Document:

Warrant to purchase shares, dated August 26, 2002

  
 Exhibit 10.3 
  
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR JLM INDUSTRIES, INC. SHALL HAVE RECEIVED AN
OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED. 
  
 WARRANT TO PURCHASE 
 SHARES OF COMMON STOCK 
 OF 
 JLM INDUSTRIES, INC. 
 Expires: December 31, 2007 
  
 Number of Shares: 1,666,666 
  
 Date of Issuance: August 26, 2002 
  
 FOR VALUE RECEIVED, subject to the provisions hereinafter set forth, the undersigned, JLM INDUSTRIES, INC., a Delaware corporation (together with its successors and assigns, the
“Issuer”), hereby certifies that THE PHILIP S. SASSOWER 1996 CHARITABLE REMAINDER ANNUITY TRUST or its registered assigns is entitled to subscribe for and purchase, during the period specified in this Warrant, up to 1,666,666 shares
(subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and nonassessable Common Stock of the Issuer, at an exercise price per share equal to the Warrant Price then in effect, subject, however, to the
provisions and upon the terms and conditions hereinafter set forth. Capitalized terms used in this Warrant and not otherwise defined herein shall have the respective meanings specified in Section 7 hereof. 
  
 1.  Term.    Subject to the terms and conditions of this Warrant, the right to subscribe for and
purchase shares of Warrant Stock represented hereby shall commence on January 1, 2003 and shall expire at 5:00 p.m., New York City time, on December 31, 2007 (such period being the “Term”). Notwithstanding the foregoing, this
Warrant shall immediately expire and be terminated in the event that the Issuer pays in full, on or prior to December 31, 2002, all of the principal and interest due to the holder of the Secured Promissory Note (the “Note”), dated
of 

 even date herewith by the Issuer in favor of the original Holder of this Warrant, in the original principal amount of $2,000,000. 

 
 2.  Method of Exercise Payment; Issuance of New Warrant; Transfer and Exchange. 
  
 (a)  Time of Exercise.    The purchase rights represented by this Warrant may be exercised in whole
or in part at such times and for such number of shares of Warrant Stock as follows: 
  
 (i)  On or after January 1, 2003, this Warrant shall be exercisable for 208.333 shares of Warrant Stock for every $1,000 of the Principal Amount (as defined in the Note) outstanding under the Note on December 31, 2002.

  
 (ii)  On or after May 1, 2003, this Warrant shall be exercisable for an additional
208.333 shares of Warrant Stock for every $1,000 of the Principal Amount outstanding under the Note on April 30, 2003. 
  
 (iii)  On or after September 1, 2003, this Warrant shall be exercisable for an additional 208.333 shares of Warrant Stock for every $1,000 of the Principal Amount outstanding under the Note on August 31, 2003.

  
 (iv)  On or after January 1, 2004, this Warrant shall be exercisable for an additional
208.333 shares of Warrant Stock for every $1,000 of the Principal Amount outstanding under the Note on December 31, 2003. 
  
 (b)  Method of Exercise. 
  
 (i)  Cash
Exercise.    The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached hereto duly executed) at the principal office of the Issuer, and by the payment
to the Issuer of an amount of consideration therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable at such
Holder’s election by certified or official bank check or wire transfer of immediately available funds. 
  
 (ii)  Net Issue Exercise.    The Holder hereof may exercise this Warrant, in whole or in part, if the Per Share Market Value of one (1) share of Common Stock is greater than the Exercise Price (as
the date of calculation as set forth below), in lieu of exercising this Warrant for cash, by electing to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being cancelled) by surrender of this Warrant at
the principal office of the Issuer together with a notice of exercise and notice of such election in which the Issuer shall issue to the Holder a number of shares of Common Stock computed using the following formula: 

 
 2 

  
 X=Y(A-B) 
 A 
  
 where: 
  

	 	X=
	 
	the number of shares of Common Stock to be issued to Holder 
 

  

	 	Y=
	 
	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being
cancelled (at the date of such calculation) 
 

  

	 	A=
	 
	the Per Share Market Value of one (1) share of Common Stock (at the date of such calculation) 
 

  

	 	B=
	 
	Exercise Price (as adjusted to the date of such calculation) 
 

  
 In any case where the consideration payable upon such exercise is being paid in whole or in part pursuant to the provisions of clause (ii) of this subsection (b), such exercise shall be accompanied by
written notice from the Holder of this Warrant specifying the manner of payment thereof and containing a calculation showing the number of shares of Warrant Stock with respect to which rights are being surrendered thereunder and the net number of
shares to be issued after giving effect to such surrender. 
  
 (c)  Issuance of Stock
Certificates.    In the event of any exercise of the rights represented by this Warrant in accordance with and subject to the terms and conditions hereof, (i) certificates for the shares of Warrant Stock so purchased shall be
dated the date of such exercise and delivered to the Holder hereof within a reasonable time, not exceeding three Trading Days after such exercise, and the Holder hereof shall be deemed for all purposes to be the Holder of the shares of Warrant Stock
so purchased as of the date of such exercise, and (ii) unless this Warrant has expired, a new Warrant representing the number of shares of Warrant Stock, if any, with respect to which this Warrant shall not then have been exercised (less any amount
thereof which shall have been canceled in payment or partial payment of the Warrant Price as hereinabove provided) shall also be issued to the Holder hereof at the Issuer’s expense within such time. 
  
 (d)  Transferability of Warrant.    Subject to Section 2(e), this Warrant may be transferred by a
Holder without the consent of the Company. If transferred pursuant to this paragraph and subject to the provisions of subsection (e) of this Section 2, this Warrant may be transferred on the books of the Issuer by the Holder hereof, upon surrender
of this Warrant at the principal office of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto). This Warrant is exchangeable at the principal office of the Issuer for Warrants for the purchase of the
same aggregate number of shares of Warrant Stock, each new Warrant to represent the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange. Any warrant issued upon a transfer of
this Warrant shall be dated the Original Issue Date and shall have terms identical to the terms of this Warrant. 

 
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 (e)  Compliance with Securities Laws. 
  
 (i)  The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant
Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell, pledge or otherwise dispose of this Warrant
or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any applicable state securities laws. 
  
 (ii)  Except as provided in paragraph (iii) below, this Warrant and all certificates representing shares of
Warrant Stock issued upon exercise hereof shall be stamped or imprinted with a legend in substantially the following form: 
  
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR JLM INDUSTRIES, INC. SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT
REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED. 
  
 (iii)  The restrictions imposed by this subsection (e) upon the transfer of this Warrant and the shares of Warrant Stock to be purchased upon exercise hereof shall terminate (A) when such
securities shall have been effectively registered under the Securities Act, (B) upon the Issuer’s receipt of an opinion of counsel, in form and substance reasonably satisfactory to the Issuer, addressed to the Issuer to the effect that such
restrictions are no longer required to ensure compliance with the Securities Act and state securities laws or (C) upon the Issuer’s receipt of other evidence reasonably satisfactory to the Issuer that such registration and qualification under
state securities laws is not required. Whenever such restrictions shall cease and terminate as to any such securities, the Holder thereof shall be entitled to receive from the Issuer (or its transfer agent and registrar), without expense (other than
applicable transfer taxes, if any), new Warrants (or, in the case of shares of Warrant Stock, new stock certificates) of like tenor not bearing the applicable legend required by paragraph (ii) above relating to the Securities Act and state
securities laws. 
  
 (f)  Continuing Rights of Holder.    The Issuer will, at
the time of or at any time after each exercise of this Warrant, upon the request of the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights to which such Holder shall continue to
be entitled after such exercise in accordance with the terms of this Warrant, provided that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to afford such rights to such
Holder. 

 
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 3.  Stock Fully Paid; Reservation and Listing of Shares;
Covenants. 
  
 (a)  Stock Fully Paid.    The Issuer represents, warrants,
covenants and agrees that all shares of Warrant Stock which may be issued upon the exercise of this Warrant or otherwise hereunder will, upon issuance, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens
and charges created by or through Issuer. The Issuer further covenants and agrees that during the period within which this Warrant may be exercised, the Issuer will at all times have authorized and reserved for the purpose of the issue upon exercise
of this Warrant a sufficient number of shares of Common Stock to provide for the exercise of this Warrant. 
  
 (b)  Reservation.    If any shares of Common Stock required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with
any governmental authority under any Federal or state law before such shares may be so issued, the Issuer shall in good faith use its best efforts as expeditiously as possible at its expense to cause such shares to be duly registered or qualified.
If the Issuer shall list any shares of Common Stock on any securities exchange or market it shall, at its expense, list thereon, maintain and increase when necessary such listing of, all shares of Warrant Stock from time to time issued upon exercise
of this Warrant or as otherwise provided hereunder, and, to the extent permissible under the applicable securities exchange rules, all unissued shares of Warrant Stock which are at any time issuable hereunder, so long as any shares of Common Stock
shall be so listed. The Issuer shall also so list on each securities exchange or market, and shall maintain such listing of, any other securities which the Holder of this Warrant shall be entitled to receive upon the exercise of this Warrant if at
the time any securities of the same class shall be listed on such securities exchange or market by the Issuer. 
  
 (c)  Covenants.    The Issuer shall not by any action including, without limitation, amending the Restated Certificate of Incorporation or the By-laws of the Issuer, or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder hereof against dilution (to the extent specifically provided herein) or impairment. Without limiting the
generality of the foregoing, the Issuer will (i) not permit the par value, if any, of its Common Stock to exceed the then effective Warrant Price, (ii) not amend or modify any provision of the Restated Certificate of Incorporation or By-laws of the
Issuer in any manner that would adversely affect in any way the powers, preferences or relative participating, optional or other special rights of the Common Stock or which would adversely affect the rights of the Holder of the Warrant, (iii) take
all such action as may be reasonably necessary in order that the Issuer may validly and legally issue fully paid and nonassessable shares of Common Stock, free and clear of any liens, claims, encumbrances and restrictions (other than as provided
herein) upon the exercise of this Warrant, and (iv) use its best efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be reasonably necessary to enable the Issuer to
perform its obligations under this Warrant. 

 
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 (d)  Loss, Theft, Destruction of
Warrants.    Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of
indemnity or security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant
of like tenor and representing the right to purchase the same number of shares of Common Stock. 
  
 (e)  Rights and Obligations under existing Registration Rights Agreement.    The shares of Warrant Stock are entitled to the benefits and subject to the terms of the Registration Rights Agreement,
dated as of June 28, 2001, by and among the Issuer and the investors listed on the signature pages thereof (as amended from time to time, the “Registration Rights Agreement”), which Agreement is incorporated by reference herein and
shall have the same effect as if set forth herein; provided, however, that with respect to this Warrant: (i) the “Filing Date” as defined therein shall be such date requested by the Holder of this Warrant upon 45 days advance
written notice to the Issuer, which Filing Date shall not in any event be earlier than February 15, 2003. The Issuer shall keep or cause to be kept a copy of the Registration Rights Agreement, and any amendments thereto, at its chief executive
office and shall furnish, without charge, copies thereof to the Holder upon request. 
  
 4.  Adjustment
of Warrant Price and Warrant Share Number.    The number and kind of Securities purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time upon the happening of
certain events as follows: 
  
 (a)  Recapitalization; Reorganization; Reclassification; Consolidation;
Merger or Sale. 
  
 (i)  In case the Issuer after the Original Issue Date shall do any
of the following (each, a “Triggering Event”): (a) consolidate with or merge into any other Person and the Issuer shall not be the continuing or surviving corporation of such consolidation or merger, or (b) permit any other Person
to consolidate with or merge into the Issuer and the Issuer shall be the continuing or surviving Person but, in connection with such consolidation or merger, any Capital Stock of the Issuer shall be changed into or exchanged for Securities of any
other Person or cash or any other property, or (c) transfer, sell or otherwise dispose all or substantially all of its properties or assets to any other Person, or (d) effect a capital reorganization or reclassification of its Capital Stock, then,
and in the case of each such Triggering Event, proper provision shall be made so that, upon the basis and the terms and in the manner provided in this Warrant, the Holder of this Warrant shall be entitled (x) upon the exercise hereof at any time
after the consummation of such Triggering Event, to the extent this Warrant is not exercised prior to such Triggering Event, or is redeemed in connection with such Triggering Event, to receive at the Warrant Price in effect at the time immediately
prior to the consummation of such Triggering Event in lieu of the Common Stock issuable upon such exercise of this Warrant prior to such Triggering Event, the Securities, cash and property to which such Holder would have been entitled upon the
consummation of such Triggering Event if such Holder had exercised the rights represented by this Warrant immediately prior thereto, subject to adjustments and increases (subsequent to such corporate action) as nearly equivalent as possible to the

 
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 adjustments provided for in Section 4 hereof or (y) to sell this Warrant (or, at
such Holder’s election, a portion hereof) concurrently with the Triggering Event to the Person continuing after or surviving such Triggering Event, or to the Issuer (if Issuer is the continuing or surviving Person) at a sales price equal to the
amount of cash, property and/or Securities to which a holder of the number of shares of Common Stock which would otherwise have been delivered upon the exercise of this Warrant would have been entitled upon the effective date or closing of any such
Triggering Event (the “Event Consideration”), less the amount or portion of such Event Consideration having a fair value equal to the aggregate Warrant Price applicable to this Warrant or the portion hereof so sold. 

 
 (ii)  Notwithstanding anything contained in this Warrant to the contrary, the Issuer will not effect
any Triggering Event unless, prior to the consummation thereof, each Person (other than the Issuer) which may be required to deliver any Securities, cash or property upon the exercise of this Warrant as provided herein shall assume, by written
instrument delivered to, and reasonably satisfactory to, the Holder of this Warrant, (A) the obligations of the Issuer under this Warrant (and if the Issuer shall survive the consummation of such Triggering Event, such assumption shall be in
addition to, and shall not release the Issuer from, any continuing obligations of the Issuer under this Warrant) and (B) the obligation to deliver to such Holder such shares of Securities, cash or property as, in accordance with the foregoing
provisions of this subsection (a), such Holder shall be entitled to receive, and such Person shall have similarly delivered to such Holder an opinion of counsel for such Person, which counsel shall be reasonably satisfactory to such Holder, stating
that this Warrant shall thereafter continue in full force and effect and the terms hereof (including, without limitation, all of the provisions of this subsection (a)) shall be applicable to the Securities, cash or property which such Person may be
required to deliver upon any exercise of this Warrant or the exercise of any rights pursuant hereto. 
  
 (iii)  If with respect to any Triggering Event, the Holder of this Warrant has exercised its right as provided in clause (y) of subparagraph (i) of this subsection (a) to sell this Warrant or a portion thereof, the Issuer
agrees that as a condition to the consummation of any such Triggering Event the Issuer shall secure such right of Holder to sell this Warrant to the Person continuing after or surviving such Triggering Event and the Issuer shall not effect any such
Triggering Event unless upon or prior to the consummation thereof the amounts of cash, property and/or Securities required under such clause (y) are delivered to the Holder of this Warrant. The obligation of the Issuer to secure such right of the
Holder to sell this Warrant shall be subject to such Holder’s reasonable cooperation with the Issuer, including, without limitation, the giving of customary representations and warranties to the purchaser in connection with any such sale. Prior
notice of any Triggering Event shall be given to the Holder of this Warrant in accordance with Section 11 hereof. 
  
 (b)  Subdivision or Combination of Shares.    If the Issuer, at any time while this Warrant is outstanding, shall subdivide or combine any shares of Common Stock, (i) in case of subdivision of
shares, the Warrant Price shall be proportionately reduced (as at the effective date of such subdivision or, if the Issuer shall take a record of holders of its Common Stock for the purpose of so subdividing, as at the applicable record date,
whichever is earlier) to reflect the 

 
 7 

  
 increase in the total number of shares of Common Stock outstanding as a result of such subdivision, or
(ii) in the case of a combination of shares, the Warrant Price shall be proportionately increased (as at the effective date of such combination or, if the Issuer shall take a record of holders of its Common Stock for the purpose of so combining, as
at the applicable record date, whichever is earlier) to reflect the reduction in the total number of shares of Common Stock outstanding as a result of such combination. 
  
 (c)  Certain Dividends and Distributions.    If the Issuer, at any time while this Warrant is outstanding, shall: 

 
 (i)  Stock Dividends.    Pay a dividend in, or make any other distribution
to its stockholders of, shares of Common Stock, the Warrant Price shall be adjusted, as at the date the Issuer shall take a record of the holders of the Issuer’s Capital Stock for the purpose of receiving such dividend or other distribution (or
if no such record is taken, as at the date of such payment or other distribution), to that price determined by multiplying the Warrant Price in effect immediately prior to such record date (or if no such record is taken, then immediately prior to
such payment or other distribution), by a fraction (1) the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to such dividend or distribution, and (2) the denominator of which shall be the total
number of shares of Common Stock outstanding immediately after such dividend or distribution (plus in the event that the Issuer paid cash for fractional shares, the number of additional shares which would have been outstanding had the Issuer issued
fractional shares in connection with said dividends); or 
  
 (ii)  Other
Dividends.    Pay a dividend on, or make any distribution of its assets upon or with respect to (including, but not limited to, a distribution of its property as a dividend in liquidation or partial liquidation or by way of
return of capital), the Common Stock (other than as described in clause (i) of this subsection (c)), or in the event that the Company shall offer options or rights to subscribe for shares of Common Stock, or issue any Common Stock Equivalents, to
all of its holders of Common Stock, then on the record date for such payment, distribution or offer or, in the absence of a record date, on the date of such payment, distribution or offer, the Holder shall receive what the Holder would have received
had it exercised this Warrant in full immediately prior to the record date of such payment, distribution or offer or, in the absence of a record date, immediately prior to the date of such payment, distribution or offer. 
  
 (d)  Issuance of Additional Shares of Common Stock.    If the Issuer, at any time while this Warrant
is outstanding, shall issue any Additional Shares of Common Stock (otherwise than as provided in the foregoing subsections (a) through (c) of this Section 4), at a price per share less than the Warrant Price then in effect or without consideration,
then the Warrant Price upon each such issuance shall be adjusted to that price (rounded to the nearest cent) determined by multiplying the Warrant Price then in effect by a fraction: 
  
 (i)  the numerator of which shall be equal to the sum of (A) the number of shares of Common Stock outstanding immediately prior to the issuance of
such Additional Shares of Common Stock plus (B) the number of shares of Common Stock (rounded to the nearest whole share) which the aggregate consideration for the total number of such 

 
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 Additional Shares of Common Stock so issued would purchase at a price per share
equal to the Warrant Price then in effect, and 
  
 (ii)  the denominator of which shall be
equal to the number of shares of Common Stock outstanding immediately after the issuance of such Additional Shares of Common Stock. 
  
 The provisions of this subsection (d) shall not apply under any of the circumstances for which an adjustment is provided in subsection (a), (b) or (c) of this Section 4. No adjustment of the Warrant Price shall be made under
this subsection (d) upon the issuance of any Additional Shares of Common Stock which are issued pursuant to any Common Stock Equivalent if upon the issuance of such Common Stock Equivalent (X) any adjustment shall have been made pursuant to
subsection (e) of this Section 4 or (Y) no adjustment was required pursuant to subsection (e) of this Section 4. No adjustment of the Warrant Price shall be made under this subsection (d) in an amount less than $.01 per share, but any such lesser
adjustment shall be carried forward and shall be made at the time and together with the next subsequent adjustment, if any, which together with any adjustments so carried forward shall amount to $.01 per share or more, provided that upon any
adjustment of the Warrant Price as a result of any dividend or distribution payable in Common Stock or Convertible Securities or the reclassification, subdivision or combination of Common Stock into a greater or smaller number of shares, the
foregoing figure of $.01 per share (or such figure as last adjusted) shall be adjusted (to the nearest one-half cent) in proportion to the adjustment in the Warrant Price. 
  
 (e)  Issuance of Common Stock Equivalents. 
  
 (i)  If the Issuer, at any time while this Warrant is outstanding, shall issue any Common Stock Equivalent and the price per share for which Additional Shares of Common Stock may be issuable
thereafter pursuant to such Common Stock Equivalent shall be less than the Warrant Price then in effect, or if, after any such issuance of Common Stock Equivalents, the price per share for which Additional Shares of Common Stock may be issuable
thereafter is amended or adjusted, and such price as so amended shall be less than the Warrant Price in effect at the time of such amendment, then the Warrant Price upon each such issuance or amendment shall be adjusted as provided in the first
sentence of subsection (d) of this Section 4 on the basis that (1) the maximum number of Additional Shares of Common Stock issuable pursuant to all such Common Stock Equivalents shall be deemed to have been issued (whether or not such Common Stock
Equivalents are actually then exercisable, convertible or exchangeable in whole or in part) as of the earlier of (A) the date on which the Issuer shall enter into a firm contract for the issuance of such Common Stock Equivalent, or (B) the date of
actual issuance of such Common Stock Equivalent, and (2) the aggregate consideration for such maximum number of Additional Shares of Common Stock shall be deemed to be the minimum consideration received or receivable by the Issuer for the issuance
of such Additional Shares of Common Stock pursuant to such Common Stock Equivalent. No adjustment of the Warrant Price shall be made under this subsection (e) upon the issuance of any Convertible Security which is issued pursuant to the exercise of
any warrants or other subscription or purchase rights therefor, if any adjustment shall previously have been made in the Warrant Price then in effect upon the issuance of such warrants or other rights pursuant to this subsection (e). 

 
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 (i)  Notwithstanding the foregoing, in the event the
Warrant Price is required to be reduced in accordance with this subsection (e), if the aggregate number of shares of Common Stock issuable upon exercise of this Warrant would exceed the maximum number of shares of Common Stock which could be issued
without obtaining stockholder approval if and as required pursuant to Nasdaq Stock Market Rule 4350(i)(C) or (D), then, unless such stockholder approval shall have been obtained, the Warrant Price shall be reduced only to the extent that the number
of shares of Common Stock issuable upon conversion of the Warrant would not exceed such maximum number of shares of Common Stock which could be issued without obtaining stockholder approval. 
  
 (f)  Purchase of Common Stock by the Issuer.    If the Issuer at any time while this Warrant is outstanding shall, directly or
indirectly through a Subsidiary or otherwise, purchase, redeem or otherwise acquire any shares of Common Stock at a price per share greater than the Per Share Market Value then in effect, then the Warrant Price upon each such purchase, redemption or
acquisition shall be adjusted to that price determined by multiplying such Warrant Price by a fraction (i) the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such purchase, redemption or acquisition
minus the number of shares of Common Stock which the aggregate consideration for the total number of such shares of Common Stock so purchased, redeemed or acquired would purchase at the Per Share Market Value; and (ii) the denominator of which shall
be the number of shares of Common Stock outstanding immediately after such purchase, redemption or acquisition. For the purposes of this subsection (f), the date as of which the Per Share Market Value shall be computed shall be the earlier of (x)
the date on which the Issuer shall enter into a firm contract for the purchase, redemption or acquisition of such Common Stock, or (y) the date of actual purchase, redemption or acquisition of such Common Stock. For the purposes of this subsection
(f), a purchase, redemption or acquisition of a Common Stock Equivalent shall be deemed to be a purchase of the underlying Common Stock, and the computation herein required shall be made on the basis of the full exercise, conversion or exchange of
such Common Stock Equivalent on the date as of which such computation is required hereby to be made, whether or not such Common Stock Equivalent is actually exercisable, convertible or exchangeable on such date. 
  
 (g)  Other Provisions Applicable to Adjustments Under this Section 4.    The following provisions
shall be applicable to the making of adjustments in the Warrant Price hereinbefore provided in Section 4: 
  
 (i)  Computation of Consideration.    The consideration received by the Issuer shall be deemed to be the following: to the extent that any Additional Shares of Common Stock or any Common Stock
Equivalents shall be issued for a cash consideration, the consideration received by the Issuer therefor, or if such Additional Shares of Common Stock or Common Stock Equivalents are offered by the Issuer for subscription, the subscription price, or,
if such Additional Shares of Common Stock or Common Stock Equivalents are sold to underwriters or dealers for public offering without a subscription offering, the public offering price, in any such case excluding any amounts paid or receivable for
accrued interest or accrued dividends and without deduction of any compensation, discounts, commissions, or expenses paid or incurred by the Issuer for or in connection with the underwriting thereof or otherwise in 

 
 10 

  
 connection with the issue thereof; to the extent that such issuance shall be for
a consideration other than cash, then, except as herein otherwise expressly provided, the fair market value of such consideration at the, time of such issuance as determined in good faith by the Board. The consideration for any Additional Shares of
Common Stock issuable pursuant to any Common Stock Equivalents shall be the consideration received by the Issuer for issuing such Common Stock Equivalents, plus the additional consideration payable to the Issuer upon the exercise, conversion or
exchange of such Common Stock Equivalents. In case of the issuance at any time of any Additional Shares of Common Stock or Common Stock Equivalents in payment or satisfaction of any dividend upon any class of Capital Stock of the Issuer other than
Common Stock, the Issuer shall be deemed to have received for such Additional Shares of Common Stock or Common Stock Equivalents a consideration equal to the amount of such dividend so paid or satisfied. In any case in which the consideration to be
received or paid shall be other than cash, the Board shall notify the Holder of this Warrant of its determination of the fair market value of such consideration prior to payment or accepting receipt thereof. If, within thirty days after receipt of
said notice, the Holder shall notify the Board in writing of its objection to such determination, a determination of the fair market value of such consideration shall be made by an Independent Appraiser selected by the Holder with the approval of
the Board (which approval shall not be unreasonably withheld), whose fees and expenses shall be paid by the Issuer. 
  
 (ii)  Readjustment of Warrant Price.    Upon the expiration or termination of the right to convert, exchange or exercise any Common Stock Equivalent the issuance of which effected an
adjustment in the Warrant Price, if such Common Stock Equivalent shall not have been converted, exercised or exchanged in its entirety, the number of shares of Common Stock deemed to be issued and outstanding by reason of the fact that they were
issuable upon conversion, exchange or exercise of any such Common Stock Equivalent shall no longer be computed as set forth above, and the Warrant Price shall forthwith be readjusted and thereafter be the price which it would have been (but
reflecting any other adjustments in the Warrant Price made pursuant to the provisions of this Section 4 after the issuance of such Common Stock Equivalent) had the adjustment of the Warrant Price been made in accordance with the issuance or sale of
the number of Additional Shares of Common Stock actually issued upon conversion, exchange or issuance of such Common Stock Equivalent and thereupon only the number of Additional Shares of Common Stock actually so issued shall be deemed to have been
issued and only the consideration actually received by the Issuer (computed as in clause (i) of this subsection (g)) shall be deemed to have been received by the Issuer. 
  
 (iii)  Outstanding Common Stock.    The number of shares of Common Stock at any time outstanding shall (A) not include
any shares thereof then directly or indirectly owned or held by or for the account of the Issuer or any of its Subsidiaries, and (B) be deemed to include all shares of Common Stock then issuable upon conversion, exercise or exchange of any then
outstanding Common Stock Equivalents or any other evidences of indebtedness, shares of Capital Stock or other Securities which are or may be at any time convertible into or exchangeable for shares of Common Stock or Other Common Stock. 

 
 (h)  Other Action Affecting Common Stock.    In case after the Original Issue Date the
Issuer shall take any action affecting its Common Stock, other than an action described 

 
 11 

  
 in any of the foregoing subsections (a) through (g) of this Section 4, inclusive, and the failure to
make any adjustment would not fairly protect the purchase rights represented by this Warrant in accordance with the essential intent and principle of this Section 4, then the Warrant Price shall be adjusted in such manner and at such time as the
Board may in good faith determine to be equitable in the circumstances. 
  
 (i)  Adjustment of Warrant
Share Number.    Upon each adjustment in the Warrant Price pursuant to any of the foregoing provisions of this Section 4, the Warrant Share Number shall be adjusted, to the nearest one hundredth of a whole share, to the
product obtained by multiplying the Warrant Share Number immediately prior to such adjustment in the Warrant Price by a fraction, the numerator of which shall be the Warrant Price immediately before giving effect to such adjustment and the
denominator of which shall be the Warrant Price immediately after giving effect to such adjustment. If the Issuer shall be in default under any provision contained in Section 3 of this Warrant so that shares issued at the Warrant Price adjusted in
accordance with this Section 4 would not be validly issued, the adjustment of the Warrant Share Number provided for in the foregoing sentence shall nonetheless be made and the Holder of this Warrant shall be entitled to purchase such greater number
of shares at the lowest price at which such shares may then be validly issued under applicable law. Such exercise shall not constitute a waiver of any claim arising against the Issuer by reason of its default under Section 3 of this Warrant.

  
 (j)  Form of Warrant after Adjustments.    The form of this Warrant need not
be changed because of any adjustments in the Warrant Price or the number and kind of Securities purchasable upon the exercise of this Warrant. 
  
 5.  Notice of Adjustments.    Whenever the Warrant Price or Warrant Share Number shall be adjusted pursuant to Section 4 hereof (for purposes of this Section 5,
each an “adjustment”), the Issuer shall cause its Chief Financial Officer to prepare and execute a certificate setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by
which such adjustment was calculated (including a description of the basis on which the Board made any determination hereunder), the calculations made in connection therewith and the Warrant Price and Warrant Share Number after giving effect to such
adjustment, and shall cause copies of such certificate to be delivered to the Holder of this Warrant promptly after each adjustment. Any dispute between the Issuer and the Holder of this Warrant with respect to the matters set forth in such
certificate may at the option of the Holder of this Warrant be submitted to one of the national or regional accounting firms selected by the Holder, provided that the Issuer shall have ten days after receipt of notice from such Holder of its
selection of such firm to object thereto, in which case such Holder shall select another such firm and the Issuer shall have no such right of objection. The firm selected by the Holder of this Warrant as provided in the preceding sentence shall be
instructed to deliver a written opinion as to such matters to the Issuer and such Holder within thirty days after submission to it of such dispute. Such opinion shall be final and binding on the parties hereto. The fees and expenses of such
accounting firm shall be paid by the Issuer. 
  
 6.  Fractional Shares.    No
fractional shares of Warrant Stock will be issued in connection with and exercise hereof, but in lieu of such fractional shares, the Issuer shall make a 

 
 12 

  
 cash payment therefor equal in amount to the product of the applicable fraction multiplied by the Per
Share Market Value then in effect. 
  
 7.  Definitions.    For the purposes of
this Warrant, the following terms have the following meanings: 
  
 “Additional Shares of
Common Stock” means all shares of Common Stock issued by the Issuer after the Original Issue Date, and all shares of Other Common Stock, if any, issued by the Issuer after the Original Issue Date, except the Warrant Stock, Common Stock
reserved for issuance upon exercise of existing stock options issued under any employee incentive stock option, and Common Stock issued upon exercise of options and warrants authorized by the Board prior to the Closing Date. 
  
 “Board” shall mean the Board of Directors of the Issuer. 
  
 “Capital Stock” means and includes (i) any and all shares, interests, participations or other equivalents
of or interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all membership
interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type. 
  
 “Restated Certificate of Incorporation” means the Restated Certificate of Incorporation of the Issuer as in effect on the Original Issue
Date, and as hereafter from time to time amended, modified, supplemented or restated in accordance with the terms hereof and thereof and pursuant to applicable law. 
  
 “Common Stock” means the Common Stock, $.01 par value, of the Issuer and any other Capital Stock into which such stock may hereafter be
changed. 
  
 “Common Stock Equivalent” means any Convertible Security or warrant,
option or other right to subscribe for or purchase any Additional Shares of Common Stock or any Convertible Security. 
  
 “Convertible Securities” means evidences of indebtedness, shares of Capital Stock or other Securities which are or may be at any time convertible into or exchangeable for Additional Shares of Common Stock.
The term “Convertible Security” means one of the Convertible Securities. 
  
 “Governmental Authority” means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether Federal, state or local, and whether
domestic or foreign. 
  
 “Holder” mean the Person who shall from time to time own
this Warrant. 

 
 13 

  
 “Independent Appraiser” means a nationally
recognized or major regional investment banking firm or firm of independent certified public accountants of recognized standing (which may not include the firm that regularly examines the financial statements of the Issuer) that is regularly engaged
in the business of appraising the Capital Stock or assets of corporations or other entities as going concerns, and which is not affiliated with either the Issuer or the Holder of any Warrant. 
  

“Issuer” means JLM Industries, Inc., a Delaware corporation, and its successors. 
  

“Original Issue Date” means August 26, 2002. 
  
 “Other Common Stock” means any other Capital Stock of the Issuer of any class which shall be authorized at any time after the date of this
Warrant (other than Common Stock) and which shall have the right to participate in the distribution of earnings and assets of the Issuer without limitation as to amount. 
  
 “OTC Bulletin Board” means the over-the-counter electronic bulletin board. 
  
 “Person” means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization,
joint venture, Governmental Authority or other entity of whatever nature. 
  
 “Per Share
Market Value” means on any particular date (a) the last sales price per share of the Common Stock on such date the Nasdaq National Market or other registered national stock exchange on which the Common Stock is then listed or if there is no
such price on such date, then the closing bid price on such exchange or quotation system on the date nearest proceeding such date, or (b) if the Common Stock is not listed then on The Nasdaq National Market or any registered national stock exchange,
the closing bid price for a share of Common Stock in the over-the-counter market, as reported by the OTC Bulletin Board or in the National Quotation Bureau Incorporated (or similar organization or agency succeeding to its functions of reporting
prices) at the close of business on such date, or (c) if the Common Stock is not then reported by the OTC Bulletin Board or the National Quotation Bureau Incorporated (or similar organization or agency succeeding to its functions of reporting
prices), then the average of the “Pink Sheet” quotes for the relevant conversion period, as determined in good faith by the holder, or (d) if the Common Stock is not then publicly traded, the fair market value of a share of Common Stock as
determined by an Independent Appraiser selected in good faith by the Holder; provided, however, that the Issuer, after receipt of the determination by such Independent Appraiser, shall have the right to select an additional Independent Appraiser, in
which case, the fair market value shall be equal to the average of the determinations by each such Independent Appraiser; and provided, further that all determinations of the Per Share Market Value shall be appropriately adjusted for any stock
dividends, stock splits or other similar transactions during such period. The Issuer shall pay all costs and expenses of each Independent Appraiser. The determination of fair market value by an Independent Appraiser shall be based upon the fair
market value of the Issuer determined on a going concern basis as between a willing buyer and a willing seller and taking into account all relevant factors determinative of value, and shall be final and binding on all parties. In determining the
fair market value of any shares of Common 

 
 14 

  
 Stock, no consideration shall be given to any restrictions on transfer of the
Common Stock imposed by agreement or by Federal or state securities laws, or to the existence or absence of, or any limitations on, voting rights. 
  
 “Registration Rights Agreement” has the meaning specified in Section 3(e) hereof. 
  

“Securities” means any debt or equity securities of the Issuer, whether now or hereafter authorized, any instrument convertible into
or exchangeable for Securities or a Security, and any option, warrant or other right to purchase or acquire any Security. 
  
 “Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute then in effect. 
  
 “Security” means one of the Securities. 
  
 “Subsidiary” means any corporation a majority of whose outstanding Voting Stock shall at the time be owned directly or indirectly by the
Issuer or by one or more of its Subsidiaries, or by the Issuer and one or more of its Subsidiaries. 
  
 “Trading Day” means (a) a day on which the Common Stock is traded on The Nasdaq National Market as reported by Bloomberg L.P., or (b) if the Common Stock is not listed on The Nasdaq National Market, a day on which
the Common Stock is traded on any other registered national stock exchange, or (c) if the Common Stock is not quoted on the OTC Bulletin Board, a day on which the Common Stock is quoted in the over-the-counter market as reported by the National
Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices); provided, however, that in the event that the Common Stock is not listed or quoted as set forth in (a), (b) and (c) hereof, then
Trading Day shall mean any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close. 

 
 “Term” has the meaning specified in Section 1 hereof. 
  
 “Warrant Value” shall be equal to (A) the aggregate Per Share Market Value of the Warrant Stock issuable
upon exercise of this Warrant (or the specified portion hereof) on the date of exercise, less (B) the aggregate Exercise Price of the Warrant Stock immediately prior to the exercise of the Warrant. 
  
 “Voting Stock”, as applied to the Capital Stock of any corporation, means Capital Stock of any class or
classes (however designated) having ordinary voting power for the election of a majority of the members of the Board of Directors (or other governing body) of such corporation, other than Capital Stock having such power only by reason of the
happening of a contingency. 

 
 15 

  
 “Warrant Price” means $1.20 per share, provided,
however, that if the Registration Statement (as defined in the Registration Rights Agreement) is not declared effective within one hundred twenty (180) days after the Filing Date, the Warrant Price shall be reduced by 1.5% and by an additional 1.5%
for each thirty day period thereafter until the Registration Statement has been declared effective, which shall be pro rated for such periods less than thirty (30) days. 
  
 “Warrant Share Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise
of this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof. 
  
 “Warrant Stock” means Common Stock issuable upon exercise of this Warrant. 
  
 8.  Other Notices.    In case at any time: 
  
 (A)  the Issuer shall make any distributions to the holders of Common Stock; or 
  
 (B)  the Issuer shall authorize the granting to all holders of its Common Stock of rights to subscribe for or purchase any shares of Capital Stock of any class or of any Common Stock
Equivalents or Convertible Securities or other rights; or 
  
 (C)  there shall be any
reclassification of the Capital Stock of the Issuer; or 
  
 (D)  there shall be any capital
reorganization by the Issuer; or 
  
 (E)  there shall be any (i) consolidation or merger
involving the Issuer or (ii) sale, transfer or other disposition of all or substantially all of the Issuer’s property, assets or business (except a merger or other reorganization in which the Issuer shall be the surviving corporation and its
shares of Capital Stock shall continue to be outstanding and unchanged and except a consolidation, merger, sale, transfer or other disposition involving a wholly-owned Subsidiary); or 
  
 (F)  there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Issuer or any partial liquidation of the Issuer or
distribution to holders of Common Stock; 
  
 then, in each of such cases, the Issuer shall give written notice to the Holder of the date on
which (i) the books of the Issuer shall close or a record shall be taken for such dividend, distribution or subscription rights or (ii) such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or
winding-up, as the case may be, shall take place. Such notice also shall specify the date as of which the holders of Common Stock of record shall participate in such dividend, distribution or subscription rights, or shall be entitled to exchange
their certificates for Common Stock for securities or other property deliverable upon such 

 
 16 

  
 reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or
winding-up, as the case may be. Such notice shall be given at least twenty days prior to the action in question and not less than twenty days prior to the record date or the date on which the Issuer’s transfer books are closed in respect
thereto. The Issuer shall give to the Holder notice of all meetings and actions by written consent of its stockholders, at the same time in the same manner as notice of any meetings of stockholders is required to be given to stockholders who do not
waive such notice (or, if such requires no notice, then two Trading Days written notice thereof describing the matters upon which action is to be taken). The Holder shall have the right to send two representatives selected by it to each meeting, who
shall be permitted to attend, but not vote at, such meeting and any adjournments thereof. This Warrant entitles the Holder to receive copies of all financial and other information distributed or required to be distributed to the holders of the
Common Stock. 
  
 9.  Amendment and Waiver.    No term, covenant, agreement or
condition in this Warrant may be amended, or compliance therewith waived (either generally or in a particular instance and either retroactively or prospectively), without a written instrument or written instruments executed by the Issuer and the
Holder. 
  
 10.  Governing Law.    THIS WARRANT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.  
  
 11.  Notices.    Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earlier
of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified for notice prior to 5:00 p.m., New York City time, on a business day, (ii) the business day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified for notice later than 5:00 p.m., New York City time, on any date and earlier than 11:59 p.m., New York City time, on such date,
(iii) the business day following the date of mailing, if sent by nationally recognized overnight courier service or (iv) actual receipt by the party to whom such notice is required to be given. The addresses for such communications shall be with
respect to the Holder of this Warrant or of Warrant Stock issued pursuant hereto, addressed to such Holder at its last known address or facsimile number appearing on the books of the Issuer maintained for such purposes, or with respect to the
Issuer, addressed to: 
  
 JLM Industries, Inc. 
 8675 Hidden River Parkway 
 Tampa, FL 33637

 Attn: Chief Financial Officer 
 Tel.: (813) 632-3300 
 Fax: (813) 632-3301 
  
 or to such other address or addresses or facsimile number or numbers as any such party may most recently have designated in writing to the other parties hereto by such notice. Copies of notices to the
Holder shall be sent to: 

 
 17 

  
 Brown Raysman Millstein Felder & Steiner LLP 

900 Third Avenue 
 New York, New York
10022 
 Attn.: David M. Warburg, Esq. 
 Tel.: (212) 895-2240 
 Fax: (212) 895-2900 
  
 12.  Warrant Agent.    The Issuer shall, by written notice to each Holder of this Warrant, appoint an agent having an office in New
York, New York for the purpose of issuing shares of Warrant Stock on the exercise of this Warrant pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant to subsection (d) of Section 2 hereof or replacing this Warrant
pursuant to subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such agent. 
  

13.  Remedies.    The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or
threatened default by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the
specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise. 
  
 14.  Successors and Assigns.    This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and assigns of the Issuer, the Holder hereof
and (to the extent provided herein) the holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any such Holder hereof or holder of Warrant Stock. 
  
 15.  Modification and Severability.    If, in any action before any court or agency legally empowered to enforce any provision
contained herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency. If any such provision is not enforceable as set forth in the
preceding sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein. 
  
 16.  Headings.    The headings of the Sections of this Warrant are for convenience of reference only
and shall not, for any purpose, be deemed a part of this Warrant. 
  
 IN WITNESS WHEREOF, the Issuer has
executed this Warrant as of the day and year first above written. 
  
 
	 JLM INDUSTRIES, INC.
 
	 
	 By:
 	 	 /s/    MICHAEL MOLINA 
 

	  	 	 Michael Molina
 Chief Financial
Officer
 

 

 
 18 

  
  
 EXERCISE FORM 
  
 JLM INDUSTRIES, INC. 
  
 The undersigned             , pursuant to the provisions of the within Warrant, hereby elects to purchase
             shares of Common Stock of              covered by the within Warrant. 
  
 
	 
	 Signature:
 	 	  
 

	 
	 Address:
 	 	  
 

	 
	  	 	 

 
  
 Dated: 
  
 ASSIGNMENT 
  
 FOR VALUE RECEIVED,            hereby sells, assigns and transfers unto            the within Warrant and all
rights evidenced thereby and does irrevocably constitute and appoint            , attorney, to transfer the said Warrant on the books of the within named corporation. 

 
 
	 
	 Signature:
 	 	  
 

	 
	 Address:
 	 	  
 

	 
	  	 	 

 
  
 Dated: 
  
 PARTIAL ASSIGNMENT 
  
 FOR VALUE RECEIVED,            hereby sells, assigns and transfers unto            the right to
purchase        shares of Warrant Stock evidenced by the within Warrant together with all rights therein, and does irrevocably constitute and
appoint                , attorney, to transfer that part of the said Warrant on the books of the within named corporation. 
  
 
	 
	 Signature:
 	 	  
 

	 
	 Address:
 	 	  
 

	 
	  	 	 

 
  
 Dated: 

  
 FOR USE BY THE ISSUER ONLY: 
  

This Warrant No. W-    cancelled (or transferred or exchanged) this    day
of                ,            , shares of Common Stock issued therefor in the name
of                                , Warrant No. W-    issued
for            shares of Common Stock in the name
of                                .Deed of trust, dated August 26, 2002

  
 Exhibit 10.4 
  
 PREPARED BY AND UPON RECORDATION RETURN TO: 
  
 Brown Raysman Millstein Felder & Steiner LLP 
 900 Third Avenue 
 New York, New York 10022 
 Attention: David
M. Warburg, Esq. 
  
 STATE OF NORTH CAROLINA 
 COUNTY OF NEW HANOVER 
  
 DEED OF TRUST 
  
 THIS DEED of TRUST (this “Deed of Trust”) made this 26th day of
August, 2002, by JLM REALTY, INC., a North Carolina corporation, having an address c/o JLM Industries, Inc., 8675 Hidden River Parkway, Tampa, Florida 33637 (“Grantor”) to JAMES L. SEAY, JR., having its mailing address c/o Seay Law Firm,
519 Market Street, Wilmington, North Carolina 28401 (“Trustee”) and to THE PHILIP S. SASSOWER 1996 CHARITABLE REMAINDER ANNUITY TRUST, having an address c/o Mr. Philip Sassower, 135 East 57th Street, New York, New York 10022
(“Beneficiary”). 
  
 The designation “Grantor”, “Trustee” and “Beneficiary”
as used herein shall include said parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine or neuter as required by context. 
  
 WITNESSETH, That whereas Grantor is indebted to Beneficiary in the principal sum of TWO MILLION AND 00/100 DOLLARS ($2,000,000.00), as evidenced by a Secured Promissory
Note of even date herewith (the “Note”), the terms of which are incorporated herein by reference. The final due date for payment of said Note, if not sooner paid, is December 31, 2002. 
  

NOW, THEREFORE, as security for said indebtedness, advancements and other sums expended by Beneficiary pursuant to this Deed of Trust and costs of collection and other
valuable consideration, the receipt of which is hereby acknowledged, Grantor has bargained, sold, given, granted and conveyed and does by these presents bargain, sell, give, grant and convey to said Trustee, his heirs, or successors, and assigns,
the parcel(s) of land situated in New Hanover County, North Carolina, and more particularly described in Schedule A (the “Land”) attached hereto and made a part hereof; 
  
 TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All
replacements and additions shall also be covered by this Deed of Trust. All of the foregoing, together with the Land is referred to in this Deed of Trust as the “Premises.” 
  
 TO HAVE AND TO HOLD said Premises with all privileges and appurtenances thereunto belonging, to said Trustee, his heirs, successors, and assigns forever, upon the trusts,
terms and conditions and for the uses hereinafter set forth, 
  
 If Grantor shall pay the Note secured hereby in
accordance with its terms, together with interest thereon, and any renewals or extensions thereof in whole or in part, all other sums secured hereby and shall comply with all of the covenants, terms and conditions of this Deed of Trust, then this
conveyance shall be null and void and may be cancelled of record at the request and the expense of Grantor. If however, there shall be any default (a) in the payment of any sums due under the Note in accordance with its terms, this Deed of Trust in
accordance with its terms, or any other instrument securing the Note, and such default is not cured prior to the expiration of the applicable notice or grace period, if any or (b) in any of the other covenants, terms or conditions of the Note
secured hereby, this 

  
 Deed of Trust, or any other instrument securing Note and such default is not cured prior to the
expiration of the applicable notice or grace period, if any, then without further notice, it shall be lawful for and the duty of the Trustee, upon request of Beneficiary, to sell the land herein conveyed in accordance with paragraph 12 hereof.

  
 The proceeds of the sale shall be applied to costs of sale, including, but not limited to, costs of collection of
taxes, assessments, costs of recording, service fees and incidental expenditures, the amount due on the Note hereby secured and advancements and other sums expended by Beneficiary according to the provisions hereof and otherwise as required by the
then existing law relating to foreclosures. 
  
 And the said Grantor does hereby covenant and agree with the Trustee
as follows: 
  
 1.    PAYMENT OF PRINCIPAL AND INTEREST; PREPAYMENT AND LATE CHARGES. 
  
 Grantor shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges
due under the Note. 
  
 2.    APPLICATION OF PAYMENTS. 
  
 Unless applicable law provides otherwise, all payments received by Beneficiary under paragraph 1 shall be applied: first, to any prepayment charges due under the Note;
second, to interest due; third, to principal due, and last, to any late charges due under the Note. 
  
 3.    INSURANCE. 
  
 Grantor shall keep all improvements on said land, now
or hereafter erected, constantly insured for the benefit of Beneficiary against loss by fire, windstorm and such other casualties and contingencies, in such manner and in such companies and for such amounts, not less than that amount necessary to
pay the sum secured by this Deed of Trust, and as may be satisfactory to Beneficiary, Grantor shall purchase such insurance, pay all premiums therefore, and shall deliver to Beneficiary such policies along with evidence of premium payment as long as
the Note secured hereby remains unpaid. If Grantor fails to purchase insurance, pay premiums thereof or deliver said policies along with evidence of payment of premiums thereon, then Beneficiary, at its option, may purchase such Insurance. Such
amounts paid by Beneficiary shall be added to the principal of the Note secured by this Deed of Trust, and shall be due and payable upon demand of Beneficiary. All proceeds from any insurance so maintained shall at the option of Beneficiary be
applied to the debt secured hereby and if payable in installments, applied in the inverse order of maturity of such installments or in the repair or reconstruction of any improvements located upon the Premises. 
  
 4.    TAXES, ASSESSMENTS, CHARGES. 
  
 Grantor shall pay all taxes, assessments and charges as may be lawfully levied against said Premises within 30 days after the same shall become due. In the event that Grantor fails to so pay all taxes,
assessments and charges as herein required, then Beneficiary, at its option, may pay the same and the amounts so paid shall be added to the principal of the Note secured by this Deed of Trust, and shall be due and payable upon demand of Beneficiary.

  
 If Beneficiary determines that any part of the Premises is subject to a lien not approved by Beneficiary which
may attain priority over this Deed of Trust, Beneficiary may give Grantor a notice identifying the lien. Grantor shall satisfy the lien, to Beneficiary’s satisfaction, within 10 days of the giving of notice. 
  
 5.    ASSIGNMENTS OF RENTS AND PROFITS. 
  
 Grantor assigns to Beneficiary, in the event of default, all rents and profits from the land and any improvements, to rent same, at any reasonable rate of rent determined by Beneficiary, and after
deducting from any such rent the cost or reletting and collection, to apply the remainder to the debt secured hereby. 
  
 6.    PARTIAL RELEASE. 
  
 Grantor shall not be entitled to the partial
release of any of the above described property 

  
 without the prior written consent of Beneficiary. Notwithstanding anything herein contained, Grantor
shall not be entitled to any release of property unless Grantor is not in default and is in full compliance with all of the terms and provisions of the Note, this Deed of Trust, and any other instrument that maybe securing said Note. 

 
 7.    WASTE. 
  
 Grantor covenants that it will keep the Premises herein conveyed in as good order, repair and condition as they are now, reasonable wear and tear excepted, and will comply with comply with all governmental requirements
respecting the Premises or their use, and that it will not commit or permit any waste. 
  
 8.    COMDENMNATION.

  
 In the event that any or all of the Premises shall be condemned and taken under the power of eminent domain,
Grantor shall give immediate written notice to Beneficiary and Beneficiary shall have the right to receive and collect all damages awarded by reason of such taking, and the right to such damages hereby is assigned to Beneficiary who shall have the
discretion to apply the amount so received, or any part thereof, to the indebtedness due hereunder and if payable in installments, applied in the inverse order or maturity of such installments, or to any alteration, repair or restoration of the
Premises by Grantor. 
  
 9.    INSPECTION. 
  
 Beneficiary or its agent may make reasonable entries upon and inspections of the Premises. Beneficiary shall give Grantor notice at the time of or prior to an inspection
specifying reasonable cause for the inspection. 
  
 10.    WARRANTIES. 
  
 Grantor covenants with Trustee and Beneficiary it is the owner of the Premises in fee simple, has the right to convey the same in fee
simple, that title is marketable and fee and clear of all encumbrances, and that it will warrant and defend the title against the lawful claims of all persons whomsoever, except for the exceptions hereinafter stated. Title to the property
hereinabove described is subject to the following exceptions, if any: 
  
 any portion of the Premises lying below the
mean high water mark of the Cape Fear River; any utility easements affecting the Premises; any rights of way affecting the Premises 
  
 11.    TRUSTEE’S FEES; SUBSTITUTE TRUSTEE. 
  
 Grantor shall pay all
costs, fees and expenses incurred by Trustee and Trustee’s agents and counsel in connection with the performance by Trustee of Trustee’s duties hereunder and all such costs, fees and expenses shall be secured by this Deed of Trust.

  
 Trustee shall be under no duty to take any action hereunder except as expressly required hereunder or by law, or
to perform any act which would involve Trustee in any expense or liability or to institute or defend any suit in respect hereof, unless properly indemnified to Trustee’s reasonable satisfaction. Trustee, by acceptance of this Deed of Trust,
covenants to perform and fulfill the trusts herein created, being liable, however, only for willful negligence or misconduct, and hereby waives any statutory fee and agrees to accept reasonable compensation, in lieu thereof, for any services
rendered by Trustee in accordance with the terms hereof. Beneficiary may remove Trustee at any time or from time to time and select a successor trustee. In the event of the death, removal, resignation, refusal to act, or inability to act of Trustee,
or in his sole discretion for any reason whatsoever, Beneficiary may, without notice and without specifying any reason therefor and without applying to any court, select and appoint a successor trustee, by an instrument recorded wherever this Deed
of Trust is recorded and all powers, rights, duties and authority of Trustee, as aforesaid, shall thereupon become vested in such successor. Such substitute trustee shall not be required to give bond for the faithful performance of the duties of
Trustee hereunder unless required by Beneficiary. The procedure provided for in this paragraph for substitution of Trustee shall be in addition to and not in exclusion of any other provisions for substitution, by law or otherwise. 

  
 12.    POWER OF SALE. 
  

Upon the occurrence of a default, Trustee, or the agent or successor of Trustee, at the request of Beneficiary, shall sell or offer for sale the Premises in such
portions, order and parcels as Beneficiary may determine with or without having first taken possession of same, to the highest bidder for cash at one or more public auctions in accordance with the terms and provisions of the law of the State in
which the Premises is located. Such sale shall be made at the area within the courthouse of the county in which the Premises (or any 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 secured present at such sale) which is designated by the applicable court of such County as the area in which public sales are to take place, or, if no such area is
designated, at the area at the courthouse designated in the notice of sale as the area in which the sale will take place, on such day and at such times as permitted under applicable law of the State where the Premises is located, after advertising
the time, place and terms of sale and that portion of the Premises in accordance with such law, and after having served written or printed notice of the proposed sale by certified mail on each Grantor obligated to pay the Note and other secured
indebtedness secured by this Deed of Trust according to the records of Beneficiary in accordance with applicable law. The affidavit of any person having knowledge of the facts to the effect that such service was completed shall be prima facie
evidence of the fact of service. 
  
 At any such public sale, Trustee may execute and deliver in the name of Grantor
to the purchaser a conveyance of the Premises or any part of the Premises in fee simple. In the event of any sale under this Deed of Trust by virtue of the exercise of the powers herein granted, or pursuant to any order in any judicial proceeding or
otherwise, the Premises may be sold in its entirety or in separate parcels and in such manner or order as Beneficiary in its sole discretion may elect, and if Beneficiary so elects, Trustee may sell the personal property covered by this Deed of
Trust at one or more separate sales in any manner permitted by the Uniform Commercial Code of the State in which the Premises is located, and one or more exercises of the powers herein granted shall not extinguish or exhaust such powers, until all
the Premises is sold or the Note and other secured indebtedness is paid in full. If the Note and other secured indebtedness is now or hereafter further secured by any chattel Deed of Trusts, pledges, contracts or guaranty, assignments of lease, or
other Deed of Trusts, Beneficiary at its option may exhaust the remedies granted under any of said Deed of Trusts either concurrently or independently, and in such order as Beneficiary may determine. 
  
 Upon any foreclosure sale or sales of all or any portion of the Premises under the power herein granted, Beneficiary may bid for and
purchase the Premises and shall be entitled to apply all or any part of the debt as a credit to the purchase price. 
  
 In the event of a foreclosure or a sale of all or any portion of the Premises under the power herein granted, the proceeds of said sale shall be applied, in whatever order Beneficiary in its sole discretion may decide, to the
expenses of such sale and of all proceedings in connection therewith (including, without limitation, attorneys’ fees and expenses), to fees and expenses of Trustee (including, without limitation, Trustee’s attorneys’ fees and
expenses), to insurance premiums, liens, assessments, taxes and charges (including, without limitation, utility charges advanced by Beneficiary), to payment of the outstanding principal balance of the debt, and to the accrued interest on all of the
foregoing; and the remainder, if any, shall be paid to Grantor, or to the person or entity lawfully entitled thereto. 
  
 13.    SALE OF PREMISES. 
  
 Grantor agrees that if the Premises or any
part thereof or interest therein is sold, assigned, transferred, conveyed or otherwise alienated by Grantor, whether voluntarily or involuntarily or by operation of law, without the prior written consent of Beneficiary, Beneficiary, at its own
option, may declare the Note secured hereby and all other obligations hereunder to be forthwith due and payable. Any change in the legal or equitable title of the Premises or in the beneficial ownership of the Premises, including the sale,
conveyance or disposition of a majority interest in Grantor if a corporation or partnership, whether or not of record and whether or not for consideration, shall be deemed to be the transfer of an interest in the Premises. 
  
 If Beneficiary exercises this option, Beneficiary shall give Grantor notice of acceleration. The notice shall provide a period of not less
than 30 days from the date the notice is delivered or mailed within which Grantor must pay all sums secured by this Deed of Trust. If Grantor fails to pay these sums prior to the expiration of this period, Beneficiary may invoke any remedies
permitted by this Deed of Trust without further notice or demand on Grantor. 

  
 14.    ADVANCEMENTS. 
  

If Grantor shall fail to perform any of the covenants or obligations contained herein or in any other instrument given as additional security for the Note secured
hereby, Beneficiary may, but without obligation, make advances to perform such covenants or obligations, and all such sums so advanced shall be added to the principal sum, shall bear interest at the rate provided in the Note secured hereby for sums
due after default and shall be due from Grantor on demand of Beneficiary. No advancement or anything contained in this paragraph shall constitute a waiver by Beneficiary or prevent such failure to perform from constituting an event of default.

  
 15.    INDEMNITY. 
  
 If any suit or proceeding be brought against the Trustee or Beneficiary or if any suit or proceeding be brought which may affect the value or title of the Premises, Grantor shall defend, indemnify and
hold harmless and on demand reimburse Trustee or Beneficiary from any loss, cost, damage or expense and any sums expended by Trustee or Beneficiary shall bear interest as provided in the Note secured hereby for sums due after default and shall be
due and payable on demand 
  
 16.    WAIVERS. 
  
 Grantor waives all rights to require marshalling of assets by the Trustee or Beneficiary, and to the extent permitted by applicable law, waives and releases any error or
defects in proceedings to enforce this Deed of Trust, and hereby waives the benefit of any present or future laws providing for stay of execution, extension of time, exemption from attachment, levy and sale, and homestead exemption. 

 
 No delay or omission of the Trustee or Beneficiary in the exercise of any right, power or remedy arising under the Note or this
Deed of Trust shall be deemed a wavier of any default or acquiescence therein or shall impair or waive the exercise of such right, power or remedy by Trustee or Beneficiary at any other time. 
  

17.    CIVIL ACTION. 
  
 In the
event that the Trustee is named as a party to any civil action as Trustee in this Deed of Trust, the Trustee shall be entitled to employ an attorney at law, to represent Trustee in said action and the reasonable attorneys’ fee of the Trustee in
such action shall be paid by Beneficiary and added to the principal of the Note secured by this Deed of Trust and bear interest at the rate provided in the Note for sums due after default. 
  

18.    PRIOR LIENS. 
  
 Default
under the terms of any instrument secured by a lien to which this Deed of Trust is subordinate shall constitute default hereunder. 
  
 19.    OTHER TERMS. 
  
 This Deed of Trust is given to secure not only
existing obligations but also future advances made within ten (10) years of the date of this Deed of Trust to the same extent as if such future advances are made on the date of the execution of this Deed of Trust. The principal amount (including any
future advances) that may be so secured may decrease or increase from time to time, but the total amount so secured at any one time shall not exceed the maximum principal amount of $3,000,000.00 plus all interest, costs, reimbursements, fees, and
expenses due under this Deed of Trust and Secured hereby, Grantor shall not execute any document that impairs or otherwise impacts the priority of any future advances secured by this Deed of Trust. The amount of present obligations secured hereby is
$2,000,000.00. 
  
 20.    SALE OF NOTE. 
  
 The Note or a partial interest in the Note (together with this Deed of Trust) may be sold one or more times without prior notice to Grantor. 

  
 21.    HAZARDOUS SUBSTANCES. 
  
 Grantor represents and warrants to Beneficiary that: (i) no Hazardous Substance (as hereinafter defined) has, been or is intended to be
used, manufactured, generated, stored, treated or processed at the Premises, (ii) no Hazardous Substance has, been, or is intended to be, spilled, released, discharged, disposed, placed or otherwise caused to be found in, on, over, under or from any
portion of the Premises, and (iii) no Hazardous Substance has, been, or is intended to be, used in the construction, alteration, repair or replacement of all or any portion of the Premises. Grantor represents that it has not received any notice of
any violation of any applicable law governing the use, manufacture, generation, storage, treatment, transportation or processing of Hazardous Substances which remains outstanding as of the date hereof. Grantor further represents that no actions,
suits or proceedings have been commenced, or are pending or, to the best knowledge of Grantor, are threatened, with respect to any applicable law governing the use, manufacture, storage, treatment, transportation or processing of any Hazardous
Substances. 
  
 Grantor covenants that it has not and shall not (i) cause or permit the presence, use, disposal,
storage, or release of any Hazardous Substances on or in the Premises or (ii) do, nor allow anyone else to do, anything affecting the Premises that is in violation of any Environmental Law. 
  
 Whether or not it has knowledge of any Hazardous Substance at the Premises, Grantor covenants that it shall (i) keep or cause the Premises to be kept free of all Hazardous
Substances except to the extent stored and/or used in compliance with all applicable laws, (ii) not cause or permit, as the result of any intentional or unintentional act or omission on the part of Grantor, its agents, employees, tenants, subtenants
or other occupants of the Premises, the release of Hazardous Substances in, on, over, under, to or from any portion of the Premises or onto any contiguous real property except to the extent any such release is in full compliance with all applicable
laws, (iii) promptly, upon gaining knowledge thereof, notify the Beneficiary of the presence of any Hazardous Substances in or on the Premises, and/or the release of any Hazardous Substances in, on, over, under or from any portion of the Premises,
not in compliance with all applicable laws, and (iv) promptly, upon gaining knowledge thereof, notify the Beneficiary of any request for information or any inspection of the Premises by any governmental authority with respect to any Hazardous
Substances and provide the Beneficiary with copies of such request and any response to any such request or inspection. 
  
 Grantor covenants that it shall conduct and complete all investigations, studies, sampling and testing (and promptly shall provide the Beneficiary with copies of any such studies and the results of any such test) and all remedial,
removal and other actions necessary to clean up and remove all Hazardous Substances in, on, over, under, from or affecting the Premises in accordance with all such applicable laws, to the reasonable satisfaction of the Beneficiary. 

 
 Grantor shall defend, indemnify and hold harmless the Beneficiary, and its successors and assigns, and each of their employees,
agents, officers and directors, from and against any claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature, known or unknown, contingent or otherwise, including, without limitation,
attorneys’ and consultants’ fees and disbursements and investigation and laboratory fees, arising out of, or in any way related to: (i) the presence, disposal, release or threat of release of any Hazardous Substance in, on, over, under,
from or affecting the Premises or the soil, water, vegetation, or individuals thereon; (ii) any personal injury (including wrongful death, disease or other health condition related to or caused by, in whole or in part, any Hazardous Substance) or
property damage (real or personal) arising out of or related to any Hazardous Substance; (iii) any action, suit or proceeding brought or threatened, or government order relating to such Hazardous Substance; and/or (iv) any violation of any
applicable law which is based on or in any way related to any Hazardous Substance and the cost of any work performed and materials furnished in order to comply therewith. This indemnification shall survive the termination of this Deed of Trust by
repayment of the debt, foreclosure or otherwise. 
  
 Grantor shall promptly give Beneficiary written notice of any
investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Premises and any Hazardous Substance or Environmental Law of which Grantor has actual knowledge. If Grantor learns, or is
notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Premises is necessary, Grantor shall promptly take all necessary remedial actions in accordance with Environmental
Law. 

  
 As used in this paragraph 21, “Hazardous Substances” are those
substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos
or formaldehyde, and radioactive materials. As used in this paragraph 21, “Environmental Law” means federal laws and laws of the jurisdiction where the Premises is located that relate to health, safety or environmental protection.

  
 22.    EVENT OF DEFAULT 
  
 The occurrence of any one or more of the following events shall constitute an “Event of Default” under this Deed of Trust: (1) a breach by Grantor of any
representation or warranty set forth in the Note, this Deed of Trust, and any other document securing the Note; and (2) the occurrence of a default and the expiration of any cure period applicable thereto under the Note, this Deed of Trust, and any
other document securing the Note. 
  
 23.    ACCELERATION; REMEDIES. 
  
 Beneficiary shall give notice to Grantor prior to acceleration following Grantor’s breach of any covenant or agreement in this
Deed of Trust (but not prior to acceleration under paragraph 13 unless applicable law provides otherwise). Beneficiary shall notify Grantor of, among other things. (a) the default; (b) the action required to cure the default; (c) when the default
must be cured; and (d) that failure to cure the default as specified may result in acceleration of the sums secured by this Deed of Trust, foreclosure by judicial proceeding and/or the sale of the Premises. If the default is not cured as specified,
Beneficiary at its option may require immediate payment in full of all sums secured by this Deed of Trust without further demand and may foreclose this Deed of Trust by judicial proceeding. Beneficiary shall be entitled to collect all expenses
incurred in pursuing the remedies provided in this paragraph 23, including, but not limited to, attorneys’ fees and costs of title evidence to the extent permitted by applicable law. 
  

24.    INTEREST RATE AFTER JUDGMENT. 
  
 Grantor agrees that the interest rate payable after a judgment is entered on the Note or in an action of mortgage foreclosure shall be the rate payable from time to time under the Note. 
  
 25.    NOTICES. 
  
 Unless otherwise provided, all notices required or permitted under this Deed of Trust shall be in writing and shall be deemed effectively given (i) on the day delivered or transmitted to the party to be notified in the case
of notices delivered by hand or by facsimile, (in the event confirmation is received) (ii) upon confirmed delivery by Federal Express or other nationally recognized courier service providing next-business-day delivery, or (iii) three business days
after deposit with the United States Postal Service, by registered or certified mail, postage prepaid and addressed to the party to be notified, in each case at the address set forth below, or at such other address as such party may designate by
written notice to the other party (provided that notice of change of address shall be effective upon receipt by the party to whom such notice is addressed) 
  
 If sent to Beneficiary, notices shall be sent to the following address: 
  
 The Philip S. Sassower 1996 Charitable Remainder Annuity Trust 
 c/o Mr. Philip Sassower 
 135 East 57th Street 
 New York, New York
10022 
 Tel: (212) 759-1909 
 Fax: (212) 319-4930 
  
 with a copy to: 
  
 Brown Raysman Millstein Felder & Steiner LLP 
 900 Third Avenue 
 New York, New York 10022 
 Attn.: David M. Warburg, Esq. 
 Tel: (212) 895-2240 

 Fax: (212) 895-2900 
  
 If sent to Grantor, notices shall be sent to the following address: 
  
 JLM Industries, Inc. 
 8675 Hidden River Parkway 
 Tampa, FL 33637 
 Attn.: Chief Financial
Officer 
 Tel.: (813) 632-3300 
 Fax: (813) 632-3301 
  
 26.    INAPPLICABLE PROVISIONS. 
  
 If any term, covenant or condition of the Note or this Deed of Trust is held to be invalid, illegal or unenforceable in any respect, the
Note and this Deed of Trust shall be construed without such provision. 
  
 27.    CONFLICT. 

 
 In the event of a conflict between the terms of this Deed of Trust and terms of the Note, at Beneficiary’s option, the
terms of the Note shall govern. 
  
 28.    HEADINGS, ETC. 
  

The headings and captions of various paragraphs of this Deed of Trust are for convenience of reference only and are not to be construed as defining or limiting, in any
way, the scope or intent of the provisions hereof. 
  
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

  
 IN WITNESS WHEREOF, Grantor has hereunto set its hand and seal, or if corporate,
has caused this instrument to be signed in its corporate name by its duly authorized officers and its seal to be hereunto affixed by authority of its Board of Directors, the day and year first above written. 
  
 (USE BLACK INK ONLY) 
  
 
	 JLM REALTY, INC.
 
	 
	 By:
 	 	 /s/    MICHAEL MOLINA  
 

	  	 	 Michael Molina  
 Chief Financial Officer
 

 
  
 State of
                                        
         
  
 City or County of
                                 
  
 I,
                                        
            , a Notary Public of the County or City and State aforesaid, certify that Michael Molina personally appeared before me this day and acknowledged that he is Chief Financial
Officer of JLM Realty, Inc., a Delaware corporation (the “Corporation”), and that by authority duly given and as the act of the Corporation, the foregoing instrument was signed in its corporate name by him as its duly authorized official,
such execution being made for, on behalf of, and in the name of Grantor. 
  
 Witness my hand and official stamp or
seal, this          day of August, 2002. 
  
                                      
                 
 Notary Public 
 My Commission Expires:                 
  
 Stamp/Seal 

  
 SCHEDULE A 
 (Legal Description) 
  

  
 JLM REALTY, INC., as grantor 
 (Grantor) 
  
 to JAMES L. SEAY, JR., as trustee 

(Trustee) 
  
 for the benefit of

  
 THE PHILIP S. SASSOWER 1996 CHARITABLE REMAINDER ANNUITY TRUST, as beneficiary 
 (Beneficiary) 
  
 
 
 DEED OF TRUST 
  
 
 
  
 Dated: August 26, 2002 
  
 Location: New Hanover County, North Carolina 
  
 PREPARED BY AND UPON 
 RECORDATION RETURN TO: 
  
 Brown Raysman
Millstein Felder & Steiner LLP 
 900 Third Avenue 
 New
York, New York 10022 
 Attention: David M. Warburg, Esq. 
 [822204/001]

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