior to closing.
	 
	 	 
	CLOSING

	 	Closing shall occur on or before sixty days after signing
and acceptance of this Proposal.
	 
	 	 
	REGISTRATION RIGHTS:

	 	Common stock to be issued in the
Transaction for the payment of Commitment & Closing Fees
will be registered for resale via an SB-2 or other
appropriate registration statement, which may
include the shares of other selling stockholders to which
the Company has preexisting commitments (“Registration
Statement”). BIOFUELS will grant NEXXUS
registration rights, which provide that
BIOFUELS will file the above referenced Registration
Statement within 60 days after the Closing Date (the
“Filing Date”).

Page 4 of 4 Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward looking statements that are subject to risks and uncertainties
including, but not limited to, the impact of competition in the marketplace, the cyclical nature of
the business, reliance on key marketing relationships, fluctuations in operating results and other
risks detailed from time to time in the Company’s periodic reports filed with the SEC (reports are
available from the Company upon request). These various risks and uncertainties may cause the
Company’s actual results to differ materially from those expressed in any of the forward looking
statements made by, or on behalf of the Company in this release. This Proposal is neither an offer
to sell or to purchase securities, banking services or insurance products. All of the above
referenced services and products are provided by third party affiliates.

 

 

	 	 	 
	 

	 	BIOFUELS will use its best efforts to cause the
Registration Statement to become effective within 30 days
after the Filing Date (the “Effective Date”), and will
maintain such effectiveness until all the shares of
common stock issued in the Transaction have been resold.
If the  Registration Statement has not been filed by the
Filing Date, BIOFUELS will pay liquidated damages to
NEXXUS. The liquidated damages will be 2% of outstanding
capitalization principal and purchase price if paid in
cash or at NEXXUS’ election, 4% if paid with common stock
valued at the volume weighted average price of the 10
prior trading days.
	 
	 	 
	CONDITIONS TO CLOSING

	 	NEXXUS’ obligation to complete the Transaction is
subject to among other things, the satisfaction of the
following conditions before or at closing.

	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	NEXXUS’ satisfactory review of the financial
statements of the Company for the fiscal years 2002
through 2005. The financial statements for each
period will be composed of a balance sheet, an income
statement, and a cash flow statement.
	 
	 	 	 	 	 	 
	 

	 	 	2.	 	 	NEXXUS’ satisfactory investigation of the
Company’s ownership, financial condition, and
prospects, assets, liabilities, legal
circumstances,
business and operations. Said investigation
may
include a review by NEXXUS’ lenders, other parties’
requisite to the Transaction, and their respective
Representatives.
	 
	 	 	 	 	 	 
	 

	 	 	3.	 	 	Receipt of any and
all required third party and
governmental consents and approvals.
	 
	 	 	 	 	 	 
	 

	 	 	4.	 	 	Finalization of
definitive documentation mutually
satisfactory to the parties.
	 
	 	 	 	 	 	 
	 

	 	 	5.	 	 	No material
adverse change in the Company’s
working capital, overall financial
condition,

Page 5 of 5 Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward looking statements that are subject to risks and uncertainties
including, but not limited to, the impact of competition in the marketplace, the cyclical nature of
the business, reliance on key marketing relationships, fluctuations in operating results and other
risks detailed from time to time in the Company’s periodic reports filed with the SEC (reports are
available from the Company upon request). These various risks and uncertainties may cause the
Company’s actual results to differ materially from those expressed in any of the forward looking
statements made by, or on behalf of the Company in this release. This Proposal is neither an offer
to sell or to purchase securities, banking services or insurance products. All of the above
referenced services and products are provided by third party affiliates.

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	prospects, assets, liabilities, legal
circumstances, business or operations.
	 
	 	 	 	 	 	 
	 

	 	 	6.	 	 	BIOFUELS shall pay NEXXUS ONE SECURITIES
LTD. a Commitment Fee upon acceptance of this
Capitalization Proposal of 1% of the
principal amount of the bond
(the “Commitment Fee”), payable in a
number of 144 “Restricted” common shares of the
Company for arranging the transaction as a
consultant, determined in accordance with the terms
set forth herein, having a value equal to the
Commitment Fee, which shall be fully earned and
non-refundable upon the closing of the Transaction
by NEXXUS and BIOFUELS. The Commitment Fee shall
be placed in escrow upon the signing of this letter
of intent, and the Commitment Fee shall be refunded
within 1 business day in the event NEXXUS fails to close the
transaction by the above-referenced closing date. It is further agreed that
BIOFUELS will file a registration for the 144 shares
tendered in payment of the
Commitment Fee within 60 calendar days or less after closing and will use it’s best
efforts to cause the Registration of those shares to
become effective within 30 days or less.
	 
	 	 	 	 	 	 
	 

	 	 	7.	 	 	BIOFUELS shall pay NEXXUS ONE SECURITIES LTD. a Closing Fee, at
closing, of 2.5% of the principal amount of the bond (the “Closing
Fee”), payable in a number of 144 “Restricted” shares of stock
in the Company having a value equal to the Closing Fee for arranging
the transaction as a consultant, which shall be fully earned and
non-refundable upon payment at closing.
	 
	 	 	 	 	 	 
	 

	 	 	8.	 	 	The Company will not
issue a press release regarding
the Transaction without prior written approval of
NEXXUS, which approval will not be unreasonably
withheld or delayed. A press release regarding this
transaction will be made on or after the Closing Date
and will contain only pertinent information regarding
this transaction.
	 
	 	 	 	 	 	 
	 

	 	 	9.	 	 	The Company will not file any additional registration

Page 6 of 6 Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward looking statements that are subject to risks and uncertainties
including, but not limited to, the impact of competition in the marketplace, the cyclical nature of
the business, reliance on key marketing relationships, fluctuations in operating results and other
risks detailed from time to time in the Company’s periodic reports filed with the SEC (reports are
available from the Company upon request). These various risks and uncertainties may cause the
Company’s actual results to differ materially from those expressed in any of the forward looking
statements made by, or on behalf of the Company in this release. This Proposal is neither an offer
to sell or to purchase securities, banking services or insurance products. All of the above
referenced services and products are provided by third party affiliates.

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	statements (including on Form S-8) until the
Registration Statement as described below has been
effective for 30 days, except for registration statements that the Company is
already obligated to file. During this period, the
Company will not take actions which could result in
the Registration Statement not being deemed “current.”
	 
	 	 	 	 	 	 
	 

	 	 	10.	 	 	The Company will not enter into agreement to sell
nor will the Company sell equity based securities or
securities with an equity component until
the Registration Statement has been effective for 30 days.
There will be a carve out for acquisitions, officer,
director and employee compensation, strategic non-financing related issuances and prior
disclosed commitments.
	 
	 	 	 	 	 	 
	 

	 	 	11.	 	 	The definitive agreements will contain provisions
prohibiting the Company from issuing floating price
securities for a period of 90 days following the
closing day.
	 
	 	 	 	 	 	 
	 

	 	 	12.	 	 	Within two days after the signing of this Term Sheet,
the Company will provide a certified copy of a
resolution adopted by its board of
directors unanimously approving the Transaction.
	 
	 	 	 	 	 	 
	 

	 	 	13.	 	 	The Transaction will not result in the triggering of
anti-dilution rights of any other debt or equity holder
of the Company.

	 	 	 
	FEES AND EXPENSES

	 	NEXXUS is responsible for its legal, financial,
accounting, and advisory fees and expenses. The Company
shall be responsible for the legal, financial,
accounting and advisory fees and expenses of the Company
and the Shareholders in connection with the Transaction.

Page 7 of 7 Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward looking statements that are subject to risks and uncertainties
including, but not limited to, the impact of competition in the marketplace, the cyclical nature of
the business, reliance on key marketing relationships, fluctuations in operating results and other
risks detailed from time to time in the Company’s periodic reports filed with the SEC (reports are
available from the Company upon request). These various risks and uncertainties may cause the
Company’s actual results to differ materially from those expressed in any of the forward looking
statements made by, or on behalf of the Company in this release. This Proposal is neither an offer
to sell or to purchase securities, banking services or insurance products. All of the above
referenced services and products are provided by third party affiliates.

 

 

ESCROW AGREEMENT

This Escrow Agreement (this “Agreement”), dated as of January 29, 2007, is by and among
Earth Biofuels, Inc. (“Earth
Biofuels”), Nexxus One Securities, Ltd. (“Nexxus”), and
American Escrow Company, as escrow agent hereunder (the “Escrow Agent”).

     WHEREAS, Earth Biofuels has agreed to deposit in escrow certain shares, and Earth Biofuels
and Nexxus agree that such deposit will be subject to the terms and conditions set forth herein;
and

     WHEREAS, the Escrow Agent has agreed to act as escrow agent subject to the terms and
conditions set forth herein.

     NOW THEREFORE, in consideration of the mutual obligations and covenants set forth herein, the
parties hereto agree as follows:

1. APPOINTMENT.

Earth Biofuels and Nexxus hereby appoint the Escrow Agent as each party’s respective escrow agent
for the purposes set forth herein, and the Escrow Agent hereby accepts such appointment.

2. ESCROW FUND.

Simultaneously with the execution and delivery of this Agreement, Earth Biofuels is depositing
with the Escrow Agent 2,500,000 restricted shares of Earth Biofuels’ common stock (the “Escrow
Fund”).

3. RESERVED.

4. DISTRIBUTION OF ESCROW FUND.

The Escrow Fund shall be held by the Escrow Agent until the earlier of (a) the Automatic Release
Date (as defined below), on which date the Escrow Fund shall be released to Earth Biofuels at the
address specified for Earth Biofuels in Section 11, and (b) the Escrow Agent’s receipt of joint
written instructions substantially in the form of Exhibit A attached hereto (the “Joint Written
Direction”), from each of (i) Darren Miles on behalf of Earth Biofuels and (ii) Samuel G.
Enegren on behalf of Nexxus, in which case the Escrow Fund shall be released to Nexxus pursuant to
the provisions of the Joint Written Direction.

For
purposes of this Agreement, “Automatic Release Date” means March 10, 2007, unless the
Escrow Agent has received, prior to such date, the joint written instructions substantially in the
form on Exhibit B attached hereto (the “Extension Direction”) changing the Automatic
Release Date to a later date, in which case such later date shall be the Automatic Release Date.
The Extension Direction must be signed by each of (a) Darren Miles on behalf of Earth Biofuels and
(b) Samuel G. Enegren on behalf of Nexxus.

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Earth Biofuels represents and warrants to the Escrow Agent that Darren Miles is duly authorized to
deliver the Joint Written Direction and the Extension Direction on behalf of Earth Biofuels. Nexxus
represents and warrants to the Escrow Agent that Samuel G. Enegren is duly authorized to deliver
the Joint Written Direction and the Extension Direction on behalf of Nexxus.

5. DISAGREEMENT OF PARTIES.

In the event of a dispute between or conflicting claims by or among the parties or any other
person or entity with respect to all or a portion of the Escrow Fund or the terms of this
Agreement, the Escrow Agent shall be entitled in its sole discretion to refuse to comply with any
claims, demands or instructions with respect to the Escrow Fund so long as such dispute or
conflict shall continue, and the Escrow Agent shall not be or become liable in any way to the
parties for such refusal or failure to comply. The Escrow Agent shall not be required to act
until, in its sole discretion, (a) such conflicting or adverse claims or demands either (i) shall
have been determined by a final order, judgment or decree of a court of competent jurisdiction,
which order, judgment or decree is not subject to appeal or (ii) shall have been settled by
agreement between the conflicting parties as evidenced in a writing satisfactory to the Escrow
Agent or (b) the Escrow Agent shall have received security or indemnity satisfactory to it
sufficient to hold it harmless from and against any and all claims, actions, losses, liabilities,
costs, damages or expenses, including reasonable attorneys’ fees.

6. TERMINATION.

Unless the Escrow Agent earlier resigns, this Agreement shall terminate, subject to the provisions
of Section 8, upon final distribution of the Escrow Fund by the Escrow Agent.

7. ESCROW AGENT.

The Escrow Agent undertakes to perform only those duties expressly set forth herein and no duties
shall be implied.

The Escrow Agent shall have no liability under and no duty to inquire as to the provisions of any
agreement of Earth Biofuels and/or Nexxus other than this Agreement.

The Escrow Agent is not a party to, or bound by any agreement that may be deposited under,
evidenced by, or that arises out of the foregoing instructions.

The Escrow Agent acts hereunder as a depository only and is not responsible or liable in any
manner whatsoever for the sufficiency, correctness, genuineness, or validity of any instrument
deposited with it hereunder, or with respect to the form or execution of the same, or the
identity, authority, or rights of any person executing or depositing the same.

The Escrow Agent shall not be required to take or be bound by notice of any default of any person,
or to take any action with respect to such default involving any expense or liability, unless
notice in writing is given to an officer of the Escrow Agent of such default and unless it is
indemnified in a manner satisfactory to it against any such expense or liability. These
instructions shall not be subject to rescission or modification

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except upon receipt by the Escrow Agent of written instructions of all the parties hereto or their
successors in interest, and no such modification shall be effective unless and until consented to
in writing by the Escrow Agent.

The Escrow Agent shall be protected in acting upon any notice, request, waiver, consent, receipt,
or other paper or document believed by the Escrow Agent to be genuine and to be signed by the
proper party or parties.

The Escrow Agent shall be under no duty to inquire into or investigate the validity, accuracy or
content of any document

The Escrow Agent shall not be liable for any error of judgment or for any act done or step taken
or omitted by it in good faith, or for any mistake of fact or law, or for anything that it may do
or refrain from doing in connection herewith, except its own willful misconduct, and the Escrow
Agent shall have no duties to anyone except those signing these instructions.

The Escrow Agent assumes no liability, and the parties hereto consent and agree that the Escrow
Agent shall have no liability, for any defalcation, insolvency, receivership or conservatorship of
the depository institution. Nor shall the Escrow Agent have any liability due to any of the
parties other than the Escrow Agent filing for bankruptcy or the consequences or effect of such a
bankruptcy on the funds and/or documents deposited hereunder.

The Escrow Agent may consult with legal counsel in the event of any dispute or questions as to the
construction of the foregoing instructions, or the Escrow Agent’s duties hereunder, and the Escrow
Agent shall incur no liability and shall be fully protected in acting in accordance with the
opinion and instructions of such counsel.

Anything in this Agreement to the contrary notwithstanding, in no event shall the Escrow Agent be
liable for special, indirect or consequential loss or damage of any kind whatsoever (including,
but not limited to, lost profits and/or savings), even if the Escrow Agent has been advised of the
likelihood of such loss or damage and regardless of the form of action.

8.
FEES.

Earth Biofuels and Nexxus agree jointly and severally to (a) concurrently with the Escrow Agent’s
execution of this Agreement, pay the Escrow Agent One Thousand Five Hundred Dollars ($1,500) for
the services to be rendered hereunder, and (b) pay or reimburse the Escrow Agent upon request for
all expenses, disbursements and advances, including reasonable attorneys’ fees and expenses,
incurred or made by it in connection with the preparation, execution, delivery, performance,
modification and/or termination of this Agreement. If any fees, expenses or costs incurred by, or
any obligations owed to, the Escrow Agent or its counsel hereunder are not promptly paid when due,
the Escrow Agent may reimburse itself therefor from the Escrow Fund. The Escrow Agent may in its
sole discretion withhold from any distribution of the Escrow Fund any unpaid amount to

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which the Escrow Agent is entitled hereunder. This Section shall survive the termination of this
Agreement and the resignation of the Escrow Agent.

9. LIABILITY AND INDEMNIFICATION OF ESCROW AGENT.

The parties hereto further agree that the Escrow
Agent assumes no liability for and is expressly released from any claim or claims whatsoever in
connection with the receipt, retention and delivery of the Escrow Fund except to account for
payment and/or delivery made thereon. Deposit by the Escrow Agent of the Escrow Fund (less its
charges and expenses incurred herein) comprising this escrow in court shall relieve the Escrow
Agent of all further responsibility and liability, and the Escrow Agent is hereby expressly
authorized to disregard in its sole discretion any and all notices or warnings given by any of the
parties hereto, or by any other person or corporation, but the Escrow Agent is hereby expressly
authorized to regard and to comply with and obey any and all orders, judgments or decrees entered
or issued by any court with or without jurisdiction, and in case the Escrow Agent obeys or complies
with any such order, judgment or decree of any court it shall not be liable to any of the parties
hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding
that any such order, judgment or decree has been entered without jurisdiction or has been
subsequently reversed, modified, annulled, set aside or vacated. In case of any suit or proceeding
regarding this escrow to which the Escrow Agent is or may be at any tune a party, it shall have a
lien on the Escrow Fund for any and all cost, attorneys’ fees, whether such attorneys shall be
regularly retained or specially employed and other expenses that it may have incurred or become
liable for on account thereof, and it shall be entitled to reimburse itself therefor out of the
Escrow Fund, and the undersigned jointly and severally agree to indemnify and hold harmless Escrow
Agent from all loss, costs or damages incurred, including, but not limited to, attorneys’ fees, by
reason of this Agreement or the subject matter hereof or any cause of action that may be filed in
connection therewith and to pay the Escrow Agent, upon demand, all such costs, fees and expenses so
incurred.

In the event that (a) the Escrow Agent performs any service not specifically provided hereinabove,
or (b) there is any assignment or attachment of any interest in the subject matter of this escrow
or any modification thereof, or (c) any controversy arises hereunder, or (d) the Escrow Agent is
made a party to, or intervenes in, any litigation pertaining to the Escrow Fund or the subject
matter hereof, Escrow Agent shall be reasonably compensated therefor and reimbursed for all costs
and expenses occasioned thereby; and the parties hereto agree jointly and severally to pay the same
and to indemnify Escrow Agent against any loss, liability, or expense incurred in any act or thing
done by it hereunder, it being understood and agreed that the Escrow Agent may interplead the
subject matter of this escrow into any court of competent jurisdiction in Dallas County, Texas, and
the act of such interpleader shall immediately relieve the Escrow Agent of its duties, liabilities,
and responsibilities hereunder.

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10.
TAXES.

All interest earned on the Escrow Fund shall be considered the currently reportable income of
Nexxus for federal income tax purposes. It is understood that the Escrow Agent shall be responsible
for income reporting only with respect to income earned on the Escrow Fund and will not be
responsible for any other reporting.

11.
NOTICES.

Any communication, notice or document required or permitted to be given under this Agreement shall
be given in writing and shall be deemed received (i) when personally delivered to the relevant
party at such party’s address as set forth below, (ii) if sent by mail (which must be certified or
registered mail, postage prepaid) or overnight courier, when received or rejected by the relevant
party at such party’s address indicated below, or (iii) if sent by facsimile, when confirmation of
delivery is received by the sending party:

If to the Escrow Agent:

American Escrow Company

2626 Howell St., 10th Floor

Dallas, Texas 75204

Attention: Carla D. Janousek, Senior Vice President

Facsimile: 214-855-8848

If to Earth Biofuels:

Earth Biofuels, Inc. 
3001 Knox
Street, Suite 403
 Dallas, Texas
75205 
Attention: Darren Miles
Facsimile: 214-389-9806

If to Nexxus:

Nexxus One Securities, Ltd.

7251 West Lake Mead Boulevard, Suite 300

Las Vegas, Nevada 89128

Attention: Samuel G. Enegren

Facsimile: 413-208-5830

Telephone: 702-562-4020

5

 

12.
MISCELLANEOUS.

The provisions of this Agreement may be waived, altered, amended or supplemented, in whole or in
part, only by a writing signed by all of the parties hereto. This Agreement and the rights and
obligations hereunder of the parties may not be assigned except with the prior written consent of
the other parties hereto. This Agreement shall be governed by and construed under the laws of the
State of New York (without reference to choice of law principles), and the parties hereby consent
to the exclusive jurisdiction of the courts in New York, New York (whether state or federal) over
all matters relating to this Agreement. Each party hereto irrevocably waives any objection on the
grounds of venue, forum non-convenience or any similar grounds and irrevocably consents to service
of process by mail or in any other manner permitted by applicable law. The parties further hereby
waive any right to a trial by jury with respect to any lawsuit or judicial proceeding arising or
relating to this Agreement. No party to this Agreement is liable to any other party for losses due
to, or if it is unable to perform its obligations under the terms of this Agreement because of,
acts of God, fire, floods, strikes, equipment or transmission failure, or other causes reasonably
beyond its control. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument.

[Signature page follows.]

6

 

     IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement by the authorized officer named below.

	 	 	 	 	 	 	 
	 	 	EARTH BIOFUELS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Darren Miles
 

Darren Miles, Chief Financial Officer
	 	 
	 
	 	 	 	 	 	 
	 

	 	NEXXUS ONE SECURITIES, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Samuel G. Enegren
	 	 

     Escrow Agent hereby acknowledges receipt of this Agreement and of the Escrow Fund referred to
herein and agrees, in consideration of the foregoing, to hold and dispose of the same in accordance
with the instructions and upon the terms and conditions above set forth.

	 	 	 	 	 	 	 
	 	 	AMERICAN ESCROW COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

7

 

Exhibit A

Joint Written Direction

American Escrow Company

2626 Howell St., 10th Floor

Dallas, Texas 75204

Attention: Carla D. Janousek, Senior Vice President

Facsimile: 214-855-8848

Ladies and Gentlemen:

Reference is made to that certain Escrow Agreement dated effective as of January 29, 2007 (the
“Agreement” ) by and among you and the undersigned. This letter is the “Joint Written
Direction” referenced in Section 4 of the Agreement. All terms used herein shall have the same
meaning as defined in the Agreement.

Please mail the Escrow Fund to the following:

Nexxus One Securities, Ltd.

7251 West Lake Mead Boulevard, Suite 300

Las Vegas, Nevada 89128

Attention: Samuel G. Enegren

Very truly yours,

	 	 	 	 	 
	EARTH BIOFUELS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Darren Miles, Chief Financial Officer
	 	 
	 
	 	 	 	 
	NEXXUS ONE SECURITIES, LTD.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Samuel G. Enegren
	 	 

8

 

Exhibit B

Extension Direction

American Escrow Company

2626 Howell St., 10th Floor

Dallas, Texas 75204

Attention: Carla D. Janousek, Senior Vice President

Facsimile: 214-855-8848

Ladies and Gentlemen:

Reference is made to that certain Escrow Agreement dated effective as of January 29, 2007 (the
“Agreement” ) by and among you and the undersigned. This letter is the “Extension Direction”
referenced in Section 4 of the Agreement. All terms used herein shall have the same meaning as
defined in the Agreement.

Earth Biofuels and Nexxus hereby change the Automatic Release Date to                     , 2007.

Very truly yours,

	 	 	 	 	 
	EARTH BIOFUELS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Darren Miles, Chief Financial Officer
	 	 
	 
	 	 	 	 
	NEXXUS ONE SECURITIES, LTD.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Samuel G. Enegren
	 	 

9exv10w91

 

EXHIBIT
10.91

Execution Copy

 

CREDIT AGREEMENT

dated as of March 23, 2007

among

DURANT BIOFUELS, LLC,

as Borrower,

EARTH BIOFUELS, INC.

and

EARTH LNG, INC.
APPLIED LNG TECHNOLOGIES USA, L.L.C.

FLEET STAR, INC.

APOLLO LEASING, INC.

ARIZONA LNG, L.L.C.

as Loan Parties,

THE FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders,

and

FOURTH THIRD LLC

as Agent and Sole Lead Arranger

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Section 1. Definitions; Interpretation
	 	 	1	 
	 
	 	 	 	 
	1.1. Definitions
	 	 	1	 
	 
	 	 	 	 
	1.2. Interpretation
	 	 	12	 
	 
	 	 	 	 
	Section 2. Credit Facilities
	 	 	13	 
	 
	 	 	 	 
	2.1. Commitments
	 	 	13	 
	 
	 	 	 	 
	2.2. Omitted
	 	 	13	 
	 
	 	 	 	 
	2.3. Loan Accounting
	 	 	13	 
	2.3.1. Recordkeeping
	 	 	13	 
	2.3.2. Notes
	 	 	13	 
	 
	 	 	 	 
	2.4. Interest
	 	 	14	 
	2.4.1. Interest Rates
	 	 	14	 
	2.4.2. Interest Payment Dates; Interest Reserve Account
	 	 	14	 
	2.4.3. Setting and Notice of LIBOR Rates
	 	 	15	 
	2.4.4. Computation of Interest
	 	 	15	 
	 
	 	 	 	 
	2.5. Fees
	 	 	16	 
	2.5.1. Fourth Third’s Fees
	 	 	16	 
	 
	 	 	 	 
	2.6. Prepayment
	 	 	16	 
	2.6.1. Voluntary Prepayment
	 	 	16	 
	2.6.2. Mandatory Prepayment
	 	 	16	 
	2.6.3. All Prepayments
	 	 	16	 
	 
	 	 	 	 
	2.7. Repayment
	 	 	16	 
	 
	2.8. Payment
	 	 	16	 
	2.8.1. Making of Payments
	 	 	16	 
	2.8.2. Application of Payments and Proceeds
	 	 	17	 
	2.8.3. Payment Dates
	 	 	17	 
	2.8.4. Set-off
	 	 	18	 
	2.8.5. Proration of Payments
	 	 	18	 
	 
	 	 	 	 
	Section 3. Yield Protection
	 	 	18	 
	 
	 	 	 	 
	3.1. Taxes
	 	 	18	 
	 
	 	 	 	 
	3.2. Increased Cost
	 	 	19	 
	 
	 	 	 	 
	3.3. Funding Losses
	 	 	20	 
	 
	 	 	 	 
	3.4. Manner of Funding; Alternate Funding Offices
	 	 	21	 
	 
	 	 	 	 
	3.5. Mitigation of Circumstances; Replacement of Lenders
	 	 	21	 

i

 

	 	 	 	 	 
	 	 	Page
	3.6. Conclusiveness of Statements; Survival
	 	 	22	 
	 
	 	 	 	 
	Section 4. Conditions Precedent
	 	 	22	 
	 
	 	 	 	 
	4.1. Credit Extension
	 	 	22	 
	4.1.1. Omitted
	 	 	22	 
	4.1.2. Earth LNG Credit Agreement
	 	 	22	 
	4.1.3. Interest and Fees
	 	 	22	 
	4.1.4. Delivery of Loan Documents
	 	 	22	 
	4.1.5. Representations and Warranties
	 	 	25	 
	4.1.6. No Default
	 	 	25	 
	4.1.7. Diligence
	 	 	25	 
	4.1.8. No Material Adverse Change
	 	 	25	 
	4.1.9. Reservation of Shares
	 	 	25	 
	 
	 	 	 	 
	Section 5. Representations and Warranties
	 	 	26	 
	 
	 	 	 	 
	5.1. Organization
	 	 	26	 
	 
	 	 	 	 
	5.2. Authorization; No Conflict
	 	 	26	 
	 
	 	 	 	 
	5.3. Validity; Binding Nature
	 	 	26	 
	 
	 	 	 	 
	5.4. Financial Condition
	 	 	26	 
	 
	 	 	 	 
	5.5. No Material Adverse Change
	 	 	27	 
	 
	 	 	 	 
	5.6. Litigation
	 	 	27	 
	 
	 	 	 	 
	5.7. Ownership of Properties; Liens
	 	 	27	 
	 
	 	 	 	 
	5.8. Capitalization
	 	 	27	 
	 
	 	 	 	 
	5.9. Pension Plans
	 	 	28	 
	 
	 	 	 	 
	5.10. Compliance with Law; Investment Company Act; Other Regulated Entities
	 	 	28	 
	 
	 	 	 	 
	5.11. Margin Stock
	 	 	28	 
	 
	 	 	 	 
	5.12. Taxes
	 	 	29	 
	 
	 	 	 	 
	5.13. Solvency
	 	 	29	 
	 
	 	 	 	 
	5.14. Environmental Matters
	 	 	29	 
	 
	 	 	 	 
	5.15. Insurance
	 	 	30	 
	 
	 	 	 	 
	5.16. Information
	 	 	30	 
	 
	 	 	 	 
	5.17. Intellectual Property
	 	 	30	 
	 
	 	 	 	 
	5.18. Labor Matters
	 	 	31	 
	 
	 	 	 	 
	5.19. No Default
	 	 	31	 
	 
	 	 	 	 
	5.20. Foreign Assets Control Regulations and Anti-Money Laundering
	 	 	31	 
	5.20.1. OFAC
	 	 	31	 
	5.20.2. Patriot Act
	 	 	31	 

ii

 

	 	 	 	 	 
	 	 	Page
	Section 6. Affirmative Covenants
	 	 	31	 
	 
	 	 	 	 
	6.1. Information
	 	 	31	 
	6.1.1. Annual Report
	 	 	32	 
	6.1.2. Interim Reports
	 	 	32	 
	6.1.3. Compliance Certificate
	 	 	32	 
	6.1.4. Reports to SEC and Shareholders
	 	 	32	 
	6.1.5. Notice of Default; Litigation; ERISA Matters
	 	 	32	 
	6.1.6. Management Report
	 	 	33	 
	6.1.7. Projections
	 	 	33	 
	6.1.8. Other Information
	 	 	34	 
	 
	 	 	 	 
	6.2. Books; Records; Inspections
	 	 	34	 
	 
	 	 	 	 
	6.3. Maintenance of Property; Insurance
	 	 	34	 
	 
	 	 	 	 
	6.4. Compliance with Laws; Payment of Taxes and Liabilities
	 	 	35	 
	 
	 	 	 	 
	6.5. Maintenance of Existence
	 	 	35	 
	 
	 	 	 	 
	6.6. Employee Benefit Plans
	 	 	35	 
	 
	 	 	 	 
	6.7. Environmental Matters
	 	 	36	 
	 
	 	 	 	 
	6.8. Further
Assurances
	 	 	36	 
	 
	 	 	 	 
	6.9. Collateral Access Agreements
	 	 	37	 
	 
	 	 	 	 
	6.10. Board Observation Rights
	 	 	38	 
	 
	 	 	 	 
	6.11. Reservation of Shares
	 	 	38	 
	 
	 	 	 	 
	Section 7. Negative Covenants
	 	 	38	 
	 
	 	 	 	 
	7.1. Debt
	 	 	38	 
	 
	 	 	 	 
	7.2. Liens
	 	 	39	 
	 
	 	 	 	 
	7.3. Subsidiaries
	 	 	41	 
	 
	 	 	 	 
	7.4. Restricted Payments
	 	 	41	 
	 
	 	 	 	 
	7.5. Mergers; Consolidations; Asset Sales
	 	 	41	 
	 
	 	 	 	 
	7.6. Modification of Organizational Documents
	 	 	42	 
	 
	 	 	 	 
	7.7. Use of Proceeds
	 	 	42	 
	 
	 	 	 	 
	7.8. Transactions with Affiliates
	 	 	42	 
	 
	 	 	 	 
	7.9. Inconsistent Agreements
	 	 	43	 
	 
	 	 	 	 
	7.10. Business Activities
	 	 	43	 
	 
	 	 	 	 
	7.11. Investments
	 	 	43	 
	 
	 	 	 	 
	7.12. Omitted
	 	 	44	 
	 
	 	 	 	 
	7.13. Fiscal Year
	 	 	44	 
	 
	 	 	 	 
	7.14. Financial Covenants
	 	 	44	 

iii

 

	 	 	 	 	 
	 	 	Page
	7.14.1. Fixed Charge Coverage Ratio
	 	 	44	 
	7.14.2. EBITDA
	 	 	44	 
	 
	 	 	 	 
	7.15. Deposit Accounts and Securities Accounts
	 	 	44	 
	 
	 	 	 	 
	7.16. Sale-Leasebacks
	 	 	45	 
	 
	 	 	 	 
	7.17. Hazardous Substances
	 	 	45	 
	 
	 	 	 	 
	Section 8. Events of Default; Remedies
	 	 	45	 
	 
	 	 	 	 
	8.1 Events of Default
	 	 	45	 
	8.1.1. Non-Payment of Credit
	 	 	45	 
	8.1.2. Default Under Other Debt
	 	 	45	 
	8.1.3. Bankruptcy; Insolvency
	 	 	45	 
	8.1.4. Non-Compliance with Loan Documents
	 	 	46	 
	8.1.5. Representations; Warranties
	 	 	46	 
	8.1.6. Pension Plans
	 	 	46	 
	8.1.7. Judgments
	 	 	46	 
	8.1.8. Invalidity of Collateral Documents
	 	 	47	 
	8.1.9. Invalidity of Intercreditor Provisions
	 	 	47	 
	8.1.10. Change of Control
	 	 	47	 
	 
	 	 	 	 
	8.2. Remedies
	 	 	47	 
	 
	 	 	 	 
	Section 9. Agent
	 	 	48	 
	 
	 	 	 	 
	9.1. Appointment; Authorization
	 	 	48	 
	 
	 	 	 	 
	9.2. Delegation of Duties
	 	 	48	 
	 
	 	 	 	 
	9.3. Limited Liability
	 	 	48	 
	 
	 	 	 	 
	9.4. Reliance
	 	 	48	 
	 
	 	 	 	 
	9.5. Notice of Default
	 	 	49	 
	 
	 	 	 	 
	9.6. Credit Decision
	 	 	49	 
	 
	 	 	 	 
	9.7. Indemnification
	 	 	50	 
	 
	 	 	 	 
	9.8. Agent Individually
	 	 	50	 
	 
	 	 	 	 
	9.9. Successor Agent
	 	 	50	 
	 
	 	 	 	 
	9.10. Collateral Matters
	 	 	51	 
	 
	 	 	 	 
	Section 10. Miscellaneous
	 	 	51	 
	 
	 	 	 	 
	10.1. Waiver; Amendments
	 	 	51	 
	 
	 	 	 	 
	10.2. Notices
	 	 	52	 
	 
	 	 	 	 
	10.3. Computations
	 	 	52	 
	 
	 	 	 	 
	10.4. Costs; Expenses
	 	 	52	 
	 
	 	 	 	 
	10.5. Indemnification by Borrower
	 	 	53	 

iv

 

	 	 	 	 	 
	 	 	Page
	10.6. Marshaling; Payments Set Aside
	 	 	53	 
	 
	 	 	 	 
	10.7. Nonliability of Lenders
	 	 	54	 
	 
	 	 	 	 
	10.8. Assignments; Participations
	 	 	54	 
	10.8.1. Assignments
	 	 	54	 
	10.8.2. Participations
	 	 	55	 
	 
	 	 	 	 
	10.9. Confidentiality
	 	 	56	 
	 
	 	 	 	 
	10.10. Captions
	 	 	56	 
	 
	 	 	 	 
	10.11. Nature of Remedies
	 	 	57	 
	 
	 	 	 	 
	10.12. Counterparts
	 	 	57	 
	 
	 	 	 	 
	10.13. Severability
	 	 	57	 
	 
	 	 	 	 
	10.14. Entire Agreement
	 	 	57	 
	 
	 	 	 	 
	10.15. Successors; Assigns
	 	 	57	 
	 
	 	 	 	 
	10.16. Governing Law
	 	 	57	 
	 
	 	 	 	 
	10.17. Forum Selection; Consent to Jurisdiction
	 	 	58	 
	 
	 	 	 	 
	10.18. Waiver of Jury Trial
	 	 	58	 

v

 

Annexes

Annex I Commitments and Pro Rata Shares

Annex II Addresses

Exhibits

Exhibit A Form of Assignment Agreement

Exhibit B Form of Compliance Certificate

Exhibit C Form of Note

Exhibit D Form of Warrant

Exhibit E Form of Warrant Purchase Agreement

Exhibit F Form of Durant Intercreditor Agreement

Exhibit G Form of Amendment to Earth LNG Credit Agreement

Schedules

Schedule 5.6 Litigation

Schedule 5.8 Capitalization

Schedule 5.12 Taxes

Schedule 5.14 Environmental Matters

Schedule 5.15 Insurance

Schedule 5.18 Labor Matters

Schedule 7.1 Existing Debt

Schedule 7.2 Existing Liens

Schedule 7.11 Existing Investments

Schedule 7.15 Bank Accounts

vi

 

CREDIT AGREEMENT

     Credit Agreement dated as of March 23, 2007 (as amended, restated or otherwise modified from
time to time, this “Agreement”) among DURANT BIOFUELS, LLC, an Oklahoma limited liability
company (“Borrower”), the other Loan Parties named herein, the financial institutions
party hereto from time to time (“Lenders”) and Fourth Third LLC, a Delaware limited
liability company (in its individual capacity, “Fourth Third”), as Sole Lead Arranger and
Agent for all Lenders.

     In consideration of the mutual agreements herein contained, the parties hereto agree as
follows:

Section 1. Definitions; Interpretation.

          1.1.
Definitions.

     When used herein the following terms shall have the following meanings:

     Acceleration Event means the occurrence of any of the following: (i) an Event of
Default under Section 8.1.3; (ii) an Event of Default under Section 8.1.1 and the
termination of the Commitments pursuant to Section 8.2; or (iii) any other Event of
Default under Section 8.1 and the election by the Required Lenders to declare the
Obligations to be due and payable pursuant to Section 8.2.

     Acquisition means any transaction or series of related transactions for the purpose of
or resulting, directly or indirectly, in (a) the acquisition of all or a substantial portion of the
assets of a Person, or of all or a substantial portion of any business or division of a Person, (b)
the acquisition of in excess of 50% of the capital stock, partnership interests, membership
interests or equity of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a
merger or consolidation or any other combination with another Person (other than a Person that is
already a Subsidiary).

     Adjusted Working Capital means the remainder of (a) the consolidated current assets
of Borrower and its Subsidiaries minus the amount of cash and cash equivalents included in such
consolidated current assets, minus (b) the consolidated current liabilities of Borrower and its
Subsidiaries minus the amount of consolidated short-term Debt (including current maturities of
long-term Debt) of Borrower and its Subsidiaries included in such consolidated current
liabilities.

     Affiliate of any Person means (a) any other Person which, directly or indirectly,
controls or is controlled by or is under common control with such Person, (b) any officer or
director of such Person and (c) with respect to any Lender, any entity administered or managed by
such Lender or an Affiliate or investment advisor thereof which is engaged in making, purchasing,
holding or otherwise investing in commercial loans. A Person shall be deemed to be “controlled by”
any other Person if such Person possesses, directly or indirectly, power to vote 10% or more of
the securities (on a fully diluted basis) having ordinary voting power for the election of
directors or managers or power to direct or cause the direction of the management and policies of

1

 

such Person whether by contract or otherwise. Unless expressly stated otherwise herein, neither
Agent nor any Lender shall be deemed an Affiliate of any Loan Party.

     Agent means Fourth Third LLC in its capacity as agent for all Lenders hereunder and
any successor thereto in such capacity.

     Agreement has the meaning set forth in the Preamble.

     Applicable
Margin means 10.00% per annum.

     Approved Fund means (a) any fund, trust or similar entity that invests in commercial
loans in the ordinary course of business and is advised or managed by (i) a Lender, (ii) an
Affiliate of a Lender, (iii) the same investment advisor that manages a Lender or (iv) an
Affiliate of an investment advisor that manages a Lender or (b) any finance company, insurance
company or other financial institution which temporarily warehouses loans for any Lender or any
Person described in clause (a) above.

     Arizona LNG means Arizona LNG, L.L.C., a Nevada limited liability company.

     Assignee has the meaning set forth in Section 10.8.1.

     Assignment Agreement means an agreement substantially in the form of Exhibit A.

     Board of Directors has the meaning ascribed to it in
Section 6.10.

     Borrower has the meaning set forth in the Preamble.

     Business Day means any day on which commercial banks are open for commercial banking
business in San Francisco, California and New York, New York, and on which dealings are carried on
in the London interbank eurodollar market.

     Calculation Date means each of the Closing Date and the 15th day of each calendar
month thereafter.

     Capital Expenditures means all expenditures which, in accordance with GAAP, would be
required to be capitalized and shown on the consolidated balance sheet of Borrower, but excluding
expenditures made in connection with the replacement, substitution or restoration of assets to the
extent financed (a) from insurance proceeds (or other similar recoveries) paid on account of the
loss of or damage to the assets being replaced or restored, (b) with cash awards of compensation
arising from the taking by eminent domain or condemnation of the assets being replaced, or (c) with
cash proceeds of Dispositions that are reinvested in accordance with this Agreement.

     Capital Lease means, with respect to any Person, any lease of (or other agreement
conveying the right to use) any real or personal property by such Person that, in conformity with
GAAP, is accounted for as a capital lease on the balance sheet of such Person.

2

 

     Cash Equivalent investment means, at any time, (a) any evidence of Debt, maturing not
more than one year after such time, issued or guaranteed by the United States Government or any
agency thereof, (b) commercial paper, or corporate demand notes, in each case (unless issued by a
Lender or its holding company) rated at least A-l by Standard & Poor’s Ratings Group or P-l by
Moody’s Investors Service, Inc., (c) any certificate of deposit (or time deposit represented by a
certificate of deposit) or banker’s acceptance maturing not more than one year after such time, or
any overnight Federal Funds transaction that is issued or sold by any Lender (or by a commercial
banking institution that is a member of the Federal Reserve System and has a combined capital and
surplus and undivided profits of not less than $500,000,000), (d) any repurchase agreement entered
into with any Lender (or commercial banking institution of the nature referred to in clause (c)
above) which (i) is secured by a fully perfected security interest in any obligation of the type
described in any of clauses (a) through (c) above and (ii) has a market value at the time such
repurchase agreement is entered into of not less than 100% of the repurchase obligation of such
Lender (or other commercial banking institution) thereunder, (e) money market accounts or mutual
funds which invest predominantly in assets satisfying the foregoing
requirements and (f) other
short term liquid investments approved in writing by Agent.

     Closing Date means the date on which the conditions set forth in Section 4.1
have been satisfied or waived by the Lenders.

     Collateral means all property and interests in property and proceeds thereof now
owned or hereafter acquired by any Loan Party and any other Person who has granted a Lien to the
Agent, in or upon which a Lien now or hereafter exists in favor of any Lender or the Agent for the
benefit of the Agent and Lenders, whether under this Agreement or under any other
documents executed by any such Persons and delivered to the Agent; provided,
however, that with respect to Parent, the term “Collateral” includes only (i) all
membership or ownership interests in Borrower and all rights of Parent in, to and under Borrower’s
limited liability company operating agreement, now owned or hereafter acquired by Parent, (ii) all
capital stock of Earth LNG now owned or hereafter acquired by Parent, and (iii) all proceeds and
products of any and all of the property listed in clauses (i) and (ii) and all collateral security
and guarantees given by any Person with respect to any of such property, and excludes all other
property or proceeds thereof now owned or hereafter acquired by Parent.

     Collateral Access Agreement means an agreement in form and substance reasonably
satisfactory to Agent pursuant to which a mortgagee or lessor of real property on which Collateral
is stored or otherwise located, or a warehouseman, processor or other bailee of Inventory or other
property owned by any Loan Party, acknowledges the Liens of Agent and waives (or, if approved by
Agent, subordinates) any Liens held by such Person on such property, and, in the case of any such
agreement with a mortgagee or lessor, permits Agent reasonable access to and use of such real
property during the continuance of an Event of Default to assemble, complete and sell any
Collateral stored or otherwise located thereon.

     Collateral Documents means, collectively, the Guarantee and Collateral Agreement,
each Mortgage, and each other agreement or instrument pursuant to or in connection with which any
Loan Party or any other Person grants a security interest in any Collateral to Agent for the
benefit of Lenders, each as amended, restated or otherwise modified from time to time.

3

 

     Commitment means, as to any Lender, such Lender’s Pro Rata Share of the Loan
Commitment.

     Compliance Certificate means a certificate substantially in the form of Exhibit B.

     Computation Period means each period of one Fiscal Quarter ending on March 31,
2007, two consecutive Fiscal Quarters ending on June 30, 2007, three consecutive Fiscal Quarters
ending on September 30, 2007, and four consecutive Fiscal Quarters ending on the last day of a
Fiscal Quarter thereafter.

     Consolidated Net Income means, with respect to Borrower and its Subsidiaries for any
period, the consolidated net income (or loss) of Borrower and its Subsidiaries for such period,
excluding (i) consolidated net income of any Person for any period prior to such Person becoming a
Subsidiary, (ii) any gains or losses from Dispositions, (iii) any extraordinary gains or
extraordinary losses, (iv) any net income of any Subsidiary to the extent that such Subsidiary is
unable, by virtue of any legal or contractual prohibition, from distributing such net income to
the Borrower, and (iv) any gains or losses from discontinued operations.

     Contingent Obligation means any agreement, undertaking or arrangement by which any
Person guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or
indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to or
otherwise to invest in a debtor, or otherwise to assure a creditor against loss) any indebtedness,
obligation or other liability of any other Person (other than by endorsements of instruments in the
course of collection), or guarantees the payment of dividends or other distributions upon the
shares of any other Person. The amount of any Person’s obligation in respect of any Contingent
Obligation shall (subject to any limitation set forth therein) be deemed to be the principal amount
of the debt, obligation or other liability supported thereby.

     Control Agreement means a tri-party deposit account, securities account or
commodities account Control Agreements by and among the applicable Loan Party, Agent and the
depository, securities intermediary or commodities intermediary, and each in form and substance
reasonably satisfactory in all respects to Agent and in any event providing to Agent “control” of
such deposit account, securities or commodities account within the meaning of Articles 8 and 9 of
the
UCC.

     Controlled Group means all members of a controlled group of corporations and all
members of a controlled group of trades or businesses (whether or not incorporated) under common
control which, together with a Loan Party, are treated as a single employer under Section
414 of the IRC or Section 4001 of ERISA.

     Debt of any Person means, without duplication, (a) all indebtedness of such Person
for borrowed money, (b) all indebtedness evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person as lessee under Capital Leases which have been or
should be recorded as liabilities on a balance sheet of such Person in accordance with GAAP, (d)
all obligations of such Person to pay the deferred purchase price of property or services
(excluding trade accounts payable in the ordinary course of business), (e) all indebtedness
secured by a Lien on the property of such Person, whether or not such indebtedness shall have

4

 

been assumed by such Person (with the amount thereof being measured as the fair market value of
such property), (f) all obligations, contingent or otherwise, with respect to letters of credit
(whether or not drawn), banker’s acceptances and surety bonds issued for the account of such
Person, (g) all Hedging Obligations of such Person, (h) all Contingent Obligations of such Person,
(i) all non-compete payment obligations and earn-out and similar obligations, (j) all obligations
of such Person in respect of capital stock issued by such Person, to the extent that such Person is
obligated to redeem, retire or repurchase such capital stock or set apart any funds therefor, on or
prior to the date one year after the Maturity Date, (k) all indebtedness of the types listed in (a)
through (j) or (l) of any partnership of which such Person is a general partner and (k) all
obligations of such Person under any synthetic lease transaction, where such obligations are
considered borrowed money indebtedness for tax purposes but the transaction is classified as an
operating lease in accordance with GAAP.

     Default means any event that, if it continues uncured, will, with the lapse of time
or the giving of notice or both, constitute an Event of Default.

     Default Rate has the meaning set forth in Section 2.4.1.

     Disposition means, as to any asset or right of any Loan Party, (a) any sale, lease,
assignment or other transfer (other than to Borrower or any of its Wholly-Owned Domestic
Subsidiaries), (b) any loss, destruction or damage thereof or (c) any condemnation, confiscation,
requisition, seizure or taking thereof, excluding (i) Dispositions in any Fiscal Year, the Net
Cash Proceeds of which do not in the aggregate exceed $250,000, or in the case of any Disposition
described in clause (b) above, $150,000, (ii) the sale or other transfer of inventory in the
ordinary course of business and (iii) any transfers of cash.

     Dollar and $ mean lawful money of the United States of America.

     Domestic Loan Party Subsidiary means Borrower, Earth LNG and each Domestic Subsidiary
of Borrower or Earth LNG.

     Domestic Subsidiary means any Subsidiary that is incorporated or organized under the
laws of a State within the United States of America or the District of Columbia.

     Durant Guaranty means the Guaranty, dated as of February 28, 2007, by the Borrower in
favor of Jack B. Kelley, Inc., of certain Debt of Parent and Applied LNG Technologies USA, L.L.C.,
as amended, restated or otherwise modified solely as permitted under the Durant Intercreditor
Agreement.

     Durant Intercreditor Agreement means the Intercreditor Agreement among Agent, the
Junior Secured Parties named therein and Borrower, substantially in the form of Exhibit F
hereto, as such agreement may be amended, restated or otherwise modified from time to time.

     Durant Lien Expenses means, at any time, the amount of the mechanics liens at the
Durant, Oklahoma facility of Borrower listed on Schedule 7.2 as of the Closing Date, plus
interest accrued thereto to such time, plus reasonable expenses incurred by Parent or Borrower in
connection therewith through such time.

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     Earth LNG means Earth LNG, Inc., a Texas corporation.

     Earth LNG Credit Agreement means the Credit Agreement, dated as of February 28, 2007,
among Earth LNG, the loan parties named therein and Agent, as amended, restated or otherwise
modified from time to time.

     Earth LNG Obligations means the Debt of Earth LNG arising under the Earth LNG Credit
Agreement and the promissory note(s) of Earth LNG delivered in connection therewith.

     EBITDA means, for any period, Consolidated Net Income for such period plus, to the
extent deducted in determining such Consolidated Net Income for such period, (i) Interest Expense,
(ii) income tax expense, (iii) depreciation and amortization, (iv) transaction expenses incurred in
connection with the financing contemplated by this Agreement, and (v) Restricted Payments paid
pursuant to Section 7.4.

     Environmental Claims means all claims, however asserted, by any governmental,
regulatory or judicial authority or other Person alleging potential liability or responsibility
under or for violation of any Environmental Law, or for release or injury to the environment or
any Person or property or natural resources.

     Environmental Laws means all present or future federal, state or local laws,
statutes, common law duties, rules, regulations, ordinances and codes, including all amendments,
together with all administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case relating to any matter
arising out of or relating to health and safety, or pollution or protection of the environment,
natural resources or workplace, including any of the foregoing relating to the presence, use,
production, recycling, reclamation, generation, handling, transport, treatment, storage, disposal,
distribution, discharge, release, emission, control, cleanup or investigation or management of any
Hazardous Substance.

     ERISA means the Employee Retirement Income Security Act of 1974, as amended.

     Event of Default means any of the events described in Section 8.1.

     Excluded Taxes has the meaning set forth in Section 3.1(a).

     Executive Order 13224 has the meaning set forth in Section 5.21.1.

     Exercisable Shares has the meaning set forth in Section 6.11 .

     Fee Letter means, that certain letter agreement dated as of even date herewith
between Agent and Borrower, as amended, restated or otherwise modified from time to time.

     Fiscal Quarter means a fiscal quarter of a Fiscal Year.

     Fiscal Year means the fiscal year of Borrower and its Subsidiaries, which period
shall be the 12-month period ending on December 31 of each year.

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     Fixed Charge Coverage Ratio means, for any Computation Period, the ratio of (a) the
total for such Computation Period of EBITDA minus all Capital Expenditures to (b) the sum for such
Computation Period of (i) Interest Expense of Borrower and its Subsidiaries accrued during such
period and payable in cash, plus (ii) required payments of principal of Debt (including the Loan),
(iii) income tax expense, plus (iv) dividends paid by Apollo Leasing, Inc. during such period
pursuant to Section 7.4(iii); provided, that for the first three Computation
Periods, the actual amounts referred to in clauses (a) and (b) for such Computation Periods shall
be multiplied by 4, 2 and 4/3, respectively.

     Foreign Lender means any Lender that is not a United States person under and as
defined in Section 7701(a)(30) of the IRC.

     Foreign Subsidiary means any Subsidiary that is not a Domestic Subsidiary.

     Fourth Third has the meaning set forth in the Preamble.

     FRB means the Board of Governors of the Federal Reserve System or any successor
thereto.

     GAAP means generally accepted accounting principles in effect in the United States of
America set forth from time to time in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements and pronouncements
of the Financial Accounting Standards Board (or agencies with similar functions of comparable
stature and authority within the U.S. accounting profession), which are applicable to the
circumstances as of the date of determination.

     Governmental Authority means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
entity exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government, and any corporation or other entity owned or controlled, through stock
or capital ownership or otherwise, by any of the foregoing.

     Guarantee and Collateral Agreement means the Amended and Restated Guarantee and
Collateral Agreement dated as of the Closing Date by each Loan Party and other grantor or pledgor
signatory thereto in favor of Agent, as amended, restated or otherwise modified from time to time.

     Hazardous Substances means any waste, chemical, substance, or material listed,
defined, classified, or regulated as a hazardous waste, hazardous substance, pollutant,
contaminant, toxic substance, or hazardous, dangerous or radioactive material, chemical or waste
or otherwise regulated by any Environmental Law, including, without limitation, any petroleum or
any derivative, waste, or byproduct thereof, radon, asbestos, and polychlorinated biphenyls.

     Hedging Obligation means, with respect to any Person, any liability of such Person
under any interest rate, currency or commodity swap agreement, cap agreement or collar agreement,
and any other agreement or arrangement designed to protect a Person against fluctuations in
interest rates, currency exchange rates or commodity prices. The amount of any Person’s

7

 

obligation in respect of any Hedging Obligation shall be deemed to be the incremental obligation
that would be reflected in the financial statements of such Person in accordance with GAAP.

     Indemnified Liabilities has the meaning set forth in Section 10.5.

     Intercreditor Agreement means an intercreditor agreement, if any, entered into after
the Closing Date by Agent, the holder of Senior Debt (or a representative thereof), in form and
substance satisfactory to Agent.

     Interest Expense means for any period the consolidated interest expense of Borrower
and its Subsidiaries for such period (including all imputed interest on Capital Leases).

     Interest Reserve Account has the meaning set forth in Section 2.4.2.

     Interest Reserve Period has the meaning set forth in Section 2.4.2.

     Inventory means all the “inventory” (as such term is defined in the UCC) of the
Borrower and its Subsidiaries, including, but not limited to, all merchandise, raw materials,
parts, supplies, work-in-process and finished goods intended for sale, together with all the
containers, packing, packaging, shipping and similar materials related thereto, and including such
inventory as is temporarily out of the Borrower’s or such Subsidiary’s custody or possession,
including inventory on the premises of others and items in transit.

     Investment means, with respect to any Person, (a) the purchase of any debt or equity
security of any other Person, (b) the making of any loan or advance to any other Person, (c)
becoming obligated with respect to a Contingent Obligation in respect of obligations of any other
Person (other than travel and similar advances to employees in the ordinary course of business) or
(d) the making of an Acquisition.

     IRC means the Internal Revenue Code of 1986, as amended.

     Kelley Security Agreement means the security agreement, dated as of February 28,
2007, among the “Junior Secured Parties” (as defined in the Durant Intercreditor Agreement), and
Borrower, as amended, restated or otherwise modified solely as permitted under the Durant
Intercreditor Agreement.

     Last Pre Closing Audit Date means December 31, 2005.

     Legal Costs means, with respect to any Person, (a) all reasonable fees and charges of
any counsel, accountants, auditors, appraisers, consultants and other professionals to such
Person, (b) the reasonable allocable cost of internal legal services of such Person and all
reasonable disbursements of such internal counsel and (c) all court costs and similar legal
expenses.

     Lender Party has the meaning set forth in Section 10.5.

     Lenders has the meaning set forth in the Preamble.

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     LIBOR Rate means, as of any Calculation Date, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) equal to (i) the offered rate for deposits in Dollars for
the period of one month commencing on such Calculation Date and for the amount of the Loan, that
appears on Dow Jones Market Service (formerly known as the Telerate Service) at 11:00 a.m. London
time (or, if not so appearing, as published in the “Money Rates” section of The Wall Street
Journal or another national publication selected by Agent) on such Calculation Date, divided by
(ii) the sum of one minus the daily average during such period of one month of the aggregate
maximum reserve requirement (expressed as a decimal) then imposed under Regulation D of the FRB for
“Eurocurrency Liabilities” (as defined therein); provided, however, that in no event shall the
LIBOR Rate be a rate equal to less than 5.00% per annum.

     Lien means, with respect to any Person, any interest granted by such Person in any
real or personal property, asset or other right owned or being purchased or acquired by such
Person which secures payment or performance of any obligation and shall include any mortgage,
lien, encumbrance, charge or other security interest of any kind, whether arising by contract, as
a matter of law, by judicial process or otherwise.

     Loan Commitment means a commitment to make a loan pursuant to Section 2.1 on
the Closing Date in the aggregate principal amount for all Lenders of $9,000,000. The Loan
Commitment shall terminate upon the making of the Loan.

     Loan Documents means this Agreement, the Notes, the Collateral Documents, the Fee
Letter, the Warrant, the Warrant Purchase Agreement, the Durant Intercreditor Agreement, the
Intercreditor Agreement, and all documents, instruments and agreements delivered in connection
with the foregoing, all as amended, restated or otherwise modified from time to time.

     Loan Party means Parent, Borrower and each Subsidiary of Borrower, and Earth LNG and
each Subsidiary of Earth LNG.

     Loan Party Subsidiary means Borrower, Earth LNG and each Subsidiary of Borrower or
Earth LNG.

     Loan means the loan made pursuant to Section 2.1 or, at any time, the
aggregate unpaid amount of such loan, as applicable.

     Margin Stock means any “margin stock” as defined in Regulation T, U or X of the FRB.

     Material Adverse Effect means (a) a material adverse change in, or a material adverse
effect upon, the operations, assets, business, prospects, properties or condition (financial or
otherwise) of Loan Parties taken as a whole, (b) a material impairment of the ability of any Loan
Party to perform in any material respect any of its Obligations under any Loan Document or (c) a
material adverse effect upon any substantial portion of the Collateral under the Collateral
Documents or upon the legality, validity, binding effect or enforceability against any Loan Party
of any Loan Document.

     Maturity Date means March 23, 2010.

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     Mortgage means a mortgage, deed of trust, leasehold mortgage or similar instrument
granting Agent a Lien on a real property interest of any Loan Party, each as amended, restated or
otherwise modified from time to time.

     Multiemployer Pension Plan means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which Borrower or any member of the Controlled Group may have any
liability.

     Net Cash Proceeds means:

          (a) with respect to any Disposition, the aggregate cash proceeds (including cash
proceeds received pursuant to policies of insurance and by way of deferred payment of
principal pursuant to a note, installment receivable or otherwise, but only as and when
received) received by any Loan Party pursuant to such Disposition net of (i) the reasonable
direct costs relating to such Disposition (including sales commissions and legal, accounting
and investment banking fees, commissions and expenses), (ii) any portion of such proceeds
deposited in an escrow account pursuant to the documentation relating to such Disposition
(provided that such amounts shall be treated as Net Cash Proceeds upon their release from
such escrow account to the applicable Loan Party), (iii) taxes paid or reasonably estimated
by Borrower to be payable as a result thereof (after taking into account any available tax
credits or deductions and any tax sharing arrangements), (iv) amounts required to be applied
to the repayment of any Debt secured by a Lien (permitted hereunder) prior to the Lien of
Agent on the asset subject to such Disposition, and (v) so long as no Event of Default
exists (or if an Event of Default exists, only with the prior written consent of Required
Lenders) (A) with respect to any Disposition described in clause (a) of the definition
thereof, all money actually applied within 180 days, or within 360 days pursuant to a
binding agreement executed within 180 days, to replace such assets with assets performing
the same or similar functions, and (B) with respect to any Disposition described in clause
(b) or (c) of the definition thereof, all money actually applied within 180 days, or within
360 days pursuant to a binding agreement executed within 180 days, to repair, replace or
reconstruct damaged property or property affected by loss, destruction, damage,
condemnation, confiscation, requisition, seizure or taking; and

          (b) with respect to any issuance of equity securities, the aggregate cash proceeds
received by Parent, Borrower or any Subsidiary of Borrower or of Earth LNG pursuant to such
issuance, net of the reasonable direct costs relating to such issuance (including
reasonable sales and underwriter’s commission).

     Non-Excluded Taxes has the meaning set forth in Section 3.1(a).

     Note
means a promissory note substantially in the form of Exhibit C, as the
same may be replaced, substituted, amended, restated or otherwise modified from time to time.

     Obligations means all liabilities, indebtedness and obligations (monetary (including
interest accrued at the rate provided in the applicable Loan Document after the commencement of a
bankruptcy proceeding whether or not a claim for such interest is allowed) or otherwise) of

10

 

any Loan Party under this Agreement, any other Loan Document, any Collateral Document or any other
document or instrument executed in connection herewith or therewith and all Hedging Obligations
permitted hereunder which are owed to any Lender or its Affiliate, in each case howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due.

     OFAC
has the meaning set forth in Section 6.4(a).

     Paid in Full means, with respect to any Obligations, the payment in full in cash and
performance of all such Obligations.

     Parent means Earth Biofuels, Inc., a Delaware corporation.

     Participant has the meaning set forth in Section 10.8.2.

     PBGC means the Pension Benefit Guaranty Corporation and any entity succeeding to any
or all of its functions under ERISA.

     Pension Plan means a “pension plan”, as such term is defined in Section 3(2) of
ERISA, which is subject to Title IV of ERISA (other than a Multiemployer Pension Plan), and to
which Borrower or any member of the Controlled Group may have any liability, including any
liability by reason of having been a substantial employer within the meaning of Section 4063 of
ERISA at any time during the preceding five years, or by reason of being deemed to be a
contributing sponsor under Section 4069 of ERISA.

     Person means any natural person, corporation, partnership, trust, limited liability
company, association, Governmental Authority or unit, or any other entity, whether acting in an
individual, fiduciary or other capacity.

     Prepayment Amount means (i) with respect to any prepayment made on or before the
first anniversary of the Closing Date, an amount equal to 3% of the amount prepaid, (ii) with
respect to any prepayment of the Loan made after the first anniversary of the Closing Date but on
or before the second anniversary of the Closing Date, an amount equal to 1.5% of the amount
prepaid and (iii) with respect to any prepayment of the Loan made after the second anniversary of
the Closing Date, an amount equal to 0% of the amount prepaid.

     Pro Rata Share means, with respect to any Lender, the applicable percentage (as
adjusted from time to time in accordance with the terms hereof) specified opposite such Lender’s
name on Annex I (or in such Lender’s Assignment Agreement) which corresponds to the Loan
Commitment, which percentage shall be with respect to the Loan if the Loan Commitment has
terminated.

     Replacement Lender has the meaning set forth in Section 3.5(b).

     Required Lenders means Lenders having Pro Rata Shares the aggregate Dollar equivalent
amount of which equals or exceeds more than 50% of the outstanding Loan, collectively.

     Securitization has the meaning set forth in Section 10.9.

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     Senior Debt shall mean indebtedness that is incurred by the Borrower under a
revolving credit facility that has been approved by Agent and that is subject to, and the Liens,
if any, securing which are subject to, the Intercreditor Agreement.

     Senior Debt Documents means the “Revolving Credit Documents” as defined in
the Intercreditor Agreement.

     Subsidiary means, with respect to any Person, a corporation, partnership, limited
liability company or other entity of which such Person owns, directly or indirectly, such number of
outstanding shares or other equity interests as to have more than 50% of the ordinary voting power
for the election of directors or other managers of such corporation, partnership, limited liability
company or other entity. Unless the context otherwise requires, each reference to Subsidiaries
herein shall be a reference to Subsidiaries of Borrower.

     Tax
Returns has the meaning set forth in Section 5.12.

     Titled Vehicle means a vehicle owned by a Loan Party for which a certificate of title
has been issued by any jurisdiction pursuant to a statute described in section 9-311 (a)(2) or
9-311(a)(3) of the UCC, a security interest in which against such Loan Party can be perfected only
by notation on the certificate of title.

     UCC means the Uniform Commercial Code as in effect in from time to time in the State
of New York.

     Warrant means the warrant to purchase shares of stock of Parent to be issued to
Fourth Third, substantially in the form of Exhibit D hereto, as the same may be amended,
restated, modified or otherwise supplemented from time to time.

     Warrant Purchase Agreement means the warrant purchase and registration rights
agreement, between Parent and Fourth Third, substantially in the form of Exhibit E
attached hereto.

     Warrant Stock has the meaning ascribed to such term in the Warrant.

     Wholly-Owned Domestic Subsidiary means any Wholly-Owned Subsidiary that is a Domestic
Subsidiary.

     Wholly-Owned Subsidiary means, as to any Subsidiary, all of the equity interests of
which (except directors’ qualifying shares) are at the time directly or indirectly owned by
Borrower and/or another Wholly-Owned Subsidiary of Borrower.

          1.2. Interpretation.

     In the case of this Agreement and each other Loan Document, (a) the meanings of defined terms
are equally applicable to the singular and plural forms of the defined terms; (b) Annex, Exhibit,
Schedule and Section references are to such Loan Document unless otherwise specified; (c) the term
“including” is not limiting and means “including but not limited to”; (d) in the computation of
periods of time from a specified date to a later specified date, the word

12

 

“from” means “from and including”; the words “to” and “until” each mean “to but excluding”, and the
word “through” means “to and including”; (e) unless otherwise expressly provided in such Loan
Document, (i) references to agreements and other contractual instruments shall be deemed to include
all subsequent amendments and other modifications thereto, but only to the extent such amendments
and other modifications are not prohibited by the terms of any Loan Document, and (ii) references
to any statute or regulation shall be construed as including all statutory and regulatory
provisions amending, replacing, supplementing or interpreting such statute or regulation; (f) this
Agreement and the other Loan Documents may use several different limitations, tests or measurements
to regulate the same or similar matters, all of which are cumulative and each shall be performed in
accordance with its terms; and (g) this Agreement and the other Loan Documents are the result of
negotiations among and have been reviewed by counsel to Agent, Borrower, Lenders and the other
parties hereto and thereto and are the products of all parties; accordingly, they shall not be
construed against Agent or Lenders merely because of Agent’s or Lenders’ involvement in their
preparation.

Section 2. Credit Facilities.

          2.1.
Commitments.

     On and subject to the terms and conditions of this Agreement, each Lender, severally and for
itself alone, agrees to lend to Borrower on the Closing Date such Lender’s applicable Pro Rata
Share of the Loan Commitment. The Commitments of Lenders to make the Loan shall terminate
concurrently with the making of the Loan. Any portion of the Loan which is repaid or prepaid, in
whole or in part, may not be reborrowed. The proceeds of the Loan will be disbursed to the
Interest Reserve Account until Borrower establishes a deposit account in its name with JPMorgan
Chase Bank, N.A. subject to a Control Agreement. Upon such establishment at JPMorgan Chase Bank,
N.A. subject to a Control Agreement, unless an Event of Default is continuing, Agent shall
transfer the proceeds of the Loan to such JPMorgan Chase Bank, N.A. deposit account.

          2.2. Omitted.

          2.3. Loan Accounting.

          2.3.1. Recordkeeping.

     Agent, on behalf of each Lender, shall record in its records the date and amount of the share
of the Loan made by each Lender and each repayment thereof. The aggregate unpaid principal amount
so recorded shall be rebuttably presumptive evidence of the principal amount of the Loan owing and
unpaid. The failure to so record any such amount or any error in so recording any such amount shall
not, however, limit or otherwise affect the Obligations of Borrower hereunder or under any Note to
repay the principal amount of the Loan hereunder, together with all interest accruing thereon.

          2.3.2. Notes.

     At the request of any Lender, the share of the Loan made by such Lender shall be evidenced by
a Note, with appropriate insertions, payable to the order of such Lender in a face

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principal amount equal to the sum of such Lender’s Pro Rata Share of the Loan Commitment and
payable in such amounts and on such dates as are set forth herein.

          2.4. Interest.

          2.4.1. Interest Rates.

     Borrower promises to pay interest on the unpaid principal amount of the Loan for the period
commencing on March 1, 2007 (as though the Loan was made on that day) until the Loan is Paid in
Full at a rate per annum equal to the sum of the LIBOR Rate as in effect on the Calculation Date
coinciding with (in the case of the Closing Date) or immediately preceding (in the case of any
other Calculation Date), the interest payment date on which such interest is payable plus the
Applicable Margin; provided, that (i) at any time an Event of Default exists, if requested by the
Agent or the Required Lenders, the Applicable Margin corresponding to the Loan shall be increased
by two percentage points per annum (and, in the case of Obligations other than the Loan, such
Obligations shall bear interest at the LIBOR Rate plus the Applicable Margin plus two percentage
points per annum) (any such increased rate, the “Default Rate”), (ii) any such increase may
thereafter be rescinded by Required Lenders, notwithstanding Section 10.1, and (iii) upon
the occurrence of an Event of Default under Section 8.1.1 or 8.1.3, any such
increase described in the foregoing clause (i) shall occur automatically. In no event shall
interest payable by Borrower to Agent and Lenders hereunder exceed the maximum rate permitted under
applicable law, and if any such provision of this Agreement is in contravention of any such law,
such provision shall be deemed modified to limit such interest to the maximum rate permitted under
such law.

          2.4.2. Interest Payment Dates; Interest Reserve Account.

     (a) Accrued interest on the Loan shall be payable in advance (except in arrears for that
portion of March occurring on or before the Closing Date) on the Closing Date (for the period
beginning on March 1, 2007 and ending on March 31, 2007 and thereafter on the first day of each
calendar month (for such calendar month), and, to the extent not paid in advance, upon a
prepayment of the Loan in accordance with Section 2.6 and at maturity, in each case, in
cash and, during the Interest Reserve Period, as provided in Section 2.4.2(b). After
maturity and at any time an Event of Default exists, all accrued interest on the Loan shall be
payable in cash on demand at the rates specified in Section 2.4.1.

     (b) On or prior to the Closing Date, the Borrower shall establish a cash collateral account
with JPMorgan Chase Bank, N.A. in substance and form reasonably acceptable to Agent (subject to
clause (v) below, the “Interest Reserve Account”), over which Agent shall have sole
control and exclusive rights of withdrawal pursuant to a Control Agreement, subject to the
provisions of this Section. Deposits shall be made into the Interest Reserve Account as follows:

     (i) On the Closing Date Borrower shall deposit or cause to be deposited in the Interest
Reserve Account in immediately available funds an amount equal to the interest that will accrue on
the unpaid principal balance of the Loan during the period commencing on April 1, 2007 and ending
on December 31, 2007 (the “Interest Reserve Period”), calculated at a rate per

14

 

annum equal to the sum of the LIBOR Rate as in effect on the Closing Date plus the Applicable
Margin.

     (ii) Omitted.

     (iii) Omitted.

     (iv) Agent shall withdraw available funds on each Interest Payment Date and apply same to the
payment of interest hereunder. In the event that Agent is prevented from withdrawing any amount
from the Interest Reserve Account for any reason or in the event that available funds on deposit in
the Interest Reserve Account are insufficient, Borrower shall nonetheless be required to make the
applicable payment of interest as otherwise required hereunder. Amounts deposited in the Interest
Reserve Account shall be invested by the Agent at the direction of the Borrower, in Investments
permitted by Section 7.11, so long as Agent has a first priority security interest therein
and any such investment can be liquidated so as to pay without penalty all interest that will
become payable during the Interest Reserve Period; provided that the investment of such
amounts shall be controlled solely by the Agent during the continuance of any Event of Default.

     (v) In the event that the Interest Reserve Account is not established at JP Morgan Chase
Bank, N.A. subject to a Control Agreement as of the Closing Date, Borrower authorizes Agent to
withhold from the proceeds of the Loan the amount required to be deposited on the Closing Date in
the Interest Reserve Account at a segregated deposit account of Agent at Deutsche Bank established
for such purpose and such deposit account at Deutsche Bank shall constitute the Interest Reserve
Account until Borrower establishes the Interest Reserve Account at JP Morgan Chase Bank, N.A.
subject to a Control Agreement. Upon such establishment at JP Morgan Chase Bank, N.A. subject to a
Control Agreement, unless an Event of Default is continuing, Agent shall transfer all funds in the
Deutsche Bank Investment Reserve Account to the JP Morgan Chase Bank, N.A. deposit.

          2.4.3. Setting and Notice of LIBOR Rates.

     The applicable LIBOR Rate as of each Calculation Date shall be determined by Agent, and notice
thereof shall be given by Agent promptly to Borrower and each Lender. Each determination of the
applicable LIBOR Rate by Agent shall be conclusive and binding upon the parties hereto, in the
absence of demonstrable error. Agent shall, upon written request of Borrower or any Lender, deliver
to Borrower or such Lender a statement showing the computations used by Agent in determining any
applicable LIBOR Rate hereunder

          2.4.4. Computation of Interest.

     Interest shall be computed for the actual number of days elapsed on the basis of a year of 360
days.

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          2.5. Fees.

          2.5.1. Fourth Third’s Fees.

     Borrower agrees to pay to Fourth Third, for Fourth Third’s account, the fees set forth in the
Fee Letter.

          2.6. Prepayment.

          2.6.1. Voluntary Prepayment.

          Borrower may from time to time at any time, on at least ninety (90) days’ written notice to
Agent (which shall promptly advise each Lender thereof) not later than 12:00 noon New York time on
such day, prepay the Loan in whole or in part without penalty or premium so
long as any such prepayment is on the first day of a calendar month, and is accompanied by all
accrued and unpaid interest on the Loan and payment of the Prepayment Amount. Such notice to Agent
shall specify the date and amount of prepayment. Any such partial prepayment shall be in an amount
greater than or equal to $1,000,000 or a higher integral multiple of $500,000.

          2.6.2. Mandatory Prepayment.

          Borrower shall prepay the Loan until Paid in Full at the following times and in the following
amounts:

          (i) concurrently with the receipt by any Loan Party of any Net Cash Proceeds from any
Disposition, in an amount equal to such Net Cash Proceeds; and

          (ii) concurrently with the receipt by any Loan Party of any Net Cash Proceeds from any
issuance of its equity securities (other than equity securities that are issued to (x) Parent, (y)
management of Parent, or (z) to Persons that as of the date hereof hold equity in Parent), in an
amount equal to such Net Cash Proceeds.

          2.6.3. All Prepayments.

     Any prepayment of the Loan on any day other than the first day of a calendar month shall
include interest on the principal amount being repaid to the extent not paid in advance and
shall be subject to Section 3.3.

          2.7. Repayment.

     The outstanding principal balance of the Loan shall be Paid in Full, for the account of each
Lender according to its Pro Rata Share thereof, on the Maturity Date unless accelerated sooner
pursuant to Section 8.2.

          2.8. Payment.

          2.8.1. Making of Payments.

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     All payments of principal of or interest on the Notes, and of all fees, shall be made by
Borrower to Agent without setoff, recoupment or counterclaim and in immediately available funds at
the deposit account of Agent in New York, New York set forth on Annex II or at such other deposit
account in New York specified by Agent, in any case, not later than 1:00 p.m. New York time on the
date due, and funds received after that hour shall be deemed to have been received by Agent on the
following Business Day. Agent shall promptly remit to each Lender its share of all principal,
interest and fee payments received in collected funds by Agent for the account of such Lender. All
payments under Section 3.2 shall be made by Borrower directly to Lender entitled thereto.

          2.8.2. Application of Payments and Proceeds.

          (a) Except as set forth in Section 2.6.2, and subject to the provisions of
Sections 2.8.2(b) below, each payment by Borrower hereunder shall be applied to such
Obligations as Borrower shall direct by notice to be received by Agent on or before the date of
such payment or, in the absence of such notice, as Agent shall determine in its discretion.
Concurrently with each remittance to any Lender of its share of any such payment, Agent shall
advise such Lender as to the application of such payment.

          (b) If an Event of Default or an Acceleration Event shall have occurred and be continuing,
notwithstanding anything herein or in any other Loan Document to the contrary, Agent shall apply
all or any part of payments in respect of the Obligations and proceeds of Collateral, in each case
as received by Agent, to the payment of the Obligations in the following order:

          (i) FIRST, to the payment of all fees, costs, expenses and indemnities due and owing to
Agent under this Agreement or any other Loan Document, and any other Obligations owing to Agent in
respect of sums advanced by Agent to preserve or protect the Collateral or to preserve or protect
its security interest in the Collateral (whether or not such Obligations are then due and owing to
Agent), until Paid in Full;

          (ii) SECOND, to the payment of all fees, costs, expenses and indemnities due and owing
to Lenders, pro rata based on each Lender’s Pro Rata Share thereof, until Paid in Full;

          (iii) THIRD, to the payment of all accrued and unpaid interest due and owing to Lenders,
pro rata based on each Lender’s Pro Rata Share thereof, until Paid in Full;

          (iv) FOURTH, to the payment of all principal of the Loan due and owing, pro rata based on
each Lender’s Pro Rata Share thereof, until Paid in Full; and

          (v) FIFTH, to the payment of all other Obligations owing to each Lender, pro rata based
on each Lender’s Pro Rata Share thereof, until Paid in Full.

          2.8.3. Payment Dates.

     If any payment of principal of or interest on the Loan, or of any fees, falls due on a day
which is not a Business Day, then such due date shall be extended to the immediately following
Business Day (unless such immediately following Business Day is the first Business Day of a

17

 

calendar month, in which case such due date shall be the immediately preceding Business Day) and,
in the case of principal, additional interest shall accrue and be payable for the period of any
such extension.

          2.8.4. Set-off.

     Borrower agrees that Agent and each Lender and its Affiliates have all rights of set-off and
bankers’ lien provided by applicable law, and in addition thereto, Borrower agrees that at any time
an Event of Default has occurred and is continuing, Agent and each Lender may apply to the payment
of any Obligations of Borrower hereunder, whether or not then due, any and all balances, credits,
deposits, accounts or moneys of Borrower then or thereafter with Agent or such Lender.
Notwithstanding the foregoing, no Lender shall exercise any rights described in the preceding
sentence without the prior written consent of Agent.

          2.8.5. Proration of Payments.

     If any Lender shall obtain any payment or other recovery (whether voluntary, involuntary, by
application of set-off or otherwise, on account of principal of or interest on the Loan, but
excluding (i) any payment of principal or interest made in accordance with the terms of this
Agreement, and (ii) any payment pursuant to Section 3.1, 3.2, 3.5 or
10.8, then such Lender shall purchase from the other Lenders such participations in the
Loan held by them as shall be necessary to cause such purchasing Lender to share the excess
payment or other recovery ratably with each of them; provided that if all or any portion of the
excess payment or other recovery is thereafter recovered from such purchasing Lender, the purchase
shall be rescinded and the purchase price restored to the extent of such recovery.

Section 3. Yield Protection.

          3.1. Taxes.

          (a) Except as otherwise provided in this Section 3.1, all payments of principal and
interest on the Loan and all other amounts payable under any Loan Document shall be made free and
clear of and without deduction for any present or future income, excise, stamp, documentary,
property or franchise taxes and other taxes, fees, duties, levies, withholdings or other charges
of any nature whatsoever imposed by any taxing authority (“Taxes”), excluding (i) taxes
imposed on or measured by any Lender’s net income by the jurisdiction under which such Lender is
organized or conducts business, (ii) any branch profit taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which a Lender is located and
(iii) in the case of any Foreign Lender (other than a Replacement Lender under Section
3.7(b)), any withholding tax that (x) is in effect and would apply to amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this Agreement, except to the
extent of any additional amounts to which such Foreign Lender’s assignor, if any, was entitled, at
the time of such assignment, to receive from the Borrower with respect to any withholding tax
pursuant to this Section 3.1, or (y) would not have been imposed but for Foreign Lender’s
failure (other than as a result of a change in law, rule, regulation or treaty or in the
administration, interpretation or application thereof by any Governmental Authority) to comply
with Section 3.1(c) (collectively, “Excluded Taxes” and all such non-Excluded
Taxes, “Non-

18

 

Excluded Taxes”), If any withholding or deduction from any payment to be made by Borrower
hereunder is required in respect of any Taxes pursuant to any applicable law, rule or regulation,
then Borrower shall: (i) pay directly to the relevant authority the full amount required to be so
withheld or deducted; (ii) within thirty (30) days after the date of any such payment of Taxes,
forward to Agent an official receipt or other documentation satisfactory to Agent evidencing such
payment to such authority; and (iii) in the case of Non-Excluded Taxes, pay to Agent for the
account of Lenders such additional amount or amounts as is necessary to ensure that the net amount
actually received by each Lender will equal the full amount such Lender would have received had no
such withholding or deduction (including deductions applicable to any increase to any amount under
this Section 3.1) been required.

          (b) The Borrower shall reimburse and indemnify, within 30 days after receipt of demand
therefor (with copy to the Agent), Agent and each Lender for all Non-Excluded Taxes (including any
net additional Taxes imposed by any jurisdiction on amounts payable under this Section 3.1)
paid by such Agent or such Lender and any liabilities arising therefrom or with respect thereto
(including any penalty, interest or expense), whether or not such Taxes were correctly or legally
asserted. A certificate of the Agent or such Lender (or of the Agent on behalf of such Lender)
claiming any compensation under this clause (c), setting forth the amounts to be paid thereunder
and delivered to the Borrower with copy to the Agent, shall be conclusive, binding and final for
all purposes, absent manifest error.

          (c) Each Foreign Lender that (i) is a party hereto on the Closing Date or (ii) becomes an
assignee of an interest under this Agreement under Section 10.8.1 after the Closing Date
(unless such Lender was already a Lender hereunder immediately prior to such assignment) shall
execute and deliver to Borrower and Agent one or more (as Borrower or Agent may reasonably
request) properly and duly completed and executed Forms W 8EC1, W 8BEN, W 8IMY (as applicable) or
successor form or other applicable form, certificate or document prescribed by the United States
Internal Revenue Service certifying as to such Lender’s entitlement to an exemption from or
reduction in U.S. withholding taxes with respect to payments to be made to such Foreign Lender
under the Loan Documents. Notwithstanding any other provision of this Section 3.1 to the
contrary, no Lender shall be required to deliver any form, certificate or document pursuant to
this paragraph that it is not legally able to deliver.

          (d) Each Lender that is not a Foreign Lender (other than any such Lender that is may be
treated as an “exempt recipient” under IRC Section 1.6049-4(c)(l)) that (i) is a party hereto on
the Closing Date or (ii) becomes an assignee of an interest under this Agreement under Section
10.8.1 after the Closing Date (unless such Lender was already a Lender hereunder immediately
prior to such assignment) shall execute and deliver to Borrower and Agent one or more (as Borrower
or Agent may reasonably request) properly and duly completed and executed Form W 9 (or any
successor form), certifying as to such Lender’s entitlement to an exemption from U.S. backup
withholding tax with respect to payments to be made to such Foreign Lender under the Loan
Documents. Notwithstanding any other provision of this Section 3.1 to the contrary, no
Lender shall be required to deliver any form, certificate or document pursuant to this paragraph
that it is not legally able to deliver.

          3.2. Increased Cost.

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          (a) If, after the Closing Date, the adoption of, or any change in, any applicable law, rule or
regulation, or any change in the interpretation or administration of any applicable law, rule or
regulation by any Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender with any request or directive
(whether or not having the force of law) of any such authority, central bank or comparable agency:
(i) shall impose, modify or deem applicable any reserve (including any reserve imposed by the FRB,
but excluding any reserve included in the determination of the LIBOR Rate pursuant to Section
2.4), special deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by any Lender; or (ii) shall impose on any Lender any other
condition affecting its Loan, its Note or its obligation to make the Loan; and the result of
anything described in clauses (i) above and (ii) is to increase the cost to (or to impose a cost
on) such Lender of making or maintaining the Loan, or to reduce the amount of any sum received or
receivable by such Lender under this Agreement or under its Note with respect thereto, then upon
demand by such Lender (which demand shall be accompanied by a statement setting forth the basis for
such demand and a calculation of the amount thereof in reasonable detail, a copy of which shall be
furnished to Agent), Borrower shall pay directly to such Lender such additional amount as will
compensate such Lender for such increased cost or such reduction, so long as such amounts have
accrued on or after the day which is 180 days prior to the date on which such Lender first made
demand therefor; provided, that if the event giving rise to such costs or reductions has
retroactive effect, such 180 day period shall be extended to include the period of retroactive
effect.

          (b) If any Lender shall reasonably determine that any change in, or the adoption or phase-in
of, any applicable law, rule or regulation regarding capital adequacy, or any change in the
interpretation or administration thereof by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof, or the compliance by any Lender
or any Person controlling such Lender with any request or directive regarding capital adequacy
(whether or not having the force of law) of any such authority, central bank or comparable agency,
has or would have the effect of reducing the rate of return on such Lender’s or such controlling
Person’s capital as a consequence of such Lender’s Commitments hereunder to a level below that
which such Lender or such controlling Person could have achieved but for such change, adoption,
phase-in or compliance (taking into consideration such Lender’s or such controlling Person’s
policies with respect to capital adequacy) by an amount deemed by such Lender or such controlling
Person to be material, then from time to time, upon demand by such Lender (which demand shall be
accompanied by a statement setting forth the basis for such demand and a calculation of the amount
thereof in reasonable detail, a copy of which shall be furnished to Agent), Borrower shall pay to
such Lender such additional amount as will compensate such Lender or such controlling Person for
such reduction, so long as such amounts have accrued on or after the day which is 180 days prior
to the date on which such Lender first made demand therefor; provided, that if the event giving
rise to such costs or reductions has retroactive effect, such 180 day period shall be extended to
include the period of retroactive effect.

          3.3. Funding Losses.

     Borrower hereby agrees that upon demand by any Lender (which demand shall be accompanied by a
statement setting forth the basis for the amount being claimed, a copy of

20

 

which shall be furnished to Agent), Borrower will indemnify such Lender against any net loss or
expense which such Lender may sustain or incur (including any net loss or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to
fund or maintain the Loan), as reasonably determined by such Lender, as a result of (a) any payment
or prepayment of the Loan of such Lender on a date other than first day of a calendar month or (b)
the failure of Borrower to borrow the Loan on the Closing Date. For the purposes of this
Section 3.3, all determinations shall be made as if such Lender had actually funded and
maintained the Loan during each one month period for the Loan through the purchase of deposits
having a maturity corresponding to such one month period and bearing an interest rate equal to the
LIBOR Rate for such one month period.

          3.4. Manner of Funding; Alternate Funding Offices.

     Notwithstanding any provision of this Agreement to the contrary, each Lender shall be
entitled to fund and maintain its funding of all or any part of its Pro Rata Share of the Loan in
any manner it may determine at its sole discretion. Each Lender may, if it so elects, fulfill its
commitment to make its advance of the Loan by causing any office, branch or Affiliate of such
Lender to make such advance of the Loan; provided that in such event for the purposes of this
Agreement such advance of the Loan shall be deemed to have been made by such Lender and the
obligation of Borrower to repay such advance of the Loan shall nevertheless be to such Lender and
shall be deemed held by it, to the extent of such Loan, for the account of such office, branch or
Affiliate.

          3.5. Mitigation of Circumstances; Replacement of Lenders.

          (a) Each Lender shall promptly notify Borrower and Agent of any event of which it has
knowledge which will result in, and will use reasonable commercial efforts available to it (and
not, in such Lender’s sole judgment, otherwise disadvantageous to such Lender) to mitigate or
avoid, any obligation by Borrower to pay any amount pursuant to
Section 3.1 or 3.2. Without
limiting the foregoing, each Lender will designate a different funding office if such designation
will avoid (or reduce the cost to Borrower of) any event described above and such designation would
not, in such Lender’s sole judgment, be otherwise disadvantageous to such Lender.

          (b) If (i) Borrower becomes obligated to pay additional amounts to any Lender pursuant to
Section 3.1 or 3.2, or (ii) any Lender does not consent to any matter requiring its
consent under Section 10.1 when the Required Lenders have otherwise consented to such
matter, then Borrower may within 90 days thereafter designate another bank which is acceptable to
Agent in its reasonable discretion (such other bank being called a “Replacement Lender”)
to purchase the Pro Rata Share of the Loan of such Lender and such Lender’s rights hereunder,
without recourse to or warranty by, or expense to, such Lender, for a purchase price equal to the
outstanding principal amount of the Pro Rata Share of the Loan payable to such Lender plus any
accrued but unpaid interest on such Pro Rata Share of the Loan and all accrued but unpaid fees
owed to such Lender and any other amounts payable to such Lender under this Agreement, and to
assume all the obligations of such Lender hereunder, and, upon such purchase and assumption
(pursuant to an Assignment Agreement), such Lender shall no longer be a party hereto or have any
rights hereunder (other than rights with respect to indemnities and similar rights applicable

21

 

to such Lender prior to the date of such purchase and assumption) and shall be relieved from all
obligations to Borrower hereunder, and the Replacement Lender shall succeed to the rights and
obligations of such Lender hereunder.

          3.6. Conclusiveness of Statements; Survival.

          (a) Determinations and statements of any Lender pursuant to Section 3.1, 3.2,
or 3.3. shall be conclusive absent demonstrable error. Lenders may use reasonable averaging and
attribution methods in determining compensation under
Sections 3.1 , 3.2 and 3.3,
and the provisions of such Sections shall survive repayment of the Loan, cancellation of the Notes
and termination of this Agreement.

Section 4. Conditions Precedent.

     The obligation of each Lender to make its Pro Rata Share of the Loan is subject to the
following conditions precedent, each of which shall be satisfactory in all respects to Agent:

          4.1. Credit Extension.

     The obligation of Lenders to fund the Loan is subject to the following conditions precedent,
each of which shall be satisfactory in all respects to Agent:

          4.1.1. Omitted.

          4.1.2. Earth LNG Credit Agreement.

     The Earth LNG Credit Agreement shall have been amended pursuant to an amendment in the form
of Exhibit G hereto.

          4.1.3. Interest and Fees.

     Borrower shall have paid all interest, fees, costs and expenses due and payable under this
Agreement and the other Loan Documents on the Closing Date.

          4.1.4. Delivery of Loan Documents.

     Borrower shall have delivered the following documents in form and substance satisfactory to
Agent (and, as applicable, duly executed by all Persons named as parties thereto and dated the
Closing Date or an earlier date satisfactory to Agent):

          (a) Agreement. This Agreement.

          (b) Notes. A Note, for each Lender requesting a Note.

          (c) Collateral Documents. The Guarantee and Collateral Agreement, all other
Collateral Documents, and all instruments, documents, certificates and agreements executed or
delivered pursuant thereto (including intellectual property assignments and pledged equity
interests in the Borrower and the Borrower’s Subsidiaries), with undated irrevocable transfer

22

 

powers executed in blank), in each case, executed and delivered by each Loan Party and each other
Person named as a party thereto.

          (d) Financing Statements. Properly completed Uniform Commercial Code financing
statements and other filings and documents required by law or the Loan Documents to provide Agent
perfected Liens (subject only to Liens permitted pursuant to Section 7.2) in the
Collateral.

          (e) Lien Searches. Copies of Uniform Commercial Code search reports listing all
effective financing statements filed against any Loan Party, with copies of such financing
statements.

          (f) Real Property Documents.

(i) Evidence satisfactory to Agent that Parent has notified Union
Pacific Railroad Company (“Lessor”), the lessor under that
certain Lease of Property from Lessor to Parent, dated March 21,
2006 (the “Railroad Lease”), of the transfer by Parent of
its interest in and to the Railroad Lease and the leased premises to
Borrower (“Lessee”);

(ii) Evidence satisfactory to Agent that Parent has transferred the
leasehold estate created by the Railroad Lease to Lessee;

(iii) Amendment of Railroad Lease between Lessor and Lessee to
include all property owned by Lessor and used by Lessee in
connection with the Durant facility;

(iv) A Memorandum of the Railroad Lease recorded in the Official
Records of Bryan County, Oklahoma;

(v) A Lease Agreement between the City of Durant and Lessee (the
“City Lease”) for the lease of certain alleys and roadways,
together with a memorandum of said lease recorded in the Official
Records of Bryan County, Oklahoma;

(vi) A Fee and Leasehold Mortgage, in form and substance reasonably
satisfactory to Agent, from Lessee to Agent and granting a lien on
the property owned in fee by Lessee and the property leased by
Lessee pursuant to the Railroad Lease and the City Lease and creating a first priority Lien in favor of Agent on
the premises owned and leased by Lessee;

(vii) A title insurance policy insuring Agent’s Fee and Leasehold
Mortgage on Borrower’s owned and leased property associated with the
facility in Durant, Oklahoma in form and substance reasonably
satisfactory to Agent;

23

 

(viii) An agreement from Lessor (1) consenting to the granting by
Lessee of all of its right, title and interest in and to the
Railroad

Lease and the leased premises thereunder to Agent pursuant to a
leasehold mortgage, (2) agreeing to give notice to Agent upon a
default by Lessee and (3) such other matters as reasonably requested
by Agent and in form and substance reasonably satisfactory to Agent;

(ix) An amendment to the Arizona Deed of Trust to include this
Credit Agreement as part of the secured obligations; and

(x) An endorsement to the existing Arizona title policy insuring
Agent’s lien on the Arizona LNG facility to bring the date of said
policy forward to the date of recording of the Amendment to the
Arizona Deed of Trust and to insure said Deed of Trust as so
amended.

          (g) Collateral Access Agreements. Collateral Access Agreements reasonably requested
by Agent with respect to the Collateral.

          (h) Durant Intercreditor Agreement. The Durant Intercreditor Agreement, executed and
delivered by Agent, the Junior Secured Parties named therein and Borrower, substantially in the
form of Exhibit F hereto.

          (i) Lien Releases. Evidence satisfactory to Agent that Uniform Commercial Code or
other appropriate termination statements terminating the financing statements of Golden Spread
Energy, Inc. and Jack B. Kelley, Inc. on the property of certain Loan Parties shall have been
filed in the appropriate filing offices.

          (j) Fee Letter. The Fee Letter, executed and delivered by the Borrower and Agent.

          (k) Letter of Direction. A letter of direction executed by the Borrower containing
funds flow information with respect to the proceeds of the Loan on the Closing Date.

          (1) Authorization Documents. For each Loan Party, such Person’s (i) charter (or
similar formation document), certified by the appropriate Governmental Authority, (ii) good
standing certificates in its state of incorporation (or formation) and in each other state
requested by Agent, (iii) limited liability company agreement, partnership agreement, bylaws (and
similar governing document), (iv) resolutions of its board of directors (or similar governing
body) approving and authorizing such Person’s execution, delivery and performance of the Loan
Documents to which it is party and the transactions contemplated thereby, and (v) signature and
incumbency certificates of its officers executing any of the Loan Documents, all certified by its
secretary or an assistant secretary (or similar officer) as being in full force and effect without
modification.

          (m) Opinions of Counsel. Opinions of counsel for each Loan Party, including local
Oklahoma counsel, each in form and substance requested by Agent.

24

 

          (n) Insurance. Certificates or other evidence of insurance in effect as required by
Section 6.3(b), with endorsements naming Agent as lenders’ loss payee and/or additional
insured, as applicable.

          (o) Financials. The financial statements, projections and pro forma balance sheet
described in Section 5.4, including, without limitation, the audited financial statements
of Borrower (presented on a consolidated basis with the audited financial statements of Apollo
Resources International, Inc.) for the Fiscal Year ending December 31, 2005.

          (p) Environmental Reports. Environmental site assessment reports for the Borrower’s
facility in Durant, Oklahoma, prepared by environmental engineers reasonably satisfactory to Agent
and in form and substance reasonably satisfactory to Agent.

          (q) Consents. Evidence that all necessary consents, permits and approvals
(governmental or otherwise) required for the execution, delivery and performance by each Loan
Party of the Loan Documents have been duly obtained and are in full force and effect.

          (r) Warrant. The Warrant, executed and delivered by Parent in favor of Fourth Third.

          (s) Warrant Purchase Agreement. The Warrant Purchase Agreement, executed and
delivered by Fourth Third and Parent.

          (t) Other Documents. Such other certificates, documents and agreements that may be
listed on the closing checklist provided by Agent to the Borrower or as Agent or any Lender may
reasonably request.

          4.1.5. Representations and Warranties. Each representation and warranty by each Loan
Party contained herein or in any other Loan Document shall be true and correct in all material
respects (without duplication of any materiality qualifier contained therein) as of the Closing
Date.

          4.1.6. No Default. No Default or Event of Default shall have occurred and be
continuing.

          4.1.7. Diligence. The Agent shall have completed, to its satisfaction, its remaining
due diligence, which includes review of equipment appraisals, obtaining management background
checks, and legal diligence, with the results thereof satisfactory to the Agent.

          4.1.8. No Material Adverse Change. Since the applicable Last Pre Closing Audit Date,
there has been no material adverse change in the operations, assets, business, properties,
prospects or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a
whole or the Parent and its Subsidiaries taken as a whole.

          4.1.9. Reservation of Shares. Parent shall have authorized and reserved for issuance
to Fourth Third that number of shares of Warrant Stock of Parent necessary for the purpose of
issuance to Fourth Third upon exercise of the Warrant and shall have issued to Fourth Third and
Fourth Third shall have received the Warrant to purchase not less than an aggregate

25

 

number of shares of Warrant Stock of Parent (subject to adjustment as set forth in the Warrant)
being 2% of the Warrant Stock of Parent as of the Closing Date.

Section 5. Representations and Warranties.

To induce Agent and Lenders to enter into this Agreement and to induce Lenders to make their Pro
Rata Shares of the Loan hereunder, Borrower represents and warrants to Agent and Lenders as
follows.

          5.1. Organization.

     Borrower is a limited liability company validly existing and in good standing under the laws
of the State of Oklahoma, each other Loan Party is validly existing and in good standing under the
laws of the jurisdiction of its organization; and each Loan Party is duly qualified to do business
in each jurisdiction where, because of the nature of its activities or properties, such
qualification is required, except for such jurisdictions where the failure to so qualify could not
reasonably be expected to have a Material Adverse Effect.

          5.2. Authorization; No Conflict.

     Each of Borrower and each other Loan Party is duly authorized to execute and deliver each Loan
Document to which it is a party, Borrower is duly authorized to borrow monies hereunder, and each
of Borrower and each other Loan Party is duly authorized to perform its Obligations under each Loan
Document to which it is a party. The execution, delivery and performance by Borrower of this
Agreement and by each of Borrower, each Loan Party of each Loan Document to which it is a party,
and the borrowings by Borrower hereunder, do not and will not (a) require any consent or approval
of any governmental agency or authority (other than any consent or approval which has been obtained
and is in full force and effect), (b) conflict with (i) any provision of applicable law, (ii) the
charter, by-laws, limited liability company agreement, partnership agreement or other
organizational documents of any Loan Party or (iii) any agreement, indenture, instrument or other
document, or any judgment, order or decree, which is binding upon any Loan Party or any of their
respective properties or (c) require, or result in, the creation or imposition of any Lien on any
asset of Borrower, any Loan Party (other than Liens in favor of Agent created pursuant to the
Collateral Documents).

          5.3. Validity; Binding Nature.

     Each of this Agreement and each other Loan Document to which Borrower or any other Loan Party
is a party is the legal, valid and binding obligation of such Person, enforceable against such
Person in accordance with its terms, subject to bankruptcy, insolvency and similar
laws affecting the enforceability of creditors, rights generally and to general
principles of equity.

          5.4. Financial Condition.

          (a) The audited consolidated financial statements of Borrower and its Subsidiaries (presented
on a consolidated basis with the audited financial statements of Apollo Resources International,
Inc.) as at December 31, 2005, copies of each of which have been delivered pursuant hereto, were
prepared in accordance with GAAP (subject, in the case of such

26

 

unaudited statements, to the absence of footnotes and to normal year-end adjustments) and present
fairly the consolidated financial condition of such Persons as at such dates and the results of
their operations for the periods then ended.

          (b) The consolidated financial projections (including an operating budget and a cash flow
budget) of Parent and Borrower and their respective Subsidiaries for the 3 year period commencing
February 1, 2007 delivered to Agent and Lenders on or prior to the Closing Date (i) were prepared
by Parent and Borrower, respectively, in good faith and (ii) were prepared in accordance with
assumptions for which Parent and Borrower, respectively, has a reasonable basis, and the
accompanying consolidated pro forma balance sheets of Parent and Borrower and their respective
Subsidiaries as at the Closing Date, adjusted to give effect to the consummation of the financing
contemplated hereby as if such transactions had occurred on such date, is consistent in all
material respects with such projections.

          5.5. No Material Adverse Change.

     Since the applicable Last Pre Closing Audit Date, there has been no material adverse change
in the operations, assets, business, properties, prospects or condition (financial or otherwise)
of the Borrower and its Subsidiaries taken as a whole or of the Parent and its Subsidiaries taken
as a whole.

          5.6. Litigation. No litigation (including derivative actions), arbitration proceeding
or governmental investigation or proceeding is pending or, to Borrower’s knowledge, threatened
against any Loan Party which could reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect, except as set forth in Schedule 5.6. As of the
Closing Date, other than any liability incident to such litigation or proceedings, neither
Borrower nor any other Loan Party has any material Contingent Obligations not listed on
Schedule 7.1.

          5.7. Ownership of Properties; Liens.

     Each of Borrower and each other Loan Party owns good and, in the case of real property,
marketable title to all of its properties and assets, real and personal, tangible and intangible,
of any nature whatsoever (including patents, trademarks, trade names, service marks and
copyrights), free and clear of all Liens, charges and claims (including infringement claims with
respect to patents, trademarks, service marks, copyrights and the like), except as permitted by
Section 7.2.

          5.8. Capitalization.

     All issued and outstanding equity securities of the Loan Parties are duly authorized and
validly issued, fully paid and non-assessable, and such securities were issued in compliance with
all applicable state and federal laws concerning the issuance of securities. All issued and
outstanding equity securities of the Loan Party Subsidiaries are free and clear of all Liens other
than those in favor of Agent. Schedule 5.8 sets forth the authorized equity securities of
each Loan Party as of the Closing Date. All of the issued and outstanding equity of Borrower is
owned by Parent, and all of the issued and outstanding equity of each of the Borrower’s
Subsidiaries is, directly or indirectly, owned by Borrower. As of the Closing Date, except as set

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forth on Schedule 5.8, there are no pre-emptive or other outstanding rights, options,
warrants, conversion rights or other similar agreements or understandings for the purchase or
acquisition of any equity interests of any Loan Party.

          5.9. Pension Plans.

     During the twelve-consecutive-month period prior to the Closing Date or the making of the
Loan, (i) no steps have been taken to terminate any Pension Plan and (ii) no contribution failure
has occurred with respect to any Pension Plan sufficient to give rise to a Lien under Section
302(f) of ERISA. No condition exists or event or transaction has occurred with respect to any
Pension Plan which could result in the incurrence by Borrower or any other Loan Party of any
material liability, fine or penalty. All contributions (if any) have been made to any Multiemployer
Pension Plan that are required to be made by any Loan Party or any other member of the Controlled
Group under the terms of the plan or of any collective bargaining agreement or by applicable law;
neither any Loan Party nor any member of the Controlled Group has withdrawn or partially withdrawn
from any Multiemployer Pension Plan, incurred any withdrawal liability with respect to any such
plan or received notice of any claim or demand for withdrawal liability or partial withdrawal
liability from any such plan, and no condition has occurred which, if continued, could result in a
withdrawal or partial withdrawal from any such plan, and neither any Loan Party nor any member of
the Controlled Group has received any notice that any Multiemployer Pension Plan is in
reorganization, that increased contributions may be required to avoid a reduction in plan benefits
or the imposition of any excise tax, that any such plan is or has been funded at a rate less than
that required under Section 412 of the IRC, that any such plan is or may be terminated, or that any
such plan is or may become insolvent.

          5.10. Compliance with Law; Investment Company Act; Other Regulated Entities.

     Borrower and each other Loan Party possesses all necessary authorizations, permits, licenses
and approvals from all Governmental Authorities in order to conduct their respective businesses as
presently conducted. All business and operations of the Borrower and each other Loan Party
complies with all applicable federal, state and local laws and regulations, except where the
failure so to comply could not reasonably be expected to result in a Material Adverse Effect.
Neither the Borrower nor any other Loan Party is operating any aspect of its business under any
agreement, settlement, order or other arrangement with any Governmental Authority. Neither
Borrower nor any other Loan Party is an “investment company” or a company “controlled” by an
“investment company” or a “subsidiary” of an “investment company”, within the meaning of the
Investment Company Act of 1940. None of any Loan Party, any Person controlling any Loan Party, or
any Subsidiary of any Loan Party, is subject to regulation under the Federal Power Act, the
Interstate Commerce Act, any state public utilities code, or any other Federal or state statute,
rule or regulation limiting its ability to incur Indebtedness, pledge its assets or perform its
Obligations under the Loan Documents.

          5.11. Margin Stock.

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     Neither Borrower nor any Loan Party is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or carrying Margin
Stock. No portion of the Obligations is secured directly or indirectly by Margin Stock.

          5.12. Taxes.

     Each of Borrower and each other Loan Party and each Non-Loan Party has filed all federal,
state, local and foreign income and franchise and other material tax returns, reports and
statements (collectively, the “Tax Returns”) with the appropriate governmental authorities
in all jurisdictions in which such Tax Returns are or were required to be filed. All such Tax
Returns are true and correct in all material respects. All Taxes, charges and other impositions
reflected therein or otherwise due and payable have been paid prior to the date on which any
liability may be added thereto for non-payment thereof, except for those contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves are maintained on the
books of the appropriate Loan Party or Non-Loan Party, as applicable, in accordance with GAAP.
Except as specifically disclosed in Schedule 5.12, no Tax Return is under audit or
examination by any Governmental Authority and no notice of such an audit or examination or any
assertion of any claim for Taxes has been given or made by any Governmental Authority. Proper and
accurate amounts have been withheld by each Loan Party or Non-Loan Party, as applicable, from their
respective employees for all periods in full and complete compliance with the tax, social security
and unemployment withholding provisions of applicable requirements of law and such withholdings
have been timely paid to the respective governmental authorities. No Loan Party or Non-Loan Party
has participated in a “reportable transaction” within the meaning of Treasury Regulation Section
1.6011 -4(b) or has been a member of an affiliated, combined or unitary group other than the group
of which a Loan Party is the common parent.

          5.13. Solvency.

     On the Closing Date, with respect to each of Borrower and each other Loan Party,
individually, (a) the fair value of its assets is greater than the amount of its liabilities
(including disputed, contingent and unliquidated liabilities) as such value is established and
liabilities evaluated, (b) the present fair saleable value of its assets is not less than the
amount that will be required to pay the probable liability on its debts as they become absolute
and matured, (c) it is able to realize upon its assets and pay its debts and other liabilities
(including disputed, contingent and unliquidated liabilities) as they mature in the normal course
of business, (d) it does not intend to, and does not believe that it will, incur debts or
liabilities beyond its ability to pay as such debts and liabilities mature and (e) it is not
engaged in business or a transaction, and is not about to engage in business or a transaction, for
which its property would constitute unreasonably small capital.

          5.14. Environmental Matters.

     The on-going operations of Borrower and each other Loan Party comply in all respects with all
Environmental Laws, except such non-compliance which could not (if enforced in accordance with
applicable law) reasonably be expected to result in a Material Adverse Effect. Borrower and each
other Loan Party have obtained, and maintained in good standing, all licenses, permits,
authorizations and registrations required under any Environmental Law and

29

 

necessary tor their respective ordinary course operations, and Borrower and each other Loan Party
are in compliance with all material terms and conditions thereof, except where the failure to do
so could not reasonably be expected to result in material liability to Borrower or any other Loan
Party and could not reasonably be expected to result in a Material Adverse Effect. Except as set
forth on Schedule 5.14, none of Borrower, any other Loan Party or any of their respective
properties or operations is subject to any outstanding written order from or agreement with any
Federal, state or local Governmental Authority, nor subject to any judicial or docketed
administrative proceeding, nor subject to any indemnification agreement or other contractual
obligation, respecting any Environmental Law, Environmental Claim or Hazardous Substance. There
are no Hazardous Substances or other conditions or circumstances existing with respect to any
property, or arising from operations prior to the Closing Date, of Borrower or any other Loan
Party that could reasonably be expected to result in a Material Adverse Effect. Neither Borrower
nor any other Loan Party has any underground or above ground storage tanks that are not properly
registered or permitted under applicable Environmental Laws or that are leaking or disposing of
Hazardous Substances.

          5.15. Insurance.

     Borrower and each other Loan Party and their respective properties are insured with
financially sound and reputable insurance companies which are not Affiliates of Borrower, in such
amounts, with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where Borrower or such
other Loan Party operates. A true and complete listing of such insurance as of the Closing Date,
including issuers, coverages and deductibles, is set forth on Schedule 5.15.

          5.16. Information.

     All information heretofore or contemporaneously herewith furnished in writing by Borrower or
any other Loan Party to Agent or any Lender for purposes of or in connection with this Agreement
and the transactions contemplated hereby is, and all written information hereafter furnished by or
on behalf of Borrower or any Loan Party to Agent or any Lender pursuant hereto or in connection
herewith will be, true and accurate in every material respect on the date as of which such
information is dated or certified, and none of such information is or will be incomplete by
omitting to state any material fact necessary to make such information not misleading in light of
the circumstances under which made (it being recognized by Agent and Lenders that any projections
and forecasts provided by Borrower are based on good faith estimates and assumptions believed by
Borrower to be reasonable as of the date of the applicable projections or assumptions and that
actual results during the period or periods covered by any such projections and forecasts may
differ from projected or forecasted results).

          5.17. Intellectual Property.

     Borrower and each other Loan Party owns and possesses or has a license or other right to use
all patents, patent rights, trademarks, trademark rights, trade names, trade name rights, service
marks, service mark rights and copyrights as are necessary for the conduct of the business of
Borrower and the other Loan Parties, without any infringement upon rights of others which could
reasonably be expected to have a Material Adverse Effect.

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          5.18. Labor Matters.

     Except as set forth on Schedule 5.18, neither Borrower nor any other Loan Party is
subject to any labor or collective bargaining agreement. There are no existing or threatened
strikes, lockouts or other labor disputes involving Borrower or any other Loan Party that singly
or in the aggregate could reasonably he expected to have a Material Adverse Effect. Hours worked
by and payment made to employees of Borrower and the other Loan Parties are not in violation of
the Fair Labor Standards Act or any other applicable law, rule or regulation dealing with such
matters.

          5.19. No Default.

     No Event of Default or Default exists or would result from the incurrence by any Loan Party
of any Debt hereunder or under any other Loan Document.

          5.20. Foreign Assets Control Regulations and Anti-Money Laundering.

          5.20.1. OFAC.

     Neither any Loan Party nor any Subsidiary of any Loan Party (i) is a person whose property or
interest in property is blocked or subject to blocking pursuant to Section 1 of Executive Order
13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001) (“Executive Order
13224”), (ii) engages in any dealings or transactions prohibited by Section 2 of such executive
order, or is otherwise associated with any such person in any manner violative of Section 2, or
(iii) is a person on the list of Specially Designated Nationals and Blocked Persons or subject to
the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign
Assets Control regulation or executive order.

          5.20.2. Patriot Act.

     Each Loan Party and each of their respective Subsidiaries is in compliance, in all material
respects, with the Patriot Act. No part of the proceeds of the Loan will be used, directly or
indirectly, for any payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an official capacity,
in order to obtain, retain or direct business or obtain any improper advantage, in violation of the
United States Foreign Corrupt Practices Act of 1977, as amended.

Section 6. Affirmative Covenants.

     Until all Obligations (other than contingent indemnification obligations to the extent no
claim giving rise thereto has been asserted) are Paid in Full, each Loan Party agrees that, unless
at any time Required Lenders shall otherwise expressly consent in writing, it will:

          6.1 Information.

     Furnish to Agent and each Lender:

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          6.1.1. Annual Report.

     Promptly when available and in any event within 90 days after the close of each Fiscal Year: a
copy of the annual audit report of Parent and its Subsidiaries for such Fiscal Year, including
therein a consolidated balance sheet and statement of earnings and cash flows of Borrower and the
Subsidiaries as at the end of such Fiscal Year, certified without qualification by independent
auditors of recognized standing selected by Borrower and reasonably acceptable to Agent.

          6.1.2. Interim Reports.

     Promptly when available and in any event within 30 days after the end of each month,
consolidated balance sheets of Parent and Borrower and their respective Subsidiaries as of the end
of such month, together with consolidated statements of earnings and a consolidated statement of
cash flows for such month and for the period beginning with the first day of such Fiscal Year and
ending on the last day of such month, together with a comparison with the corresponding period of
the previous Fiscal Year and a comparison with the budget for such period of the current Fiscal
Year, certified by the chief financial officers of Parent and Borrower.

          6.1.3. Compliance Certificate.

     Contemporaneously with the furnishing of a copy of each annual audit report pursuant to
Section 6.1.1 and each set of statements pursuant to Section 6.1.2 for the last
month of each calendar quarter (beginning with the calendar quarter ending June 30, 2007) a duly
completed Compliance Certificate, with appropriate insertions, dated the date of such annual
report or such monthly statements, and signed by the chief financial officer of Borrower,
containing a computation of each of the financial ratios and restrictions set forth in Section
7.14 and to the effect that such officer has not become aware of any Event of Default or
Default that has occurred and is continuing or, if there is any such event, describing it and the
steps, if any, being taken to cure it.

          6.1.4. Reports to SEC and Shareholders.

     Promptly upon the filing or sending thereof, copies of (a) all regular, periodic or special
reports of each Loan Party filed with the Securities Exchange Commission, (b) all registration
statements of each Loan Party filed with the Securities Exchange Commission (other than on Form
S-8) and (c) all proxy statements or other communications made to security holders generally.

          6.1.5. Notice of Default; Litigation; ERISA Matters.

     Promptly upon becoming aware of any of the following, written notice describing the same and
the steps being taken by Borrower or the applicable Loan Party affected thereby with respect
thereto:

          (a) the occurrence of an Event of Default or a Default;

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          (b) any litigation, arbitration or governmental investigation or proceeding not previously
disclosed by Borrower to Lenders which has been instituted or, to the knowledge of Borrower, is
threatened against Borrower or any other Loan Party or to which any of the properties of any
thereof is subject which could reasonably be expected to have a Material Adverse Effect;

          (c) the institution of any steps by any member of the Controlled Group or any other Person to
terminate any Pension Plan, or the failure of any member of the Controlled Group to make a
required contribution to any Pension Plan (if such failure is sufficient to give rise to a Lien
under Section 302(f) of ERISA) or to any Multiemployer Pension Plan, or the taking of any action
with respect to a Pension Plan which could result in the requirement that Borrower or any other
Loan Party furnish a bond or other security to the PBGC or such Pension Plan, or the occurrence of
any event with respect to any Pension Plan or Multiemployer Pension Plan which could result in the
incurrence by any member of the Controlled Group of any material liability, fine or penalty
(including any claim or demand for withdrawal liability or partial withdrawal from any
Multiemployer Pension Plan), or any material increase in the contingent liability of Borrower or
any other Loan Party with respect to any post-retirement welfare plan benefit, or any notice that
any Multiemployer Pension Plan is in reorganization, that increased contributions may be required
to avoid a reduction in plan benefits or the imposition of an excise tax, that any such plan is or
has been funded at a rate less than that required under Section 412 of the IRC, that any such plan
is or may be terminated, or that any such plan is or may become insolvent;

          (d) any cancellation or material adverse change in any insurance maintained by Borrower or
any other Loan Party; or

          (e) any other event (including (i) any violation of any Environmental Law or the assertion of
any Environmental Claim or (ii) the enactment or effectiveness of any law, rule or regulation)
which could reasonably be expected to have a Material Adverse Effect.

          6.1.6. Management Report.

     Promptly upon receipt thereof, copies of all detailed financial and management reports
submitted to Borrower or any other Loan Party by independent auditors in connection with each
annual or interim audit made by such auditors of the books of Borrower or any other Loan Party.

          6.1.7. Projections.

     As soon as practicable, and in any event not later than 30 days after the commencement of
each Fiscal Year, financial projections for Parent and Borrower and their respective Subsidiaries
for such Fiscal Year (including monthly operating and cash flow budgets) prepared in a manner
consistent with the projections delivered by Parent and Borrower, respectively, to Agent prior to
the Closing Date or otherwise in a manner reasonably satisfactory to Agent, accompanied by a
certificate of a chief financial officers of Parent and Borrower to the effect that (a) such
projections were prepared by Parent and Borrower, respectively, in good faith, (b) Parent and
Borrower, respectively, has a reasonable basis for the assumptions contained in such projections
and (c) such projections have been prepared in accordance with such assumptions.

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          6.1.8. Other Information.

     Promptly from time to time, such other information concerning Borrower and any other Loan
Party as any Lender or Agent may reasonably request.

          6.2. Books; Records; Inspections.

     Keep, and cause each other Loan Party to keep, its books and records in accordance with sound
business practices sufficient to allow the preparation of financial statements in accordance with
GAAP; permit, and cause each other Loan Party to permit, Agent (accompanied by any Lender) or any
representative thereof to inspect the properties and operations of Borrower or such other Loan
Party; and permit, and cause each other Loan Party to permit, at any reasonable time and with
reasonable notice (or at any time without notice if an Event of Default exists), Agent
(accompanied by any Lender) or any representative thereof to visit any or all of its offices, to
discuss its financial matters with its officers and its independent auditors (and Borrower hereby
authorizes such independent auditors to discuss such financial matters with any Lender or Agent or
any representative thereof), and to examine (and, at the expense of Borrower or the applicable
Loan Party, photocopy extracts from) any of its books or other records; and permit, and cause each
other Loan Party to permit, Agent and its representatives to inspect the Collateral and other
tangible assets of Borrower or such Loan Party, to perform appraisals of the equipment of Borrower
or such Party, and to inspect, audit, check and make copies of and extracts from the books,
records, computer data, computer programs, journals, orders, receipts, correspondence and other
data relating to any Collateral.

          6.3. Maintenance of Property; Insurance.

          (a) Keep, and cause each other Loan Party to keep, all property useful and necessary in the
business of Borrower or such other Loan Party in good working order and condition, ordinary wear
and tear excepted.

          (b) Maintain, and cause each other Loan Party to maintain, with responsible insurance
companies, such insurance coverage as shall be required by all laws, governmental regulations and
court decrees and orders applicable to it and such other insurance, to such extent and against such
hazards and liabilities, as is customarily maintained by companies similarly situated; provided
that in any event, such insurance shall insure against all risks and liabilities of the type
insured against as of the Closing Date and shall have insured amounts no less than, and deductibles
no higher than, those amounts provided for as of the Closing Date. Upon request of Agent or any
Lender, Borrower shall furnish to Agent or such Lender a certificate setting forth in reasonable
detail the nature and extent of all insurance maintained by Borrower and each other Loan Party.
Borrower shall cause each issuer of an insurance policy to provide Agent with an endorsement (i)
showing Agent as a loss payee with respect to each policy of property or casualty insurance and
naming Agent as an additional insured with respect to each policy of liability insurance, (ii)
providing that 30 days’ notice will be given to Agent prior to any cancellation of, or reduction or
change in coverage provided by or other material modification to such policy and (iii) reasonably
acceptable in all other respects to Agent. Borrower shall execute and deliver to Agent a collateral
assignment, in form and substance satisfactory to Agent, of each business interruption insurance
policy maintained by the Loan Parties.

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          (c) Unless Borrower provides Agent with evidence of the continuing insurance coverage required
by this Agreement, Agent may purchase insurance at Borrower’s expense to protect Agent’s and
Lenders’ interests in the Collateral. This insurance may, but need not, protect Borrower’s and each
other Loan Party’s interests. The coverage that Agent purchases may, but need not, pay any claim
that is made against Borrower or any other Loan Party in connection with the Collateral. Borrower
may later cancel any insurance purchased by Agent, but only after providing Agent with evidence
that Borrower has obtained the insurance coverage required by this Agreement. If Agent purchases
insurance for the Collateral, as set forth above, Borrower will be responsible for the costs of
that insurance, including interest and any other charges that may be imposed with the placement of
the insurance, until the effective date of the cancellation or expiration of the insurance and the
costs of the insurance may be added to the principal amount of the Loan owing hereunder.

          6.4. Compliance with Laws; Payment of Taxes and Liabilities.

          (a) Comply, and cause each other Loan Party to comply, in all material respects with all
applicable laws, rules, regulations, decrees, orders, judgments, licenses and permits, except
where failure to comply could not reasonably be expected to have a Material Adverse Effect; (b)
without limiting clause (a) above, ensure, and cause each other Loan Party to ensure, that no
person who owns a controlling interest in or otherwise controls a Loan Party is or shall be (i)
listed on the Specially Designated Nationals and Blocked Person List maintained by the Office of
Foreign Assets Control (“OFAC”), Department of the Treasury, and/or any other similar lists
maintained by OFAC pursuant to any authorizing statute, Executive Order or regulation or (ii) a
person designated under Section 1(b), (c) or
(d) or Executive Order 13224, any related
enabling legislation or any other similar Executive Orders; (c) without limiting clause (a) above,
comply and cause each other Loan Party to comply, with all applicable Bank Secrecy Act and
anti-money laundering laws and regulations and (d) timely prepare and file all Tax Returns
required to be filed by applicable law and pay, and cause each other Loan Party to pay, prior to
delinquency, all taxes and other governmental charges against it or any of its property, as well
as claims of any kind which, if unpaid, could become a Lien on any of its property; provided that
the foregoing shall not require Borrower or any other Loan Party to pay any such tax or charge so
long as it shall contest the validity thereof in good faith by appropriate proceedings and shall
set aside on its books adequate reserves with respect thereto in accordance with GAAP.

          6.5. Maintenance of Existence.

     Maintain and preserve, and (subject to Section 7.5) cause each other Loan Party to
maintain and preserve, (a) its existence and good standing in the jurisdiction of its organization
and (b) its qualification to do business and good standing in each jurisdiction where the nature
of its business makes such qualification necessary, other than any such jurisdiction where the
failure to be qualified or in good standing could not reasonably be expected to have a Material
Adverse Effect.

          6.6. Employee Benefit Plans.

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     Maintain, and cause each other Loan Party to maintain, each Pension Plan in substantial
compliance with all applicable requirements of law and regulations.

          6.7. Environmental Matters.

     If any release or disposal of Hazardous Substances shall occur or shall have occurred on or
from any real property or any other assets of Borrower or any other Loan Party, cause, or direct
the applicable Loan Party to cause, the prompt containment and removal of such Hazardous Substances
and the remediation of such real property or other assets as is necessary to comply with all
Environmental Laws and to preserve the value of such real property or other assets. Without
limiting the generality of the foregoing, Borrower shall, and shall cause each other Loan Party to,
comply with each valid Federal or state judicial or administrative order requiring the performance
at any real property by Borrower or any other Loan Party of activities in response to the release
or threatened release of a Hazardous Substance. If any violation of any Environmental Law shall
occur or shall have occurred at any real property or any other assets of Borrower or any other Loan
Party or otherwise in connection with their operations, cause, or direct the applicable Loan Party
to cause, the prompt correction of such violation.

          6.8.
Further Assurances.

     (a) Promptly upon request by the Agent, the Loan Parties shall (and, subject to the
limitations hereinafter set forth, shall cause each of their Subsidiaries to) take such additional
actions as the Agent may reasonably require from time to time in order (i) to carry out more
effectively the purposes of this Agreement or any other Loan Document, (ii) to subject to the
Liens created by any of the Collateral Documents any of the properties, rights or interests
covered by any of the Collateral Documents, (iii) to perfect and maintain the validity,
effectiveness and priority of any of the Collateral Documents and the Liens intended to be created
thereby, and (iv) to better assure, convey, grant, assign, transfer, preserve, protect and confirm
to the Agent and Lenders the rights granted or now or hereafter intended to be granted to the
Agent and the Lenders under any Loan Document or under any other document executed in connection
therewith. Without limiting the generality of the foregoing and except as otherwise approved in
writing by Required Lenders, the Loan Parties shall cause each of their Domestic Loan Party
Subsidiaries to guaranty the Obligations and cause each such Subsidiary to grant to the Agent, for
the benefit of the Agent and Lenders, a security interest in, subject to the limitations
hereinafter set forth, all of such Subsidiary’s Property to secure such guaranty. Furthermore and
except as otherwise approved in writing by Required Lenders, Parent shall pledge the Stock and
Stock Equivalents of Borrower and of Earth LNG, and each Loan Party Subsidiary shall, and shall
cause (x) each of its Domestic Loan Party Subsidiaries to, pledge all of the Stock and Stock
Equivalents of each of its Domestic Loan Party Subsidiaries and sixty-five percent (65%) of the
outstanding voting Stock and Stock Equivalents and one hundred percent (100%) of the outstanding
non-voting Stock and Stock Equivalents) of Foreign Subsidiaries owned directly by a Loan Party
Subsidiary, in each instance, to the Agent, for the benefit of the Agent and Lenders, to secure
the Obligations. In connection with each pledge of Stock and Stock Equivalents, such Loan Party
Subsidiary shall deliver, or cause to be delivered, to the Agent, irrevocable proxies and stock
powers and/or assignments, as applicable, duly executed in blank. In the event any Loan Party
(other than Parent) acquires or leases as lessee any real Property, simultaneously with such
acquisition, such Person shall execute and/or

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deliver, or cause to be executed and/or delivered, to the Agent, (x) a fully executed Mortgage, in
form and substance reasonably satisfactory to the Agent together with in the case of a lease, such
lease amendments, consents and/or estoppels as Agent may reasonably request, and in any event,
together with an A.L.T.A. lender’s title insurance policy issued by a title insurer reasonably
satisfactory to the Agent, in form and substance and in an amount reasonably satisfactory to the
Agent insuring that the Mortgage is a valid and enforceable first priority Lien on the respective
property, free and clear of all defects, encumbrances and Liens, (y) then current A.L.T.A. surveys,
certified to the Agent and the Lenders by a licensed surveyor sufficient to allow the issuer of the
lender’s title insurance policy to issue such policy without a survey exception and (z) an
environmental site assessment prepared by a qualified firm reasonably acceptable to the Agent, in
form and substance satisfactory to the Agent.

     (b) Within thirty (30) days after the Closing Date, the Loan Parties shall deliver to Agent a
deposit account or securities account, as applicable, Control Agreement for each deposit account
and securities account maintained by Borrower or any Subsidiary thereof (other than zero balance
payroll and similar accounts and other than the “Lock Box Account” (as such term is defined in the
Intercreditor Agreement), in form and substance satisfactory to the Agent.

     (c) Within sixty (60) days after the Closing Date, the Loan Parties shall deliver to Agent
written documentation demonstrating to Agent’s satisfaction that, in connection with Borrower’s
Durant, Oklahoma facility, the Loan Parties have: (i) prepared and implemented a Spill Prevention,
Control, and Countermeasure Plan and complied in all material respects with all other applicable
provisions of 40 C.F.R. Part 112; (ii) prepared and filed all reports and other documentation
required to comply in all material respects with the Emergency Planning and Community
Right-To-Know Act (SARA Title III), 42 U.S.C. §§ 11001
et seq.; and (iii) prepared, implemented,
and filed a Risk Management Plan and complied in all material respects with all other applicable
provisions of Section 112(r) of the Clean Air Act, 42 U.S.C § 7412(r). No later than June 1, 2007,
the Loan Parties shall deliver to Agent written documentation demonstrating to Agent’s
satisfaction that, in connection with Borrower’s Durant, Oklahoma facility, the Loan Parties have
(i) applied for a storm water discharge permit required under the Clean Water Act, 33 U.S.C. §§
1251 et seq., and (ii) prepared and filed with the appropriate regulatory authority an Application
for an Air Permit to Operate, and, in each case, the Loan Parties shall provide Agent with a
written status report every thirty (30) days thereafter until the Loan Parties provide written
documentation to Agent demonstrating to Agent’s satisfaction the Loan Parties’ receipt of a final
discharge permit and a final Air Permit to Operate.

           6.9. Collateral Access Agreements.

     Each Loan Party Subsidiary shall use commercially reasonable efforts to obtain a Collateral
Access Agreement from the lessor of each leased property, bailee in possession of any Collateral
or mortgage of any owned property with respect to each location where any Collateral is stored or
located, which Collateral Access Agreement shall be reasonably satisfactory in form and substance
to Agent.

37

 

          6.10.
Board Observation Rights.

     Fourth Third shall have the right to appoint a single observer to the board of directors or
similar governing body of each Loan Party (the “Board of Directors”), who shall be entitled
to attend (or at the option of such observer, monitor by telephone) all meetings of such Board of
Directors and each committee of such Board of Directors, but shall not be entitled to vote, and who
shall receive all reports, meeting materials, notices, written consents, and other materials as and
when provided to the members of such Board of Directors. The Loan Parties shall reimburse Fourth
Third for the reasonable travel expenses incurred by any such observer appointed by Fourth Third in
connection with attendance at or participation in meetings of such Loan Party’s Board of Directors
to the extent consistent with such Loan Party’s policies of reimbursing directors generally for
such expenses.

          6.11. Reservation of Shares.

     Parent shall at all times reserve and keep available out of its authorized but unissued
shares of Warrant Stock solely for the purpose of issuance upon the exercise of the Warrant, such
number of shares of Warrant Stock as may from time to time be issuable upon the exercise of the
entire outstanding portion of the Warrant. Parent shall take all such actions as may be necessary
to assure that all such shares of Warrant Stock may be so issued without violation of any
applicable law or governmental regulation or any requirements of any domestic securities exchange
upon which shares of Warrant Stock may be listed (except for official notice of issuance which
shall be immediately delivered by Parent upon each such issuance). Parent shall not take any
action which would cause the number of authorized but unissued shares of Warrant Stock to be less
than the number of such shares required to be reserved hereunder for issuance upon exercise of the
Warrant.

Section 7. Negative Covenants.

     Until the Obligations (other than contingent indemnification obligations to the extent no
claim giving rise thereto has been asserted) are Paid in Full, each Domestic Loan Party
Subsidiary agrees that, unless at any time Required Lenders shall otherwise expressly consent in
writing, it will:

          7.1. Debt.

     Not, and not suffer or permit any other Loan Party Subsidiary to, create, incur, assume or
suffer to exist any Debt, except:

          (a) Obligations under this Agreement and the other Loan Documents;

          (b) Debt secured by Liens permitted by Section 7.2(d), and extensions, renewals and
refinancings thereof; provided that the aggregate principal amount of all such Debt at any time
outstanding shall not exceed $1,000,000;

          (c) Debt of Borrower to any Wholly-Owned Domestic Subsidiary of Borrower or Debt of any
Wholly-Owned Domestic Subsidiary of Borrower to Borrower or another Wholly-Owned Domestic
Subsidiary of Borrower; provided that all such Debt shall be

38

 

evidenced by a demand note in form and substance reasonably satisfactory to Agent and pledged and
(subject to any contrary provision of the Intercreditor Agreement) delivered to Agent pursuant to
the Guarantee and Collateral Agreement as additional collateral security for the Obligations, and
the obligations under such demand note shall be subordinated to the Obligations hereunder in a
manner reasonably satisfactory to Agent;

          (d) Debt described on Schedule 7.1 as of the Closing Date, and any
extension,
renewal or refinancing thereof so long as the principal amount thereof is not increased;

          (e) Senior Debt of Borrower and its Subsidiaries in an aggregate principal amount not
exceeding that permitted by the Intercreditor Agreement.

          (f) Contingent Obligations arising with respect to customary indemnification obligations in
favor of purchasers in connection with dispositions permitted under
Section 7.5;

          (g) Debt arising from the honoring by a bank or other financial institution of a check, draft
or similar instrument drawn against insufficient funds in the ordinary course of business, provided
that such Debt is extinguished within two (2) Business Days of notice to Borrower or the relevant
Subsidiary of its incurrence;

          (h) Debt incurred in connection with the financing of insurance premiums in the ordinary
course of business;

          (i) guaranties by Borrower of the Debt of any Wholly-Owned Domestic Subsidiary of Borrower or
guaranties by any Subsidiary thereof of the Debt of Borrower, in each case so long as such Debt is
permitted under this Section 7.1;

          (j) Debt under the Earth LNG Credit Agreement;

          (k) other unsecured Debt, in addition to the Debt listed above, in an aggregate principal
outstanding amount not at any time exceeding $2,000,000;

          (1) the non-recourse obligations of Borrower under the Durant Guaranty; and

          (m) without duplication of any Debt permitted above in this Section 7.1 and until the
Earth LNG Obligations have been Paid in Full, Debt of Earth LNG or any Subsidiary thereof
permitted under the Earth LNG Credit Agreement.

          7.2. Liens.

     Not, and not suffer or permit any other Loan Party Subsidiary to, create or permit to exist
any Lien on any of its real or personal properties, assets or rights of whatsoever nature (whether
now owned or hereafter acquired), except:

          (a) Liens for taxes or other governmental charges not at the time delinquent or thereafter
payable without penalty or being diligently contested in good faith by appropriate proceedings
and, in each case, for which it maintains adequate reserves in accordance with GAAP and the
execution or other enforcement of which is effectively stayed;

39

 

          (b) Liens arising in the ordinary course of business (such as (i) Liens of carriers,
warehousemen, mechanics, landlords and materialmen and other similar Liens imposed by law and (ii)
Liens consisting of pledges or deposits incurred in connection with worker’s compensation,
unemployment compensation and other types of social security (excluding Liens arising under ERISA)
or in connection with surety bonds, bids, performance bonds and similar obligations) for sums not
overdue or being diligently contested in good faith by appropriate proceedings and not involving
any deposits or advances or borrowed money or the deferred purchase price of property or services
and, in each case, for which it maintains adequate reserves in accordance with GAAP and the
execution or other enforcement of which is effectively stayed;

          (c) Liens described on Schedule 7.2 as of the Closing Date;

          (d) subject
to the limitation set forth in Section 7.1(b), (i) Liens arising in
connection with Capital Leases (and attaching only to the property being leased), (ii) Liens
existing on property at the time of the acquisition thereof by Borrower or any Subsidiary (and not
created in contemplation of such acquisition) and (iii) Liens that constitute purchase money
security interests on any property securing debt incurred for the purpose of financing all or any
part of the cost of acquiring such property, provided that any such Lien attaches to such property
within 60 days of the acquisition thereof and attaches solely to the property so acquired;

          (e) attachments, appeal bonds, judgments and other similar Liens, for sums not exceeding
$250,000 arising in connection with court proceedings; provided that the execution or other
enforcement of such Liens is effectively stayed and the claims secured thereby are being actively
contested in good faith and by appropriate proceedings;

          (f) easements, encroachments, rights of way, leases, subleases, restrictions, minor defects
or irregularities in title and other similar Liens not interfering in any material respect with
the ordinary conduct of the business of Borrower or any Subsidiary;

          (g) any interest or title of a lessor, sublessor under any lease (other than a Capital Lease)
permitted by this Agreement;

          (h) Liens arising from precautionary uniform commercial code financing statements filed under
any lease (other than a Capital Lease) permitted by this Agreement;

          (i) Liens arising under the Loan Documents;

          (j) Liens on property of Borrower and its Subsidiaries securing the Senior Debt and subject
to the terms of the Intercreditor Agreement;

          (k) Liens in favor of the Agent securing Debt under the Earth LNG Credit Agreement;

          (1) Liens on the property of Borrower and described on Schedule 2 to the Durant
Intercreditor Agreement pursuant to the Kelley Security Agreement and securing the Durant Guaranty
and subject to the Durant Intercreditor Agreement;

40

 

          (m) the replacement, extension or renewal of any Lien permitted by clause (c) above upon or
in the same property subject thereto arising out of the extension, renewal or replacement of the
Debt secured thereby (without increase in the amount thereof) and

          (n) without
duplication of any Liens permitted above in this Section 7.2 and until
the Earth LNG Obligations have been Paid in Full, Liens on property of Earth LNG or any Subsidiary
thereof permitted under the Earth LNG Credit Agreement.

          7.3. Subsidiaries.

     Not, and not suffer or permit any other Loan Party Subsidiary to establish or acquire any
Subsidiary.

          7.4. Restricted Payments.

     Not, and not suffer or permit any other Loan Party Subsidiary to, (a) make any dividend or
other distribution to any of its equity holders, (b) purchase or redeem any of its equity interests
or any warrants, options or other rights in respect thereof, (c) pay any management or consulting
fees or similar fees to any of its equity holders or any Affiliate thereof, (d) make any
redemption, prepayment (whether mandatory or optional), defeasance, repurchase or any other payment
in respect of any Debt that is subordinated to the Obligations, or (e) set aside funds for any of
the foregoing (each, a “Restricted Payment”). Notwithstanding the foregoing, (i) any
Subsidiary of the Borrower may pay dividends or make other distributions to Borrower or to a
Wholly-Owned Domestic Subsidiary of Borrower; (ii) any Loan Party may make distributions to Parent
that are used by Parent to pay federal, state and local income taxes then due and owing in respect
of income from such Loan Party or any Subsidiary of such Loan Party, franchise taxes and other
similar licensing expenses incurred in the ordinary course of business; provided that each Loan
Party’s aggregate contribution to taxes as a result of the filing of a consolidated or combined
return by Parent shall not be greater, nor the aggregate receipt of tax benefits less, than they
would have been had such Loan Party not filed a consolidated or combined return with Parent, in
each case, so long as no Default or Event of Default is continuing or would arise as a consequence
thereof; (iii) Apollo Leasing, Inc. may pay semi-annual dividends with respect to shares of its
Series A Preferred Stock (non-voting) that are outstanding on the date hereof and at a rate of not
more than $0.021852 per share; provided, that no Event of Default is continuing or would
occur as a result thereof and so long as the Borrower as of the last day of the Computation Period
for which financial statements pursuant to Section 6.1 have been delivered most recently on
or prior to the date of such payment shall be, on a pro forma basis (as though such dividend was
paid on the first day of such Computation Period) in compliance with the financial covenants set
forth in Section 7.14) and (iv) without duplication of any Restricted Payments permitted
above in this Section 7.4 and until the Earth LNG Obligations have been Paid in Full,
Restricted Payments by Earth LNG or any Subsidiary thereof permitted under the Earth LNG Credit
Agreement. For the avoidance of doubt, under no circumstances shall Borrower pay dividends or make
other distributions to any Loan Party Subsidiary that is not a Wholly-Owned Domestic Subsidiary of
Borrower.

          7.5. Mergers; Consolidations; Asset Sales.

41

 

          (a) Not, and not suffer or permit any other Loan Party Subsidiary to, be a party to any
merger or consolidation, except for (i) any such merger or consolidation of any Subsidiary of
Borrower into Borrower (so long as the Borrower survives such merger) or any Wholly-Owned Domestic
Subsidiary of Borrower (so long such Wholly-Owned Domestic Subsidiary survives such merger) or (ii)
without duplication of any permitted above in this clause (a) and until the Earth LNG Obligations
have been Paid in Full, any such merger of consolidation by Earth LNG or any Subsidiary thereof
permitted under the Earth LNG Credit Agreement.

          (b) Not, and not suffer or permit any other Loan Party Subsidiary to, sell, transfer, dispose
of, convey or lease any of its assets or equity interests, or sell or assign with or without
recourse any receivables, except for (i) sales of inventory or used, worn-out or surplus
equipment, all in the ordinary course of business, (ii) sales and dispositions of assets
(excluding any equity interests of Borrower or any Subsidiary of Borrower) for at least fair
market value (as determined by the Board of Directors of Borrower) so long as at least 75% of the
purchase price therefor is in cash and the net book value of all assets sold or otherwise disposed
of in any Fiscal Year does not exceed $500,000 and (iii) without duplication of any permitted
above in this clause (b) and until the Earth LNG Obligations have been Paid in Full, sales,
transfer, dispositions, conveyances or leases permitted under the Earth LNG Credit Agreement.

          7.6. Modification of Organizational Documents.

     Not, and not suffer or permit the charter, limited liability agreement, partnership
agreement, by-laws or other organizational documents of, Parent, Borrower or any other Loan Party
to be amended or modified in any way which could reasonably be expected to materially adversely
affect the interests of Agent or any Lender.

          7.7. Use of Proceeds.

     Cause Borrower to use the proceeds of the Loan solely to satisfy the Durant Lien Expenses,
for deposit into the Interest Reserve Account, to finance its working capital needs, to make
Capital Expenditures, and to pay any financing fees and expenses associated herewith, and
not use or permit any proceeds of the Loan to be used, either directly or indirectly, for the
purpose, whether immediate, incidental or ultimate, of “purchasing or carrying” any Margin Stock.
For the avoidance of doubt, under no circumstances shall the proceeds of the Loan be used by any
Loan Party Subsidiary that is not the Borrower or a Wholly-Owned Domestic Subsidiary of Borrower.

          7.8. Transactions with Affiliates.

     Not, and not suffer or permit any other Loan Party Subsidiary to, enter into any transaction
with any Affiliate of the Borrower or of any such Subsidiary, except:

          (a) as expressly permitted by this Agreement or until the Earth LNG Obligations have been
Paid in Full, the Earth LNG Credit Agreement; or

          (b) in the ordinary course of business and pursuant to the reasonable requirements of the
business of such Loan Party or such Subsidiary provided that, in the case of

42

 

this clause (b), upon fair and reasonable
terms no less favorable to such Loan Party or such
Subsidiary than would be obtained in a comparable arm’s length transaction with a Person not an
Affiliate of the Borrower or such Subsidiary and which are disclosed in writing to the Agent.

          7.9. Inconsistent Agreements.

     Not and not suffer or permit any other Loan Party (including Parent) to, enter into any
agreement containing any provision which would (a) be violated or breached by any borrowing by
Borrower hereunder or by the performance by Borrower or any other Loan Party (including Parent) of
any of its Obligations hereunder or under any other Loan Document, (b) prohibit Borrower or any
other Loan Party (including Parent) from granting to Agent and Lenders a Lien on any of its assets
that constitute Collateral or (c) other than pursuant to any agreement in effect on the Closing
Date, or pursuant to the Senior Debt Documents, create or permit to exist or become effective any
encumbrance or restriction on the ability of any other Loan Party Subsidiary to (i) pay dividends
or make other distributions to Borrower or any other Loan Party Subsidiary, or pay any Debt owed
to Borrower or any other Loan Party Subsidiary, (ii) make loans or advances to Borrower or any
other Loan Party Subsidiary or (iii) transfer any of its assets or properties to Borrower or any
other Loan Party Subsidiary.

          7.10. Business Activities.

     Not, and not suffer or permit any other Loan Party Subsidiary to, engage in any line of
business other than the businesses engaged in on the Closing Date and businesses reasonably related
thereto.

          7.11. Investments.

     Not, and not suffer or permit any other Loan Party Subsidiary to, make or permit to exist any
Investment in any other Person, except the following:

          (a) contributions by Borrower to the common equity of any Wholly-Owned Domestic Subsidiary of
Borrower in existence on the Closing Date, or by any Subsidiary that is a Loan Party to the
capital of any other Wholly-Owned Domestic Subsidiary of Borrower in existence on the Closing
Date, so long as the recipient of any such common equity contribution is the Borrower or at such
time is a guarantor of the Obligations and such guaranty or the Obligations is secured by a pledge
of all of its equity interests and substantially all of its real and personal property, in each
case in accordance with Section 6.8;

          (b) Investments constituting Debt permitted by Section 7.1(c);

          (c) Contingent
Obligations constituting Debt permitted by Section 7.1 or Liens
permitted by Section 7.2;

          (d) Cash Equivalent Investments;

          (e) loans and advances to employees in the ordinary course of business not to exceed $100,000
in aggregate principal amount at any time outstanding;

43

 

          (f) Investments listed on Schedule 7.11 as of the Closing Date; and

          (g) without duplication of any Investments permitted above in this Section 7.11 and
until the Earth LNG Obligations have been Paid in Full, Investments by Earth LNG or any Subsidiary
thereof permitted by the Earth LNG Credit Agreement.

          7.12. Omitted.

          7.13. Fiscal Year.

     Not, and not suffer or permit any other Loan Party Subsidiary or Parent to, change its Fiscal
Year.

          7.14. Financial Covenants.

        
  7.14.1. Fixed Charge Coverage Ratio.

     Not
and not suffer or permit the Fixed Charge Coverage Ratio for any
Computation Period to be
less than 1.3:1.0:

          7.14.2. EBITDA.

     Not
and not suffer or permit EBITDA for any Computation Period to be less than the
applicable amount, set forth below for such Computation Period:

	 	 	 	 	 
	Computation	 	 
	Period Ending	 	EBITDA
	September 30, 2007
	 	$	483,955	 
	December 31, 2007
	 	$	714,915	 
	March 31, 2008
	 	$	725,933	 
	June 30, 2008
	 	$	714,915	 
	September 30, 2008
	 	$	714,914	 
	December 31, 2008
	 	$	710,994	 
	March 31, 2009
	 	$	710,994	 
	June 30, 2009
	 	$	710,994	 
	September 30, 2009
	 	$	710,994	 
	December 31, 2009
	 	$	701,092	 
	March 31, 2010
	 	$	701,092	 
	June 30, 2010
	 	$	701,092	 
	September 30, 2010
	 	$	701,092	 

       
   7.15. Deposit Accounts and Securities Accounts.

     Not, and
not suffer or permit any other Domestic Loan Party Subsidiary to, maintain or
establish any deposit account or securities account other than the deposit accounts and securities
accounts set forth on Schedule 7.15 without prior written notice to Agent and unless
Agent, Borrower or such other Loan Party and the bank or securities intermediary at which such
deposit account or securities account, as applicable, is to be opened or maintained enter into a
Control

44

 

Agreement regarding such deposit account or securities account, as applicable, on terms
satisfactory to Agent.

          7.16. Sale-Leasebacks. Not and not suffer or permit any other Loan Party Subsidiary
to, engage in a sale leaseback, synthetic lease or similar transaction involving any of its assets.

          7.17. Hazardous Substances. Not, and not suffer or permit any other Loan Party
Subsidiary or Parent to, cause or suffer to exist any release of any Hazardous Substances at, to
or from any real property owned, leased, subleased or otherwise operated or occupied by any Loan
Party Subsidiary or Parent that would violate any Environmental Law, form the basis for any
Environmental Claims or otherwise adversely affect the value or marketability of any real property
(whether or not owned by any Loan Party Subsidiary or Parent), other than such violations,
Environmental Claims and effects that would not, in the aggregate, be reasonably be expected to
have a Material Adverse Effect. Notwithstanding the foregoing, under no circumstances will any
Domestic Loan Party Subsidiary cause or suffer to exist any disposal of any Hazardous Substances
at, on, under or in any real property owned, leased, subleased, or otherwise operated or occupied
by any Loan Party Subsidiary or Parent.

Section 8. Events of Default; Remedies.

          8.1. Events of Default.

     Each of the following shall constitute an Event of Default under this Agreement:

          8.1.1. Non-Payment of Credit.

     Default, in the payment when due of the principal of the Loan shall occur; or default, and
continuance thereof for 5 days, in the payment when due of any interest, fee, or other amount
payable by any Loan Party hereunder or under any other Loan Document shall occur.

          8.1.2. Default Under Other Debt.

     An Event of Default shall occur and be continuing under the Earth LNG Credit Agreement, or
any default shall occur under the terms applicable to any Debt (other than the Obligations) of any
Loan Party in an aggregate amount (for all such Debt so affected and including undrawn committed
or available amounts and amounts owing to all creditors under any combined or syndicated credit
arrangement) exceeding $1,000,000 and such default shall result in the acceleration of the
maturity of such Debt or permit the holder or holders thereof, or any trustee or agent for such
holder or holders, to cause such Debt to become due and payable (or require Borrower or any other
Loan Party to purchase or redeem such Debt or post cash collateral in respect thereof) prior to
its expressed maturity.

          8.1.3.
Bankruptcy; Insolvency.

     Any Loan Party becomes insolvent or generally fails to pay, or admits in writing its
inability or refusal to pay, debts as they become due; or any Loan Party applies for, consents to,
or acquiesces in the appointment of a trustee, receiver or other custodian for such Loan Party or

45

 

any property thereof, or makes a general assignment for the benefit of creditors; or, in the
absence of such application, consent or acquiescence, a trustee, receiver or other custodian is
appointed for any Loan Party or for a substantial part of the property of any thereof and is not
discharged within 60 days; or any bankruptcy, reorganization, debt arrangement, or other case or
proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding,
is commenced in respect of any Loan Party, and if such case or proceeding is not commenced by such
Loan Party, it is consented to or acquiesced in by such Loan Party, or remains for 60 days
undismissed; or any Loan Party takes any action to authorize, or in furtherance of, any of the
foregoing.

          8.1.4. Non-Compliance with Loan Documents.

          (a) (a) Failure by Borrower or any other Loan Party to comply with or to perform any covenant
set forth in Sections 6.1.1, 6.1.2, 6.1.3, 6.1.4,
6.1.5(a), 6.1.7, 6.3(b) and (c), 6.5, 6.7, and 7;
or (b) failure by Borrower or any other Loan Party to comply with or to perform any other
provision of this Agreement or any other Loan Document applicable to it (and not constituting an
Event of Default under any other provision of this Section 8) and continuance of such
failure described in this clause (b) for 30 days.

          8.1.5. Representations; Warranties.

     Any representation or warranty made by any Loan Party herein or any other Loan Document is
breached or is false or misleading in any material respect, or any schedule, certificate,
financial statement, report, notice or other writing furnished by any Loan Party to Agent or any
Lender in connection herewith is false or misleading in any material respect on the date as of
which the facts therein set forth are stated or certified.

          8.1.6. Pension Plans.

          (a) Institution of any steps by any Person to terminate a Pension Plan if as a result of such
termination any Loan Party or any member of the Controlled Group could be required to make a
contribution to such Pension Plan, or could incur a liability or obligation to such Pension Plan,
in excess of $250,000; (b) a contribution failure occurs with respect to any Pension Plan
sufficient to give rise to a Lien under Section 302(f) of ERISA; or (c) there shall occur any
withdrawal or partial withdrawal from a Multiemployer Pension Plan and the withdrawal liability
(without unaccrued interest) to Multiemployer Pension Plans as a result of such withdrawal
(including any outstanding withdrawal liability that Borrower or any other Loan Party or any member
of the Controlled Group have incurred on the date of such withdrawal) exceeds $250,000.

          8.1.7. Judgments.

          (a) Final judgments which exceed an aggregate of $250,000 shall be rendered against any Loan
Party and shall not have been paid, discharged or vacated or had execution thereof stayed pending
appeal within 30 days after entry or filing of such judgments; or

          (b) One or more non-monetary judgments, orders or decrees shall be rendered against any one
or more of the Loan Parties or any of their respective Subsidiaries which has had

46

 

or would reasonably be expected to have, either individually or in the aggregate, a Material
Adverse Effect, and there shall be any period of ten (10) consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect.

          8.1.8.
Invalidity of Collateral Documents.

     Any Collateral Document shall cease to be in full force and effect; or any Loan Party or
other grantor or pledgor (or any Person by, through or on behalf of any Loan Party, grantor or
pledgor) shall contest in any manner the validity, binding nature or enforceability of any
Collateral Document.

          8.1.9. Invalidity of Intercreditor Provisions.

     Any subordination provision in any document or instrument governing Debt that is intended to
be subordinated to the Obligations or any subordination provision in any subordination agreement
that relates to any such Debt, or any subordination provision in any guaranty by any Loan Party of
any such Debt, shall cease to be in full force and effect, or any Person (including the holder of
any applicable Debt) shall contest in any manner the validity, binding nature or enforceability of
any such provision.

          8.1.10.
Change of Control.

     (a) Parent shall cease to directly own and control 100% of each class of the outstanding
equity interests of Borrower, (b) Borrower shall cease to, directly or indirectly, own and control
100% of each class of the outstanding equity interests of each Subsidiary of the Borrower, or (c)
a “Change of Control” or other similar event shall occur, as defined in, or under, the Senior Debt
Documents or any other documentation evidencing or otherwise relating to any Senior Debt.

          8.2. Remedies.

     If any Event of Default described in Section 8.1.3 shall occur, the Loan and all other
Obligations shall become immediately due and payable, all without presentment, demand, protest or
notice of any kind; and, if any other Event of Default shall occur and be continuing, Agent (upon
the written request of Required Lenders) shall declare all or any part of the Loan and other
Obligations to be due and payable, whereupon the Loan and other Obligations shall become
immediately due and payable (in whole or in part, as applicable), all without presentment, demand,
protest or notice of any kind. Agent shall promptly advise Borrower of any such declaration, but
failure to do so shall not impair the effect of such declaration. Notwithstanding the foregoing,
the effect as an Event of Default of any event described in Section 8.1.1 may only be waived by
the written concurrence of each Lender, and the effect as an Event of Default of any other event
described in this Section 8 may be waived by the written concurrence of Required Lenders. Any cash
collateral delivered hereunder shall be applied by Agent to any remaining Obligations and any
excess remaining after the Obligations shall have been Paid in Full shall be delivered to Borrower
or as a court of competent jurisdiction may elect.

47

 

Section 9.
 Agent.

     
     9.1. Appointment; Authorization.

          (a) Each Lender hereby irrevocably appoints, designates and authorizes Agent to take such
action on its behalf under the provisions of this Agreement and each other Loan Document and to
exercise such powers and perform such duties as are expressly delegated to it by the terms of this
Agreement or any other Loan Document, together with such powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in
any other Loan Document, Agent shall not have any duty or responsibility except those expressly
set forth herein, nor shall Agent have or be deemed to have any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Loan Document or otherwise exist against Agent.

          9.2. Delegation of Duties.

     Agent may execute any of its duties under this Agreement or any other Loan Document by or
through agents, employees or attorneys in fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. Agent shall not be responsible for the
negligence or misconduct of any agent or attorney in fact that it selects with reasonable care.

          9.3. Limited Liability.

     None of Agent or any of its directors, officers, employees or agents shall (a) be liable for
any action taken or omitted to be taken by any of them under or in connection with this Agreement
or any other Loan Document or the transactions contemplated hereby (except to the extent resulting
from its own gross negligence or willful misconduct as determined by a court of competent
jurisdiction), or (b) be responsible in any manner to any Lender for any recital, statement,
representation or warranty made by any Loan Party or Affiliate of any Loan Party, or any officer
thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report,
statement or other document referred to or provided for in, or received by Agent under or in
connection with, this Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan Document (or the
creation, perfection or priority of any Lien or security interest therein), or for any failure of
any Loan Party or any other party to any Loan Document to perform its Obligations hereunder or
thereunder. Agent shall not be under any obligation to any Lender to ascertain or to inquire as to
the observance or performance of any of the agreements contained in, or conditions of, this
Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan
Party or Affiliate of any Loan Party.

          9.4. Reliance.

     Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing,
resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or
telephone message, statement or other document believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including counsel to any Loan Party), independent accountants and other experts

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selected by Agent. Agent shall be fully justified in failing or refusing to take any action under
this Agreement or any other Loan Document unless it shall first receive such advice or concurrence
of Required Lenders (or all Lenders if expressly required hereunder) as it deems appropriate and,
if it so requests, confirmation from Lenders of their obligation to indemnify Agent against any
and all liability and expense which may be incurred by it by reason of taking or continuing to
take any such action. Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement or any other Loan Document in accordance with a request or consent of
Required Lenders (or all Lenders if expressly required hereunder) and such request and any action
taken or failure to act pursuant thereto shall be binding upon each Lender.

          9.5. Notice of Default.

     Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of
Default or Default except with respect to defaults in the payment of principal, interest and fees
required to be paid to Agent for the account of Lenders, unless Agent shall have received written
notice from a Lender or Borrower referring to this Agreement, describing such Event of Default or
Default and stating that such notice is a “notice of default”. Agent will notify Lenders of its
receipt of any such notice or any such default in the payment of principal, interest and fees
required to be paid to Agent for the account of Lenders. Agent shall take such action with respect
to such Event of Default or Default as may be requested by Required Lenders in accordance with
Section 8; provided that unless and until Agent has received any such request, Agent may
(but shall not be obligated to) take such action, or refrain from taking such action, with respect
to such Event of Default or Default as it shall deem advisable or in the best interest of Lenders.

          9.6. Credit Decision.

     Each Lender acknowledges that Agent has not made any representation or warranty to it, and
that no act by Agent hereafter taken, including any review of the affairs of Borrower and the
other Loan Parties, shall be deemed to constitute any representation or warranty by Agent to any
Lender. Each Lender represents to Agent that it has, independently and without reliance upon Agent
and based on such documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, prospects, operations, property, financial and other
condition and creditworthiness of Borrower and the other Loan Parties, and made its own decision
to enter into this Agreement and to extend credit to Borrower hereunder. Each Lender also
represents that it will, independently and without reliance upon Agent and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action under this Agreement and the
other Loan Documents, and to make such investigations as it deems necessary to inform itself as to
the business, prospects, operations, property, financial and other condition and creditworthiness
of the Loan Parties. Except for notices, reports and other documents expressly herein required to
be furnished to Lenders by Agent, Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, prospects, operations,
property, financial or other condition or creditworthiness of any Loan Party which may come into
the possession of Agent.

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          9.7. Indemnification.

     Whether or not the transactions contemplated hereby are consummated, each Lender shall
indemnify upon demand Agent and its directors, officers, employees and agents (to the extent not
reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so),
based on such Lender’s Pro Rata Share, from and against any and all actions, causes of action,
suits, losses, liabilities, damages and expenses, including Legal Costs, except to the extent any
thereof result from the applicable Person’s own gross negligence or willful misconduct, as
determined by a court of competent jurisdiction. Without limitation of the foregoing, each Lender
shall reimburse Agent upon demand for its ratable share of any costs or out of pocket expenses
(including Legal Costs) incurred by Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the
extent that Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking
in this Section 9.7 shall survive repayment of the Loan, cancellation of the Notes, any foreclosure
under, or modification, release or discharge of, any or all of the Collateral Documents,
termination of this Agreement and the resignation or replacement of Agent.

          9.8. Agent Individually.

     Agent and its Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with any Loan Party and any Affiliate of
any Loan Party as though Agent were not Agent hereunder and without notice to or consent of any
Lender. Each Lender acknowledges that, pursuant to such activities, Agent or its Affiliates may
receive information regarding Loan Parties or their Affiliates (including information that may be
subject to confidentiality obligations in favor of any such Loan Party or such Affiliate) and
acknowledge that Agent shall be under no obligation to provide such information to them. With
respect to their portions of the Loan (if any), Agent and its Affiliates shall have the same
rights and powers under this Agreement as any other Lender and may exercise the same as though
Agent were not Agent, and the terms “Lender” and “Lenders” include Agent and its Affiliates, to
the extent applicable, in their individual capacities.

          9.9. Successor Agent.

     Agent may resign as Agent at any time upon 30 days’ prior notice to Lenders. If Agent resigns
under this Agreement, Required Lenders shall, with (so long as no Event of Default exists) the
consent of Borrower (which shall not be unreasonably withheld or delayed), appoint from among
Lenders a successor agent for Lenders. If no successor agent is appointed prior to the effective
date of the resignation of Agent, Agent may appoint, on behalf after consulting with Lenders and
(so long as no Event of Default exists) Borrower, a successor agent from among Lenders. Upon the
acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to
all the rights, powers and duties of the retiring Agent and the term “Agent” shall mean such
successor agent, and the retiring Agent’s appointment, powers and duties as Agent shall be
terminated. After any retiring Agent’s resignation hereunder as Agent, the

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provisions of this Section 9 and Sections 10.4 and 10.5 shall continue to
inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under
this Agreement. If no successor agent has accepted appointment as Agent by the date which is 30
days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall
nevertheless thereupon become effective and Lenders shall perform all of the duties of Agent
hereunder until such time, if any, as Required Lenders appoint a successor agent as provided for
above.

          9.10. Collateral Matters.

     Lenders irrevocably authorize Agent, at its option and in its discretion, (a) to release any
Lien granted to or held by Agent under any Collateral Document (i) when all Obligations have been
Paid in Full; (ii) constituting property sold or to be sold or disposed of as part of or in
connection with any sale or other disposition permitted hereunder (it being agreed and understood
that Agent may conclusively rely without further inquiry on a certificate of an officer of Borrower
as to the sale or other disposition of property being made in compliance with this Agreement); or
(iii) subject to Section 10.1, if approved, authorized or ratified in writing by Required
Lenders; or (b) to subordinate its interest in any Collateral to any holder of a Lien on such
Collateral which is permitted by clause (d)(i) or (d)(iii) of Section 7.2 (it being
understood that Agent may conclusively rely on a certificate from Borrower in determining whether
the Debt secured by any such Lien is permitted by Section 7.1(b)). Upon request by Agent at any
time, Lenders will confirm in writing Agent’s authority to release, or subordinate its interest in,
particular types or items of Collateral pursuant to this Section 9.10.

Section 10. Miscellaneous.

          10.1. Waiver; Amendments.

     No delay on the part of Agent or any Lender in the exercise of any right, power or remedy
shall operate as a waiver thereof, nor shall any single or partial exercise by any of them of any
right, power or remedy preclude other or further exercise thereof, or the exercise of any other
right, power or remedy. No amendment, modification or waiver of, or consent with respect to, any
provision of this Agreement, the Notes or any of the other Loan Documents (or any subordination
and intercreditor agreement or other subordination provisions relating to any other Debt) shall in
any event be effective unless the same shall be in writing and approved by Lenders having
aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares expressly designated
herein with respect thereto or, in the absence of such designation as to any provision of this
Agreement, by Required Lenders, and then any such amendment, modification, waiver or consent shall
be effective only in the specific instance and for the specific purpose for which given. No
amendment, modification, waiver or consent shall increase any Commitment, extend the date
scheduled for payment of any principal of (except as set forth below) or interest on the Loan or
any fees or other amounts payable hereunder or under the other Loan Documents or reduce the
principal amount of the Loan, the amount or rate of interest thereon (provided, that Required
Lenders may rescind an imposition of default interest pursuant to Section 2.4.1) or any
fees or other amounts payable hereunder or under the other Loan Documents, without, in each case,
the consent of each Lender directly affected thereby. No amendment, modification, waiver or
consent shall release any party from its guaranty under the Guarantee and Collateral Agreement or
all or any substantial part of the Collateral granted under the Collateral

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Documents, change the definition of Required Lenders, change any provision of this Section
10.1, change the provisions of Section 2.8.2 or reduce the aggregate Pro Rata Share
required to effect any amendment, modification, waiver or consent, without, in each case, the
consent of all Lenders. No provision of Section 9 or other provision of this Agreement affecting
Agent in its capacity as such shall be amended, modified or waived without the consent of Agent.

   
       10.2. Notices.

     All
notices hereunder shall be in writing (including facsimile transmission) and shall be sent
to the applicable party at its address shown on Annex II or at such other address as such
party may, by written notice received by the other parties, have designated as its address for such
purpose. Notices sent by facsimile transmission shall be deemed to have been given when sent;
notices sent by mail shall be deemed to have been given three Business Days after the date when
sent by registered or certified mail, postage prepaid; and notices sent by hand delivery or
overnight courier service shall be deemed to have been given when received. Borrower and Lenders
each hereby acknowledge that, from time to time, Agent may deliver information and notices to
Lenders using the internet service “Intralinks” or any similar service. Each of Borrower and each
Lender hereby agree that Agent may, in its discretion, utilize Intralinks or any similar service
for such purpose.

          10.3. Computations.

     Unless otherwise specifically provided herein, any accounting term used in this Agreement
(including in Section 7.14 or any related definition) shall have the meaning customarily
given such term in accordance with GAAP, and all financial computations (including pursuant to
Section 7.14 and the related definitions, and with respect to the character or amount of
any asset or liability or item of income or expense, or any consolidation or other accounting
computation) hereunder shall be computed in accordance with GAAP consistently applied; provided
that if Borrower notifies Agent that Borrower wishes to amend any covenant in Section 7.14 (or any
related definition) to eliminate or to take into account the effect of any change after the Closing
Date in GAAP on the operation of such covenant (or if Agent notifies Borrower that Required Lenders
wish to amend Section 7.14 (or any related definition) for such purpose), then Borrower’s
compliance with such covenant shall be determined on the basis of GAAP in effect immediately before
the relevant change in GAAP became effective, until either such notice is withdrawn or such
covenant (or related definition) is amended in a manner satisfactory to Borrower and Required
Lenders. The explicit qualification of terms or computations by the phrase “in accordance with
GAAP” shall in no way be construed to limit the foregoing.

          10.4. Costs; Expenses.

     Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses of Agent
(including Legal Costs) in connection with the preparation, execution, syndication, delivery and
administration (including perfection and protection of Collateral) of this Agreement, the other
Loan Documents and all other documents provided for herein or delivered or to be delivered
hereunder or in connection herewith (including any proposed or actual amendment, supplement or
waiver to any Loan Document), and all reasonable out-of-pocket costs and

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expenses (including Legal Costs) incurred by Agent and each Lender after an Event of Default in
connection with the collection of the Obligations and enforcement of this Agreement, the other Loan
Documents or any such other documents; provided, however, that notwithstanding the foregoing, the
Borrower shall not be required to reimburse the Agent or Lenders for expenses incurred on or prior
to the Closing Date by the Agent and Lenders in connection with the preparation, execution and
delivery of the Loan Documents in an aggregate amount in excess of $100,000. In addition, Borrower
agrees to pay, and to save Agent and Lenders harmless from all liability for, any fees of
Borrower’s auditors in connection with any reasonable exercise by Agent and Lenders of their rights
pursuant to Section 6.2. All Obligations provided for in this Section 10.4 shall
survive repayment of the Loan, cancellation of the Notes and termination of this Agreement.

          10.5. Indemnification by Borrower.

     In consideration of the execution and delivery of this Agreement by Agent and Lenders and the
agreement to extend the Commitments provided hereunder, Borrower hereby agrees to indemnify,
exonerate and hold Agent, each Lender and each of the officers, directors, employees, Affiliates
and agents of Agent and each Lender (each a “Lender Party”) free and harmless from and
against any and all actions, causes of action, suits, losses, liabilities (including, without
limitation, strict liabilities), damages, fines, penalties and expenses, including Legal Costs
(collectively, the “Indemnified Liabilities”), incurred by Lender Parties or any of them as
a result of, or arising out of, or relating to (a) any repayment of Debt, tender offer, merger,
purchase of equity interests, purchase of assets or other similar or dissimilar transaction
financed or proposed to be financed in whole or in part, directly or indirectly, with the proceeds
of the Loan, (b) the generation, use, handling, recycling, reclamation, release, emission,
discharge, transportation, storage, treatment or disposal of any Hazardous Substance at any
property owned or leased by Borrower or any other Loan Party, (c) any violation of or liability
under any Environmental Laws or any Environmental Claim with respect to conditions at any property
owned or leased by any Loan Party or the operations conducted thereon, (d) the investigation,
cleanup or remediation of offsite locations at which any Loan Party or their respective
predecessors are alleged to have directly or indirectly released or disposed of Hazardous
Substances and any related Environmental Claims or (e) the execution, delivery, performance or
enforcement of this Agreement or any other Loan Document by any Lender Party, except to the extent
any such Indemnified Liabilities result from the applicable Lender Party’s own gross negligence or
willful misconduct as determined by a court of competent jurisdiction. If and to the extent that
the foregoing undertaking may be unenforceable for any reason, Borrower hereby agrees to make the
maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which
is permissible under applicable law. All Obligations provided for in this Section 10.5
shall survive repayment of the Loan, cancellation of the Notes, any foreclosure under, or any
modification, release or discharge of, any or all of the Collateral Documents and termination of
this Agreement.

          10.6.
Marshaling; Payments Set Aside.

     Neither Agent nor any Lender shall be under any obligation to marshal any assets in favor of
Borrower or any other Person or against or in payment of any or all of the Obligations. To the
extent that Borrower makes a payment or payments to Agent or any Lender, or Agent or

53

 

any Lender enforces its Liens or exercises its rights of set-off, and such payment or payments or
the proceeds of such enforcement or set-off or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by Agent or any Lender in its discretion) to be repaid to a trustee,
receiver or any other party in connection with any bankruptcy, insolvency or similar proceeding, or
otherwise, then (a) to the extent of such recovery, the obligation hereunder or part thereof
originally intended to be satisfied shall be revived and continued in full force and effect as if
such payment had not been made or such enforcement or setoff had not occurred and (b) each Lender
severally agrees to pay to Agent upon demand its ratable share of the total amount so recovered
from or repaid by Agent to the extent paid to such Lender.

          10.7. Nonliability of Lenders.

     The relationship between Borrower on the one hand and Lenders and Agent on the other hand
shall be solely that of borrower and lender. Neither Agent nor any Lender shall have any fiduciary
responsibility to Borrower. Neither Agent nor any Lender undertakes any responsibility to Borrower
to review or inform Borrower of any matter in connection with any phase of Borrower’s business or
operations. Execution of this Agreement by Borrower constitutes a full, complete and irrevocable
release of any and all claims which Borrower may have at law or in equity in respect of all prior
discussions and understandings, oral or written, relating to the subject matter of this Agreement
and the other Loan Documents. Neither Agent nor any Lender shall have any liability with respect
to, and Borrower hereby waives, releases and agrees not to sue for, any special, indirect,
punitive or consequential damages or liabilities.

          10.8. Assignments; Participations.

          10.8.1. Assignments.

          (a) Any Lender may at any time assign to one or more Persons (any such Person, an
“Assignee”) all or any portion of such Lender’s share of the Loan, with the prior written
consent of Agent and, so long as no Event of Default exists, Borrower (which consents shall not be
unreasonably withheld or delayed and shall not be required for an assignment by a Lender to a
Lender or an Affiliate of a Lender or an Approved Fund of a Lender). Except as Agent may otherwise
agree, any such assignment (other than any assignment by a Lender to a Lender or an Affiliate or
Approved Fund of a Lender) shall be in a minimum aggregate amount equal to $2,500,000 or, if less,
the entire principal amount of the Loan being assigned. Borrower and Agent shall be entitled to
continue to deal solely and directly with such Lender in connection with the interests so assigned
to an Assignee until Agent shall have received and accepted an effective Assignment Agreement
executed, delivered and fully completed by the applicable parties thereto and a processing fee of
$3,500 to be paid by the Lender to whom such interest is assigned; provided, that no such fee
shall be payable in connection with any assignment by a Lender to a Lender or an Affiliate or
Approved Fund of a Lender. Any attempted assignment not made in accordance with this Section
10.8.1 shall be treated as the sale of a participation under Section 10.8.2. Borrower
shall be deemed to have granted its consent to any assignment requiring its consent hereunder
unless Borrower has expressly objected to such assignment within three Business Days after notice
thereof.

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          (b) From and after the date on which the conditions described above have been met, (i) such
Assignee shall be deemed automatically to have become a party hereto and, to the extent that
rights and obligations hereunder have been assigned to such Assignee pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder and (ii) the assigning
Lender, to the extent that rights and obligations hereunder have been assigned by it pursuant to
such Assignment Agreement, shall be released from its rights (other than its indemnification
rights) and obligations hereunder. Upon the request of the Assignee (and, as applicable, the
assigning Lender) pursuant to an effective Assignment Agreement, Borrower shall execute and
deliver to Agent for delivery to the Assignee (and, as applicable, the assigning Lender) a Note in
the principal amount of the Assignee’s Pro Rata Share of the Loan. Each such Note shall be dated
the effective date of such assignment. Upon receipt by the assigning Lender of such Note, the
assigning Lender shall return to Borrower any prior Note held by it.

          (c) Agent, acting solely for this purpose as an agent of Borrower, shall maintain at one of
its offices in the United States a copy of each Assignment Agreement delivered to it and a register
for the recordation of the names and addresses of each Lender, and principal amount of the Loan
owing to, such Lender pursuant to the terms hereof. The entries in such register shall be
conclusive, and Borrower, Agent and Lenders may treat each Person whose name is recorded therein
pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. Such register shall be available for inspection by Borrower
and any Lender, at any reasonable time upon reasonable prior notice to Agent.

          (d) Notwithstanding the foregoing provisions of this Section 10.8.1 or any other
provision of this Agreement, any Lender may at any time assign all or any portion of its Pro Rata
Share of the Loan and its Note (i) as collateral security to a Federal Reserve Bank or, as
applicable, to such Lender’s trustee for the benefit of its investors (but no such assignment
shall release any Lender from any of its obligations hereunder) and (ii) to (w) an Affiliate of
such Lender which is at least 50% owned (directly or indirectly) by such Lender or by its direct
or indirect parent company, (x) its direct or indirect parent company, (y) to one or more other
Lenders or (z) to a Approved Fund.

          10.8.2. Participations.

     Any Lender may at any time with, so long as no Event of Default is continuing and such Lender
intends to sell more than 50% of its Pro Rata Share (as of such date) of the Loan, Commitments or
other interests hereunder, the consent of the Borrower sell to one or more Persons participating
interests in its Pro Rata Share of the Loan, Commitments or other interests hereunder (any such
Person, a “Participant”). In the event of a sale by a Lender of a participating interest
to a Participant, (a) such Lender’s obligations hereunder shall remain unchanged for all purposes,
(b) Borrower and Agent shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations hereunder and (c) all amounts payable by Borrower shall
be determined as if such Lender had not sold such participation and shall be paid directly to such
Lender. Borrower agrees that if amounts outstanding under this Agreement are due and payable (as a
result of acceleration or otherwise), each Participant shall be deemed to have the right of
set-off in respect of its participating interest in amounts owing under this Agreement to the same
extent as if the amount of its participating interest were owing directly to

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it as a Lender under this Agreement; provided that such right of set-off shall be subject to the
obligation of each Participant to share with Lenders, and Lenders agree to share with each
Participant, as provided in Section 2.8.5. Borrower also agrees that each Participant shall
be entitled to the benefits of Section 3 and Section 10.5 as if it were a Lender.

          10.9.
Confidentiality.

     Agent and each Lender agree to use commercially reasonable efforts (equivalent to the efforts
Agent or such Lender applies to maintain the confidentiality of its own confidential information)
to maintain as confidential all information provided to them by any Loan Party and designated as
confidential, except that Agent and each Lender may disclose such information (a) to Persons
employed or engaged by Agent or such Lender or any of their Affiliates (including collateral
managers of Lenders) in evaluating, approving, structuring or administering the Loan and the
Commitments; (b) to any assignee or participant or potential assignee or participant that has
agreed to comply with the covenant contained in this Section 10.9 (and any such assignee or
participant or potential assignee or participant may disclose such information to Persons employed
or engaged by them as described in clause (a) above); (c) as required or requested by any federal
or state regulatory authority or examiner, or any insurance industry association, or as reasonably
believed by Agent or such Lender to be compelled by any court decree, subpoena or legal or
administrative order or process; (d) as, on the advice of Agent’s or such Lender’s counsel is
required by law; (e) in connection with the exercise of any right or remedy under the Loan
Documents or in connection with any litigation to which Agent or such Lender is a party; (f) to any
nationally recognized rating agency or investor of a Lender that requires access to information
about a Lender’s investment portfolio in connection with ratings issued or investment decisions
with respect to such Lender; (g) that ceases to be confidential through no fault of Agent or any
Lender; (h) to a Person that is an investor or prospective investor in a Securitization that agrees
that its access to information regarding Borrower and the Loan and Commitments is solely for
purposes of evaluating an investment in such Securitization and who agrees to treat such
information as confidential; (i) to a Person that is a trustee, collateral manager, servicer,
noteholder or secured party in a Securitization in connection with the administration, servicing
and reporting on the assets serving as collateral for such Securitization; or (j) to a Person that
is an investor or prospective investor in Fourth Third or any of its Affiliates. For purposes of
this Section, “Securitization” means a public or private offering by a Lender or any of
its Affiliates or their respective successors and assigns, of securities which represent an
interest in, or which are collateralized, in whole or in part, by the Loan or the Commitments.
Notwithstanding the foregoing, Borrower consents to the publication by Agent or any Lender of a
tombstone or similar advertising material relating to the financing transactions contemplated by
this Agreement, and Agent reserves the right to provide to industry trade organizations information
necessary and customary for inclusion in league table measurements.

          10.10. Captions.

     Captions used in this Agreement are for convenience only and shall not affect the
construction of this Agreement.

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          10.11. Nature of Remedies.

     All Obligations of Borrower and rights of Agent and Lenders expressed herein or in any other
Loan Document shall be in addition to and not in limitation of those provided by applicable law. No
failure to exercise and no delay in exercising, on the part of Agent or any Lender, any right,
remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.

          10.12. Counterparts.

     This Agreement may be executed in any number of counterparts and by the different parties
hereto on separate counterparts and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same Agreement. Receipt by
telecopy of any executed signature page to this Agreement or any other Loan Document shall
constitute effective delivery of such signature page.

          10.13. Severability.

     The illegality or unenforceability of any provision of this Agreement or any instrument or
agreement required hereunder shall not in any way affect or impair the legality or enforceability
of the remaining provisions of this Agreement or any instrument or agreement required hereunder.

          10.14. Entire Agreement.

     This Agreement, together with the other Loan Documents, embodies the entire agreement and
understanding among the parties hereto and supersedes all prior or contemporaneous agreements and
understandings of such Persons, verbal or written, relating to the subject matter hereof and
thereof (except as relates to the fees described in Section 2.5.1) and any prior
arrangements made with respect to the payment by Borrower of (or any indemnification for) any
fees, costs or expenses payable to or incurred (or to be incurred) by or on behalf of Agent or
Lenders.

          10.15. Successors; Assigns.

     This Agreement shall be binding upon Borrower, Lenders and Agent and their respective
successors and assigns, and shall inure to the benefit of Borrower, Lenders and Agent and the
successors and assigns of Lenders and Agent. No other Person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in connection with, this
Agreement or any of the other Loan Documents. Borrower may not assign or transfer any of its
rights or Obligations under this Agreement without the prior written consent of Agent and each
Lender.

          10.16. Governing Law.

     THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK

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APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

          10.17. Forum Selection; Consent to Jurisdiction.

     ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY 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
AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE
FOUND. EACH LOAN PARTY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS
OF THE STATE OF NEW YORKAND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH LOAN PARTY FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE
WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH LOAN PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER 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.

          10.18.
Waiver of Jury Trial.

     EACH LOAN PARTY, AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN
DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE
BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING
IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE
TRIED BEFORE A COURT AND NOT BEFORE A JURY.

[signature pages follow]

58

 

     The parties hereto have caused this Agreement to be duly executed and delivered by their
duly authorized officers as of the date first set forth above.

DURANT BIOFUELS, LLC

	 	 	 	 	 
	By: 

Name:

	 	/s/ Dennis G. McLaughlin, III
 

Dennis G. McLaughlin, III
	 	 
	Title:

	 	CEO, Earth Biofuels, Inc., its sole and manager	 	 

EARTH
BIOFUELS, INC.

	 	 	 	 	 
	By: 

Name:

	 	/s/ Dennis G. McLaughlin, III
 

Dennis G. McLaughlin, III
	 	 
	Title:

	 	CEO	 	 

EARTH LNG, INC.

	 	 	 	 	 
	By: 

Name:

	 	/s/ John W. Morrison
 

John W. Morrison
	 	 
	Title:

	 	President	 	 

APPLIED
LNG TECHNOLOGIES USA, L.L.C.

	 	 	 	 	 
	By: 

Name:

	 	/s/ John W. Morrison
 

John W. Morrison
	 	 
	Title:

	 	President	 	 

FLEET STAR, INC.

	 	 	 	 	 
	By: 

Name:

	 	/s/ John W. Morrison
 

John W. Morrison
	 	 
	Title:

	 	President	 	 

[Durant Credit Agreement Signature page]

 

 

APOLLO LEASING, INC.

	 	 	 	 	 
	By: 

Name:

	 	/s/ John W. Morrison
 

John W. Morrison
	 	 
	Title:

	 	President	 	 

ARIZONA ING, L.L.C.

	 	 	 	 	 
	By: 

Name:

	 	/s/ John W. Morrison
 

John W. Morrison
	 	 
	Title:

	 	President	 	 

[Durant Credit Agreement Signature Page]

 

 

FOURTH THIRD LLC,

as Agent and a Lender

	 	 	 	 	 
	By: 

Title:

	 	/s/ Seth B. Taube
 

Authorized Signatory
	 	 

[Durant Credit Agreement Signature Page]

 

 

ANNEX I

Commitments and Pro Rata Shares

	 	 	 	 	 	 	 	 	 
	Lender	 	Loan Commitment	 	Pro Rata Share
	Fourth Third LLC
	 	$	9,000,000	 	 	 	100	%

I-1

 

Annex II

Addresses 

Loan Parties

Address for Notices:

3100 Knox Street, Suite 403

Dallas, Texas 75205

Attention:       Darren L. Miles

Telephone:     (214) 634-6291

Telecopy:       (214) 520-0507

FOURTH THIRD LLC,

as Agent and a Lender

Address for Notices:

Fourth Third Capital LLC

375 Park Avenue

Suite 3304

New York, New York 10152

Attention: Brian J. Cavanaugh

Chief Financial Officer

Telephone:       (212) 759-0777

Telecopier:       (212) 759-0091

copies to

King & Spalding LLP

1185 Avenue of the Americas

New York, New York 10036

Attention: Robert S. Finley

Telephone:      (212) 556-2142

Telecopier:      (212) 556-2222

Address for Payments:

	 	 	 
	Bank:

	 	First Republic Bank, New York Branch 79
	ABA:

	 	321-0816-69
	FFC:

	 	Fourth Third LLC
	A/C:

	 	979-0007-9652

II-1

 

	 	 	 
	Address:

	 	1230 Avenue of the Americas
	 

	 	New York, New York 10020

II-2

 

Exhibit A

Form of Assignment Agreement

     This Assignment Agreement (this “Assignment Agreement”) is entered into as of
                     by and between the Assignor named on the signature page hereto (“Assignor”) and
the Assignee named on the signature page hereto (“Assignee”). Reference is made to the
Credit Agreement dated as of March  , 2007 (as amended, supplemented, restated or otherwise
modified from time to time, the “Credit Agreement”) among DURANT BIOFUELS, LLC
(“Borrower”), the Loan Parties named therein, the financial institutions party thereto
from time to time, as Lenders, and FOURTH THIRD LLC, as Agent. Capitalized terms used herein and
not otherwise defined shall have the meanings assigned to them in the Credit Agreement.

Assignor and Assignee agree as follows:

1. Assignor hereby sells and assigns to Assignee, and Assignee hereby purchases and assumes from
Assignor the interests set forth on the schedule attached hereto, in and to Assignor’s rights and
obligations under the Credit Agreement and the other Loan Documents as of the Effective Date (as
defined below). Such purchase and sale is made without recourse, representation or warranty except
as expressly set forth herein.

2. Assignor (i) represents that as of the Effective Date, that it is the legal and beneficial
owner of the interests assigned hereunder free and clear of any adverse claim, (ii) makes no other
representation or warranty and assumes no responsibility with respect to any statement, warranties
or representations made in or in connection with the Credit Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit Agreement, any Loan
Documents or any other instrument or document furnished pursuant thereto; and (iii) makes no
representation or warranty and assumes no responsibility with respect to the financial condition
of any Loan Party or any other Person or the performance or observance by any Loan Party of its
Obligations under the Credit Agreement or the Loan Documents or any other instrument or document
furnished pursuant thereto.

3. Assignee (i) represents and warrants that it is legally authorized to enter into this
Assignment Agreement; (ii) confirms that it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant thereto and such other
documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment Agreement; (iii) agrees that it will, independently and
without reliance upon Agent, Assignor or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement; (iv) appoints and authorizes Agent to take
such action as agent on its behalf and to exercise such powers under the Credit Agreement as are
delegated to Agent by the terms thereof, together with such powers as are reasonably incidental
thereto; (v) agrees that it will perform in accordance with their terms all obligations which by
the terms of the Credit Agreement are required to be performed by it as a Lender; (vi) represents
that on the date of this Assignment Agreement it is not presently aware of any facts that would
cause it to make a claim under the Credit Agreement; and (vii) if organized under the laws of a
jurisdiction outside the United States, attaches the forms prescribed by the Internal

A-1

 

Revenue Service of the United States, which have been duly executed, certifying as to Assignee’s
exemption from United States withholding taxes with respect to all payments to be made to Assignee
under the Agreement or such other documents as are necessary to indicate that all such payments are
subject to such tax at a rate reduced by an applicable tax treaty.

4. The effective date for this Assignment Agreement shall be as set forth on the schedule attached
hereto (the “Effective Date”). Following the
execution of this Assignment Agreement, it
will be delivered to Agent for acceptance and recording by Agent pursuant to the Credit Agreement.

5. Upon such acceptance and recording, from and after the Effective Date, (i) Assignee shall be a
party to the Credit Agreement and, to the extent provided in this Assignment Agreement, have the
rights and obligations of a Lender thereunder and (ii) Assignor shall, to the extent provided in
this Assignment Agreement, relinquish its rights (other than indemnification rights) and be
released from its obligations under the Credit Agreement.

6. Upon such acceptance and recording, from and after the Effective Date, Agent shall make all
payments in respect of the interest assigned hereby (including payments of principal, interest,
fees and other amounts) to Assignee. Assignor and Assignee shall make all appropriate adjustments
in payments for periods prior to the Effective Date with respect to the making of this assignment
directly between themselves.

7. THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

8. This Assignment may be executed in any number of counterparts and by the different parties
hereto on separate counterparts and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same Assignment. Receipt by
telecopy of any executed signature page to this Assignment shall constitute effective delivery of
such signature page.

A-2

 

The parties hereto have caused this Agreement to be executed and delivered as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 

	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Consented to:	 	 
	 
	 	 	 	 	 	 
	 	 	FOURTH THIRD LLC,	 	 
	 	 	as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

A-3

 

Schedule to Assignment Agreement

	 	 	 	 	 	 	 
	Assignor:
	 	 	 	 	 	 
	 	 	   	 	 
	 
	 	 	 	 	 	 
	Assignee:
	 	 	 	 	 	 
	 	 	   	 	 
	 
	 	 	 	 	 	 
	Effective Date:	 	 	 	 
	 	 	   	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	Credit Agreement dated as of March  , 2007 among Durant
Biofuels, LLC, the other Loan Parties named therein, the
financial institutions party thereto from time to time, as
Lenders, and FOURTH THIRD LLC, as
Agent

Interests Assigned:

	 	 	 	 	 
	Loan	Loan
	Assignor Amounts
	 	$	 	 
	Amounts Assigned
	 	$	 	 
	Assignee Amounts (post-assignment)
	 	$	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Assignee Information:	 	 	 	 	 	 	 	 
	Address for Notices:	 	 	 	Address for Payments:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Bank:	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	ABA#:	 	 	 	 
	Attention:

	 	 	 	 	 	Account#:
	 	 

	 	 
	Telephone:

	 	 

	 	 
	 	Reference:
	 	 

	 	 
	Telecopy:

	 	 

	 	 
	 	 	 	 

	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

A-4

 

Exhibit B

Form of Compliance Certificate

     Please
refer to the Credit Agreement dated as of
March      , 2007 (as amended, supplemented,
restated or otherwise modified from time to time, the “Credit Agreement”) among the
undersigned (“Borrower”), the financial institutions party thereto and FOURTH THIRD LLC, as
Agent. This certificate (this “Certificate”), together with supporting calculations attached
hereto, is delivered to Agent and Lenders pursuant to the terms of the Credit Agreement. Terms used
but not otherwise defined herein are used herein as defined in the Credit Agreement.

     [Enclosed herewith is a copy of the [annual audited/monthly] report of Borrower as
at                                      (the “Computation Date”), which report fairly presents in all
material respects the financial condition and results of operations [(subject to the absence of
footnotes and to normal year-end adjustments)] of Borrower as of the Computation Date and has been
prepared in accordance with GAAP consistently applied.]

     Borrower hereby certifies and warrants that the computations set forth on the schedule
attached hereto correspond to the ratios and/or financial restrictions contained in the Credit
Agreement and such computations are true and correct as at the [Computation Date].

     Borrower further certifies that no Event of Default or Default has occurred and is
continuing.

     Borrower has caused this Certificate to be executed and delivered by its officer thereunto
duly authorized on                                        .

	 	 	 	 	 	 	 
	 	 	DURANT BIOFUELS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 

	 	 
	 

	 	 	 	 	 	 

B-1

 

Schedule to Compliance Certificate

Dated as of                                   

	 	 	 	 	 
	A.

	 	Section 7.14.1 – Minimum Fixed Charge
Coverage Ratio	 	 
	 
	 	 	 	 
	1.

	 	Consolidated Net Income
	 	$                    
	 
	 	 	 	 
	2.

	 	Plus: Interest Expense
	 	$                    
	 

	 	income tax expense
	 	$                    
	 

	 	depreciation
	 	$                    
	 

	 	amortization	 	$                    
	 

	 	management fees
	 	$                    
	 
	 	 	 	 
	3.

	 	Total (EBITDA)
	 	$                    
	 
	 	 	 	 
	4.

	 	Income taxes paid/tax distributions
	 	$                    
	 
	 	 	 	 
	5.

	 	Capital Expenditures
	 	$                    
	 
	 	 	 	 
	6.

	 	Sum of (4) and (5)
	 	$                    
	 
	 	 	 	 
	7.

	 	Remainder of (3) minus (6)
	 	$                    
	 
	 	 	 	 
	8.

	 	Interest Expense accrued and payable in cash
	 	$                    
	 
	 	 	 	 
	9.

	 	Required payments of principal of Debt
(including The Loan)
	 	$                    
	 
	 	 	 	 
	10.

	 	Management Fees
	 	$                    
	 
	 	 	 	 
	11.

	 	Sum of (8), (9) and (10)
	 	$                    
	 
	 	 	 	 
	12.

	 	Ratio of (7) to (11)
	 	___ to l
	 
	 	 	 	 
	13.

	 	Minimum Required
	 	___ to 1
	 
	 	 	 	 
	B.

	 	Section 7.14.2-Minimum EBITDA	 	 
	 
	 	 	 	 
	1.

	 	EBITDA
	 	$                    
	 

	 	(from Item A(3) above)	 	 
	 
	 	 	 	 
	2.

	 	Minimum required
	 	$                    

B-2

 

Exhibit C

Form of Note

			
	 	 	 
	$                                        
	 	New York, New York

     The undersigned (“Borrower”), for value received, promises to pay to the order of                                         
(“Lender”) at the principal office of FOURTH THIRD
LLC (the “Agent”) in
New York City, New York the aggregate unpaid amount of the Loan made to Borrower by Lender
pursuant to the Credit Agreement referred to below, such principal amount to be payable on the
dates set forth in the Credit Agreement.

     Borrower further promises to pay interest on the unpaid principal amount of the Loan from the
date of such Loan until such Loan is Paid in Full, payable at the rate(s) and at the time(s) set
forth in the Credit Agreement. Payments of both principal and interest are to be made in lawful
money of the United States of America to the deposit account located in New York City and
identified in the Credit Agreement.

     This Note evidences indebtedness incurred under, and is subject to the terms and provisions
of, the Credit Agreement, dated as of March  , 2007 (as amended, supplemented, restated or
otherwise modified from time to time, the “Credit Agreement”; terms not otherwise defined
herein are used herein as defined in the Credit Agreement), among Borrower, the other Loan Parties
named therein, the financial institutions (including Lender) party thereto from time to time and
Agent, to which Credit Agreement reference is hereby made for a statement of the terms and
provisions under which this Note may or must be paid prior to its due date or its due date
accelerated.

     This Note is made under and governed by the laws of the State of New York applicable to
contracts made and to be performed entirely within such State.

	 	 	 	 	 	 	 
	 	 	DURANT BIOFUELS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 

	 	 
	 

	 	 	 	 	 	 

C-1

 

Execution Copy

AMENDMENT NO. 1

     This AMENDMENT NO. 1, dated as of March 23, 2007 (the “Amendment”), is entered into by
and among Earth LNG, Inc., a Texas corporation (the “Borrower”), the other persons
designated as “Loan Parties” on the signature pages hereto (the “Loan Parties”), and Fourth
Third LLC, a Delaware corporation, as agent for the Lenders (the “Agent”) and as a Lender.

     WHEREAS, the Borrower, the Loan Parties, the Lenders (as defined therein) and Agent are party
to a certain Credit Agreement, dated as of February 28, 2007 (as heretofore amended, restated,
supplemented or otherwise modified, the “Credit Agreement”); all capitalized terms
defined in the Credit Agreement and not otherwise defined herein shall have the meanings assigned
thereto in the Credit Agreement); and

     WHEREAS, the Borrower has requested that the Required Lenders agree to amend the Credit
Agreement in certain respects as set forth below; and

     WHEREAS, the Required Lenders are willing to agree to such requests and enter into this
Amendment upon the terms and conditions provided herein.

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the Borrower, the Loan Parties, the Required Lenders and the Agent agree as
follows:

SECTION 1.

ADDITIONAL DEFINED TERMS

     The capitalized terms set forth in Section 2(a) below shall have the meanings
when used herein as set forth therein.

SECTION 2.

AMENDMENTS

     Subject to the satisfaction of the conditions to effectiveness referred to in Section
3 below, the Borrower, the Loan Parties, the Required Lenders and the Agent agree that the
Credit Agreement is hereby amended as follows:

     (a) Section
1.1 of the Credit Agreement is amended by adding each of the
following
definitions in its proper alphabetical place:

     “Durant Credit Agreement” means the Credit Agreement, dated as of March 23,
2007, among Durant Biofuels, LLC, the other loan parties named therein, the lenders named
therein and Agent, as amended, restated or otherwise modified from time to time.

     (b) The definition of “Net Cash Proceeds” appearing in Section 1.1 of the
Credit Agreement
is amended by adding the text “of Borrower or of Durant Biofuels, LLC” immediately following
the text “Parent, Borrower or any Subsidiary” appearing in clause (b) thereof.

 

 

2

     (c) Section
8.1.2 of the Credit Agreement is hereby amended by adding the text “Event
of Default shall occur and be continuing under the Durant Credit Agreement, or any” immediately
following the word “Any” appearing as the first word of such section.

     (d) The following new Section 10.19 is hereby added to the Credit Agreement
immediately following Section 10.18 thereof:

     10.19 Collateral Agent. Each Lender hereby appoints Fourth Third LLC
as its collateral agent under the Guarantee and Collateral Agreement and agrees that in so
acting Fourth Third LLC will have all the rights, protections, exculpations, indemnities
and other benefits provided to Fourth Third LLC under Section 9 hereof, and
authorizes and directs Fourth Third LLC to take or refrain from taking any and all action
that it deems necessary or advisable in fulfilling its role as Collateral Agent under the
Guarantee and Collateral Agreement.

SECTION 3.

CONDITIONS TO EFFECTIVENESS

     This Amendment shall become effective on the date (the “Effective Date”) on
which the following conditions are satisfied in full:

     (a) the Agent shall have received one or more counterparts of this Amendment executed and
delivered by the Borrower, the other Loan Parties, the Agent and the Required Lenders;

     (b) each the conditions precedent set forth in Section 4 of the Durant Credit
Agreement shall have been satisfied, and Durant Biofuels, LLC shall have received term loans
thereunder in the aggregate principal amount of $9,000,000;

     (c) no Default or Event of Default is continuing or would result after giving effect to this
Amendment; and

     (d) all representations and warranties of the Loan Parties contained in this Amendment and in
the Credit Agreement shall be true and correct in all material respects as of the date hereof and
as of the Effective Date, except to the extent such representations and warranties relate to a
specific date.

SECTION 4.

LIMITATION ON SCOPE

     Except as expressly amended hereby, all of the representations, warranties, terms, covenants
and conditions of the Loan Documents shall remain in full force and effect in accordance with
their respective terms. The amendments set forth herein shall be limited precisely as provided for
herein and shall not be deemed to be waivers of, amendments of, consents to or modifications of
any term or provision of the Loan Documents or any other document or instrument referred to
therein or of any transaction or further or future action on the part of the Borrower or any other
Loan Party requiring the consent of the Agent or the Lenders except to the extent specifically
provided for herein. Except as expressly set forth herein, the Agent and the Lenders have not and
shall not be deemed to have waived any of their respective rights and remedies against the
Borrower or any other Loan Party for any existing or future Defaults or Event of Default.

SECTION 5.

MISCELLANEOUS

 

3

     (a) The Borrower and the other Loan Parties hereby represent and warrant that this Amendment
has been duly authorized and executed by the Borrower and each of the other Loan Parties and that
the Credit Agreement, as amended by this Amendment, is the legal, valid and binding obligation of
the Borrower and the other Loan Parties party thereto, enforceable in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors rights generally and by general
equitable principles (whether enforcement is sought by proceedings in law or in equity).

     (b) Each of the Borrower and the other Loan Parties repeats and restates the representations
and warranties of such Person contained in the Credit Agreement as of the date of this Amendment
and as of the Effective Date, except to the extent such representations and warranties relate to a
specific date; provided that references to the Credit Agreement or “this Agreement” in
such representations and warranties shall be deemed to be references to the Credit Agreement as
amended pursuant to this Amendment.

     (c) The Borrower and the other Loan Parties hereby ratify and confirm the Credit Agreement as
amended hereby, and agree that, as amended hereby, the Credit Agreement remains in full force and
effect.

     (d) The Borrower and the other Loan Parties agree that the Loan Documents to which each such
Person is a party remain in full force and effect (as amended hereby in the case of the Credit
Agreement) notwithstanding the execution and delivery of this Amendment and that nothing contained
in this Amendment shall constitute a defense to the enforcement of any Loan Document.

     (e) This Amendment may be executed by the parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all of which counterparts
together shall constitute but one and the same instrument.

     (f) All references in the Loan Documents to the “Credit Agreement” and in the Credit
Agreement as amended hereby to “this Agreement,” “hereof,” “herein” or the like shall mean and
refer to the Credit Agreement as amended by this Amendment (as well as by all subsequent
amendments, restatements, modifications and supplements thereto).

     (g) THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES
(OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     (h) This Amendment is a “Loan Document” and each of the provisions set forth in Section
10 (Miscellaneous) of the Credit Agreement applies to this Amendment to the
same extent such provision applies to any other Loan Document.

     (i) Each of the following provisions of the Credit Agreement is hereby incorporated herein
by this reference with the same effect as though set forth in its entirety herein, mutatis
mutandis, and as if “this Agreement” in any such provision read “this Amendment”:
Section 10.2 (Notices), Section 10.10 (Captions), Section 10.13
(Severability), Section 10.14 (Entire Agreement), Section 10.15 (Successors and
Assigns), Section 10.17 (Forum Selection; Consent to Jurisdiction) and Section
10.18 (Waiver of Jury Trial).

[SIGNATURE PAGE FOLLOWS]

 

 

     WITNESS the due execution hereof by the respective duly authorized officers of the undersigned
as of the date first written above.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	EARTH LNG, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ Dennis G. McLaughlin ]
 

	 	 
	 

	 	Title:
	 	CEO
 

	 	 
	 
	 	 	 	 	 	 
	 	 	LOAN PARTIES:	 	 
	 
	 	 	 	 	 	 
	 	 	EARTH BIOFUELS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ Dennis G. McLaughlin ]
 

	 	 
	 

	 	Title:
	 	CEO
 

	 	 
	 
	 	 	 	 	 	 
	 	 	APPLIED LNG TECHNOLOGIES USA, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ John W. Marrison ]
 

	 	 
	 

	 	Title:
	 	President
 

	 	 
	 
	 	 	 	 	 	 
	 	 	FLEET STAR, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ John W. Morrison ]
 

	 	 
	 

	 	Title:
	 	President
 

	 	 
	 
	 	 	 	 	 	 
	 	 	APOLLO LEASING,INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ John W. Morrison ]
 

	 	 
	 

	 	Title:
	 	President
 

	 	 
	 
	 	 	 	 	 	 
	 	 	ARIZONA LNG, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

	 	/s/ [ John W. Morrison ]
 

	 	 
	 

	 	Title:
	 	President
 

	 	 

[Amendment No. 1 to Earth LNG Credit Agreement]

 

 

	 	 	 	 	 
	 	AGENT AND LENDERS:

FOURTH THIRD LLC,

as Agent and a Lender

 	 
	 	By:  	/s/ Seth B. Taube
 	 
	 	 	Name:  	Seth B. Taube 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Amendment No. 1 to Earth LNG Credit Agreement]

 

 

Execution Copy

AMENDED AND RESTATED 

GUARANTEE AND COLLATERAL AGREEMENT

DATED AS OF MARCH 23, 2007

BY

DURANT
BIOFUELS, LLC

EARTH
BIOFUELS, INC.

EARTH LNG, INC.

APPLIED LNG TECHNOLOGIES USA, L.L.C.

FLEET STAR, INC.

APOLLO LEASING, INC.

AND

ARIZONA LNG, L.L.C.

AS GRANTORS,

IN FAVOR OF

FOURTH THIRD LLC,

AS AGENT

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	Section 1.	 	Definitions	 	 	2	 
	 

	 	 	1.01.	 	 	Definition of Terms Used Herein Generally
	 	 	2	 
	 

	 	 	1.02.	 	 	Definition of Certain Terms Used Herein
	 	 	2	 
	 

	 	 	1.03.	 	 	Rules of Interpretation
	 	 	8	 
	Section 2.	 	Guarantee	 	 	8	 
	 

	 	 	2.01.	 	 	Guarantee
	 	 	8	 
	 

	 	 	2.02.	 	 	Right of Contribution
	 	 	9	 
	 

	 	 	2.03.	 	 	Subrogation
	 	 	9	 
	 

	 	 	2.04.	 	 	Amendments, etc. with respect to the
Borrower Obligations
	 	 	9	 
	 

	 	 	2.05.	 	 	Guarantee Absolute and Unconditional
	 	 	10	 
	 

	 	 	2.06.	 	 	Reinstatement
	 	 	10	 
	 

	 	 	2.07.	 	 	Payments
	 	 	11	 
	 

	 	 	2.08.	 	 	Waiver of Subrogation
	 	 	11	 
	Section 3.	 	Grant of Security Interest	 	 	13	 
	Section 4.	 	Authorization to File Financing Statements	 	 	14	 
	Section 5.	 	Relation to Other Security Documents	 	 	14	 
	 

	 	 	5.01.	 	 	Real Estate Documents
	 	 	14	 
	 

	 	 	5.02.	 	 	Patent and Trademark Security Agreement Supplements
	 	 	14	 
	Section 6.	 	Representations and Warranties	 	 	15	 
	 

	 	 	6.01.	 	 	Grantors’ Legal Status
	 	 	15	 
	 

	 	 	6.02.	 	 	Grantors’ Legal Names
	 	 	15	 
	 

	 	 	6.03.	 	 	Grantors’ Locations
	 	 	15	 
	 

	 	 	6.04.	 	 	Representations in the Credit Agreements
	 	 	15	 
	 

	 	 	6.05.	 	 	Title to Collateral
	 	 	15	 
	 

	 	 	6.06.	 	 	Nature of Collateral
	 	 	15	 
	 

	 	 	6.07.	 	 	Compliance with Laws
	 	 	16	 
	 

	 	 	6.08.	 	 	Validity of Security Interest
	 	 	16	 
	 

	 	 	6.09.	 	 	Perfection Certificate; Intellectual
Property Filings
	 	 	16	 
	 

	 	 	6.10.	 	 	Investment Property
	 	 	17	 
	 

	 	 	6.11.	 	 	Receivables
	 	 	17	 
	 

	 	 	6.12.	 	 	Accounts
	 	 	17	 
	 

	 	 	6.13.	 	 	Equipment and Inventory
	 	 	17	 

-i-

 

 

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(continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	Section 7.	 	Covenants	 	 	18	 
	 

	 	 	7.01.	 	 	Grantors’ Legal Status
	 	 	18	 
	 

	 	 	7.02.	 	 	Grantors’ Names
	 	 	18	 
	 

	 	 	7.03.	 	 	Grantors’ Organizational Numbers
	 	 	18	 
	 

	 	 	7.04.	 	 	Locations
	 	 	18	 
	 

	 	 	7.05.	 	 	Covenants in Credit Agreements
	 	 	18	 
	 

	 	 	7.06.	 	 	Promissory Notes and Tangible Chattel Paper
	 	 	18	 
	 

	 	 	7.07.	 	 	Deposit Accounts
	 	 	18	 
	 

	 	 	7.08.	 	 	Investment Property
	 	 	19	 
	 

	 	 	7.09.	 	 	Collateral in the Possession of a Bailee
	 	 	21	 
	 

	 	 	7.10.	 	 	Electronic Chattel Paper and Transferable Records
	 	 	21	 
	 

	 	 	7.11.	 	 	Letter-of-Credit Rights
	 	 	21	 
	 

	 	 	7.12.	 	 	Commercial Tort Claims
	 	 	22	 
	 

	 	 	7.13.	 	 	Intellectual Property
	 	 	22	 
	 

	 	 	7.14.	 	 	Maintenance of Collateral; Compliance with Laws
	 	 	25	 
	 

	 	 	7.15.	 	 	Dispositions of Collateral
	 	 	25	 
	 

	 	 	7.16.	 	 	Maintenance of Insurance
	 	 	25	 
	 

	 	 	7.17.	 	 	Periodic Certification
	 	 	25	 
	 

	 	 	7.18.	 	 	Other Actions as to any and all Collateral
	 	 	25	 
	Sections 8.	 	Inspection and Verification	 	 	26	 
	Section 9.	 	Collateral Protection Expenses; Preservation of Collateral	 	 	26	 
	 

	 	 	9.01.	 	 	Expenses Incurred by the Agent
	 	 	26	 
	 

	 	 	9.02.	 	 	Agent’s Obligations and Duties
	 	 	26	 
	 

	 	 	9.03.	 	 	Duties as to Pledged Securities
	 	 	27	 
	Section 10.	 	Securities and Deposits	 	 	28	 
	Section 11 .	 	Notification to Account Debtors and Other Persons Obligated on
Collateral	 	 	28	 
	Section 12.	 	Power of Attorney	 	 	29	 
	 

	 	 	12.01.	 	 	Appointment and Powers of Agent
	 	 	29	 
	 

	 	 	12.02.	 	 	Failure of Grantor to Perform
	 	 	30	 
	 

	 	 	12.03.	 	 	Expenses of Attorney-in-Fact
	 	 	30	 
	 

	 	 	12.04.	 	 	Ratification by Grantor
	 	 	31	 
	 

	 	 	12.05.	 	 	No Duty on Secured Party
	 	 	31	 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	Section 13.	 	Remedies	 	 	31	 
	 

	 	 	13.01.	 	 	Default
	 	 	31	 
	 

	 	 	13.02.	 	 	Remedies Upon Default
	 	 	31	 
	 

	 	 	13.03.	 	 	Grant of License to Use Intellectual Property
	 	 	32	 
	 

	 	 	13.04.	 	 	Waivers by Grantors
	 	 	33	 
	 

	 	 	13.05.	 	 	Application of Proceeds
	 	 	33	 
	 

	 	 	13.06.	 	 	Surplus, Deficiency
	 	 	33	 
	 

	 	 	13.07.	 	 	Information Related to the Collateral
	 	 	34	 
	 

	 	 	13.08.	 	 	Sale Exempt from Registration
	 	 	34	 
	 

	 	 	13.09.	 	 	Rights and Remedies Cumulative
	 	 	34	 
	 

	 	 	13.10.	 	 	No Direct Enforcement by Secured Creditors
	 	 	34	 
	Section 14.	 	Standards for Exercising Remedies	 	 	34	 
	 

	 	 	14.01.	 	 	Commercially Reasonable Manner
	 	 	34	 
	 

	 	 	14.02.	 	 	Standard of Care
	 	 	35	 
	Section 15.	 	Waivers by Grantor; Obligations Absolute	 	 	35	 
	 

	 	 	15.01.	 	 	Specific Waivers
	 	 	35	 
	 

	 	 	15.02.	 	 	Obligations Absolute
	 	 	36	 
	Section 16.	 	Marshalling	 	 	36	 
	Section 17.	 	Interest	 	 	36	 
	Section 18.	 	Reinstatement	 	 	36	 
	Section 19.	 	Miscellaneous	 	 	36	 
	 

	 	 	19.01.	 	 	Notices
	 	 	36	 
	 

	 	 	19.02.	 	 	GOVERNING LAW; CONSENT TO JURISDICTION
	 	 	36	 
	 

	 	 	19.03.	 	 	WAIVER OF JURY TRIAL, ETC.
	 	 	37	 
	 

	 	 	19.04.	 	 	Counterparts
	 	 	37	 
	 

	 	 	19.05.	 	 	Headings
	 	 	37	 
	 

	 	 	19.06.	 	 	No Strict Construction
	 	 	37	 
	 

	 	 	19.07.	 	 	Severability
	 	 	37	 
	 

	 	 	19.08.	 	 	Survival of Agreement
	 	 	38	 
	 

	 	 	19.09.	 	 	Fees and Expenses; Indemnification
	 	 	38	 
	 

	 	 	19.10.	 	 	Binding Effect; Several Agreement
	 	 	38	 
	 

	 	 	19.11.	 	 	Waivers; Amendment
	 	 	39	 

 

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(continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 

	 	 	19.12.	 	 	Set-Off
	 	 	39	 
	 

	 	 	19.13.	 	 	Integration
	 	 	39	 
	 

	 	 	19.14.	 	 	Acknowledgments
	 	 	39	 
	 

	 	 	19.15.	 	 	Additional Grantors and Guarantors
	 	 	40	 
	 

	 	 	19.16.	 	 	Releases
	 	 	40	 
	 

	 	 	19.17.	 	 	Intercomoanv Debt
	 	 	41	 

SCHEDULES

7.07(a) Deposit Accounts

EXHIBITS

	 	 	 
	A

	 	Perfection Certificate
	B

	 	Form of Copyright Security Agreement Supplement
	C

	 	Form of Patent Security Agreement Supplement
	D

	 	Form of Trademark Security Agreement Supplement
	E

	 	Form of Control Agreement (Deposit Accounts)
	F

	 	Form of Control Agreement (Uncertificated Securities)
	G

	 	Form of Control Agreement (Securities Accounts)
	H

	 	Form of Control Agreement (Commodities Contracts)
	I

	 	Form of Control Agreement (Letter-of-Credit Rights)

ANNEXES

	 	 	 
	1

	 	Form of Assumption Agreement

12

 

 

     AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT,
dated as of March 23, 2007, by each of the signatories hereto identified on the signature pages
hereto as a grantor (together with any other entity that may become a party hereto as a grantor as
provided herein, each a “Grantor” and collectively,
jointly and severally, the “Grantors”)
in favor of Fourth Third LLC as Collateral Agent (in such capacity, the “Agent”) for (i)
itself in its capacity as the Agent and a Lender under each of the Credit Agreements (as
hereinafter defined) (the “Lender”), together with the banks and other financial
institutions or entities (collectively, the “Lenders”) from time to time parties to the
Credit Agreement, dated as of February 28, 2007 (as amended, supplemented or otherwise modified
from time to time, the “Earth LNG Credit Agreement”) among Earth LNG, Inc. (“Earth
LNG”). Earth Biofuels, Inc. (“Parent”), the other Loan Parties named therein, the
Lenders and the Agent, and (ii) the Credit Agreement, dated as of March 23, 2007 (as amended,
supplemented or otherwise modified from time to time, the “Durant Credit Agreement” and,
together with the Earth LNG Credit Agreement, in each case so long as any Borrower Obligations
thereunder have not been Fully Satisfied, each a “Credit Agreement” and collectively, the
“Credit Agreements”) among Durant Biofuels, LLC (“Durant” and together with Earth
LNG, each a “Borrower” and collectively, the “Borrowers”), the other Loan Parties
named therein, the Lenders and the Agent, and (iii) the other Secured Creditors (as hereinafter
defined).

W I T N E S S E T H:

     WHEREAS, pursuant to the Earth LNG Credit Agreement, the Lenders made extensions of credit to
Earth LNG upon the terms and conditions set forth therein;

     WHEREAS, in connection therewith, Earth LNG, the other Grantors (other than Durant) and Agent
are party to a Guarantee and Collateral Agreement, dated as of February 28, 2007 (as heretofore
amended, the “Original Guarantee and Collateral Agreement”);

     WHEREAS, pursuant to the Durant Credit Agreement, the Lenders have agreed to make extensions
of credit to Durant upon the terms and conditions set forth therein;

     WHEREAS, Earth LNG and Durant are members of an affiliated group of companies that includes
each other Grantor;

     WHEREAS, Earth LNG, Durant and the other Grantors are engaged in related businesses, and each
Grantor has derived substantial direct and indirect benefit from the making of extensions of
credit under the Earth LNG Credit Agreement and will derive substantial direct and indirect
benefit from the making of extensions of credit under the Durant Credit Agreement;

     WHEREAS, it is a condition precedent to the obligations of the Lenders to make their
respective extensions of credit to Durant under the Durant Credit Agreement that the Grantors
shall have executed and delivered this Agreement to the Agent; and

     WHEREAS, in connection therewith, the parties to the Original Guarantee and Collateral
Agreement have agreed to amend and restate the Original Guarantee and Collateral Agreement as
hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

 

2

     Section 1.
Definitions.

          1.01.     Definition of Terms Used Herein Generally. Except as otherwise provided herein,
all capitalized terms used but not defined herein shall have the meanings set forth in the
applicable Credit Agreement. Except as specifically provided herein, all terms used herein and
defined in the NYUCC shall have the same definitions herein as specified therein as of the date
hereof; provided, however, that if a term is defined in Article 9 of the NYUCC
differently than in another Article of the NYUCC, the term has the meaning specified in Article 9
of the NYUCC as of the date hereof.

          1.02.
    Definition of Certain Terms Used Herein. As used herein, the following terms
shall have the following meanings:

     “After-Acquired
Intellectual Property”: as defined in Section 7.13.

     “Agent”: as defined in the preamble.

     “Agreement”: this Guarantee and Collateral Agreement, as the same may be amended,
supplemented, replaced or otherwise modified from time to time.

     “Borrower”: as defined in the preamble.

     “Borrower Obligations”: the collective reference to the Obligations (as defined in
the Earth LNG Credit Agreement) and the Obligations (as defined in the Durant Credit Agreement).

     “Collateral”: as defined in Section 3.

     “Collateral Agent” means Fourth Third LLC in its capacity as agent for the lenders
under the Earth LNG Credit Agreement, the lenders under the Durant Credit Agreement and the other
Secured Creditors.

     “Copyright License”: any written agreement, now or hereafter in effect, granting any
right to any third party under any Copyright now or hereafter owned by any Grantor or that the
Grantor otherwise has the right to license, or granting any right to any Grantor under any
Copyright now or hereafter owned by any third party, and all rights of any Grantor under any such
agreement.

     “Copyright Office”: the United States Copyright Office.

     “Copyrights”: (i) all copyrights, whether or not the underlying works of authorship
have been published, and all works of authorship and other intellectual property rights therein,
all copyrights of works based on, incorporated in, derived from or relating to works covered by
such copyrights, all right, title and interest to make and exploit all derivative works based on
or adopted from works covered by such copyrights, and all copyright registrations and copyright
applications, and any renewals or extensions thereof, including, without limitation, each
registration and application identified in Schedule 7(b) to the Perfection Certificate,
(ii) the rights to print, publish and distribute any of the foregoing, (iii) the right to sue or
otherwise recover for any and all past, present and future infringements and misappropriations
thereof, (iv) all income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all Copyright Licenses
entered into in connection

 

3

therewith, and damages and payments for past, present or future infringements thereof), and
(v) all other rights of any kind whatsoever accruing thereunder or pertaining thereto.

     “Copyright
Security Agreement Supplement”: a supplement to this Agreement, executed
by one or more Grantors in favor of the Agent, substantially in the form of Exhibit B
hereto.

     “Credit Agreement”: as defined in the preamble.

     “Disposition”: with respect to any Property, and except as otherwise provided in
Sections 7.13(a)(x) and 7.15, any sale, lease, license, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof, but not including the issuance of
capital stock or other equity interests by either Borrower; and the
terms “Dispose” and
“Disposed of” shall have correlative meanings.

     “Event”: as defined in Section 9.03 hereof.

     “Event of Default”: as defined in either Credit Agreement.

     “Excluded Assets”: collectively (a) any General Intangible to the extent that (i) the
terms of the agreement between the applicable Grantor and the account debtor or other contract
party with respect to such General Intangible prohibits, restricts or requires the consent of the
account debtor to, the assignment or transfer of, or creation, attachment or perfection of a
security interest in, such General Intangible, or provides that the assignment or transfer or
creation, attachment or perfection of such security interest may give rise to a default, breach,
right of recoupment, claim, defense, termination, right of termination or remedy and (ii) such
terms are effective under Sections 9-406, 9-407 or 9-408 of the NYUCC, (b) any property that is
subject to a Lien permitted under Section 7.2 of either Credit Agreement pursuant to
documents that prohibit the applicable Grantor from granting other liens in such property, (c) all
property or proceeds thereof now owned or hereafter acquired by Parent, other than (i) all capital
stock of Earth LNG now owned or hereafter acquired by Parent, (ii) all membership or ownership
interests in Durant and all rights of Parent in, to and under Durant’s limited liability company
operating agreement, now owned or hereafter acquired by Parent, and (iii) all Proceeds and products
of any and all of the property listed in clauses (i) and (ii) and all collateral security and
guarantees given by any Person with respect to any of such property, and (d) from and after such
time as all Borrower Obligations under the Earth LNG Credit Agreement have been Fully Satisfied and
provided that no Event of Default under the Durant Credit Agreement has occurred and is continuing,
(i) any property or proceeds thereof then owned or thereafter acquired by Durant and (ii) all
membership or ownership interests in Durant and all rights of Parent in, to and under Durant’s
limited liability company operating agreement, then owned or thereafter acquired by Parent.

     “Excluded Foreign Subsidiary Voting Stock”: the voting capital stock or other equity
interests of any Foreign Subsidiary owned by either Borrower or a Domestic Subsidiary thereof.

     “Fully Satisfied”: with respect to the Secured Obligations, Guarantor Obligations or
Borrower Obligations, as the case may be, at any time that (a) all principal constituting Secured
Obligations, Guarantor Obligations or Borrower Obligations, as the case may be, and all interest
(including interest that shall have accrued after the commencement of a bankruptcy proceeding with
respect to either Borrower or any Guarantor at the rate provided in the Loan Documents) accrued to
such time on such principal and on all other Secured Obligations, Guarantor Obligations or
Borrower Obligations, as the case may be, shall have been paid in full in cash, (b)

 

4

all fees, expenses and other amounts (including contingent obligations, including those in respect
of indemnification provisions contained in the Loan Documents, but excluding obligations in respect
of such indemnification provisions for which no claim has been made and for which no notice of
claim has been given) unpaid as of such time which constitute Secured Obligations, Guarantor
Obligations or Borrower Obligations, as the case may be, shall have been paid in full in cash, and
(c) the Commitments shall have expired or been terminated.

     “General Intangibles”: all “general intangibles” as such term is defined in Section
9-102(42) of the NYUCC as in effect on the date hereof and, in any event, including, without
limitation, with respect to any Grantor, all contracts, agreements, instruments and indentures and
all licenses and permits issued by Governmental Authorities in any form, and portions thereof, to
which such Grantor is a party or under which such Grantor has any right, title or interest or to
which such Grantor or any property of such Grantor is subject, as the same may from time to time
be amended, supplemented, replaced or otherwise modified, including, without limitation, (i) all
rights of such Grantor to receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of such Grantor to receive proceeds of any insurance, indemnity,
warranty or guaranty with respect thereto, (iii) all rights of such Grantor to damages arising
thereunder, (iv) all rights of such Grantor to receive any tax refunds, and (v) all rights of such
Grantor to terminate and to perform, compel performance and to exercise all remedies thereunder.

     “Grantor”: as defined in the preamble.

     “Guarantor Obligations”: with respect to any Guarantor, all obligations and
liabilities of such Guarantor which may arise under or in connection with this Agreement
(including, without limitation, Section 2) or any other Loan Document to which such
Guarantor is a party, in each case whether on account of guarantee obligations, reimbursement
obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all
fees and disbursements of counsel to any Secured Creditor that are required to be paid by such
Guarantor pursuant to the terms of this Agreement or any other Loan Document).

     “Guarantor Payment”: as defined in Section 2.11(a).

     “Guarantors”: the collective reference to each Grantor.

     “Intellectual Property”: all intellectual and similar property of any Grantor of
every kind and nature now owned or hereafter acquired by any Grantor, including (i) all
inventions, designs, Patents, Patent Licenses, Trademarks, Trademark Licenses, Copyrights,
Copyright Licenses, Trade Secrets, designs, confidential or proprietary technical and business
information, know how, show how or other data or information, software and databases and all
embodiments or fixations thereof and related documentation, registrations and franchises, licenses
for any of the foregoing and all license rights and all additions, improvements and accessions to,
and books and records describing or used in connection therewith, (ii) all computer software and
software systems (including, without limitation, data, databases and related documentation), and
(iii) all Internet web sites and domain names.

     “Intellectual Property Security Agreement”: each of a Copyright Security Agreement
Supplement, a Patent Security Agreement Supplement and a Trademark Security Agreement Supplement.

     “Intercompany Debt”: as defined in Section 19.17.

 

5

     “Intercompany Note”: any promissory note evidencing loans made by any Grantor to any
of its Subsidiaries or any loan made by any Grantor to another Grantor.

     “Investment Property”: the collective reference to (i) all “investment property” as
such term is defined in Section 9-102(48) of the NYUCC on the date hereof including, without
limitation, all certificated securities and uncertificated securities, all security entitlements,
all securities accounts, all commodity contracts and all commodity accounts (other than any
Excluded Foreign Subsidiary Voting Stock excluded from the definition of “Pledged Stock”), (ii)
security entitlements, in the case of any United States Treasury book-entry securities, as defined
in 31 C.F.R. section 357.2, or, in the case of any United States federal agency book-entry
securities, as defined in the corresponding United States federal regulations governing such
book-entry securities, and (iii) whether or not constituting “investment property” as so defined,
all Pledged Notes, all Pledged Stock, all Pledged Security Entitlements and all Pledged Commodity
Contracts.

     “Issuers”:
the collective reference to each issuer of a Pledged Security.

     “Lease”: any lease of personal property under which any Grantor is the lessee.

     “NYUCC”: the Uniform Commercial Code as in effect in the State of New York from time
to time.

     “Parent”: as defined in the preamble.

     “Patent
License”: any written agreement, now or hereafter in effect, granting to any third
party any right to make, use or sell any invention on which a Patent, now or hereafter owned by
any Grantor or that any Grantor otherwise has the right to license, is in existence, or granting
to any Grantor any right to make, use or sell any invention on which a Patent, now or hereafter
owned by any third party, is in existence, and all rights of any Grantor under any such agreement.

     “Patents”: all of the following now owned or hereafter acquired by any Grantor: (a)
all letters patent of the United States or any other country, all registrations and recordings
thereof, and all pending applications for letters patent of the United States or any other
country, including registrations, recordings and applications in the PTO or in any similar office
or agency of the United States, any State or Territory thereof, or any other country, including
those identified in Schedule 7(a) to the Perfection Certificate, and (b) all reissues,
continuations, divisions, continuations-in-part, renewals or extensions thereof and the inventions
disclosed or claimed therein, including the right to make, use and/or sell inventions disclosed or
claimed therein.

     “Patent Security Agreement Supplement”: a supplement to this Agreement, executed by
one or more Grantors in favor of Collateral Agent, substantially in the form of Exhibit C
hereto.

     “Perfection Certificate”: shall mean a certificate substantially in the form of
Exhibit A hereto, completed and supplemented with the schedules and attachments
contemplated thereby, and duly executed by the Grantors.

     “Perfection Supplement”: shall have the meaning assigned to such term in
Section 7.17.

     “Person”: any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity.

 

6

     “Pledged Commodity Contracts”: all commodity contracts listed in Section 8 of
the Perfection Certificate, and all other commodity contracts to which any Grantor is party from
time to time.

     “Pledged Debt Securities”: the debt securities listed in Section 9 of the
Perfection Certificate, together with any other certificates, options, rights or security
entitlements of any nature whatsoever in respect of the debt securities of any Person that may be
issued or granted to, or held by, any Grantor while this Agreement is in effect.

     “Pledged Notes”: all promissory notes listed in Section 9 of the Perfection
Certificate, all Intercompany Notes at any time issued to any Grantor and all other promissory
notes issued to or held by any Grantor (other than promissory notes in an aggregate principal
amount for all Grantors not to exceed $250,000 at any time outstanding issued in connection with
extensions of trade credit by any Grantor in the ordinary course of business).

     “Pledged Securities”: the collective reference to the Pledged Debt Securities, the
Pledged Notes and the Pledged Stock.

     “Pledged Security Entitlements”: all security entitlements with respect to the
financial assets listed on Section 8 of the Perfection Certificate and all other security
entitlements of any Grantor.

     “Pledged Stock”: the shares of capital stock or other equity interests listed in
Section 8 of the Perfection Certificate, together with any other shares, stock
certificates, options, rights or security entitlements of any nature whatsoever in respect of the
capital stock or other equity interests of any Person that may be issued or granted to, or held
by, any Grantor while this Agreement is in effect; provided that in no event shall more than 65%
of the total outstanding voting capital stock of any Foreign Subsidiary be required to be pledged
hereunder or any capital stock of any Foreign Subsidiary owned by a Foreign Subsidiary be required
to be pledged hereunder; provided, further, that in no event shall capital stock or other equity
interests of any Subsidiary of Parent that is not a Loan Party be required to be pledged
hereunder.

     “Proceeds”: all “proceeds” as such term is defined in Section 9-102(64) of the NYUCC
in effect on the date hereof and, in any event, shall include, without limitation, all dividends
or other income from the Pledged Securities, collections thereon or distributions or payments with
respect thereto.

     “Property”: any right or interest in or to property of any kind whatsoever, whether
real, personal or mixed and whether tangible or intangible, including capital stock or other
equity interests.

     “PTO”: the United States Patent and Trademark Office.

     “Receivable”: any right to payment on account of any obligation that could create any
right to receive money, whether or not such right is evidenced by an instrument or chattel paper
and whether or not it has been earned by performance (including, without limitation, any account
or payment intangible).

     “Secured Obligations”: the Borrower Obligations and the Guarantor Obligations.

 

7

     “Secured
Creditor”: collectively, the Collateral Agent, Fourth Third LLC as
administrative agent under the Earth LNG Credit Agreement, Fourth Third LLC as administrative agent
under the Durant Credit Agreement, the Lenders under and as defined in the Earth LNG Credit
Agreement and the Lenders under and as defined in the Durant Credit Agreement.

     “Securities Act”: the Securities Act of 1933, as amended.

     “Security Documents”: this Agreement, the Intellectual Property Security Agreements,
all deposit account control agreements and similar agreements, all landlord waivers, bailee
letters and similar documents and all other pledge or security agreements, “Mortgages” (as such
term is defined in either Credit Agreement), assignments or other similar agreements or
instruments executed and delivered by any Guarantor pursuant to Section 6.8 or Section
6.9 of the applicable Credit Agreement or otherwise in connection with the transactions
contemplated thereby, in each case as amended, modified, restated or supplemented from time to
time.

     “Security Interest”: the security interest granted pursuant to Section 3, as
well as all other security interests created or assigned as additional security for the Secured
Obligations pursuant to the provisions of this Agreement.

     “Subsidiary Guarantor”: any Guarantor that is a Subsidiary of either Borrower.

     “Trade Secret License”: any agreement, whether written or oral, providing for the
grant by or to any Grantor of any right to use any Trade Secret, including, without limitation,
any of the foregoing referred to on Schedule 7(a) to the Perfection Certificate.

     “Trade Secrets”: (i) all trade secrets and all confidential and proprietary
information, including know-how, trade secrets, manufacturing and production processes and
techniques, inventions, research and development information, technical data, financial, marketing
and business data, pricing and cost information, business and marketing plans, and customer and
supplier lists and information, including, without limitation, those identified in Schedule
7(a) to the Perfection Certificate, (ii) the right to sue or otherwise recover for any and all
past, present and future infringements and misappropriations thereof, (iii) all income, royalties,
damages and other payments now and hereafter due and/or payable with respect thereto (including,
without limitation, payments under all licenses entered into in connection therewith, and damages
and payments for past, present or future infringements thereof), and (iv) all other rights of any
kind whatsoever of such Grantor accruing thereunder or pertaining thereto.

     “Trademark License”: any written agreement, now or hereafter in effect, granting to
any third party any right to use any Trademark now or hereafter owned by any Grantor or that any
Grantor otherwise has the right to license, or granting to any Grantor any right to use any
Trademark now or hereafter owned by any third party, and all rights of any Grantor under any such
agreement.

     “Trademark Security Agreement Supplement”: a supplement to this Agreement,
executed by the Grantor in favor of Agent, substantially in the form of Exhibit D hereto.

     “Trademarks”: (i) all trademarks, service marks, trade names, corporate names,
company names, business names, domain names, trade dress, trade styles, logos, or other indicia of
origin or source identification, trademark and service mark registrations, and applications for
trademark or service mark registrations and any renewals thereof, including, without limitation,
those

 

8

identified in Schedule 7(a) to the Perfection Certificate, (ii) the right to sue or
otherwise recover for any and all past, present and future infringements and misappropriations
thereof, (iii) all income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all Trademark Licenses
entered into in connection therewith, and damages and payments for past, present or fixture
infringements thereof), and (iv) all other rights of any kind whatsoever accruing thereunder or
pertaining thereto, together in each case with the goodwill of the business connected with the use
of, and symbolized by, each of the above.

     “UCC”: the Uniform Commercial Code as in effect in any jurisdiction (except as
otherwise contemplated in Section 7.18). References to particular sections of Article 9 of
the UCC shall be, unless otherwise indicated, references to Revised Article 9 of the UCC adopted
and effective in certain jurisdictions on or after July 1, 2001.

          1.03. Rules of Interpretation. The rules of interpretation specified in Section
1.03 of each Credit Agreement shall be applicable to this Agreement. References to “Sections”,
“Exhibits” and “Schedules” shall be to Sections, Exhibits and Schedules, respectively, of this
Agreement unless otherwise specifically provided. Any of the terms
defined in this Section 1 may, unless the context otherwise requires, be used in the singular or the plural depending on
the reference. All references to statutes and related regulations shall include (unless otherwise
specifically provided herein) any amendments of same and any successor statutes and regulations.

     Section 2. Guarantee

          2.01.
Guarantee. (a) Each of the Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantees to the Agent, for the ratable benefit of the Secured
Creditors and their respective successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by each Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations.

                  (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the
maximum liability of each Guarantor hereunder and under the other Loan Documents shall in no event
exceed the amount which can be guaranteed by such Guarantor under applicable federal, state and
other laws relating to the insolvency of debtors (after giving effect to the right of contribution
established in Section 2.02).

                  (c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee
contained in this Section 2 or affecting the rights and remedies of any Secured Creditor
hereunder.

                  (d) The guarantee contained in this Section 2 shall remain in full force and effect
until all the Borrower Obligations and Guarantor Obligations shall have been Fully Satisfied
notwithstanding that from time to time during the term of the Credit Agreements either Borrower
may be free from any Borrower Obligations.

                  (e) No payment made by either Borrower, any of the Guarantors, any other guarantor or any
other Person or received or collected by any Secured Creditor from either Borrower, any of the
Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in

 

9

reduction of or in payment of the Borrower Obligations shall be deemed to modify, reduce, release
or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such
payment (other than any payment made by such Guarantor in respect of the Secured Obligations or
any payment received or collected from such Guarantor in respect of the Secured Obligations),
remain liable for the Borrower Obligations up to the maximum liability of such Guarantor hereunder
until the Borrower Obligations are Fully Satisfied.

          2.02. Right of Contribution. Each Guarantor hereby agrees that to the extent that a
Guarantor shall have paid more than its proportionate share of any payment made hereunder, such
Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor
hereunder which has not paid at least its proportionate share of such payment. Each Guarantor’s
right of contribution shall be subject to the terms and conditions of Section 2.03. The
provisions of this Section 2.02 shall in no respect limit the obligations and liabilities
of any Guarantor to the Secured Creditors and each Guarantor shall remain liable to the Secured
Creditors for the full amount guaranteed by such Guarantor hereunder.

          2.03.
Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any
set-off or application of funds of any Guarantor by any Secured Creditor, (i) no Guarantor shall
be entitled to be subrogated to any of the rights of any Secured Creditor against either Borrower
or any other Guarantor or Grantor or any collateral security or guarantee or right of offset held
by any Secured Creditor for the payment of the Borrower Obligations, (ii) no Guarantor shall seek
or be entitled to seek any contribution or reimbursement from either Borrower or any other
Guarantor or Grantor in respect of payments made by such Guarantor hereunder, and (iii) each
Guarantor hereby expressly and irrevocably waives any and all rights at law or in equity to
subrogation, reimbursement, exoneration, contribution, indemnification or set off and any and all
defenses available to a surety, guarantor or accommodation co-obligor, in each case, until all
Borrower Obligations are Fully Satisfied. If any amount shall be paid to any Guarantor on account
of such subrogation rights at any time when all of the Borrower Obligations shall not have been
Fully Satisfied, such amount shall be held by such Guarantor in trust for the Secured Creditors,
segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such
Guarantor, be turned over to the Agent in the exact form received by such Guarantor (duly endorsed
by such Guarantor to the Agent, if required), to be applied against the Borrower Obligations,
whether matured or unmatured, in such order as the Agent may determine. Each Guarantor
acknowledges and agrees that this waiver is intended to benefit the Secured Creditors and shall
not limit or otherwise affect such Guarantor’s liability hereunder or the enforceability of this
Section 2.03, and that the Secured Creditors and their respective successors and assigns
are intended third party beneficiaries of the waivers and agreements set forth in this Section
2.03, and their rights under this Section 2.03, shall survive payment in full of the
Obligations.

          2.04.
Amendments, etc. with respect to the Borrower Obligations.
Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation
of rights against any Guarantor and without notice to or further assent by any Guarantor, any
demand for payment of any of the Borrower Obligations made by any Secured Creditor may be
rescinded by such Secured Creditor and any of the Borrower Obligations continued, and the Borrower
Obligations, or the liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may, from time to
time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by any Secured Creditor, and each Credit Agreement and the other
Loan Documents and any other documents executed and delivered in connection therewith

 

10

may be amended, modified, supplemented or terminated, in whole or in part, as the Agent (or the
Required Lenders under such Credit Agreement or all Lenders, as the case may be) may deem advisable
from time to time, and any collateral security, guarantee or right of offset at any time held by
any Secured Creditor for the payment of the Borrower Obligations may be sold, exchanged, waived,
surrendered or released. No Secured Creditor shall have any obligation to protect, secure, perfect
or insure any Lien at any time held by it as security for the Borrower Obligations or for the
guarantee contained in this Section 2 or any property subject thereto.

          2.05.
Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice
of the creation, renewal, extension or accrual of any of the Borrower Obligations and notice of or
proof of reliance by any Secured Creditor upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Borrower Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon the guarantee contained
in this Section 2;
and all dealings between either Borrower and any of the Guarantors, on the one hand, and the
Secured Creditors, on the other hand, likewise shall be conclusively presumed to have been had or
consummated in reliance upon the guarantee contained in this
Section 2. Each Guarantor
waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to
or upon either Borrower or any of the Guarantors with respect to the Borrower Obligations, except
as required pursuant to either Credit Agreement. Each Guarantor understands and agrees that the
guarantee contained in this Section 2 shall be construed as a continuing, absolute and
unconditional guarantee of payment and performance without regard to (a) the validity or
enforceability of either Credit Agreement or any other Loan Document (other than this Agreement),
any of the Borrower Obligations or any other collateral security therefor or guarantee or right of
offset with respect thereto at any time or from time to time held by any Secured Creditor, (b) any
defense, set-off or counterclaim (other than a defense of payment or performance hereunder) which
may at any time be available to or be asserted by either Borrower or any other Person against any
Secured Creditor, or (c) any other circumstance whatsoever (with or without notice to or knowledge
of either Borrower or such Guarantor) which constitutes, or might be construed to constitute, an
equitable or legal discharge of either Borrower for the Borrower Obligations, or of such Guarantor
under the guarantee contained in this Section 2, in bankruptcy or in any other instance.
When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against
any Guarantor, any Secured Creditor may, but shall be under no obligation to, make a similar demand
on or otherwise pursue such rights and remedies as it may have against either Borrower, any other
Guarantor or any other Person or against any collateral security or guarantee for the Borrower
Obligations or any right of offset with respect thereto, and any failure by any Secured Creditor to
make any such demand, to pursue such other rights or remedies or to collect any payments from
either Borrower, any other Guarantor or any other Person or to realize upon any such collateral
security or guarantee or to exercise any such right of offset, or any release of either Borrower,
any other Guarantor or any other Person or any such collateral security, guarantee or right of
offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not
impair or affect the rights and remedies, whether express, implied or available as a matter of law,
of any Secured Creditor against any Guarantor. For the purposes hereof, “demand” shall include the
commencement and continuance of any legal proceedings.

          2.06. Reinstatement. The guarantee contained in this Section 2 shall continue
to be effective, or be reinstated, as the case may be, if at any time payment, or any part
thereof, of any of the Borrower Obligations is rescinded or must otherwise be restored or returned
by any Secured Creditor upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of

 

 

11

either Borrower or any Guarantor, or upon or as a result of the appointment of a receiver,
intervenor or conservator of, or trustee or similar officer for, either Borrower or any Guarantor
or any substantial part of its property, or otherwise, all as though such payments had not been
made.

          2.
7. Payments. Each Guarantor hereby guarantees that payments hereunder will be paid to the
Agent without set-off or counterclaim in Dollars in immediately available funds to the deposit
account of Agent specified in Annex II to the applicable Credit Agreement and that all such
payments will be subject to the provisions of Section 2.8 of the applicable Credit Agreement.

          2.
8. Waiver of Subrogation. Notwithstanding anything to the contrary in this Agreement
or in any other Loan Document, and except as set forth in
Section 2.11, each Guarantor
hereby expressly and irrevocably waives until all Secured Obligations have been paid in full and
the Commitments have been terminated pursuant to each Credit Agreement any and all rights at
law or in equity to subrogation, reimbursement, exoneration, contribution,
indemnification or set off and any and all defenses available to a surety, guarantor or
accommodation co-obligor. Each Guarantor acknowledges and agrees that this waiver is intended to
benefit the Secured Creditors and shall not limit or otherwise affect such Guarantor’s liability
hereunder or the enforceability of this Section 2.08, and that the Secured Creditors and
their respective successors and assigns are intended third party beneficiaries of the waivers and
agreements set forth in this Section 2.08, and their
rights under this Section 2.08, shall survive
payment in full of the Obligations. The foregoing waiver shall not be deemed to limit or prohibit
the payment of indebtedness or other obligations of any Guarantor to any other Guarantor or other
Person which is incurred in the ordinary course of business and which is otherwise permitted under
this Agreement or any other Loan Document.

          2.
9. Election of Remedies. If any Secured Creditor may, under applicable law, proceed to
realize its benefits under any of the Loan Documents giving such Secured Creditor a Lien upon any
Collateral, whether owned by any Guarantor or by any other Person, either by judicial foreclosure
or by non judicial sale or enforcement, such Secured Creditor may, at its sole option, determine
which of its remedies or rights it may pursue without affecting any of its rights and remedies
under this Section 2. If, in the exercise of any of its rights and remedies, any Secured
Creditor shall forfeit any of its rights or remedies, including its right to enter a deficiency
judgment against any Guarantor or any other Person, whether because of any applicable laws
pertaining to “election of remedies” or the like, each Guarantor hereby consents to such action by
such Secured Creditor and waives, to the extent permitted by applicable law, any claim based upon
such action, even if such action by such Secured Creditor shall result in a full or partial loss of
any rights of subrogation that each Guarantor might otherwise have had but for such action by such
Secured Creditor. Any election of remedies that results in the denial or impairment of the right
of any Secured Creditor to seek a deficiency judgment against any Guarantor shall not impair any
other Guarantor’s obligation to pay the full amount of the Obligations. In the event any Secured
Creditor shall bid at any foreclosure or trustee’s sale or at any private sale permitted by law or
the Loan Documents, such Secured Creditor may bid all or less than the amount of the Obligations
and the amount of such bid need not be paid by the such Secured Creditor but shall be credited
against the Obligations. The amount of the successful bid at any such public sale, whether such
Secured Creditor or any other party is the successful bidder, shall be conclusively deemed to be
the fair market value of the Collateral and the difference between such bid amount and the
remaining balance of the Obligations shall be conclusively deemed to be the amount of the
Obligations guaranteed under this Section 2, notwithstanding that any present or future law or
court decision or ruling may have the effect of reducing the amount

 

12

of any deficiency claim to which any Secured Creditor might otherwise be entitled but for such
bidding at any such sale.

          2.10. Limitation. Notwithstanding any provision herein contained to the contrary,
each Guarantor’s liability under this Section 2 (which liability is in any event in
addition to amounts for which such Guarantor is primarily liable under Section 2 of the
applicable Credit Agreement) shall be limited to an amount not to exceed as of any date of
determination the greater of:

     (a) the net amount of any portion of the Loan advanced to any other Grantor and then re-loaned
or otherwise transferred to, or for the benefit of, such Guarantor; and

     (b) the amount that could be claimed by the Agent and the Lenders from such Guarantor under
this Section 2.10 without rendering such claim voidable or avoidable under Section 548 of
Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act,
Uniform Fraudulent Conveyance Act or similar statute or common law after taking into account, among
other things, such Guarantor’s right of contribution and indemnification from each other Guarantor
under Section2.11.

          2.11.
Contribution with Respect to Guaranty Obligations.

     (a) To the extent that any Guarantor shall make a payment under this Section 2.11 of
all or any of the Obligations (a “Guarantor Payment”) that, taking into account all other
Guarantor Payments then previously or concurrently made by any other Guarantor, exceeds the amount
that such Guarantor would otherwise have paid if each Guarantor had paid the aggregate Obligations
satisfied by such Guarantor Payment in the same proportion that such Guarantor’s “Allocable
Amount” (as defined below) (as determined immediately prior to such Guarantor Payment) bore to
the aggregate Allocable Amounts of each of the Guarantors as determined immediately prior to the
making of such Guarantor Payment, then, following indefeasible payment in full in cash of the
Obligations and termination of the Commitments, such Guarantor shall be entitled to receive
contribution and indemnification payments from, and be reimbursed by, each other Guarantor for the
amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately
prior to such Guarantor Payment.

     (b) As of any date of determination, the “Allocable Amount” of any Guarantor shall be equal to
the maximum amount of the claim that could then be recovered from such Guarantor under this
Section 2 without rendering such claim voidable or avoidable under Section 548 of Chapter
11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform
Fraudulent Conveyance Act or similar statute or common law.

     (c) This
Section  2.11 is intended only to define the relative rights of Guarantors
and nothing set forth in this Section 2.11 is intended to or shall impair the obligations
of Guarantors, jointly and severally, to pay any amounts as and when the same shall become due and
payable in accordance with the terms of this Agreement, including Section 2.1. Nothing
contained in this Section 2.11 shall limit the liability of either Borrower to pay the
applicable Loan and accrued interest, fees and expenses with respect thereto for which such
Borrower shall be primarily liable.

     (d) The parties hereto acknowledge that the rights of contribution and
indemnification hereunder shall constitute assets of the Guarantor to which such contribution and
indemnification is owing.

 

13

     (e) The rights of the indemnifying Guarantors against other Loan Parties under this
Section 2.11 shall be exercisable upon the full and indefeasible payment of the Obligations
and the termination of the Commitments.

          Section 3. 
Grant of Security Interest.

          Each Grantor hereby grants (and confirms the grant, if any, which shall continue
uninterrupted, made by such Grantor in the Original Guarantee and Collateral Agreement) to the
Agent, for the ratable benefit of the Secured Creditors, a security interest in and mortgage on,
all of the following property now owned or at any time hereafter acquired by such Grantor or in
which such Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”), as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or otherwise) of the Secured
Obligations:

               a. all accounts, including health-care receivables;

               b. all chattel paper, whether tangible or electronic;

               c. all goods;

               d. all documents;

               e. all equipment;

               f. all fixtures;

               g. all general intangibles, including all payment intangibles;

               h. all instruments;

               i. all Intellectual Property;

               j. all inventory;

               k. all Investment Property;

               1. all Leases;

               m. all letter-of-credit rights;

               n. all money;

               o. all supporting obligations;

               p. all tort claims;

               q. all other property not otherwise described above;

               r. all deposit accounts, all claims now or hereafter arising therefrom, all
funds now or hereafter held therein, all amounts now or hereafter credited thereto and all

 

14

certificates and instruments, if any, from time to time representing or evidencing such bank
accounts;

               s. all books and records pertaining to the Collateral; and

               t. to the extent not otherwise included, all Proceeds and products of any
and all of the foregoing and all collateral security and guarantees given by any Person with
respect to any of the foregoing.

     Notwithstanding the foregoing, none of the Excluded Assets shall, to the extent and for so
long as they are Excluded Assets, constitute Collateral. If at any time, by reason of any change
in law or the receipt of any required consent or otherwise, any General Intangible that was an
Excluded Asset ceases to meet the conditions set forth in the definition of “Excluded Assets”
found in Section 1  of this Agreement, then such general intangible shall immediately and
automatically cease to be an Excluded Asset and the security interest herein granted shall
immediately and automatically attach thereto without necessity of any further act or deed by any
Grantor.

     Section 4.
 Authorization to File Financing Statements. Each Grantor
hereby irrevocably authorizes the Agent at any time and from time to time to file in any
jurisdiction in which the UCC has been adopted any initial financing statements and amendments
thereto that (a) indicate the Collateral (i) as all assets of such Grantor or words of similar
effect, regardless of whether any particular asset comprised in the Collateral falls within the
scope of Article 9 of the NYUCC or such jurisdiction, or (ii) as being of an equal or lesser scope
or with greater detail, and (b) contain any other information required by part 5 of Article 9 of
the UCC for the sufficiency or filing office acceptance of any initial financing statement or
amendment, including (i) whether such Grantor is an organization, the type of organization and any
organization identification number issued to such Grantor and, (ii) in the case of a financing
statement filed as a fixture filing or indicating Collateral as timber to be cut or as-extracted
collateral, a sufficient description of real property to which such Collateral relates. Each
Grantor agrees to furnish any such information to the Agent promptly upon request. Each Grantor
also ratifies its authorization for the Agent to have filed in any UCC jurisdiction any like
initial financing statements or amendments thereto if filed prior to the date hereof.

     Section 5. 
Relation to Other Security Documents.

          5.01. Real Estate Documents. The provisions of this Agreement supplement the
provisions of any real estate mortgage or deed of trust granted by any Grantor to the Agent and
securing the payment or performance of any of the Secured Obligations. Nothing contained in any
such real estate mortgage or deed of trust shall derogate from any of the rights or remedies of the
Agent or any Secured Creditor hereunder.

          5.02. Patent and Trademark Security Agreement Supplements. Concurrently herewith
certain of the Grantors are executing and delivering to the Agent for recording in the PTO or the
Copyright Office, as applicable, the Patent Security Agreement
Supplement. the Trademark Security
Agreement Supplement and the Copyright Security Agreement Supplement. The provisions of any current
or any future Patent Security Agreement Supplement, Trademark Security Agreement Supplement or
Copyright Security Agreement Supplement are supplemental to the
provisions of this Agreement. Nothing contained in any current or future Patent Security Agreement
Supplement. Trademark Security
Agreement Supplement or Copyright Security

 

15

Agreement Supplement shall derogate from any of the rights or remedies of any Secured Creditor
hereunder, nor shall anything contained in any such current or future Patent Security Agreement
Supplement, Trademark Security Agreement Supplement or Copyright Security Agreement Supplement be
deemed to prevent or extend the time of attachment or perfection of any Security Interest in such
Collateral created hereby.

     Section 6. Representations and Warranties. To induce the Agent and the Lenders to
enter into the Credit Agreements and to induce the Lenders to make their respective extensions of
credit to the Borrowers thereunder, each Grantor hereby represents and warrants to the Secured
Creditors that:

          6.01.
Grantors’ Legal Status. (a) Such Grantor is an organization as set forth in the
Perfection Certificate; (b) such organization is of the type, and is organized in the jurisdiction,
set forth in the Perfection Certificate; and (c) the Perfection Certificate sets forth such
Grantor’s correct organizational identification number or states that such Grantor has none.

          6.02. Grantors’ Legal Names. Such Grantor’s exact legal name is that set forth on the
Perfection Certificate and on the signature page hereof.

          6.03. Grantors’ Locations. The Perfection Certificate sets forth such Grantor’s place
of business or (if it has more than one place of business) its chief executive office, as well as
its mailing address if different. Such Grantor’s place of business or (if it has more than one
place of business) its chief executive office (if such Grantor is an organization) is located in a
jurisdiction that has adopted the UCC or whose laws generally require that information
concerning the existence of nonpossessory security interests be made generally available in a
filing, recording or registration system as a condition or result of the security interest
obtaining priority over the rights of a lien creditor with respect to the collateral.

          6.04. Representations in the Credit Agreements. The representations and warranties
set forth in Section 5 of each Credit Agreement as they relate to such Guarantor or to the Loan
Documents to which such Guarantor is a party, each of which is hereby incorporated herein by
reference, are true and correct in all material respects, and the Secured Creditors shall be
entitled to rely on each of them as if they were fully set forth herein, provided that each
reference in each such representation and warranty to the applicable Borrower’s knowledge shall,
for the purposes of this Section 6.04, be deemed to be a reference to such Grantor’s
knowledge.

          6.05.
Title to Collateral. The Collateral of such Grantor is owned by such Grantor free
and clear of any Lien, except for Liens expressly permitted pursuant to the Credit Agreements.
Such Grantor has not filed or consented to the filing of (a) any financing statement or analogous
document under the UCC or any other applicable laws covering any of its Collateral, (b) any
assignment in which such Grantor assigns any Collateral or any security agreement or similar
instrument covering any Collateral with the PTO or the Copyright Office or (c) any assignment in
which such Grantor assigns any Collateral or any security agreement or similar instrument covering
any Collateral with any foreign governmental, municipal or other office, which financing statement
or analogous document, assignment, security agreement or similar instrument is still in effect,
except, in each case, with respect to Liens expressly permitted pursuant to the Credit Agreements.

          6.06. Nature of Collateral. None of the Collateral of such Grantor constitutes, or is
the proceeds of, farm products and none of the Collateral has been purchased or will be used

 

16

by such Grantor primarily for personal, family or household purposes, and as of the Closing Date,
except as indicated in the Perfection Certificate and as of any date of any Perfection
Supplement, except as indicated in such Perfection Supplement or in the Perfection Certificate:

               (a) none of the account debtors or other persons obligated on any of the
Collateral of such Grantor is a governmental authority subject to the Federal Assignment of Claims
Act or like federal, state or local statute or rule in respect of such Collateral;

               (b) such Grantor holds no commercial tort claims;

               (c) such Grantor has no deposit accounts or other bank accounts;

               (d) such Grantor owns no motor vehicles;

               (e) such Grantor has no securities accounts or securities entitlements or commodities accounts
or commodities contracts;

               (f) such Grantor holds no interest in, title to or power to transfer, any
Patents, Patent Licenses, Trademarks, Trademark Licenses, Trade Secrets, Trade Secret Licenses,
Copyrights or Copyright Licenses; and

               (g) such Grantor holds no interest in, title to or power to transfer any Intellectual Property
that is eligible for registration in the PTO or the Copyright Office.

          6.07.
Compliance with Laws. Such Grantor has at all times operated its business in
compliance with all laws, except as could not reasonably be expected to have a Material Adverse
Effect.

          6.08.
Validity of Security interest. Except with respect to assets which in the
aggregate for all Grantors do not have a value exceeding $250,000, (a) the Security Interest
granted by such Grantor constitutes a legal and valid security interest in all of the Collateral of
such Grantor securing the payment and performance of the Secured Obligations and (b) upon the
giving of value, the filing of financing statements describing the Collateral in the offices listed
on the Perfection Certificate, the recording in the PTO of the Trademark Security Agreement
Supplement and the Patent Security Agreement Supplement and in the Copyright Office of the
Copyright Security Agreement Supplement, and the taking of all applicable actions in respect of
perfection contemplated by Sections 7.06, 7.07, 7.08, 7.09, 7.10, 7.11 and 7.12 in
respect of Collateral (in which a security interest cannot be perfected by the filing of a
financing statement or such recordings in the PTO or the Copyright Office), the Security Interest
will be valid, enforceable and perfected in all Collateral of such Grantor. The Security Interest
is and shall be prior to any other Lien on the Collateral, other than Liens expressly permitted to
be prior to the Security Interest under the Credit Agreements.

          6.09. Perfection Certificate; Intellectual Property Filings.

               (a) All information set forth on the Perfection Certificate is, and all information set forth
on each Perfection Supplement shall be, accurate and complete.

               (b) A fully executed Patent Security Agreement Supplement, Trademark Security Agreement
Supplement and a Copyright Security Agreement Supplement containing a

 

17

description of all Collateral of such Grantor consisting of United States Patents and United States
registered Trademarks (and Trademarks for which United States registration applications are
pending) and United States registered Copyrights have been delivered to the Agent for recording by
the PTO and the Copyright Office, as necessary, pursuant to 35 U.S.C, § 261, 15 U.S.C. § 1060 or 17
U.S.C, § 205 and the regulations thereunder, as applicable.

          6.10. Investment Property.

               (a) The shares of Pledged Stock pledged by such Grantor hereunder
constitute all of the issued and outstanding shares of all classes of the capital stock or other
equity interests of each Issuer owned by such Grantor or, in the case of any Excluded Foreign
Subsidiary Voting Stock, 65% of the outstanding Excluded Foreign Subsidiary Voting Stock of each
relevant Issuer.

               (b) All the shares of the Pledged Stock pledged by such Grantor have been duly and validly
issued and are fully paid and nonassessable.

               (c) The terms of any uncertificated limited liability company interests
and partnership interests included in the Pledged Stock expressly provide that they are securities
governed by Article 8 of the Uniform Commercial Code in effect from time to time in the “issuer’s
jurisdiction” of each Issuer thereof (as such term is defined in the UCC in effect in such
jurisdiction).

               (d) Such Grantor is the record and beneficial owner of, and has good and
marketable title to, the Pledged Securities pledged by it hereunder, free of any and all Liens or
options in favor of, or claims of, any other Person, except the Security Interest created by this
Agreement.

          6.11. Receivables. No amount exceeding $50,000 and payable to such Grantor under or in
connection with any Receivable is evidenced by any instrument or chattel paper which has not been
delivered to the Agent.

          6.12. Accounts. (i) Each account of such Grantor is genuine and in all material
respects what they purport to be, (ii) each account arises out of (A) a bona fide sale of goods
sold and delivered by such Grantor (or is in the process of being delivered) or (B) services
theretofore actually rendered or to be rendered by such Grantor to the account debtor named
therein, (iii) no material account of such Grantor is evidenced by any instrument or chattel paper
unless such instrument or chattel paper has been theretofore endorsed over and delivered to, or
submitted to the control of, the Agent and (iv) no surety bond was required or given in connection
with any account of such Grantor or the contracts or purchase orders out of which they arose and
the right to receive payment under each account is assignable.

          6.13. Equipment and Inventory. With respect to any material equipment and/or
material inventory of such Grantor, each such Grantor has exclusive possession and control of such
equipment and Inventory of such Grantor except for (i) equipment leased by such Grantor as a lessor
or (ii) equipment or inventory in transit with common or other carriers. No material inventory is
held by such Grantor pursuant to consignment, sale or return, sale on approval or similar
arrangement.

 

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     Section 7. Covenants. Each Grantor covenants and agrees with the Agent, in each case
at such Grantor’s own cost and expense, as follows.

          7.01. Grantors’ Legal Status. Such Grantor shall not change its type of
organization, jurisdiction of organization or other legal structure except, upon not less than
twenty (20) days’ prior written notice to the Agent.

          7.02. Grantors’ Names. Such Grantor shall not change its name, except upon not less
than twenty (20) days’ prior written notice to the Agent.

          7.03. Grantors’ Organizational Numbers. Without providing at least twenty (20) days’
prior written notice to the Agent, such Grantor shall not change its organizational identification
number if it has one. If such Grantor does not have an organizational identification number and
later obtains one, such Grantor shall forthwith notify the Agent of such organizational
identification number promptly upon obtaining such identification number.

          7.04.
Locations. Without providing at least twenty (20) days’ prior written notice to the
Agent, such Grantor shall not (a) change its place of business or (if it has more than one place of
business) its chief executive office and shall promptly notify the Agent of any new location of
Collateral owned by either Borrower or a Domestic Subsidiary thereof that is not set forth on a
Perfection Certificate or Perfection Supplement.

          7.05.
Covenants in Credit Agreements. Each Guarantor shall take, or shall refrain
from taking, as the case may be, each action that is necessary to be taken or not taken, as the
case may be, so that no Default or Event of Default is caused by the failure to take such action or
to refrain from taking such action by such Guarantor or any of its Subsidiaries.

          7.06. Promissory Notes and Tangible Chattel Paper. If such Grantor, together with the
other Grantors, shall at any time hold or acquire any promissory notes or tangible chattel paper in
an aggregate principal amount of more than $50,000, such Grantor shall forthwith endorse, assign
and deliver the same to the Agent, accompanied by such instruments of transfer or assignment duly
executed in blank as the Agent may from time to time specify to be held by the Agent as Collateral
pursuant to this Agreement.

          7.07. Deposit Accounts. For each deposit account that such Grantor at any time opens
or maintains, such Grantor shall, at the Agent’s request and option, either (a) cause the
depository bank to enter into a written agreement or other authenticated record with the Agent, in
form and substance reasonably satisfactory to the Agent, pursuant to which such depository bank
shall agree, among other things, to comply at any time with instructions from the Agent to such
depository bank directing the disposition of funds from time to time credited to such deposit
account, without further consent of the Grantor such agreement to be substantially in the form of
Exhibit E or such other form as the Agent shall approve, or (b) arrange for the Agent to
become the customer of the depository bank with respect to the deposit account; provided,
however, that notwithstanding the foregoing, the requirements
of this Section 7.07  shall
not apply to (i) any zero balance payroll or similar disbursement account maintained by any Grantor
(and each Grantor agrees not to deposit in any payroll account or similar disbursement account
maintained by it any funds, except funds needed at the time of deposit (or within three days
thereafter) to meet payroll needs of such Grantor), (ii) any deposit account maintained by any
Grantor as of the Closing Date and listed on Schedule 7.07(a) until the date sixty (60)
days following the Closing Date.

 

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          7.08. Investment Property.

               (a) If any of the Collateral shall be or become evidenced or represented
by an uncertificated security, such Grantor shall cause the Issuer thereof either (i) to register
the Agent as the registered owner of such uncertificated security, upon original issue or
registration of transfer or (ii) to agree in writing with such Grantor and the Agent that such
Issuer will comply with instructions with respect to such uncertificated security originated by the
Agent without further consent of such Grantor, such agreement to be in substantially the form of
Exhibit F or such other form as the Agent shall approve.

               (b) If any of the Collateral shall be or become evidenced or represented
by a security entitlement, such Grantor shall cause the securities intermediary with respect to
such security entitlement either (i) to identify in its records the Agent as having such security
entitlement against such securities intermediary or (ii) to agree in writing with such Grantor and
the Agent that such securities intermediary will comply with entitlement orders originated by the
Agent without further consent of such Grantor, such agreement to be in substantially the form of
Exhibit G or such other form as the Agent shall approve.

               (c) If any of the Collateral shall be or become evidenced or represented
by a commodity contract, such Grantor shall cause the commodity intermediary with respect to such
commodity contract to agree in writing with such Grantor and the Agent that such commodity
intermediary will apply any value distributed on account of such commodity contract as directed by
the Agent without further consent of such Grantor, such agreement to be in substantially the form
of Exhibit H or such other form as the Agent shall approve.

               (d) If any of the Collateral shall be or become evidenced or represented
by or held in a securities account or a commodity account, such Grantor shall, in the case of a
securities account, comply with subsection (b) of this
Section,7.08 with respect to all
security entitlements carried in such securities account and, in the case of a commodity account,
comply with subsection (c) of this Section 7.08 with respect to all commodity contracts
carried in such commodity account.

               (e) If such Grantor shall receive any stock or other ownership certificate
(including, without limitation, any certificate representing a stock dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the capital stock or other
equity interests of any Issuer, whether in addition to, in substitution of, as a conversion of, or
in exchange for, any shares of or other ownership interests in the Pledged Stock, or otherwise in
respect thereof, such Grantor shall accept the same as the agent of the Secured Creditors, hold the
same in trust for the Secured Creditors and deliver the same forthwith to the Agent in the exact
form received, duly endorsed by such Grantor to the Agent, if required, together with an undated
stock power covering such certificate duly executed in blank by such Grantor and with, if the Agent
so requests, signature guaranteed, to be held by the Agent, subject to the terms hereof, as
additional collateral security for the Secured Obligations.

               (f) Subject to Section 7.08(h) hereof, such Grantor shall be
entitled;

                    (i) to exercise, as it shall think fit, but in a manner not
inconsistent with the terms hereof and of the Credit Agreements, the voting power with respect to
the Pledged Stock of such Grantor, and for that purpose the Agent shall (if any Pledged Stock

 

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shall be registered in the name of the Agent or its nominee) execute or cause to be executed from
time to time, at the expense of such Grantor, such proxies or other instruments in favor of such
Grantor or its nominee, in such form and for such purposes as shall be reasonably required by such
Grantor and shall be specified in a written request therefor, to enable it to exercise such voting
power with respect to the Pledged Stock; and

                    (ii) except as otherwise provided in paragraphs (g) and (h) of
this Section 7.08, to receive and retain for its own account any and all payments made in respect
of the Pledged Securities to the extent such are permitted pursuant to the terms of the Credit
Agreements.

               (g) Any sums paid upon or in respect of the Pledged Securities upon the
liquidation or dissolution of any Issuer shall be paid over to the Agent to be held by it
hereunder as additional collateral security for the Secured Obligations, and in case any
distribution of capital shall be made on or in respect of the Pledged Securities or any property
shall be distributed upon or with respect to the Pledged Securities pursuant to the
recapitalization or reclassification of the capital of any Issuer or pursuant to the
reorganization thereof, the property so distributed shall, unless otherwise subject to a perfected
security interest in favor of the Agent, be delivered to the Agent to be held by it hereunder as
additional collateral security for the Secured Obligations. If any sums of money or property so
paid or distributed in respect of the Pledged Securities shall be received by such Grantor, such
Grantor shall, until such money or property is paid or delivered to the Agent, hold such money or
property in trust for the Secured Creditors, segregated from other funds of such Grantor, as
additional collateral security for the Secured Obligations.

               (h) Upon the occurrence and during the continuance of any Event of
Default, all rights of such Grantor to exercise or refrain from exercising the voting and other
consensual rights that it would otherwise be entitled to exercise pursuant to Section
7.08(f)(i) hereof and to receive the payments pursuant to Section 7.08(f)(ii) hereof
shall cease, and thereupon the Agent shall be entitled to exercise all voting power with respect
to the Pledged Securities and to receive and retain, as additional collateral hereunder, any and
all such payments any time declared or paid upon any of the Pledged Securities during such an
Event of Default and otherwise to act with respect to the Pledged Securities as outright owner
thereof.

               (i) At any time and from time to time with respect to Pledged Securities
other than Pledged Stock either Borrower or a Subsidiary of either Borrower and at any time and
from time to time during the continuance of an Event of Default with respect to Pledged Stock of a
Subsidiary of either Borrower, the Agent may cause all or any of the Pledged Securities to be
transferred to or registered in its name or the name of its nominee or nominees.

               (j) Without the prior written consent of the Agent, such Grantor will not
(i) sell, assign, transfer, exchange, or otherwise dispose of, or grant any option with respect
to, any of the Investment Property or Proceeds thereof or any interest therein (except pursuant to
a transaction permitted by the Credit Agreements), (ii) create, incur or permit to exist any Lien
or option in favor of, or any claim of any Person with respect to, any of the Investment Property
or Proceeds thereof, or any interest therein, except for the Security Interests created by this
Agreement and except for non-consensual Liens permitted by the Credit Agreements, or (iii) enter
into any agreement or undertaking expressly restricting the foreclosure of the Agent’s Security
Interest in any of the Investment Property or Proceeds thereof or any interest therein.

 

21

               (k) In the case of each Grantor which is an Issuer, such Issuer agrees that
(i) it will be bound by the terms of this Agreement relating to the Pledged Securities issued by it
and will comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Agent promptly in writing of the occurrence of any of the events described in Section
7.08(e) or Section 7.08(g) with respect to the Pledged Securities issued by it and
(iii) the terms of Section 13. 04(c) shall apply to it, mutatis mutandis, with respect to
all actions that may be required of it with respect to the Pledged Securities issued by it. Each
Grantor which is an Issuer consents to the grant of a Security Interest in capital stock or other
equity interests of such Issuer the exercise of rights by the Agent in respect of such capital
stock or other equity interests, including (to the extent permitted hereunder) the foreclosure
thereon and the Agent, its nominee or transferee becoming a partner or member of any such Issuer
that is a partnership or limited liability company.

          7.09. Collateral in the Possession of a Bailee. If any goods with a value in excess
of $50,000 are at any lime in the possession of a bailee, such Grantor shall promptly notify the
Agent thereof and, if requested by the Agent, shall promptly obtain an acknowledgement from such
bailee, in form and substance reasonably satisfactory to the Agent, that such bailee holds such
Collateral for the benefit of the Secured Creditors, provided, that, notwithstanding the foregoing,
this Section 7.09 shall not apply to any goods constituting.

          7.10. Electronic Chattel Paper and Transferable Records. If such Grantor, together
with the other Grantors, shall at any time hold or acquire interests in any electronic chattel
paper or any “transferable record,” as that term is defined in Section 201 of the federal
Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform
Electronic Transactions Act as in effect in any relevant jurisdiction, in excess of $250,000 in the
aggregate, such Grantor shall promptly notify the Agent thereof and, at the request of the Agent,
shall take such action as the Agent may reasonably request to vest in the Agent control, under
Section 9-105 of the UCC, of such electronic chattel paper or control under Section 201 of the
federal Electronic Signatures in Global and National Commerce Act or, as the case may be, Section
16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such
transferable record. The Agent agrees with such Grantor that the Agent shall arrange, pursuant to
procedures reasonably satisfactory to the Agent and so long as such procedures will not result in
the Agent’s loss of control, for such Grantor to make alterations to the electronic chattel paper
or transferable record permitted under Section 9-105 of the UCC or, as the case may be, Section 201
of the federal Electronic Signatures in Global and National Commerce Act or Section 16 of the
Uniform Electronic Transactions Act, unless an Event of Default has occurred and is continuing or
would occur after taking into account any action by such Grantor with respect to such electronic
chattel paper or transferable record.

          7.11. Letter-of-Credit Rights. If such Grantor, together with the other Grantors,
shall at any time be beneficiaries under one or more letters of credit, now or hereafter issued,
having aggregate undrawn amounts of more than $250,000, such Grantor shall promptly notify the
Agent thereof and, at the request and option of the Agent, such Grantor shall either (a) arrange,
for the issuer and any nominated person with respect to such letter of credit to consent, pursuant
to an agreement or other authenticated record with and in the form of Exhibit I or in such
other form and in substance satisfactory to the Agent, to an assignment to the Agent of the
proceeds of any drawing under the letter of credit or (b) arrange for the Agent to become the
transferee beneficiary of the letter of credit.

 

22

          7.12. Commercial Tort Claims. If such Grantor shall at any time hold or acquire a
commercial tort claim, such Grantor shall immediately notify the Agent in a writing signed by such
Grantor of the brief details thereof and grant to the Agent for the benefit of the Secured
Creditors in such writing a security interest therein and in the proceeds thereof, all upon the
terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to
the Agent.

          7.13. Intellectual Property.

               (a) Except in any respect that would not materially impair the right,
power, authority and ability of any Grantor to use its intellectual property as necessary or
convenient for the profitable conduct of their businesses and would not reasonably be expected to
have a Material Adverse Effect:

                    (i) Such Grantor (either itself or through licensees) will
(A) continue to use each material Trademark on each and every trademark class of goods in the
ordinary course of business in order to maintain such Trademark in full force free from any claim
of abandonment for non-use in any class of goods for which
registration was obtained, (B) maintain in the ordinary course
of business the quality of products and services offered under
such Trademark and take all necessary steps to ensure that all licensed users of such Trademark
maintain as in the past such quality, (C) use such Trademark with the appropriate notice of
registration and all other notices and legends required by applicable Requirements of Law, (D) not
adopt or use any mark which is confusingly similar or a colorable imitation of such Trademark
unless the Agent, for the ratable benefit of the Secured Creditors, shall obtain a perfected
security interest in such mark pursuant to this Agreement and the Intellectual Property Security
Agreement, and (E) not (and not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby such Trademark may become invalidated or impaired in any way.

                    (ii) Such Grantor (either itself or through licensees) will not
do any act, or omit to do any act, whereby any material Patent may become forfeited, abandoned or
dedicated to the public.

                    (iii) Such Grantor (either itself or through licensees) (A) will
employ each material Copyright and (B) will not (and will not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby any material portion of the
Copyrights may become invalidated or otherwise impaired. Such Grantor will not (either itself or
through licensees) do any act whereby any material portion of the Copyrights may fall into the
public domain.

                    (iv) Such Grantor (either itself or through licensees) will not
do any act that knowingly uses any material Intellectual Property to infringe the intellectual
property rights of any other Person.

                    (v) Such Grantor (either itself or through licensees) will use
proper statutory notice in connection with the use of each material Patent, Trademark and
Copyright included in the Intellectual Property.

                    (vi) Such Grantor will take all reasonable and necessary steps, including, without
limitation, in any proceeding before the PTO), the Copyright Office or

 

23

any similar office or agency in any other country or any political subdivision thereof, to maintain
and pursue each application (and to obtain the relevant registration) and to maintain each
registration of material intellectual Property, including, without limitation, the payment of
required fees and taxes, the filing of responses to office actions issued by the PTO and the
Copyright Office, the filing of applications for renewal or extension, the filing of affidavits of
use and affidavits of incontestability, the filing of divisional, continuation,
continuation-in-part, reissue, and renewal applications or extensions, the payment of maintenance
fees, and the participation in interference, reexamination, opposition, cancellation, infringement
and misappropriation proceedings.

               (vii) Such Grantor (either itself or through licensees) will not,
without the prior written consent of the Agent, discontinue use of or otherwise abandon any
Intellectual Property or abandon any right to file an application for letters patent, trademark,
or copyright, unless such Grantor shall have previously determined that such use or the pursuit or
maintenance of such Intellectual Property is no longer desirable in the conduct of such Grantor’s
business and that the loss thereof could not reasonably be expected to have a Material Adverse
Effect and, in which case, such Grantor shall give prompt notice of any such abandonment to the
Agent in accordance herewith.

               (viii) In the event that any material Intellectual Property is
infringed, misappropriated or diluted by a third party, such Grantor shall (A) take such actions
as such Grantor shall reasonably deem appropriate under the circumstances to protect such
Intellectual Property and (B) if such Intellectual Property is of material economic value,
promptly notify the Agent after it learns thereof and sue for infringement, misappropriation or
dilution, to seek injunctive relief where appropriate and to recover any and all damages for such
infringement, misappropriation or dilution.

               (ix) Such Grantor will do all things that are necessary and
proper within such Grantor’s power and control to keep each license of Intellectual Property held
by such Grantor as licensee or licensor in full force and effect except to the extent that (A)
such Grantor has reasonably determined that the failure to keep any such license in full force and
effect could not be reasonably expected to have a Material Adverse Effect or (B) any such license
would expire by its terms or is terminable at will by a Person other than Grantor.

               (x) In the event that such Grantor shall create any
nonexclusive license in any Trademark, Copyright, Patent or other Intellectual Property or General
Intangible, in each case owned by or licensed to such Grantor (whether pursuant to a local
marketing agreement, time broadcasting agreement or otherwise) and such license is (x) for a
duration of more than eighteen (18) months, (y) not terminable at the option of such Grantor and
(z) not by its terms expressly subject and subordinate to the Security Interest, then, and in any
such event, such license shall constitute a Disposition of the licensed property. In the event
such Grantor creates any license in Trademark, Copyright, Patent, other Intellectual Property or
General Intangible owned by or licensed to such Grantor that does not meet the requirements of the
immediately preceding sentence, such license shall not constitute a Disposition of such Trademark,
Copyright, Patent, other Intellectual Property or General Intangible.

               (xi) Such Grantor shall maintain all of its rights to its domain
names in full force and effect, other than any, the loss of which could not reasonably be expected
to result in a Material Adverse Effect.

 

24

               (b) Such Grantor will notify the Agent immediately if it knows, or has
reason to know, that any registration relating to any material Intellectual Property has been or
could reasonably be expected to be forfeited, abandoned or dedicated to the public, or of any
adverse determination or development (including, without limitation, the institution of, or any
such determination or development in, any proceeding in the PTO, the Copyright Office or any court
or tribunal in any country) regarding such Grantor’s ownership of, or the validity of, any material
Intellectual Property or such Grantor’s right to register the same or to own and maintain the same.

               (c) Whenever such Grantor, either by itself or through any agent,
employee, licensee or designee, shall file an application for the registration of any Intellectual
Property with the PTO, the Copyright Office or any similar office or agency in any other country or
any political subdivision thereof, such Grantor shall report such filing to the Agent within five
Business Days after the last day of the fiscal quarter in which such filing occurs. Upon request of
the Agent, such Grantor shall execute and deliver, and have recorded, any and all agreements,
instruments, documents, and papers as the Agent may request to evidence the Secured Creditors’
Security Interest in any Copyright, Patent, Trademark or other Intellectual Property and the
goodwill and general intangibles of such Grantor relating thereto or represented thereby.

               (d) Such Grantor agrees that, should it obtain an ownership interest in
any item of Intellectual Property which is not now a part of the Intellectual Property Collateral
(the “After-Acquired Intellectual Property”), (i) the provisions of Section 3 shall
automatically apply thereto, (ii) any such After-Acquired Intellectual Property, and in the case of
trademarks, the goodwill of the business connected therewith or symbolized thereby, shall
automatically become part of the Collateral, (iii) it shall give prompt (and in any event within
twenty (20) days after the date of such acquisition) written notice thereof to the Agent in
accordance herewith, and (iv) it shall provide the Agent promptly (and, in any event within twenty
(20) days after the date of such acquisition) with an amended Perfection Certificate and amended
schedules to the applicable Intellectual Property Security Agreement reflecting the acquisition of
such After-Acquired Intellectual Property. Such Grantor authorizes the Agent to modify this
Agreement by amending the Perfection Certificate and to modify the schedules to the applicable
Intellectual Property Security Agreement if such Grantor fails to provide the Agent with
satisfactory amended schedules hereto or thereto within the time period required hereunder (and
will cooperate with the Agent in effecting any such amendment) to include any After-Acquired
Intellectual Property which becomes part of the Intellectual Property Collateral under this
Section, and to record any such modified agreement with the PTO, the Copyright Office, or any
other applicable Governmental Authority.

               (e) Such Grantor assumes all responsibility and liability arising from the
use of the Intellectual Property and hereby indemnifies and holds the Secured Creditors harmless
from and against any claim, suit, loss, damage or expense (including reasonable attorneys’ fees
arising out of any alleged defect in any product manufactured, promoted or sold by such Grantor (or
any affiliate or subsidiary thereof) in connection with such Intellectual Property or out of the
manufacture, promotion, labeling, sale or advertisement of any such product by such Grantor (or any
affiliate or subsidiary thereof), except for any claim, suit, loss, damage or expense arising
solely from the gross negligence or willful misconduct of a Secured Creditor as finally determined
by a court of competent jurisdiction.

               (f) Such Grantor agrees to execute one or more applicable Intellectual Property Security
Agreements with respect to its Intellectual Property in order to record the

 

25

Security Interest granted herein to the Agent for the ratable benefit of the Secured Creditors
with the PTO, the Copyright Office, and any other applicable Governmental Authority.

          7.14.
Maintenance of Collateral; Compliance with Laws. (a) Such Grantor shall keep
the Collateral provided by it in good order and repair and shall not use the same in violation of
any law to the extent that such violation could reasonably be expected to have a Material Adverse
Effect.

          7.15. Dispositions of Collateral. Such Grantor shall not sell or otherwise dispose,
or offer to sell or otherwise dispose, of the Collateral provided by it or any interest therein
except for dispositions permitted by the Credit Agreements. In the event that such Grantor shall
create any lease of any personal property owned by or leased to such Grantor and such lease is (x)
for a duration of more than eighteen (18) months, (y) not terminable at the option of such Grantor
and (z) not by its terms expressly subject and subordinate to the Security Interest, then, and in
any such event, such lease shall constitute a Disposition of the leased property. In the event
such Grantor creates any lease in any personal property owned by or leased to such Grantor that
does not meet the requirements of the immediately preceding sentence, such lease shall not
constitute a Disposition of such personal property.

          7.16. Maintenance of Insurance. Such Grantor, at its sole cost and expense, shall
maintain or cause to be maintained insurance covering physical loss or damage to the Collateral
provided by it in accordance with the Credit Agreements.

          7.17. Periodic Certification. From time to time on demand (which demand, absent an
Event of Default, shall be no more frequent that once every four months) from the Agent, but in no
event less frequently than annually, such Grantor shall deliver to the Agent a supplemental
perfection certificate (each, a “Perfection Supplement”) executed by such Grantor setting forth the
information required pursuant to the Perfection Certificate or confirming that there has been no
change in such information since the date of such certificate or the
date of the most recent
certificate delivered pursuant to this Section 7.17.

          7.18. Other Actions as to any and all Collateral. Such Grantor further agrees to
take any other action reasonably requested by the Agent to insure the attachment, perfection and,
first priority of, and the ability of the Agent to enforce, the Security Interest in any and all of
the Collateral provided by such Grantor including, without limitation, (a) executing, delivering
and, where appropriate, filing financing statements and amendments relating thereto under the UCC,
to the extent, if any, that such Grantor’s signature thereon is required therefor; (b) causing the
Agent’s name to be noted as secured party on any certificate of title for a titled good if such
notation is a condition to attachment, perfection or priority of, or ability of the Agent to
enforce, the Security Interest in such Collateral; (c) complying with any provision of any statute,
regulation or treaty of the United States of America as to any Collateral if compliance with such
provision is a condition to the attachment, perfection or priority of, or the ability of the Agent
to enforce, the Security Interest in such Collateral; (d) obtaining governmental and other third
party consents and approvals, including without limitation any consent of any licensor, lessor or
other person obligated on such Collateral; (e) obtaining waivers from mortgagees, bailees,
landlords and any other person who has possession of or any interest in any Collateral or any real
property on which any such Collateral may be located, in form and substance satisfactory to the
Agent; (f) providing to the Agent “control” over such Collateral, to the extent that perfection can
only be achieved under the UCC by control or where obtaining perfection by control provides more
protection to the Secured Creditors that perfection by filing a financing statement; and (g) taking

 

26

all actions required by the UCC or by other law, as applicable in any relevant UCC jurisdiction,
or by other law as applicable in any foreign jurisdiction; provided, however, that nothing
contained in paragraphs (d) or (e) shall require such Grantor to pay any consideration (other than
any governmental application, processing, filing or recording fees) in order to obtain any consent
or waiver referred to in such paragraphs.

          7.19. Treatment of Accounts. No Grantor shall grant or extend the time for payment of
any material account, or compromise or settle any account for less than the full amount thereof, or
release any person or property, in whole or in part, from payment thereof, or allow any credit or
discount thereon, other than as normal and customary in the ordinary course of a Grantor’s
business.

     Section 8.
Inspection and Verification. The Agent and such Persons as the Agent may designate
shall have the right, at each Grantor’s own cost and expense, to inspect the Collateral of such
Grantor, all records related thereto (and to make extracts and copies from such records) and the
premises upon which any of the Collateral of such Grantor is located, to discuss such Grantor’s
affairs with the officers of such Grantor (i) in the absence of an Event of Default, upon
reasonable prior notice and during regular operating hours for such Grantor and (ii) otherwise, at
any time as the Agent shall decide in its sole discretion.

     Section 9. Collateral Protection Expenses; Preservation of Collateral.

          9.01. Expenses Incurred by the Agent. In its discretion, the Agent may, if the
relevant Grantor fails to do so, discharge taxes and other encumbrances at any time levied or
placed on any material portion of the Collateral, make repairs thereto and pay any necessary filing
fees or insurance premiums. Each Grantor agrees to reimburse the Agent on demand for any and all
expenditures so made, and all sums disbursed by the Agent in connection with this Section
9.01, including reasonable attorneys’ fees, court costs, expenses and other charges
relating thereto, shall be payable, upon demand, by such Grantor to the Agent shall bear interest
at the per annum rate specified in Section 17 and shall constitute additional Secured
Obligations. The Agent shall have no obligation to any Grantor to make any such expenditures, nor
shall the making thereof relieve any Grantor of any default.

          9.02. Agent’s Obligations and Duties.

               (a) Anything herein to the contrary notwithstanding, each Grantor shall
remain liable under each contract or agreement comprised in the Collateral provided by it to be
observed or performed by such Grantor thereunder. Neither the Agent nor any other Secured Creditor
shall have any obligation or liability under any such contract or agreement by reason of or
arising out of this Agreement or the receipt by the Agent or any other Secured Creditor of any
payment relating to any of the Collateral, nor shall the Agent or any other Secured Creditor be
obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any
such contract or agreement, to make inquiry as to the nature or sufficiency of any payment
received by the Agent or any other Secured Creditor in respect of the Collateral or as to the
sufficiency of any performance by any party under any such contract or agreement, to present or
file any claim, to take any action to enforce any performance or to collect the payment of any
amounts which may have been assigned to the Agent or any other Secured Creditor or to which the
Agent or any other Secured Creditor may be entitled at any time or times.

 

27

               (b) The Agent’s sole duty with respect to the custody, safe keeping and
physical preservation of the Collateral in its possession, under Section 9-207 of the NYUCC or
otherwise, shall be to deal with such Collateral in the same manner as the Agent deals with similar
property for its own account.

               (c) Neither the Agent, nor any other Secured Party nor any of their
respective officers, directors, partners, employees, agents, attorneys and other advisors,
attorneys-in-fact or affiliates shall be liable for failure to demand, collect or realize upon any
of the Collateral or for any delay in doing so or shall be under any obligation to sell or
otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take
any other action whatsoever with regard to the Collateral or any part thereof. The powers conferred
on the Secured Creditors hereunder are solely to protect the Secured Creditors’ interests in the
Collateral and shall not impose any duty upon any Secured Creditor to exercise any such powers.
The Secured Creditors shall be accountable only for amounts that they actually receive as a result
of the exercise of such powers, and neither they nor any of their officers, directors, partners,
employees, agents, attorneys and other advisors, attorneys-in-fact or affiliates shall be
responsible to any Grantor for any act or failure to act hereunder, except to the extent that any
such act or failure to act is found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from their respective gross negligence or willful misconduct.

               (d) Each Grantor acknowledges that the rights and responsibilities of the
Agent under this Agreement with respect to any action taken by the Agent or the exercise or
non-exercise by the Agent of any option, voting right, request, judgment or other right or remedy
provided for herein or resulting or arising out of this Agreement shall, as between the Agent and
the other Secured Creditors, be governed by the Credit Agreements and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the Agent and the
Grantors, the Agent shall be conclusively presumed to be acting as agent for the Secured Creditors
with full and valid authority so to act or refrain from acting, and no Grantor shall be under any
obligation, or entitlement, to make any inquiry respecting such authority.

          9.03. Duties as to Pledged Securities.

               (a) With respect to any calls, conversions, exchanges, redemptions,
offers, tenders or similar matters relating to any such Pledged Securities (herein called
“Events”), any duty in connection therewith imposed on the Agent by applicable law shall be fully
satisfied if:

                    (i) the Agent exercises reasonable care to ascertain the
 occurrence and to give reasonable notice to the applicable Grantor of any Events applicable to any
Pledged Securities that are registered and held in the name of Agent or its nominee;

                    (ii) the
Agent gives the applicable Grantor reasonable notice of the occurrence of any Events of which the Agent has received actual knowledge, which Events are
applicable to any securities that are in bearer form or are not registered and held in the name of
the Agent or its nominee (each Grantor agreeing to give the Agent reasonable notice of the
occurrence of any Events of which such Grantor has knowledge, which Events are applicable to any
securities in the possession of the Agent); and

                    (iii) the Agent endeavors to take such action with respect to
any of the Events as the applicable Grantor may reasonably and specifically request in writing in

 

28

sufficient time for such action to be evaluated and taken or, if the Agent reasonably believes
that the action requested would adversely affect the value of the Pledged Securities as collateral
or the collection of the Secured Obligations, or would otherwise prejudice the interests of any
Secured Creditor, the Agent gives reasonable notice to such Grantor that any such requested action
will not be taken and, if the Agent makes such determination or if such Grantor fails to make such
timely request, the Agent takes such other action as it reasonably deems advisable in the
circumstances.

               (b) Except as hereinabove specifically set forth, neither the Agent nor
any other Secured Creditor shall have any further obligation to ascertain the occurrence of, or to
notify any Grantor with respect to, any Events and shall not be deemed to assume any such further
obligation as a result of the establishment by the Agent or any other Secured Creditor of any
internal procedures with respect to any securities in its possession, nor shall the Agent or any
other Secured Creditor be deemed to assume any other responsibility for, or obligation or duty with
respect to, any Pledged Securities or its use of any nature or kind, or any matter or proceedings
arising out of or relating thereto, including, without limitation, any obligation or duty to take
any action to collect, preserve or protect its or any Grantor’s rights in the Pledged Securities or
against any prior parties thereto, but the same shall be at such Grantor’s sole risk and
responsibility at all times.

               (c) Nothing contained in this Section 9.03 shall be deemed to
create any
obligation in respect of Events on the Agent, the purpose of this
Section 9.03 being solely to
provide standards, in the event that applicable law imposes any obligations on the Agent as to
Events.

     Section 10.
Securities and
Deposits. Without limitation of Section 7.08, but subject
to Section 7.08(i), the Agent may at any time at its option, transfer to itself or any
nominee any securities constituting Collateral, and, subject to Section 7.08(f)(ii),
receive any income thereon and hold such income as additional Collateral or apply it to the
Secured Obligations. The Agent may after the occurrence and during the continuance of an Event of
Default demand, sue for, collect, or make any settlement or compromise which it deems desirable
with respect to the Collateral. Regardless of the adequacy of Collateral or any other security for
the Secured Obligations, any deposits or other sums at any time credited by or due from the Agent
or any other Secured Creditor to any Grantor may at any time be applied to or set off against any
of the Secured Obligations whether or not due and owing.

     Section 11. Notification to Account Debtors and Other Persons Obligated on
Collateral. If an Event of Default shall have occurred and be continuing, each Grantor shall, at
the request of the Agent, notify account debtors and other persons obligated on any of the
Collateral of such Grantor of the Security Interest in any account, chattel paper, general
intangible, instrument or other claims constituting Collateral that payment thereof is to be made
directly to the Agent or to any financial institution designated by the Agent as the Agent’s agent
therefor, and the Agent may itself, if an Event of Default shall have occurred and be continuing,
without notice to or demand upon any Grantor, so notify account debtors and other persons
obligated on Collateral. After the making of such a request or the giving of any such
notification, each Grantor shall hold any proceeds of collection of accounts, chattel paper,
general intangibles, instruments and other claims constituting Collateral received by the Grantor
as trustee for the Secured Creditors without commingling the same with other funds of the Grantor
and shall turn the same over to the Agent in the identical form received, together with any
necessary endorsements or assignments. The Agent shall have no liability or responsibility to any
Grantor

 

29

for acceptance of a check, draft or other order for payment of money bearing the legend “payment
in full” or words of similar import or any other restrictive legend or endorsement or be
responsible for determining the correctness of any remittance. Without limitation of the
foregoing, during the continuation of an Event of Default (1) the Agent shall have the right, but
not the obligation, to make test verifications of the accounts in any manner and through any
medium that it reasonably considers advisable, and the Grantors shall furnish all such assistance
and information as the Agent may require in connection with such test verifications, and (2) the
Agent in its own name or in the name of others may communicate with account debtors on the
accounts to verify with them to the Agent’s satisfaction the existence, amount and terms of any
accounts. The Agent may apply the proceeds of collection of accounts, chattel paper, general
intangibles, instruments and other claims constituting Collateral received by the Agent or any
other Secured Creditor to the Secured Obligations or hold such proceeds as additional Collateral,
at the option of the Agent, The provisions of Section 9-209 of the NYUCC shall not apply to any
account, chattel paper or payment intangible as to which notification of assignment has been sent
to the account debtor or other person obligation on the Collateral, whether under this Section
11, Section 12 or Section 13.

     Section 12. Power of Attorney.

          12.01. Appointment and Powers of Agent. Each Grantor hereby irrevocably constitutes
and appoints the Agent and any officer or agent thereof, with full power of substitution, as its
true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead
of such Grantor and in the name of such Grantor or in its own name, for the purpose of carrying out
the terms of this Agreement, to take any and all appropriate action and to execute any and all
documents and instruments which may be necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the
Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

               (a) in the name of such Grantor or its own name, or otherwise, take
possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments
for the payment of moneys due under any Receivable or with respect to any other Collateral and file
any claim or take any other action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Agent for the purpose of collecting any and all such moneys due under any
Receivable or with respect to any other Collateral whenever payable;

               (b) in the case of any Intellectual Property, execute and deliver, and have
recorded, any and all agreements, instruments, documents and papers as the Agent may request to
evidence the Security Interest in such Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented thereby;

               (c) pay or discharge taxes and Liens levied or placed on or threatened
against the Collateral, effect any repairs or provide any insurance and pay all or any part of the
premiums therefor and the costs thereof;

               (d) execute, in connection with any sale provided for in Section
13, any
endorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral;

 

30

               (e) exercise all rights of such Grantor as owner of the Pledged Securities
or as party to any partnership, limited liability company or similar agreement, including, without
limitation, the right to sign any and all amendments, instruments, certificates, proxies, and other
writings and exercise all voting and consent rights with respect to the Pledged Securities;

               (f) (1) direct any party liable for any payment under any of the
Collateral to make payment of any and all moneys due or to become due thereunder directly to the
Agent or as the Agent shall direct; (2) ask or demand for, collect, and receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral; (3) sign and endorse any invoices, freight or express
bills, bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications, notices and other documents in connection with any of the
Collateral; (4) commence and prosecute any suits, actions or proceedings at law or in equity in
any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce
any other right in respect of any Collateral; (5) defend any suit, action or proceeding brought
against such Grantor with respect to any Collateral; (6) settle, compromise or adjust any such
suit, action or proceeding and, in connection therewith, give such discharges or releases as the
Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with the goodwill
of the business to which any such Copyright, Patent or Trademark pertains) throughout the world for
such term or terms, on such conditions, and in such manner, as the Agent shall in its sole
discretion determine; and (8) generally, sell, transfer, pledge and make any agreement with respect
to or otherwise deal with any of the Collateral as fully and completely as though the Agent were
the absolute owner thereof for alt purposes, and do, at the Agent’s option and such Grantor’s
expense, at any time, or from time to time, all acts and things which the Agent deems necessary to
protect, preserve or realize upon the Collateral and the Security Interest therein and to effect
the intent of this Agreement, all as fully and effectively as such Grantor might do; and

               (g) to the extent that such Grantor’s authorization given in Section
4 is
not sufficient, to file such financing statements or similar documents under the laws of any
jurisdiction with respect hereto, with or without such Grantor’s signature, or a photocopy of this
Agreement in substitution for a financing statement or such other document, as the Agent may deem
appropriate and to execute in such Grantor’s name such financing statements, other such documents
and amendments thereto and continuation statements which may require
such Grantor’s signature.

Anything in this Section 12.01 to the contrary notwithstanding, the Agent agrees that it
will not exercise any rights under the power of attorney provided for in this Section.
12.0l (other than under paragraph (g) of this Section 12.01) unless an Event of
Default shall have occurred and be continuing.

          12.02.
Failure of Grantor to Perform. If any Grantor fails to perform or comply with
any of its agreements contained herein, the Agent, at its option, but without any obligation so to
do, may perform or comply, or otherwise cause performance or compliance, with such agreement.

          12.03. Expenses of Attorney-in-Fact. The expenses of the Agent incurred in connection
with actions undertaken as provided in this Section 12, together with interest thereon at
a rate per annum equal to the Default Rate, from the date of payment by the Agent to the date
reimbursed by the relevant Grantor, shall be payable by such Grantor to the Agent on demand.

          

 

31

          12.04. Ratification by Grantor. To the extent permitted by law, each Grantor hereby
ratifies all that said attorneys shall lawfully do or cause to be done by virtue of this
Section 12. This power of attorney is a power coupled with an interest and is irrevocable.

          12.05. No Duty on Agent. The powers conferred on the Agent, its directors, officers
and agents pursuant to this Section 12 are solely to protect the Secured Creditors’
interests in the Collateral and shall not impose any duty upon any of them to exercise any such
powers. Each Secured Creditor shall be accountable only for the amounts that it actually receives
as a result of the exercise of such powers, and neither it nor any of its officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure to act, except for
such Secured Creditor’s own gross negligence or willful misconduct.

     Section 13. Remedies.

          13.01. Default. Grantors shall be in default under this Agreement (a) whenever any
Event of Default has occurred and is continuing (and each of the Grantors shall thereupon be in
default hereunder without regard to whether or to what degree any Grantor individually may have
caused, participated in, or had any knowledge of the occurrence of such Event of Default) and (b)
at all times after any Loan has become due and payable and remains unpaid beyond any applicable
grace period, whether at maturity, upon acceleration pursuant to the applicable Credit Agreement or
otherwise.

          13.02. Remedies Upon Default. At any time when any Grantor is in default under this
Agreement as set forth in Section13.01, the Agent may exercise and enforce, in any order,
(i) each and all of the rights and remedies available to a secured party upon default under the
NYUCC or any other applicable UCC or other applicable law, (ii) each and all of the rights and
remedies available to it under the Credit Agreements or any other Loan Document and (iii) each and
all of the following rights and remedies:

                     (a) Collection Rights. Without notice to any Grantor or any other
Loan
Party, the Agent may notify any or all account debtors and obligors on any accounts, instruments,
general intangibles or other claims constituting Collateral of the Secured Creditors’ Security
Interests therein and may direct, demand, and enforce payment thereof directly to the Agent. The
provisions of Section 9-209 of the NYUCC shall not apply to any account, chattel paper or payment
intangible as to which notification of assignment has been sent to the account debtor.

                     (b) Taking Possession. The Agent may (i) enter upon any and all
premises owned or leased by any Grantor where Collateral is located (or believed by the Agent to be
located), with or (to the fullest extent permitted by law) without judicial process and without any
obligation to pay rent, (ii) prior to the disposition of the Collateral, store, process, repair or
recondition the Collateral or otherwise prepare the Collateral for disposition in any manner to the
extent the Agent deems appropriate, (iii) take possession of any Grantor’s premises or place
custodians in exclusive control thereof, remain on such premises and use the same and any Grantor’s
equipment for the purpose of completing any work in process or otherwise preparing the Collateral
for sale or selling or otherwise transferring the Collateral, (iv) take possession of all items of
Collateral that are not then in its possession, either upon such premises or by removal from such
premises, and (v) require any Grantor or the Person in possession thereof to deliver such
Collateral to the Agent at one or more locations designated by the Agent and reasonably convenient
to it and each Grantor owning an interest therein.

 

32

               (c) Foreclosure. The Agent may sell, lease, license or otherwise
dispose
of or transfer any or all of the Collateral or any part thereof in one or more parcels at public
sale or in private sale or transaction, on any exchange or market or at the Agent’s offices or on
any Grantor’s premises or at any other location, for cash, on credit or for future delivery, and
may enter into all contracts necessary or appropriate in connection therewith, without any notice
whatsoever unless required by law. Where permitted by law, one or more of the Secured Creditors
may be the purchasers at any such sale and in such event, if such bid is made by all of the Lenders
or otherwise whenever a credit bid is expressly permitted under each Credit Agreement or approved
in writing by the Agent and the Required Lenders, the Secured Creditors bidding at such sale may
bid part or all of the Obligations owing to them without necessity of any cash payment on account
of the purchase price, even though any other purchaser at such sale is required to bid a purchase
price payable in cash. Each Grantor agrees that at least ten (10) calendar days’ written notice
to such Grantor of the time and place of any public sale of Collateral owned by it (or, to the
extent such Grantor is entitled by law to notice thereof, the public sale of any other Collateral),
or the time after which any private sale of Collateral owned by it (or, to the extent such Grantor
is entitled by law to notice thereof, the private sale of any other Collateral) is to be made,
shall be commercially reasonable. For purposes of such notice, to the fullest extent permitted by
law (i) each Grantor waives notice of any sale of Collateral owned by any other Grantor and (ii)
each Grantor agrees that notice given to either Borrower shall constitute notice given to such
Grantor, The giving of notice of any such sale or other disposition shall not obligate the Agent to
proceed with the sale or disposition, and any such sale or disposition may be postponed or
adjourned from time to time, without further notice.

               (d) Voting
Rights. The Agent may exercise any and all rights of
any
Grantor as the owner of any Pledged Securities, including, without limitation, voting rights,
rights to give or withhold consent under any agreement under which any Pledged Security is issued
and all other rights referred to in Section 12 .01 (e).

               (e) Use
of Intellectual Property. The Agent may, on a
royalty-free basis,
use and license use of any Trademark, Trade Secret, trade name, trade style, Copyright, Patent,
technical knowledge or process or other Intellectual Property owned, held or used by any Grantor in
respect of any Collateral as to which any right or remedy of the Agent is exercised or enforced. In
addition, the Agent may exercise and enforce such rights and remedies for collection as may be
available to it by law or agreement. Each Grantor grants a license pursuant to Section
13.03 in connection therewith.

               (f) Use
of Collateral. With respect to any Collateral in the
possession of
the Agent or any other Secured Creditor, or a bailee or other third party holding on its behalf,
the Agent or such other Secured Creditor may use or operate such Collateral in any manner and to
the extent determined by the Agent or such Secured Creditor.

          13.03. Grant of License to Use Intellectual Property. For the purpose of enabling the
Agent to exercise rights and remedies under this Section 13 at such time as the Agent
shall be lawfully and otherwise entitled to exercise such rights and remedies, each Grantor hereby
grants to the Agent an irrevocable, non-exclusive license (exercisable without payment of royalty
or other compensation to such Grantor) to use, license or sub-license any of the Collateral
consisting of Intellectual Property now owned or hereafter acquired by the Grantor to the extent
that such Grantor is not legally or contractually prohibited from doing so (Grantor agreeing to
use commercially reasonable efforts not to enter into, after the Closing Date, any such
contractual prohibition), and wherever the same may be located, and including in such license
reasonable

 

33

access to all media in which any of the licensed items may be recorded or stored and to all
computer software and programs used for the compilation or printout thereof. The use of such
license by the Agent shall be exercised, at the Agent’s option, only upon the occurrence and during
the continuation of an Event of Default; provided that any license, sub-license or other
transaction entered into by the Agent in accordance herewith shall be binding upon each Grantor
notwithstanding any subsequent cure, waiver or other termination of an Event of Default.

          13.04.
Waivers by Grantors. Each Grantor hereby irrevocably waives (a) all rights of
redemption from any foreclosure sale, (b) the benefit of all valuation, appraisal, exemption and
moratorium laws, (c) to the fullest extent permitted by law, all rights to notice or a hearing
prior to the exercise by the Agent of its right to take possession of any Collateral, whether by
self-help or by legal process and any right to object to the Agent taking possession of any
Collateral by self-help, and (d) if the Agent seeks to obtain possession of any Collateral by
replevin, claim and delivery, attachment, levy or other legal process, (i) any notice or demand for
possession prior to the commencement of legal proceedings, (ii) the posting of any bond or security
in any such proceedings, and (iii) any requirement that the Agent retain possession and not dispose
of any Collateral until after a trial or final judgment in such proceedings.

          13.05. Application of Proceeds. Except as expressly provided elsewhere in this
Agreement, all proceeds received by the Agent in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral may, in the discretion of the Agent, be held by
the Agent as Collateral for, or then, or at any other time thereafter, applied in full or in part
by the Agent against, the Secured Obligations in the following order of priority:

     FIRST: to the payment of all reasonable costs and expenses of such sale, collection
or other realization, including reasonable compensation to the Agent and its agents and
counsel, and all other reasonable expenses, liabilities and advances made or incurred by
the Agent in connection therewith, and all amounts for which the Agent is entitled to
indemnification hereunder and all reasonable advances made by the Agent hereunder for the
account of any Grantor, and to the payment of all reasonable costs and expenses paid or
incurred by the Agent in connection with the exercise of any right or remedy hereunder,
all in accordance with Section 19.09;

     SECOND: to the payment of all other Secured Obligations (for the ratable benefit of
the holders thereof) then due and payable in the manner and order provided in the Credit
Agreement;

     THIRD:
to any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the
NYUCC; and

     FOURTH, to the payment to or upon the order of the Grantor entitled thereto, or to
whomsoever may be lawfully entitled to receive the same or as a court of competent
jurisdiction may direct, of any surplus then remaining from such proceeds.

          13.06.
Surplus, Deficiency. Any surplus proceeds of any sale or other
disposition by the Agent of any Collateral remaining after discharge of the Credit Agreements and
after all Secured Obligations are paid in full and in cash and any payments required by Sections
9-608(a)(l)(C) or 9-615(a)(3) of the NYUCC are paid in full shall be paid over to the Grantor
entitled thereto, or to whomever may be lawfully entitled to receive such surplus or as a court of
competent jurisdiction may direct, but prior to termination and discharge of the Credit

 

34

Agreements, such surplus proceeds may be retained by the Agent and held as Collateral until
termination and discharge of the Credit Agreements, Each Borrower and each Guarantor shall be and
remain liable for any deficiency.

          13.07. Information Related to the Collateral. If, during the continuance of an Event
of Default, the Agent determines to sell or otherwise transfer any Collateral, each Grantor shall,
and shall cause any Person controlled by it to, furnish to the Agent all information the Agent may
request that pertains or could pertain to the value or condition of the Collateral or that would or
might facilitate such sale or transfer. The Agent shall have the right, notwithstanding any
confidentiality obligation or agreement otherwise binding upon it, freely (but not in violation of
any taw, including federal securities Saws) to disclose such information, and any and all other
information (including confidential information) pertaining in any manner to the Collateral or the
assets, liabilities, results of operations, business or prospects of any Secured Creditors, freely
to any Person that the Agent in good faith believes to be a potential or prospective purchaser in
such sale or transfer, without liability for any disclosure, dissemination or use that may be made
as to such information by any such Person.

          13.08. Sale Exempt from Registration. The Agent shall be entitled at any such sale or
other transfer, if it deems it advisable to do so, to restrict the prospective bidders or
purchasers to Persons who will provide assurances satisfactory to the Agent that the Collateral may
be offered and sold to them without registration under the Securities Act, and without registration
or qualification under any other applicable state or federal law. Upon the consummation
of any such sale, the Agent shall have the right to assign, transfer and deliver to the purchaser
or purchasers thereof the Collateral so sold. The Agent may solicit offers to buy the Collateral,
or any part of it, from a limited number of investors deemed by the Agent, in its good faith
judgment or in good faith reliance upon advice of its counsel, to meet the requirements to purchase
securities under Regulation D promulgated under the Securities Act (or any other regulation of
similar import). If the Agent solicits such offers from such investors, then the acceptance by
the Agent of the highest offer obtained from any of them shall be deemed to be a commercially
reasonable method of disposition of the Collateral.

          13.09. Rights and Remedies Cumulative. The rights provided for in this Agreement and
the other Loan Documents are cumulative and are not exclusive of any other rights, powers or
privileges or remedies provided by taw or in equity, or under any other instrument, document or
agreement. The Agent may exercise and enforce each right and remedy available to it either before
or concurrently with or after, and independently of, any exercise or enforcement of any other right
or remedy of the Agent or any other Secured Creditor against any Person or property. All such
rights and remedies shall be cumulative, and no one of them shall exclude or preclude any other.

          13.10. No Direct Enforcement by Secured Creditors. The Agent may freely exercise and
enforce any and all of its rights and remedies hereunder, for the benefit of the Secured.
Creditors, No Secured Creditor, other than the Agent, shall have any independent right to collect,
take possession of, foreclose against or otherwise enforce the Security Interests granted hereby.

     Section 14.
Standards for Exercising
Remedies.

          14.01. Commercially Reasonable Manner. To the extent that applicable law
imposes duties on the Agent to exercise remedies in a commercially reasonable manner, each

 

35

Grantor acknowledges and agrees that it is not commercially unreasonable for the Agent (a) to fail
to incur expenses reasonably deemed significant by the Agent to prepare Collateral for disposition
or otherwise to complete raw material or work in process into finished goods or other finished
products for disposition or to postpone any such disposition pending any such preparation or
processing; (b) to fail to obtain third party consents for access to Collateral to be disposed of,
or to obtain or, if not required by other law, to fail to obtain governmental or third party
consents for the collection or disposition of Collateral to be collected or disposed of; (c) to
fail to exercise collection remedies against account debtors or other persons obligated on
Collateral or to remove any Lien on or any adverse claims against Collateral; (d) to exercise
collection remedies against account debtors and other persons obligated on Collateral directly or
through the use of collection agencies and other collection specialists; (e) to advertise
dispositions of Collateral through publications or media of general circulation, whether or not the
Collateral is of a specialized nature; (f) to contact other persons, whether or not in the same
business as such Grantor, for expressions of interest in acquiring all or any portion of the
Collateral; (g) to hire one or more professional auctioneers to assist in the disposition of
Collateral, whether or not the collateral is of a specialized nature; (h) to dispose of Collateral
by utilizing Internet sites that provide for the auction of assets of the types included in the
Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of
assets; (i) to dispose of assets in wholesale rather than retail markets; (j) to disclaim
disposition warranties; (k) to purchase insurance or credit enhancements to insure the Agent
against risks of loss, collection or disposition of Collateral or to provide to the Agent a
guaranteed return from the collection or disposition of Collateral; or (1) to the extent deemed
appropriate by the Agent, to obtain the services of other brokers, investment bankers, consultants
and other professionals to assist the Agent in the collection or disposition of any of the
Collateral. Each Grantor acknowledges that the purpose of this Section 14 is to provide
non-exhaustive indications of what actions or omissions by the Agent would not be commercially
unreasonable in the Agent’s exercise of remedies against the Collateral and that other actions or
omissions by the Agent shall not be deemed commercially unreasonable solely on account of not being
indicated in this Section 14. Without limiting the foregoing, nothing contained in this
Section 14 shall be construed to grant any rights to any Grantor or to impose any duties on
the Agent that would not have been granted or imposed by this Agreement or by applicable law in the
absence of this Section 14.

          14.02. Standard of Care. The powers conferred on the Agent hereunder are solely to
protect its interest in the Collateral and shall not impose any duty upon it to exercise any such
powers. Except for the exercise of reasonable care in the custody of any Collateral in its
possession and the accounting for moneys actually received by it hereunder, the Agent shall have
no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against
prior parties or to protect, preserve, vote or exercise any rights pertaining to any Collateral,
The Agent shall be deemed to have exercised reasonable care in the custody and preservation of
Collateral in its possession if such Collateral is accorded treatment substantially equal to that
which the Agent accords its own property or if it selects, with reasonable care, a custodian to
hold such Collateral on its behalf.

     Section 15. Waivers by Grantor; Obligations Absolute.

          15.01. Specific Waivers. Each Grantor waives demand, notice, protest, notice of
acceptance of this Agreement, notice of loans made, credit extended, Collateral received or
delivered or other action taken in reliance hereon and all other demands and notices of any
description other than those required pursuant to the Credit Agreements or any other Loan
Documents to which such Grantor is a party.

 

36

          15.02. Obligations Absolute. All rights of the Agent hereunder, the Security Interest
and all obligations of the Grantors hereunder shall be absolute and unconditional irrespective of
(a) any lack of validity or enforceability of either Credit Agreement, any other Loan Document, any
agreement with respect to any of the Secured Obligations or any other agreement or instrument
relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in
any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or
any consent to any departure from either Credit Agreement, any other Loan Document, or any other
agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other
collateral, or any release or amendment or waiver of or consent under or departure from or any
acceptance of partial payment thereon and or settlement, compromise or adjustment of any Secured
Obligation or of any guarantee, securing or guaranteeing all or any of the Secured Obligations, or
(d) any other circumstance that might otherwise constitute a defense available to, or a discharge
of, any Grantor in respect of the Secured Obligations or this Agreement other than the prompt and
complete performance and payment in full of the Secured Obligations.

     Section 16. Marshalling. The Agent shall not be required to marshal any present or future
collateral security (including but not limited to this Agreement and the Collateral) for, or other
assurances of payment of, the Secured Obligations or any of them or to resort to such collateral
security or other assurances of payment in any particular order, and all of its rights hereunder
and in respect of such collateral security and other assurances of payment shall be cumulative and
in addition to all other rights, however existing or arising. To the extent that it lawfully may,
each Grantor hereby agrees that it shall not invoke any law relating to the marshalling of
collateral which might cause delay in or impede the enforcement of the Agent’s rights under this
Agreement or under any other instrument creating or evidencing any of the Secured Obligations or
under which any of the Secured Obligations is outstanding or by which any of the Secured
Obligations is secured or payment thereof is otherwise assured, and, to the extent that it
lawfully may, each Grantor hereby irrevocably waives the benefits of all such laws.

     Section 17.
Interest. Until paid, all amounts due and payable by each Grantor hereunder shall
be a debt secured by the Collateral and shall bear, whether before or after judgment, interest at
a rate per annum equal to the Default Rate, from the date of payment by the Agent to the date
reimbursed by such Grantor, and such interest shall be payable by such Grantor to the Agent on
demand.

     Section 18. Reinstatement. The obligations of each Grantor pursuant to this Agreement shall
continue to be effective or automatically be reinstated, as the case may be, if at any time
payment of any of the Secured Obligations is rescinded or otherwise must be restored or returned
by the Agent or any other Secured Creditor upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of such Grantor or any other obligor or otherwise, all as though
such payment had not been made.

     Section 19.
Miscellaneous.

          19.01.
Notices. All notices, requests and demands to or upon the Agent or any Grantor
hereunder shall be effected in the manner provided for in Section 10.2 of the Credit
Agreements.

          19.02. GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE A CONTRACT
MADE UNDER AND GOVERNED BY THE

 

37

INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY
WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW). ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY 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 AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH
COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH PARTY HERETO HEREBY EXPRESSLY AND IRREVOCABLY
SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET
FORTH ABOVE. EACH PARTY HERETO FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED
MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH PARTY
HERETO HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER 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.

          19.03.
WAIVER OF JURY TRIAL, ETC. EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE,
ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY
IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING
RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

          19.04. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.

          19.05.
Headings. The headings of each section of this Agreement are for convenience
only and shall not define or limit the provisions thereof.

          19.06.
No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

          19.07.
Severability. The illegality or unenforceability of any provision of this
Agreement or any instrument or agreement required hereunder shall not in any way affect or

 

38

impair the legality or enforceability of the remaining provisions of this Agreement or any
instrument or agreement required hereunder.

          19.08.
Survival of Agreement. All representations, warranties and agreements made by or
on behalf of any Grantor or any other Loan Party in this Agreement and in the other Loan Documents
shall survive the execution and delivery hereof or thereof and the making and repayment of the
Loan. In addition, notwithstanding anything herein or under applicable law to the contrary, the
provisions of this Agreement and the other Loan Documents relating to indemnification or payment of
costs and expenses, including, without limitation, the provisions of Sections 3.1, 3.2,
3.3, and 10.5 of the Credit Agreements, shall survive the payment in full of
the Loan, the termination of the Commitments and any termination of this Agreement or any of the
other Loan Documents.

          19.09.
Fees and Expenses; Indemnification.

                    (a) The Grantors, jointly and severally, agree to pay upon demand the
amount of any and all reasonable expenses, including the fees, disbursements and other charges of
counsel and of any experts or agents, which (i) any Secured Creditor may incur in connection with
(x) collecting against any Grantor under the guarantee contained in Section 2 or otherwise
enforcing or preserving any rights under this Agreement and the other Loan Documents, (y) the
exercise, enforcement or protection of any of the rights of such Secured Creditor hereunder or (z)
the failure of any Grantor to perform or observe any of the provisions hereof, and (ii) the Agent
may incur in connection with (x) the administration of this Agreement (including the customary fees
and charges of such Secured Creditor for any audits conducted by it or on its behalf with respect
to the accounts receivable or inventory) or (y) the custody or preservation of, or the sale of,
collection from or other realization upon any of the Collateral.

                    (b) Each Grantor agrees to pay, and to save the Secured Creditors
harmless from, any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to
the execution, delivery, enforcement, performance and administration of this Agreement to the
extent any Borrower would be required to do so pursuant to Section 10.5 of either Credit
Agreement.

                    (c) The agreements in this Section shall survive repayment of the
Obligations and all other amounts payable under the Credit Agreements and the other Loan Documents.

                    (d) Each Grantor agrees that the provisions of Section 3.1 of the
Credit
Agreements are hereby incorporated herein by reference, mutatis mutandis, and each Secured Creditor
shall be entitled to rely on each of them as if they were fully set forth herein.

          19.10.
Binding Effect; Several Agreement. This Agreement is binding upon each
Grantor and the Secured Creditors and their respective successors and permitted (in accordance with
Section10.8.1 of the Credit Agreements) assigns, and shall inure to the benefit of the
Grantors, the Secured Creditors and their respective successors and permitted (in accordance with
Section 10.8.1 of the Credit Agreements) assigns, except that no Grantor shall have any
right to assign or transfer its rights or obligations hereunder or any interest herein, except as
specifically permitted by the Credit Agreements, without the prior
written consent of the Agent.
(and any such assignment or transfer shall be void).

 

39

          19.11.
Waivers; Amendment.

                    (a) No failure or delay of the Agent in exercising any power or right
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such
right or power, or any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Secured Creditors hereunder and of the Secured Creditors under the
Credit Agreements and other Loan Documents are cumulative and are not exclusive of any rights or
remedies that they would otherwise have. No waiver of any provisions of this Agreement or consent
to any departure by any Grantor therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) below, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice to or demand on any Grantor in
any case shall entitle such or any other Grantor to any other or further notice or demand in
similar or other circumstances.

                    (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Agent and each affected
Grantor; provided, that any provision of this Agreement imposing obligations on any Grantor
may be waived by the Agent in a written instrument executed by the Agent in accordance with
Section 10.1 of the Credit Agreements.

          19.12.
Set-Off. Each Grantor hereby irrevocably authorizes each Secured Creditor
at any time and from time to time while an Event of Default shall have occurred and be continuing,
without notice to such Grantor or any other Grantor, any such notice being expressly waived by each
Grantor, to set-off and appropriate and apply any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured
or unmatured, at any time held or owing by such Secured Creditor to or for the credit or the
account of such Grantor, or any part thereof in such amounts as such Secured Creditor may elect,
against and on account of the obligations and liabilities of such Grantor to such Secured Creditor
hereunder and claims of every nature and description of such Secured Creditor against such Grantor,
in any currency, whether arising hereunder, under the Credit Agreements, any other Loan Document or
otherwise, as such Secured Creditor may elect, whether or not any Secured Creditor has made any
demand for payment and although such obligations, liabilities and claims may be contingent or
unmatured. Each Secured Creditor shall notify such Grantor promptly of any such set-off and the
application made by such Secured Creditor of the proceeds thereof, provided that the failure to
give such notice shall not affect the validity of such set-off and application. The rights of each
Secured Creditor under this Section are in addition to other rights and remedies (including,
without limitation, other rights of set-off) which such Secured
Creditor may have.

          19.13. Integration. This Agreement and the other Loan Documents constitute the
entire contract among the parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject matter hereof
(except for the Fee Letter).

          19.14.
Acknowledgments. Each Grantor hereby acknowledges that:

               (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party;

 

40

               (b) no Secured Creditor has any fiduciary relationship with or duty to
any Grantor arising out of or in connection with this Agreement or any of the other Loan Documents,
and the relationship between the Grantors, on the one hand, and the Secured Creditors, on the other
hand, in connection herewith or therewith is solely that of debtor and creditor; and

               (c) no joint venture is created hereby or by the other Loan Documents or
otherwise exists by virtue of the transactions contemplated hereby among the Secured Creditors or
among the Grantors and the Secured Creditors.

          19.15.
Additional Grantors and Guarantors. Each Subsidiary of each Borrower that is
required to become a party to this Agreement pursuant to Section.
6.8 of either Credit
Agreement shall become a Grantor and Guarantor for all purposes of this Agreement upon execution
and delivery by such Subsidiary of an Assumption Agreement in the
form of Annex 1 hereto.

          19.16. Releases.

                    (a) Notwithstanding anything to the contrary contained in either Credit
Agreement, herein or in any other Loan Document, upon request of either Borrower in connection with
any Disposition of Property permitted by the Loan Documents, the Agent shall (without notice to or
vote or consent of any other Secured Creditor) take such actions as shall be required to release
the Security Interest in any Collateral being Disposed of in such Disposition, to the extent
necessary to permit consummation of such Disposition in accordance with the Loan Documents,
provided that the applicable Borrower shall have delivered to the Agent, at least five (5) Business
Days prior to the date of the proposed release, a written request for release identifying the
relevant Collateral being Disposed of in such Disposition and the terms of such Disposition in
reasonable detail, including the date thereof, the price thereof and any estimated expenses in
connection therewith, together with a certification by such Borrower stating that such transaction
is in compliance with the applicable Credit Agreement and the other Loan Documents and that the
proceeds of such Disposition will be applied in accordance with the applicable Credit Agreement and
the other Loan Documents.

                    (b) At the request and sole expense of either Borrower, a Subsidiary
Guarantor shall be released from its obligations hereunder in the event that all the capital stock
or other equity interests of such Subsidiary Guarantor shall be Disposed of in a transaction
permitted by the applicable Credit Agreement; provided that such Borrower shall have delivered to
the Agent, at least five (5) Business Days prior to the date of the proposed release, a written
request for release identifying the relevant Subsidiary Guarantor and the terms of the Disposition
in reasonable detail, including the price thereof and any expenses in connection therewith,
together with a certification by such Borrower stating that such transaction is in compliance with
the applicable Credit Agreement and the other Loan Documents and that the Proceeds of such
Disposition will be applied in accordance therewith.

                    (c) At such time as the Borrower Obligations under the Earth LNG
Credit Agreement have been Fully Satisfied and provided that no Event of Default under the Durant
Credit Agreement has occurred and is continuing, the Agent shall (without notice to or vote or
consent of any other Secured Creditor) take such actions as shall be required to release the
Security Interest in any Collateral consisting of (i) any property or proceeds thereof then owned
or thereafter acquired by Durant and (ii) all membership or ownership interests in Durant and all

 

41

rights of Parent in, to and under Durant’s limited liability company operating agreement,
then owned or thereafter acquired by Parent.

          19.17.
Intercompany Debt.

               (a) Each Grantor hereby agrees that any intercompany Debt or other
intercompany payables or receivables directly or indirectly made by or owed to such Grantor by any
other Grantor (collectively, “Intercompany Debt”), of whatever nature at any time
outstanding shall be subordinate and subject in right of payment to the prior payment in full in
cash of the Borrower Obligations. Each Grantor hereby agrees that following a single written
notice to either Borrower, such Grantor will not, while any Event of Default is continuing, accept
any payment, including by offset, on any Intercompany Debt until all Secured Obligations have been
paid in full and the Commitments have been terminated, in each case, except with the prior written
consent of the Agent.

               (b) In the event that any payment on any Intercompany Debt shall be
received by a Grantor other than as permitted by this Section 19.17 before all Secured
Obligations have been paid in full, the Commitments have been terminated pursuant to each Credit
Agreement, such Grantor shall receive such payments and hold the same in trust for, segregate the
same from its own assets and shall immediately pay over to, the Agent for the benefit of the Agent
and Lenders all such sums to the extent necessary so that the Agent and the Lenders shall have been
paid in full, in cash, all Borrower Obligations owed or which may become owing.

               (c) Upon any payment or distribution of any assets of any Grantor of any kind or character,
whether in cash, property or securities by set-off, recoupment or otherwise, to creditors in any
liquidation or other winding-up of such Grantor or in the event of any case, proceeding or other
action described in Section 8.1.3 of either Credit Agreement, the Agent and Lenders shall
first be entitled to receive payment in full in cash, in accordance with the terms of the Borrower
Obligations and of this Agreement, of all amounts payable under or in respect of such Borrower
Obligations, before any payment or distribution is made on, or in respect of, any Intercompany
Debt, in any such case, proceeding or other action, any distribution or payment, to which the Agent
or any Lender would be entitled except for the provisions hereof shall be paid by such Grantor, or
by any receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such
payment or distribution directly to the Agent (for the benefit of the Agent and the Lenders) to the
extent necessary to pay all such Borrower Obligations in full in cash, after giving effect to any
concurrent payment or distribution to the Agent and Lenders (or to the Agent for the benefit of the
Agent and Lenders).

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

 

     IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and Collateral
Agreement to be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	GRANTORS:	 	 
	 
	 	 	 	 
	DURANT BIOFUELS, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Dennis G. Mc Laughlin, III	 	 
	Name:

	 	 

Dennis G. Mc Laughlin, III
	 	 
	Title:

	 	 

CEO, Earth Biofuels, Inc., its sole member and manager
	 	 
	 
	 	 	 	 
	EARTH BIOFUELS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Dennis G. Mc Laughlin, III	 	 
	Name:

	 	 

Dennis G. Mc Laughlin, III
 

	 	  
	Title:

	 	CEO	 	 
	 
	 	 	 	 
	EARTH LNG, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ John W. Morrison	 	 
	Name:

	 	 

John W. Morrison
	 	 
	Title:

	 	 

President
	 	 
	 
	 	 	 	 
	APPLIED LNG
TECHNOLOGIES USA, L.L.C.	 	 
	 
	 	 	 	 
	By:

	 	/s/ John W. Morrison	 	 
	Name:

	 	 

John W. Morrison
	 	 
	Title:

	 	 

President
	 	 
	 
	 	 	 	 
	FLEET STAR, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ John W. Morrison	 	 
	Name:

	 	 

John W. Morrison
	 	 
	Title:

	 	 

President
	 	 

Guarantee and Collateral Agreement Signature Pages

 

	 	 	 	 	 
	APOLLO LEASING, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ John W. Morrison	 	 
	Name:

	 	 

John W. Morrison
	 	 
	Title:

	 	 

President
	 	 
	 
	 	 	 	 
	ARIZONA LNG, L.L.C.	 	 
	 
	 	 	 	 
	By:

	 	/s/ John W. Morrison	 	 
	Name:

	 	 

John W. Morrison
	 	 
	Title:

	 	 

President
	 	 

Guarantee and Collateral Agreement Signature Pages

 

Accepted: as to Sections 9.02 and 9.03

FOURTH THIRD LLC,

as Agent

	 	 	 	 	 
	By:

	 	/s/ Seth B. Taube	 	 
	Name:

	 	 

Seth B. Taube
	 	 
	Title:

	 	 

Authorized Signatory
	 	 

Guarantee and Collateral Agreement Signature Pages

 

Schedule 7.07(a)

Principal Deposit Accounts

	 	 	 	 	 
	Grantor

	 	Account Bank
	 	 Account Number

Schedule 7.07(a)-1

 

Exhibit A to Amended and Restated Guarantee and Collateral Agreement

PERFECTION CERTIFICATE

A-1

 

 1

Exhibit B to Amended and Restated Guarantee and Collateral Agreement

SUPPLEMENT TO AMENDED AND RESTATED GUARANTEE AND COLLATERAL

AGREEMENT

(COPYRIGHTS)

WHEREAS, [              
        ], a [                
    ] corporation (herein referred to as “Grantor”), having an address at [      
          ],
has adopted, used and is using the copyrights listed on the annexed Schedule 1-A, which copyrights
are registered in the United States Copyright Office (the “Copyrights”);

WHEREAS, the Grantor has entered into an Amended and Restated Guarantee and Collateral Agreement
(said Guarantee and Collateral Agreement, as it may hereafter be amended or otherwise modified from
time to time being the “Security_Agreement”, the terms defined therein and not otherwise defined
herein being used herein as therein defined) in favor of the Secured Party; and

WHEREAS, pursuant to the Security Agreement, the Grantor has granted to Secured Party a security
interest in all right, title and interest of the Grantor in and to the Copyrights, and the
registrations and recordings thereof in the United States Copyright Office or any other country or
any political subdivision thereof, all whether now or hereafter owned or licensable by the Grantor
and all extensions or renewals thereof and all Copyright Licenses, and all proceeds of all of the
foregoing, including, without limitation, any claims by the Grantor against third parties for
infringement thereof (the “Collateral”), to secure the payment and performance of the Secured
Obligations.

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the
Grantor does hereby further confirm, and put on the public record, its grant to Secured Party of a
security interest in and mortgage on the Collateral to secure the prompt payment and performance
of the Secured Obligations.

The Grantor does hereby further acknowledge and affirm that the rights and remedies of Secured
Party with respect to the assignment of and grant of a security interest in the Collateral made
hereby are more fully set forth in the Security Agreement, the terms and provisions of which are
hereby incorporated herein by reference as if fully set forth herein.

Secured
Party’s address is [                    ], Attention:                     .

 

2

IN WITNESS WHEREOF, the Grantor has duly executed or caused this Agreement to be duly
executed as of [     ].

	 	 	 	 	 
	 	[                    ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

3

	 	 	 	 	 
	STATE OF

	 	 	)	 
	 

	 	 	)
	ss.:

	COUNTY OF 

	 	 	)	 

On this
                     day of           ,           , before me personally appeared                     , to
me known, who, being by me duly sworn, did depose and say that he/she resides at                                                             
and that he/she is                      of the Grantor; that he/she knows the seal of said corporation; that the seal affixed to said instrument
is such corporate seal; that it was affixed pursuant to authority of the Board of Directors of said corporation and that he/she signed his/her name thereto in his/her capacity as an authorized
officer of said corporation pursuant to such authority.

                                                            

                    Notary Public

 

4

Schedule 1-A to the SUPPLEMENT TO GUARANTEE

AND COLLATERAL AGREEMENT

(COPYRIGHTS)

	 	 	 	 	 
	Copyright

	 	Registration Date
	 	Registration No.
	 

	 	 
	 	 

 

 

 

Exhibit C to Amended and Restated Guarantee and Collateral Agreement

SUPPLEMENT TO AMENDED AND RESTATED GUARANTEE AND COLLATERAL

AGREEMENT

(PATENTS)

WHEREAS,
[                    
], a [     ] corporation
(herein referred to as “Grantor”), having
an address at [               ], owns the letters patent and/or applications for letters patent of
the United States of America more particularly described on Schedule 1 -A annexed hereto as part
hereof (the “Patents”);

WHEREAS, the Grantor has entered into an Amended and Restated Guarantee and Collateral Agreement
(said Guarantee and Collateral Agreement, as it may hereafter be amended or otherwise modified
from time to time being the “Security Agreement”, the terms defined therein and not otherwise
defined herein being used herein as therein defined) in favor of the Secured Party; and

WHEREAS, pursuant to the Security Agreement, the Grantor has granted to Secured Party a security
interest in all right, title and interest of Grantor in and to the Patents, together with all
registrations and recordings thereof, including, without limitation, applications, registrations
and recordings in the United States Patent and Trademark Office or in any similar office or agency
of the United States, any State thereof or any other country or any political subdivision thereof,
all whether now or hereafter owned or licensable by Grantor, and all reissues, divisions,
continuations, continuations-in-part, term restorations or extensions thereof, all Patent Licenses
and all proceeds of all of the foregoing, including, without limitation, any claims by Grantor
against third parties for infringement thereof for the full term of the Patents (the
“Collateral”), to secure the prompt payment and performance of the Secured Obligations.

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the
Grantor does hereby further confirm, and put on the public record, its grant to Secured Party of a
security interest in and mortgage on the Collateral to secure the prompt payment and performance
of the Secured Obligations.

The Grantor does hereby further acknowledge and affirm that the rights and remedies of Secured
Party with respect to the assignment of and grant of a security interest in the Collateral made
hereby are more fully set forth in the Security Agreement, the terms and provisions of which are
hereby incorporated herein by reference as if fully set forth herein.

Secured Party’s address is[                                                             ], Attention:  
                  .

C-1

 

2

IN WITNESS WHEREOF, the Grantor has duly executed or caused this Agreement to be duly executed as
of [      ].

	 	 	 	 	 
	 	[                    ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

3

	 	 	 	 	 
	STATE OF

	 	 	)	 
	 

	 	 	       
       )

	ss,:
	COUNTY OF

	 	 	)	 

On this      day of                     , before me personally appeared                , to me
known, who, being by me duly sworn, did depose and say that he/she
resides at                                          and that he/she is                      of the Grantor; that he/she knows the seal of said corporation; that the seal affixed to said instrument
is such corporate seal; that it was affixed pursuant to authority of the Board of Directors of said
corporation and that he/she signed his/her name thereto in his/her capacity as an authorized
officer of said corporation pursuant to such authority.

                                                            

                    Notary Public

 

4

Schedule 1-A to the SUPPLEMENT TO
GUARANTEE
 AND COLLATERAL AGREEMENT

(PATENTS)

	 	 	 	 	 
	 

	 	Date Filed
	 	Serial No. or 
	Title

	 	or Granted
	 	Patent No.
	 

	 	 
	 	 

 

 

 1

Exhibit D to Amended and Restated Guarantee and Collateral Agreement

SUPPLEMENT TO AMENDED AND RESTATED GUARANTEE AND COLLATERAL

AGREEMENT

(TRADEMARKS)

WHEREAS, [                     ], a [               ] corporation (herein referred to as “Grantor”), having
an address at [           ], (1) has adopted, used and is using, or (2) has intended to use and
filed an application indicating that intention, but has not yet filed an allegation of use under
Section l(c) or l(d) of the Trademark Act, or (3) has filed an application based on an intention to
use and has since used and has filed an allegation of use under Section l(c) or l(d) of the
Trademark Act, the trademarks, trade names, trade styles and service marks listed on the annexed
Schedule 1-A, which trademarks, trade names, trade styles and service marks are registered, or for
which applications for registration have been filed in the United States Patent and Trademark
Office (the “Trademarks”); and

WHEREAS, the Grantor has entered into an Amended and Restated Guarantee and Collateral Agreement
(said Guarantee and Collateral Agreement, as it may hereafter be amended or otherwise modified
from time to time being the “Security Agreement”, the terms defined therein and not
otherwise defined herein being used herein as therein defined) in favor of the Secured Party; and

WHEREAS, pursuant to the Security Agreement, the Grantor has granted to Secured Party a security
interest in all right, title and interest of the Grantor in and to the Trademarks, together with
all prints and labels on which said Trademarks have appeared or appear, designs and general
intangibles of like nature, now existing or hereafter adopted or acquired, and the goodwill of the
business symbolized by the Trademarks and the applications, registrations and recordings in the
United States Patent and Trademark Office or in any similar office or agency of the United States
of America, any State thereof, or any other country or any political subdivision thereof, all
whether now or hereafter owned or licensable by Grantor, and all reissues, extensions or renewals
thereof, all Trademark Licenses and all proceeds of all of the foregoing, including, without
limitation, any claims by Grantor against third parties for infringement thereof (the
“Collateral”), to secure the payment and performance of the Secured Obligations.

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the
Grantor does hereby further confirm, and put on the public record, its grant to Secured Party of a
security interest in and mortgage on the Collateral to secure the prompt payment and performance
of the Secured Obligations.

The Grantor does hereby further acknowledge and affirm that the rights and remedies of Secured
Party with respect to the grant of, security interest in and mortgage on the Collateral made
hereby are more fully set forth in the Security Agreement, the terms and provisions of which are
hereby incorporated herein by reference as if fully set forth herein.

Secured Party’s address is [                                                            ], Attention:  
                       .

 

2

IN WITNESS WHEREOF, the Grantor has duly executed or caused this Agreement to be duly executed as
of [          ].

	 	 	 	 	 
	 	[                              ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

3

	 	 	 	 	 
	STATE OF

	 	 	)	 
	 

	 	 	     )
	ss.:

	COUNTY OF

	 	 	)	 

On this
      day of
                    ,                     , before me personally appeared                     , to
me known, who, being by me duly sworn, did depose and say that he/she resides at                                                             
and that he/she is                      of the Grantor; that he/she knows the seal of said corporation; that the seal affixed to said instrument
is such corporate seal; that it was affixed pursuant to authority of the Board of Directors of said
corporation and that he/she signed his/her name thereto in his/her capacity as an authorized
officer of said corporation pursuant to such authority.

                                                            

                    Notary Public

 

4

Schedule 1-A to the SUPPLEMENT TO GUARANTEE

AND COLLATERAL AGREEMENT

(TRADEMARKS)

	 	 	 	 	 
	 

	 	Application or
	 	Application Serial No.
	Trademark

	 	Registration Date
	 	or Registration No.
	 

	 	 
	 	 

 

 

Exhibit E
to Amended and Restated Guarantee and Collateral Agreement

 FORM OF CONTROL AGREEMENT

     This CONTROL AGREEMENT (as amended, supplemented or otherwise modified from

time to time, this “Control Agreement”) dated as of                     , 200          , is made by and
among                     , a            corporation (the “Grantor”). Fourth Third LLC, as
Agent (in such capacity, the “Agent”) for the Secured Creditors (as defined in the Guarantee and
Collateral Agreement referred to below), and
                    , a                      (the “Depository Bank”).

     WHEREAS, the Depository Bank maintains for the Grantor a deposit account, Account
No.                      (the “Pledged Account”), in the name of the Grantor.

     WHEREAS, the Grantor has granted to the Agent for the benefit of the Secured Creditors a
security interest in the Pledged Account, all claims arising therefrom, all funds now or hereafter
therein, all amounts now or hereafter credited thereto and all Proceeds thereof (collectively, the
“Collateral”) pursuant to an Amended and Restated Guarantee and Collateral Agreement, dated as of
March 23, 2007 (as amended, supplemented, replaced or otherwise modified from time to time, the
“Guarantee and Collateral Agreement”), by the Grantor and the other persons party thereto as
grantors in favor of the Agent.

     WHEREAS, the following terms which are defined in Article 9 of the Uniform Commercial Code in
effect in the State of New York on the date hereof (the “UCC”) are used herein as so defined
(whether or not such terms are capitalized in the UCC): Bank, Bank’s Jurisdiction, Control,
Deposit Account and Proceeds.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

     SECTION
1. Notice of Security Interest. The Grantor, the Agent and the Depository
Bank are entering into this Control Agreement to perfect, and to confirm the priority of, the
Agent’s security interest in the Collateral. The Depository Bank acknowledges that this Control
Agreement constitutes written notification to the Depository Bank of the Agent’s security interest
in the Collateral. The Depository Bank agrees to promptly make all necessary entries or notations
in its books and records to reflect the Agent’s security interest in the Collateral. The
Depository Bank acknowledges that the Agent has control over the Pledged Account, all claims
arising therefrom, all funds now or hereafter therein all amounts now or hereafter credited
thereto and all Proceeds thereof.

     SECTION 2. Collateral; Pledged Account. (a) The Grantor agrees with the Agent and the
Depository Bank that the Grantor will direct that, all funds transferred by the Grantor to the
Depository Bank, deposited by the Grantor with the Depository Bank, or otherwise held by the
Depository Bank for the Grantor, be credited to the Pledged Account, another deposit account with
the Depository Bank subject to a Control Agreement or, in accordance with Section 7.07 of the
Guarantee and Collateral Agreement, a zero balance payroll or similar disbursement account.

     (b) The Depository Bank hereby represents and warrants to, and agrees with the Grantor and
the Agent, that (i) the Depository Bank is a Bank, (ii) the Pledged Account is and shall remain a
Deposit Account, (iii) the Bank’s Jurisdiction is, and during the term of this

 

 

Control Agreement shall remain, the State of New York and (iv) Schedule 1 contains a true and
complete statement of the Pledged Account and credit balance therein as of the date hereof. The
Depository Bank will not, so long as this Control Agreement is in effect, enter into any agreement
with any other person that provides Control over the Pledged Account to such person. The Depository
Bank will not advance credit to the Grantor secured by the Collateral (other than the fees and
charges referred to in Section 7).

     (c) The Agent hereby instructs the Depository Bank, and the Depository Bank hereby confirms
and agrees that, unless the Agent shall otherwise direct the Depository Bank in writing, all funds
transferred by the Grantor to the Depository Bank, deposited by the Grantor with the Depository
Bank, or otherwise held by the Depository Bank for the Grantor shall be credited to the Pledged
Account, another deposit account with the Depository Bank subject to a Control Agreement or a zero
balance payroll or similar disbursement account with the Depository Bank.

     SECTION 3, Control. The Depository Bank hereby agrees, upon written direction from the
Agent and without further consent from the Grantor, (a) to comply with all instructions originated
by the Agent directing disposition of the funds in the Pledged Account and all other instructions
regarding the Pledged Account originated by the Agent and to the extent directed by the Agent and
to pay over to the Agent all proceeds without any setoff or deduction, and (b) except as otherwise
directed by the Agent, not to comply with the instructions or directions of any kind originated by
the Grantor or any other person regarding the Pledged Account or disposition of the funds therein;
provided, however, that notwithstanding the foregoing provisions of this paragraph (b), the
Depository Bank may comply with instructions regarding disposition of funds in the Pledged Account
originated by the Grantor except during any period beginning at the time that the Depository Bank
has received from the Agent a notice, substantially in the form of Exhibit 1 hereto (a “Notice of
Default”) and ending at the time that the Depository Bank has received from the Agent a written
notice withdrawing such Notice of Default.

     SECTION 4. Other Agreements: Termination. The Depository Bank shall simultaneously
send to the Agent copies of all notices given and statements rendered pursuant to the Pledged
Account. The Depository Bank shall notify promptly the Agent and the Grantor if any other person
asserts any lien, encumbrance, claim (including any adverse claim) or security interest in or
against any of the Collateral. As long as the Guarantee and Collateral Agreement remains in effect,
neither the Grantor nor the Depository Bank shall terminate the Pledged Account without thirty (30)
days’ prior written notice to the other party and the Agent. In the event of any conflict between
the provisions of this Control Agreement and any other agreement governing the Pledged Account or
the Collateral, the provisions of this Control Agreement shall
control.

     SECTION 5. Protection of Depository Bank. The Depository Bank may rely and shall be
protected in acting upon any notice, instruction or other communication that it reasonably
believes to be genuine and authorized.

     SECTION 6. Termination. This Control Agreement shall terminate automatically upon
receipt by the Depository Bank of written notice executed by the Agent terminating this Agreement.

     SECTION 7. Waiver; Priority of Agent’s Interests. Other than with respect to its
fees and customary charges with respect to the Pledged Account, the Depository Bank hereby waives

 

 

its right to set off any obligations of the Grantor to the Depository Bank against any or all of
the Collateral and hereby agrees that any and all liens, encumbrances, claims or security interests
which the Depository Bank may have against the Collateral, either now or in the future in
connection with the Pledged Account (other than in respect of such fees and customary charges) are
and shall be subordinate and junior to the prior payment in full in immediately available funds of
all obligations of the Grantor now or hereafter existing under the Credit Agreements, the Guarantee
and Collateral Agreement, and all other documents related thereto, whether for principal, interest
(including, without limitation, interest as provided in the Credit Agreements, whether or not such
interest accrues after the filing of such petition for purposes of the federal Bankruptcy Code or
is an allowed claim in such proceeding), indemnities, fees, premiums, expenses or otherwise. Except
for the foregoing and claims and interests of the Agent and the Grantor in the Collateral and the
rights of the Depository Bank therein, the Depository Bank does not know of any claim to or
security interest or other interest in the Collateral.

     SECTION 8. Exculpation and Indemnity. The Depository Bank shall not be liable, except
for its own gross negligence or willful misconduct or its breach of the express terms of this
Control Agreement and, except with respect to claims based upon such gross negligence or willful
misconduct or any such breach that are successfully asserted against the Depository Bank, the
Grantor shall indemnify and hold harmless the Depository Bank (and any successor Depository Bank)
from and against any and all losses, liabilities, claims, actions, damages and expenses, including
reasonable attorneys’ fees and disbursements arising out of and in connection with this Control
Agreement.

     SECTION
9. Notices. All notices, requests and demands to or upon the respective
parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when delivered, or
three days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, to the Grantor’s and the Agent’s addresses as set forth in the Guarantee and
Collateral Agreement, and to the Depository Bank’s address as set forth below, or to such other
address as any party may give to the others in writing for such purpose:

    
              
             
         [Name  
             
                
         of    
             
             
          Depository  
              
    Bank]

            
            
            
    [Address      
            
            
          of   
             
             
           
Depository          
         Bank]

            
            
            
    Attention:      
            
            
          

            
            
            
    Telephone:      
            
  (          
            
            
      )      
            
           
           
          

            
             
            
    Telecopy: ( )     
            
            
           

     SECTION 10. Amendments in Writing. None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a written
instrument executed by the parties hereto.

     SECTION 11. Entire Agreement. This Control Agreement and the Guarantee and Collateral
Agreement constitute the entire agreement and supersede all other prior agreements and
understandings, both written and oral, among the parties with respect to the subject matter
hereof.

     SECTION 12. Execution in Counterparts. This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.

 

 

     SECTION 13. Successors and Assigns. This Control Agreement will be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, except that
the Grantor may not assign, transfer or delegate any of its rights or obligations under this
Control Agreement without the prior written consent of the Agent.

     SECTION
14. Governing Law and Jurisdiction. This Control Agreement has been delivered
to and accepted by the Agent and will be deemed to be made in the State of New York. THIS CONTROL
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK. Each of the parties hereto submits for itself and its property in any legal
action or proceeding relating to this Control Agreement, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the State
of New York, the courts of the United States of America for the Southern District of New York, and
appellate courts from any thereof.

     SECTION 15. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS CONTROL
AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

     IN WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 
	 	[NAME OF GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	FOURTH THIRD LLC, as
	 
	 
	 	
Agent

	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[NAME OF DEPOSITORY BANK]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Exhibit 1 to Control Agreement

[Date]

To:  [Name of Depository Bank

        Address of Depository Bank]

Attention:

Telecopy:

Dear                    ;

We refer to the Control Agreement, dated            (as heretofore amended, modified or
supplemented, the “Control Agreement”) by and among [Name of Depository Bank,] [name of Grantor]
and us. Except as otherwise provided herein, terms defined in the Control Agreement, when used
herein, shall have the respective meanings therein provided.

This constitutes a Notice of Default under and as such term is defined in the Control Agreement.
Until the Depository Bank receives a written notice from us withdrawing this Notice of Default,
the Depository Bank shall not comply with any instructions regarding disposition of funds in the
Pledged Account.

Very truly yours,

FOURTH THIRD LLC, 

as Agent

By:   
             
             
             
             
             
            

   Name:

   Title:

 

 

Exhibit F to Amended and Restated Guarantee and Collateral Agreement

FORM OF CONTROL AGREEMENT

     This CONTROL AGREEMENT (as amended, supplemented or otherwise modified from
time to time, this “Control Agreement”) dated as of                     , 200___ is made by and
among
                    , a                      corporation (the “Grantor”), Fourth Third LLC, as
Agent (in such capacity, the “Agent”) for the Secured Creditors (as defined in the Guarantee and
Collateral Agreement referred to below), and                     , a                      corporation (the
“Issuer”).

     WHEREAS, the Grantor has granted to the Agent for the benefit of the Secured Creditors a
security interest in the uncertificated securities of the Issuer owned by the Grantor from time to
time (collectively, the “Pledged Securities”), and all
additions thereto and substitutions and
Proceeds thereof (collectively, with the Pledged Securities, the “Collateral”) pursuant to an
Amended and Restated Guarantee and Collateral Agreement, dated as of March 23, 2007 (as amended,
supplemented, replaced or otherwise modified from time to time, the “Guarantee and
Collateral Agreement”), by the Grantor and the other persons party thereto as grantors in favor
of the Agent.

     WHEREAS, the following terms which are defined in Articles 8 and 9 of the Uniform Commercial
Code in effect in the State of New York on the date hereof (the “UCC”) are used herein as so
defined (whether or not such terms are capitalized in the UCC): Adverse Claim, Control,
Instruction, Issuer’s Jurisdiction, Proceeds and Uncertificated Security.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     SECTION 1. Notice of Security Interest. The Grantor, the Agent and the Issuer are entering
into this Control Agreement to perfect, and to confirm the priority of, the Agent’s security
interest in the Collateral. The Issuer acknowledges that this Control Agreement constitutes
written notification to the Issuer of the Agent’s security interest in the Collateral. The Issuer
agrees to promptly make all necessary entries or notations in its books and records to reflect the
Agent’s security interest in the Collateral and, upon request by the Agent, to register the Agent
as the registered owner of any or all of the Pledged Securities. The Issuer acknowledges that the
Agent has control over the Collateral.

     SECTION 2. Collateral. The Issuer hereby represents and warrants to, and agrees with
the Grantor and the Agent that (i) the terms of any limited liability company interests or
partnership interests included in the Collateral from time to time shall expressly provide that
they are securities governed by Article 8 of the Uniform Commercial Code in effect from time to
time in the State of [
                     ], (ii) the Pledged Securities are Uncertificated Securities, (iii) the
Issuer’s Jurisdiction is, and during the term of this Control Agreement shall remain, the State of
[                      ], (iv) Schedule 1 contains a true and complete description of the Pledged
Securities as of the date hereof and (v) except for the claims and interests of the Agent and the
Grantor in the Collateral, the Issuer does not know of any claim to or security interest or other
interest in the Collateral.

     SECTION
3. Control. The Issuer hereby agrees, upon written direction from the Agent
and without further consent from the Grantor, (a) to comply with instructions all and directions of

 

 

every kind originated by the Agent concerning the Collateral, to liquidate or otherwise dispose of
the Collateral as and to the extent directed by the Agent and to pay over to the Agent all Proceeds
of the Collateral without any setoff or deduction, and (b) except as otherwise directed by the
Agent, not to comply with the Instructions or directions of any kind originated by the Grantor or
any other person with respect to the Collateral.

     SECTION 4. Other Agreements. The Issuer shall notify promptly the Agent and the
Grantor if any other person asserts any lien, encumbrance, claim (including any adverse claim) or
security interest in or against any of the Collateral. In the event of any conflict between the
provisions of this Control Agreement and any other agreement governing the Pledged Securities or
the Collateral, the provisions of this Control Agreement shall control.

     SECTION 5. Protection of Issuer. The Issuer may rely and shall be protected in acting
upon any notice, instruction or other communication that it reasonably believes to be genuine and
authorized.

     SECTION 6. Termination. This Control Agreement shall terminate automatically upon
receipt by the Issuer of written notice executed by the Agent
terminating this Agreement.

     SECTION 7. Notices. All notices, requests and demands to or upon the respective
parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when delivered, or
three days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, to the Grantor’s and the Agent’s addresses as set forth in the Guarantee and
Collateral Agreement, and to the Issuer’s address as set forth below, or to such other address as
any party may give to the others in writing for such purpose:

     
                  
                
 [Name of Issuer]

              
              
            [Address of Issuer]

              
              
            Attention:  
                 
                 
               
         

              
              
            Telephone: ( )  
                 
                 
               
         

                
                 
        Telecopy: ( )      
                 
                 
                    

     SECTION 8. Amendments in Writing. None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a written
instrument executed by the parties hereto.

     SECTION
9. Entire Agreement. This Control Agreement and the Guarantee and Collateral
Agreement constitute the entire agreement and supersede all other prior agreements and
understandings, both written and oral, among the parties with respect to the subject matter
hereof.

     SECTION 10. Execution in Counterparts. This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.

     SECTION 11. Successors and Assigns. This Control Agreement will be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, except

 

 

that the Grantor may not assign, transfer or delegate any of its rights or obligations under this
Control Agreement without the prior written consent of the Agent.

     SECTION
12. Governing Law and Jurisdiction. This Control Agreement has been delivered
to and accepted by the Agent and will be deemed to be made in the
State of New York. THIS CONTROL
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK. Each of the parties hereto submits for itself and its property in any legal
action or proceeding relating to this Control Agreement, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the State
of New York, the courts of the United States of America for the Southern District of New York, and
appellate courts from any thereof.

     SECTION
13. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS CONTROL
AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

     IN WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 
	 	[NAME OF GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	FOURTH THIRD LLC, as

Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[NAME OF ISSUER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Exhibit G to Amended and Restated Guarantee and Collateral Agreement

FORM OF CONTROL AGREEMENT

     This
CONTROL AGREEMENT (as amended, supplemented or otherwise modified from
time to time, this “Control Agreement”) dated as of                     , 200  , is made by and among                     , a                      corporation (the
“Grantor”), Fourth Third LLC, as
Agent (in such capacity, the “Agent”) for the
Secured Creditors (as defined in the Guarantee and Collateral
Agreement referred to below), and
     , a       corporation (the
“Broker”).

     WHEREAS, the Broker maintains for the Grantor a securities account, Account No.                      (the
“Pledged Account”), in the name of the Grantor.

     WHEREAS, the Grantor has granted to the Agent for the benefit of the Secured Creditors a
security interest in the Pledged Account, the financial assets and any free credit balance carried
therein, all security entitlements with respect thereto, and all additions thereto and
substitutions and Proceeds thereof (collectively, the “Collateral”) pursuant to an Amended
and Restated Guarantee and Collateral Agreement, dated as March 23, 2007 (as amended,
supplemented, replaced or otherwise modified from time to time, the “Guarantee and Collateral
Agreement”), by the Grantor and the other persons party thereto as grantors in favor of the
Agent.

     WHEREAS, the following terms which are defined in Articles 8 and 9 of the Uniform Commercial
Code in effect in the State of New York on the date hereof (the “UCC”) are used herein as so
defined (whether or not such terms are capitalized in the UCC): Adverse Claim, Commodity Account,
Commodity Contract, Control, Entitlement Order, Financial Asset, Investment Property, Proceeds,
Securities Account, Securities Intermediary, Securities Intermediary’s Jurisdiction and Security
Entitlement.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

     SECTION 1. Notice of Security Interest. The Grantor, the Agent and the Broker are
entering into this Control Agreement to perfect, and to confirm the priority of, the Agent’s
security interest in the Collateral. The Broker acknowledges that this Control Agreement
constitutes written notification to the Broker of the Agent’s
security interest in the Collateral.
The Broker agrees to promptly make all necessary entries or notations in its books and records to
reflect the Agent’s security interest in the Collateral. The Broker acknowledges that the Agent
has control over the Pledged Account, all Financial Assets contained
therein from time to time,
and all Security Entitlements with respect thereto.

     SECTION
2. Collateral; Pledged Account. (a) The Grantor hereby agrees with the Agent
and the Broker that that Grantor shall direct that all Investment Property (other than any
Commodity Contract or Commodity Account) held by the Broker for the Grantor be credited to the
Pledged Account or another securities account subject to a Control Agreement maintained with the
Broker.

     (b) The Broker hereby represents and warrants to, and agrees with the Grantor and the Agent
that (i) the Broker is a Securities Intermediary with respect to the Grantor and the Pledged
Account is a Securities Account, (ii) all assets, property and items from time to time

 

 

carried in the Pledged Account, including, without limitation, any Investment Property, are, and
will continue to be, Financial Assets, (iii) the Securities Intermediary’s Jurisdiction is, and
during the term of this Control Agreement shall remain, the State of New York, (iv) Schedule 1
contains a true and complete statement of the Pledged Account and the Financial Assets carried
therein and any free credit balance therein as of the date hereof, (v) no Financial Asset included
in the Collateral is registered in the name of, payable to the order of, or specially indorsed to,
the Grantor, which has not been indorsed to the Broker or in blank, and (vi) the Pledged Account
is and shall remain a cash account, and the Broker will not extend, directly or indirectly, any
“purpose credit” (within the meaning of such term under Regulation T of the Board of Governors of
the Federal Reserve System of the United States) to the Grantor in
respect of the Pledged Account.
The Brokers will not, so long as this Control Agreement is in effect, enter into any agreement
with any other Person that provides Control over the Pledged Account
to such other Person.

     (c) The Agent hereby instructs the Broker, and the Broker hereby confirms and agrees that,
unless the Agent shall otherwise direct the Broker in writing, the Investment Property (other than
any Commodity Contract or Commodity Account) from time to time held by the Broker for the Grantor
shall be credited only to, and carried only in, the Pledged Account or another securities account
subject to a Control Agreement maintained with the Broker.

     SECTION 3.
Control. The Broker hereby agrees, upon written direction from the Agent
and without further consent from the Grantor, (a) to comply with all instructions, Entitlement
Orders and directions of every kind originated by the Agent concerning the Collateral, to liquidate
or otherwise dispose of the Collateral as and to the extent directed by the Agent and to pay over
to the Agent all proceeds without any setoff or deduction, and (b) except as otherwise directed by
the Agent, not to comply with the instructions, Entitlement Orders or directions of any kind
originated by the Grantor or any other person.

  
   SECTION 4. Other Agreements; Termination; Successor Brokers. The Broker shall
simultaneously send to the Agent copies of all notices given and statements rendered pursuant to
the Pledged Account. The Broker shall notify promptly the Agent and the Grantor if any other
person asserts any lien, encumbrance, claim (including any adverse claim) or security interest in
or against any of the Collateral. As long as the Guarantee and Collateral Agreement remains in
effect, neither the Grantor nor the Broker shall terminate the Pledged Account without thirty (30)
days’ prior written notice to the other party and the Agent. In the event of any conflict between
the provisions of this Control Agreement and any other agreement governing the Pledged Account or
the Collateral, the provisions of this Control Agreement shall control. In the event the Broker no
longer serves as Broker for the Collateral, the Pledged Account and the Financial Assets carried
therein shall be transferred to a successor broker or custodian satisfactory to the Agent,
provided, that prior to such transfer, such successor broker or custodian shall execute an
agreement that is substantially in the form of this Control Agreement or is otherwise in form and
substance satisfactory to the Agent.

     SECTION 5. Protection of Broker Indemnification. The Broker may rely and shall be
protected in acting upon any notice, instruction or other communication that it reasonably
believes to be genuine and authorized. The Broker shall not be liable, except for its own gross
negligence or willful misconduct or its breach of the express terms of this Control Agreement and,
except with respect to claims based upon such gross negligence or willful misconduct or any such
breach that are successfully asserted against the Broker, the Grantor shall indemnify and hold
harmless the Broker (and any successor Broker) from and against any and all losses,

 

 

liabilities, claims, actions, damages and expenses, including reasonable attorneys’ fees and
disbursements arising out of and in connection with this Control
Agreement.

     SECTION
6. Termination. This Control Agreement shall terminate automatically upon
receipt by the Broker of written notice executed by the Agent terminating this Agreement.

     SECTION
7. Waiver; Priority of Agent’s Interests. Other than with respect to its fees
and customary commissions with respect to the Pledged Account, the Broker hereby waives its right
to set off any obligations of the Grantor to the Broker against any or all of the Collateral and
hereby agrees that any and all liens, encumbrances, claims or security interests which the Broker
may have against the Collateral, either now or in the future in connection with the Pledged
Account, are and shall be subordinate and junior to the prior payment in full in immediately
available funds of all obligations of the Grantor now or hereafter existing under the Credit
Agreements, the Guarantee and Collateral Agreement, and all other documents related thereto,
whether for principal, interest (including, without limitation, interest as provided in the Credit
Agreements, whether or not such interest accrues after the filing of such petition for purposes of
the federal Bankruptcy Code or is an allowed claim in such proceeding), indemnities, fees,
premiums, expenses or otherwise. Except for the foregoing and claims and interests of the Agent and
the Grantor in the Collateral and the rights of the Broker therein, the Broker does not know of any
claim to or security interest or other interest in the Collateral.

     SECTION 8. Notices. All notices, requests and demands to or upon the respective
parties hereto to be effective shall be in writing (including by telecopy) and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when delivered, or
three days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, to the Grantor’s and the Agent’s addresses as set forth in the Guarantee and
Collateral Agreement, and to the Broker’s address as set forth below, or to such other address as
any party may give to the others in writing for such purpose:

    
                 
    
             
  [Name of Broker]

             
             
             
 [Address of Broker]

             
             
             
 Attention:          
              
              
           
        
   

           
           
           
       Telephone: ( )   
              
              
             
             
   

             
              
             
 Telecopy: ( )         
             
             
           
         
     

     SECTION 9. Amendments in Writing. None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a written
instrument executed by the parties hereto.

     SECTION 10. Entire Agreement. This Control Agreement and the Guarantee and Collateral
Agreement constitute the entire agreement and supersede all other prior agreements and
understandings, both written and oral, among the parties with respect to the subject matter
hereof.

     SECTION 11. Execution in Counterparts. This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.

 

 

     SECTION 12. Successors and Assigns. This Control Agreement will be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, except that
the Grantor may not assign, transfer or delegate any of its rights or obligations under this
Control Agreement without the prior written consent of the Agent.

     SECTION 13. Governing Law and Jurisdiction. This Control Agreement has been delivered
to and accepted by the Agent and will be deemed to be made in the State of New York. THIS CONTROL
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK. Each of the parties hereto submits for itself and its property in any legal
action or proceeding relating to this Control Agreement, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the State
of New York, the courts of the United States of America for the Southern District of New York, and
appellate courts from any thereof.

     SECTION 14. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS CONTROL
AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

     IN WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 
	 	[NAME OF GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	FOURTH THIRD LLC, as

Agent 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[NAME OF BROKER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

Exhibit H
to Amended and Restated Guarantee and Collateral Agreement

FORM OF CONTROL AGREEMENT

     This CONTROL AGREEMENT (as amended, supplemented or otherwise modified from time to time,
this “Control Agreement”) dated as of                     , 200    , is made by and among                     , a                      corporation (the
“Grantor”), Fourth Third LLC, as Agent (in such capacity, the “Agent”) for the Secured
Creditors (as defined in the Guarantee and Collateral Agreement referred to below), and                     , a                      corporation (the “Broker”).

     WHEREAS, the Broker maintains for the Grantor a commodity account, Account No.                                          (the “Pledged Account”), in the name of the Grantor.

     WHEREAS, the Grantor has granted to the Agent for the benefit of the Secured Creditors a
security interest in the Pledged Account, the commodity contracts and any free credit balance
carried therein, and all additions thereto and substitutions and Proceeds thereof (collectively,
the “Collateral”) pursuant to an Amended and Restated Guarantee and Collateral Agreement, dated as
of March 23, 2007 (as amended, supplemented, replaced or otherwise modified from time to time, the
“Guarantee and Collateral Agreement”), by the Grantor and the other persons party thereto as
grantors in favor of the Agent.

     WHEREAS, the following terms which are defined in Articles 8 and 9 of the Uniform Commercial
Code in effect in the State of New York on the date hereof (the “UCC”) are used herein as so
defined (whether or not such terms are capitalized in the UCC): Commodity Account, Commodity
Contract, Commodity Intermediary’s Jurisdiction, Control and Proceeds.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

     SECTION 1. Notice of Security Interest. The Grantor, the Agent and the Broker are
entering into this Control Agreement to perfect, and to confirm the priority of, the Agent’s
security interest in the Collateral. The Broker acknowledges that this Control Agreement
constitutes written notification to the Broker of the Agent’s
security interest in the Collateral.
The Broker agrees to promptly make all necessary entries or notations in its books and records to
reflect the Agent’s security interest in the Collateral. The Broker acknowledges that the Agent
has control over the Pledged Account and all Commodity Contracts and any free credit balance
carried therein from time to time.

     SECTION
2. Collateral; Pledged Account. (a) The Grantor hereby agrees with the Agent
and the Broker that the Grantor shall direct that all Commodity Contracts carried by the Broker on
its books for the Grantor be credited to the Pledged Account or another commodity account subject
to a Control Agreement maintained with the Broker.

     (b) The Broker hereby represents and warrants to, and agrees with the Grantor and the Agent
that (i) the Broker is a Commodity Intermediary with respect to the Grantor and the Pledged
Account is a Commodity Account, (ii) the Commodity Intermediary’s Jurisdiction is, and during the
term of this Control Agreement shall remain, the State of New York, (iii) Schedule 1 contains a true and complete statement of the Pledged Account and the Commodity Contracts and
any free credit balance carried therein as of the date hereof, and (iv) the Pledged Account is and

 

 

shall remain a cash account, and the Broker will not extend, directly or indirectly, any “purpose
credit” (within the meaning of such term under Regulation T of the Board of Governors of the
Federal Reserve System of the United States) to the Grantor in respect of the Pledged Account. The
Broker will not, so long as this Control Agreement is in effect, enter into any agreement with any
other person that provides Control over the Pledged Account to such
other person.

     (c) The Agent hereby instructs the Broker, and the Broker hereby confirms and agrees that,
unless the Agent shall otherwise direct the Broker in writing, all Commodity Contracts carried by
the Broker on its books for the Grantor shall be credited only to, and carried only in, the
Pledged Account or another commodity account subject to a Control Agreement maintained with the
Broker.

     SECTION 3. Control. The Broker hereby agrees, upon written direction from the Agent
and without further consent from the Grantor, (a) to apply any value distributed on account of the
Commodity Contracts carried in the Pledged Account as directed by the Agent, to liquidate or
otherwise dispose of the Collateral as and to the extent directed by the Agent and to pay over to
the Agent all proceeds and other value therefrom or otherwise distributed with respect thereto
without any setoff or deduction, and (b) except as otherwise directed by the Agent, not to apply
any value distributed on account of any Commodity Contract carried in the Pledged Account as
directed by the Grantor or any other person.

     SECTION
4. Other Agreements; Termination; Successor Brokers. The Broker shall
simultaneously send to the Agent copies of all notices given and statements rendered pursuant to
the Pledged Account. The Broker shall notify promptly the Agent and the Grantor if any other
person asserts any lien, encumbrance, claim or security interest in or against any of the
Collateral. As long as the Guarantee and Collateral Agreement remains in effect, neither the
Grantor nor the Broker shall terminate the Pledged Account without thirty (30) days’ prior written
notice to the other party and the Agent. In the event of any conflict between the provisions of
this Control Agreement and any other agreement governing the Pledged Account or the Collateral,
the provisions of this Control Agreement shall control. In the event the Broker no longer serves
as Broker for the Collateral, the Pledged Account, the Commodity Contracts and any free credit
balance carried therein shall be transferred to a successor broker, custodian or futures
commission merchant satisfactory to the Agent, provided, that prior to such transfer, such
successor broker, custodian or futures commission merchant shall execute an agreement that is
substantially in the form of this Control Agreement or is otherwise in form and substance
satisfactory to the Agent.

     SECTION 5. Protection of Broker Indemnification. The Broker may rely and shall be
protected in acting upon any notice, instruction or other communication that it reasonably
believes to be genuine and authorized. The Broker shall not be liable, except for its own gross
negligence or willful misconduct or its breach of the express terms of this Control Agreement and,
except with respect to claims based upon such gross negligence or willful misconduct or any such
breach that are successfully asserted against the Broker, the Grantor shall indemnify and hold
harmless the Broker (and any successor Broker) from and against any and all losses, liabilities,
claims, actions, damages and expenses, including reasonable attorneys’ fees and disbursements
arising out of and in connection with this Control Agreement.

     SECTION
6. Termination. This Control Agreement shall terminate automatically upon
receipt by the Broker of written notice executed by the Agent terminating this Agreement.

 

 

     SECTION
7. Waiver; Priority of Agent’s Interests. Other than with respect to its fees
and customary commissions with respect to the Pledged Account, the Broker hereby waives its right
to set off any obligations of the Grantor to the Broker against any or all of the Collateral and
hereby agrees that any and all liens, encumbrances, claims or security interests which the Broker
may have against the Collateral, either now or in the future in connection with the Pledged
Account, are and shall be subordinate and junior to the prior payment in full in immediately
available funds of all obligations of the Grantor now or hereafter existing under the Credit
Agreements, the Guarantee and Collateral Agreement, and all other documents related thereto,
whether for principal, interest (including, without limitation, interest as provided in the Credit
Agreements, whether or not such interest accrues after the filing of such petition for purposes of
the federal Bankruptcy Code or is an allowed claim in such proceeding), indemnities, fees,
premiums, expenses or otherwise. Except for the foregoing and claims and interests of the Agent and
the Grantor in the Collateral and the rights of the Broker therein, the Broker does not know of any
claim to or security interest or other interest in the Collateral.

     SECTION 8. Notices. All notices, requests and demands to or upon the respective
parties hereto to be effective shall be in writing (including by telecopy) and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when delivered, or
three days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, to the Grantor’s and the Agent’s addresses as set forth in the Guarantee and
Collateral Agreement, and to the Broker’s address as set forth below, or to such other address as
any party may give to the others in writing for such purpose:

    
                
                
    [Name of Broker]

                
                
        [Address of Broker]

                
                
        Attention:      
           
                
                
           

                
                
        Telephone: ( )     
                
                
                
       

                
                
        Telecopy: ( )     
                
                
                
       

     SECTION 9. Amendments in Writing. None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a written
instrument executed by the parties hereto.

     SECTION 10. Entire Agreement. This Control Agreement and the Guarantee and Collateral
Agreement constitute the entire agreement and supersede all other prior agreements and
understandings, both written and oral, among the parties with respect to the subject matter
hereof.

     SECTION 11. Execution in Counterparts. This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.

     SECTION 12. Successors and Assigns. This Control Agreement will be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, except
that the Grantor may not assign, transfer or delegate any of its rights or obligations under this
Control Agreement without the prior written consent of the Agent.

     SECTION 13. Governing Law and Jurisdiction. This Control Agreement has been delivered
to and accepted by the Agent and will be deemed to be made in the
State of New York.

 

 

THIS CONTROL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK. Each of the parties hereto submits for itself and its property in any
legal action or proceeding relating to this Control Agreement, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the
State of New York, the courts of the United States of America for the Southern District of New
York, and appellate courts from any thereof.

     SECTION 14. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS CONTROL
AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

     IN WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 
	 	[NAME OF GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	FOURTH THIRD LLC, as 

Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  
	 	 

	 	 	 	 	 
	 	[NAME OF BROKER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Exhibit I
to Amended and Restated Guarantee and Collateral Agreement

FORM OF CONTROL AGREEMENT

     This CONTROL AGREEMENT (as amended, supplemented or otherwise modified from
time to time, this “Control Agreement”) dated as of
                    , 200  , is made by and among
                    , a                      corporation (the “Beneficiary”), FOURTH THIRD LLC, as
Agent (in such capacity, the “Agent”) for the Secured Creditors (as defined in the Guarantee and
Collateral Agreement referred to below), and                     , a                      (the “Issuer”).

     WHEREAS,
the Issuer has issued Letter of Credit No.____ (together with all
accepted amendment or other modifications thereto, the “Credit”) in favor of the Beneficiary.

     WHEREAS, the Beneficiary has granted to the Agent for the benefit of the Secured Creditors a
security interest in and assignment of all proceeds of and all of the Beneficiary’s other
Letter-of-Credit Rights with respect to the Credit (the “Collateral”) pursuant to an Amended and
Restated Guarantee and Collateral Agreement, dated as of March 23, 2007 (as amended, supplemented,
replaced or otherwise modified from time to time, the “Guarantee and Collateral Agreement”), by the Beneficiary and the other persons named as “Grantors” therein in favor of
the Agent.

     WHEREAS, the following terms which are defined in Article 9 of the Uniform Commercial Code in
effect in the State of New York on the date hereof (the “UCC”) are used herein as so defined
(whether or not such terms are capitalized in the UCC): Letter-of-Credit Rights and Proceeds.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

     SECTION 1. Notice of Security Interest. The Beneficiary, the Agent and the Issuer are
entering into this Control Agreement to perfect, and to confirm the priority of, the Agent’s
security interest in the Collateral. The Issuer acknowledges that this Control Agreement
constitutes written notification to the Issuer of the Agent’s security interest in the Collateral.
The Issuer agrees, upon its receipt of the original Credit (which the Beneficiary agrees to
transmit forthwith to the Issuer), to promptly make a notation to reflect the Agent’s security
interest in the Collateral upon the original Credit and thereafter return the original Credit to
the Beneficiary. The Issuer also agrees to promptly make such other necessary entries or notations
in its books and records to reflect the Agent’s security interest in the Collateral. The Issuer
acknowledges that the Agent has control over the Collateral.

     SECTION 2. Control. For the purposes of Sections 5-114(c) and 9-107 of the UCC, the
Issuer hereby consents to the grant to the Agent of a security interest in the Letter-of-Credit
Rights under the Credit and to the assignment to the Agent of the Proceeds of the Credit. The
Issuer will pay all Proceeds of the Credit to the Agent in accordance with the Agent’s written
instructions. The Beneficiary agrees to immediately return to the Issuer any Proceeds of the
Credit inadvertently paid to the Beneficiary. The Issuer will not consent to any other assignment
of Proceeds of the Credit or to any other security interest in the Collateral.

     SECTION 3. Extent of Agreement. This Control Agreement (a) is not a transfer or
assignment of the Credit, (b) does not give the Agent any interest in the Credit or any documents

 

 

presented thereunder or any right to draw on the Credit or to consent or to refuse to consent to
amendments to the Credit or to the cancellation thereof, (c) does not affect whether the
Beneficiary can transfer its right to draw on the Credit and (d) does not affect the Beneficiary’s
right to draw on the Credit or the Beneficiary’s or the Issuer’s right to consent or to refuse to
consent to amendments to the Credit or to the cancellation thereof.

     SECTION
4. Representations and Warranties. The Beneficiary represents and warrants
that:

     (a) other than as set forth herein, the Beneficiary has not and will not, by transfer or
assignment of the Credit, by negotiation of drafts, by drawing drafts to a third party or
otherwise, assign the right to receive the whole or any portion of the Collateral or give any other
control rights, authorization or direction in respect of the Collateral to any other party;

     (b) the Beneficiary has not and will not, without, the prior written consent of the Issuer,
present to anyone but the Issuer any documents under the Credit;

     (c) the Beneficiary’s execution, delivery and performance of this Control Agreement (i) are
within its powers, (ii) have been duly authorized, (iii) do not contravene any charter provision,
by-law, resolution, contract or other undertaking binding on or affecting the Beneficiary or
any of its properties, (iv) do not violate any applicable domestic or foreign law, rule or
regulation and (v) do not require any notice, filing or other action to, with or by any
governmental authority;

     (d) this Control Agreement has been duly executed and delivered by the Beneficiary and is the
Beneficiary’s legal, valid and binding obligation; and

     (e) the transactions underlying the Credit (and any shipment of goods or provision of services
and any related financial arrangements) and this Control Agreement do not violate any applicable
United States or other law, rule or regulation.

     SECTION 5. Other Agreements; Termination; Successor Issuers. The Issuer shall
simultaneously send to the Agent copies of all notices given and statements rendered pursuant to
the Credit. The Issuer shall notify promptly the Agent and the Beneficiary if any other person
asserts any lien, encumbrance, claim (including any adverse claim) or security interest in or
against any of the Collateral. Until the Agent has notified the Issuer and Beneficiary that this
Agreement has been terminated in accordance with Section 7, neither the Beneficiary nor the Issuer
shall terminate the Credit before its stated maturity without thirty (30) days’ prior written
notice to the other party and the Agent. In the event of any conflict between the provisions of
this Control Agreement and any other agreement governing the Credit or the Collateral, the
provisions of this Control Agreement shall control. In the event the Issuer no longer serves as
Issuer for the Credit, the Credit shall be transferred to a successor Issuer satisfactory to the
Agent, provided, that prior to such transfer, such successor Issuer shall execute an agreement
that is substantially in the form of this Control Agreement or is otherwise in form and substance
satisfactory to the Agent.

     SECTION 6. Protection of Issuer; Indemnification. The Issuer may rely and shall be
protected in acting upon any notice, instruction or other communication that it reasonably
believes to be genuine and authorized. The Issuer shall not be liable, except for its own gross
negligence or willful misconduct or its breach of the express terms of this Control Agreement

 

 

and, except with respect to claims based upon such gross negligence or willful misconduct or any
such breach that are successfully asserted against the Issuer, the Beneficiary shall indemnify and
hold harmless the Issuer (and any successor Issuer) from and against any and all losses,
liabilities, claims, actions, damages and expenses, including reasonable attorneys’ fees and
disbursements arising out of and in connection with this Control Agreement.

     SECTION 7. Termination. This Control Agreement shall terminate automatically upon
receipt by the Issuer of written notice executed by the Agent terminating this Agreement.

     SECTION 8. Waiver. The Issuer hereby waives its right to set off any obligations of
the Beneficiary to the Issuer against any or all of the Collateral.

     SECTION 9. Notices. All notices, requests and demands to or upon the respective
parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when delivered, or three
days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, to the Beneficiary’s and the Agent’s addresses as set forth in the Guarantee and
Collateral Agreement, and to the Issuer’s address as set forth below, or to such other address as
any party may give to the others in writing for such purpose:

    
                
                
    [Name of Issuer]

                
                
        [Address of Issuer]

                
                
        Attention:      
                
                
                
      

                
                
        Telephone: ( )     
                
                
                
       

                
                
        Telecopy: ( )     
                
                
                
       

     SECTION 10. Amendments in Writing. None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a written
instrument executed by the parties hereto.

     SECTION 11. Entire Agreement. This Control Agreement and the Guarantee and Collateral
Agreement constitute the entire agreement and supersede all other prior agreements and
understandings, both written and oral, among the parties with respect to the subject matter
hereof.

     SECTION 12. Execution in Counterparts. This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.

     SECTION 13. Successors and Assigns. This Control Agreement will be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, except
that the Beneficiary may not assign, transfer or delegate any of its rights or obligations under
this Control Agreement without the prior written consent of the Agent.

     SECTION 14. Governing Law and Jurisdiction. This Control Agreement has been delivered
to and accepted by the Agent and will be deemed to be made in the State of New York. This Control
Agreement is made subject to the practice rules (e.g., UCP 500 or ISP 98) to which the Credit is
subject. THIS CONTROL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE

 

 

OF NEW YORK. Each of the parties hereto submits for itself and its property in any legal action or
proceeding relating to this Control Agreement, or for recognition and enforcement of any judgment
in respect thereof, to the non-exclusive general jurisdiction of the Courts of the State of New
York, the courts of the United States of America for the Southern District of New York, and
appellate courts from any thereof.

     SECTION 15. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS CONTROL
AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

     IN WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 
	 	[NAME OF BENEFICIARY], 

as Beneficiary

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	FOURTH THIRD LLC, 

as Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	[NAME OF ISSUER], 

as Issuer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Annex 1 to Amended and Restated Guarantee and Collateral Agreement

     ASSUMPTION AGREEMENT, dated as of                     , 200     , made by
                      ,
a _____corporation (the “Additional Grantor”), in favor
of Fourth Third LLC, as Agent (in such capacity, the “Agent”) for (i) the lenders (the “Lenders”)
party to the Credit Agreement referred to below and (ii) the other Secured Creditors (as defined
in the Guarantee and Collateral Agreement (as hereinafter defined)). All capitalized terms not
defined herein shall have the meaning ascribed to them in such Credit Agreement.

W I T N E S S E T H:

WHEREAS [                      ], (“Borrower”), [                      ], the Lenders
and the Agent have entered into a Credit Agreement, dated as of [                    ] (as amended,
supplemented, replaced or otherwise modified from time to time, the “Credit Agreement”);

     WHEREAS, in connection with the Credit Agreement, the Borrowers and certain of its Affiliates
(other than the Additional Grantor) have entered into the Amended and Restated
Guarantee and Collateral Agreement, dated as of [                     ] (as amended, supplemented
or otherwise modified from time to time, the “Guarantee and Collateral Agreement”) in favor of the
Agent for the benefit of the Secured Creditors;

     WHEREAS, the Credit Agreement requires the Additional Grantor to become a party to the
Guarantee and Collateral Agreement; and

     WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement
in order to become a party to the Guarantee and Collateral Agreement;

     NOW, THEREFORE, IT IS AGREED:

     1. Guarantee and Collateral Agreement. By executing and delivering
this Assumption Agreement, the Additional Grantor, as provided in Section 19.15 of the Guarantee
and Collateral Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a
Grantor and Guarantor thereunder with the same force and effect as if originally named therein as a
Grantor and Guarantor and, without limiting the generality of the foregoing, hereby expressly
assumes all obligations and liabilities of a Grantor and Guarantor thereunder. The information set
forth in Annex 1-A hereto is hereby added to the information set forth in the Perfection
Certificate or Perfection Supplement most recently delivered pursuant to the terms of the Guarantee
and Collateral Agreement. The Additional Grantor hereby represents and warrants that each of the
representations and warranties as to the Additional Grantor contained in Section 6 of the Guarantee
and Collateral Agreement is true and correct on and as the date hereof (after giving effect to this
Assumption Agreement) as if made on and as of such date.

     2. GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed
and delivered as of the date first above written.

[ADDITIONAL GRANTOR]

 

 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Execution

EARTH BIOFUELS, INC.

WARRANT PURCHASE AND

REGISTRATION RIGHTS AGREEMENT

     This Warrant Purchase and Registration Rights Agreement (the “Agreement”) is entered
into as of March 23, 2007, by and between Earth Biofuels, Inc., a Delaware corporation (the
“Company”) and Fourth Third LLC (the “Purchaser”).

     WHEREAS, the Company wishes to sell to the Purchaser a warrant (together with any replacements
or additional warrants issued in connection therewith, the “Warrant”) to purchase 6,774,908 shares
of the Company’s Warrant Stock (as defined in the Warrant), upon the terms and subject to the
conditions hereinafter set forth; and

     WHEREAS, in connection with the issuance and sale of the Warrant by the Company to the
Purchaser, the Company desires to provide the Purchaser certain rights with respect to
registration of the shares of Warrant Stock held by it and certain other rights with respect to
such shares as an inducement to the Purchaser to purchase the Warrant.

     NOW, THEREFORE, in consideration of the mutual agreements, covenants and conditions contained
herein, the Company and the Purchaser hereby agree as follows:

  1. DEFINED TERMS.

     Capitalized terms used but not defined herein have the meanings ascribed to them in the
Credit Agreement. As used in this Agreement, the following terms shall have the meanings set forth
below:

          “Commission” shall mean the Securities and Exchange Commission or any other federal agency at
the time administering the Securities Act.

          “Credit Agreement” shall mean the Credit Agreement, dated as of March 23, 2007, as amended,
restated, modified or supplemented from time to time, among the Company, Durant Biofuels, LLC, the
other Loan Parties named therein, the Lenders named therein and Fourth Third LLC, as Agent.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar
successor federal statute and the rules and regulations thereunder, all as the same shall be in
effect from time to time.

          “Holder” shall mean the Purchaser and any holder of Registrable Securities to whom the
registration rights conferred by this Agreement have been transferred in compliance with
Section 2.11 hereof.

 

 

          “Initiating Holders” shall mean any Holder or Holders of Registrable Securities who in the
aggregate hold(s) not less than a majority in interest of the Registrable Securities.

          “Other Stockholders” shall mean persons other than Holders who, by virtue of other agreements
with the Company, are entitled to include their securities in certain registrations hereunder.

          “Registrable Securities” shall mean (i) shares of Common Stock issued or issuable pursuant to
the exercise of the Warrant and (ii) any Common Stock issued as a dividend or other distribution
with respect to or in exchange for or in replacement of the shares referenced in (i) above;
provided, however, that Registrable Securities shall not include (1) any shares of
Common Stock which have previously been registered, (2) any shares of Common Stock which have been
sold to the public either pursuant to an effective registration statement or an exemption from
registration under the Securities Act (including Rule 144) or (3) any shares of Common Stock which
have been sold in a private transaction in which the transferor’s rights under this Agreement are
not assigned.

          The terms “register,” “registered” and “registration” shall refer to a registration effected
by preparing and filing a registration statement on Form S-l, Form S-3 or any other applicable
form(s) or any such successor form(s) in compliance with the Securities Act and applicable rules
and regulations thereunder, and the declaration or ordering of the effectiveness of such
registration statement.

          “Registration Expenses” shall mean all expenses incurred in effecting any registration
pursuant to this Agreement, including, without limitation, all registration, qualification, and
filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company,
blue sky fees and expenses, and expenses of any regular or special audits incident to or required
by any such registration; provided that Registration Expenses shall not include Selling
Expenses.

          “Rule 144” shall mean Rule 144 as promulgated by the Commission under the Securities Act, as
such Rule may be amended from time to time, or any similar successor rule that may be promulgated
by the Commission.

          “Rule 145” shall mean Rule 145 as promulgated by the Commission under the Securities Act, as
such Rule may be amended from time to time, or any similar successor rule that may be promulgated
by the Commission.

          “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar successor
federal statute and the rules and regulations thereunder, all as the same shall be in effect from
time to time.

          “Selling Expenses” shall mean all underwriting discounts, selling commissions, fees and
expenses of counsel for the Holders requesting registration pursuant to Section 2.1 or
Section 2.3 hereof and stock transfer taxes applicable to the sale of Registrable
Securities.

-2-

 

 

SECTION 2. WARRANT PURCHASE

     1.1. Purchase and Sale of Warrant.

     (a) In consideration of the making of the Loan pursuant to the Credit Agreement to Borrower,
and subject to the terms and conditions herein set forth, the Company agrees that it will issue and
sell to the Purchaser and the Purchaser agrees that it will acquire from the Company on the Closing
Date, the Warrant for a deemed purchase price, for the purposes of Treasury Regulation of §
1.1273-2(h), of $200,000.00 (which purchase price shall be deemed paid with a like amount of
proceeds of the Loan made by the Purchaser to Borrower). The Warrant is being issued
substantially in the form of Exhibit A hereto.

     (b) The Company and the Purchaser acknowledge that the purchase price set forth above for the
Warrant represents its fair market value, and agree to be bound by this allocation for all tax
purposes pursuant to Treasury Regulation § l.1273-2(h).

     1.2. Conditions.

     The obligation of the Purchaser to purchase the Warrant is subject to the satisfaction of
each of the conditions set forth in Section 4 of the Credit Agreement.

     1.3 Closing.

     The purchase and issuance of the Warrant under Section 1.1 shall take place at the
closing (the “Closing”) to be held at the offices of King & Spalding LLP in New York City on March
23, 2007 or at such other time and place as the parties may agree upon (the date and time of the
Closing, the “Closing Date”). On the Closing Date, the Company shall deliver the Warrant to the
Purchaser against delivery by the Purchaser to the Company of the purchase price therefor, such
purchase price to be paid by the Purchaser making the Loan to the Borrower and the Borrower using
a portion of such Loan proceeds equal to the purchase price to remit the purchase price to the
Company.

     1.4 Financial Accounting Positions; Tax Reporting.

     Each of the parties hereto agrees to take reporting and other positions with respect to the
Warrant that are consistent with the purchase price of the Warrant set forth herein for all
financial accounting purposes, unless otherwise required by applicable GAAP or Commission rules
(in which case the parties agree not to take positions inconsistent with the purchase price of the
Warrant set forth herein unless the Purchaser has consented thereto). Each of the parties to this
Agreement agrees to take reporting and other positions with respect to the Warrant that are
consistent with the purchase price of the Warrant set forth herein for all other purposes,
including, without limitation, for all federal, state and local tax purposes.

-3-

 

 

     1.5 Representations and Warranties of Purchaser

Purchaser hereby represents and warrants to the Company as follows:

(a) Authorization; No Contravention

The execution, delivery and performance by it of this Agreement and the consummation of the
transactions contemplated hereby, including, without limitation, the purchase of the Warrant: (a)
is within its power and authority and has been duly authorized by all necessary action; (b) does
not contravene the terms of its organizational documents or any amendment thereof; and (c) will not
violate, conflict with or result in any breach or contravention of any of its contractual
obligations, or any order or decree directly relating to it.

(b) Binding Effect

This Agreement has been duly executed and delivered by it and assuming that it is binding on and
enforceable against the Company, this Agreement constitutes the Purchaser’s legal, valid and
binding obligation, enforceable against it in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to enforceability.

(c) No Legal Bar

The execution, delivery and performance of this Agreement by it will not violate any requirement
of law applicable to it.

(d) Purchase for Own Account

The Warrant to be acquired by it pursuant to this Agreement and the shares of Warrant Stock
underlying the Warrant are being or will be acquired for its own account and with no present
intention of distributing or reselling such Warrant and shares of Warrant Stock or any part
thereof without prejudice, however, to its right at all times to sell or otherwise dispose of all
or any part of the Warrant and the shares of Warrant Stock underlying the Warrant under an
effective registration statement under the Securities Act, or under an exemption from such
registration available under the Securities Act, and subject, nevertheless, to the disposition of
its property being at all times within its control, subject to the terms and conditions of the
Loan Documents and the Company’s organizational documents. If the Purchaser should in the future
decide to dispose of the Warrant and/or the membership interests, the Purchaser understands and
agrees that it may do so only in compliance with the Securities Act and applicable state
securities laws, as then in effect, and subject to any applicable provisions of the Company’s
organizational documents (in the case of the Warrant and underlying shares of Warrant Stock) and
any Loan Documents to which any Purchaser is a party or is bound. The Purchaser agrees to the
imprinting of a legend on the Warrant (and the certificates evidencing the shares of Warrant Stock
underlying the Warrant) to the following effect: “THE SECURITY REPRESENTED BY THIS CERTIFICATE WAS
ORIGINALLY ISSUED ON MARCH 23, 2007, AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED.”

-4-

 

 

(e) Broker’s, Finder’s or Similar Fees

There are no brokerage commissions, finder’s fees or similar fees or commissions payable in
connection with the transactions contemplated hereby based on any agreement, arrangement or
understanding with it or any action taken by it.

(f) Governmental Authorization; Third Party Consent

No approval, consent, compliance, exemption, authorization, or other action by, or notice to, or
filing with, any Governmental Authority or any other Person in respect of any requirement of law,
and no lapse of a waiting period under a requirement of law, is necessary or required in connection
with the execution, delivery or performance by it or enforcement against it of this Agreement or
the transactions contemplated hereby.

(g) Accredited Investor

It is an “accredited investor” within the meaning of Rule 501 (a) promulgated under the Securities
Act.

(h) Anti-Money Laundering Representation

It is not aware of, has not been advised of, and has no reason to believe that any facts or
circumstances exist which would cause the Purchaser and/or through the Purchaser, the Company to
violate the federal Bank Secrecy Act, as amended, in connection with the Purchaser’s acquisition
of the Warrant from the Company.

1.6 Representations and Warranties of the Company

(a) Private Offering

No form of general solicitation or general advertising was used by the Company or its
representatives in connection with the offer or sale of the Warrant. Assuming the accuracy and
validity of representations of the Purchaser in Section 1.5 hereof, no registration of the
Warrant pursuant to the provisions of the Securities Act or the state securities or “blue sky”
laws will be required in connection with the offer, sale or issuance of the Warrant pursuant to
this Agreement, the Company covenants and agrees that neither it, nor anyone acting on its behalf,
will offer or sell the Warrant or any other security so as to require the registration of the
Warrant pursuant to the provisions of the Securities Act or any state securities or “blue sky”
laws, unless such Warrant is so registered.

(b) Broker’s, Finder’s or Similar Fees

There are no brokerage commissions, finder’s fees or similar fees or commissions payable in
connection with the transactions contemplated under this Agreement based on any agreement,
arrangement or understanding with the Company.

-5-

 

 

(c) Representations in Credit Agreement

The Company hereby repeats and restates, mutatis mutandis, as of the date hereof and as of the
Closing Date, each of the representations and warranties as to the Company set forth in the Credit
Agreement.

	 	2.	 	RESTRICTIONS ON TRANSFERABILITY OF SECURITIES; REGISTRATION RIGHTS.

	 	2.1	 	Requested Registration.

               (a) If the Company shall receive from the Initiating Holders a written request that the
Company effect any registration with respect to all or a part of the Registrable Securities, the
Company shall:

                    (i) promptly give written notice of the proposed registration to all
other Holders in accordance with Section 3.4 hereof; and

                    (ii) subject to the terms and conditions of this Section 2.1, as soon as practicable,
but in any event within one hundred twenty (120) days after receipt of a request for registration,
use its best efforts to effect such registration (including, without limitation, filing
post-effective amendments, appropriate qualifications under applicable blue sky or other state
securities laws, and appropriate compliance with the Securities Act) as would permit or facilitate
the sale and distribution of all or such portion of such Registrable Securities as are specified
in such request, together with all of the Registrable Securities of any Holder or Holders joining
in such request as are specified in a written request received by the Company within twenty (20)
days after such written notice from the Company is mailed or delivered in accordance with
Section 3.4 hereof.

          The Company shall not be obligated to effect, or to take any action to effect, any such
registration pursuant to this Section 2.1:

                    (A) in any particular jurisdiction in which the Company would be required to execute a
general consent to service of process in effecting such registration, qualification, or
compliance, unless the Company is already subject to service in such jurisdiction and except
as may be required by the Securities Act;

                    (B) if the Company has, pursuant to this Agreement, effected registration of all
Registrable Securities requested to be registered, which registration has been declared or
order effective and pursuant to which securities have been sold;

                    (C) during the period starting with the date sixty (60) days prior to the Company’s
good faith estimate of the date of filing of a Company-initiated registration;
provided that the Company is actively employing in good faith all reasonable efforts
to cause such registration statement to become effective; or

-6-

 

 

                    (D) if the Initiating Holders propose to dispose of shares of Registrable Securities
which may be immediately registered on Form S-3 pursuant to a request made under Section
2.3 hereof.

               (b) Subject to the foregoing clauses (A) through (E), the Company shall file a registration
statement covering the Registrable Securities so requested to be registered as soon as practicable
after receipt of the request of the Initiating Holders; provided, however, that if (i) in
the good faith judgment of the Board of Directors of the Company, such registration would be
materially detrimental to the Company and the Board of Directors of the Company concludes, as a
result, that it is essential to defer the filing of such registration statement at such time, and
(ii) the Company shall furnish to such Holders a certificate signed by the President of the Company
stating that in the good faith judgment of the Board of Directors of the Company, it would be
materially detrimental to the Company for such registration statement to be filed in the near
future and that it is, therefore, essential to defer the filing of such registration statement,
then the Company shall have the right to defer such filing, for a period of not more than one
hundred twenty (120) days after receipt of the request of the Initiating Holders, and, provided
further, that the Company shall not defer its obligation in this manner more than one (1) time
in any twelve (12) month period. If the Company elects to defer such filing pursuant to this
Section 2.1(b), the Company shall use its best efforts to file a registration statement
covering the Registrable Securities so requested to be registered within thirty (30) days of the
expiration of the one hundred twenty (120) day deferral period.

          The registration statement filed pursuant to the request of the Initiating Holders may,
subject to the provisions of Section 2.1(d) hereof, include other securities of the Company, with
respect to which registration rights have been granted and may include securities of the Company
being sold for the account of the Company.

               (c) If the requested registration is an underwritten offering, the right of any Holder to
registration pursuant to Section 2.1(a) shall be conditioned upon such Holder’s
participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders
and such Holder with respect to such participation and inclusion) to the extent provided herein.
A Holder may elect to include in such underwriting all or a part of the Registrable Securities such
Holder holds. If a person who has requested inclusion in such registration as provided above does
not agree to the terms of any such underwriting, such person shall be excluded therefrom by written
notice from the Company, the underwriter or the Initiating Holders. The securities so excluded
shall also be withdrawn from registration. Any Registrable Securities or other securities excluded
or withdrawn from such underwriting shall also be withdrawn from such registration. If Registrable
Securities or other securities are so withdrawn from the registration and if the number of shares
to be included in such registration was previously reduced as a result of marketing factors
pursuant to Section 2.1(d), then the Company shall offer to all Holders who have retained rights
to include securities in the registration the right to include additional securities in the
registration in an aggregate amount equal to the number of shares so withdrawn, with such shares to
be allocated among such Holders requesting additional inclusion in accordance with Section
2.1(d).

-7-

 

 

participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting to the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall (together with the Company and the Other Stockholders) enter into
an underwriting agreement in customary form with the representative of the underwriter or
underwriters selected by the Company.

               (c) Notwithstanding any other provision of this Section 2.2, if the
representative of the underwriters advises the Company in writing that marketing factors require a
limitation on the number of shares to be underwritten, the number of shares that may be included
shall be allocated pro rata among the Holders requesting registration in proportion to the
respective amounts of Registrable Securities and other securities that such Holders, Other
Stockholders and the Company had requested to be included in the registration. If any Holder or
Other Stockholder does not agree to the terms of any such underwriting, such Holder or Other
Stockholder shall be excluded therefrom by written notice from the Company or the underwriter. Any
Registrable Securities or other securities excluded or withdrawn from such underwriting shall be
withdrawn from such registration.

               (d) If shares are so withdrawn from the registration or if the number of Registrable
Securities to be included in such registration was previously reduced as a result of marketing
factors, the Company shall then offer to all persons who have retained the right to include
Registrable Securities in the registration the right to include additional securities in the
registration in an aggregate amount equal to the number of shares so withdrawn, with such shares to
be allocated among the persons requesting additional inclusion in accordance with Section
2.2(c) hereof.

               (e) The Company shall have the right to terminate or withdraw any registration
initiated by it under this Section 2.2 prior to the effectiveness of such registration whether or
not any Holder has elected to include Registrable Securities in such registration. The Registration
Expenses of such withdrawn registration shall be borne by the Company in accordance with
Section 2.4 hereof.

          2.3 Registration on Form S-3.

               (a) After its initial public offering, the Company shall use its best efforts to qualify for
registration on Form S-3 under the Securities Act or any other applicable or successor form or
forms. After the Company has qualified for the use of Form S-3, in addition to the rights
contained in the foregoing provisions of this Section 2, Holders of Registrable Securities
shall have the right to request registrations on Form S-3 (such requests shall be in writing and
shall state the number of shares of Registrable Securities to be disposed of and the intended
methods of disposition of such shares by such Holder or Holders); provided,
however, that the Company shall not be obligated to use its best efforts to effect any
such registration: (i) if the Holders, together with the holders of any other securities of the
Company entitled to inclusion in such registration, propose to sell Registrable Securities and
such other securities (if any) on Form S-3 at an aggregate price to the public of less than One
Million Dollars ($1,000,000); (ii) in the event that the Company shall furnish the certification
described in Section 2.1(b) (but subject to the limitations set forth therein); (iii) if
in any six (6) month period, the Company has already

-8-

 

 

effected one (1) registration in such period which has been declared or ordered effective; (iv) if
the Company has already effected a total of three (3) such registrations within one hundred eighty
(180) days of the effective date of any other Company registration statement (other than on Form
S-8 or Form S-3 with respect to employees’ stock); or (v) in any particular jurisdiction in which
the Company would be required to qualify to do business or to execute a general consent to service
of process in effecting such registration, qualification or compliance.

               (b) If a request complying with the requirements of Section 2.3(a) hereof is
delivered to the Company, the provisions of Sections 2.1 (a)(i) and (ii) and
Section 2.1(b) hereof shall apply to such registration. If the registration is for an
underwritten offering, the provisions of Sections 2.1(c) and 2.1(d) hereof shall in addition apply
to such registration.

          2.4 Expenses of Registration. All Registration Expenses incurred in connection with any
registration, qualification or compliance pursuant to Sections 2.1, .2.2 and 2.3
hereof shall be borne by the Company and all Selling Expenses relating to securities so registered
shall be borne by the Holders of such securities pro rata on the basis of the number of shares of
securities so registered on their behalf; provided, however, that if the registration
pursuant to Section 2.1 or 2.3 hereof is subsequently withdrawn at the request of
the Holders of a majority of the Registrable Securities to be registered, the Holders shall forfeit
their right to one demand registration pursuant to Section 2.1 with respect to a registration
statement on Form S-l or to demand registration pursuant to Section 2.3 with respect to a
demand registration on Form S-3, unless the Holders of a majority of the Registrable Securities
elect to reimburse the Company for the expenses incurred by the Company attributable to the
registration of such Registrable Securities, which expenses shall be paid within thirty (30) days
after receiving the Company’s statement of Registration Expenses following such withdrawal, in
which case the Holders of such Registrable Securities shall not be deemed to have exercised their
right to require the Company to register Registrable Securities pursuant to Section 2.1 or
2.3, as applicable; provided, further, however, that if at the time of such
withdrawal, the Holders have learned of a material change in the condition, business, or prospects
of the Company which was not known to the Holders at the time of their request and the Holders have
withdrawn the request with reasonable promptness following disclosure by the Company of such
material adverse change, then the Holders shall not be required to pay any of the Registration
Expenses and shall retain their rights pursuant to Section 2.1 and 2.3 hereof.

          2.5 Registration Procedures. In the case of each registration effected by the Company
pursuant to Section 2, the Company will keep each Holder advised in writing as to the
initiation of each registration and as to the completion thereof. At its expense, the Company will
as expeditiously as practicable use its best efforts to:

               (a) keep such registration effective for a period of one hundred eighty (180) days or until
the Holder or Holders have completed the distribution described in the registration statement
relating thereto, whichever first occurs; provided, however, that (i) such one hundred
eighty (180) day period shall be extended for a period of time equal to the period the Holder
refrains from selling any securities included in such registration at the request of an
underwriter of Common Stock (or other securities) of the Company; and (ii) in the case of any
registration of Registrable Securities on Form S-3 which are intended to be offered on a
continuous or delayed

-9-

 

basis, such one hundred eighty (180) day period shall be extended, if necessary, to keep the
registration statement effective until all such Registrable Securities are sold, provided
that Rule 415, or any successor rule under the Securities Act, permits an offering on a continuous
or delayed basis;

          (b) prepare and file with the Commission such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Securities Act with respect to the disposition of
all securities covered by such registration statement;

          (c) furnish such number of prospectuses and other documents incident thereto, including any
amendment of or supplement to the prospectus, as a Holder from time to time may reasonably
request;

          (d) notify each seller of Registrable Securities covered by such registration statement at
any time when a prospectus relating thereto is required to be delivered under the Securities Act
of the occurrence of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading or incomplete in the light of the circumstances then existing, and at the request of
any such seller, prepare and furnish to such seller a reasonable number of copies of a supplement
to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such shares, such prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading or incomplete in the light of the circumstances then existing;

          (e) use its best efforts to cause all such Registrable Securities registered pursuant
hereunder to be listed on each securities exchange or market on which similar securities issued by
the Company are then listed;

          (f) provide a transfer agent and registrar for all Registrable Securities registered pursuant
to such registration statement and a CUSIP number for all such Registrable Securities, in each
case not later than the effective date of such registration;

          (g) otherwise use its reasonable best efforts to comply with all applicable rules and
regulations of the Commission, and make publicly available to all of its security holders, as soon
as reasonably practicable, an earnings statement covering the period of at least twelve (12)
months, but not more than eighteen (18) months, beginning with the first month after the effective
date of the Registration Statement, which earnings statement shall conform materially with the
provisions of Section 11(a) of the Securities Act; and

          (h) if the registration is in connection with any underwritten offering pursuant to
Section 2.1 or Section 2.3 hereof, the Company will enter into an underwriting
agreement in form reasonably necessary to effect the offer and sale of Common Stock, provided that
such underwriting agreement contains customary underwriting provisions and provided further
that if

 -11- 

 

the underwriter so requests the underwriting agreement will contain customary contribution
provisions.

     2.6 Indemnification.

          (a) The Company will indemnify each Holder, each of such Holder’s officers, directors,
managers, members and partners and each person controlling such Holder within the meaning of
Section 15 of the Securities Act with respect to which registration, qualification, or compliance
has been effected pursuant to this Section 2, against all expenses, claims, losses, damages, and
liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on
any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus,
offering circular or other document (including any related registration statement, notification, or
the like) incident to any such registration, qualification, or compliance, or based on any omission
(or alleged omission) to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, or any violation by the Company of the Securities
Act or any rule or regulation promulgated thereunder applicable to the Company and relating to
action or inaction required of the Company in connection with any such registration, qualification,
or compliance, and will reimburse each such Holder, each of such Holder’s officers, directors,
managers, members and partners and each person controlling such Holder within the meaning of
Section 15 of the Securities Act, for any legal and any other expenses reasonably incurred in
connection with investigating and defending or settling any such claim, loss, damage, liability, or
action; provided, however, that the Company will not be liable in any such case to the
extent that any such claim, loss, damage, liability, or expense arises out of or is based on any
untrue statement or omission based upon written information furnished to the Company by such Holder
and stated to be specifically for use therein. It is agreed that the indemnity agreement contained
in this Section 2.6(a) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability, or action if such settlement is effected without the consent of the
Company (which consent has not been unreasonably withheld).

          (b) Each Holder will, if Registrable Securities held by such Holder are included in the
securities as to which such registration, qualification, or compliance is being effected,
indemnify the Company, each of its directors and officers, and each other such Holder and Other
Stockholder, and each of their officers, directors, managers, members, partners, and each person
controlling such Holder or Other Stockholder, against all expenses, claims, losses, damages and
liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on
any untrue statement of a material fact contained in any such registration statement, prospectus,
offering circular or other document, (including any related registration statement, notification,
or the like) incident to any such registration, qualification, or compliance, or based on any
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse the Company and such Holders, Other
Stockholders, directors, officers, managers, members, partners, or control persons for any legal
or any other expenses reasonably incurred in connection with investigating and defending or
settling any such claim, loss, damage, liability, or action, in each case to the extent but only
to the extent that such untrue statement or omission is made in (or omitted from) such
registration statement, prospectus, offering circular, or other document in reliance upon and in
conformity with written information furnished to the Company by such Holder and stated to be
specifically for use

 -12- 

 

therein; provided, however, that the obligations of such Holder hereunder shall
not apply to amounts paid in settlement of any such claims, losses, damages, or liabilities (or
actions in respect thereof) if such settlement is effected without the consent of such Holder
(which consent shall not be unreasonably withheld); provided, further, that in no event
shall any indemnity under this Section 2.6(b) exceed the net proceeds from the offering
received by such Holder less any underwriting discounts, selling commissions and stock transfer
taxes paid by such Holder in the offering.

          (c) Each party entitled to indemnification under this Section 2.6 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the Indemnifying Party to assume the defense of such claim or any
litigation resulting therefrom; provided, however, that counsel for the Indemnifying Party, who
shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved
by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified
Party may participate in such defense at such party’s expense; provided, further, that the
failure of any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Section 2, to the extent such failure is not
materially prejudicial. No Indemnifying Party shall, in the defense of any such claim or
litigation, except with the consent of each Indemnified Party, consent to entry of any judgment or
enter into any settlement that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such
claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the
claim in question as an Indemnifying Party may reasonably request in writing and as shall be
reasonably required in connection with the defense of such claim and litigation resulting there
from.

          (d) If the indemnification provided for in this Section 2.6 is held by a court of
competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss,
liability, claim, damage, or expense referred to therein, then the Indemnifying Party, in lieu of
indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by
such Indemnified Party as a result of such loss, liability, claim, damage, or expense in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one
hand and of the Indemnified Party on the other in connection with the statements or omissions
that resulted in such loss, liability, claim, damage, or expense as well as any other relevant
equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified
Party shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact relates to
information supplied by the Indemnifying Party or by the Indemnified Party and the parties’
relative intent, knowledge, access to information, and opportunity to correct or prevent such
statement or omission.

          (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control.

 -13- 

 

     2.7 Information by Holder. Each Holder of Registrable Securities shall furnish to the Company
such information regarding such Holder and the distribution proposed by such Holder as the Company
may reasonably request in writing and as shall be reasonably required in connection with any
registration, qualification, or compliance referred to in this Section 2.

     2.8 Limitations on Subsequent Registration Rights. From and after the date of this Agreement,
the Company shall not, without the prior written consent of the Holders of at least a majority of
the Registrable Securities enter into any agreement with any holder or prospective holder of any
securities of the Company giving such holder or prospective holder any registration rights senior
to the registration rights granted to the Holders hereunder.

     2.9 Rule 144 Reporting. With a view to making available the benefits of certain rules and
regulations of the Commission that may permit the sale of the Registrable Securities to the public
without registration, the Company agrees to use its best efforts to:

          (a) make and keep public information regarding the Company available as those terms are
understood and defined in Rule 144 under the Securities Act, at all times from and after ninety
(90) days following the effective date of the first registration statement under the Securities
Act filed by the Company for an offering of its securities to the general public;

          (b) file with the Commission in a timely manner all reports and other documents required of
the Company under the Securities Act and the Exchange Act at any time after it has become subject
to such reporting requirements; and

          (c) so long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon
written request as to the Company’s compliance with the reporting requirements of Rule 144 (at any
time from and after ninety (90) days following the effective date of the first registration
statement filed by the Company for an offering of its securities to the general public), and of the
Securities Act and the Exchange Act (at any time after it has become subject to such reporting
requirements), a copy of the most recent annual or quarterly report of the Company, and such other
reports and documents so filed as a Holder may reasonably request in availing itself of any rule or
regulation of the Commission allowing a Holder to sell any such securities without registration.

     2.10 Delay of Registration; Furnishing Information.

          (a) No Holder shall have any right to obtain or seek an injunction restraining or otherwise
delaying any such registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 2.

          (b) It shall be a condition precedent to the obligations of the Company to take any action
pursuant to Section 2.1, 2.2 or 2.3 that the Holders requesting registration shall furnish
to the Company such information regarding such Holders, the Registrable Securities held by such
Holders and the intended method of disposition of such securities as shall be required to effect
the registration of such Holders’ Registrable Securities.

 -14- 

 

     2.11 Transfer or Assignment of Registration Rights. The rights to cause the Company to
register securities granted to a Holder by the Company under this Section 2 may be transferred or
assigned by a Holder of such securities to any Person to whom an assignment has been or is
concurrently being made of an interest in the Loan in accordance with the Credit Agreement and
the Warrant in accordance with the Warrant, and so long as the number of Registrable Securities
purchasable pursuant to the portion of the Warrant so transferred represents not less than the
pro rata portion of the Loan held or being assigned to such Person.

     2.12 “Market Stand-Off” Agreement. If requested by the Company and an underwriter of Common
Stock (or other securities) of the Company, a Holder shall not sell or otherwise transfer or
dispose of any Common Stock (or other securities) of the Company held by such Holder (other than
those included in the registration) during the one hundred eighty (180) day period following the
effective date of a registration statement of the Company filed under the Securities Act with
respect to an underwritten public offering.

     The obligations of this Section 2.12 shall not apply to a registration relating
solely to employee benefit plans on Form S-3 or Form S-8 or similar forms that may be promulgated
in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4
or similar forms that may be promulgated in the future. The Company may impose stop-transfer
instructions with respect to the shares of Common Stock (or other securities) subject to the
foregoing restriction until the end of such one hundred eighty (180) day period.

     2.13 Allocation of Registration Opportunities. The Company shall not limit the number of
Registrable Securities to be included in a registration pursuant to this Agreement in order to
include shares held by stockholders with no registration rights or any other shares of stock
issued to employees, officers, directors, or consultants pursuant to a Company Stock Option Plan,
or with respect to registrations under Sections 2.1 or 2.3 hereof, in order to include in
such registration securities registered for the Company’s own account.

     2.14 Termination of Registration Rights. The rights of a Holder to request registration of
Registrable Securities pursuant to this Agreement shall terminate as to any Holder when all of
such Holder’s Registrable Securities cease to be “Registrable Securities” as defined in
Section 1 hereof.

     2.15 Directed Shares. In the event of a firm commitment underwritten public offering of the
Company’s Common Stock pursuant to which the underwriters permit the Company to direct the
purchasers of any public offering shares, the Holders will be offered the right to purchase, or to
assign the right to purchase, subject to compliance with Federal securities laws, a percentage of
such publicly offered shares equal to such Holder’s pro rata share of the Company’s Common Stock
outstanding immediately prior to such issue.

 -15- 

 

SECTION 3. MISCELLANEOUS.

     3.1 Governing Law. THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN
SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW).

     3.2 Successors and Assigns. Except as otherwise expressly provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, permitted assigns,
heirs, executors and administrators of the parties hereto.

     3.3 Entire Agreement; Amendment; Waiver. This Agreement (including the Exhibits hereto)
constitutes the full and entire understanding and agreement between the parties with regard to the
subject matter hereof and thereof. Neither this Agreement nor any term hereof may be amended,
waived, discharged or terminated, except by a written instrument signed by the Company and the
Holders of at least a majority of the Registrable Securities. Any such amendment, waiver,
discharge or termination shall be binding on all holders, but in no event shall the obligation of
any Holder hereunder be materially increased, except upon the written consent of such Holder.

     3.4 Notices. All notices and other communications required or permitted hereunder shall be in
writing and shall be mailed by United States certified mail, sent by facsimile or delivered
personally by hand or nationally recognized courier addressed (a) if to a Holder as indicated on
the signature page, or at such other address as such Holder or permitted assignee shall have
furnished to the Company in writing, or (b) if to the Company, at such address or facsimile number
as the Company shall have furnished to each Holder in writing. All such notices and other written
communications shall be effective on the date of certified mailing, facsimile transfer or
delivery.

     3.5 Delays or Omissions. No delay on the part of any Holder in the exercise of any right,
power or remedy shall operate as a waiver thereof, nor shall any single or partial exercise by any
of them of any right, power or remedy preclude other or further exercise thereof, or the exercise
of any other right, power or remedy. Any waiver, permit, consent or approval of any kind or
character on the part of any Holder of any breach or default under this Agreement or any waiver on
the part of any Holder of any provisions or conditions of this Agreement must be made in writing
and shall be effective only to the extent specifically set forth in such writing. All remedies,
either under this Agreement or by law or otherwise afforded to any Holder, shall be cumulative and
not alternative.

     3.6 Rights; Severability. Unless otherwise expressly provided herein, a Holder’s rights
hereunder are several rights, not rights jointly held with any of the other Holders. The illegality
or unenforceability of any provision of this Agreement or any instrument or agreement required
hereunder shall not in any way affect or impair the legality or enforceability of the remaining
provisions of this Agreement or any instrument or agreement required hereunder.

 -16- 

 

     3.7 Information Confidential. Each party acknowledges that the information received by them
pursuant hereto may be confidential and for its use only, and it will not use such confidential
information in violation of the Securities Act or Exchange Act or reproduce, disclose or
disseminate such information to any other person (other than its employees or agents having a need
to know the contents of such information, and its attorneys), except in connection with the
exercise of rights under this Agreement, unless the Company has made such information available to
the public generally or such party is required to disclose such information by a governmental
body.

     3.8 Consent
to Jurisdiction, Etc. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH THIS AGREEMENT SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY 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 HOLDER’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY BE FOUND. THE COMPANY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF
THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH OF EACH LOAN
PARTY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID,
OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. THE COMPANY HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER 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.

     3.9 Captions. Captions used in this Agreement are for convenience only and shall not affect
the construction of this Agreement.

     3.10 Counterparts. This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts and each counterpart shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same Agreement.
Receipt by telecopy of any executed signature page to this Agreement shall constitute effective
delivery of such signature page.

[signature pages to follow]

 -17- 

 

     IN WITNESS WHEREOF, the parties have executed this Warrant Purchase and Registration Rights
Agreement as of the day and year first above written

	 	 	 	 	 	 	 
	 	 	EARTH BIOFUELS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Dennis G. Mc Laughlin, III	 	 
	 

	 	Name:
	 	 

Dennis G. Mc Laughlin, III
	 	 
	 

	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices:	 	 

[Signature page to Earth BioFuels, Inc.

Warrant Purchase and Registration Rights Agreement - Durant Credit Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	FOURTH THIRD LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Seth B. Taube	 	 
	 

	 	Name:
	 	 

Seth B. Taube
	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 
	 
	 		 	 	 	 
	 	 	Address for notices:	 	 

[Signature page to Earth BioFuels, Inc.

Warrant Purchase and Registration Rights Agreement - Durant Credit Agreement]

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