Document:

exv4w3

 

EXHIBIT 4.3

 

STERLING CHEMICALS, INC.

Trustor

to

Stanley Keeton, an Individual

Trustee

for the benefit of

U. S. BANK NATIONAL ASSOCIATION, as Collateral Agent

Beneficiary

 

DEED OF TRUST, ASSIGNMENT OF LEASES

AND RENTS,

SECURITY AGREEMENT AND FIXTURE FILING

 

Dated March 29, 2007

This instrument affects certain real and personal property

located in Galveston County,

State of Texas

 

Recorded and return to:

White & Case LLP

1155 Avenue of the Americas

New York, New York 10036

Attention: Leila Rachlin, Esq.

(212) 819-8720

This instrument was prepared by the above-named attorney.

 

 

DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS,

SECURITY AGREEMENT AND FIXTURE FILING

     THIS DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING,
dated March 29, 2007 (this “Deed of Trust”), made by STERLING CHEMICALS, INC., a Delaware
corporation (the “Trustor”), having an address at 1200 Smith St., Suite 1900, Houston, Harris
County, Texas 77002-4312 to STANLEY KEETON, an individual, having an address at c/o Fidelity
National Title Insurance Company, 10010 San Pedro, San Antonio, Texas 78216, as trustee (the
“Trustee”) for the benefit of U. S. BANK NATIONAL ASSOCIATION, a national banking association,
having an address at 10 West Market Street, Suite 1150, Indianapolis, Indiana 46204, as collateral
agent (the “Collateral Agent”) for the benefit of the Secured Parties (as hereinafter defined) (the
“Beneficiary”).

W I T N E S S E T H            T H A T:

     WHEREAS, the Trustor is on the date of the delivery hereof the owner of fee title (or easement
or leasehold title if otherwise indicated on Exhibit A hereto) to the parcels of land described in
Exhibit A hereto (the “Land”) and of the Improvements (hereinafter defined);

     WHEREAS, pursuant to the terms, conditions and provisions of the Indenture, dated as of the
date hereof (as amended, restated, supplemented or otherwise modified from time to time, the
“Indenture”), among the Trustor, as issuer, the guarantors party thereto (the “Guarantors”) and U.
S. Bank National Association, as trustee (the “Indenture Trustee”) and Collateral Agent, the
Trustor issued 101/4% Senior Secured Notes due 2015 in the aggregate principal amount of ONE HUNDRED
FIFTY MILLION AND 00/100 DOLLARS ($150,000,000.00) (together with any
Exchange Notes and Additional Notes (as such terms are defined in the Indenture) issued pursuant to
such Indenture and any other 101/4% Senior Secured Notes due 2015 issued pursuant to such Indenture
in replacement thereof or substitution therefor, the “Notes”);

     WHEREAS, pursuant to the requirements of the Indenture, the Trustor is granting this Deed of
Trust to secure the payment and performance of the Secured Obligations (as hereinafter defined);
and

     WHEREAS, the Trustor has duly authorized the execution, delivery and performance of this Deed
of Trust.

GRANT:

     NOW, THEREFORE, for and in consideration of the premises, and of the mutual covenants herein
contained, and in order to secure the full, timely and proper payment and performance of and
compliance with each and every one of the Secured Obligations, the Trustor hereby irrevocably
grants, bargains, sells, mortgages, warrants, aliens, demises, releases, hypothecates, pledges,
assigns, transfers and conveys to the Trustee, IN TRUST, WITH POWER OF SALE, for the benefit of
Beneficiary and its successors and assigns, forever, all of the following (collectively, the “Trust
Premises”):

 

 

     (a) Real Estate. All of Trustor’s right, title and interest in, and to all of
the Land and all additional lands and estates therein now owned by the Trustor for use or
development with the Land or any portion thereof, together with all and singular the
tenements, rights, easements, hereditaments, rights of way, privileges, liberties,
appendages and appurtenances now belonging or in any way pertaining to the Land and such
additional lands and estates therein (including, without limitation, all rights relating to
storm and sanitary sewer, water, gas, electric, railway and telephone services); all
development rights, air rights, riparian rights, water, water rights, water stock, all
rights in, to and with respect to any and all oil, gas, coal, minerals and other substances
of any kind or character underlying or relating to the Land and such additional lands and
estates therein and any interest therein; all estate, claim, demand, rights, title or
interest of the Trustor in and to any street, road, highway or alley, vacated or other,
adjoining the Land or any part thereof and such additional lands and estates therein; all
strips and gores belonging, adjacent or pertaining to the Land or such additional lands and
estates (herein collectively referred to as the “Real Estate”);

     (b) Improvements. All of Trustor’s right, title and interest in and to all
buildings, structures and other improvements now existing on the Land and any additions and
alterations thereto or replacements thereof, now or hereafter built, constructed or located
upon the Real Estate; and, to the extent that any of the following items of property
constitutes fixtures under applicable laws, all furnishings, fixtures, fittings, appliances,
apparatus, equipment, machinery, building and construction materials, and other articles of
every kind and nature whatsoever and all replacements thereof, now or hereafter affixed or
attached to, placed upon or used in any way in connection with the Real Estate and the
complete and comfortable use, enjoyment, occupation, operation, development and/or
maintenance of the Real Estate or such buildings, structures, and other improvements,
including, but not limited to, partitions, furnaces, boilers, oil burners, radiators and
piping, plumbing and bathroom fixtures, refrigeration, heating, ventilating, air
conditioning and sprinkler systems, other fire prevention and extinguishing apparatus and
materials, vacuum cleaning systems, gas and electric fixtures, incinerators, compactors,
elevators, engines, motors, generators and all other articles of property which are
considered fixtures under applicable law (such buildings, structures and other improvements
and such other property constituting fixtures under applicable law are herein collectively
referred to as the “Improvements”; the Real Estate and the Improvements are herein
collectively referred to as the “Property”);

     (c) Goods. All of Trustor’s right, title and interests in and to all building
materials, construction materials, appliances (including, without limitation, stoves,
ranges, ovens, disposals, refrigerators, water fountains and coolers, fans, heaters,
dishwashers, clothes washers and dryers, water heaters, hood and fan combinations, kitchen
equipment, laundry equipment, kitchen cabinets and other similar equipment), stocks,
supplies, blinds, window shades, drapes, carpets, floor coverings, manufacturing equipment
and machinery, office equipment, growing plants and shrubberies, control devices, equipment
(including window cleaning, building cleaning, swimming pool, recreational, monitoring,
garbage, pest control and other equipment), motor vehicles, tools, furnishings, furniture,
lighting, non-structural additions to the Real Estate and

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Improvements and all other tangible property of any kind or character, together with
all replacements thereof, now or hereafter located on or in or used or useful in connection
with the complete and comfortable use, enjoyment, occupation, operation, development and/or
maintenance of the Property, regardless of whether or not located on or in the Property or
located elsewhere for purposes of storage, fabrication or otherwise but excluding for the
purposes of this Deed of Trust any and all “inventory” as defined in the State Uniform
Commercial Code and any other “goods” as defined in the State Uniform Commercial Code which
are not necessary for the operation of the plants located on the Land (herein collectively
referred to as the “Goods”);

     (d) Leases. All rights of the Trustor in, to and under all leases, licenses,
occupancy agreements, concessions and other arrangements, oral or written, now existing or
replacements thereof hereafter entered into, whereby any Person agrees to pay money or any
other consideration for the use, possession or occupancy of, or any estate in, the Property
or any portion thereof or interest therein (herein collectively referred to as the
“Leases”), and the right, subject to applicable law, upon the occurrence of any Event of
Default hereunder, to receive and collect the Rents (as hereinafter defined) paid or payable
thereunder;

     (e) Plans. All rights of the Trustor in and to all plans and specifications,
designs, drawings and other information, materials, and matters heretofore or hereafter
prepared relating to the Improvements or any construction on the Real Estate (herein
collectively referred to as, the “Plans”);

     (f) Permits. All rights of the Trustor, to the extent assignable, in, to and
under all permits, franchises, licenses, approvals and other authorizations respecting the
use, occupation and operation of the Property and every part thereof and respecting any
business or other activity conducted on or from the Property, and any product or proceed
thereof or therefrom, including, without limitation, all building permits, certificates of
occupancy and other licenses, permits and approvals issued by governmental authorities
having jurisdiction (collectively, the “Permits”);

     (g) Contracts. All right, title and interest of the Trustor, to the extent
assignable, in and to all certificates, warranties, appraisals, engineering, environmental,
soils, insurance and other reports and studies, books, records, correspondence, files and
advertising materials, now or hereafter obtained or entered into, as the case may be,
pertaining to the construction, use, occupancy, possession, operation, management, leasing,
maintenance and/or ownership of the Property (but only to the extent necessary or
appropriate for the continued operation of the plants located on the Land and excluding for
the purposes of this Deed of Trust in any event any such items constituting or in any way
relating to “accounts” or “inventory” as those terms are defined in the State Uniform
Commercial Code) and all right, title and interest of the Trustor therein (collectively, the
“Contracts”);

     (h) Leases of Furniture, Furnishings and Equipment. All right, title and
interest of the Trustor as lessee in, to and under any leases of furniture, furnishings,

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equipment and any other Goods now or hereafter installed in or at any time used in
connection with the Property;

     (i) Rents. All rents, issues, profits, royalties, avails, income and other
benefits other than accounts receivable derived or owned, directly or indirectly, by the
Trustor from the Property, including, without limitation, all rents and other consideration
payable by tenants, claims against guarantors, and any cash or other securities deposited to
secure performance by tenants, under the Leases (herein collectively referred to as the
“Rents”); and

     (j) Proceeds. All proceeds of the conversion, voluntary or involuntary of any
of the foregoing Trust Premises into cash or liquidated claims, including, without
limitation, proceeds of insurance and condemnation awards (herein, collectively referred to
as the “Proceeds”);

     PROVIDED, HOWEVER, the Trust Premises shall not include any rights arising under any
contracts, instruments, licenses or other documents as to which the grant of a lien and/or security
interest would constitute a violation of a valid and enforceable restriction in favor of a third
party on such grant, unless and until any required consents shall have been obtained;

     AND, without limiting any of the other provisions of this Deed of Trust, the Trustor expressly
grants to the Beneficiary, as secured party, a security interest in all of those portions of the
Trust Premises which are or may be subject to the State Uniform Commercial Code provisions
applicable to secured transactions subject only to the Permitted Encumbrances;

     TO HAVE AND TO HOLD the Trust Premises unto the Trustee and the successors, successors in
trust and assigns of the Trustee for the benefit of the Beneficiary, its successors and assigns,
forever, subject only to the Permitted Encumbrances;

     FURTHER to secure the full, timely and proper payment and performance of the Secured
Obligations, the Trustor hereby covenants and agrees with and warrants to the Trustee and the
Beneficiary as follows:

ARTICLE I

COVENANTS AND AGREEMENTS OF THE TRUSTOR

          SECTION 1.1 Payment of Secured Obligations. (i) The Trustor agrees that:

          (a) it will duly and punctually pay and perform or cause to be paid and performed each of the
Secured Obligations at the time and in accordance with the terms of the Indenture and the Notes;
and

          (b) when and as due and payable from time to time in accordance with the terms hereof or of
any other Collateral Document, pay and perform, or cause to be paid and performed, all other
Secured Obligations.

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          SECTION 1.2 Title to Trust Premises, etc. The Trustor represents and warrants to and
covenants with the Trustee and the Beneficiary that:

          (a) except as otherwise permitted by the terms of the Indenture, as of the date hereof and at
all times hereafter while this Deed of Trust is outstanding, the Trustor (i) is and shall be the
absolute owner of the legal and beneficial title to the applicable interest in the Property and to
all other property included in the Trust Premises, and (2) has and shall have good and indefeasible
title in fee simple absolute, or good and sufficient easement or leasehold title, as currently
represented in the granting clause as of the date hereof, to the Property; provided, however, that
the portion of the Land described on Part III of Exhibit A is hereby excluded from these covenants,
subject in each case only to this Deed of Trust, the Permitted Liens (as defined in the Indenture)
and the exceptions to title set forth in Exhibit B to the title insurance policy insuring the lien
of this Deed of Trust and approved by Collateral Agent in its reasonable discretion (collectively,
the “Permitted Encumbrances”);

          (b) the Trustor has good and lawful right, power and authority to execute this Deed of Trust
and to convey, transfer, assign, mortgage and grant a security interest in the Trust Premises, all
as provided herein;

          (c) this Deed of Trust has been duly executed, acknowledged and delivered on behalf of the
Trustor, all consents and other actions required to be taken by the officers, directors,
shareholders and partners, as the case may be, of the Trustor have been duly and fully given and
performed, all governmental and court approvals required have been obtained by Trustor, and this
Deed of Trust constitutes the legal, valid and binding obligation of the Trustor, enforceable
against the Trustor in accordance with its terms; and

          (d) the Trustor, at its expense, will warrant and defend the Trustee and the Beneficiary and
any purchaser under the power of sale herein or at any foreclosure sale such title to the Trust
Premises and the first deed of trust lien and first perfected security interest of this Deed of
Trust thereon and therein against all claims and demands and will maintain, preserve and protect
such lien and security interest and will keep this Deed of Trust a valid, direct, first deed of
trust lien of record on the Property and a first perfected security interest in the Trust Premises
other than the Property, subject only to the Permitted Encumbrances.

          SECTION 1.3 Title Insurance.

          SECTION 1.3.1 Title Insurance Policy. The Trustor shall use its commercially
reasonable best efforts to cause to be delivered to the Beneficiary no later than 30 days after the
date hereof and at the Trustor’s sole cost and expense, a lender’s title insurance policy issued by
a nationally recognized title insurance company in an insured amount reasonably satisfactory to the
Beneficiary, insuring this Deed of Trust as a valid and enforceable first priority deed of trust
lien on the Land described on Exhibit A, free and clear of all defects and encumbrances except
Permitted Encumbrances, together with such endorsements, affirmative coverage, coinsurance and
reinsurance, as reasonably requested by the Beneficiary.

          SECTION 1.3.2 Title Insurance Proceeds. All proceeds received by and payable to the
Beneficiary for any loss under the loan policy or policies of title insurance delivered to the

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Beneficiary pursuant to Section 1.3.1, or under any policy or policies of title insurance
delivered to the Beneficiary in substitution therefor or replacement thereof, shall be the property
of the Beneficiary and shall be applied by the Beneficiary in accordance with the provisions of
Section 3.11.

          SECTION 1.4 Recordation. The Trustor, at its expense, will at all times cause this
Deed of Trust and any instruments amendatory hereof or supplemental hereto and any instruments of
assignment hereof or thereof (and any appropriate financing statements or other instruments and
continuations thereof), and each other instrument delivered in connection with the Indenture, the
Notes or any Collateral Documents and intended thereunder to be recorded, registered and filed, to
be kept recorded, registered and filed, in such manner and in such places, and will pay all such
recording, registration, filing fees, taxes and other charges, and will comply with all such
statutes and regulations as may be required by law in order to establish, preserve, perfect and
protect the lien and security interest of this Deed of Trust as a valid, direct, first deed of
trust lien on the Property and first perfected security interest in the Trust Premises other than
the Property, subject only to the Permitted Encumbrances. The Trustor will pay or cause to be
paid, and will indemnify the Trustee and the Beneficiary in respect of, all taxes (including
interest and penalties) at any time payable in connection with the filing and recording of this
Deed of Trust and any and all supplements and amendments hereto.

          SECTION 1.5 Payment of Impositions, etc. Subject to Section 1.8 (relating to permitted
contests), the Trustor will pay or cause to be paid before the same would become delinquent and
before any fine, penalty, interest or cost may be added for non-payment, all taxes, assessments,
water and sewer rates, charges, license fees, inspection fees and other governmental levies or
payments, of every kind and nature whatsoever, general and special, ordinary and extraordinary,
unforeseen as well as foreseen, which at any time may be assessed, levied, confirmed, imposed or
which may become a lien upon the Trust Premises, or any portion thereof, or which are payable with
respect thereto, or upon the rents, issues, income or profits thereof, or on the occupancy,
operation, use, possession or activities thereof, whether any or all of the same be levied directly
or indirectly or as excise taxes or as income taxes, and all taxes, assessments or charges which
may be levied on the Secured Obligations, or the interest thereon (collectively, the
“Impositions”). The Trustor will deliver to the Beneficiary, upon request, copies of official
receipts or other satisfactory proof evidencing such payments.

          SECTION 1.6 Insurance and Legal Requirements. Subject to Section 1.8 (relating to
permitted contests), the Trustor, at its expense, will comply in all material respects, or cause
compliance in all material respects with

          (a) all provisions of any insurance policy covering or applicable to the Trust Premises or any
part thereof, all requirements of the issuer of any policy, and all orders, rules, regulations and
other requirements of the National Board of Fire Underwriters (or any other body exercising similar
functions) applicable to or affecting the Trust Premises or any part thereof or any use or
condition of the Trust Premises or any part thereof (collectively, the “Insurance Requirements”);
and

          (b) all laws, including Environmental Laws, statutes, codes, acts, ordinances, orders,
judgments, decrees, injunctions, rules, regulations, permits, licenses, authorizations,

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directions and requirements of all governments, departments, commissions, boards, courts,
authorities, agencies, officials and officers, foreseen or unforeseen, ordinary or extraordinary,
which now or at any time hereafter may be applicable to the Trust Premises or any part thereof, or
any of the adjoining sidewalks, curbs, vaults and vault space, if any, streets or ways, or any use
or condition of the Trust Premises or any part thereof (collectively, the “Legal Requirements”);

noncompliance of which could reasonably be expected to cause a Material Adverse Effect.

          SECTION 1.7 Security Interests, etc. The Trustor will not directly or indirectly
create or permit or suffer to be created or to remain, and will promptly discharge or cause to be
discharged, any deed of trust, mortgage, encumbrance or charge on, pledge of, security interest in
or conditional sale or other title retention agreement with respect to or any other lien on or in
the Trust Premises or any part thereof or the interest of the Trustor or the Beneficiary therein,
or any Proceeds thereof or Rents or other sums arising therefrom, other than (a) Permitted
Encumbrances, and (b) liens of mechanics, materialmen, suppliers or vendors or rights thereto
incurred in the ordinary course of the business of the Trustor for sums not yet due or any such
liens or rights thereto which are at the time being contested as permitted by Section 1.8. The
Trustor will not postpone the payment of any sums for which liens of mechanics, materialmen,
suppliers or vendors or rights thereto have been incurred (unless such liens or rights thereto are
at the time being contested as permitted by Section 1.8), for more than 60 days after the
completion of the action giving rise to such liens or rights thereto.

          SECTION 1.8 Permitted Contests. The Trustor at its expense may contest, or cause to
be contested, by appropriate legal proceedings conducted in good faith and with due diligence, the
amount or validity or application, in whole or in part, of any Imposition, Legal Requirement, or
Insurance Requirement or lien of a mechanic, materialman, supplier or vendor, provided that, (a)
in the case of an unpaid Imposition, lien, encumbrance or charge, such proceedings shall suspend
the collection thereof from the Trustor, the Beneficiary, and the Trust Premises (including any
rent or other income therefrom) and shall not materially interfere with the payment of any such
rent or income, (b) neither the Trust Premises nor any rent or other income therefrom nor any part
thereof or interest therein would be in any material danger of being sold, forfeited, lost,
impaired or interfered with, (c) in the case of a Legal Requirement, neither the Trustor nor the
Beneficiary would be in material danger of any material civil or any criminal liability for failure
to comply therewith, (d) the Trustor shall have furnished such security, if any, as may be required
in the proceedings or as may be reasonably requested by Beneficiary, (e) the non-payment of the
whole or any part of any Imposition will not result in the delivery of a tax deed to the Trust
Premises or any part thereof because of such non-payment, (f) the payment of any sums required to
be paid with respect to the Notes or under this Deed of Trust (other than any unpaid Imposition,
lien, encumbrance or charge at the time being contested in accordance with this Section 1.8) shall
not be interfered with or otherwise affected, and (g) in the case of any Insurance Requirement, the
failure of the Trustor to comply therewith shall not affect the validity of any such insurance
required to be maintained by the Trustor under Section 2.1 and (h) that adequate reserves,
determined in accordance with GAAP, shall have been set aside on the Trustor’s books.

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          SECTION 1.9 Leases. The Trustor represents and warrants to the Trustee and the
Beneficiary that, as of the date hereof, there are no written or oral leases or other agreements of
any kind or nature, other than the Permitted Encumbrances, relating to the occupancy or use of any
portion of the Trust Premises by any Person other than the Trustor. Except as is permitted by the
Indenture, the Notes or any of the Collateral Documents, the Trustor will not enter into any such
written or oral lease or other agreement with respect to any portion of the Property without first
obtaining the written consent of the Beneficiary.

          SECTION 1.10 Compliance with Instruments. The Trustor at its expense will promptly
comply in all material respects with all rights of way or use, privileges, franchises, servitudes,
licenses, easements, tenements, hereditaments and appurtenances forming a part of the Property and
all instruments creating or evidencing the same, in each case, to the extent compliance therewith
is required of the Trustor under the terms thereof. The Trustor will not take any action which may
result in a forfeiture or termination of the rights afforded to the Trustor under any such
instruments, and will not, without the prior written consent of the Beneficiary, amend any such
instruments in any manner adverse to the Beneficiary and the Secured Parties in any material
respect, except as is permitted by the Indenture, the Notes or any Collateral Document.

          SECTION 1.11 Maintenance and Repair, etc. Subject to the provisions of the Indenture
and Section 1.12, the Trustor will keep or cause to be kept all presently and subsequently erected
or acquired Improvements and the sidewalks, curbs, vaults and vault space, if any, located on or
adjoining the same, and the streets and the ways adjoining the same, in good and substantial order
and repair and in such a fashion that neither the value nor utility of the Trust Premises will be
materially diminished, and, at its sole cost and expense, will promptly make or cause to be made
all necessary and appropriate repairs, replacements and renewals thereof, whether interior or
exterior, structural or nonstructural, ordinary or extraordinary, foreseen or unforeseen, so that
its business carried on in connection therewith may be properly conducted at all times. The
Trustor at its expense will do or cause to be done all shoring of foundations and walls of any
building or other Improvements on the Property and (to the extent permitted by law) of the ground
adjacent thereto, and every other act necessary and appropriate for the preservation and safety of
the Property by reason of or in connection with any excavation or other building operation upon the
Property and upon any adjoining property.

          SECTION 1.12 Alterations, Additions, etc. So long as no Event of Default shall have
occurred and be continuing, the Trustor shall have the right at any time and from time to time to
make or cause to be made alterations of and additions to the Property or any part thereof, provided
that any alteration or addition: (a) shall not materially change the general character or the use
of the Property (other than with respect to Non-Facility Assets) or materially reduce the fair
market value thereof below its value immediately before such alteration or addition, or materially
impair the usefulness of the Property; (b) is effected with due diligence, in a good and
workmanlike manner and in compliance in all material respects with all Legal Requirements and
Insurance Requirements; (c) subject to the Indenture and Section 1.8, is promptly and fully paid
for, or caused to be paid for, by the Trustor; and (d) is made, in case the estimated cost of such
alteration or addition exceeds U.S. $1,000,000, under the supervision of a qualified architect or
engineer or another professional.

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          SECTION 1.13 Acquired Property Subject to Lien. Subject to the Permitted Encumbrances
and except as otherwise permitted by the Indenture, all property at any time acquired by the
Trustor and provided or required by this Deed of Trust to be or become subject to the lien and
security interest hereof, whether such property is acquired by exchange, purchase, construction or
otherwise, shall forthwith become subject to the lien and security interest of this Deed of Trust
without further action on the part of the Trustor or the Beneficiary. Upon written request of
Beneficiary, the Trustor, at its expense, will execute and deliver to the Beneficiary (and will
record and file as provided in Section 1.4) an instrument supplemental to this Deed of Trust
reasonably satisfactory in substance and form to the Beneficiary, whenever such an instrument is
necessary under applicable law to subject to the lien and security interest of this Deed of Trust
all right, title and interest of the Trustor in and to all property provided or required by this
Deed of Trust to be subject to the lien and security interest hereof.

          SECTION 1.14 Assignment of Rents. The assignment, grant and conveyance of the Leases
and Rents, Proceeds and other rents, income proceeds and benefits of the Trust Premises contained
in the Granting Clause of this Deed of Trust shall constitute an absolute, present and irrevocable
assignment, grant and conveyance, provided, however, that permission is hereby given to the
Trustor, so long as no sale, foreclosure or other proceeding pursuant to Article III hereof to
convey any interest in the Trust Premises has been commenced (each of the foregoing, a “Triggering
Event”), to: (i) collect, receive and apply such Rents, Proceeds and other rents, income, proceeds
and benefits from the Trust Premises as they become due and payable, but not further in advance
thereof than is customary, and in accordance with all of the other terms, conditions and provisions
hereof, of the Indenture, the Collateral Documents, Leases, Contracts and any other agreements
and/or instruments with respect to which such payments are made or such other benefits are
conferred; or (ii) pledge to the First Lien Collateral Agent the right to collect, receive and
apply such Rents, Proceeds and other rents, income, proceeds and benefits to the extent same
constitute Proceeds of Second Lien Collateral that are First Lien Collateral (as each such term is
defined in the Intercreditor Agreement). Upon the occurrence and continuance of a Triggering
Event, such permission under subsection (i) above shall terminate immediately and automatically,
without notice to the Trustor or any other Person except as required by law, and shall not be
reinstated without the express written consent of the Beneficiary and upon the occurrence of a
Disposition such permission under subsection (ii) above shall terminate immediately and
automatically with respect to any Rents, Proceeds and other rents, income, proceeds and benefits
from Trust Premises that are the subject of a Disposition, without notice to the Trustor or any
other Person except as required by law. Such assignment shall be fully effective without any
further action on the part of the Trustor, the Trustee, or the Beneficiary, and the Beneficiary
shall be entitled, at its option, upon the occurrence of a Triggering Event, to collect, receive
and apply all Rents, Proceeds and all other rents, income, proceeds and benefits from the Trust
Premises, including all right, title and interest of the Trustor in any escrowed sums or deposits
or any portion thereof or interest therein, whether or not the Trustee or the Beneficiary takes
possession of the Trust Premises or any part thereof. The Trustor further grants to the Beneficiary
the right, at the Beneficiary’s option, upon the occurrence and continuance of a Triggering Event
hereunder, to:

          (a) enter upon and take possession of the Property for the purpose of collecting Rents,
Proceeds and said rents, income, proceeds and other benefits;

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          (b) dispossess by the customary summary proceedings any tenant, purchaser or other Person that
is not a party to a lease which is a Permitted Encumbrance;

          (c) let or convey the Trust Premises or any portion thereof or any interest therein; and

          (d) apply Rents, Proceeds and such other rents, income, proceeds and other benefits of the
Trust Premises, after the payment of all necessary fees, charges and expenses, on account of the
Secured Obligations in accordance with Section 3.11.

Notwithstanding the foregoing, if Trustor has pledged to the First Lien Collateral Agent the right
to collect, receive and apply such Rents, Proceeds and other rents, income, proceeds and benefits
to the extent same constitute Proceeds of Second Lien Collateral that are First Lien Collateral,
then permission is given to the First Lien Collateral Agent to continue to collect, receive and
apply same until a Disposition occurs affecting the Trust Premises from which such Rents, Proceeds
and other rents, income, proceeds and benefits are generated. Nothing in this Section 1.14 shall
be deemed to modify any of the provisions of the Intercreditor Agreement.

          SECTION 1.15 No Claims Against the Trustee or the Beneficiary. Nothing contained in
this Deed of Trust shall constitute any consent or request by the Trustee or the Beneficiary,
express or implied, for the performance of any labor or the furnishing of any materials or other
property in respect of the Property or any part thereof, or be construed to permit the making of
any claim against the Trustee or the Beneficiary in respect of labor or services or the furnishing
of any materials or other property or any claim that any lien based on the performance of such
labor or the furnishing of any such materials or other property is prior to the lien and security
interest of this Deed of Trust. All contractors, subcontractors, vendors and other persons dealing
with the Property, or with any persons interested therein, are hereby advised to take notice of the
provisions of this Section.

          SECTION 1.16 Indemnification. The Trustor will protect, indemnify, save harmless and
defend the Trustee and the Beneficiary, the Secured Parties and each of their respective officers,
directors, shareholders, employees, representatives and agents (collectively, the “Indemnified
Parties” and individually, an “Indemnified Party”), from and against any and all liabilities,
obligations, claims, damages, penalties, causes of action, costs and expenses (including, without
limitation, reasonable attorneys’ fees and expenses) imposed upon or incurred by or asserted
against any Indemnified Party by reason of (a) ownership of an interest in this Deed of Trust, the
Indenture, the Notes or any of the Collateral Documents, (b) any accident, injury to or death of
persons or loss of or damage to or loss of the use of property occurring on or about the Property
or any part thereof or the adjoining sidewalks, curbs, vaults and vault spaces, if any, streets,
alleys or ways, (c) any use, non-use or condition of the Trust Premises or any part thereof or the
sidewalks, curbs, vaults and vault spaces, if any, streets, alleys or ways adjoining the Property,
(d) any failure on the part of the Trustor to perform or comply with any of the terms of this Deed
of Trust, the Indenture, the Notes or any of the other Collateral Documents, (e) performance of any
labor or services or the furnishing of any materials or other property in respect of the Trust
Premises or any part thereof made or suffered to be made by or on behalf of the Trustor, (f) any
negligence or tortious act on the part of Trustor or any of its agents, contractors, lessees,
licensees or invitees, (g) any work in connection with any alterations,

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changes, new construction or demolition of or additions to the Trust Premises, or (h)(i) any
Hazardous Material on, in, under or affecting all or any portion of the Property, the groundwater,
or any surrounding areas, (ii) any misrepresentation, inaccuracy or breach of any warranty,
covenant or agreement contained or referred to in Sections 1.20 and 1.21, (iii) any
violation or claim of violation by the Trustor of any Environmental Laws, or (iv) the imposition of
any lien for damages caused by or the recovery of any costs for the cleanup, release or threatened
release of any Hazardous Material, except to the extent that any of the matters described in
subsections (a)-(h) arise out of the gross negligence, unlawful acts or willful misconduct of any
Indemnified Party. THE TRUSTEE SHALL NOT BE LIABLE FOR ANY ACT OR OMISSION OR ERROR OF JUDGMENT IN
CONNECTION WITH THIS DEED OF TRUST, IT BEING THE INTENT OF THE PARTIES HERETO THAT THE TRUSTEE
SHALL NOT BE LIABLE FOR THE TRUSTEE’S SOLE OR CONTRIBUTORY NEGLIGENCE. If any action or proceeding
be commenced, to which action or proceeding any Indemnified Party is made a party by reason of the
execution of this Deed of Trust, the Indenture, the Notes, or any of the other Collateral
Documents, or in which it becomes necessary to defend or uphold the lien of this Deed of Trust, all
sums paid by the Indemnified Parties, for the expense of any litigation to prosecute or defend the
rights and lien created hereby or otherwise, shall be paid by the Trustor to such Indemnified
Parties, as the case may be, as hereinafter provided. The Trustor will pay and save the
Indemnified Parties harmless against any and all liability with respect to any intangible personal
property tax or similar imposition of the State or any subdivision or authority thereof now or
hereafter in effect, to the extent that the same may be payable by the Indemnified Parties in
respect of this Deed of Trust, the Indenture, the Notes or any other Secured Obligation. All
amounts payable to the Indemnified Parties under this Section 1.16 shall be deemed
indebtedness secured by this Deed of Trust and any such amounts which are not paid within ten (10)
days after written demand therefor by any Indemnified Party shall bear interest at the rate
provided for in the Indenture and the Notes from the date of such demand. In case any action, suit
or proceeding is brought against any Indemnified Party by reason of any such occurrence, the
Trustor, upon request of such Indemnified Party, will, at the Trustor’s expense, resist and defend
such action, suit or proceeding or cause the same to be resisted or defended by counsel designated
by the Trustor and approved by such Indemnified Party. The obligations of the Trustor under this
Section 1.16 shall survive any discharge or reconveyance of this Deed of Trust and payment
in full of the Secured Obligations.

          SECTION 1.17 No Credit for Payment of Taxes. The Trustor shall not be entitled to any
credit against the Secured Obligations by reason of the payment of any tax on the Trust Premises or
any part thereof or by reason of the payment of any other Imposition, and shall not apply for or
claim any deduction from the taxable value of the Trust Premises or any part thereof by reason of
this Deed of Trust.

          SECTION 1.18 No Transfer of the Trust Premises. Except as is provided in the
Indenture, the Notes or the Collateral Documents, and except for the Permitted Encumbrances, the
Trustor shall not, without the prior written consent of the Beneficiary, which consent shall not be
unreasonably withheld, conditioned or delayed, (i) sell, convey, assign or otherwise transfer the
Trust Premises or any portion of the Trustor’s interest therein or (ii) further encumber the Trust
Premises or permit the Trust Premises to become encumbered by any lien,

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claim, security interest or other indebtedness of any kind or nature other than the Permitted
Encumbrances.

          SECTION 1.19 Security Agreement. With respect to the items of personal property and
fixtures referred to and described in the Granting Clause of this Deed of Trust and included as
part of the Trust Premises, this Deed of Trust is hereby made and declared to be a security
agreement encumbering each and every item of such personal property and fixtures included as part
of the Trust Premises now or hereafter owned by Trustor, in compliance with the provisions of the
Uniform Commercial Code as enacted in the State. In this respect (and notwithstanding the
conveyance to the Trustee rather than directly to the Beneficiary as provided in this Deed of
Trust), Trustor, as “Debtor”, expressly grants to Beneficiary, as “Secured Party”, a security
interest in and to all of the property now or hereafter owned by Trustor which constitutes the
personal property and fixtures included as part of the Trust Premises hereinabove referred to and
described in this Deed of Trust, including all extensions, accessions, additions, improvements,
betterments, renewals, replacements and substitutions thereof or thereto, and all proceeds from the
sale or other disposition thereof. Trustor agrees that Beneficiary may file this Deed of Trust, or
a reproduction thereof, in the real estate records or other appropriate index, as, and this Deed of
Trust shall be deemed to be, a financing statement filed as a fixture filing in accordance with the
laws of the State. Any reproduction of this Deed of Trust or of any other security agreement or
financing statement executed by Trustor shall be sufficient as a financing statement. In addition,
Trustor agrees to execute and deliver to Beneficiary, upon Beneficiary’s request, financing
statements, as well as extensions, renewals, and amendments thereof, and reproductions of this Deed
of Trust, in such form as Beneficiary may reasonably require to perfect a security interest with
respect to said items. Trustor shall pay all costs of filing such financing statements and any
extensions, renewals, amendments and releases thereof, and shall pay all reasonable costs and
expenses of any record searches for financing statements Beneficiary may reasonably require.
Except as is provided in the Indenture, the Notes or the Collateral Documents, and except for the
Permitted Encumbrances, without the prior written consent of Beneficiary, Trustor shall not create
or suffer to be created pursuant to the Uniform Commercial Code any other security interest in the
above-described personal property and fixtures, including any replacements and additions thereto.
Upon the occurrence and during the continuance of an Event of Default under this Deed of Trust, the
Beneficiary shall have and shall be entitled to exercise any and all of the rights and remedies (i)
as prescribed in this Deed of Trust, or (ii) as prescribed by general law, or (iii) as prescribed
by the specific statutory provisions now or hereafter enacted and specified in said Uniform
Commercial Code, all at Beneficiary’s sole election. Trustor warrants that Trustor’s correct name,
identity, state of incorporation and address are as set forth herein. Trustor agrees that it shall
provide Trustee and Beneficiary with thirty (30) days prior written notice of any change in
Trustor’s name, identity, state of incorporation or address. The mailing address of the
Beneficiary from which information may be obtained concerning the security interest created herein
is also set forth herein. This information hereof is provided in order that this Deed of Trust
shall comply with the requirements of the Uniform Commercial Code as enacted in the State for
instruments to be filed as financing statements. In accordance with the laws of the State, this
Deed of Trust shall remain effective as a fixture filing until this Deed of Trust is released or
satisfied of record or its effectiveness otherwise terminates as to
 the Trust Premises.

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          SECTION 1.20 Representations and Warranties. In order to induce the Beneficiary to
enter into this Deed of Trust, the Indenture and the other Collateral Documents, the Trustor agrees
that all of the representations and warranties of Trustor set forth in the Indenture are
incorporated into this Deed of Trust by reference as if fully set forth herein.

          SECTION 1.21 Trustor’s Covenants. In order to induce the Beneficiary to accept this
Deed of Trust and enter into the Indenture and the other Collateral Documents, the Trustor agrees
that all of the covenants of Trustor set forth in the Indenture are incorporated in this Deed of
Trust by reference as if fully set forth herein.

          SECTION 1.22 Attornment. Beneficiary, by its acceptance of this Deed of Trust, hereby
acknowledges and agrees that the liens granted herein are or will be subject to the rights of
certain lessees under: (i) certain Leases in existence on the date hereof; (ii) Leases entered into
by Trustor after the date hereof provided that Trustor obtains the written consent of Beneficiary
prior to entering into such Leases; and (iii) Leases entered into by Trustor after the date hereof
without the consent of Beneficiary provided that such Lease is a Permitted Lien (each of the Leases
described in clauses (i) (ii) and (iii), a “Permitted Lease”). The rights of the tenants under the
Permitted Leases shall not be adversely affected by the exercise by Beneficiary of any of its
rights hereunder, nor shall any such tenant be in any way deprived of its rights under the
applicable Permitted Lease except in accordance with the terms of such lease. In the event that
Beneficiary succeeds to the interest of Trustor under a Permitted Lease, such Permitted Lease shall
not be terminated or affected thereby except as set forth therein, and any sale of the applicable
leased premises by Beneficiary or pursuant to the judgment of any court in an action to enforce the
remedies provided for in this Deed of Trust shall be made subject to such Permitted Lease and the
rights of such tenant expressly set forth thereunder. If Beneficiary succeeds to the interests of
Trustor in and to the applicable leased premises or under such Permitted Lease or enters into
possession of such leased premises, the Beneficiary, and such tenants, shall be bound to each other
under all of the express terms, covenants and conditions of such Permitted Lease, as if the
Beneficiary was originally the Trustor as lessor thereunder, provided, however, that Beneficiary or
its successors and assigns, shall not be (i) subject to any credits, offsets, defenses or claims
which such tenant might have against Trustor; (ii) liable for any act or omission of Trustor or for
any indemnity, of whatever nature, by Trustor pursuant to any provision contained in such Permitted
Lease with respect to any event occurring prior to the date that Beneficiary or its successor or
assign shall acquire the leased premises; (iii) bound by any covenant to undertake or complete any
construction in connection with the leased premises or to pay any sums in connection therewith; or
(iv) required to account for any security deposit other than any security deposit actually
delivered to Beneficiary or its successor or assign.

          SECTION 1.23 Inspections. Trustor will permit the Trustee or the Beneficiary, or the
agents of either of them, to enter upon the Property and all parts thereof, for the purpose of
investigating and inspecting the condition and operation thereof and of the other Trust Premises.
If an Event of Default has occurred and is continuing, then such investigation and inspection shall
be performed at the cost and expense of Trustor.

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ARTICLE II

INSURANCE; DAMAGE, DESTRUCTION OR TAKING, ETC.

          SECTION 2.1 Insurance.

          SECTION 2.1.1 Risks to be Insured. The Trustor will, at its expense, maintain or cause
to be maintained: (a) insurance with respect to the Improvements against loss or damage by fire,
lightning and such other risks as are included in standard “all-risk” policies, in amounts
sufficient to prevent the Trustor and the Beneficiary from becoming a co-insurer of any partial
loss under the applicable policies, but in any event in amounts not less than the then full
insurable value (accrual replacement value) of the Improvements (subject to commercially reasonable
deductibles), as determined by the Trustor in accordance with generally accepted insurance
practice, (b) comprehensive public liability, including bodily injury and product liability and
property damage, insurance, with personal injury endorsements, applicable to the Trust Premises in
such amounts as are customarily carried by Persons operating similar properties in the same general
locality, but in any event with a combined single limit of not less than Twenty Million Dollars
($20,000,000) per occurrence, (c) explosion insurance in respect of any steam and pressure boilers
and similar properties in the same general locality, but in any event in an amount not less than
Twenty Million Dollars ($20,000,000), (d) business interruption insurance (including added expense
coverage against all insurable perils for a period of not fewer than twelve (12) months (subject to
a reasonable aggregate deductible), (e) worker’s compensation insurance to the full extent required
by applicable law for all employees of the Trustor engaged in any work on or about the Property,
(f) employer’s liability insurance with a limit of not less than Ten Million Dollars ($10,000,000)
for each occurrence, and (g) all-risk, builders’ risk insurance with respect to the Property during
any period during which there is any construction work being performed, against loss or damage by
fire or other risks, including vandalism, malicious mischief and sprinkler leakage, as are included
in so-called “extended coverage” clauses at the time available and (h) such other insurance with
respect to the Property in such amounts and against such insurable hazards as the Beneficiary from
time to time my reasonably require by written notice to the Trustor and is then being required by
lenders of facilities similar to the Trust Premises, which facilities are located in a similar
geographic area to the Trust Premises. Notwithstanding the foregoing, to the extent any insurance
required herein is no longer available Trustor shall not be in default of its obligations hereunder
if it fails to obtain such unavailable insurance. In addition, to the extent it becomes
commercially unreasonable to maintain any such insurance (which shall be true if such insurance is
not being renewed or obtained by substantially all owners of facilities similar to the Trust
Premises which are located in a similar geographic area to the Trust Premises), then Trustor shall
not be required to maintain such insurance until the time such insurance is available on
commercially reasonable terms

          SECTION 2.1.2 Policy Provisions. All insurance maintained by the Trustor pursuant to
Section 2.1.1 shall: (a) be provided by insurers that are approved and licensed to conduct business
or authorized to write insurance in the State of Texas with a minimum Best rating of “A-VIII”
(provided that, with respect to the insurance maintained by Trustor on the date hereof, Trustor may
maintain or renew such insurance with its current insurers if the Financial

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Size Category (“FSC”) of such insurer is no lower than the lower of VIII or such insurers FSC
on the date hereof); (b) (except for worker’s compensation insurance) list the Beneficiary, as an
additional insured as its interest may appear; (c) include effective waivers by the insurer of all
rights of subrogation against any named insured, the indebtedness secured by this Deed of Trust and
the Trust Premises and all claims for insurance premiums against the Beneficiary; (d) (except for
worker’s compensation and public liability insurance) provide that any losses shall be payable
notwithstanding (i) any act, failure to act or negligence of or violation of warranties,
declarations or conditions contained in such policy by any named insured, (ii) the occupation or
use of the Trust Premises for purposes more hazardous than permitted by the terms thereof, (iii)
any foreclosure or other action or proceeding taken by the Beneficiary pursuant to any provision of
this Deed of Trust, or (iv) any change in title or ownership of the Trust Premises; (e) endeavor to
provide to Beneficiary at least thirty (30) days prior written notice of cancellation, reduction in
amount or material change in coverage thereof or any portion thereof, (f) provide that any notice
under such policies shall be simultaneously delivered to the Beneficiary. Any insurance maintained
pursuant to this Section 2.1 may be evidenced by blanket insurance policies covering the Property
and other properties or assets of the Trustor, provided that any such policy shall specify the
portion, if less than all, of the total coverage of such policy that is allocated to the Trust
Premises and shall in all other respects comply with the requirements of this Section 2.1.

          SECTION 2.1.3 Delivery of Certificates, etc. The Trustor will deliver to the
Beneficiary, promptly upon request, (a) certificates of all policies evidencing all insurance
required to be maintained under Section 2.1.1 (or, in the case of blanket policies, certificates
thereof by the insurers together with a counterpart of each blanket policy), and (b) evidence as to
the payment of all premiums due thereon (with respect to public liability insurance policies, all
installments for the current year due thereon to such date), provided that the Beneficiary shall
not be deemed by reason of its custody of such certificates to have knowledge of the contents
thereof or of the applicable policies. If Trustor fails to obtain insurance in accordance herewith,
Beneficiary may do so (but shall not be obligated to do so) and without limiting any of
Beneficiary’s other remedies exercise its rights under Section 3.14.

          SECTION 2.1.4 Separate Insurance. The Trustor will not take out separate insurance
concurrent in form or contributing in the event of loss with that required to be maintained
pursuant to this Section 2.1 unless such additional insurance will not affect Beneficiary’s rights
with respect to the insurance maintained pursuant to this Section 2.1.

          SECTION 2.2 Damage, Destruction or Taking; Trustor to Give Notice; In case of:

          (a) any material damage to or destruction of the Trust Premises or any material part thereof;
or

          (b) any taking, whether for permanent or temporary use, of all or any material part of the
Trust Premises or any material interest therein or material right accruing thereto, as the result
of the exercise of the right of condemnation or eminent domain (a “Taking”), or the commencement of
any proceedings or negotiations which may result in a Taking,

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the Trustor will promptly give written notice thereof to the Beneficiary, generally describing the
nature and extent of such damage or destruction and the Trustor’s best estimate of the cost of
restoring the Trust Premises, or the nature of such proceedings or negotiations and the nature and
extent of the Taking which might result therefrom, as the case may be. Any Net Loss Proceeds from
an Event of Loss shall be applied in accordance with Section 4.17 of the Indenture.

ARTICLE III

EVENTS OF DEFAULT; REMEDIES, ETC.

          SECTION 3.1 Event of Default; Acceleration. If an Event of Default shall have
occurred and be continuing, then and in any such event the Beneficiary may at any time thereafter
(unless all Events of Default shall theretofore have been remedied and all costs and expenses
including, without limitation, attorneys’ fees and expenses, incurred by or on behalf of the
Beneficiary of which Trustor has notice shall have been paid in full by the Trustor) declare, by
written notice to the Trustor, the Notes and all other Secured Obligations to be due and payable
immediately or on a date specified in such notice, and on such date the same shall be and become
due and payable, together with interest accrued thereon, without presentment, demand, protest or
notice, all of which the Trustor hereby waives. The Trustor will pay on demand all reasonable
costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses,
incurred by or on behalf of the Beneficiary in enforcing this Deed of Trust, the Indenture, the
Notes, or the Collateral Documents that are occasioned by any default hereunder.

          SECTION 3.2 Legal Proceedings; Judicial Foreclosure. If an Event of Default shall
have occurred and be continuing, the Beneficiary at any time may, at its election, proceed at law
or in equity or otherwise to enforce the payment and performance of the Secured Obligations in
accordance with the terms hereof and thereof and to foreclose the lien of this Deed of Trust as
against all or any part of the Trust Premises and to have the same sold under the judgment or
decree of a court of competent jurisdiction. The Beneficiary shall be entitled to recover in such
proceedings all costs incident thereto, including reasonable attorneys’ fees and expenses in such
amounts as may be fixed by any court.

          SECTION 3.3 Power of Sale. If an Event of Default shall have occurred and be
continuing, the Beneficiary may direct the Trustee to sell or offer for sale the Trust Premises in
such portions, order and parcels as the Beneficiary may determine, with or without having first
taken possession of the same, to the highest bidder for cash at public auction. Such sale shall be
made at the courthouse of the county wherein the Land (or any of that portion thereof to be sold)
is situated (whether the parts or parcels thereof, if any, in different counties are contiguous or
not, and without the necessity of having any personal property hereby mortgaged present at such
sale) on the first Tuesday of any month between the hours of 10:00 a.m. and 4:00 p.m. after posting
a written or printed notice or notices of the place, the earliest time at which the sale will begin
and terms of the sale of the Trust Premises for twenty-one (21) days prior to the date of the sale
at the courthouse door of the county in which the sale is to be made and at the courthouse door of
any other county in which a portion of the Trust Premises may be situated and filing a copy of such
notice(s) in the office of the county clerk in each of such counties, and by serving written notice
of the proposed sale at least twenty-one (21) days preceding the date of sale by

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certified mail on each debtor obligated to pay the Secured Obligations according to the
records of the Beneficiary. Service of such notice shall be completed upon deposit of the notice,
enclosed in a postpaid wrapper, properly stamped and addressed to such debtor at the most recent
address as shown by the records of the Beneficiary, in a post office or official depository under
the care and custody of the United States. It is agreed that the posting and transmittal of
notices may be performed by the Trustee, Beneficiary, or by any person acting for them. In lieu
of the foregoing, the sale may be accomplished by following the procedures permitted or required by
Section 51.002 of the Texas Property Code, as same may be amended from time to time, relating to
the sale of real estate and/or by the Texas Uniform Commercial Code-Secured Transactions (same
being Chapter 9 of the Texas Business and Commerce Code) relating to the sale of personal property
collateral after default by a debtor (as said Section and Chapter may now exist or may hereafter be
amended or succeeded), or by any other present or subsequent articles or enactments relating to the
same. Nothing contained in this Section shall be construed to limit in any way the Trustee’s
rights to sell the Trust Premises by private sale if, and to the extent, that such private sale is
permitted under the laws of the State or by public or private sale after entry of judgment by any
court of competent jurisdiction ordering the same. At any such sale (i) whether made under power
herein contained, Section 51.002 of the Texas Property Code, the Texas Uniform Commercial Code-
Secured Transactions, any other legal requirement or by virtue of any judicial procedure or any
other legal right, remedy or recourse, it shall not be necessary for the Trustee to have physically
present, or to have constructive possession of, the Trust Premises (Trustor hereby covenanting and
agreeing to deliver to the Trustee any portion of the Trust Premises not actually or constructively
possessed by the Trustee immediately upon demand by the Trustee), and the title to and right of
possession of any such property shall pass to the purchaser thereof as completely as if the same
had been actually present and delivered to purchaser at such sale, (ii) each instrument of
conveyance executed by the Trustee shall contain a special warranty of title, binding upon Trustor,
(iii) each and every recital contained in any instrument of conveyance made by the Trustee shall
conclusively establish the truth and accuracy of the matters recited therein, including, without
limitation, nonpayment of the Secured Obligations, advertisement and conduct of such sale in the
manner provided herein and otherwise by law and appointment of any successor to the Trustee
hereunder, (iv) any and all prerequisites to the validity thereof shall be conclusively presumed to
have been performed, (v) the receipt of the Trustee or of such other party or officer making the
sale shall be a sufficient discharge to the purchaser or purchasers for his or their purchase money
and no such purchaser or purchasers, or his or their assigns or personal representatives, shall
thereafter be obligated to see to the application of such purchase money or be in any way
answerable for any loss, misapplication or nonapplication thereof, (vi) to the fullest extent
permitted by law, Trustor shall be completely and irrevocably divested of all of its right, title,
interest, claim and demand whatsoever, either at law or in equity, in and to the property sold and
such sale shall be a perpetual bar, both at law and in equity, against Trustor, and against any and
all other persons claiming or to claim the property sold or any part thereof, by, through or under
Trustor, and (vii) to the extent and under such circumstances as are permitted by law, Beneficiary
may be a purchaser at any such sale. The Trust Premises may be sold in one or more parcels and in
such manner and order as Trustee and Beneficiary, in their sole discretion, may elect, it being
expressly understood and agreed that the right of sale arising out of any Event of Default shall
not be exhausted by any one or more sales but other and successive sales may be made until all of
the Trust Premises have been sold or until the Secured Obligations have been fully satisfied. The
Trustee may postpone the sale of

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all or any portion of such Trust Premises by public announcement at the time and place of such
sale, and from time to time thereafter may further postpone such sale by public announcement made
at the time of sale fixed by the preceding postponement. In case Beneficiary shall have proceeded
to invoke any right, remedy or recourse permitted under this Deed of Trust and shall thereafter
elect to discontinue or abandon the same for any reason, Beneficiary shall have the unqualified
right so to do and, in such event, Trustor and Beneficiary shall be restored to their former
positions with respect to the Secured Obligations, the Trust Premises and otherwise, and the
rights, remedies, recourses and powers of Beneficiary shall continue as if same had never been
invoked.

          SECTION 3.4 Uniform Commercial Code Remedies. If an Event of Default shall have
occurred and be continuing, the Beneficiary may exercise from time to time and at any time any
rights and remedies available to it under applicable law upon default in the payment of
indebtedness, including, without limitation, any right or remedy available to it as a secured party
under the Uniform Commercial Code of the State. The Trustor shall, promptly upon request by the
Beneficiary, assemble the Trust Premises, or any portion thereof generally described in such
request, and make it available to the Beneficiary at such place or places designated by the
Beneficiary and reasonably convenient to the Beneficiary and the Trustor. If the Beneficiary
elects to proceed under the Uniform Commercial Code of the State to dispose of portions of the
Trust Premises, the Beneficiary, at its option, may give the Trustor notice of the time and place
of any public sale of any such property, or of the date after which any private sale or other
disposition thereof is to be made, by sending notice by registered or certified first class mail,
postage prepaid, to the Trustor at least ten (10) days before the time of the sale or other
disposition. If any notice of any proposed sale, assignment or transfer by the Beneficiary of any
portion of the Trust Premises or any interest therein is required by law, the Trustor conclusively
agrees that ten (10) days notice to the Trustor of the date, time and place (and, in the case of a
private sale, the terms) thereof is reasonable.

          SECTION 3.5 Beneficiary Authorized to Execute Deeds, etc. The Trustor irrevocably
appoints the Trustee and the Beneficiary (which appointment is coupled with an interest) the true
and lawful attorney-in-fact of the Trustor, in its name and stead and on its behalf, for the
purpose of effectuating any sale, assignment, transfer or delivery for the enforcement hereof,
whether pursuant to power of sale, foreclosure or otherwise, to execute and deliver all such deeds,
bills of sale, assignments, releases and other instruments as may be designated in any such
request; provided, however, Trustee and Beneficiary are permitted to take such actions only upon
and during the continuation of an Event of Default or when otherwise permitted under the Indenture
or any Collateral Document.

          SECTION 3.6 Purchase of Trust Premises by Beneficiary. The Beneficiary may be a
purchaser of the Trust Premises or of any part thereof or of any interest therein at any sale
thereof, whether pursuant to power of sale, foreclosure or otherwise, and the Beneficiary may apply
upon the purchase price thereof the indebtedness secured hereby owing to the Beneficiary. Such
purchaser shall, upon any such purchase, acquire good title to the properties so purchased, free of
the security interest and lien of this Deed of Trust and free of all rights of redemption in the
Trustor.

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          SECTION 3.7 Receipt a Sufficient Discharge to Purchaser. Upon any sale of the Trust
Premises or any part thereof or any interest therein, whether pursuant to power of sale,
foreclosure or otherwise, the receipt of the Trustee or the officer making the sale under judicial
proceedings shall be a sufficient discharge to the purchaser for the purchase money, and such
purchaser shall not be obliged to see to the application thereof.

          SECTION 3.8 Waiver of Appraisement Valuation, etc. The Trustor hereby waives, to the
fullest extent it may lawfully do so, the benefit of appraisement, valuation, stay, extension and
redemption laws now or hereafter in force and all rights of marshaling in the event of any sale of
the Trust Premises or any part thereof or any interest therein.

          SECTION 3.9 Sale a Bar Against Trustor. Any lawfully conducted sale of the Trust
Premises or any part thereof or any interest therein under or by virtue of this Deed of Trust,
whether pursuant to power of sale, foreclosure or otherwise, shall forever be a bar against the
Trustor.

          SECTION 3.10 Secured Obligations to Become Due on Sale. Except as otherwise provided
in the Indenture or herein, upon any sale of the Trust Premises or any portion thereof or interest
therein by virtue of the exercise of any remedy by the Beneficiary, or the Trustee on behalf of the
Beneficiary, under or by virtue of this Deed of Trust, whether pursuant to power of sale,
foreclosure or otherwise in accordance with this Deed of Trust or by virtue of any other remedy
available at law or in equity or by statute or otherwise, at the option of the Beneficiary, any
sums or monies due and payable pursuant to the Indenture or Collateral Documents and in connection
with the Secured Obligations shall, if not previously declared due and payable, immediately become
due and payable, together with interest accrued thereon, and all other indebtedness which this Deed
of Trust by its terms secures.

          SECTION 3.11 Application of Proceeds of Sale and Other Moneys. Except as otherwise
provided in the Indenture or in this Deed of Trust, the proceeds of any sale of the Trust Premises
or any part thereof or any interest therein under or by virtue of this Deed of Trust, whether
pursuant to power of sale, foreclosure or otherwise, and all other moneys at any time held by the
Beneficiary as part of the Trust Premises, shall be applied in accordance with Section 6.10 of the
Indenture.

          SECTION 3.12 Appointment of Receiver. If an Event of Default shall have occurred and
be continuing, the Beneficiary shall, as a matter of right, be entitled to seek a court order for
the appointment of a receiver for all or any part of the Trust Premises, whether such receivership
be incidental to a proposed sale of the Trust Premises or otherwise, and the Trustor hereby
consents to the appointment of such a receiver and will not oppose any such appointment.

          SECTION 3.13 Possession, Management and Income. If an Event of Default shall have
occurred and be continuing, in addition to, and not in limitation of, the rights and remedies
provided in Section 1.14, the Trustee and the Beneficiary, upon five (5) days written notice to the
Trustor, may enter upon and take possession of the Trust Premises or any part thereof by force,
summary proceeding, ejectment or otherwise and may remove the Trustor and all other Persons and any
and all property therefrom and may hold, operate, maintain, repair, preserve and manage the same
and receive all earnings, income, Rents, issues and Proceeds

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accruing with respect thereto or any part thereof. The Trustee and the Beneficiary shall be
under no liability for or by reason of any such taking of possession, entry, removal or holding,
operation or management, except that any amounts so received by the Trustee and the Beneficiary
shall be applied to pay all costs and expenses of so entering upon, taking possession of, holding,
operating, maintaining, repairing, preserving and managing the Trust Premises or any part hereof,
and any Impositions or other charges prior to the lien and security interest of this Deed of Trust
which the Trustee and the Beneficiary may consider it necessary or desirable to pay, and any
balance of such amounts shall be applied as provided in Section 3.11.

          SECTION 3.14 Right of Beneficiary to Perform Trustor’s Covenants, etc. If the Trustor
shall fail to make any payment or perform any act required to be made or performed hereunder or
under the Indenture or the Notes, the Beneficiary, without notice to or demand upon the Trustor and
without waiving or releasing any obligation or Event of Default, may (but shall be under no
obligation) at any time thereafter make such payment or perform such act for the account and at the
expense of the Trustor, and may enter upon the Trust Premises for such purpose and take all such
action thereon as, in the Beneficiary’s opinion, may be necessary or appropriate therefor. No such
entry and no such action shall be deemed an eviction of any lessee of the Property or any part
thereof. All sums so paid by the Beneficiary and all costs and expenses (including, without
limitation, reasonable attorneys’ fees and expenses) so incurred, together with interest thereon at
the rate provided in the Indenture from the date of payment or incurring, shall constitute
additional indebtedness under the Collateral Documents and shall be paid by the Trustor to the
Trustee or the Beneficiary, as the case may be, on demand.

          SECTION 3.15 Subrogation. To the extent that the Beneficiary, on or after the date
hereof, pays any sum due under any provision of any Legal Requirement or any instrument creating
any lien prior or superior to the lien of this Deed of Trust, or the Trustor or any other Person
pays any such sum with the proceeds of the Notes, the Beneficiary shall have and be entitled to a
lien on the Trust Premises equal in priority to the lien discharged, and the Beneficiary shall be
subrogated to, and receive and enjoy all rights and liens possessed, held or enjoyed by, the holder
of such lien, which shall remain in existence and benefit the Beneficiary in securing the Secured
Obligations.

          SECTION 3.16 Remedies, etc., Cumulative. Each right, power and remedy of the
Beneficiary provided for in this Deed of Trust, the Indenture and in the Notes or now or hereafter
existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and
shall be in addition to every other right, power or remedy provided for in this Deed of Trust, the
Indenture, the Notes or the other Collateral Documents or now or hereafter existing at law or in
equity or by statute or otherwise, and the exercise or beginning of the exercise by the Beneficiary
or the Trustee of any one or more of the rights, powers or remedies provided for in this Deed of
Trust, the Indenture, the Notes, or the other Collateral Documents or now or hereafter existing at
law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise
by the Beneficiary or the Trustee of any or all such other rights, powers or remedies.

          SECTION 3.17 Provisions Subject to Applicable Law. All rights, powers and remedies
provided in this Deed of Trust may be exercised only to the extent that the exercise

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thereof does not violate any applicable provisions of law and are intended to be limited to
the extent necessary so that they will not render this Deed of Trust invalid, unenforceable or not
entitled to be recorded, registered or filed under the provisions of any applicable law. If any
term of this Deed of Trust or any application thereof shall be invalid or unenforceable, the
remainder of this Deed of Trust and any other application of such term shall not be affected
thereby.

          SECTION 3.18 No Waiver, etc. No failure by the Trustee or the Beneficiary to insist
upon the strict performance of any term hereof or of the Indenture, the Notes, or the other
Collateral Documents or to exercise any right, power or remedy consequent upon a breach hereof or
thereof, shall constitute a waiver of any such term or of any such breach. No waiver of any breach
shall affect or alter this Deed of Trust, which shall continue in full force and effect with
respect to any other then existing or subsequent breach. By accepting payment or performance of
any amount or other Secured Obligations secured hereby before or after its due date, neither the
Trustee nor the Beneficiary shall be deemed to have waived its right either to require prompt
payment or performance when due of all other amounts and Secured Obligations payable or performance
due hereunder or to declare a default for failure to effect such prompt payment or performance.

          SECTION 3.19 Compromise of Actions, etc. Any action, suit or proceeding brought by
the Beneficiary pursuant to any of the terms of this Deed of Trust, the Indenture, the Notes, or
the other Collateral Documents, or otherwise, and any claim made by the Beneficiary hereunder or
thereunder, may be compromised, withdrawn or otherwise dealt with by the Beneficiary without any
notice to or approval of the Trustor.

ARTICLE IV

DEFINITIONS

          SECTION 4.1 Terms Defined in this Deed of Trust. When used herein the following terms have
the following meanings:

     “Beneficiary” shall have the meaning set forth in the preamble.

     “Collateral Agent” is defined in the preamble.

     “Collateral Documents” shall have the meaning set forth in the Indenture.

     “Contracts” shall have the meaning set forth in clause (g) of the granting clause.

     “Disposition” shall have the meaning set forth in the Intercreditor Agreement.

     “Deed of Trust” shall have the meaning set forth in the preamble.

     “Environmental Law” means any federal, state or local statute, regulation, ordinance or rule
which pertains to environmental matters.

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     “Event of Default” means any Event of Default under and as defined in the Indenture.

     “First Lien Collateral Agent” means The CIT Group/Business Credit, Inc., as first lien
collateral agent under the Intercreditor Agreement or any successor thereto.

     “Goods” shall have the meaning set forth in clause (c) of the granting clause.

     “Hazardous Material” shall have the meaning specified in the Federal Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as subsequently modified,
supplemented or amended (“CERCLA”), provided, in the event that CERCLA is amended so as to broaden
the meaning of any term defined thereby, such broader meaning shall apply subsequent to the
effective date of such amendment and, provided further, to the extent the laws of any jurisdiction
where the Trust Premises is located on the date hereof or on any subsequent date establish a
meaning for “hazardous material,” which is broader than that specified in either CERCLA, such
broader meaning shall apply.

     “herein”, “hereof”, “hereto”, and “hereunder” and similar terms refer to this Deed of Trust
and not to any particular Section, paragraph or provision of this Deed of Trust.

     “Highest Lawful Rate” shall have the meaning set forth in Section 5.16.

     “Holders” means, collectively, the Holders of the Notes from time to time.

“Impositions” shall have the meaning set forth in Section 1.5.

     “Improvements” shall have the meaning set forth in clause (b) of the granting clause.

     “Indemnified Parties” shall have the meaning set forth in Section 1.16.

     “Indenture” is defined in the second recital.

     “Indenture Trustee” shall have the meaning set forth in the second recital.

     “Insurance Requirements” shall have the meaning set forth in paragraph (a) of Section
1.6.

     “Intercreditor Agreement” means the Intercreditor Agreement, dated as of the date hereof among
the Trustor, the subsidiaries of the Trustor party thereto, The CIT Group/Business Credit, Inc., as
first lien collateral agent, and the Indenture Trustee, as second lien collateral agent.

     “Land” shall have the meaning set forth in the first recital.

     “Leases” shall have the meaning set forth in clause (d) of the granting clause.

     “Legal Requirements” shall have the meaning set forth in paragraph (b) of Section 1.6.

     “Material Adverse Effect” means a material adverse effect on the Trust Premises taken as a
whole.

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     “Notes” is defined in the second recital.

     “Permits” shall have the meaning set forth in clause (f) of the granting clause.

     “Permitted Encumbrances” shall have the meaning set forth in Section 1.2.

     “Person” means a corporation, an association, a partnership, an organization, a business, an
individual, a government or political subdivision thereof or a governmental agency or officer.

     “Plans” shall have the meaning set forth in clause (e) of the granting clause.

     “Post-Petition Interest” means interest accruing at the rate provided for in the documents
evidencing the Notes after the filing of a petition by or against the Trustor under any Bankruptcy
Law (as defined in the Indenture), whether or not allowed as a claim in any such proceeding.

     “Proceeds” shall have the meaning set forth in clause (j) of the granting clause.

     “Property” shall have the meaning set forth in clause (b) of the granting clause.

     “Real Estate” shall have the meaning set forth in clause (a) of the granting clause.

     “Rents” shall have the meaning set forth in clause (i) of the granting clause.

     “Secured Obligations” means the Trustor’s Obligations under the Indenture, the Notes and each
other Indenture Document to which it is a party.

     “Secured Parties” means the Collateral Agent, the Indenture Trustee and the Holders.

     “Security Agreement” shall have the meaning set forth in the Indenture.

     “State” means the State of Texas.

     “State Uniform Commercial Code” means the Uniform Commercial Code of the State of Texas, in
effect and as amended from time to time.

     “Trustee” shall have the meaning set forth in the preamble.

     “Trustor” shall have the meaning set forth in the preamble.

     “Trust Premises” shall have the meaning set forth in the granting clause.

          SECTION 4.2 Use of Defined Terms. Terms for which meanings are provided in this Deed
of Trust shall, unless otherwise defined or the context requires, have such meanings when used in
any certificate and any opinion, notice or other communication delivered from time to time in
connection with this Deed of Trust or pursuant hereto.

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          SECTION 4.3 Indenture Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Deed of Trust, including its preamble and recitals, have the
meanings provided in the Indenture.

ARTICLE V

MISCELLANEOUS

          SECTION 5.1 Further Assurances; Financing Statements.

          SECTION 5.1.1 Further Assurances. The Trustor, at its expenses, will execute,
acknowledge and deliver all such instruments and take all such other action as the Beneficiary from
time to time may reasonably request:

          (a) to better subject to the lien and security interest of this Deed of Trust all or any
portion of the Trust Premises,

          (b) to perfect, publish notice or protect the validity of the lien and security interest of
this Deed of Trust,

          (c) to preserve and defend the title to the Trust Premises and the rights of the Beneficiary
therein against the claims of all Persons as long as this Deed of Trust shall remain undischarged,

          (d) to better subject to the lien and security interest of this Deed of Trust or to maintain
or preserve the lien and security interest of this Deed of Trust with respect to any replacement or
substitution for any Trust Premises or any other after-acquired property except as provided in the
Indenture, or

          (e) in order to further effectuate the purposes of this Deed of Trust and to carry out the
terms hereof and to better assure and confirm to the Beneficiary its rights, powers and remedies
hereunder.

          SECTION 5.2 Financing Statements. Notwithstanding any other provision of this Deed of
Trust, the Trustor hereby agrees that, without notice to or the consent of the Trustor, the
Beneficiary may file with the appropriate public officials such financing statements, continuation
statements, amendments and similar documents as are or may become necessary to perfect, preserve or
protect the security interest granted by this Deed of Trust.

          SECTION 5.3 Additional Security. Without notice to or consent of the Trustor, and
without impairment of the security interest and lien and rights created by this Deed of Trust, the
Trustee or the Beneficiary may accept from the Trustor or any other Person additional security for
the Secured Obligations. Neither the giving of this Deed of Trust nor the acceptance of any such
additional security shall prevent the Trustee or the Beneficiary from resorting, first, to such
additional security, or, first, to the security created by this Deed of Trust, or concurrently to
both, in any case without affecting the Trustee’s or the Beneficiary’s lien and rights under this
Deed of Trust.

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          SECTION 5.4 Defeasance; Partial Release etc.

          SECTION 5.4.1 Defeasance. If the Secured Obligations and all other amounts owing
pursuant to the Indenture and the Collateral Documents and all other sums payable hereunder by the
Trustor shall be irrevocably repaid in full in accordance with the terms thereof and Trustor shall
have complied with all the terms, conditions and requirements hereof and of the Secured
Obligations, or otherwise as may be provided in the Indenture, then on such date, the Beneficiary
shall, upon the request of the Trustor and at the Trustor’s sole cost and expense, execute and
deliver such instruments, in form and substance reasonably satisfactory to the Beneficiary, as may
be necessary to effectively reconvey, release and discharge this Deed of Trust.

          SECTION 5.4.2 Partial Release, etc. The Beneficiary may at any time and from time to
time, without liability therefor, and without prior notice to the Trustor, release or reconvey any
part of the Trust Premises, consent to the making of any map or plat of the Property, join in
granting any easement thereon or join in any extension agreement or agreement subordinating the
lien of this Deed of Trust.

          SECTION 5.5 Notices, etc. All notices and other communications provided to any of the
parties hereto shall be in writing and addressed, delivered or transmitted to such party as set
forth in the Indenture.

          SECTION 5.6 Waivers, Amendments, etc. The provisions of this Deed of Trust may be
amended, discharged or terminated and the observance or performance of any provision of this Deed
of Trust may be waived, either generally or in a particular instance and either retroactively or
prospectively, only by an instrument in writing executed by the Trustor and the Beneficiary.

          SECTION 5.7 Cross-References. References in this Deed of Trust and in each instrument
executed pursuant hereto to any Section or Article are, unless otherwise specified, to such Section
or Article of this Deed of Trust or such instrument, as the case may be, and references in any
Section, Article or definition to any clause are, unless otherwise specified, to such clause of
such Section, Article or definition.

          SECTION 5.8 Headings. The various headings of this Deed of Trust and of each
instrument executed pursuant hereto are inserted for convenience only and shall not affect the
meaning or interpretation of this Deed of Trust or such instrument or any provisions hereof or
thereof.

          SECTION 5.9 Currency. Unless otherwise expressly stated, all references to any
currency or money, or any dollar amount, or amounts denominated in “Dollars” herein will be deemed
to refer to the lawful currency of the United States.

          SECTION 5.10 Governing Law. THIS DEED OF TRUST SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE LAWS OF THE STATE.

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          SECTION 5.11 Successors and Assigns, etc. This Deed of Trust shall be binding upon
and shall inure to the benefit of the parties hereto and their respective successors and assigns.

          SECTION 5.12 Concerning the Trustee.

          SECTION 5.12.1 Acceptance of Trusts; Certain Terms of the Trusts. The Trustee, for
itself and its successors, hereby accepts the trusts of this Deed of Trust, but only upon the terms
herein set forth, including the following:

          (a) The recitals in this Deed of Trust and in any supplement hereto which may hereafter be
executed by the Trustor and the Trustee shall be taken as the statements of the Trustor and shall
not be considered as made by, or imposing any obligation or liability upon, the Trustee.

          (b) The Trustee may execute any of the trusts or powers hereof and perform any duty hereunder
either directly or through its agents or attorneys, and the Trustee shall not be responsible for
the acts of any agent or attorney appointed by it in good faith and without negligence.

          (c) The Trustee may, at the expense of the Trustor, consult with legal counsel to be selected
by it, and the Trustee shall not be liable for any action taken, suffered or omitted to be taken by
it in good faith in accordance with the advice of counsel.

          (d) The Trustor will pay to the Trustee from time to time, on demand, compensation for all
services rendered hereunder (which shall not be limited to the compensation of trustees of any
express trust as provided by law) and also all reasonable expenses, charges, counsel fees and other
disbursements and those of its agents and attorneys, made or incurred in the administration of the
trusts hereby created and any other duties hereby imposed. The Trustor agrees to indemnify and
save harmless the Trustee against and from any liability or damages which it may incur or sustain,
in good faith, in the exercise and performance of any of its powers and duties hereunder.

          (e) The Trustee shall not be liable, in case of taking possession of the Trust Premises, for
debts contracted or liability or damages incurred in the management or operation of the Trust
Premises for the salaries of employees of the Trustor or for nonfulfillment of contracts by the
Trustor.

          (f) The Trustee shall be protected in acting upon any notice, resolution, request, consent,
order, certificate, report, opinion, statement, obligation, appraisal or other document believed by
it to be genuine and to have been signed by the proper party or parties or by a person or persons
authorized to act on his or their behalf.

          (g) The Trustee shall not be responsible for the validity or genuineness of any securities,
personal property, notes or deeds of trust at any time pledged and deposited hereunder.

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          SECTION 5.12.2 Duties and Responsibility of Trustee; In Case of Default; Prior to Default;
When Acting Under Direction of Beneficiary. If an Event of Default shall have occurred and
shall be continuing to the actual knowledge of the Trustee, or if the Trustee shall have received
notice thereof from the Beneficiary, the Trustee, only if so directed by the Beneficiary, shall
exercise such of the rights and powers vested in it by this Deed of Trust, and in so doing shall
use the same degree of care and skill in their exercise, as a prudent man would exercise or use
under the circumstances in the conduct of his own affairs. None of the provisions of this Deed of
Trust shall be construed as relieving the Trustee from liability for its own negligent action, own
negligent failure to act, or own willful misconduct, except that,

          (a) so long as no Event of Default shall have occurred and be continuing,

                (i) the Trustee shall not be liable except for the performance of such duties as are
specifically set forth in this Deed of Trust, and no implied covenants or obligations shall be read
into this Deed of Trust against the Trustee, whose duties and obligations shall be determined
solely by the express provisions of this Deed of Trust, and

                (ii) in the absence of bad faith on the part of the Trustee, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of opinions expressed therein, upon
certificates or opinions conforming to the requirements of this Deed of Trust;

          (b) the Trustee shall not be liable for any error of judgment made in good faith by an officer
or officers of the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

          (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with provisions of applicable law and the direction of the
Beneficiary, relating to the time, method, and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred upon the Trustee under this
Deed of Trust;

          (d) the Trustee shall not be liable for any error of judgment made in good faith by an officer
or officers of the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

          (e) if an Event of Default shall have occurred and shall be continuing, the Trustee shall not
exercise any of the powers granted to it hereunder unless and until specifically requested to do so
by the Beneficiary; and

          (f) none of the provisions contained in this Deed of Trust shall require the Trustee to
advance or use its own funds or otherwise incur personal financial liability in the performance of
any of its duties or in the exercise of any of its rights or powers.

          SECTION 5.12.3 Resignation and Removal; Appointment of Successor Trustee.

          (a) The Trustee may resign and be discharged from the trusts hereby created by giving written
notice thereof to the Trustor and to the Beneficiary. Such resignation shall

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become effective upon the appointment of its successor and such successor’s acceptance of such
appointment, provided that, if a successor Trustee has not been so appointed, or, if so appointed,
has not accepted the appointment within thirty (30) days after the date of such written notice of
resignation, the Trustee may apply to any court of competent jurisdiction for the appointment of a
successor Trustee.

          (b) The Trustee may be removed at any time, in the Beneficiary’s sole discretion, by an
instrument or instruments signed by the Beneficiary and filed with the Trustor and the Trustee.

          (c) The Beneficiary may appoint a successor Trustee at any time by filing for record in the
office of the Register of Deeds of the County in which the Property is located a substitution of
Trustee. From the time the substitution is filed for record, the successor Trustee shall succeed
to all of the powers, duties, authority and title of the Trustee without the necessity of any
conveyance from the Trustee originally herein named or any successor. Each such substitution shall
be executed and acknowledged, and notice thereof shall be given and proof thereof made in
accordance with applicable law. The Trustor agrees to accept and confirm any such successor
Trustee hereunder by executing and delivering a supplemental Deed of Trust and security agreement
or any other appropriate agreement.

          SECTION 5.13 Waiver of Jury Trial; Submission to Jurisdiction. EACH OF THE TRUSTOR
AND THE BENEFICIARY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS DEED OF TRUST, THE INDENTURE, THE SENIOR NOTES, THE COLLATERAL DOCUMENTS OR ANY OTHER
RELATED INSTRUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN), OR ACTIONS OF THE TRUSTOR OR THE BENEFICIARY. THIS PROVISION IS A MATERIAL INDUCEMENT
FOR THE BENEFICIARY AND THE HOLDERS TO ENTER INTO THE TRANSACTIONS PROVIDED FOR IN THE INDENTURE.

          (b) FOR THE PURPOSE OF ANY ACTION OR PROCEEDING INVOLVING THIS DEED OF TRUST OR THE INDENTURE,
THE SENIOR NOTES, OR THE COLLATERAL DOCUMENTS, THE TRUSTOR, TRUSTEE AND BENEFICIARY HEREBY
EXPRESSLY AND IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ALL FEDERAL AND STATE COURTS
LOCATED IN THE STATE AND CONSENT THAT THEY MAY BE SERVED WITH ANY PROCESS OR PAPER BY REGISTERED
MAIL OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE IN ACCORDANCE WITH APPLICABLE LAW, PROVIDED
A REASONABLE TIME FOR APPEARANCE IS ALLOWED. THE TRUSTOR AND THE BENEFICIARY EACH EXPRESSLY
WAIVES, TO THE EXTENT IT MAY LAWFULLY DO SO, ANY OBJECTION, CLAIM OR DEFENSE WHICH IT MAY HAVE AT
ANY TIME TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS DEED OF TRUST
OR THE INDENTURE IN ANY SUCH COURT, IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT

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IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER IRREVOCABLY WAIVES THE
RIGHT TO OBJECT, WITH RESPECT TO ANY SUCH CLAIM, SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH
COURT, THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER THE PERSON OF THE TRUSTOR. NOTHING
CONTAINED HEREIN WILL BE DEEMED TO PRECLUDE EITHER OF THE TRUSTEE OR THE BENEFICIARY FROM BRINGING
AN ACTION AGAINST THE TRUSTOR IN ANY OTHER JURISDICTION.

          SECTION 5.14 Severability; Conflicts. Any provision of this Deed of Trust, the
Indenture, the Notes, or any other Collateral Document which is prohibited or unenforceable in any
jurisdiction shall as to such provision and such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions of this Deed of
Trust, the Indenture, the Notes, or other Collateral Documents or affecting the validity or
enforceability of such provision in any other jurisdiction. In the event of any conflict between
the terms of this Deed of Trust and the terms of the Indenture, the terms of the Indenture shall
control.

          SECTION 5.15 Security Agreement. This Deed of Trust is a document executed pursuant
to the Indenture and, unless otherwise expressly indicated herein, shall be construed, administered
and applied in accordance with the terms and provisions thereof.

          SECTION 5.16 Usury Savings Clause. In no event shall any provision of this
instrument, the Indenture, the Notes, or any other instrument evidencing or securing the Secured
Obligations ever obligate Trustor, to pay or allow Beneficiary to collect interest on the Notes or
any other Secured Obligations secured hereby at a rate greater than the maximum non-usurious rate
permitted by applicable law (herein referred to as the “Highest Lawful Rate”), or obligate Trustor
to pay any amounts that would be held or deemed to constitute interest under applicable law which,
when added to the interest payable on the Notes, would be held to constitute the payment by Trustor
of interest at a rate greater than the Highest Lawful Rate; and this provision shall control over
any provision to the contrary. To the extent the Highest Lawful Rate is determined by reference to
the laws of the State of Texas, same shall be determined by reference to the indicated rate ceiling
(as defined and described in Chapter 303 of the Texas Finance Code, as amended) at the applicable
time in effect.

     Without limiting the generality of the foregoing, in the event the maturity of all or any part
of the principal amount of the Secured Obligations shall be accelerated for any reason, then such
principal amount so accelerated shall be credited with any interest theretofore paid thereon in
advance and remaining unearned at the time of such acceleration. If, pursuant to the terms of this
Deed of Trust or the Notes, any funds are applied to the payment of any part of the principal
amount of the Secured Obligations prior to the maturity thereof, then (a)(a) any interest which
would otherwise thereafter accrue on the principal amount so paid by such application shall be
canceled, and (b) the Secured Obligations remaining unpaid after such application shall be credited
with the amount of all interest, if any, theretofore collected on the principal amount so paid by
such application and remaining unearned at the date of said application; and if the funds so
applied shall be sufficient to pay in full all the Secured Obligations, then Beneficiary shall
refund to Trustor all interest theretofore paid thereon in advance and remaining unearned at the

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time of such acceleration. Regardless of any other provision in this instrument, or in any of
the written evidences of the Secured Obligations, Trustor shall never be required to pay any
unearned interest on the Secured Obligations or any portion thereof, and shall never be required to
pay interest thereon at a rate in excess of the Highest Lawful Rate construed by courts having
competent jurisdiction thereof.

     It is the intention of the Trustor and the Beneficiary to conform strictly to the usury laws
governing the Indenture and the Collateral Documents, and any interest payable under the Indenture
and the Collateral Documents executed pursuant to the Indenture shall be subject to reduction to
the amount not in excess of the maximum non-usurious amount allowed under such laws, as construed
by the courts having jurisdiction over such matters. In the event the maturity of the Secured
Obligations is accelerated by reason of any provision of the Indenture and the Collateral Documents
executed pursuant or by reason of an election by the Beneficiary resulting from an Event of
Default, then earned interest may never include more than the maximum amount permitted by law,
computed from the dates of each advance of loan proceeds under the Indenture until payment, and any
interest in excess of the maximum amount permitted by law shall be canceled automatically or, if
theretofore paid, at the option of the Beneficiary, shall be rebated to the Trustor, or shall be
credited on the principal amount of the Secured Obligations or, if all principal has been repaid,
then the excess shall be rebated to the Trustor. If any interest is canceled, credited against
principal or rebated to the Trustor in accordance with the foregoing sentence and, if thereafter
the interest payable hereunder is less than the maximum amount permitted by applicable law, the
rate hereunder shall automatically be increased to the maximum extent possible to permit repayment
to the Beneficiary and the Lenders as soon as possible of any interest in excess of the maximum
amount permitted by law which was earlier canceled, credit against principal or rebated to the
Trustor pursuant to the provisions of the foregoing sentence.

          SECTION 5.17 Entire Agreement. THIS WRITTEN DEED OF TRUST, ASSIGNMENT OF LEASES AND
RENTS, SECURITY AGREEMENT AND FIXTURE FILING REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.

          SECTION 5.18 No Partnership. Nothing contained herein is intended or shall be
construed to create a partnership or joint venture among Trustor, Trustee and/or Beneficiary.

     THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

          SECTION 5.19 Future Advances. This Deed of Trust is given to secure the Secured
Obligations and shall secure not only obligations with respect to presently existing indebtedness
under the Indenture and the Notes but also any and all other indebtedness which may hereafter be
owing to the Holders under the Indenture and Notes, including, without limitation, indebtedness
under any Additional Notes and Exchange Notes, however incurred, whether interest or otherwise, and
whether the same shall be deferred or accrued, including future advances pursuant to the Indenture
and Notes, whether such advances are obligatory or to be made at the option of the Holders, or
otherwise, to the same extent as if such future advances were made on the date of the execution of
this Deed of Trust. The lien of this Deed of Trust shall be valid as to all indebtedness secured
hereby, including future advances, from the time of

30

 

its filing for record in the recorder’s office of the county in which the Trust Property is
located. This Deed of Trust is intended to and shall be valid and have priority over all
subsequent liens and encumbrances.

[SIGNATURE PAGE FOLLOWS]

31

 

     In Witness Whereof, the undersigned, by its duly elected officers and pursuant to proper
authority of its board of directors has duly executed, sealed, acknowledged and delivered this
instrument as of the day and year first above written.

	 	 	 	 	 
	 	STERLING CHEMICALS, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	Title:  	Name: 	 
	 

[NOTARY PAGE FOLLOWS]

32

 

[CORPORATE NOTARY PAGE]

Multi-State Corporate Acknowledgement

TRUSTOR

State of

County of

On this                      day of                     , 2007, before me, the undersigned officer,
personally appeared

                                             , with a residence at                       
                 
personally known and acknowledged himself/herself/themselves to me, or produced
                                        ’s identification to be the                     

     ___of                                         , hereinafter, (the “Corporation”) and that as such
officer(s), being duly authorized to do so pursuant to its bylaws or a resolution of its board of
directors, executed, subscribed and acknowledged the foregoing instrument for the purposes and
consideration therein contained, by signing the name of the Corporation by
himself/herself/themselves in their authorized capacities as such officer(s) as his/her/their free
and voluntary act and deed and the free and voluntary act and deed of said Corporation.

In Witness Whereof, I hereunto set my hand and official seal.

	 	 	 	 	 
	 	——————————

   Notary

 	 
	 	 	 
	 	 	 
	 	 	 
	 

33

 

EXHIBIT A

The Land

 

 

Plant Site/Mortgage

EXHIBIT A

Part I

Property Description

TRACT 1:

Lots Nos. One (1) to Sixteen (16), inclusive, in Block Eighty (80), all in Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the office of the County Clerk of Galveston County, Texas.

TRACT 2:

Lots Thirteen (13) and Fourteen (14), in Block Eight (8), of Texas City First Division, a
subdivision in Galveston County, Texas, according to the map or plat thereof, recorded in Volume
113, Page 26, in the office of the County Clerk of Galveston County, Texas.

TRACT 3:

Lots Three (3) and Four (4), in Block Eighty-one (81) of Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the office
of the County Clerk of Galveston County, Texas.

TRACT 4:

Lots 3 and 4, in Block 79 of Texas City First Division in Galveston County, Texas, according to the
map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 5:

Lots Thirteen (13) and Fourteen (14), in Block Forty-one (41) of Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the office of the County Clerk of Galveston County, Texas.

TRACT 6:

Lots 15 and 16, in Block 41 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

 

 

TRACT 7:

Lots Six (6) and Seven (7), in Block 42 of Texas City First Division, a subdivision in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the office
of the County Clerk of Galveston County, Texas.

TRACT 8:

Lot Eight (8), in Block Forty-two (42) of Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County
Clerk of Galveston County, Texas.

TRACT 9:

Parcel 1:

The South 62-1/2 feet of Lots 1 and 2, in Block 36 of Texas City First Division, in Galveston
County, Texas, according to the map of said Texas City First Division recorded in Volume 113, Page
26, in the Office of the County Clerk of Galveston County, Texas.

Parcel 2:

The North 1/2 of Lots 1 and 2, in Block 36 of Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County
Clerk of Galveston County, Texas.

TRACT 10:

Lots 3 and 4, in Block 36 of Texas City First Division, in Galveston County, Texas, according to
the map of said Texas City First Division of record in Volume 113, Page 26, of the Deed Records in
the office of the County Clerk of Galveston County, Texas.

TRACT 11:

Lot 5, in Block 36 of Texas City First Division, in Galveston County, Texas, according to the map
of said Texas City First Division, recorded in Volume 113, Page 26, of the records in the office of
the County Clerk of Galveston County, Texas.

TRACT 12:

Lot 6, in Block 36 of Texas City First Division, in Galveston County, Texas, according to the map
of said Texas City First Division recorded in Volume 113, Page 26, of the records in the office of
the County Clerk of Galveston County, Texas.

-2-

 

TRACT 13:

Lots 7 and 8, in Block 36 of Texas City First Division, in Galveston County, Texas, according to
the map of said Texas City First Division recorded in Volume 113, Page 26, of the records in the
office of the County Clerk of Galveston County, Texas.

TRACT 14:

Lots 9, 10 and 11, in Block 36 of Texas City First Division according to the map of said Texas City
First Division recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 15:

An undivided 111/280 interest in Lot 12, Block 36 of Texas City First Division, in Galveston
County, Texas, according to the map thereof recorded in Volume 113, Page 26, in the office of the
County Clerk of Galveston County, Texas; being the same interest acquired in deed dated November
26, 1962, from Lillie Mae Rice Jameson et al., to Monsanto Chemical Company.

TRACT 16:

Lots 13 and 14, in Block 36, of Texas City First Division, in Galveston County, Texas, according to
the map of said Texas City First Division recorded in Volume 113, Page 26, in the office of the
County Clerk of Galveston County, Texas.

TRACT 17:

Lots 15 and 16, in Block 36 of Texas City First Division, in Galveston County, Texas, according to
the map of said Texas City First Division of record in Volume 113, Page 26, of the records in the
office of the County Clerk of Galveston County, Texas.

TRACT 18:

Lot 11, in Block 11 of Texas City First Division, in Galveston County, Texas, according to the map
of said division of record in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 19:

Lots 13 and 14, in Block 35 of Texas City First Division, in Galveston County, Texas, according to
the map thereof recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

-3-

 

TRACT 20:

Lots 11 and 12, in Block 35 of Texas City First Division, in Galveston County, Texas, according to
the map thereof recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 21:

Lots 8, 9 and 10, in Block 35 of Texas City First Division, in Galveston County, Texas, according
to the map thereof recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 22:

Lots 3 and 4, in Block 35 of Texas City First Division, in Galveston County, Texas, according to
map of Texas City First Division, recorded in Volume 113, Page 26, in the office of the County
Clerk of Galveston County, Texas.

TRACT 23:

Lots 5, 6 and 7, in Block 35 of Texas City First Division, in Galveston County, Texas, according to
the map thereof recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 24:

Lots Nine (9) and Ten (10) in Block Thirty-four (34) and Lots Seven (7) and Eight (8), in Block
Forty-one (41) of Texas City First Division, in Galveston County, Texas, according to the map or
plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 25:

Lots Three (3), Four (4) and Five (5), in Block Thirty-four (34) of Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the office of the County Clerk of Galveston County, Texas.

TRACT 26:

Lots One (1) and Two (2), in Block Thirty-four (34) of Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the office
of the County Clerk of Galveston County, Texas.

-4-

 

TRACT 27:

Lots Thirteen (13) and Fourteen (14), in Block Seventeen (17) of Texas City First Division, a
subdivision in Galveston County, Texas, according to the map or plat thereof, recorded in Volume
113, Page 26, in the office of the County Clerk of Galveston County, Texas.

TRACT 28:

Lot 12, Block 10 of Texas City First Division, in Galveston County, Texas, according to the map or
plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 29:

Lot Eleven (11), in Block Seventeen (17), and Lots Thirteen (13), Fourteen (14), Fifteen (15) and
Sixteen (16), in Block Thirty-two (32) of Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County
Clerk of Galveston County, Texas,

TRACT 30:

Lots Fifteen (15) and Sixteen (16), in Block 16, of Texas City First Division, an addition in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the office of the County Clerk of Galveston County, Texas.

TRACT 31:

Lot Fourteen (14), in Block Sixteen (16) of Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County
Clerk of Galveston County, Texas.

TRACT 32:

Lot Eleven (11), in Block Sixteen (16) of Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County
Clerk of Galveston County, Texas.

TRACT 33:

Lots Six (6) and Seven (7), in Block 15, Texas City First Division, Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County
Clerk of Galveston County, Texas.

-5-

 

TRACT 34:

Lots One (1), Two (2) and Three (3), in Block Fifteen (15) of Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the office of the County Clerk of Galveston County, Texas.

TRACT 35:

Lots 15 and 16, in Block 14, of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 36:

Lots 13 and 14, in Block 14, of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 37:

Lots 11 and 12, in Block 14 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 38:

Lot 10, in Block 14 of Texas City First Division in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 39:

Lots 7, 8 and 9, in Block 14 of Texas City First Division in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 40:

Lots 5 and 6, in Block 14 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

-6-

 

TRACT 41:

The South 62 feet of Lots 1 and 2, in Block 14 of Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the
County Clerk of Galveston County, Texas.

TRACT 42:

Lots 15 and 16, in Block 13 of Texas City First Division in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 43:

Lot 14, in Block 13 of Texas City First Division in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 44:

Lot 13, Block 13 of Texas City First Division in Galveston County, Texas, according to the map or
plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 45:

Lot 12, in Block 13 of Texas City First Division, in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 46:

Lot 11, in Block 13 of Texas City First Division, in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 47:

Lots 8, 9 and 10, in Block 13 of Texas City First Division, in Galveston County, Texas, according
to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

-7-

 

TRACT 48:

Lots 3, 4, 5, 6 and 7, in Block 13 of Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County
Clerk of Galveston County, Texas.

TRACT 49:

Lots 1 and 2, in Block 13 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas

TRACT 50:

Lots 14, 15, and 16, in Block 12 of Texas City First Division in Galveston County, Texas, according
to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas, being the same property heretofore conveyed by Augusta Annie Thompson to
John Mitchell by deed dated February 27, 1940, and recorded in Volume 599, Page 569, of the Deed
Records of Galveston County, Texas.

TRACT 51:

Lots 10 and 11, in Block 12 of Texas City First Division in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 52:

Lots 6 and 7, in Block 12 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 53:

Lots 8 and 9, in Block 12 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 54:

Lots 3, 4 and 5, in Block 12 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

-8-

 

TRACT 55:

Lot 14, in Block 11 of Texas City First Division, in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 56:

Lots 12 and 13, in Block 11 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 57:

Lots 9 and 10, in Block 11 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 58:

Lots 7 and 8, in Block 11 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 59:

Lots 5 and 6, in Block 11 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 60:

Lot 4, in Block 11 of Texas City First Division, in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 61:

Lot 3, in Block 11 of Texas City First Division, in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

-9-

 

TRACT 62:

Lots 1 and 2, in Block 11 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 63:

Lots Nos. 13, 14, 15 and 16, in Block 10, and all of Lots 15 and 16, Block 11, of Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the office of the County Clerk of Galveston County, Texas.

TRACT 64:

Lot 11, in Block 10 of Texas City First Division, in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of Galveston
County, Texas.

TRACT 65:

Lots 9 and 10 in Block 10 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 66:

Lots 7 and 8, in Block 10 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 67:

Lots 5 and 6, in Block 10 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 68:

Lots 1 and 2, in Block 10 of Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

-10-

 

TRACT 69:

All that certain 2.388 acres of land out of the H.B. Wells Survey, A-205 and the Norman Hurd
Survey, A-77, Galveston County, Texas, said tract subject to that certain easement dated November
30, 1932, from Texas City Terminal Railway Company to the City of Texas City, Texas, filed at
Volume 485, Page 180, Galveston County Deed Records;

BEGINNING at a set 5/8 inch iron rod located in the East right-of-way line of Bay Street
(100’ wide) at its intersection with the extended South right-of-way line of Third Avenue
North (100’ wide);

THENCE S 89 deg. 33 min. 10 sec. W, 59.00 feet, along the extended South line of said Third Avenue
North to a point for corner;

THENCE S 00 deg. 26 min. 50 sec. E, 1,762.63 feet, along a line Easterly of, parallel with and 41
feet perpendicular distance from the West line of Bay Street according to the plat of Texas City
First Addition according to the plat thereof filed at Volume 254A, Page 28, Galveston County Deed
Records, to a point for corner;

THENCE N 89 deg. 36 min. 40 sec. E, 59.00 feet along the South line of said Texas City First
Addition, to a set 5/8 inch iron rod for corner;

THENCE N 00 deg. 26 min. 50 sec. W, 1,762.69 feet, to the POINT OF BEGINNING and containing 2.388
acres of land more or less.

TRACT 70:

Lots 3 and 4, Block 10 of Texas City First Division, in Galveston County, Texas, according to the
map or plat thereof, recorded in Volume 113, Page 26 in the office of the County Clerk of Galveston
County, Texas.

TRACT 71:

Lots 1 and 2, Block 12 of Texas City First Division, in Galveston County, Texas according to the
map or plat thereof, recorded in Volume 113, Page 26, in the office of the County Clerk of
Galveston County, Texas.

TRACT 72:

Lots 11, 12, 13, 14, 15 and 16, Block 34, all in Texas City First Division, Galveston County,
Texas, according to the map or plat thereof recorded in Volume 113, Page 26, in the office of the
County Clerk of Galveston County, Texas.

-11-

 

TRACT 73:

Lots 3, 4, 5, 11 and 12, Block 41, of Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the County
Clerk of Galveston County, Texas.

TRACT 74 (Easement):

Coastal public lands and the Easement No. CE-82-051, being shown on the drawing labeled “Plan of
Docks and Channels” attached to instrument dated January 17, 1983, filed for record in the office
of the County Clerk of Galveston County, Texas, under County Clerk’s File No. 8302396 and as
assigned to Sterling Chemicals, Inc. pursuant to that certain Assignment of Lease and Easement from
Monsanto Company dated August 1, 1986 and recorded under Clerk’s File No. 8628664 in the Official
Public Records of Real Property of Galveston County, Texas.

TRACT 75 (Leasehold):

Lease dated September 1, 1974, by and between Texas City Terminal Railway Company, as lessor, and
Monsanto Company, a Corporation, as lessee, as assigned to Sterling Chemicals, Inc. pursuant to
that certain Assignment of Lease and Easement from Monsanto Company dated August 1, 1986 and
recorded under Clerk’s File No. 8628664 in the Official Public Records of Real Property of
Galveston County, Texas covering the land described as follows:

All that certain 3.3175 acres for ground lease out of the John Grant Survey, A-72, Galveston
County, Texas, and being more particularly described as follows:

COMMENCING at a set 5/8 inch iron rod marking the Southeast corner of that certain 22.71 acres of
land described in a deed dated August 19, 1969, from Texas City Terminal Railway Company to
Monsanto Company filed at Volume 2051, Page 654, Galveston County Deed Records;

THENCE S 89 deg. 05 min. 40 sec. W, 117.91 feet to the POINT OF BEGINNING of the
herein-described lease site;

THENCE along the South and West line of said 22.71 acre tract the following five (5) courses and
distances:

S 89 deg. 05 min. 40 sec. W, 507.11 feet to a set 5/8 inch iron rod for corner;

N 00 deg. 45 min. 50 sec. W, 250.18 feet to a 5/8 inch iron rod for angle point;

N 32 deg. 28 min. 30 sec. W, 25.00 feet to a set 5/8 inch iron rod for corner;

S 57 deg. 31 min. 30 sec. W, 125.64 feet to a set 5/8 inch iron rod being a point on a curve having
a central angle of 13 deg. 53 min. 35 sec., a radius of 591.30 feet, the center of said curve being
located on a radial line bearing N 32 deg. 28 min. 30 sec. W, from said point;

-12-

 

Southwesterly from an arc distance of 143.38 feet to a point for corner;

THENCE S 00 deg. 45 min. 50 sec. E, 276.11 feet to a point for corner;

THENCE N 89 deg. 05 min. 40 sec. E, 610.00 feet to an angle point;

THENCE N 63 deg. 09 min. 44 sec. E, 163.71 feet to a point for corner;

THENCE N 00 deg. 48 min. 10 sec. W, 58.40 feet to the POINT OF BEGINNING and containing 3.3175
acres for ground lease, more or less, SAVE AND EXCEPT that certain tract containing 0.0871 acres
described in Tract 87 herein.

TRACT 76 (Easement):

Parcel 1:

The location of the easement herein is described by metes and bounds as follows:

A tract of land situated in the Norman Hurd and Sylvester Bowen Surveys more particularly described
as follows:

BEGINNING in the West line 34 feet North of the Southwest corner of that certain tract of
land of 27.99 acres lying within the Norman Hurd and Sylvester Bowen Surveys in Galveston County,
Texas, and described in that certain deed from the Atlantic Pipeline Company to Republic Oil
Refining Company dated January 1, 1950, recorded in Volume 833, Page 686, of the Deed Records of
Galveston County, Texas, and that certain deed from Republic Oil Refining Company to Plymouth Oil
Company, dated April 1, 1957, recorded in Volume 1201, Pages 638-643, inclusive of the Deed Records
of Galveston County, Texas, to which deeds reference is made, the South line of which is 748.5 feet
North of the South line of the Sylvester Bowen Survey and lying between the land now owned by the
Gillock Chemicals Company, a wholly owned subsidiary of Amoco Chemicals Corporation on the South
and the right-of-way for Fourth Avenue South in the City of Texas City on the north, said point
being 50 feet east of the centerline of the railroad tracts of Texas City Terminal Railway Company
parallel to Tenth Street South in the City of Texas City;

THENCE N. 22 deg. 05 min. E, a distance of 37 feet;

THENCE N 0 deg. 25 min. W, a distance of 482 feet;

THENCE N 89 deg. 35 min. E, a distance of 506 feet;

THENCE N 57 deg. 00 min. E, a distance of 170 feet;

-13-

 

THENCE N 89 deg. 35 min. E, a distance of 1199 feet to intersect the westerly line of the
right-of-way of Sixth Street South of the City of Texas City which is also designated as State
Highway Number 146.

Parcel 2:

A certain tract or parcel of land situated in the John Grant and Sylvester Bowen Surveys in the
City of Texas City, Galveston County, Texas, described as follows:

BEGINNING in the west line of 73.5 feet north of the southwest corner of that certain tract of land
100 feet in width (north and south) described by reference in Paragraph Numbered 10 of that certain
deed from Mainland Company to Terminal Industrial Land Company dated September 22, 1926, recorded
in Book 391, Pages 527 to 538, of the Deed Records of Galveston County to which deed reference is
made, the north line of which is the projection westerly of the south line of Kohfeldt’s First
Addition to Texas City, Texas, in accordance with the recorded map of said addition and lying
between the land now owned by American Oil Company on the south and E. M. Stone on the north
respectively, said point being 17.5 feet south of the center line of existing railroad tract of
Texas City Terminal Railway Company;

THENCE from said beginning point N 89 deg. 55 min. E, a distance of 2 feet;

THENCE S 71 deg. 28 min. E, a distance of 152 feet, said point being 67 feet south of the
aforementioned tract;

THENCE N 89 deg. 49 min. E, a distance of 569 feet to the west line of that certain 100 foot wide
strip of land lying between land now owned by Terminal Industrial Land Company on the north and
land owned by American Oil Company on the south side thereof, a length of 723 feet or 43.82 rods in
the John Grant Survey;

ALSO BEGINNING in the east line of a 60 foot road known as Tenth Street, with east line of
Tenth Street being common with the west line of a tract of land owned by Terminal Industrial Land
Company, at a point which is 114 feet north of the south line of said Terminal Industrial Land
Company tract of land;

THENCE N 89 deg. 37 min. E, a distance of 110 feet to intersect the west line of the 100.1 foot
wide strip of land owned by Texas City Terminal Railway Company, being 110 feet or 6.67 rods in
Sylvester Bowen Survey.

TRACT 77 (Easement):

Parcel 1

A certain tract of land in the John Grant Survey and Sylvester Bowen Survey in Galveston County,
Texas, respectively. The one 18 inch water line herein referred to is to be situated as shown on
Monsanto Chemical Company Drawing No. D-139-30, dated July 11, 1951, consisting of 2 sheets,
entering Republic’s North Tank Farm at a point on the east line of Tenth Street approximately 155

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feet south of the northwest corner of the portion of Republic Oil Refining Company’s property which
fronts on the east line of Tenth Street, and proceeding in an easterly direction approximately 110
feet to the west line of the Texas City Terminal Railway Company right-of-way, where said line
leaves the property of Republic Oil Refining Company;

THENCE reentering Republic Oil Refining Company property known as Atlantic Tract at approximately
50 feet north of the southwest corner of said property as shown on Monsanto Chemical Company Map
No. D-193-30 dated July 11, 1951;

THENCE proceeding north parallel to and 4 feet from the west property line for a distance of 500
feet;

THENCE proceeding east 541 feet;

THENCE North 67 deg. 30 min. East 100 feet;

THENCE east 30 feet south of the east portion of the north line of said tract 1255 feet to the east
line of said tract, leaving said tract at a point 30 feet south of the northeast corner of said
Atlantic Pipe Line Company Tract; known as line No. 11.

Parcel 2:

A tract of land situated in the John Grant and Sylvester Bowen Surveys in Galveston County, Texas,
said route being more particularly described as follows:

BEGINNING at a point in that certain 100 foot wide tract of land lying between property of
Terminal Industrial Land Company and Kohfeldt’s First Addition to Texas City, Texas, on the north
and Republic Oil Refining Company on the south, said point being approximately 18 feet west and 78
feet south of the southwest corner of Kohfeldt’s First Addition to Texas City, Texas;

THENCE east a distance of approximately 1572 feet to the west line of a 60 foot north and south
country road;

THENCE continuing east across said country road and property owned by Republic Oil Refining Company
to the west right-of-way property of Texas City Terminal Railway Company;

THENCE east on said Texas City Terminal Railway Company right-of-way a distance of 80 feet;

THENCE northerly on said right-of-way a distance of 722 feet;

THENCE northeasterly with angle of 22 deg. 30 min. right a distance of 50 feet to intersection in
the east right-of-way line of aforesaid right of way, all being in the John Grant and Sylvester
Bowen Surveys in Galveston County, Texas and known as Line No. 11.

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TRACT 78 (Easement):

That certain tract or parcel of land, lying and being situated in the John Grant Survey in
Galveston County, Texas, as more specifically identified and described below:

BEGINNING at a point in the West line of that certain 100-foot-wide tract of land owned by Texas
City Terminal Railway Company being in the John Grant Survey and lying between the properties of
Terminal Industrial Land Company and Stone on the North and Pan American Refining Corporation and
Republic Oil Refining Company on the South, which point is approximately 56 feet South of the
Northwest corner of said tract and 32 feet South of the centerline of the railway spur tract as now
located upon and over said tract of land;

THENCE Easterly, parallel to and 32 feet perpendicularly distance southerly from the centerline of
said spur track a distance of 3117 feet;

THENCE right on angle of 12 deg. 04 min., a distance of 119 feet;

THENCE left on angle of 12 deg. 04 min., a distance of 136 feet to junction with an 8-inch pipe
line, for transportation of water only, bearing South to Sid Richardson Refining Company and a
proposed 18-inch pipe line, for transportation of water only, bearing Easterly to Monsanto Chemical
Company, all being in the John Grant Survey known as Line No. 19.

TRACT 79 (Easement):

A four inch (4”) pipeline and a six inch (6”) pipeline described in Exhibits A, B, C, D and E,
attached to instrument dated January 28, 1982 to Monsanto Company filed for record in the office of
the County Clerk of Galveston County, Texas, under County Clerk’s File No. 8211566, known as Line
Nos. 20 and 21.

TRACT 80 (Easement):

All that certain tract of land situated in the John Grant Survey, A-72, more particularly described
as follows:

BEGINNING at a point in the Southerly line of a 15.91 acre tract of land conveyed by Texas City
Terminal Railway Company to Monsanto Chemical Company by deed dated October 2, 1951, said point
being North 60 deg. 53 min. 20 sec. East, a distance of 128.78 feet from an iron rod marking a
point described in said deed as being located such that Monsanto Tank bears North 61 deg. 38 min.
10 sec. East, and Terminal Tank bears South 61 deg. 07 min. 50 sec. East;

THENCE South 28 deg. 58 min. 40 sec. East, a distance of 120.5 feet to an angle point at pipeline
Station 1 + 20.5;

THENCE South 51 deg. 43 min. 40 sec. East, a distance of approximately 65 feet to a point for
curve;

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THENCE with the arc of a curve to the right, the radius of which is approximately 75 feet, the
central angle is 45 deg. 25 min., a distance of 58 feet to a point of tangency;

THENCE South 06 deg. 18 min. 40 sec. East, a distance of 138 feet to an angle point at pipeline
Station 3 + 81.3;

THENCE South 34 deg. 16 min. 20 sec. West, a distance of 128.3 feet to an angle point at pipeline
Station 5 + 09.6, said point being 15 feet Southerly of, measured perpendicular to, the centerline
of Tract ICC#32 (Old Shop Lead), 31.2 feet North of the face of Terminal’s General Office Building,
and 35 feet West of the Northeast corner of said office building;

THENCE Westerly generally parallel to Tract ICC No. 32, a distance of 458.6 feet to pipeline
Station 9 + 68.2;

THENCE Southerly a distance of 56.6 feet to pipeline Station 10 + 24.8;

THENCE Easterly a distance of 14.9 feet to pipeline Station 10 + 39.7 and the end of this easement,
known as Line Nos. 24 and 26.

TRACT 82 (Easement):

All that certain tract of land situated in the George Preacher Survey in Galveston County, Texas,
described as follows:

COMMENCING at the Northwest corner of a 15.91 acre tract purchased by the Monsanto Company on the
2nd day of October, 1951;

THENCE South 00 deg. 23 min. 20 sec. East, along the West line of said 15.91 acre tract a distance
of 219 feet to a point of curvature of a curve to the left, said curve having a radius of 308 feet;

THENCE along the arc of said curve a distance of 161.92 feet to a point in the Southwesterly line
of said 15.91 acre tract and being the POINT OF BEGINNING;

THENCE South 19 deg. 35 min. 20 sec. West, a distance of 14 feet to a point for corner;

THENCE South 48 deg. 14 min. 20 sec. West, a distance of 555 feet to a point for corner;

THENCE South 43 deg. 49 min. 20 sec. West, a distance of 104 feet to a point for corner;

THENCE South 00 deg. 00 min. 40 sec. East, a distance of 207 feet to a point for corner

THENCE South 56 deg. 59 min. 20 sec. West, a distance of 250 feet to a point for corner;

THENCE South 52 deg. 44 min. 20 sec. West, a distance of 90 feet to a point for corner;

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THENCE South 57 deg. 07 min. 20 sec, West, a distance of 286 feet to a point for corner;

THENCE South 52 deg. 52 min. 20 sec. West, a distance of 44 feet to a point for corner;

THENCE South 16 deg. 37 min. 40 sec. East, a distance of 98 feet to the point of terminus for this
easement, said point of terminus being the intersection point with an existing 4-inch line, known
as Line No. 28.

TRACT 83 (Easement):

A tract in the Norman Hurd Survey, A-77, and the Sylvester Bowen Survey A-24, Galveston County,
Texas, a centerline course described as follows:

BEGINNING at the West flange of a 6-inch valve located at Station 36 + 62.3 as shown on the drawing
dated June 29, 1976, marked “The American Oil Company Drawing B — Sketch — 76- 170”, duplicate
copies of which have been initiated, by the signatory officers of the parties hereof, hereinafter
called “Sketch 76-170”;

THENCE on a course N 89 deg. 36 min. 40 sec. E, for a distance of 1315.30 feet to a point;

THENCE left 90 deg. for a distance of 548.4 feet to a point;

THENCE right 90 deg. for a distance of 1161.95 feet to a point;

THENCE left 90 deg. for a distance of 70.6 feet to a point;

THENCE onto the public street known as Second Avenue on a course North 00 deg. 23 min. 20 sec.
West, for a distance of 3 feet to a point;

THENCE right 90 deg. along Second Avenue South for a distance of 178.75 feet to the centerline of
Bay Street and Monsanto Company property line;

THENCE N 89 deg. 36 min. 40 sec. E, for a distance of 56 feet to a point;

THENCE right 45 deg. for a distance of 41.01 feet to a point;

THENCE left 45 deg. for a distance of 192.34 feet to a point;

THENCE left 18 deg. for a distance of 40.13 feet to a point;

THENCE right 18 deg. for a distance of 42.75 feet to a point;

THENCE left 90 deg. for a distance of 13.43 feet to a point;

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THENCE left 90 deg. for a distance of 4.5 feet to a point where it connects with a pipeline owned
by Magnolia Pipeline Company, known as Line No. 29.

TRACT 85:

Lots One (1) and Two (2), Block Eighty-one (81) of Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the office of the
County Clerk of Galveston County, Texas.

TRACT 86:

Abandoned portion of certain streets and alleys in Texas City, the following portions of streets
and alleys described as follows:

	(A)	 	North-south alley bordered on the West by Block 12, on the South and East by Monsanto plant
property lines, and on the North by the right-of-way of Second Avenue;

	(B)	 	First Street bordered on the West by Block 13, on the South by Monsanto Plant property line,
on the East by Block 12, and on the North by the right-of-way of Second Avenue South;

	(C)	 	Second Street bordered on the West by Block 36, on the South by Monsanto Plant property line,
on the East by Block 13, on the North by the right-of-way of Second Avenue South;

	(D)	 	East-west alley bordered on the South by Block 37, on the East by Monsanto plant property
line, on the North by Block 36, and on the West by the right-of-way of Third Street;

	(E)	 	Bay Street bordered on the West by Block 12, on the South by the Easterly extension or
prolongation of the South boundary line of Block 12, on the East by Monsanto Plant property
line, and on the North by the South right-of-way of Second Avenue South.

TRACT 86A:

All that certain 237.0539 acres out of the Norman Hurd Survey, A-77, Sylvester Bowen Survey, A-24,
John Grant Survey, A-72, and the James B. Wells Survey, A-205, Texas City, Galveston County, Texas;

BEGINNING at a set 5/8 inch iron rod located in the East right-of-way line of Bay Street (100’
wide), at its intersection with the extended South right-of-way line of Third Avenue North (100’
wide);

THENCE N 89 deg. 33 min. 10 sec. E, 1,967.90 feet, to a set 5/8 inch iron rod for corner;

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THENCE S 16 deg. 59 min. 23 sec. W, 2,541.25 feet along the U.S. Harbor line to an “X” set in
riprap for existing Texas City Hurricane Flood Wall;

THENCE S 00 deg. 13 min. 03 sec. E. 921.80 feet, continuing along said U.S. Harbor line to a point
for corner;

THENCE S 89 deg. 46 min. 57 sec. W, 859.00 feet to a point for corner;

THENCE N 00 deg. 13 min. 03 sec. W, 49.00 feet to a point for corner;

THENCE S 89 deg. 46 min. 57 sec. W, 609.87 feet along the Easterly South line of that certain 22.71
acres of land described in a deed dated August 19, 1969, from Texas City Terminal Railway Company
to Monsanto Company filed at Volume 2051, Page 654, Galveston County Deed Records, to a set 5/8
inch iron rod for corner;

THENCE S 00 deg. 50 min. 20 sec. W, 215.45 feet along the East line of said 22.71 acre tract being
Easterly of, parallel with and 25 feet perpendicular distance from the centerline of said flood
wall, to a set 5/8 inch iron rod for angle point;

THENCE S 20 deg. 52 min. 05 sec. E, 82.13 feet along the East line of said 22.71 acre tract
continuing along a line Easterly of, parallel with and 25 feet perpendicular distance from the
centerline of said flood wall, to a set 5/8 inch iron rod for corner;

THENCE S 89 deg. 46 min. 57 sec. W, 80.15 feet along an interior South line of said 22.71 acre
tract, to a set 5/8 inch iron rod for corner;

THENCE S 20 deg. 52 min. 05 sec. E, 209.65 feet, continuing along the East line of said 22.71 acre
tract, to a set 5/8 inch iron rod for angle point;

THENCE S 00 deg. 51 min. 00 sec. E, 389.07 feet along the East line of said 22.71 acre tract being
Westerly of, parallel with and 50 feet perpendicular distance from the centerline of said flood
wall, to a set 5/8 inch iron rod set for the Southerly Southeast corner of said 22.71 acre tract;

THENCE along the South and West lines of said 22.71 acre tract the following 7 courses and
distances:

S 89 deg. 05 min. 40 sec. W, 625.02 feet, to a set 5/8 inch iron rod for corner;

N 00 deg. 45 min. 50 sec. W, 250.18 feet to a set 5/8 inch iron rod for angle point;

N 32 deg. 28 min. 30 sec. W, 25.00 feet to a set 5/8 inch iron rod for corner;

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S 57 deg. 31 min. 30 sec. W, 125.64 feet to a set 5/8 inch iron rod being a point on a curve having
a central angle 23 deg. 58 min. 00 sec., a radius of 591.30 feet the center of said curve being
located on a radial line bearing N 32 deg. 28 min. 30 sec. W, from said point;

Southwesterly for an arc distance of 247.34 feet to a set 5/8 inch iron rod for corner;

S 81 deg. 29 min. 30 sec. W. 247.16 feet to a set 5/8 inch iron rod for corner;

N 05 deg. 19 min. 30 sec. W, 432.98 feet to a set 5/8 inch iron rod for corner;

THENCE S 60 deg. 53 min. 20 sec. W, 337.40 feet along the South line of that certain 15.91 acres of
land described in a deed dated October 2, 1951, from Texas City Terminal Railroad Company to
Monsanto Chemical Company filed at Volume 913, Page 467, Galveston County Deed Records, to a found
1 inch iron rod for angle point;

THENCE S 81 deg. 22 min. 40 sec. W, 755.00 feet continuing along the South line of said 15.91 acre
tract, to a found 1 inch iron rod being a point of a curve having a central angle of 98 deg. 10
min. 48 sec., a radius of 308.00 feet the center of said curve being located on a radial line
bearing N 08 deg. 40 min. 49 sec. W, from said point;

THENCE in a Northwesterly direction for an arc length of 527.78 feet to a found 3/4 inch iron pipe;

THENCE N 00 deg. 23 min. 20 sec. W, 1,143.15 feet along the East right-of-way line of Sixth Street
(100’ wide) to a set 5/8 inch iron rod for corner;

THENCE N 89 deg. 36 min. 40 sec. E, 472.66 feet along the South right-of-way line of Fourth Avenue
South (70’ wide) to a set 5/8 inch iron rod for corner;

THENCE N 00 deg. 23 min. 20 sec. W, passing at 70.00 feet the Southwest corner of Block 82, Texas
City First Addition according to the plat thereof filed at Volume 254A, Page 28, Galveston County
Deed Records, and continuing along the East right-of-way line of Fifth Street (75’ wide) for a
total distance of 195.00 feet to a 5/8 inch iron rod set for the Northwest corner of said Block 82;

THENCE N 89 deg. 36 min. 40 sec. E, 290.00 feet along the North line of said Block 82, to a 5/8
inch iron rod set for the Northwest corner of Lot 12 of said Block 82;

THENCE N 00 deg. 23 min. 20 sec. W, 145.00 feet to a 5/8 inch iron rod set for the Northwest corner
of Lot 16, Block 81 of said Texas City First Addition;

THENCE N 89 deg. 36 min. 40 sec. E, along the South right-of-way line of Third Avenue South (70’
wide), passing at 110.00 feet the Northeast corner of said Block 81, and continuing for a total
distance of 210.00 feet to a 5/8 inch iron rod set for the Northwest corner of Block 83 of said
Texas City First Addition;

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THENCE N 00 deg. 23 min. 20 sec. W, passing at 70.00 feet the Southwest corner of Block 40, of said
Texas City First Addition and continuing along the East right-of-way line of Fourth Street (100’
wide) for a total distance of 195.00 feet to a 5/8 inch iron rod set for the Northwest corner of
said Block 40.

THENCE N 89 deg. 36 min. 40 sec. E, 400.00 feet along the North line of said Block 40 to a 5/8 inch
iron rod set for the Northeast corner of said Block 40;

THENCE N 00 deg. 23 min. 20 sec. W, 5.00 feet to a set 5/8 inch iron rod for corner;

THENCE N 89 deg. 36 min. 40 sec. E, 70.00 feet along the North line of that portion of Third Street
abandoned by Ordinance dated December 21, 1977;

THENCE S 00 deg. 23 min. 20 sec. E, 5.00 feet to a set 5/8 inch iron rod;

THENCE N 89 deg. 36 min. 40 sec. E, 50.80 feet to a point marking the Northeast corner of said
Block 37;

THENCE N 00 deg. 23 min. 20 sec. W, 78.40 feet along the Southerly East line of said Texas City
First Addition, to a set 5/8 inch iron rod for corner;

THENCE N 89 deg. 36 min. 40 sec. E, 1,405.01 feet along the South line of Blocks 36, 13 and 12, of
said Texas City First Addition, to a set 5/8 inch iron rod for corner;

THENCE N 00 deg. 26 min. 50 sec. W, 1,867.69 feet along the East right-of-way line of Bay Street
(100’ wide) to the POINT OF BEGINNING and containing 237.0539 acres of land, more or less.

TRACT 87:

A survey of a 0.0871 acre tract of land out of the John Grant Survey A-72, Texas City, Galveston
County, Texas and being more particularly described by metes and bounds as follows:

COMMENCING at a point on the centerline of Texas Avenue, in the City of Texas City, said point
being 41.00 feet East of the West line of Bay Street;

THENCE South 00 deg. 23 min. 20 sec. East, a distance of 2,851.30 feet to a point for corner;

THENCE South 35 deg. 20 min. 20 sec. West, a distance of 315.35 feet to a point for corner, said
corner being the Southeast corner of Sterling Chemicals (formerly Monsanto Company);

THENCE South 89 deg. 05 min. 40 sec. West, along the South line of said Sterling Chemicals, same
being a common line of a 0.0804 acre tract (for a Corp of Engineer’s Easement) and a common line of
a 3.3175 acre tract (Tract “A”, Monsanto Company) a distance of 627.11 feet to a Brass Disc set for
corner and the POINT OF BEGINNING for the herein described tract;

THENCE South 54 deg. 14 min. 10 sec. West, at a distance of 25.60 feet pass a 5/8 inch iron rod set
for reference, in all a distance of 75.60 feet to a P.K. nail set for corner;

THENCE North 35 deg. 45 min. 50 sec. West, a distance of 50.00 feet to a P.K. nail set for corner;

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THENCE North 54 deg. 14 min. 10 sec. East, a distance of 50.00 feet to a 5/8 inch iron rod set for
corner;

THENCE North 89 deg. 05 min. 40 sec. East, a distance of 49.65 feet to Brass Disc set for corner on
the property line of said Sterling Chemicals, same being a common line with said 3.3175 acre tract;

THENCE South 00 deg. 45 min. 50 sec. East, a distance of 26.40 feet to the PLACE OF BEGINNING.

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EXHIBIT A

Part II

Property Description

TRACT 1

Lots One (1) and (2), both in Block Five (5), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

TRACT 2

Lots Three (3) and Four (4), both in Block Five (5), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 3

Lots Five (5) and Six (6), both in Block Five (5), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

TRACT 4

Lot Seven (7), Block Five (5), Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

TRACT 5

Lots Eight (8) and Nine (9), both in Block Five (5), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 6

Lot Ten (10), Block Five (5), Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

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TRACT 7

Lots Twelve (12), Thirteen (13) and Fourteen (14), all in Block Five (5), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 8

Lots Fifteen (15) and Sixteen (16), both in Block Five (5), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 9

Lots One (1) and Two (2), both in Block Six (6), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

TRACT 10

Lots Three (3) and Four (4), both in Block Six (6), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

TRACT 11

Lots Five (5) and Six (6), both in Block Six (6), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

TRACT 12

Lots Ten (10) and Eleven (11), both in Block Six (6), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 13

Lots One (1), Two (2) and Three (3), all in Block Seven (7), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

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TRACT 14

Lots Five (5) and Six (6), both in Block Seven (7), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

TRACT 15

Lots Seven (7) and Eight (8), both in Block Seven (7), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 16

Lots Nine (9) and Ten (10), both in Block Seven (7), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 17

Lot Eleven (11), Block Seven (7), Texas City First Division, in Galveston County, Texas, according
to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

TRACT 18

Lots Twelve (12) and Thirteen (13), both in Block Seven (7), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 19

Lot Fourteen (14), Block Seven (7), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 20

Lots Three (3) and Four (4), both in Block Eight (8), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

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TRACT 21

Lots Five (5) and Six (6), both in Block Eight (8), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

TRACT 22

Lots Seven (7) and Eight (8), both in Block Eight (8), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 23

Lots Nine (9) and Ten (10), both in Block Eight (8), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 24

Lots Eleven (11) and Twelve (12), both in Block Eight (8), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 25

Lot Fifteen (15), Block Eight (8), Texas City First Division, in Galveston County, Texas, according
to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

TRACT 26

Lot Sixteen (16), Block Eight (8), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 27

Lots One (1) and Two (2), both in Block Nine (9), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

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TRACT 28

Lots Five (5) and Six (6), both in Block Nine (9), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

TRACT 29

Lots Fifteen (15) and Sixteen (16), both in Block Nine (9), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 30

The North one-half ( 1/2 ) of Lots One (1) and Two (2), and all of Lots Three (3) and Four (4), all
in Block Fourteen (14), Texas City First Division, in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston
County, Texas.

TRACT 31

Lots Four (4) and Five (5) in Block Fifteen (15), Texas City First Division, in Galveston County,
Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the
County Clerk of Galveston County, Texas.

TRACT 32

Lots Eight (8), Nine (9) and Ten (10), all in Block Fifteen (15), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 33

Lot Eleven (11), Block Fifteen (15), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 34

Lot Twelve (12), Block Fifteen (15), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

-28-

 

TRACT 35

Lots Thirteen (13) and Fourteen (14), both in Block Fifteen (15), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 36

Lots Fifteen (15) and Sixteen (16), both in Block Fifteen (15), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 37

Lots Four (4) and Five (5), both in Block Sixteen (16), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 38

Lot Seven (7), and the West one-half ( 1/2 ) of Lot Eight (8), both in Block Sixteen (16), Texas City
First Division, in Galveston County, Texas, according to the map or plat thereof, recorded in
Volume 113, Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 39

The East one-half ( 1/2 ) of Lot Eight (8), and all of Lots Nine (9) and Ten (10), all in Block
Sixteen (16), Texas City First Division, in Galveston County, Texas, according to the map or plat
thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston County,
Texas.

TRACT 40

Lot Twelve (12), Block Sixteen (16), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 41

Lot Thirteen (13), Block Sixteen (16), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

-29-

 

TRACT 42

Lots One (1), Two (2), Three (3) and Four (4), all in Block Seventeen (17), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 43

Lots Five (5) and Six (6), both in Block Seventeen (17), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 44

Lots Seven (7), Eight (8), Nine (9) and Ten (10), all in Block Seventeen (17), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 45

Lot Twelve (12), Block Seventeen (17), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 46

Lots Five (5), Six (6), Seven (7), Eight (8), Nine (9) and Ten (10), all in Block Eighteen (18),
Texas City First Division, in Galveston County, Texas, according to the map or plat thereof,
recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston County, Texas.

[TRACTS 47 — 50 INTENTIONALLY DELETED]

TRACT 51

-30-

 

The South one-third (1/3) of Lots Thirteen (13), Fourteen (14), Fifteen (15), and Sixteen (16), all
in Block Thirty (30), Texas City First Division, in Galveston County, Texas, according to the map
or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston
County, Texas.

TRACT 52

Lots Five (5) and Six (6), both in Block Thirty-Two (32), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 53

Lots Seven (7) and Eight (8), both in Block Thirty-Two (32), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 54

Lots Nine (9) and Ten (10), both in Block Thirty-Two (32), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 55

Lots One (1), Two (2), Three (3) and Four (4), all in Block Thirty-Three (33), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 56

Lots Seven (7) and Eight (8), both in Block Thirty-Three (33), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 57

Lot Nine (9), Block Thirty-Three (33), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

-31-

 

TRACT 58

Lot Ten (10), Block Thirty-Three (33), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 59

Lot Eleven (11), Block Thirty-Three (33), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 60

Lots Thirteen (13) and Fourteen (14), both in Block Thirty-Three (33), Texas City First Division,
in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26,
in the Office of the County Clerk of Galveston County, Texas.

TRACT 61

Lots Fifteen (15) and Sixteen (16), both in Block Thirty-Three (33), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 62

Lots Six (6) and Seven (7), both in Block Thirty-Four (34), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 63

Lot Eight, Block Thirty-Four (34), Texas City First Division, in Galveston County, Texas, according
to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

TRACT 64

An undivided one-half ( 1/2 ) interest in lots One (1) and Two (2), both in Block Thirty-Five (35),
Texas City First Division, in Galveston County, Texas, according to the map or plat thereof,
recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston County, Texas.

-32-

 

TRACT 65

Lots Fifteen (15) and Sixteen (16), both in Block Thirty-Five (35), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 66

Lots One (1) and Two (2), both in Block Forty-One (41), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 67

Lot Six (6), Block Forty-One (41), Texas City First Division, in Galveston County, Texas, according
to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

TRACT 68

Lots Nine (9) and Ten (10), both in Block Forty-One (41), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 69

Lots One (1), Two (2), Three (3) and Four (4), all in Block Forty-Two (42), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 70

Lot Five (5), Block Forty-Two (42), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 71

Lot Nine (9), Block Forty-Two (42), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

-33-

 

TRACT 72

Lot Ten (10), Block Forty-Two (42), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 73

Lots Eleven (11) and Twelve (12), both in Block Forty-Two (42), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 74

Lots Fifteen (15) and Sixteen (16), both in Block Forty-Two (42), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 75

Lots One (1) and Two (2), both in Block Forty-Three (43), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 76

Lots Six (6), Seven (7) and Eight (8), all in Block Forty-Three (43), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 77

Lot Nine (9), Block Forty-Three (43), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 78

Lot Ten (10), Block Forty-Three (43), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

-34-

 

TRACT 79

Lots Fourteen (14), Fifteen (15) and Sixteen (16), all in Block Forty-Three (43), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 80

Lots One (1) and Two (2), both in Block Forty-Four (44), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 81

Lots Three (3) and Four (4), both in Block Forty-Four (44), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 82

Lot Five (5), Block Forty-Four (44), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 83

Lots Six (6), Fifteen (15) and Sixteen (16), all in Block Forty-Four (44), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 84

Lot Seven (7), Block Forty-Four (44), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 85

Lot Eight (8), Block Forty-Four (44), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

-35-

 

TRACT 86

Lot Nine (9), Block Forty-Four (44), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 87

Lots Ten (10) and Eleven (11), both in Block Forty-Four (44), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 88

Lots Eleven (11), Twelve (12), Thirteen (13) and Fourteen (14), all in Block Forty-Four (44), Texas
City First Division, in Galveston County, Texas, according to the map or plat thereof, recorded in
Volume 113, Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 89

Lots Thirteen (13), Fourteen (14), Fifteen (15) and Sixteen (16), all in Block Sixty-One (61),
Texas City First Division, in Galveston County, Texas, according to the map or plat thereof,
recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 90

Lots One (1) and Two (2), both in Block Sixty-Three (63), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 91

Lots Three (3) and Four (4), both in Block Sixty-Three (63), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 92

Lot Five (5), Block Sixty-Three (63), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

-36-

 

TRACT 93

Lots Six (6) and Seven (7), both in Block Sixty-Three (63), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 94

Lot Twelve (12), Block Sixty-Three (63), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 95

Lots Thirteen (13) and the North fifteen feet (15’) of Lot Fourteen (14), both in Block Sixty-Three
(63), Texas City First Division, in Galveston County, Texas, according to the map or plat thereof,
recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 96

The South ten feet (10’) of Lot Fourteen (14), and all of Lots Fifteen (15) and Sixteen (16), all
in Block Sixty-Three (63), Texas City First Division, in Galveston County, Texas, according to the
map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

TRACT 97

Lots One (1) and Two (2), both in Block Sixty-Four (64), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 98

Lots Five (5) and Six (6), both in Block Sixty-Four (64), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 99

An undivided one-half ( 1/2 ) interest in and to Lots Seven (7), Eight (8) and Nine (9), all in Block
Sixty-Four (64), Texas City First Division, in Galveston County, Texas, according to the map or
plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston
County, Texas.

-37-

 

TRACT 100

Lots Ten (10) and Eleven (11), both in Block Sixty-Four (64), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 101

Lot Twelve (12), Block Sixty-Four (64), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 102

Lots Thirteen (13) and Fourteen (14), both in Block Sixty-Four (64), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 103

Lots Fifteen (15) and Sixteen (16), both in Block Sixty-Four (64), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 104

Lots One (1), Two (2) and Three (3), all in Block Sixty-Five (65), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 105

Lot Four (4), Block Sixty-Five (65), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 106

Lots Five (5) and Six (6), both in Block Sixty-Five (65), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

-38-

 

TRACT 107

Lots Seven (7) and Eight (8), both in Block Sixty-Five (65), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 108

Lots Nine (9) and Ten (10), both in Block Sixty-Five (65), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 109

Lots Thirteen (13) and Fourteen (14), both in Block Sixty-Five (65), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 110

Lots Fifteen (15) and Sixteen (16), both in Block Sixty-Five (65), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 111

Lots One (1), Two (2) and Three (3), all in Block Sixty-Six (66), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 112

Lots Six (6), Seven (7) and Eight (8), all in Block Sixty-Six (66), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 113

Lots Nine (9) and Ten (10), both in Block Sixty-Six (66), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

-39-

 

TRACT 114

Lots Eleven (11) and Twelve (12), both in Block Sixty-Six (66), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 115

Lots Thirteen (13) and Fourteen (14), both in Block Sixty-Six (66), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 116

Lots Fifteen (15) and Sixteen (16), both in Block Sixty-Six (66), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 117

Lots One (1), Two (2) and Three (3), all in Block Sixty-Seven (67), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 118

Lots Six (6) and Seven (7), all in Block Sixty-Seven (67), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 119

Lots Eight (8) and Nine (9), both in Block Sixty-Seven (67), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 120

Lots Ten (10), Eleven (11) and Twelve (12), all in Block Sixty-Seven (67), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

-40-

 

TRACT 121

Lots Thirteen (13) and Fourteen (14), both in Block Sixty-Seven (67), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 122

Lots Fifteen (15) and Sixteen (16), both in Block Sixty-Seven (67), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 123

Lots One (1), Two (2), Three (3) and Four (4), all in Block Sixty-Eight (68), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 124

Lots Six (6) and Seven (7), both in Block Sixty-Eight (68), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 125

Lot Eight (8), Block Sixty-Eight (68), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 126

Lot Nine (9), Block Sixty-Eight (68), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 127

Lots Ten (10), Thirteen (13) and Fourteen (14), all in Block Sixty-Eight (68), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

-41-

 

TRACT 128

Lots Eleven (11) and Twelve (12), both in Block Sixty-Eight (68), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 129

Lots Fifteen (15) and Sixteen (16), both in Block Sixty-Eight (68), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 130

Lots Nine (9) and Ten (10), both in Block Sixty-Nine (69), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 131

Lots One (1) and Two (2), both in Block Seventy-Nine (79), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 132

Lots Five (5) and Six (6), both in Block Eighty-One (81), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 133

Lots Seven (7) and Eight (8), both in Block Eighty-One (81), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 134

Lots Nine (9), Ten (10) and Eleven (11), all in Block Eighty-One (81), Texas City First Division,
in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26,
in the Office of the County Clerk of Galveston County, Texas.

-42-

 

TRACT 135

Lots Nine (9), Ten (10) and Eleven (11), in Block Nine (9), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 136

Lots Three (3), Four (4) and Five (5), in Block Forty-Three (43), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

-43-

 

EXHIBIT A

Part III

Property Description

TRACT 1

Lot Eleven (11), Block Five (5), Texas City First Division, in Galveston County, Texas, according
to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

TRACT 2

Lots Seven (7), Eight (8) and Nine (9), all in Block Six (6), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 3

Lots Twelve (12) and Thirteen (13), and the South one-half ( 1/2 ) of Lot Fourteen (14), all in Block
Six (6), Texas City First Division, in Galveston County, Texas, according to the map or plat
thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston County,
Texas.

TRACT 4

Lots Three (3) and Four (4), both in Block Nine (9), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 5

Lot Seven (7), Block Nine (9), Texas City First Division, in Galveston County, Texas, according to
the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

TRACT 6

Lot Six (6), Block Sixteen (16), Texas City First Division, in Galveston County, Texas, according
to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County Clerk of
Galveston County, Texas.

-44-

 

TRACT 7

Lots Fifteen (15) and Sixteen (16), both in Block Seventeen (17), Texas City First Division, in
Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in
the Office of the County Clerk of Galveston County, Texas.

TRACT 8

Lot Four (4), in Block Twenty-Five (25), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 9

Lots Three (3) and Four (4), both in Block Thirty-Two (32), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 10

Lots Five (5) and Six (6), both in Block Thirty-Three (33), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 11

Lot Twelve (12), Block Thirty-Three (33), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 12

Lot Eleven (11), Block Forty-Three (43), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 13

Lot Twelve (12), Block Forty-Three (43), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

-45-

 

TRACT 14

Lot Thirteen (13), Block Forty-Three (43), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 15

Lots Eight (8), Nine (9), Ten (10) and Eleven (11), all in Block Sixty-Three (63), Texas City First
Division, in Galveston County, Texas, according to the map or plat thereof, recorded in Volume 113,
Page 26, in the Office of the County Clerk of Galveston County, Texas.

TRACT 16

Lot Eleven (11), in Block Sixty-Five (65), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 17

Lot Twelve (12), in Block Sixty-Five (65), Texas City First Division, in Galveston County, Texas,
according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office of the County
Clerk of Galveston County, Texas.

TRACT 18

Lots Four (4) and Five (5), both in Block Sixty-Six (66), Texas City First Division, in Galveston
County, Texas, according to the map or plat thereof, recorded in Volume 113, Page 26, in the Office
of the County Clerk of Galveston County, Texas.

TRACT 19

Any and all claims, if any, which Grantor may have, of adverse possession and use to Lot 5 in Block
79 of Texas City First Division, a subdivision in Galveston County, Texas according to the map or
plat thereof recorded in Volume 113, Page 26, in the Office of the County Clerk of Galveston
County, Texas.

TRACT 20

Miscellaneous:

(i) Line No. 17.

A six inch (6”) pipeline for the delivery of sludge for treatment from Monsanto’s “North 80” tract
but insofar and only insofar as said pipeline lies within the boundaries of the plant site.

-46-

 

(ii) Electric Power Line Right of Way dated April 20, 1971, to be effective from and after June 1,
1970, between Texas City Terminal Railway Company and Monsanto Company.

(iii) All rights and interests referred to or described in that certain Assignment of Lease, Right
of Way and Pipeline Easements and Bill of Sale from Monsanto Company to Sterling Chemicals, Inc.
dated as of August 1, 1986 recorded under Clerk’s File No. 8628666 in the Official Public Records
of Real Property of Galveston County, Texas.

-47-exv4w4

 

EXECUTION COPY 

EXHIBIT 4.4

NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE
COLLATERAL AGENT, FOR THE RATABLE BENEFIT OF SECURED PARTIES, PURSUANT TO THIS AGREEMENT AND THE
EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND THE OTHER SECURED PARTIES HEREUNDER
WITH RESPECT TO THE SECOND LIEN COLLATERAL (AS DEFINED IN THE INTERCREDITOR AGREEMENT DESCRIBED
BELOW), ARE SUBJECT TO THE PROVISIONS OF SUCH INTERCREDITOR AGREEMENT. IN THE EVENT OF ANY
CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT
WITH RESPECT TO THE SECOND LIEN COLLATERAL, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL
CONTROL. SEE SECTION 7.10.

SECURITY AGREEMENT

     THIS SECURITY AGREEMENT (as amended, supplemented, amended and restated or otherwise modified
from time to time, this “Agreement”), dated as of March 29, 2007, is made by STERLING
CHEMICALS, INC., a Delaware corporation (the “Company”), STERLING CHEMICALS ENERGY, INC., a
Delaware corporation (“Energy”), and each other Person (such capitalized term and all other
capitalized terms not otherwise defined herein shall have the meanings provided for or incorporated
by reference in Article I below) that may from time to time become, pursuant to the terms
of the Indenture, a party to this Agreement (each such Person and Energy individually a
“Guarantor” and, together with all such other Persons and Energy, collectively, the
“Guarantors” and, together with the Company, the “Grantors”), in favor of U. S.
BANK NATIONAL ASSOCIATION, as collateral agent for the Secured Parties (together with its
successors and assigns in such capacity, the “Collateral Agent”).

RECITALS:

     A. Pursuant to an Indenture, dated as of the date hereof (as amended, supplemented, amended
and restated or otherwise modified from time to time, the “Indenture”), among the Company,
Energy and U.S. Bank, as Collateral Agent and as trustee (in such capacity, the “Trustee”),
the Company has issued $150,000,000 of its 101/4% Senior Secured Notes due 2015 (together with any
additional notes and any exchange notes that may be issued by the Company from time to time
thereunder and any other 101/4% Senior Secured Notes due 2015 issued in replacement or substitution
therefor, the “Notes”).

     B. Pursuant to an Amended and Restated Revolving Credit Agreement, dated as of the date hereof
(as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”), among the Company, Energy, the various financial institutions as are,
or may from time to time become, parties thereto (the “Lenders”), and The CIT
Group/Business Credit, Inc, as administrative agent (the “Administrative Agent”), the
Lenders and the Issuer (as defined therein) have extended commitments to make credit extensions to
the Company and Energy.

 

 

     C. The Collateral Agent and the Administrative Agent have entered into that certain
Intercreditor Agreement, dated as of the date hereof (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Intercreditor Agreement”), which
agreement, among other things, sets forth, as between the Collateral Agent and the Administrative
Agent, the relative priority of their respective Liens on the Second Lien Collateral (as defined
therein) and their rights with respect thereto.

     D. Each Grantor desires to secure its Obligations under the Indenture, the Notes, the Note
Guarantees and each other Indenture Document to which it is a party (collectively, the “Secured
Obligations”) by granting to the Collateral Agent, for the benefit of the Secured Parties,
Liens on the Collateral as set forth herein.

     E. As a condition precedent to the issuance of the Notes by the Company under the Indenture,
each Grantor is required to execute and deliver this Agreement.

     F. Each Grantor has duly authorized the execution, delivery and performance of this Agreement.

     G. It is in the best interest of each Grantor to execute this Agreement inasmuch as such
Grantor will derive substantial direct and indirect benefits from the Notes issued from time to
time to by the Company pursuant to the Indenture.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and in order to induce (i) the Holders to make an investment in the Notes and
(ii) U.S. Bank to act as Trustee and Collateral Agent under the Indenture Documents in such
capacities, each Grantor jointly and severally agrees, for the benefit of each Secured Party, as
follows:

ARTICLE I

DEFINITIONS

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

     “Administrative Agent” is defined in recital B.

     “Agreement” is defined in the preamble.

     “CFC” means a controlled foreign corporation (as that term is defined in the Internal
Revenue Code of 1986, as amended).

     “Collateral” is defined in Section 2.1.

2

 

     “Collateral Agent” is defined in the preamble.

     “Company” is defined in the preamble.

     “Computer Hardware and Software Collateral” means:

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

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

     (c) all firmware associated therewith;

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

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

     “Control Agreement” means a control agreement, in form and substance reasonably
satisfactory to (a) if the Intercreditor Agreement is then outstanding at the time of the execution
of such control agreement, the First Lien Agent (as defined in the Intercreditor Agreement) and (b)
if the Intercreditor Agreement is not then outstanding, the Collateral Agent, which agreement is
executed and delivered by (i) the applicable Grantor, (ii) (A) if the Intercreditor Agreement is
then outstanding at the time of the execution of such control agreement, the First Lien Agent for
the benefit of the First Lien Secured Parties (as defined in the Intercreditor Agreement) and the
Collateral Agent for the benefit of the Secured Parties or (B) if the Intercreditor Agreement is
not then outstanding, the Collateral Agent for the benefit of the Secured Parties, and (iii) the
applicable (A) securities intermediary with respect to a Securities Account of such Grantor or (B)
bank with respect to a Deposit Account of such Grantor.

     “Copyright Collateral” means all copyrights of each Grantor, whether statutory or
common law, registered or unregistered, now or hereafter in force in the United States including
all of such Grantor’s right, title and interest in and to all copyrights registered in the United
States Copyright Office, and all applications for registration thereof, whether pending or in
preparation, all copyright licenses in the United States, the right to sue for past, present and
future infringements of any thereof, all rights corresponding thereto, all extensions and
renewals

3

 

of any thereof and all Proceeds of the foregoing, including licenses, royalties, income,
payments, claims, damages and proceeds of suit.

     “Credit Agreement’’ is defined in recital B.

     “Energy” is defined in the preamble.

     “Excluded Collateral” means, collectively:

     (a) the Capital Stock of any Subsidiary of a Grantor that is a CFC or an Unrestricted
Subsidiary;

     (b) assets subject to Permitted Liens described in clause (20) of the definition
thereof so long as the Indebtedness secured thereby otherwise prohibits any other Liens
thereon; and

     (c) any General Intangibles or other rights arising under any contract, instrument,
license or other document as to which the grant of a security interest would constitute a
violation of a valid and enforceable restriction (other than to the extent that any such
restriction would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409
of the Uniform Commercial Code of any relevant jurisdiction or any other applicable law or
principles of equity) on such grant in favor of the Person(s) (other than such Grantor)
obligated on such contract, instrument, license or other document, unless and until any
required consents shall have been obtained.

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

     “Grantors” is defined in the preamble.

     “Guarantor” and “Guarantors” are defined in the preamble.

     “Indenture” is defined in recital A.

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

     “Intercreditor Agreement” is defined in recital C.

     “Material Adverse Effect” means a material adverse effect on (a) the business,
condition (financial or otherwise), operations, performance or properties of the Company and its
Restricted
Subsidiaries taken as a whole, (b) the rights and remedies of any Secured Party under any

4

 

Indenture Document or (c) the ability of the Company or the Company and the other Grantors, taken
as a whole, to perform their Obligations under the Indenture Documents.

     “Lenders” is defined in recital B.

     “Notes” is defined in recital A.

     “Patent Collateral” means:

     (a) all letters patent and applications for letters patent in the United States,
including all patent applications in preparation for filing in the United States;

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

     (c) all patent licenses in the United States; and

     (d) all Proceeds of, and rights associated with, the foregoing (including license
royalties and Proceeds of infringement suits), the right to sue third parties for past,
present or future infringements of any patent or patent application, referred to in
clauses (a) or (b) above, and for breach or enforcement of any patent
license referred to in clause (c) above.

     “Receivable” means any right to payment for Goods sold, leased or licensed or for
services rendered, 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).

     “Secured Obligations” is defined in recital D.

     “Termination Date” means the earliest to occur of the date on which (a) all Secured
Obligations (other than any contingent indemnification or expense reimbursement Obligations that
are not then due and payable) have been paid in full in cash; (b) the Company exercises its legal
defeasance option or covenant defeasance option described in Section 8.01 of the Indenture; and (c)
the satisfaction and discharge of the Indenture occurs in accordance with Section 8.02 thereof.

     “Trademark Collateral” means:

     (a) all trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, certification marks, collective
marks, logos, other source of business identifiers, designs and General Intangibles of a
like nature (all of the foregoing items in this clause (a) being collectively called
a “Trademark”), now existing anywhere in the United States or hereafter adopted or
acquired in the United States, whether currently in use or not, all registrations and
recordings thereof and all applications in connection therewith, whether pending or in
preparation for filing, including registrations, recordings and applications in the

5

 

United States Patent and Trademark Office or in any office or agency of the United States of
America or any State;

     (b) all Trademark licenses in the United States;

     (c) all reissues, extensions or renewals of any of the items described in clauses
(a) and (b);

     (d) all of the goodwill of the business connected with the use of, and symbolized by
the items described in, clauses (a) through (c); and

     (e) all Proceeds of, and rights associated with, the foregoing, including any claim by
any Grantor against third parties for past, present or future infringement or dilution of
any Trademark, Trademark registration or Trademark license, including any Trademark,
Trademark registration or Trademark license referred to in clauses (a)
through (c) above, or for any injury to the goodwill associated with the use of any
such Trademark or for breach or enforcement of any such Trademark license.

     “Trade Secrets Collateral” means all common law and statutory trade secrets and all
other confidential or proprietary information and know-how used or obtained at any time for use in
the business of any Grantor (all of the foregoing being collectively called a “Trade
Secret”), whether or not such Trade Secret has been reduced to a writing or other tangible
form, including all documents and things embodying, incorporating or referring in any way to such
Trade Secret, all Trade Secret licenses, and including the right to sue for and to enjoin and to
collect damages for the actual or threatened misappropriation of any Trade Secret and for the
breach or enforcement of any such Trade Secret license.

     “Trustee” is defined in recital A.

     “U.C.C.” means the Uniform Commercial Code in effect in the State of New York, as the
same may be amended from time to time.

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

     SECTION 1.3. U.C.C. Definitions. Unless otherwise defined herein, the following
terms which are defined in the Uniform Commercial Code in effect in the State of New York on the
date hereof are used in this Agreement and each Schedule hereto as so defined: Account, Chattel
Paper, Commercial Tort Claim, Deposit Account, Document, Electronic Chattel Paper, Equipment,
General Intangible, Good, Instrument, Inventory, Investment Property, Letter-of-Credit Right,
Proceeds, Record, Supporting Obligation and Tangible Chattel Paper.

ARTICLE II

SECURITY INTEREST

6

 

     SECTION 2.1. Grant of Security. Each Grantor hereby assigns, pledges, hypothecates,
charges, delivers and transfers to the Collateral Agent, for its benefit and the benefit of each of
the Secured Parties, and hereby grants to the Collateral Agent, for its benefit and the benefit of
each of the Secured Parties, a continuing security interest in all of such Grantor’s right, title
and interest in and to the following, whether now owned or hereafter existing or acquired by such
Grantor (the “Collateral”):

     (a) all Accounts and all books, other Records and Proceeds with respect thereto;

     (b) all Chattel Paper (including without limitation all Tangible Chattel Paper and
Electronic Chattel Paper) and all books, other Records and Proceeds with respect thereto;

     (c) all Deposit Accounts (including all deposits and investments therein and all
earnings thereon), and all books, other Records and Proceeds with respect thereto;

     (d) all Documents and all books, other Records and Proceeds with respect thereto;

     (e) all General Intangibles and all books, other Records and Proceeds with respect
thereto;

     (f) all Inventory and all books, other Records and Proceeds with respect thereto;

     (g) all Goods and all books, other Records and Proceeds with respect thereto;

     (h) all Instruments and all books, other Records and Proceeds with respect thereto;

     (i) all Intellectual Property Collateral and all books, other Records and Proceeds with
respect thereto;

     (j) all Investment Property and all books, other Records and Proceeds with respect
thereto;

     (k) all Letter-of-Credit Rights and all books, other Records and Proceeds with respect
thereto;

     (l) all Equipment and all books, other Records and Proceeds with respect thereto;

     (m) all Receivables not otherwise described above and all books, other Records and
Proceeds with respect thereto; and

7

 

     (n) all Supporting Obligations and all books, other Records and Proceeds with respect
thereto.

Notwithstanding the foregoing, the “Collateral” shall not include any Excluded Collateral. Each
Grantor agrees to use commercially reasonable efforts to obtain any such required consent with
respect to any material item described in clause (c) of the definition of the term “Excluded
Collateral”.

     SECTION 2.2. Security for Secured Obligations. This Agreement secures the payment in
cash in full of all Secured Obligations.

     SECTION 2.3. Continuing Security Interest. This Agreement shall create a continuing
security interest in the Collateral and shall:

     (a) remain in full force and effect until the Termination Date;

     (b) be binding upon each Grantor, its successors, transferees and assigns; and

     (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to
the benefit of the Collateral Agent and each other Secured Party.

Without limiting the generality of the foregoing clause (c), any Holder may assign or
otherwise transfer (in whole or in part) any Note held by it to any other Person, and such other
Person shall thereupon become vested with all the rights and benefits in respect thereof granted to
such Holder under any Indenture Document or otherwise, subject, however, to any contrary provisions
in such assignment or transfer of the Indenture. Upon the sale, transfer or other disposition of
Collateral in accordance with the Indenture, the security interests granted herein shall
automatically terminate with respect to such Collateral, but not the Proceeds thereof.
Additionally, upon the designation of any Restricted Subsidiary as an Unrestricted Subsidiary in
accordance with Section 4.23 of the Indenture and the Collateral Agent’s receipt of a
written request from the Company for the release of the Capital Stock issued by such Unrestricted
Subsidiary from the Lien created hereunder, the Collateral Agent shall promptly release such Lien,
provided that no Default then exists and the Lien created hereunder encumbering all other
Collateral shall remain in full force and effect. Subject to the last sentence of this Section
2.3, this Agreement (other than the indemnification and expense reimbursement provisions set
forth in Section 6.3 and any other contingent indemnification or expense reimbursement
Obligations expressly provided for herein or in any other Indenture Document to survive the
Termination Date) and the security interest granted herein shall terminate and all rights to the
Collateral shall revert to each Grantor on the Termination Date. Upon any sale, transfer,
disposition or termination described in any of the three immediately preceding sentences, the
Collateral Agent will, at the applicable Grantor’s sole expense, execute and deliver to such
Grantor, without any representations, warranties or recourse, such documents as such Grantor may
reasonably request to evidence such termination, release or reassignment. Notwithstanding anything
to the contrary contained herein or in any other Indenture Document, each Grantor agrees that: (i)
to the extent that, after the Termination Date shall have occurred, any payment or any part thereof
in respect
of any Secured Obligation is subsequently invalidated, voided, declared to be fraudulent or

8

 

preferential, set aside, recovered, rescinded or is required to be retained by or repaid to a
trustee, receiver, or any other Person under any bankruptcy code, common law, or equitable cause,
then the Lien and security interest in the Collateral created hereunder shall be revived,
reinstated and continued in full force and effect, as if said payment had not been made; and (ii)
the Lien and security interest in the Collateral created hereunder shall not be released or
discharged by any payment to the Collateral Agent or any Secured Party from any source that is
thereafter paid, returned or refunded in whole or in part by reason of the assertion of a claim of
any kind relating thereto, including, but not limited to, any claim for breach of contract, breach
of warranty, preference, illegality, invalidity, or fraud asserted by any account debtor or by any
other Person.

     SECTION 2.4. Grantor Remains Liable. Anything herein to the contrary
notwithstanding:

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

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

     (c) neither the Collateral Agent nor any other Secured Party will have any obligation
or liability under any such contracts or agreements included in the Collateral by reason of
this Agreement, nor will the Collateral Agent or any other Secured Party be obligated to
perform any of the obligations or duties of any Grantor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder.

     SECTION 2.5. Security Interest Absolute. All rights of the Collateral Agent and the
security interests granted to the Collateral Agent hereunder, and all obligations of each Grantor
hereunder, shall be absolute and unconditional, irrespective of:

     (a) any lack of validity or enforceability of any Indenture Document;

     (b) the failure of any Secured Party

     (i) to assert any claim or demand or to enforce any right or remedy against
the Company, any Guarantor or any other Person under the provisions of any Indenture
Document or otherwise or

     (ii) to exercise any right or remedy against any guarantor of, or collateral
securing, any Secured Obligations;

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

9

 

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

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

     (f) any addition, exchange, release, surrender or non-perfection of any collateral
(including the Collateral) or any amendment to or waiver or release of or addition to or
consent to departure from any guaranty for any of the Secured Obligations; or

     (g) any other circumstances which might otherwise constitute a defense available to, or
a legal or equitable discharge of, the Company, any surety or any guarantor (including any
Guarantor).

     SECTION 2.6. Postponement of Subrogation, etc. Each Grantor hereby agrees that it
will not exercise any rights which it may acquire by reason of any payment made hereunder, whether
by way of subrogation, reimbursement or otherwise, until the Termination Date. Any amount paid to
any Grantor on account of any payment made hereunder prior to the Termination Date shall be held in
trust for the benefit of the Secured Parties and shall immediately be paid to the Collateral Agent
for the benefit of the Secured Parties and credited and applied against the Secured Obligations,
whether matured or unmatured, in accordance with the terms of the Indenture; provided,
however, that if:

     (a) such Grantor has made payment to the Collateral Agent for the benefit of the
Secured Parties of all or any part of the Secured Obligations; and

     (b) the Termination Date has occurred,

     each Secured Party agrees that, at the requesting Grantor’s request, the Collateral Agent, on
behalf of the Secured Parties, will execute and deliver to such Grantor appropriate documents
(without recourse and without representation or warranty) necessary to evidence the transfer by
subrogation to such Grantor of an interest in the Secured Obligations resulting from such payment
by such Grantor. In furtherance of the foregoing, prior to the Termination Date, each Grantor
shall refrain from taking any action or commencing any proceeding against the Company or any other
Grantor (or its successors or assigns, whether in connection with a
bankruptcy proceeding or otherwise) to recover any amounts in respect of payments made under this
Agreement to the Collateral Agent or any other Secured Party.

10

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     SECTION 3.1. Representations and Warranties. Each Grantor represents and warrants to
each Secured Party as set forth in this Article III and Schedule I hereto.

     SECTION 3.2. Location of Collateral, etc. All of the Equipment, Inventory and
Deposit Accounts of such Grantor are respectively located at the places specified in Item 3
of Schedule I hereto. None of the Equipment or Inventory has, within the four months preceding (a)
in the case of the Company or Energy, the date of this Agreement and (b) in the case of any other
Grantor, the date of the supplement pursuant to which it became a party hereto, if then owned by
such Grantor, been located at any place other than the places specified in Item 3 of
Schedule I hereto. The principal place of business and chief executive office of such Grantor and
the office where such Grantor keeps its Records concerning the Receivables, and all originals of
all Chattel Paper which evidence Receivables, are located at the address set forth in Item
3 of Schedule I hereto. Such Grantor has no trade names other than those specified in Item
1(d) of Schedule I hereto. During the four months preceding such date, such Grantor has not
been known by any legal name different from the one set forth on Item 1(a) of Schedule I
hereto, nor has such Grantor been the subject of any merger or other corporate reorganization,
except as set forth in Item 1(c) of Schedule I hereto. All Receivables evidenced by a
promissory note or other Instrument, negotiable document or Chattel Paper have been duly endorsed
and accompanied by duly executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to the Collateral Agent and delivered and pledged to the Collateral Agent
pursuant to Section 4.6. Such Grantor is not a party to any Federal, State or local
government contract except as set forth in Item 13 of Schedule I hereto.

     SECTION 3.3. Ownership, No Liens, etc. Such Grantor owns its Collateral free and
clear of any Lien, except for the security interest created by this Agreement and Permitted Liens.
No effective financing statement or other instrument similar in effect covering all or any part of
the Collateral is on file in any recording office, except such as may have been filed in favor of
the Collateral Agent relating to this Agreement or as have been filed in connection with Permitted
Liens.

     SECTION 3.4. Possession and Control. Such Grantor has exclusive possession and
control of its Equipment and Inventory except where the absence of possession and control results
from actions of such Grantor in the ordinary course of business.

     SECTION 3.5. Negotiable Documents, Instruments and Chattel Paper. Such Grantor has,
prior to or contemporaneously herewith, delivered to the Collateral Agent possession of all
originals of all negotiable documents, Instruments and Chattel Paper currently owned or held by
such Grantor (duly endorsed in blank, if requested by the Collateral Agent).

     SECTION 3.6. Intellectual Property Collateral. With respect to any Intellectual
Property Collateral owned by such Grantor the loss, impairment or infringement of which could
reasonably be expected to have a Material Adverse Effect:

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

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

     (c) such Grantor has made all necessary filings to record its ownership of the
registrations and applications included in such Intellectual Property Collateral in the
United States Patent and Trademark Office and the United States Copyright Office, as
applicable;

     (d) such Grantor is the owner of the unencumbered right, title and interest in and to
such Intellectual Property Collateral (except for (i) Liens created under the Indenture
Documents, (ii) Permitted Liens, and (iii) rights of licensees under licenses of such
Intellectual Property Collateral in the ordinary course of business) and no claim has been
made that the use of such Intellectual Property Collateral does or may violate the asserted
rights of any third party except for claims that could not reasonably be expected to have a
Material Adverse Effect; and

     (e) such Grantor has performed all acts and has paid all required fees and Taxes
required to maintain the registrations and applications filed with respect to any such
Intellectual Property Collateral that is used in and material for, or necessary to, such
Grantor’s business.

Each Grantor owns directly or is entitled to use by license or otherwise, all Patents, Trademarks,
Trade Secrets, Copyrights, licenses, technology, know-how, processes and rights with respect to any
of the foregoing that are used in and material for, or necessary to, the conduct of such Grantor’s
business as currently conducted.

     SECTION 3.7. Validity, etc. This Agreement creates a valid security interest in and
Lien on all Collateral, and, upon the taking of the actions described in Section 3.8(b),
such Lien will be senior to all Liens (other than Permitted Liens described in clauses (2), (6),
(7), (8), (9), (10), (11), (12), (13), (16), (17), (20), (21), (22), (23), (24), (25), (28) and
(29) of the definition thereof).

     SECTION 3.8. Authorization, Approval, etc. Except as have been obtained or made and
are in full force and effect, no material authorization, material approval or other action by, and
no material notice to or material filing with, any Governmental Authority or regulatory body is
required either (a) for the grant by such Grantor of the security interest granted hereby, the
pledge by such Grantor of any Collateral pursuant hereto or for the execution, delivery and
performance of this Agreement by such Grantor or (b) except for the filing of appropriate financing
statements with the proper filing office in the appropriate jurisdictions under applicable law to
perfect the security interest of the Collateral Agent in the Collateral and such recordings
and registrations as may be required under the trademark, copyright, and patent laws of the
United States and any other jurisdictions where such Grantor owns Intellectual Property Collateral,
for the perfection of or the exercise by the Collateral Agent of its rights and remedies hereunder.

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     SECTION 3.9. Due Authorization; Enforceability. Each of this Agreement and each
other Collateral Document to which a Grantor is a party has been duly authorized and validly
executed and delivered by such Grantor and constitutes a legal, valid and binding obligation of
such Grantor, enforceable against such Grantor in accordance with its terms, except that the
enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, receivership,
moratorium, fraudulent conveyance or other similar laws now or hereafter in effect relating to
creditors’ rights generally and (ii) general principles of equity (whether applied by a court of
law or equity) and the discretion of the court before which any proceeding therefor may be
brought..

     SECTION 3.10. No Conflicts. Other than as described in the Offering Circular,
neither the execution, delivery or performance of this Agreement or any other Collateral Document
nor the consummation of any transactions contemplated herein or therein by any Grantor will:

     (a) contravene any (i) organic documents of such Grantor, (ii) material agreement or
indenture binding on or affecting such Grantor (other than such defaults which may arise
under that certain indenture, dated as of December 19, 2002 governing the Existing Notes
(the “Existing Indenture”), and the mortgages, deeds of trust and other security
agreements, documents or instruments executed or delivered in connection therewith as a
result of the granting of liens pursuant to the Collateral Documents, which defaults, in any
event, will not mature into an Event of Default (as defined in the Existing Indenture) for a
period of at least 30 days from the Issue Date), (iii) court decree or order binding on or
affecting such Grantor or (iv) law or governmental regulation binding on or affecting such
Grantor; or

     (b) result in, or require the creation or imposition of, any Lien on any of such
Grantor’s assets or properties (except as contemplated by the Collateral Documents or except
for any Permitted Liens).

     SECTION 3.11. Compliance with Laws. Such Grantor is in compliance with the
requirements of all applicable laws (including the provisions of the Fair Labor Standards Act),
rules, regulations and orders of every Governmental Authority, the non-compliance with which could
reasonably be expected to have a Material Adverse Effect or which could reasonably be expected to
materially adversely affect the value of the Collateral.

     SECTION 3.10. Commercial Tort Claims. On the Issue Date, no Grantor has any rights
in any Commercial Tort Claim.

ARTICLE IV

COVENANTS

     SECTION 4.1. Certain Covenants. Each Grantor covenants and agrees that, at all times
prior to the Termination Date, such Grantor will, unless the Collateral Agent (acting at the
direction of such of the Holders as may be required by the Indenture) shall otherwise consent in
writing, perform, comply with and be bound by the obligations set forth in this Article IV.

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     SECTION 4.2. As to Equipment and Inventory. Such Grantor hereby agrees that it will:

     (a) keep all the Equipment and Inventory (other than Inventory sold in the ordinary
course of business) at the places therefor specified in Section 3.2 or, upon 30
days’ prior written notice to the Collateral Agent, at such other places in a jurisdiction
where all representations and warranties set forth in Article III shall be true and
correct in all material respects, and all action required pursuant to the first
sentence of Section 4.6 shall have been taken with respect to the Equipment and
Inventory;

     (b) cause the Equipment to be maintained and preserved in its existing condition,
ordinary wear and tear excepted, or in the case of any loss or damage to any of the
Equipment that is material to the operations of any Grantor, as soon as practicable after
the occurrence thereof, make or cause to be made all repairs, replacements and other
improvements in connection therewith which are necessary or desirable to such end; and
promptly furnish to the Collateral Agent a statement respecting any loss or damage to any of
the Equipment in excess of $1,250,000 per occurrence; and

     (c) pay when due all Taxes, assessments and governmental charges imposed upon, and all
claims (including claims for labor, materials and supplies) against the Equipment and
Inventory, except to the extent the validity thereof is being contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with GAAP have been
set aside.

     SECTION 4.3. As to Receivables. (a) Such Grantor will: (i) keep its chief executive
office and the office(s) where it keeps its Records concerning the Receivables, and all originals
of all Chattel Paper which evidences Receivables (other than Chattel Paper delivered to the
Collateral Agent pursuant to Section 3.5 or Section 4.6(a)), located at the
address(es) set forth in Section 3.2 and shall keep its other places of business at the
addresses set forth in Section 3.2, or, upon 10 days’ prior written notice to the
Collateral Agent, at such other locations in a jurisdiction where all actions required by the
first sentence of Section 4.6 shall have been taken with respect to the Receivables
and such other Collateral; (ii) not change its name, corporate identity, jurisdiction of
organization or federal taxpayer identification number except upon 10 days’ prior written notice to
the Collateral Agent; (iii) hold and preserve such Records concerning the Receivables; and (iv)
permit representatives of the Collateral Agent, at reasonable times and intervals and upon
reasonable notice during normal business hours to inspect (and photocopy extracts from) such
Records.

     (b) Such Grantor shall have the right to collect, demand, receive, receipt for, sue for,
compound and give acquittances for any and all amounts due or to become due on Receivables and
settle and adjust disputes and claims with its customers and account debtors, handle returns and
recoveries and grant discounts, credits and allowances with respect to Receivables in the
ordinary course of business so long as no Event of Default shall have occurred and be
continuing.

     (c) The Grantors, both individually and collectively, shall not maintain, on or after the date
that is 30 days following the Issue Date, any Deposit Account or Securities Account

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having an
average closing balance in the aggregate for all such accounts in excess of $2,750,000 for any five
(5) consecutive Business Day period unless the applicable Grantor and the applicable depository or
securities intermediary, as the case may be, shall have entered into a Control Agreement governing
such Deposit Account or Securities Account, as the case may be, in order to cause the Collateral
Agent to have control thereof.

     (e) Such Grantor will not create any Chattel Paper without placing a legend on such Chattel
Paper acceptable to the Collateral Agent indicating that the Collateral Agent has a security
interest in such Chattel Paper.

     SECTION 4.4. As to Collateral. (a) Until the occurrence and continuance of an Event
of Default, and such time as the Collateral Agent shall notify such Grantor of the revocation of
such power and authority, such Grantor (i) may in the ordinary course of its business (except to
the extent prohibited under any Indenture Document) at its own expense, refine, process, store,
transport, sell, lease or furnish under the contracts of service any of the Inventory normally held
by such Grantor for such purpose, and use and consume, in the ordinary course of its business
(except to the extent prohibited under the Indenture or any other Indenture Document), any raw
materials, including work in process or materials normally held by such Grantor for such purpose,
(ii) will, at its own expense, endeavor to collect, as and when due, all amounts due with respect
to any Collateral, including the taking of such action with respect to such collection as the
Collateral Agent may reasonably request upon the occurrence and during the continuance of an Event
of Default or, in the absence of such request, as such Grantor may deem advisable, (iii) may grant,
in the ordinary course of business (except to the extent prohibited under any Indenture Document),
to any party obligated on any of the Collateral, any rebate, refund or allowance to which such
party may be lawfully entitled, and may accept, in connection therewith, the return of Goods, the
sale or lease of which shall have given rise to such Collateral, and (iv) may issue licenses to
third-parties with respect to Trademarks, Patents, Copyrights, and Trade Secrets in the ordinary
course of business. The Collateral Agent, however, may, at any time upon the occurrence and during
the continuance of an Event of Default, notify any parties obligated on any of the Collateral to
make payment to the Collateral Agent of any amounts due or to become due thereunder and enforce
collection of any of the Collateral by suit or otherwise and surrender, release or exchange all or
any part thereof, or compromise or extend or renew for any period (whether or not longer than the
original period) any indebtedness thereunder or evidenced thereby. Upon request of the Collateral
Agent, subject with respect to any Collateral constituting Second Lien Collateral, to the terms of
the Intercreditor Agreement, upon the occurrence and during the continuance of an Event of Default,
such Grantor will, at its own expense, notify any parties obligated on any of the Collateral to
make payment to the Collateral Agent of any amounts due or to become due thereunder.

     (b) Following the occurrence and during the continuance of an Event of Default, the Collateral
Agent shall be authorized to endorse, in the name of such Grantor, any item,
howsoever received by the Collateral Agent, representing any payment on or other Proceeds of
any of the Collateral.

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     SECTION 4.5. As to Intellectual Property Collateral. Each Grantor covenants and
agrees to comply with the following provisions as such provisions relate to any Intellectual
Property Collateral of such Grantor:

     (a) such Grantor will not (i) do any act, or omit to do any act, whereby any of the
Patent Collateral may lapse or become abandoned or dedicated to the public or unenforceable,
(ii) permit any of its licensees to, (A) fail to continue to use any of the Trademark
Collateral in order to maintain all of the Trademark Collateral in full force free from any
claim of abandonment for non-use, (B) fail to maintain as in the past the quality of
products and services offered under all of the Trademark Collateral, (C) fail to employ,
consistent with past practice, all of the Trademark Collateral registered with any Federal
or State authority with an appropriate notice of such registration, (D) adopt or use any
other Trademark which is confusingly similar or a colorable imitation of any of the
Trademark Collateral unless such other Trademark is subject to the Collateral Agent’s Lien
hereunder, or (E) do or permit any act or knowingly omit to do any act whereby any of the
Trademark Collateral may lapse or become invalid or unenforceable, or (iii) do or permit any
act or knowingly omit to do any act whereby any of the Copyright Collateral or any of the
Trade Secrets Collateral may lapse or become invalid or unenforceable or placed in the
public domain except upon expiration of the end of an unrenewable term of a registration
thereof, unless, in any such case, such Grantor shall either (x) reasonably and in good
faith determine (and notice of such determination shall have been delivered to the
Collateral Agent) that any of the relevant Intellectual Property Collateral is not of
material economic value to such Grantor, or (y) in the exercise of its reasonable business
judgment determines to do otherwise;

     (b) such Grantor shall notify the Collateral Agent as soon as practicable if it knows,
or has reason to know, that any application or registration relating to any material item of
the Intellectual Property Collateral may become abandoned or dedicated to the public or
placed in the public domain or invalid or unenforceable other than upon the natural
expiration of protective periods under applicable law, or of any adverse determination or
development (including the institution of, or any such determination or development in, any
proceeding in the United States Patent and Trademark Office, the United States Copyright
Office or any U.S. court) regarding such Grantor’s ownership of any material item of the
Intellectual Property Collateral, its right to register the same or to keep and maintain and
enforce the same;

     (c) unless such Grantor shall otherwise determine in the exercise of its reasonable
business judgment, such Grantor will take all necessary steps, including in any proceeding
before the United States Patent and Trademark Office or the United States Copyright Office,
to maintain and pursue any application (and to obtain the relevant registration) filed with
respect to, and to maintain any registration of, any material item of the Intellectual
Property Collateral, including the filing of applications for renewal, affidavits of use,
affidavits of incontestability and opposition, interference and
cancellation proceedings and the payment of fees and Taxes (except to the extent that
dedication, abandonment or invalidation is permitted under the foregoing clauses (a)
and (b)); and

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     (e) such Grantor will, (i) as soon as practicable (and in any event within thirty (90)
days) after such Grantor obtains any material item of Intellectual Property Collateral that
is the subject of a registration or application in the United States Patent and Trademark
Office or in the United States Copyright Office, notify the Collateral Agent of the
acquisition of such Intellectual Property and, (ii) execute and deliver to the Collateral
Agent notice(s) to be filed with the United States Patent and Trademark Office or United
States Copyright Office, as applicable, with respect to the security interest granted by
this Agreement in such Intellectual Property Collateral, together with any other documents
as may be necessary or required to acknowledge or register or perfect the Collateral Agent’s
interest in any such item of Intellectual Property Collateral, each of which notices and
other documents shall be in form and substance reasonably satisfactory to the Collateral
Agent.

     SECTION 4.6. Further Assurances, etc. Such Grantor agrees that, from time to time at
its own expense, it will promptly execute and deliver all further instruments and documents, and
take all further action (including the filing of any Uniform Commercial Code continuation
statements), that may be necessary or that the Collateral Agent may reasonably request, in order to
perfect, preserve and protect any security interest granted or purported to be granted hereby or to
enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect
to any Collateral. Without limiting the generality of the foregoing, such Grantor will:

     (a) if any Receivable (excluding any Receivable with respect to which the payment owed
to such Grantor (other than by the Company or any Subsidiary thereof) does not exceed
$550,000) shall be evidenced by a promissory note or other Instrument, negotiable document
or Chattel Paper, deliver and pledge to the Collateral Agent hereunder such promissory note,
Instrument, negotiable document or Chattel Paper duly endorsed and accompanied by duly
executed instruments of transfer or assignment, all in form and substance reasonably
satisfactory to the Collateral Agent;

     (b) take such actions as are reasonably requested by the Collateral Agent in order to
allow the Collateral Agent to obtain control with respect to all Collateral consisting of
(i) Letter-of-Credit Rights and (ii) Electronic Chattel Paper;

     (c) authorize, execute (if necessary) and file such financing or continuation
statements, or amendments thereto, and such other instruments or notices (including any
assignment of claim form under or pursuant to the federal assignment of claims statute, 31
U.S.C. § 3726, any successor or amended version thereof or any regulation promulgated under
or pursuant to any version thereof), as may be necessary or as the Collateral Agent may
reasonably request to effectuate the foregoing and provide copies of the same to the
Collateral Agent; and

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

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With respect to the foregoing and the grant of the security interest hereunder, such Grantor hereby
authorizes the Collateral Agent to file one or more financing or continuation statements, and
amendments thereto, which may describe the Collateral of such Grantor as “all assets of the Debtor
(other than Excluded Collateral (as defined in that certain Security Agreement, dated as of March
29, 2007, among, inter alia, the Debtor and the Secured Party))” or “all personal
property of the Debtor (other than Excluded Collateral (as defined in that certain Security
Agreement, dated as of March 29, 2007, among, inter alia, the Debtor and the
Secured Party))”. A carbon, photographic or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a financing statement
where permitted by law.

     SECTION 4.7. Insurance. Each Grantor will:

     (a) comply with Section 4.05(b) of the Indenture; and

     (b) without limiting the foregoing, all insurance policies required pursuant to the
immediately preceding clause (a), the Company and its Restricted Subsidiaries shall list the
Collateral Agent on behalf of the applicable Secured Parties as mortgagee or loss payee (in
the case of property insurance), or additional insured (in the case of liability insurance),
as applicable, and provide that the applicable insurer shall endeavor to provide to the
Collateral Agent at least thirty (30) days prior written notice of cancellation, reduction
in amount or material change in coverage thereof or any portion thereof, and the Company
shall provide the Collateral Agent with copies of such policies or certificates of insurance
evidencing the same within 10 Business Days of the date hereof.

     SECTION 4.8. Commercial Tort Claims. If any Grantor obtains an interest in any
Commercial Tort Claim with a potential value in excess of $100,000, such Grantor shall within 30
days of obtaining such interest sign and deliver a supplement to this Agreement and file an
amendment to an existing effective financing statement filed in favor of the Collateral Agent or
file a new financing statement, in each case, describing such Commercial Tort Claim, in each case,
to the extent necessary to grant and perfect a security interest in favor of the Collateral Agent
in and to such Commercial Tort Claim.

ARTICLE V

THE COLLATERAL AGENT

     SECTION 5.1. Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby
irrevocably appoints the Collateral Agent as such Grantor’s attorney-in-fact, with full authority,
subject with respect to any Collateral constituting Second Lien Collateral, to the terms of the
Intercreditor Agreement, in the place and stead of such Grantor and in the name of such Grantor or
otherwise, from time to time in the Collateral Agent’s discretion, upon the occurrence and
during the continuance of an Event of Default, to take any action and to execute any
instrument which the Collateral Agent may deem necessary or advisable to accomplish the purposes of
this Agreement, including, without limitation:

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

     (b) to receive, endorse and collect any drafts or other Instruments, Documents and
Chattel Paper, in connection with clause (a) above;

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

     (d) to perform the affirmative obligations of such Grantor hereunder (including all
obligations of such Grantor pursuant to Section 4.6).

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

     SECTION 5.2. Collateral Agent May Perform. If any Grantor fails to perform any
agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such
agreement, and any expense of the Collateral Agent incurred in connection therewith shall be
payable by such Grantor pursuant to Section 6.3.

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

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

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

     SECTION 5.4. Action Under Agreement. The Collateral Agent shall not be obligated to
take any action under this Agreement except for the performance of such duties as are specifically
set forth herein. The Collateral Agent shall take any action hereunder which is requested by the
Trustee and which is not inconsistent with or contrary to the provisions of this Agreement, the
Indenture or the Intercreditor Agreement; provided, that the Collateral Agent
shall not amend or waive any provision of this Agreement except in accordance with Section
7.2 hereof. At any time when an Event of Default shall have been given and shall be
outstanding, the Collateral Agent shall, subject with respect to any Collateral constituting Second
Lien Collateral, to the terms of the Intercreditor Agreement, exercise or refrain from exercising
all

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such rights, powers and remedies as shall be available to it hereunder in accordance with any
written instructions received from the Trustee. The Collateral Agent shall have the right to
decline to follow any such direction if the Collateral Agent, being advised by counsel, determines
that the directed action is not permitted by the terms of this Agreement, the Indenture or the
Intercreditor Agreement, may not lawfully be taken or would involve it in personal liability, and
the Collateral Agent shall not be required to take any such action unless any indemnity which is
required hereunder in respect of such action has been provided. The Collateral Agent may rely on
any such direction given to it by the Trustee and shall be fully protected, and shall under no
circumstances (absent the gross negligence and willful misconduct of the Collateral Agent) be
liable to any of the Grantors, any of the Holders or any other Person for taking or refraining from
taking action in accordance therewith. Absent written instructions from the Trustee (a) at a time
when an Event of Default shall be outstanding or (b) in the case of an emergency in order to
protect any of the Collateral, the Collateral Agent may, subject with respect to any Collateral
constituting Second Lien Collateral, to the terms of the Intercreditor Agreement, take, but shall
have no obligation to take, any and all such actions hereunder or otherwise as it shall deem to be
in the best interests of the Holders. Except as provided in the preceding sentence, in the absence
of written instructions (which may relate to the exercise of specific remedies or to the exercise
of remedies in general) from the Trustee, the Collateral Agent shall not exercise remedies
available to it hereunder with respect to the Collateral or any part thereof.

     SECTION 5.5. Reasonable Care. The Collateral Agent agrees to use reasonable care in
the custody and preservation of any of the Collateral in its possession in accordance with Section
9-207 of the U.C.C.; provided, that (a) the Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of any Collateral in its possession if
such Collateral is accorded treatment substantially similar to that which the Collateral Agent
accords its own property, and (b) it is understood that the Collateral Agent shall have no
responsibility for taking any necessary steps to preserve rights against prior parties with respect
to the Collateral.

ARTICLE VI

REMEDIES

     SECTION 6.1. Certain Remedies. If any Event of Default shall have occurred and be
continuing, subject with respect to any Collateral constituting Second Lien Collateral, to the
terms of the Intercreditor Agreement:

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

     (i) require each Grantor to, and such Grantor hereby agrees that it will, at
its expense and upon request of the Collateral Agent forthwith, assemble all or part
of the Collateral as directed by the Collateral Agent and make it available to

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the
Collateral Agent at a place to be designated by the Collateral Agent which is
reasonably convenient to both parties, and

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

     (b) All cash Proceeds received by the Collateral Agent in respect of any sale of,
collection from or other realization upon all or any part of the Collateral shall (i) be
applied in accordance with Section 6.10 of the Indenture and (ii) thereafter, to the extent
that any such Proceeds remain, continue to be held by the Collateral Agent as additional
collateral security and applied to any outstanding Secured Obligations in accordance with
the preceding clause (i) until the Termination Date, after which such remaining cash
Proceeds shall be paid over to the applicable Grantor or to whomsoever may be lawfully
entitled to receive such surplus.

     (c) The Collateral Agent may

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

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

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

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

     (v) take control of any Proceeds of the Collateral and

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

The Collateral Agent shall notify the applicable Grantor promptly after it exercises any
right or rights pursuant to this Section 6.1(c) with respect to Collateral of such
Grantor; provided, that any failure to provide such notice shall not in any way
prejudice any such exercise of any right or rights.

     SECTION 6.2. Compliance with Restrictions. Each Grantor agrees that in any sale of
any of the Collateral whenever an Event of Default shall have occurred and be continuing, the
Collateral Agent is hereby authorized to comply with any limitation or restriction in connection
with such sale as it may be advised by counsel is necessary in order to avoid any violation of
applicable law (including compliance with such procedures as may restrict the number of prospective
bidders and purchasers, require that such prospective bidders and purchasers have certain
qualifications and restrict such prospective bidders and purchasers to Persons who will represent
and agree that they are purchasing for their own account for investment and not with a view to the
distribution or resale of such Collateral) or in order to obtain any required approval of the sale
or of the purchaser by any Governmental Authority or official, and such Grantor further agrees that
such compliance shall not result in such sale being considered or deemed not to have been made in a
commercially reasonable manner, nor shall the Collateral Agent be liable nor accountable to such
Grantor for any discount allowed by the reason of the fact that such Collateral is sold in
compliance with any such limitation or restriction.

     SECTION 6.3. Indemnity and Expenses. Each Grantor hereby jointly and severally
indemnifies and holds harmless the Collateral Agent from and against any and all claims, losses and
liabilities arising out of or resulting from this Agreement (including enforcement of this
Agreement), except claims, losses or liabilities resulting from the Collateral Agent’s gross
negligence or willful misconduct and, each Grantor will, upon demand pay (without duplication) to
the Collateral Agent the amount of any and all reasonable out-of-pocket expenses, including the
reasonable fees and disbursements of its counsel and of any experts and agents, which the
Collateral Agent may incur, in each case, in connection with:

     (a) the administration of this Agreement;

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

     (c) the exercise or enforcement of any of the rights of the Collateral Agent hereunder;
or

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

ARTICLE VII

MISCELLANEOUS PROVISIONS

22

 

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

     SECTION 7.2. Amendments; etc. No amendment to or waiver of any provision of this
Agreement nor consent to any departure by any Grantor herefrom shall in any event be effective
unless the same shall be in writing and signed by (a) subject to Article Nine of the Indenture, the
Collateral Agent and (b) such Grantor and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.

     SECTION 7.3. Protection of Collateral. The Collateral Agent may from time to time,
at its option, perform any act which each Grantor agrees hereunder to perform and which such
Grantor shall fail to perform after being requested in writing so to perform (it being understood
that no such request need be given after the occurrence and during the continuance of an Event of
Default) and the Collateral Agent may from time to time take any other action which the Collateral
Agent reasonably deems necessary for the maintenance, preservation or protection of any of the
Collateral or of its security interest therein.

     SECTION 7.4. Addresses for Notices. All notices and other communications provided
for hereunder shall be in writing and addressed, delivered or transmitted, if to any Grantor, at
the address or facsimile number of the Company provided for in the Indenture, and, if to the
Collateral Agent, at the address or facsimile number provided for in the Indenture, or to any such
party at such other address or facsimile number as shall be designated by such party in a written
notice to each other party complying as to delivery with the terms of this Section. Any notice,
(a) if mailed and properly addressed with postage prepaid or if properly addressed and sent by
pre-paid courier service, shall be deemed given when received, or (b) if transmitted by facsimile
or other electronic transmission, shall be deemed given when transmitted (and telephonic or
electronic confirmation of receipt thereof has been received, provided that if such confirmation is
electronic, it was generated by an affirmative action by or on behalf of the recipient of such
notice, as opposed to an automated E-Mail response).

     SECTION 7.5. Headings. The various headings of this Agreement are inserted for
convenience only, and shall not affect the meaning or interpretation of this Agreement or any
provisions thereof.

     SECTION 7.6. Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions
of this Agreement or affecting the validity or enforceability of such provision in any other
jurisdiction.

     SECTION 7.7. Counterparts; Effectiveness. This Agreement may be executed by the
parties hereto in several counterparts and by facsimile or other electronic transmission, each of
which counterparts shall be deemed to be an original (whether such counterpart is originally
executed or a facsimile or other electronic transmission copy of a counterpart that is
originally

23

 

executed) and all of which shall constitute together but one and the same agreement.
This Agreement shall become effective as of the date first above written.

     SECTION 7.8. Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     SECTION 7.9. Additional Grantors. Upon the execution and delivery by any other
Person of an instrument in the form of Annex I hereto, together with each Schedule thereto,
such Person shall become a “Grantor” hereunder with the same force and effect as if originally
named as a Grantor herein. The execution and delivery of any such instrument shall not require the
consent of any other Grantor hereunder. The rights and obligations of each Grantor hereunder shall
remain in full force and effect notwithstanding the addition of any new Grantor as a party to this
Agreement.

     SECTION 7.10. Intercreditor Agreement.

     (a) The Liens granted hereunder in favor of the Collateral Agent for the benefit of the
Secured Parties with respect to any Second Lien Collateral (as defined in the Intercreditor
Agreement) and the exercise of any right related thereto thereby shall be subject, in each case, to
the terms of the Intercreditor Agreement.

     (b) In the event of any direct conflict between the express terms and provisions of this
Agreement and of the Intercreditor Agreement with respect to any Second Lien Collateral, the terms
and provisions of the Intercreditor Agreement shall control until the Discharge of First Lien
Obligations (as defined in the Intercreditor Agreement) shall have occurred.

     (c) Notwithstanding anything to the contrary herein, any provision hereof that requires any
Grantor to (i) deliver any Second Lien Collateral to the Collateral Agent or (ii) provide that the
Collateral Agent have control over such Second Lien Collateral may be satisfied by (A) the delivery
of such Second Lien Collateral by such Grantor to the First Lien Agent (as defined in the
Intercreditor Agreement) for the benefit of the First Lien Secured Parties (as defined in the
Intercreditor Agreement) and the Collateral Agent for the benefit of the Secured Parties pursuant
to Article V of the Intercreditor Agreement and (B) providing that the First Lien Agent be provided
with control with respect to such Second Lien Collateral of such Grantor for the benefit of the
First Lien Secured Parties and the Collateral Agent for the benefit of Secured Parties pursuant to
Article V of the Intercreditor Agreement.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

24

 

     IN WITNESS WHEREOF, each party hereto has caused this Security Agreement to be duly executed
and delivered by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	GRANTORS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	STERLING CHEMICALS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Paul G. Vanderhoven
	 	 
	 

	 	 	 	Title:
	 	Senior Vice President — Finance and Chief
Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	STERLING CHEMICALS ENERGY, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Paul G. Vanderhoven	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 

[Signature Page to Security Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	COLLATERAL AGENT:
	 
	 	 	 	 	 	 
	 	 	U. S. BANK NATIONAL ASSOCIATION, as 

     Collateral
Agent, on behalf of the Secured Parties	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

[Signature Page to Security Agreement]

 

 

SCHEDULE I

to Security Agreement

([NAME OF GRANTOR])

Perfection Information for Grantor

     1. Names and Business Qualifications. (a) The exact legal name (as such names appear
in their respective certificates of incorporation), jurisdiction of incorporation and
organizational identification number of each Grantor, and each jurisdiction in which such Grantor
is qualified to conduct business as a foreign corporation, are as follows:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Jurisdictions Where
	 	 	 	 	Organizational	 	Qualified to Transact
	 	 	Jurisdiction of	 	Identification	 	Business as a Foreign
	Name	 	Incorporation	 	Number	 	Corporation
	Sterling Chemicals, Inc.

	 	Delaware
	 	 	2622672	 	 	Texas
	Sterling Chemicals
Energy, Inc.

	 	Delaware
	 	 	2196747	 	 	Texas

     (b) Set forth below is each other legal name that any Grantor has had in the last five years,
together with the date of the relevant change:

Sterling Chemicals Holdings, Inc. merged with and into Sterling Chemicals, Inc.
December 6, 2002.

     (c) Except as set forth below, no Grantor has changed its identity or organizational structure
in any way within the past five years.

Sterling Chemicals Holdings, Inc. merged with and into Sterling Chemicals, Inc.
December 6, 2002.

     (d) The following is a list of all other names (including trade names or similar appellations)
used by any Grantor or any of their divisions or other business units at any time during the past
five years:

           None.

Schedule I to Security Agreement — Page 1

 

 

     2. Taxpayer Identification Numbers. The exact corporate taxpayer identification
number of each Grantor is as follows:

	 	 	 
	 	 	Taxpayer Identification
	Name	 	Number
	Sterling Chemicals, Inc.

	 	76-0502785
	Sterling Chemicals Energy, Inc.

	 	76-0326761

     3. Current Locations. (a) The chief executive office of each Grantor is located at
the following address:

333 Clay Street, Suite 3600

Houston, Texas 77002-4109

     (b) The following are all locations where the Grantors maintain any chattel paper or any books
or records relating to any accounts receivable:

	 	 	 
	Name	 	Office Location
	Sterling Chemicals, Inc.

	 	333 Clay Street, Suite 3600

Houston, Texas 77002-4109

201 Bay Street South

P. O. Box 1311

Texas City, Texas 77590
	 
	 	 
	Sterling Chemicals Energy, Inc.

	 	333 Clay Street, Suite 3600

Houston, Texas 77002-4109

201 Bay Street South

P. O. Box 1311

Texas City, Texas 77590

     (c) The following are all locations where any Grantor maintains any lockbox account, deposit
account, securities account or other bank account:

	 	 	 	 	 	 	 
	 	 	Name, Address and Telephone	 	 	 	 
	Grantor	 	Number of Bank	 	Account Number	 	Contact Person
	Sterling Chemicals, Inc.

	 	JPMorgan Chase Bank, N.A.
	 	001-033-16882
	 	Desiree O’Neill
	

	 	P.O. Box 2558
	 	Disbursement Acct.	 	 
	 

	 	Houston, TX 77252	 	 	 	 

Schedule I to Security Agreement — Page 2

 

 

	 	 	 	 	 	 	 
	 	 	Name, Address and Telephone	 	 	 	 
	Grantor	 	Number of Bank	 	Account Number	 	Contact Person
	 

	 	JPMorgan Chase Bank, N.A.
	 	001-018-24317	 	 
	 

	 	 	 	Receipt Acct — Wires	 	 
	 
	 	 	 	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.
	 	001-034-05743	 	 
	 

	 	 	 	Payroll Acct.	 	 
	 
	 	 	 	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.
	 	001-034-13978	 	 
	 

	 	 	 	General Account	 	 
	 
	 	 	 	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.
	 	Lockbox 88852	 	 
	 
	 

	 	JPMorgan Chase Bank, N.A.
	 	063-000-65581	 	 
	 

	 	      A/P Control Disb. Acct.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.
	 	001-034-13945	 	 
	 

	 	 	 	Money Market Account	 	 
	 
	 	 	 	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.
	 	36000164	 	 
	 

	 	601 Travis St; 18th Floor
	 	Overnight Investments	 	 
	 

	 	Houston, TX 77002	 	 	 	 
	 
	 	 	 	 	 	 
	Sterling

	 	JPMorgan Chase Bank, N.A.
	 	001-018-18459
	 	Desiree O’Neill
	Chemicals

	 	P.O. Box 2558
	 	Depository Acct.	 	 
	Energy, Inc.

	 	Houston, TX 77252	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.
	 	001-033-17203	 	 
	 

	 	 	 	Disbursement	 	 

     (d) The following is a list of all real property owned or leased by any of the Grantors
(identify with respect to each Grantor: the complete address and county of all such real property;
whether such property is owned or leased by such Grantor; if such property is leased, the name and
complete address of the lessor of such property; the use and approximate value of such property):

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Address and	 	Nature of real	 	Lessor’s name	 	 	 	 
	 	 	county of real	 	property	 	and address	 	 	 	Approxima
	Grantor Name	 	property	 	interest	 	(if applicable)	 	Use	 	te value
	Sterling Chemicals,
Inc.

	 	201 Bay 

Street
South,
	 	Petrochemical

Facility
	 	N/A	 	Manufacture

Commodity

Petrochemicals	 	Land -
Unknown
Plant &
Equipment — Unknown
Inventory — $68M
	 

	 	Texas City, 

TX 77590

Galveston County,

TX*
	 	 	 	 	 	 

Schedule I to Security Agreement — Page 3

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Address and	 	Nature of real	 	Lessor’s name	 	 	 	 
	 	 	county of real	 	property	 	and address	 	 	 	Approxima
	Grantor Name	 	property	 	interest	 	(if applicable)	 	Use	 	te value
	 

	 	333 Clay Street, 
Suite 3600

Houston, TX 

77002

None.
	 	Corporate Office
	 	Brookfield

Properties
	 	Corporate Office
	 	N/A
	Sterling Chemicals

Energy, Inc.

	 	 	 	 	Management, LLC 

1200 Smith Street
Suite 1200

Houston, TX 
77002
	 		 	 

 

			
	*	 	A portion of this property is leased from Texas City Railroad Company.

     A portion of this property is leased to S&L Cogeneration Company.

     A portion of this property is leased to Praxair Hydrogen Supply, Inc.

     S&L Cogeneration Company, a joint venture between Sterling Chemicals, Inc. and Praxair Energy
Resources, Inc. owns the cogeneration facility located at Texas City.

     BP Amoco Chemical Company has an interest in various property and equipment at Texas City,
Texas pursuant to the Production Agreement between Sterling and BP Amoco Chemical Company.

     Praxair Hydrogen Supply, Inc. owns a partial oxidation unit at Texas City.

     (e) The following are all the locations (including the addresses) where any Grantor maintains
any equipment or inventory not identified above (identify the approximate value of any such
equipment or inventory and whether the locations are owned by a Grantor, leased by a Grantor or are
public warehouses):

	 	 	 	 	 
	Grantor Name	 	Equipment	 	Inventory
	Sterling Chemicals, Inc.

	 	One rotor 920EG200 in
	 	None
	 

	 	storage #S-2877	 	 
	 

	 	Leased from Hickham	 	 
	 

	 	Industries, Inc.	 	 
	 

	 	11518 Old La Porte Road

LaPorte, TX 77571	 	 
	 
	 	 	 	 
	 

	 	One drive Motor	 	 
	 

	 	(89908P16MD-1 spare motor)*	 	 
	 

	 	Leased from Grayson	 	 
	 

	 	Armature Works	 	 
	 

	 	1205 S. Witter	 	 
	 

	 	Pasadena, TX 77506	 	 

Schedule I to Security Agreement — Page 4

 

 

	 	 	 	 	 
	Grantor Name	 	Equipment	 	Inventory
	Sterling Chemicals Energy, Inc.

	 	201 Bay Street South
	 	None
	 

	 	Texas City, TX 77590 -	 	 
	 

	 	turbo generator	 	 
	 

	 	Approximate value $5M	 	 

 

			
	*	 	This drive motor is presently at Grayson to be reconditioned and then will be stored
there in a controlled environment.

     (f) The following are the names and addresses of all Persons other than any Grantor which have
possession of any Grantor’s equipment:

It is a common practice among companies in Texas City to loan minor pieces of
equipment for specific needs.

     (g) The following are the names and addresses of all Persons other than any Grantor which have
possession of any Grantor’s inventory (explain relationship of such Persons to a Grantor, e.g.,
consignee, etc.):

None.

     4. Intentionally deleted.

     5. Consigned Inventory. Approximate dollar amount of the Grantors’ inventory
consigned to third parties at any time: $0.00

     6. Inventory Located Outside of U.S. Approximate dollar amount of the Grantors’
inventory located outside of the United States at any time: $0.00

     7. Method of Shipment of Inventory. List the methods by which the Grantors’ inventory
is shipped to customers (e.g., common carrier, by company owned vehicles, company owned
railroad cars, etc.).

Acetic acid barge owned by Sterling Chemicals, Inc.

Railcars owned or leased by Sterling Chemicals, Inc.

Pipelines owned by Sterling Chemicals, Inc. or third parties

Ships and ocean going vessels owned by third parties.

Tank trucks and railcars owned by third parties.

Barges owned by third parties.

     8. Unusual Transactions. Each Grantor’s receivables have been originated by such
Grantor and each Grantor’s inventory has been acquired by such Grantor in the ordinary course of
its business.

Schedule I to Security Agreement — Page 5

 

 

     9. Government Contracts. The Grantors are party to the following Federal, State or
local government contracts:

          None.

     10. Patents. Attached as Schedule 10 is a list of the following information
with respect to each patent and patent application in which any Grantor has any interest (whether
as owner, licensee or otherwise):

     (a) Nature of interest (e.g., owner, licensee, other);

     (b) Description;

     (c) Registration number;

     (d) Issue date (patent) or date of application (patent application); and

     (e) Country of issuance (patent) or country of application (patent application).

     11. Trademarks. Attached as Schedule 11 is a list of the following
information with respect to each registered trademark and trademark application in which any
Grantor has any interest (whether as owner, licensee or otherwise):

   Registered Trademarks:

     (a) Nature of interest (e.g., owner, licensee, other);

     (b) Registered trademark;

     (c) Registered number;

     (d) Property covered;

     (e) Date of registration;

     (f) Country of registration;

  Trademark Applications:

     (a) Nature of interest (e.g., owner, licensee, other);

     (b) Trademark to which application applies;

     (c) Property covered;

     (d) Date of application; and

Schedule I to Security Agreement — Page 6

 

 

          (e) Country of application.

          12. Copyrights. Attached as Schedule 12 is a list of the following
information with respect to each copyright and copyright application in which any Grantor has any
interest (whether as owner, licensee or otherwise):

     Copyrights:

          (a) Nature of interest (e.g., owner, licensee, other);

          (b) Copyright;

          (c) Copyright number;

          (d) Property covered;

          (e) Date of copyright;

          (f) Docket number; and

          (g) Country of registration.

     Copyright Applications:

          (a) Nature of interest (e.g., owner, licensee, other);

          (b) Copyright to which application applies;

          (c) Property covered;

          (d) Date of application; and

          (e) Country of application.

          13. Investment Property. Attached as Schedule 13 is a list of all securities,
instruments and other investment property which are in the name of or beneficially owned by each of
the Grantors (identify the issuer, nature of investment property and whether or not evidenced by a
certificate).

          14. Material Contract Rights. Attached as Schedule 14 is a list of all other
contract rights, franchises and licenses (other than the real property leases listed above) the
cancellation or termination of which could be reasonably expected to have a material adverse effect
on (a) the business, condition (financial or otherwise), operations, performance, properties, or
prospects of the Grantor that is a party thereto, (b) the rights and remedies of any Secured Party
under any

Schedule I to Security Agreement — Page 7

 

 

Indenture Document, or (c) the ability of the Grantor that is a party thereto to perform its
obligations under the Indenture Documents.

Schedule I to Security Agreement — Page 8

 

 

SCHEDULES TO SCHEDULE I

TO SECURITY AGREEMENT

Schedule 10

Patents and Patent Applications

None

 

 

Schedule 11

Trademarks and Trademark Applications

REGISTERED TRADEMARKS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	OWNER
	 	COUNTRY	 	REG. NO.	 	MARK	 	GOODS/SERVICE CLASS	 	REG. DATE
	Sterling Chemicals, Inc.

	 	United States
	 	 	1,568,816	 	 	Sterling Chemicals
and S. Logo
	 	Manufacturing of
Petrochemicals for
others — C1.37
	 	11/28/1989
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Sterling Chemicals, Inc.

	 	United States
	 	 	2,110,534	 	 	Sterling
	 	Manufacturing of
Petrochemicals to
the order of others
- C1.40
	 	11/4/1997
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Sterling Chemicals, Inc.

	 	United States
	 	 	2,189,412	 	 	SM: S Logo
	 	Manufacturing of
Petrochemicals to
the order of others
	 	9/15/1998

 

 

PENDING TRADEMARK APPLICATIONS

	 	 	 	 	 	 	 	 	 	 	 
	OWNER	 	COUNTRY	 	APPLICATION NO.	 	MARK	 	GOODS/SERVICE CLASS	 	APPLICATION DATE
	None
	 	 	 	 	 	 	 	 	 	 

 

 

Schedule 12

Copyrights and Copyright Applications

None

 

 

Schedule 13

Investment Property

	 	 	 	 	 
	 	 	 	 	Certificated
	•

	 	107,418 shares of Series “A-1” Preferred Stock of ChemConnect, Inc.
	 	Yes þ No o
	 
	 	 	 	 
	•

	 	50% interest in S&L Cogeneration Company
	 	Yes o No þ
	 
	 	 	 	 
	•

	 	2,500 shares of Common Stock of Primex, Ltd.
	 	Yes þ No o
	 
	 	 	 	 
	•

	 	4,164 shares of Series “A” Preferred Stock of Primex, Ltd.
	 	Yes þ No o
	 
	 	 	 	 
	•

	 	1 share of Series “C” Preferred Stock of Primex, Ltd. (can be converted to
Series B which is for prospective dividends for $1,000 per share when board
declares dividend from excess reserves)
	 	Yes þ No o
	 
	 	 	 	 
	•

	 	2 shares of common stock of Georgia Gulf Corporation
	 	Yes þ No o
	 
	 	 	 	 
	•

	 	10 shares of common stock of Monsanto Company
(being reissued to Sterling in current share amounts by Pfizer Inc.)
	 	Yes þ No o
	 
	 	 	 	 
	•

	 	2 shares of common stock of Chevron Corporation
	 	Yes þ No o

 

 

Schedule 14

Material Contract Rights, Franchises and Licenses

STERLING CHEMICALS, INC.

Material Contracts

	1.	 	Second Amended and Restated Plasticizers Production Agreement dated January 1, 2006 between
BASF Corporation and Sterling Chemicals, Inc., as amended.
	 
	2.	 	License Agreement dated August 1, 1986, between Monsanto Company and Sterling Chemicals, Inc.
	 
	3.	 	Second Amended and Restated Production Agreement dated effective as of August 1, 1996,
between BP Chemicals Inc. and Sterling Chemicals, Inc., as amended.
	 
	4.	 	Amended and Restated Product Supply Agreement, dated January 1, 2006 between Praxair Hydrogen
Supply, Inc. and Sterling Chemicals, Inc., as amended by Second Amendment to Utilities
Agreement dated as of July 1, 2006, as amended.
	 
	5.	 	Acetic Acid Technology Agreement, dated December 30, 1997, among Sterling Chemicals, Inc., BP
Chemicals, Ltd., BP Chemicals Inc. and Sterling Chemicals, Inc.

 

 

ANNEX I

to Security Agreement

SUPPLEMENT NO. ___ TO SECURITY AGREEMENT

     THIS SUPPLEMENT NO. ___, dated as of                     , ___(this “Supplement”), to the
Security Agreement, dated as of March 29, 2007 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the “Security Agreement’’), among Sterling Chemicals,
Inc., a Delaware corporation (the “Company”), Sterling Chemicals Energy, Inc., a Delaware
corporation (“Energy”) and each other Person (such capitalized term and all other
capitalized terms being used herein with the meanings provided, or incorporated by reference, in
the Security Agreement) which from time to time thereafter became a party thereto pursuant to
Section 7.9 thereof (each such Person and Energy is individually referred to herein as a
“Guarantor”, and collectively as the “Guarantors” and, together with the Company,
the “Grantors”), and U. S. BANK NATIONAL ASSOCIATION (“U.S. Bank”), as Collateral
Agent for each of the Secured Parties, is made by                     , a[n]                                          
(the “Additional Grantor”).

RECITALS:

     A. Pursuant to an Indenture, dated as of March 29, 2007 (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Indenture”), among the Company,
Energy and U.S. Bank, as Collateral Agent and as trustee (in such capacity, the “Trustee”),
the Company has on such date issued $150,000,000 of its 101/4% Senior Secured Notes due 2015
(together with any exchange notes and additional notes that may be issued by the Company from time
to time thereunder and any other 101/4% Senior Secured Notes due 2015 issued in replacement or
substitution therefor, the “Notes”).

     B. The Additional Grantor desires to secure its Secured Obligations by granting to the
Collateral Agent, for the benefit of the Secured Parties, Liens on the Collateral as set forth
herein.

     C. The Additional Grantor is required to execute and deliver this Supplement pursuant to the
Indenture.

     D. The Additional Grantor has duly authorized the execution, delivery and performance of this
Supplement and the Security Agreement.

     E. It is in the best interest of the Additional Grantor to execute this Supplement inasmuch as
the Additional Grantor will derive substantial direct and indirect benefits from the Notes issued
from time to time to by the Company pursuant to the Indenture.

     F. The Security Agreement provides that additional parties may become Grantors under the
Security Agreement by execution and delivery of an instrument in the form of this Supplement.

Annex I to Security Agreement- Page 1

 

 

     G. Pursuant to the provisions of Section 7.9 of the Security Agreement, the Additional
Grantor is becoming a Grantor under the Security Agreement.

     H. The Additional Grantor desires to become a Grantor under the Security Agreement in order to
induce the Holders to maintain their investment in the Notes as consideration therefor.

     NOW, THEREFORE, the Additional Grantor agrees, for the benefit of each Secured Party, as
follows:

     SECTION 1. In accordance with Section 7.9 of the Security Agreement, the Additional
Grantor by its signature below becomes a Grantor under the Security Agreement with the same force
and effect as if it were an original signatory thereto as a Grantor, and hereby grants to the
Collateral Agent, for the benefit of the Secured Parties, a security interest in, all of the
following property now owned or at any time hereafter acquired by the Additional Grantor or in
which the Additional Grantor now has or at any time in the future may acquire any right, title or
interest (the “Additional 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 and all books, other Records and Proceeds with respect thereto;

     (b) all Chattel Paper (including without limitation all Tangible Chattel Paper and
Electronic Chattel Paper) and all books, other Records and Proceeds with respect thereto;

     (c) [all Commercial Tort Claims described on Schedule I attached hereto;

     (d)]1 all Deposit Accounts (including all deposits and investments therein
and all earnings thereon), and all books, other Records and Proceeds with respect thereto;

     (e) all Documents and all books, other Records and Proceeds with respect thereto;

     (f) all General Intangibles and all books, other Records and Proceeds with respect
thereto;

     (g) all Inventory and all books, other Records and Proceeds with respect thereto;

     (h) all Goods and all books, other Records and Proceeds with respect thereto;

     (i) all Instruments and all books, other Records and Proceeds with respect thereto;

 

			
	1	 	Item to be deleted if the Additional Grantor
does not have any Commercial Tort Claims.

Annex I to Security Agreement- Page 2

 

 

     (j) all Intellectual Property Collateral and all books, other Records and Proceeds with
respect thereto;

     (k) all Investment Property and all books, other Records and Proceeds with respect
thereto;

     (l) all Letter-of-Credit Rights and all books, other Records and Proceeds with respect
thereto;

     (m) all Equipment and all books, other Records and Proceeds with respect thereto;

     (n) all Receivables not otherwise described above and all books, other Records and
Proceeds with respect thereto; and

     (o) all Supporting Obligations and all books, other Records and Proceeds with respect
thereto.

     Notwithstanding the foregoing, the “Additional Collateral” shall not include any Excluded
Collateral. The Additional Grantor agrees to use commercially reasonable efforts to obtain any
such required consent with respect to any material item described in clause (c) of the definition
of the term “Excluded Collateral”.

     In furtherance of the foregoing, each reference to a “Grantor” in the Security Agreement shall be
deemed to include the Additional Grantor, each reference to “Collateral” in the Security Agreement
shall be deemed to include the Additional Collateral, and each Schedule hereto shall be deemed to
be included in the Schedules thereto.

     SECTION 2. The Additional Grantor hereby represents and warrants that (i) this Supplement has
been duly authorized, executed and delivered by the Additional Grantor and constitutes a legal,
valid and binding obligation of the Additional Grantor, enforceable against it in accordance with
its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally and general
equitable principles, (ii) each Schedule attached hereto contains true, correct and complete
information with respect to the matters set forth therein, and (iii) all representations and
warranties set forth in Article III of the Security Agreement, as supplemented hereby to
incorporate each Schedule hereto, are true and correct in all respects as to the Additional
Grantor.

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

     SECTION 4. Any provision of this Supplement which is prohibited or unenforceable in any
jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of

Annex I to Security Agreement- Page 3

 

 

such prohibition or unenforceability without invalidating the remaining provisions of this
Supplement or affecting the validity or enforceability of such provision in any other jurisdiction.

     SECTION 5. Without limiting the provisions of the Indenture (or any other Indenture Document,
including the Security Agreement), the Additional Grantor agrees to reimburse the Collateral Agent
for its reasonable out-of-pocket expenses in connection with this Supplement, including reasonable
attorneys’ fees and expenses of the Collateral Agent.

     SECTION 6. THIS SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.

     SECTION 7. This Supplement hereby incorporates by reference the provisions of the Security
Agreement, which provisions are deemed to be a part hereof, and this Supplement shall be deemed to
be a part of the Security Agreement.

     SECTION 8. This Supplement may be executed in several counterparts and by facsimile or other
electronic transmission, each of which shall be deemed to be an original (whether such counterpart
is originally executed or a facsimile or other electronic transmission copy of a counterpart that
is originally executed) and all of which shall constitute together but one and the same agreement.
This Supplement shall become effective and binding as of the date first above written when a
counterpart hereof executed on behalf of the Additional Grantor shall have been received by the
Collateral Agent.

Annex I to Security Agreement- Page 4

 

 

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

	 	 	 	 	 	 	 
	 	 	[NAME OF ADDITIONAL GRANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

ACKNOWLEDGED AND ACCEPTED BY:

U. S. BANK NATIONAL ASSOCIATION,

as Collateral Agent, on behalf of the

Secured Parties

	 	 	 	 	 
	By
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

Annex I to Security Agreement- Page 5

 

 

[SCHEDULE I

to Supplement No. __

to Security Agreement

([NAME OF ADDITIONAL GRANTOR])

Commercial Tort Claims]2

 

			
	2	 	This Schedule to be deleted if the
Additional Grantor does not have any Commercial Tort Claims

 

 

SCHEDULE [I][II]

to Supplement No. __

to Security Agreement

([NAME OF ADDITIONAL GRANTOR])

Perfection Information for Additional Grantor

     1. Names and Business Qualifications. (a) The exact name (as such name appears in the
certificate of incorporation or similar organizational document of the Additional Grantor),
jurisdiction of organization, and organizational identification number of the Additional Grantor,
and each jurisdiction in which the Additional Grantor is qualified to conduct business as a foreign
entity, are as follows:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Jurisdictions Where
	 	 	 	 	Organizational	 	Qualified to Transact
	 	 	Jurisdiction of	 	Identification	 	Business as a Foreign
	Name	 	Incorporation	 	Number	 	Corporation
	 
	 	 	 	 	 	 

          (b) Set forth below is each other name that the Additional Grantor has had since its
organization, together with the date of the relevant change:

          (c) Except as set forth below, the Additional Grantor has not changed its identity or
organizational structure in any way within the past five years.

          (d) The following is a list of all other names (including trade names or similar appellations)
used by the Additional Grantor or any of its divisions or other business units at any time during
the past five years:

     2. Taxpayer Identification Numbers. The exact taxpayer identification number of the
Additional Grantor is as follows:

     3. Current Locations. (a) The chief executive office of the Additional Grantor is
located at the following address:

          (b) The following are all locations where the Additional Grantor maintains any chattel paper
or any books or records relating to any accounts receivable:

 

 

     (c) The following are all locations where the Additional Grantor maintains any deposit
account, securities account or other bank account:

     (d) The following is a list of all real property owned or leased by the Additional Grantor
(identify: the complete address and county of all such real property; whether such property is
owned or leased; if such property is leased, the name and complete address of the lessor of such
property; the use and approximate value of such property):

     (e) The following are all the locations (including the addresses) where the Additional Grantor
maintains any equipment or inventory not identified above (identify the approximate value
of any such equipment or inventory and the nature of such location):

     (f) The following are the names and addresses of all Persons other than the Additional Grantor
which have possession of any of the Additional Grantor’s equipment:

     (g) The following are the names and addresses of all Persons other than the Additional Grantor
which have possession of the Additional Grantor’s inventory (explain relationship of such Persons
to the Additional Grantor, e.g., consignee, etc.):

     4. Intentionally Omitted.

     5. Consigned Inventory. Approximate dollar amount of the Additional Grantor’s
inventory consigned to third parties at any time: $                    .

     6. Inventory Located Outside of U.S. Approximate dollar amount of the Additional
Grantor’s inventory located outside of the United States at any time: $                    .

     7. Method of Shipment of Inventory. List the methods by which the Additional
Grantor’s inventory is shipped to customers (e.g., common carrier, by company owned
vehicles, company owned railroad cars, etc.).

     8. Unusual Transactions. The Additional Grantor’s receivables have been originated by
the Additional Grantor and the Additional Grantor’s inventory has been acquired by the Additional
Grantor in the ordinary course of its business.

     9. Government Contracts. The Additional Grantor is a party to the following Federal,
State or local government contracts:

     10. Patents. Below is a list of each patent and patent application in which the
Additional Grantor has any interest (whether as owner, licensee or otherwise):

     (a) Nature of interest (e.g., owner, licensee, other);

     (b) Description;

 

 

          (c) Registration number;

          (d) Issue date (patent) or date of application (patent application); and

          (e) Country of issuance (patent) or country of application (patent application).

          11. Trademarks. Below is a list of each registered trademark and trademark
application in which the Additional Grantor has any interest (whether as owner, licensee or
otherwise):

     Registered Trademarks:

          (a) Nature of interest (e.g., owner, licensee, other);

          (b) Registered trademark;

          (c) Registered number;

          (d) Property covered;

          (e) Date of registration;

          (f) Country of registration;

     Trademark Applications:

          (a) Nature of interest (e.g., owner, licensee, other);

          (b) Trademark to which application applies;

          (c) Property covered;

          (d) Date of application; and

          (e) Country of application.

          12. Copyrights. Below is a list of each copyright and copyright application in which
the Additional Grantor has any interest (whether as owner, license or otherwise):

     Copyrights:

          (a) Nature of interest (e.g., owner, licensee, other);

          (b) Copyright;

          (c) Copyright number;

 

 

          (d) Property covered;

          (e) Date of copyright;

          (f) Docket number; and

          (g) Country of registration.

     Copyright Applications:

          (a) Nature of interest (e.g., owner, licensee, other);

          (b) Copyright to which application applies;

          (c) Property covered;

          (d) Date of application; and

          (e) Country of application.

          13. Investment Property. Below is a list of all securities (whether or not evidenced
by a certificate), instruments and other investment property which are in the name of or
beneficially owned by the Additional Grantor (identify the issuer and nature of investment
property).

          14. Material Contract Rights. Below is a list of all other contract rights,
franchises and licenses (other than the real property leases listed above) the cancellation or
termination of which could be reasonably expected to have a material adverse effect on (a) the
business, condition (financial or otherwise), operations, performance, properties, or prospects of
the Additional Grantor, (b) the rights and remedies of any Secured Party under any Indenture
Document to which the Additional Grantor is a party, or (c) the ability of the Additional Grantor
to perform its obligations under the Indenture Documents.

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