Document:

exv10w1w49

Exhibit 10.1.49

EXECUTION COPY

 

 

SECURITY AGREEMENT

dated as of October 8, 2010

between

MIRANT MARSH LANDING, LLC,

as the Grantor

and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Collateral Agent

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE I DEFINITIONS, ETC.
	 	 	1	 
	1.01. Certain Uniform Commercial Code Terms
	 	 	1	 
	1.02. Certain Definitions and Principles of Construction and Interpretation
	 	 	1	 
	1.03. Additional Definitions
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II REPRESENTATIONS AND WARRANTIES
	 	 	4	 
	2.01. Names, Etc.
	 	 	4	 
	2.02. Changes in Circumstances
	 	 	4	 
	2.03. [Reserved]
	 	 	4	 
	2.04. Deposit Accounts and Securities Accounts
	 	 	4	 
	2.05. Commercial Tort Claims
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III COLLATERAL
	 	 	4	 
	 
	 	 	 	 
	ARTICLE IV ACCOUNTS
	 	 	6	 
	 
	 	 	 	 
	ARTICLE V FURTHER ASSURANCES; REMEDIES
	 	 	6	 
	5.01. Delivery and Other Perfection
	 	 	6	 
	5.02. Other Financing Statements or Control
	 	 	7	 
	5.03. Preservation of Rights
	 	 	7	 
	5.04. Special Provisions Relating to Certain Collateral
	 	 	7	 
	5.05. Remedies
	 	 	8	 
	5.06. Deficiency
	 	 	10	 
	5.07. Locations; Names, Etc.
	 	 	10	 
	5.08. Private Sale
	 	 	10	 
	5.09. Application of Proceeds
	 	 	11	 
	5.10. Attorney-in-Fact
	 	 	11	 
	5.11. Perfection and Recordation
	 	 	11	 
	5.12. Termination
	 	 	11	 
	5.13. Release of Liens
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI MISCELLANEOUS
	 	 	12	 
	6.01. Waiver
	 	 	12	 
	6.02. Notices
	 	 	12	 
	6.03. Expenses
	 	 	12	 
	6.04. Amendments, Etc.
	 	 	12	 
	6.05. Successors and Assigns
	 	 	12	 

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	6.06. Marshalling
	 	 	12	 
	6.07. Captions
	 	 	13	 
	6.08. Counterparts; Integration; Effectiveness
	 	 	13	 
	6.09. Governing Law; Jurisdiction; Etc.
	 	 	13	 
	6.10. Agents and Attorneys-in-Fact
	 	 	14	 
	6.11. Severability
	 	 	14	 
	6.12. Non-Recourse
	 	 	14	 
	6.13. Collateral Agent
	 	 	15	 

	 	 	 	 	 
	Annexes	 	 	 	 
	ANNEX A

	 	-
	 	Filing Details
	ANNEX B

	 	-
	 	Accounts
	ANNEX C

	 	-
	 	Commercial Tort Claims

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          This SECURITY AGREEMENT (this “Agreement”) dated as of October 8, 2010, between
MIRANT MARSH LANDING, LLC, a limited liability company duly organized under the laws of the State
of Delaware (the “Grantor”) and DEUTSCHE BANK TRUST COMPANY AMERICAS, in its capacity as
collateral agent (in such capacity, together with its successors in such capacity, the
“Collateral Agent”) under the Collateral Agency Agreement referred to below.

          The Grantor may from time to time obtain credit and other financial accommodations from the
Secured Parties pursuant to the Credit Agreement dated as of October 8, 2010 among the Grantor, the
lenders party thereto, the Collateral Agent, Deutsche Bank Trust Company Americas, in its capacity
as depositary bank (in such capacity, together with its successors in such capacity, the
“Depositary Bank”) and The Royal Bank of Scotland plc, as administrative agent (in such
capacity, together with its successors in such capacity, the “Administrative Agent” (the
“Credit Agreement”). In addition, the Grantor may from time to time be obligated to
various Permitted Swap Counterparties in respect of one or more Permitted Swap Agreements under and
as defined in the Credit Agreement.

          The Grantor, the Collateral Agent, the Depositary Bank, and the Administrative Agent are
parties to the Collateral Agency and Intercreditor Agreement dated as of October 8, 2010 (the
“Collateral Agency Agreement”).

          To induce the Secured Parties to extend such credit and other financial accommodations, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Grantor has agreed to grant a security interest in the Collateral (as hereinafter
defined) as security for the Secured Obligations.

          Accordingly, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS, ETC.

          1.01. Certain Uniform Commercial Code Terms. As used herein, the terms
“Accession”, “Account”, “As-Extracted Collateral”, “Chattel Paper”,
“Commodity Account”, “Commodity Contract”, “Deposit Account”,
“Document”, “Electronic Chattel Paper”, “Equipment”, “Fixture”,
“General Intangible”, “Goods”, “Instrument”, “Inventory”,
“Investment Property”, “Letter-of-Credit Right”, “Payment Intangible”,
“Proceeds”, “Promissory Note”, “Software” and “Tangible Chattel
Paper” have the respective meanings set forth in Article 9 of the NYUCC, and the terms
“Certificated Security”, “Entitlement Holder”, “Financial Asset”,
“Instruction”, “Securities Account”, “Security”, “Security
Certificate”, “Security Entitlement” and “Uncertificated Security” have the
respective meanings set forth in Article 8 of the NYUCC.

          1.02. Certain Definitions and Principles of Construction and Interpretation. Each
term defined in the Credit Agreement and used herein without definition has the meaning assigned to
such term in the Credit Agreement. The principles of construction
and interpretation set forth in Sections 1.02 and 1.03 of the Credit Agreement shall apply to,
and are hereby incorporated by reference in, this Agreement.

Security Agreement

 

 

          1.03. Additional Definitions. In addition, as used herein, the following terms will
have the meanings assigned below:

          “Administrative Agent” has the meaning assigned to such term in the introductory
paragraphs hereof.

          “Agreement” has the meaning assigned to such term in the introductory paragraphs
hereof.

          “Agreement Collateral” means, collectively, without limitation, the Assigned
Agreements and (i) all rights of the Grantor to receive moneys due and to become due under or
pursuant to the Assigned Agreements, (ii) all rights of the Grantor to receive proceeds of any
insurance, indemnity, warranty or guaranty with respect to the Assigned Agreements, (iii) claims of
the Grantor for damages arising out of or for breach of or default under the Assigned Agreements
and (iv) the right of the Grantor to terminate the Assigned Agreements, to perform thereunder and
to compel performance and otherwise exercise all remedies thereunder.

          “Assigned Agreements” means, collectively, all agreements, contracts and documents,
including each Project Document to which the Grantor is now or may hereafter become a party, in
each case as such agreements may be amended, amended and restated, supplemented or otherwise
modified from time to time.

          “Collateral” has the meaning assigned to such term in Section 3.

          “Collateral Agency Agreement” has the meaning assigned to such term in the
introductory paragraphs hereof.

          “Collateral Agent” has the meaning assigned to such term in the introductory
paragraphs hereof.

          “Copyright Collateral” means all Copyrights, whether now owned or hereafter acquired
by the Grantor.

          “Copyrights” means all copyrights, copyright registrations and applications for
copyright registrations, including all renewals and extensions thereof, all rights to recover for
past, present or future infringements thereof and all other rights whatsoever accruing thereunder
or pertaining thereto.

          “Credit Agreement” has the meaning assigned to such term in the introductory
paragraphs hereof.

          “Grantor” has the meaning assigned to such term in the introductory paragraphs hereof.

          “Intellectual Property” means, collectively, all Copyright Collateral, all Patent
Collateral and all Trademark Collateral, together with (a) all inventions, processes, production
methods, proprietary information, know-how and trade secrets; (b) all licenses or user or other
agreements granted to the Grantor with respect to any of the foregoing, in each case whether now

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or hereafter owned or used; (c) all information, customer lists, identification of suppliers, data,
plans, blueprints, specifications, designs, drawings, recorded knowledge, surveys, engineering
reports, test reports, manuals, materials standards, processing standards, performance standards,
catalogs, computer and automatic machinery software and programs; (d) all field repair data, sales
data and other information relating to sales or service of products now or hereafter manufactured;
(e) all accounting information and all media in which or on which any information or knowledge or
data or records may be recorded or stored and all computer programs used for the compilation or
printout of such information, knowledge, records or data; (f) all authorizations now held or
hereafter held by the Grantor in respect of any of the items listed above; and (g) all causes of
action, claims and warranties now or hereafter owned or acquired by the Grantor in respect of any
of the items listed above.

          “Non-Recourse Parties” has the meaning assigned to such term in Section 6.12.

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

          “Patent Collateral” means all Patents, whether now owned or hereafter acquired by the
Grantor and all income, royalties, damages and payments now or hereafter due and/or payable under
or with respect thereto.

          “Patents” means all patents and patent applications, including the inventions and
improvements described and claimed therein together with the reissues, divisions, continuations,
renewals, extensions and continuations-in-part thereof, all income, royalties, damages and payments
now or hereafter due and/or payable with respect thereto, all damages and payments for past or
future infringements thereof and rights to sue therefor, and all rights corresponding thereto
throughout the world.

          “Secured Obligation Event of Default” shall have the meaning assigned to such term in
the Collateral Agency Agreement.

          “Secured Obligation Documents” shall have the meaning assigned to such term in the
Collateral Agency Agreement.

          “Secured Obligations” shall have the meaning assigned to such term in the Collateral
Agency Agreement.

          “Trademark Collateral” means all Trademarks, whether now owned or hereafter acquired
by the Grantor, together, in each case, with the product lines and goodwill of the business
connected with the use of, and symbolized by, each such trade name, trademark and service mark.
Notwithstanding the foregoing, the Trademark Collateral does not and shall not include any
Trademark that would be rendered invalid, abandoned, void or unenforceable by reason of its being
included as part of the Trademark Collateral.

          “Trademarks” means all trade names, trademarks and service marks, logos, trademark and
service mark registrations, and applications for trademark and service mark registrations,
including all renewals of trademark and service mark registrations, all rights to

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recover for all past, present and future infringements thereof and all rights to sue therefor, and all rights
corresponding thereto throughout the world.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

          The Grantor represents and warrants to the Collateral Agent (on behalf of the Secured Parties)
that:

          2.01. Names, Etc. The full and correct legal name, type of organization, jurisdiction
of organization and organizational ID number (if applicable) of the Grantor as of the date hereof
are correctly set forth in Annex A. Said Annex A correctly specifies (a) the place
of business of the Grantor or, if the Grantor has more than one place of business, the location of
the chief executive office of the Grantor and (b) each location where any financing statement
naming the Grantor as debtor is currently on file.

          2.02. Changes in Circumstances. The Grantor has not (a) within the period of four
months prior to the date hereof, changed its location (as defined in Section 9-307 of the NYUCC),
(b) except as specified in Annex A, heretofore changed its name, or (c) become a “new
debtor” (as defined in Section 9-102(a)(56) of the NYUCC) with respect to a currently effective
security agreement previously entered into by any other Person.

          2.03. [Reserved].

          2.04. Deposit Accounts and Securities Accounts. Annex B sets forth a complete
and correct list of all Deposit Accounts, Securities Accounts and Commodity Accounts of the Grantor
on the date hereof.

          2.05. Commercial Tort Claims. Annex C sets forth a complete and correct list
of all commercial tort claims of the Grantor in existence on the date hereof.

ARTICLE III

COLLATERAL

          As collateral security for the payment in full when due (whether at stated maturity, by
acceleration or otherwise) and performance of the Secured Obligations, the Grantor hereby pledges
and grants to the Collateral Agent for the benefit of the Secured Parties a security interest in
all of the Grantor’s right, title and interest in, to and under the following property, in each
case whether tangible or intangible, wherever located, and whether now owned by the Grantor or
hereafter acquired and whether now existing or hereafter coming into existence (all of the property
described in this Section 3 being collectively referred to herein as the “Collateral”):

               (i) all Accounts;

               (ii) all As-Extracted Collateral;

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               (iii) all Chattel Paper;

               (iv) all Deposit Accounts;

               (v) all Documents;

               (vi) all Equipment;

               (vii) all Fixtures;

               (viii) all General Intangibles;

               (ix) all Goods not covered by the other clauses of this Section 3;

               (x) all Agreement Collateral;

               (xi) all Instruments, including all Promissory Notes;

               (xii) all Intellectual Property;

               (xiii) all Inventory;

               (xiv) all Investment Property not covered by other clauses of this Section 3, including all
Securities, all Securities Accounts and all Security Entitlements with respect thereto and
Financial Assets carried therein, and all Commodity Accounts and Commodity Contracts (including
without limitation the accounts referred to in Section 2.02 of the Collateral Agency Agreement);

               (xv) all Letter-of-Credit Rights;

               (xvi) all commercial tort claims, as defined in Section 9-102(a)(13) of the NYUCC, arising out
of the events described in Annex C;

               (xvii) all additional indebtedness from time to time owed to the Grantor and the instruments,
if any, evidencing such indebtedness, and all interest, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in exchange for any or
all of such indebtedness;

               (xviii) all other tangible and intangible personal property whatsoever of the Grantor; and

               (xix) all Proceeds of any of the Collateral, all Accessions to and substitutions and
replacements for, any of the Collateral, and all offspring, rents, profits and products of any of
the Collateral, and, to the extent related to any Collateral, all books, correspondence, credit
files, records, invoices and other papers (including all tapes, cards, computer runs and other
papers and documents in the possession or under the control of the Grantor or any computer bureau
or service company from time to time acting for the Grantor),

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          IT BEING UNDERSTOOD, HOWEVER, that (A) in the case of any of the foregoing that consists
of general or limited partnership interests in a general or limited partnership, the security
interest hereunder shall be deemed to be created only to the maximum extent permitted under the
applicable organizational instrument pursuant to which such partnership is formed, (B) in no event
shall the security interest granted under this Section 3 attach to any lease, license,
contract, property rights or agreement to which the Grantor is a party (or to any of its rights or
interests thereunder) if the grant of such security interest would constitute or result in either
(i) the abandonment, invalidation or unenforceability of any right, title or interest of the
Grantor therein or (ii) in a breach or termination pursuant to the terms of, or a default under,
any such lease, license, contract, property rights or agreement (other than to the extent that any
such term would be rendered ineffective by Section 9-406, 9-407, 9-408 or 9—409 of the Uniform
Commercial Code as in effect in the relevant jurisdiction), and (C) in the case of any Governmental
Approval which by its terms or in the case of any Governmental Approval or any of the other
foregoing property which by operation of Applicable Law would become void, voidable, terminable,
revocable or otherwise violated if mortgaged, pledged or assigned hereunder or if a security
interest therein was granted hereunder (or which Applicable Law prohibits the mortgaging, pledging
or assigning or granting of a security interest therein) is expressly excepted and excluded from
the Collateral to the extent necessary to avoid such voidness, voidability, terminability,
revocability, violation or prohibition.

ARTICLE IV

ACCOUNTS

          Except as otherwise provided in the Collateral Agency Agreement, all Collateral constituting
Investment Property or Financial Assets and all cash proceeds of any Collateral will, at all times,
be held in one or more of the Accounts (as defined in the Credit Agreement) established and
maintained in accordance with the Collateral Agency Agreement.

ARTICLE V

FURTHER ASSURANCES; REMEDIES

          In furtherance of the grant of the security interest pursuant to Section 3, the
Grantor agrees with the Collateral Agent for the benefit of the Secured Parties as follows:

          5.01. Delivery and Other Perfection. The Grantor shall promptly from time to time
give, execute, deliver, file, record, authorize or obtain all such financing statements,
continuation statements, notices, instruments, documents, agreements or consents or other papers as
may be necessary or reasonably requested the Collateral Agent to create, preserve, perfect,
maintain the perfection of or validate the security interest granted pursuant hereto or to enable
the Collateral Agent to exercise and enforce the covenants hereunder with respect to such security
interest, and without limiting the foregoing, shall:

     (a) if any of the Investment Property or Financial Assets constituting part of the
Collateral are received by the Grantor, forthwith (x) deliver to the Collateral Agent any
certificates or instruments representing or evidencing the same, duly endorsed in

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blank or accompanied by such instruments of assignment and transfer in such form and
substance as the Collateral Agent may reasonably request, all of which thereafter shall be
held by the Collateral Agent, pursuant to the terms of this Agreement, as part of the
Collateral and (y) take such other action as the Collateral Agent may reasonably deem
necessary or appropriate to duly record or otherwise perfect the security interest created
hereunder in such Collateral;

     (b) promptly from time to time deliver to the Collateral Agent any and all Instruments
constituting part of the Collateral, endorsed and/or accompanied by such instruments of
assignment and transfer in such form and substance as the Collateral Agent may reasonably
request; provided that so long as no Secured Obligation Event of Default shall have
occurred and be continuing, the Grantor may retain for collection in the ordinary course any
Instruments received by the Grantor in the ordinary course of business and the Collateral
Agent shall, promptly upon request of the Grantor, make appropriate arrangements for making
any Instrument delivered by the Grantor available to the Grantor for purposes of
presentation, collection or renewal (any such arrangement to be effected, to the extent
requested by the Collateral Agent, against trust receipt or like document); and

     (c) permit representatives of the Collateral Agent, upon reasonable advance notice,
during normal business hours of the Grantor to examine and make copies from its books and
records pertaining to the Collateral, and forward copies of any notices or communications
received by the Grantor with respect to the Collateral to the Secured Parties, all in such
manner as the Collateral Agent may require (acting reasonably).

     For the sake of clarity, the Collateral Agent has the right (but not the obligation) to do any
of the foregoing.

          5.02. Other Financing Statements or Control. Except as otherwise permitted under each
Secured Obligation Document, the Grantor shall not (a) file or suffer to be on file, or authorize
or permit to be filed or to be on file, in any jurisdiction, any financing statement or like
instrument with respect to any of the Collateral in which the Collateral Agent is not named as the
sole secured party for the benefit of the Secured Parties, or (b) cause or permit any Person other
than the Collateral Agent to have “control” (as defined in Section 9-104, 9-105, 9-106 or 9-107 of
the NYUCC) of any Deposit Account, Securities Account, Electronic Chattel Paper, Investment
Property or Letter-of-Credit Right constituting part of the Collateral.

          5.03. Preservation of Rights. The Collateral Agent shall not be required to take
steps necessary to preserve any rights against prior parties to any of the Collateral.

          5.04. Special Provisions Relating to Certain Collateral.

          (a) Assigned Agreements. Anything herein to the contrary notwithstanding, (a) the
Grantor shall remain liable under the contracts and agreements included in the Grantor’s Collateral
to the extent set froth therein to perform all of its duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (b) the exercise by the Collateral Agent of any
of the rights hereunder shall not release the Grantor from any of its duties or

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

          (b) Intellectual Property.

               (i) For the purpose of enabling the Collateral Agent to exercise rights and remedies under
Section 5.05 at such time as the Collateral Agent shall be lawfully entitled to exercise such
rights and remedies, and for no other purpose, the Grantor hereby grants to the Collateral Agent,
to the extent assignable, an irrevocable, non-exclusive license (exercisable without payment of
royalty or other compensation to the Grantor) to use, assign, license or sublicense any of the
Intellectual Property now owned or hereafter acquired by the Grantor, wherever the same may be
located, including in such license reasonable access to all media in which any of the licensed
items may be recorded or stored and to all computer programs used for the compilation or printout
thereof.

               (ii) Notwithstanding anything contained herein to the contrary, but subject to any provision
of the Secured Obligation Documents that limits the rights of the Grantor to dispose of their
property, so long as no Secured Obligation Event of Default shall have occurred and be continuing,
the Grantor will be permitted to exploit, use, enjoy, protect, license, sublicense, assign, sell,
dispose of or take other actions with respect to the Intellectual Property in the ordinary course
of the business of the Grantor. In furtherance of the foregoing, so long as no Secured Obligation
Event of Default shall have occurred and be continuing, the Collateral Agent shall from time to
time, upon the request of the Grantor, execute and deliver any instruments, certificates or other
documents, in the form so requested, that the Grantor shall have certified are appropriate in its
judgment to allow it to take any action permitted above (including relinquishment of the license
provided pursuant to clause (i) immediately above as to any specific Intellectual Property).
Further, upon the occurrence of the Termination Date, or earlier expiration of this Agreement or
release of the Collateral, the Collateral Agent shall grant back to the Grantor the license granted
pursuant to clause (i) immediately above. The exercise of rights and remedies under Section 5.05
by the Collateral Agent shall not terminate the rights of the holders of any licenses or
sublicenses theretofore granted by the Grantor in accordance with the first sentence of this clause
(ii).

          5.05. Remedies.

          (a) Rights and Remedies Generally upon an Event of Default. If a Secured Obligation
Event of Default shall have occurred and is continuing, the Collateral Agent shall have all of the
rights and remedies with respect to the Collateral of a secured party under the NYUCC (whether or
not the NYUCC is in effect in the jurisdiction where the rights and remedies are asserted) and such
additional rights and remedies to which a secured party is entitled under the laws in effect in any
jurisdiction where any rights and remedies hereunder may be asserted, including the right, to the
fullest extent permitted by law, to exercise, without notice
of any kind (except as provided in this Agreement), all voting, consensual and other powers of
ownership pertaining to the Collateral as if the Collateral Agent were the sole and absolute

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owner thereof (and the Grantor agrees to take all such action as may be appropriate to give
effect to such right); and without limiting the foregoing:

               (i) the Collateral Agent in its discretion may, in its name or in the name of the
Grantor or otherwise, demand, sue for, collect or receive any money or other property at any
time payable or receivable on account of or in exchange for any of the Collateral, but shall
be under no obligation to do so;

               (ii) the Collateral Agent may make any reasonable compromise or settlement deemed
desirable with respect to any of the Collateral and may extend the time of payment, arrange
for payment in installments, or otherwise modify the terms of, any of the Collateral;

               (iii) the Collateral Agent may require the Grantor to notify (and the Grantor hereby
authorizes the Collateral Agent so to notify) each account debtor in respect of any Account,
Chattel Paper or General Intangible, and each obligor on any Instrument, constituting part
of the Collateral that such Collateral has been assigned to the Collateral Agent hereunder,
and to instruct that any payments due or to become due in respect of such Collateral shall
be made directly to the Collateral Agent or as it may direct (and if any such payments, or
any other Proceeds of Collateral, are received by the Grantor they shall be held in trust by
the Grantor for the benefit of the Collateral Agent and as promptly as possible remitted or
delivered to the Collateral Agent for application as provided herein);

               (iv) the Collateral Agent may require the Grantor to assemble the Collateral at such
place or places, reasonably convenient to the Collateral Agent and the Grantor, as the
Collateral Agent may direct (acting reasonably);

               (v) the Collateral Agent may apply the Accounts (as defined in the Credit Agreement)
and any money or other property therein to payment of the Secured Obligations in accordance
with Section 3.06 of the Collateral Agency Agreement;

               (vi) the Collateral Agent may occupy any premises owned or leased by any of the
Grantors where the Collateral or any part thereof is assembled or located for a reasonable
period in order to effectuate its rights and remedies hereunder or under law, without
obligation to the Grantor in respect of such occupation; and

               (vii) the Collateral Agent may sell, lease, assign or otherwise dispose of all or any
part of the Collateral, at such place or places as the Collateral Agent deems best, and for
cash or for credit or for future delivery (without thereby assuming any credit risk), at
public or private sale, without demand of performance or notice of intention to effect any
such disposition or of the time or place thereof (except such notice as is required by
applicable statute and cannot be waived), and the Collateral Agent or any other Secured
Party or anyone else may be the purchaser, lessee, assignee or recipient of any or all of
the Collateral so disposed of at any public sale (or, to the extent permitted by law, at any
private sale) and thereafter hold the same absolutely, free from any claim or right of
whatsoever kind, including any right or equity of redemption (statutory or

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otherwise), of the Grantor, any such demand, notice and right or equity being hereby
expressly waived and released. In the event of any sale, assignment, or other disposition
of any of the Trademark Collateral, the goodwill connected with and symbolized by the
Trademark Collateral subject to such disposition shall be included. The Collateral Agent
may, without notice or publication, adjourn any public or private sale or cause the same to
be adjourned from time to time by announcement at the time and place fixed for the sale, and
such sale may be made at any time or place to which the sale may be so adjourned.

          The Proceeds of each collection, sale or other disposition under this Section 5.05, including
by virtue of the exercise of any license granted to the Collateral Agent in Section 5.04(b), shall
be applied in accordance with Section 5.09.

          (b) Certain Securities Act Limitations. The Grantor recognize that, by reason of
certain prohibitions contained in the Securities Act of 1933, as amended, and applicable state
securities laws, the Collateral Agent may be compelled, with respect to any sale of all or any part
of the Collateral, to limit purchasers to those who will agree, among other things, to acquire the
Collateral for their own account, for investment and not with a view to the distribution or resale
thereof. The Grantor acknowledge that any such private sales may be at prices and on terms less
favorable to the Secured Parties than those obtainable through a public sale without such
restrictions, and, notwithstanding such circumstances, agree that any such private sale shall be
deemed to have been made in a commercially reasonable manner and that the Collateral Agent shall
have no obligation to engage in public sales and no obligation to delay the sale of any Collateral
for the period of time necessary to permit the issuer thereof to register it for public sale.

          (c) Notice. The Grantor agree that to the extent the Collateral Agent is required by
applicable law to give reasonable prior notice of any sale or other disposition of any Collateral,
10 days’ notice shall be deemed to constitute reasonable prior notice.

          5.06. Deficiency. If the proceeds of sale, collection or other realization of or
upon the Collateral pursuant to Section 5.05 are insufficient to cover the costs and expenses of
such realization and the payment in full of the Secured Obligations, the Grantor shall remain
liable for any deficiency.

          5.07. Locations; Names, Etc. Without at least 30 days’ prior written notice to the
Collateral Agent, the Grantor shall not (i) change its location (as defined in Section 9-307 of the
NYUCC) or (ii) change its name from its current legal name.

          5.08. Private Sale. The Secured Parties shall incur no liability as a result of the
sale of the Collateral, or any part thereof, at any private sale pursuant to Section 5.05 conducted
in a commercially reasonable manner. The Grantor hereby waives any claims against the Secured
Parties arising by reason of the fact that the price at which the Collateral may have been sold at
such a private sale was less than the price that might have been obtained at a public sale or
was less than the aggregate amount of the Secured Obligations, even if the Collateral Agent accepts
the first offer received and does not offer the Collateral to more than one offeree.

Security Agreement

 - 10 - 

 

          5.09. Application of Proceeds. Except as otherwise herein expressly provided, the
Proceeds of any collection, sale or other realization of all or any part of the Collateral pursuant
hereto, and any other cash at the time held by the Secured Parties under Section 4 or this Section
5, shall be applied in accordance with the Collateral Agency Agreement.

          5.10. Attorney-in-Fact. Without limiting any rights or powers granted by this
Agreement to the Collateral Agent while no Secured Obligation Event of Default has occurred and is
continuing, upon the occurrence and during the continuance of any Secured Obligation Event of
Default the Collateral Agent is hereby appointed the attorney-in-fact of the Grantor for the
purpose of carrying out the provisions of this Section 5 and taking any action and executing any
instruments that the Collateral Agent may deem necessary or advisable to accomplish the purposes
hereof, which appointment as attorney-in-fact is irrevocable and coupled with an interest. Without
limiting the generality of the foregoing, so long as the Collateral Agent shall be entitled under
this Section 5 to make collections in respect of the Collateral, the Collateral Agent shall have
the right and power to receive, endorse and collect all checks made payable to the order of the
Grantor representing any dividend, payment or other distribution in respect of the Collateral or
any part thereof and to give full discharge for the same.

          5.11. Perfection and Recordation. The Grantor authorizes the Collateral Agent to
file Uniform Commercial Code financing statements describing the Collateral as “all assets” or “all
personal property and fixtures” of the Grantor (provided that no such description shall be deemed
to modify the description of Collateral set forth in Section 3). Unless as directed by the Grantor
or the Administrative Agent in writing (and subject to clause (d) of Section 9.03(a) of the Credit
Agreement) to prepare, file or record any financing statement, continuation statement or ensure the
preparation, filing or recording of the same, the Collateral Agent has no obligation to prepare,
file or record any financing statement, continuation statement or other instrument or ensure the
preparation, filing or recording of the same.

          5.12. Termination. Upon the occurrence of the Termination Date, this Agreement shall
terminate, and the Collateral Agent shall forthwith cause to be assigned, transferred and
delivered, against receipt but without any recourse, warranty or representation whatsoever, any
remaining Collateral and money received in respect thereof, to or on the order of the Grantor and
to be released and canceled all licenses and rights referred to in Section 5.04(b). The Collateral
Agent shall also, at the expense of the Grantor, execute and deliver to the Grantor upon such
termination such Uniform Commercial Code termination statements and such other documentation as
shall be reasonably requested by the Grantor to effect the termination and release of the Liens on
the Collateral as required by this Section 5.12.

          5.13. Release of Liens. The Collateral Agent shall release any Lien covering any
asset that has been disposed of in accordance with the provisions of the Secured Obligation
Documents (as directed by the Administrative Agent).

Security Agreement

 - 11 - 

 

ARTICLE VI

MISCELLANEOUS.

          6.01. Waiver. No failure on the part of any Secured Party to exercise and no delay
in exercising, and no course of dealing with respect to, any right, power or privilege under this
Agreement or any other Secured Obligation Document shall operate as a waiver of such right, remedy,
power or privilege, and no single or partial exercise of any right, power or privilege under this
Agreement or any other Secured Obligation Document shall preclude any other or further exercise of
such right, remedy, power or privilege, or the exercise of any other right, power or privilege.
The remedies provided in this Agreement are cumulative and not exclusive of any remedies provided
by law.

          6.02. Notices. All notices, requests and other communications provided for in this
Agreement (including any modifications of, or waivers or consents under, this Agreement) shall be
made in accordance with Section 9.01 of the Credit Agreement.

          6.03. Expenses. The Grantor agrees to reimburse each of the Secured Parties for all
reasonable and documented out-of-pocket costs and expenses of the Secured Parties (including,
without limitation, the reasonable fees and expenses of legal counsel but limited to one counsel
and one financial advisor to the Lenders) in connection with (a) any Secured Obligation Event of
Default and any enforcement or collection proceeding against the Grantor Pledgor resulting from a
Secured Obligation Default or a Secured Obligation Event of Default or in connection with the
negotiation of any restructuring or “work-out” (whether or not consummated) of the obligations of
the Borrower under this Agreement and (b) the enforcement of this Section 6.03, and all such costs
and expenses shall be Secured Obligations entitled to the benefits of the collateral security
provided pursuant to Section 3.

          6.04. Amendments, Etc. The terms of this Agreement may be amended, supplemented,
waived or otherwise modified only by an instrument in writing duly executed by the Grantor and the
Collateral Agent (acting in accordance with the Collateral Agency Agreement). Any such amendment,
supplement, waiver or modification shall be binding upon the Collateral Agent and each Secured
Party, each holder of any of the Secured Obligations and the Grantor. Any waiver shall be
effective only in the specific instance and for the specified purpose for which it was given.

          6.05. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns (provided that the Grantor shall not assign or transfer its
rights or obligations hereunder without the prior written consent of the Collateral Agent).

          6.06. Marshalling. Neither the Collateral Agent nor any Secured Party shall be under
any obligation to marshal any assets in favor of the Grantor or any other party or against or in
payment of any or all of the Secured Obligations.

 Security Agreement

 - 12 - 

 

          6.07. Captions. The table of contents and captions and Section headings appearing in
this Agreement are included solely for convenience of reference and are not intended to affect the
interpretation of any provision of this Agreement.

          6.08. Counterparts; Integration; Effectiveness. This Agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be an original, but all
the counterparts together shall constitute one and the same instrument and any of the parties
hereto may execute this Agreement by signing any such counterpart. This Agreement and the other
Secured Obligation Documents constitute the entire agreement and understanding among the parties to
this Agreement with respect to the matters covered by this Agreement and the other Secured
Obligation Documents and supersede any and all prior agreements and understandings, written or
oral, with respect to such matters. This Agreement shall become effective at such time as
counterparts of this Agreement have been signed and delivered by all of the intended parties to
this Agreement.

          6.09. Governing Law; Jurisdiction; Etc.

          (a) Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

          (b) Submission to Jurisdiction. Any legal action or proceeding with respect to this
Agreement or any other Financing Document shall, except as provided in clause (d) below, be brought
in the courts of the State of New York in the County of New York or of the United States for the
Southern District of New York and, by execution and delivery of this Agreement, each party hereto
hereby irrevocably accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. Each party hereto agrees that a
judgment, after exhaustion of all available appeals, in any such action or proceeding shall be
conclusive and binding upon it, and may be enforced in any other jurisdiction, including by a suit
upon such judgment, a certified copy of which shall be conclusive evidence of the judgment.

          (c) Waiver of Venue. Each party hereto hereby irrevocably waives any objection that
it may now have or hereafter have to the laying of the venue of any suit, action or proceeding
arising out of or relating to this Agreement or any other Financing Document brought in the Supreme
Court of the State of New York, County of New York or in the United States District Court for the
Southern District of New York, and hereby further irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an inconvenient forum.

          (d) Rights of the Secured Parties. Nothing in this Section 6.09 shall limit the right
of the Secured Parties to refer any claim against the Grantor to any court of competent
jurisdiction outside of the State of New York, nor shall the taking of proceedings by any Secured
Party before the courts in one or more jurisdictions preclude the taking of proceedings in any
other jurisdiction whether concurrently or not.

          (e) Waiver of Jury Trial. THE GRANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, EACH
OF THE SECURED PARTIES HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,

 Security Agreement

 - 13 - 

 

ACTION OR CAUSE OF ACTION ARISING UNDER ANY FINANCING DOCUMENT OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY
FINANCING DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND THE GRANTOR AND, BY
ACCEPTABLE OF THE BENEFITS HERETO, EACH OF THE SECURED PARTIES HEREBY AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND
THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH
ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT
TO TRIAL BY JURY.

          6.10. Agents and Attorneys-in-Fact. The Collateral Agent may employ agents and
attorneys-in-fact in connection herewith and shall not be responsible for the negligence or
misconduct of any such agents or attorneys-in-fact selected by it in good faith.

          6.11. Severability. If any provision hereof is invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (a) the other provisions hereof shall
remain in full force and effect in such jurisdiction and shall be liberally construed in favor of
the Secured Parties in order to carry out the intentions of the parties hereto as nearly as may be
possible and (b) the invalidity or unenforceability of any provision hereof in any jurisdiction
shall not affect the validity or enforceability of such provision in any other jurisdiction.

          6.12. Non-Recourse. Notwithstanding anything herein or in any other Transaction
Document to the contrary, the obligations of the Grantor under this Agreement, and any certificate,
notice, instrument or document delivered pursuant hereto, are obligations solely of the Grantor and
do not constitute a debt or obligation of (and no recourse shall be made with respect to) the
Parent or such Affiliates (collectively, the “Non-Recourse Parties”), except as hereinafter set
forth in this Section or as expressly provided in any Transaction Document to which such
Non-Recourse Party is a party. No action under or in connection with this Agreement or any other
Financing Document to which the Grantor is a party shall be brought against any Non-Recourse Party,
and no judgment for any deficiency upon the obligations hereunder or thereunder shall be obtainable
by any Secured Party against any Non-Recourse Party, except as hereinafter set forth in this
Section or as expressly provided in any Transaction Document to which such Non-Recourse Party is a
party. Notwithstanding any of the foregoing, it is expressly understood and agreed that nothing
contained in this Section shall in any manner or way (i) restrict the remedies available to any
Agent or Secured Party to realize upon the Collateral or under any Transaction Document, or
constitute or be deemed to be a release of the obligations secured by (or impair the enforceability
of) the Liens and security interests and possessory rights created by or arising from any
Financing Document or (ii) release, or be deemed to release, any Non-Recourse Party from
liability for its own fraudulent actions, gross negligence or willful misconduct or from any of its
obligations or liabilities under any Transaction Document to which such Non-Recourse Party is a
party.

 Security Agreement

 - 14 - 

 

          6.13. Collateral Agent. Notwithstanding anything else to the contrary herein,
whenever reference is made in this Agreement to any discretionary action by, consent, designation,
specification, requirement or approval of, notice, request or other communication from, or other
direction given or action to be undertaken or to be (or not to be) suffered or omitted by the
Collateral Agent or to any election, decision, opinion, acceptance, use of judgment, expression of
satisfaction or other exercise of discretion, rights or remedies to be made (or not to be made) by
the Collateral Agent, it is understood that in all cases the Collateral Agent shall be fully
justified in failing or refusing to take any such action under this Agreement if it shall not have
received such written instruction, advice or concurrence of the Administrative Agent (acting in
accordance with the Credit Agreement and other Financing Documents), as it deems appropriate. This
provision is intended solely for the benefit of the Collateral Agent and its successors and
permitted assigns and is not intended to and will not entitle the other parties hereto to any
defense, claim or counterclaim, or confer any rights or benefits on any party hereto.

[Remainder of page intentionally left blank]

 Security Agreement

 - 15 - 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed
and delivered as of the day and year first above written.

	 	 	 	 	 
	 	GRANTOR:

MIRANT MARSH LANDING, LLC

 	 
	 	By:  	/s/ G. Gary Garcia
 	 
	 	 	Name:  	G. Gary Garcia 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

 Signature Page to Security Agreement 

 

 

	 	 	 	 	 
	 	COLLATERAL AGENT:

DEUTSCHE BANK TRUST COMPANIES AMERICAS, 

not it its individual capacity but solely as Collateral Agent

 	 
	 	By:  	/s/ Wanda Camacho
 	 
	 	 	Name:  	Wanda Camacho 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	                                              /s/ Yana Kislenko
 	 
	 	 	Name:  	Yana Kislenko 	 
	 	 	Title:  	Assistant Vice President 	 
	 

 Signature Page to Security Agreement 

 

 

ANNEX A

FILING DETAILS

	 	 	 	 	 
	 	 	 	 	Jurisdiction of
	Legal Name	 	Type of Organization	 	Organization
	Mirant Marsh Landing, LLC

	 	Limited liability company
	 	Delaware

Annex A to Security Agreement

 

 

ANNEX B

ACCOUNTS

	 	 	 	 	 
	Name	 	Bank	 	Account #
	Mirant- Construction Account
	 	Deutsche Bank National Trust Company	 	S60655.1
	Mirant- Operating Account
	 	Deutsche Bank National Trust Company	 	S60655.2
	Mirant- Revenue Account
	 	Deutsche Bank National Trust Company	 	S60655.3
	Mirant- Debt Service Reserve Account
	 	Deutsche Bank National Trust Company	 	S60655.4
	Mirant- Interest Payment Account
	 	Deutsche Bank National Trust Company	 	S60655.5
	Mirant- Principal Payment Account
	 	Deutsche Bank National Trust Company	 	S60655.6
	Mirant- Insurance/Condemnation Proceeds Account
	 	Deutsche Bank National Trust Company	 	S60655.7
	Mirant- Distribution Account
	 	Deutsche Bank National Trust Company	 	S60655.8
	Mirant- Major Maintenance Account
	 	Deutsche Bank National Trust Company	 	S60655.9
	Mirant- Prepayment Account
	 	Deutsche Bank National Trust Company	 	S60655.10
	Mirant Marsh Landing, LLC
	 	Bank of America, N.A.	 	4426939162

Annex B to Security Agreement

 

 

ANNEX C

COMMERCIAL TORT CLAIMS

None.

Annex A to Security Agreementexv10w1w50

Exhibit 10.1.50

EXECUTION COPY

 

PLEDGE AGREEMENT

made by

MIRANT MARSH LANDING HOLDINGS, LLC,

as the Pledgor,

MIRANT MARSH LANDING, LLC,

as the Borrower,

and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Collateral Agent

 

Dated as of October 8, 2010

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. Definitions
	 	 	1	 
	SECTION 2. Pledge and Security Interest
	 	 	2	 
	SECTION 3. Security for Secured Obligations
	 	 	3	 
	SECTION 4. Representations and Warranties
	 	 	3	 
	SECTION 5. Covenants
	 	 	6	 
	SECTION 6. Continued Perfection of Security Interest
	 	 	7	 
	SECTION 7. Pledgor’s Rights
	 	 	8	 
	SECTION 8. Obligations of the Pledgor and Rights of Collateral Agent
	 	 	9	 
	SECTION 9. Remedies of Collateral Agent
	 	 	10	 
	SECTION 10. Collateral Agent Appointed Attorney in Fact
	 	 	12	 
	SECTION 11. Indemnity and Expenses
	 	 	12	 
	SECTION 12. Security Interest Absolute
	 	 	12	 
	SECTION 13. Amendments; Etc.
	 	 	13	 
	SECTION 14. Address for Notices
	 	 	13	 
	SECTION 15. Continuing Assignment; Pledge and Security Interest; Release
	 	 	13	 
	SECTION 16. Severability
	 	 	13	 
	SECTION 17. Headings
	 	 	13	 
	SECTION 18. Governing Law; Jurisdiction; Etc
	 	 	13	 
	SECTION 19. Execution in Counterparts
	 	 	14	 
	SECTION 20. Additional Pledgors
	 	 	14	 
	SECTION 21. Non Recourse
	 	 	15	 
	SECTION 22. Applicability of other Secured Obligation Documents
	 	 	15	 
	SECTION 23. Borrower’s Consent and Covenants
	 	 	15	 

i

 

	 	 	 

	ANNEX 1

	 	- Membership Interests
	ANNEX 2

	 	- Filing Details
	ANNEX 3

	 	- New Debtor Events
	EXHIBIT A

	 	- Form of Assumption Agreement

 

 

PLEDGE AGREEMENT

          PLEDGE AGREEMENT, dated as of October 8, 2010 (this “Agreement”), among MIRANT MARSH
LANDING HOLDINGS, LLC, a Delaware limited liability company (the “Pledgor”), MIRANT MARSH
LANDING, LLC, a Delaware limited liability company (the “Borrower”) and DEUTSCHE BANK TRUST
COMPANY AMERICAS, in its capacity as collateral agent for the Secured Parties (the “Collateral
Agent”).

W I T N E S S E T H:

          WHEREAS, the Borrower, the Collateral Agent, Deutsche Bank Trust Company Americas, in its
capacity as depositary bank (in such capacity, together with its successors in such capacity, the
“Depositary Bank”) and The Royal Bank of Scotland plc, as administrative agent (in such
capacity, together with its successors in such capacity, the “Administrative Agent”) and
the lenders party thereto are entering into the Credit Agreement dated as of October 8, 2010 (as
amended, modified or supplemented from time to time, the “Credit Agreement”), providing
for, subject to the terms and conditions thereof, Loans and other extensions of credit to be made
to the Borrower to finance the Development. In addition, the Borrower may from time to time be
obligated to various Permitted Swap Counterparties in respect of one or more Permitted Swap
Agreements.

          WHEREAS, the Pledgor owns, directly, all the membership interests in the Borrower and will
benefit from the making of the Loans and other extensions of credit, in each case, to the Borrower
for the Development.

          WHEREAS, it is a condition precedent to Closing Date that Pledgor shall have executed and
delivered, and granted the Liens provided for in, this Agreement.

A G R E E M E N T

          NOW THEREFORE, to induce the Secured Parties to enter into, and to extend credit under, the
Financing Documents and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Pledgor hereby agrees with the Collateral Agent as follows:

          SECTION 1. Definitions.

          (a) For all purposes of this Agreement, (i) capitalized terms not otherwise defined herein
shall have the meanings set forth in the Credit Agreement and (ii) the principles of construction
set forth in Sections 1.02 and 1.03 of the Credit Agreement shall apply.

          (b) Except for the terms defined in this Agreement or in the Credit Agreement, all terms
defined in Article 8 or 9 of the Uniform Commercial Code of the State of New York which are used in
this Agreement shall have the meaning specified in such Articles.

          In addition, the following terms shall have the meanings herein specified:

 

 

          “Borrower Operating Agreement” shall mean the Amended and Restated Limited Liability
Company Agreement, dated as of August 19, 2010, between the Borrower and the Pledgor.

          “Collateral” shall have the meaning provided in Section 2.

          “Federal Securities Law” shall have the meaning provided in Section 9(f).

          “Financing Statements” shall have the meaning provided in Section 4(g).

          “Membership Interests” shall have the meaning provided in Section 2(a).

          “Qualifying Transferee” shall mean any Person (other than the Collateral Agent) that
acquires Collateral from the Pledgor in accordance with Section 5(e).

          “Secured Obligation Documents” shall have the meaning provided in the Collateral
Agency Agreement.

          “Secured Obligation Default” shall have the meaning provided in the Collateral Agency
Agreement.

          “Secured Obligation Event of Default” shall have the meaning provided in the
Collateral Agency Agreement.

          “Secured Obligations” shall have the meaning provided in the Collateral Agency
Agreement.

          “UCC” shall mean the Uniform Commercial Code of the State of New York.

          “Uncertificated Security Control Agreement” shall have the meaning provided in Section
6(e).

          SECTION 2. Pledge and Security Interest.

          The Pledgor hereby pledges and grants to the Collateral Agent for the benefit of the Secured
Parties a continuing first priority lien on and security interest in and to, all of its presently
owned or hereafter acquired right, title and interest in and to the following (the
“Collateral”):

          (a) (i) The membership interests in the Borrower identified in Annex 1 and all other
membership interests or shares of capital stock of whatever class of the Borrower, now or hereafter
owned by the Pledgor, and all certificates or instruments representing the same (collectively, the
“Membership Interests”) and (ii) all rights and benefits of the Pledgor under the Borrower
Operating Agreement, including, without limitation, (A) all of the Pledgor’s interest in the
capital of the Borrower, and all rights of the Pledgor as a member and, subject to Section 6.07 of
the Credit Agreement, all rights to receive distributions, cash, instruments and other
property from time to time receivable or otherwise distributable in respect of the Membership
Interests or pursuant to the Borrower Operating Agreement, (B) all other payments due or to

2

 

become
due to the Pledgor in respect of such Membership Interests or the Borrower Operating Agreement
including but not limited to all rights of the Pledgor to receive proceeds of any insurance,
indemnity, warranty or guaranty due to or with respect to the Membership Interests or the Borrower
Operating Agreement, (C) all claims of the Pledgor for damages arising out of or for breach of or
default under the Borrower Operating Agreement, (D) the right of the Pledgor to terminate the
Borrower Operating Agreement, to perform and exercise consensual or voting rights thereunder,
including but not limited to the right, if any, to manage the Borrower’s affairs, to make
determinations, to exercise any election or option or to give or receive any notice, consent,
amendment, waiver or approval, and the right, if any, to compel performance and otherwise exercise
all remedies thereunder, and (E) all rights of the Pledgor as a member of the Borrower, to all
property and assets of the Borrower (whether real property, inventory, equipment, contract rights,
accounts, receivables, general intangibles, securities, instruments, chattel paper, documents,
chooses in action or otherwise);

          (b) all indebtedness owed to the Pledgor by the Borrower, and the instruments, if any,
evidencing such indebtedness, and any and all interest, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect thereof or in exchange for
any or all such indebtedness;

          (c) to the extent not included in the foregoing, all proceeds of any and all of the foregoing
Collateral (including, without limitation, proceeds that constitute property of the types described
above); and

          (d) all certificates, instruments or other documents from time to time evidencing any of the
foregoing, and all interest, earnings and other proceeds of any of the foregoing.

          The Pledgor agrees that this Agreement, the security interest granted pursuant to this
Agreement and all rights, remedies, powers and privileges provided to the Collateral Agent under
this Agreement are in addition to and not in any way affected or limited by any other security now
or at any time held by the Collateral Agent to secure payment and performance of the Secured
Obligations.

          SECTION 3. Security for Secured Obligations. The Collateral secures the prompt and
complete payment and performance of all the Secured Obligations.

          SECTION 4. Representations and Warranties. The Pledgor represents and warrants to the
Collateral Agent (on behalf of the Secured Parties), as to itself only, that:

          (a) Existence. The Pledgor is a limited liability company, duly organized, validly existing and in good
standing under the laws of Delaware. The Pledgor is duly qualified to do business and is in good
standing in each jurisdiction in which such qualification is required by Applicable Law, except
where the failure to so qualify would not reasonably be expected to have a Material Adverse Effect.
The Pledgor has all requisite power and authority and legal right (i) to own its properties and
conduct its business substantially as contemplated by the Material Project Documents and Financing
Documents to which it is a party and (ii) to execute,

3

 

deliver, and perform its obligations under
each Transaction Document to which it is a party and to consummate each of the transactions
contemplated herein and therein.

          (b) Litigation. Except as set forth on Schedule 3.07 to the Credit Agreement, there are no
actions, suits, proceedings, investigations or similar actions pending or, to the knowledge of the
Pledgor, threatened (in writing) against the Pledgor that has had or could reasonably be expected
to have a Material Adverse Effect.

          (c) No Breach. The execution, delivery and performance by the Pledgor of this Agreement
and the performance of its obligations thereunder do not and will not (i) violate the articles of
organization or other organizational documents of the Pledgor, (ii) violate any provision of any
Applicable Law, (iii) result in a breach of or constitute a default under any indenture or loan or
credit agreement or any other material agreement, lease, or instrument to which the Pledgor is a
party or by which it or its properties may be bound or affected, or (iv) result in or require the
creation or imposition of any Lien of any nature (other than any Permitted Encumbrance) upon or
with respect to any of the properties now owned or hereafter acquired by such Loan Party except, in
the case of (ii) and (iii), as would not reasonably be expected to have a Material Adverse Effect.

          (d) Organizational Action. The execution, delivery, and performance of this Agreement has
been duly authorized by all necessary action on the part of the Pledgor. This Agreement has been
duly executed and delivered by the Pledgor. This Agreement constitutes a legal, valid and binding
obligation of the Pledgor, enforceable in accordance with its respective terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium, and similar laws of
general applicability relating to or affecting creditors’ rights and to general principles of
equity (regardless of whether such enforceability is considered in a proceeding in equity or at
law).

          (e) Title.

          (i) The Pledgor is the legal and beneficial owner of and has good title to the
Collateral free and clear of all Liens, except for the security interest created by
this Agreement and any Permitted Encumbrances.

          (ii) 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.

          (iii) The Membership Interests are “certificated securities” as such term in
defined in Article 8 of the UCC.

          (f) Valid Security. This Agreement creates a valid security interest in the Collateral
securing the payment of all the Secured Obligations.

          (g) Financing Statements. The appropriate financing statements (the “Financing
Statements”) have been presented (or are in a form to be presented immediately

4

 

following the
Closing Date) for filing under the Uniform Commercial Code (the “UCC”) as in effect in the
jurisdiction of the Pledgor’s formation.

                    (h) Authorizations and Perfection. Except for the filing of the Financing Statements, no
consent of any other Person and no Governmental Approvals or other action by, or notice to or
filing with, any other Person is required for (i) the execution, delivery or performance by the
Pledgor of this Agreement, except to the extent that the failure to obtain, maintain, make or
provide any such consent, Governmental Approvals, other action, filing or notice could not
reasonably be expected to have a Material Adverse Effect on the ability of the Pledgor to perform
its obligations hereunder, (ii) the pledge and assignment by the Pledgor of the Collateral pursuant
to this Agreement, (iii) the validity, perfection or maintenance of the security interest created
hereby or (iv) the exercise by the Collateral Agent of the voting or other rights provided for in
this Agreement or the remedies in respect of such Collateral pursuant to this Agreement or as
provided by law, except for those which have been duly obtained or made and, in the case of the
maintenance of perfection, for the filing of continuation statements under the UCC, and as may be
required in connection with any disposition of any portion of the Collateral (x) by laws affecting
the offering and sale of securities generally, (y) by laws regulating the ownership or transfer of
public utilities or electric utilities or their assets or (z) pursuant to the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and any applicable foreign competition laws.

                    (i) Names; Changes in Circumstances. The full and correct legal name, type of
organization, jurisdiction of organization and organizational ID number (if applicable) of the
Pledgor as of the date hereof are correctly set forth in Annex 2. The Pledgor has not (a)
within the period of four months prior to the date hereof, changed its location (as defined in
Section 9-307 of the UCC), (b) except as specified in Annex 2, heretofore changed its name,
or (c) except as specified in Annex 3, heretofore become a “new debtor” (as defined in
Section 9-102(a)(56) of the UCC) with respect to a currently effective security agreement
previously entered into by any other Person.

                    (j) Pledged Interests. As at the date hereof (a) the Membership Interests identified in
Annex 1 constitute all of the issued and outstanding membership interest in the Borrower
and (b) there are no other issued and outstanding membership interests in the Borrower.

                    (k) Options, Restrictions, Etc. There are no outstanding agreements, options and contracts
to sell all or any portion of the Collateral. No part of the Collateral is subject to the terms of
any agreement restricting the sale or transfer of such Collateral, except for the Secured
Obligation Documents and the Borrower Operating Agreement. No Person has any right to purchase or
terminate any or all of the membership interests in the Borrower except pursuant to the terms of
this Agreement, any other Secured Obligation Document and the Borrower Operating Agreement.

                    (l) Compliance with Laws and Obligations. The Pledgor is in compliance with all
Applicable Laws, except to the extent that non-compliance with such Applicable Laws could not,
individually or in the aggregate, reasonably expected to have a Material Adverse Effect.

5

 

          SECTION 5. Covenants. The Pledgor covenants and agrees that:

          (a) Books and Records. The Pledgor shall:

          (i) keep full and accurate books and records relating to the Collateral, and, to the
extent requested by the Collateral Agent, stamp or otherwise mark such books and records in
such manner as the Collateral Agent may reasonably require in order to reflect the security
interests granted by this Agreement; and

          (ii) permit officers and designated representatives of the Collateral Agent to examine
and make copies of the books, records and documents of the Pledgor and to discuss the
affairs, finances and accounts of the Pledgor with the Pledgor’s principal officers and
independent accountants (subject to reasonable requirements of safety and confidentiality,
including requirements imposed by Applicable Law or by contract) with the participation of
the Pledgor with reasonable advance notice to the Pledgor and during normal business hours
of the Pledgor.

          (b) Performance of the Borrower Operating Agreement. The Pledgor shall not, without the
written consent of the Collateral Agent, cancel or terminate the Borrower Operating Agreement or
consent to or accept any cancellation or termination thereof; amend or otherwise modify the
Borrower Operating Agreement in any material respect if such amendment or modification would
materially impair the value of the interest or rights of the Pledgor thereunder; or waive any material default under or material breach of the Borrower
Operating Agreement, except in each case as permitted by the Financing Documents. In addition, it
will not consent to any transaction for the termination, dissolution or winding up of, or the
merger or consolidation with any other Person by, the admission of additional members to, or
otherwise effect or change the structure or organization of the Borrower, except in each case as
permitted by the Financing Documents.

          (c) Defense of Collateral. The Pledgor will defend the Collateral against all claims and
demands of all Persons (other than the Collateral Agent and the other Secured Parties and the
holders of Permitted Encumbrances) claiming an interest in any of the Collateral. It will
discharge or cause to be discharged all Liens on any or all of the Collateral, except for the
security interests under this Agreement and Permitted Encumbrances.

          (d) Location of Office; Name. The Pledgor shall keep its principal place of business,
where it keeps its records concerning the Collateral, at its address specified on the signature
page hereof; or, upon 30 days’ prior written notice to the Collateral Agent, at such other location
in a jurisdiction where all action required by Section 6 shall have been taken with respect to the
Collateral. Without at least 30 days’ prior written notice to the Collateral Agent, the Pledgor
shall not change its name from or its jurisdiction of organization from the name or jurisdiction,
respectively, set forth in Annex 2.

          (e) Disposition of Collateral. Unless permitted by the Financing Documents, the Pledgor
shall not transfer, sell, assign (by operation of law or otherwise) or otherwise dispose of any of
the Collateral (other than the pledge, hypothecation and security interest created pursuant to this
Agreement) unless (i) such transfer, sale, assignment or disposition would not

6

 

violate any
Applicable Law or Governmental Approvals, and the Agents shall have received an opinion of counsel
to the effect that such transfer, sale, assignment or disposition will not cause the Project to be
in violation with any material Governmental Approvals or any Project Document, (ii) no Default or
Event of Default shall have occurred and be continuing at the time of such transfer, sale,
assignment or disposition or would result therefrom, (iii) no Change of Control will result from
such transfer, sale, assignment or disposition, (iv) such transfer, sale, assignment or disposition
could not reasonably be expected to have a Material Adverse Effect, and (v) the Person to acquire
such Collateral shall become a party to this Agreement by executing an assumption agreement
pursuant to Section 20, and such Person shall deliver such evidence of corporate action, opinions
of counsel and such other documentation with respect to such assumption agreement and this
Agreement.

          (f) Liens. The Pledgor will not create, incur, assume or suffer to exist any Lien upon any
Collateral (other than Permitted Encumbrances) or file or suffer to be on file or authorize to be
filed, in any jurisdiction, any financing statement or like instrument with respect to all or any
part of the
Collateral in which the Collateral Agent is not named as the sole secured party for the benefit of
the Secured Parties.

          (g) Voting Rights. The Pledgor shall exercise any and all management, voting and other
consensual rights pertaining to the Borrower Operating Agreement and the Borrower, in a manner
which is not inconsistent with the terms of this Agreement and the other Secured Obligation
Documents.

          (h) Maintenance of Existence. The Pledgor shall preserve and maintain its legal existence
as a Delaware limited liability company; provided, that, the Pledgor may convert
its form to another Delaware entity if (A) to the extent required to maintain the Lien of the
Collateral Agent in the Membership Interests, the Pledgor enters into another pledge agreement
having substantially similar terms as provided herein, granting a Lien to the Collateral Agent in
the Membership Interests and (B) such change of legal form would not result in a Secured Obligation
Default or Secured Obligation Event of Default or a default under any Material Project Document
that would reasonably be expected to have a Material Adverse Effect.

          SECTION 6. Continued Perfection of Security Interest.

          (a) The Pledgor agrees that it will not take any actions or fail to perform any of its duties
or obligations under this Agreement so that after giving effect to such action or inaction the
Collateral Agent will not then, or with the passage of time cease to, have a perfected security
interest in any of the Collateral.

          (b) Concurrently with the execution herewith, the Pledgor shall deliver all certificates or
instruments representing or evidencing the Collateral to Collateral Agent, if any, and all such
certificates or instruments shall be accompanied by duly executed instruments of transfer or
assignment in blank, all in form and substance acceptable to Collateral Agent. Collateral Agent
shall have sole possession and control of such certificates and instruments until payment in full
of the Secured Obligations. Collateral Agent shall have the right, at any time in its discretion,
upon the occurrence and during the continuation of an Event of Default and upon notice to the
Pledgor (but only where such notice may be given without violating Applicable

7

 

Law), to transfer to
or to register in the name of Collateral Agent or any of its nominees any or all of the Collateral
and to exchange certificates or instruments representing or evidencing the Collateral for
certificates or instruments of smaller or larger denominations.

          (c) The Pledgor agrees that from time to time the Pledgor shall take or cause to be taken all
action reasonably required to maintain the security interests (and the priority of such security
interest) in the Collateral granted hereunder. The Pledgor shall execute, file and record or cause
to be executed, filed and recorded any and all further instruments (including financing statements,
continuation statements and similar statements with respect to any Security Document) as reasonably
requested by the Collateral Agent for such purpose, including the
payment of all associated fees and other charges in connection therewith. The Pledgor shall
discharge any Lien (other than Permitted Encumbrances) on the Collateral to which it has an
interest.

          (d) The Pledgor hereby further authorizes the Collateral Agent to file one or more financing
or continuation statements, and amendments thereto, relative to all or any part of the Collateral
without the signature of such Pledgor where permitted by law. Unless as directed by the Pledgor or
the Administrative Agent in writing (and subject to clause (d) of Section 9.03(a) of the Credit
Agreement) to prepare, file or record any financing statement, continuation statement or other
instrument or ensure the preparation, filing or recording of the same, the Collateral Agent has no
obligation to prepare, file or record any financing statement, continuation statement or other
instrument or ensure the preparation, filing or recording of the same.

          (e) With respect to any Collateral that constitutes an uncertificated security, to the extent
that the Borrower has elected to have its Membership Interests governed by Article 8 of the UCC,
the Pledgor will cause the Borrower to either (i) register the Collateral Agent as the registered
owner of such security or (ii) agree with such Pledgor and Collateral Agent that the Borrower will
comply with instructions with respect to such security originated by the Collateral Agent without
further consent of the Pledgor, such agreement to be in form and substance satisfactory to the
Administrative Agent (such agreement being an “Uncertificated Security Control Agreement”).

          SECTION 7. Pledgor’s Rights.

          (a) Voting Rights. Unless a Secured Obligation Event of Default shall have occurred and be
continuing, the Pledgor shall be entitled to exercise all voting and other rights with respect to
the Collateral; provided, however, that no vote shall be cast, right exercised or
other action taken by the Pledgor which (i) could reasonably be expected have a Material Adverse
Effect or (ii) is inconsistent with Section 5(g).

          (b) Distributions. All distributions paid or payable in respect of the Membership
Interests of the Pledgor may be paid to and retained by the Pledgor to the extent not prohibited by
the Credit Agreement or any other Financing Document. During the continuance of any Secured
Obligation Event of Default, any and all distributions paid or payable in respect of the Membership
Interests (whether paid in cash, securities or other property) shall be, and shall be forthwith
delivered to the Collateral Agent to hold as Collateral and shall, if received by

8

 

any Pledgor, be
received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of
such Pledgor and shall be forthwith paid over to the Collateral Agent in the same form as so
received (with any necessary indorsement).

          SECTION 8. Obligations of the Pledgor and Rights of Collateral Agent. Anything herein to
the contrary notwithstanding, (a) the Pledgor shall remain liable under the Borrower Operating
Agreement to the extent set forth therein to perform all of its duties and obligations thereunder
to the same extent as if this Agreement had not been executed, (b) the exercise by the Collateral
Agent of any of the rights hereunder shall not release the Pledgor from any of its duties or
obligations under the Borrower Operating Agreement and (c) neither the Collateral Agent nor any
other Secured Party shall have any obligation or liability under the Borrower Operating Agreement
by reason of this Agreement, nor shall the Collateral Agent or any other Secured Party be obligated
to perform any of the obligations or duties of the Pledgor thereunder or to take any action to
collect or enforce any claim assigned hereunder, unless the Collateral Agent has agreed in writing
to be so obligated.

          If the Pledgor fails to perform any agreement contained herein, subject to receipt of notice
from the Collateral Agent and after applicable cure periods, the Collateral Agent may itself
perform, or cause performance of, such agreement and the Collateral Agent shall deliver a written
notification to the Pledgor of such decision to perform, or cause the performance of, any such
agreement, and the Collateral Agent shall exercise reasonable care and act diligently in all such
cases, and the expenses of the Collateral Agent incurred in connection therewith shall be payable
by the Pledgor under Section 11.

          The powers conferred on the Collateral Agent hereunder are solely to protect its interest in
the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the
safe custody of any Collateral in its possession and the accounting for moneys actually received by
it hereunder, and the duties set forth in Section 9-207 of the Uniform Commercial Code, the
Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary steps
to preserve rights against prior parties or any other rights pertaining to any Collateral, unless
the Collateral Agent has agreed in writing to be so obligated.

          Notwithstanding anything else to the contrary herein, whenever reference is made in this
Agreement to any discretionary action by, consent, designation, specification, requirement or
approval of, notice, request or other communication from, or other direction given or action to be
undertaken or to be (or not to be) suffered or omitted by the Collateral Agent or to any election,
decision, opinion, acceptance, use of judgment, expression of satisfaction or other exercise of
discretion, rights or remedies to be made (or not to be made) by the Collateral Agent, it is
understood that in all cases the Collateral Agent shall be fully justified in failing or refusing
to take any such action under this Agreement if it shall not have received such written
instruction, advice or concurrence of the Administrative Agent (acting in accordance with the
Credit Agreement and other Financing Documents), as it deems appropriate. This provision is
intended solely for the benefit of the Collateral Agent and its successors and permitted assigns
and is not intended to and will not entitle the other parties hereto to any defense, claim or
counterclaim, or confer any rights or benefits on any party hereto.

9

 

          SECTION 9. Remedies of Collateral Agent. At any time after a Secured Obligation Event
of Default occurs and is continuing, the Collateral Agent has the right to do any or all of the
following:

          (a) The Collateral Agent may exercise any and all rights and remedies of the Pledgor under or
in connection with the Borrower Operating Agreement, the Membership Interests or otherwise in
respect of the Collateral, including, without limitation, any and all rights of such Pledgor to
demand or otherwise require payment of any amount under, or performance of any provision of, the
Borrower Operating Agreement and all rights of such Pledgor to control the operations of the
Borrower. In addition, the Collateral Agent may, but shall not be obligated to cure any default by
the Pledgor under the Borrower Operating Agreement.

          (b) The Collateral Agent shall have the right in its discretion and without notice to the
Pledgor, to transfer to or to register in the name of the Collateral Agent or any of its nominees
any or all of the Collateral.

          (c) Upon written notice of the Collateral Agent to the Pledgor, all rights of the Pledgor to
exercise or refrain from exercising the voting and other consensual rights which it would otherwise
be entitled to exercise shall cease, and all such rights shall thereupon become vested in the
Collateral Agent who shall thereupon, so long as the Secured Obligation Event of Default is
continuing, have the sole right to exercise or refrain from exercising in a reasonable manner such
voting and other consensual rights in aid of foreclosure or other enforcement of its security
interest in the Collateral.

          (d) The Collateral Agent may (i) notify the Borrower to make payment and performance due to
the Pledgor under the Borrower Operating Agreement to the Collateral Agent, (ii) extend the time of
payment and performance of, or compromise or settle for cash, credit or otherwise, and upon any
terms and conditions, the obligations of the Pledgor under the Borrower Operating Agreement, (iii)
file any claims, commence, maintain, settle or discontinue any actions, suits or other proceedings
deemed by the Collateral Agent in its sole discretion necessary or advisable for the purpose of
collecting upon the Collateral or enforcing the Borrower Operating Agreement, and (iv) execute any
instrument and do all other things deemed necessary and proper by the Collateral Agent in its sole
discretion to protect and preserve and permit the Collateral Agent to realize upon the Collateral
and the other rights contemplated thereby.

          (e) 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 upon default under the UCC, and may also, 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 exchange, broker’s board or 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. The Pledgor agrees that, to the extent notice of sale shall be required
by law, at least 10 days’ written notice, in a manner provided in Section 14, to the Pledgor of the
time and place of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale
of Collateral regardless of notice of sale having been given. The Collateral Agent

10

 

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.

          (f) In view of the position of the Pledgor in relation to the Collateral, or because of other
current or future circumstances, questions may arise under the Securities Act of 1933, as now or
hereafter in effect, or any similar statute hereafter enacted analogous in purpose or effect (such
act and any such similar statute as from time to time in effect being called the “Federal
Securities Laws”) with respect to any disposition of the Collateral permitted hereunder. The
Pledgor understands that compliance with the Federal Securities Laws might very strictly limit the
course of conduct of the Collateral Agent if the Collateral Agent were to attempt to dispose of all
or any part of the Collateral, and might also limit the extent to which or the manner in which any
subsequent transferee of any Collateral could dispose of the same. Similarly, there may be other
legal restrictions or limitations affecting the Collateral Agent in any attempt to dispose of all
or part of the Collateral under applicable Blue Sky or other state securities laws or similar laws
analogous in purpose or effect. The Pledgor recognizes that in light of the foregoing restrictions
and limitations the Collateral Agent may, with respect to any sale of Collateral, to the extent
commercially reasonable, limit the purchasers to those who will agree, among other things, to
acquire Collateral for their own account, for investment, and not with a view to the distribution
or resale thereof. The Pledgor acknowledges and agrees that, in light of the foregoing
restrictions and limitations, the Collateral Agent, in a commercially reasonable manner, (i) may
proceed to make such a sale whether or not a registration statement for the purpose of registering
the Collateral or part thereof shall have been filed under the Federal Securities Laws and (ii) may
approach and negotiate with a single possible purchaser to effect such sale. The Pledgor
acknowledges and agrees that any such sale might result in prices and other terms less favorable to
the seller than if such sale were a public sale without such restrictions. In the event of any
such sale, neither the Collateral Agent nor any other Secured Party shall incur any responsibility
or liability for selling all or any part of the Collateral at a price that the Collateral Agent, in
a commercially reasonable manner, may in good faith deem reasonable under the circumstances,
notwithstanding the possibility that a higher price might have been realized if the sale were
deferred until after registration as aforesaid or if more than a single purchaser were approached.
The provisions of this paragraph will apply notwithstanding the existence of a public or private
market upon which the quotations or sales prices may exceed the price at which the Collateral Agent
sells. The Pledgor agrees that sales made pursuant to this paragraph are made in a commercially
reasonable manner.

          (g) All payments made under or in connection with the Borrower Operating Agreement, the
Membership Interests, or otherwise in respect of the Collateral and received by the Collateral
Agent may, in the discretion of the Collateral Agent and to the extent permitted by applicable law,
be held by the Collateral Agent as collateral for the Secured Obligations, and then or as soon
thereafter as is reasonably practicable applied in whole or in part by the Collateral Agent in
accordance with Section 3.06 of the Collateral Agency Agreement.

          (h) The Collateral Agent may send to each bank, securities intermediary or issuer party to any
Uncertificated Security Control Agreement a “Notice of Exclusive Control” as defined in and under
such agreement.

11

 

          SECTION 10. Collateral Agent Appointed Attorney-in-Fact. The Pledgor hereby irrevocably appoints the Collateral Agent as the Pledgor’s
attorney-in-fact, with full authority in the place and stead of the Pledgor and in the name of the
Pledgor or otherwise, upon the occurrence of and during the continuance of a Secured Obligation
Event of Default, in the Collateral Agent’s discretion to take any and all actions authorized or
permitted to be taken by the Collateral Agent under this Agreement or by law, including but not
limited to the power to:

          (a) take any action and execute any instrument which the Collateral Agent may deem necessary
or advisable to accomplish the purposes of this Agreement;

          (b) to ask for, demand, collect, sue for, recover, receive and give acquittance and receipts
for moneys due and to become due under or in connection with the Collateral;

          (c) to receive, indorse, and collect any drafts or other instruments, documents and chattel
paper in connection therewith; and

          (d) to file any claims or take any action or institute any proceedings which the Collateral
Agent may deem to be necessary or desirable for the collection of any of the Collateral or to
enforce compliance with the terms and conditions of the Borrower Operating Agreement.

          SECTION 11. Indemnity and Expenses. The Pledgor agrees to reimburse (to the extent
reimbursement has not already been made by the Borrower under the Credit Agreement) each of the
Secured Parties for all reasonable and documented out-of-pocket costs and expenses of the Secured
Parties (including, without limitation, the reasonable fees and expenses of legal counsel but
limited to one counsel and one financial advisor to the Lenders) in connection with (a) any Secured
Obligation Event of Default and any enforcement or collection proceeding against the Pledgor
resulting from a Secured Obligation Default or a Secured Obligation Event of Default or in
connection with the negotiation of any restructuring or “work-out” (whether or not consummated) of
the obligations of the Borrower under this Agreement and (b) the enforcement of this Section 11,
and all such costs and expenses shall be Secured Obligations entitled to the benefits of the
collateral security provided pursuant to Section 2.

          SECTION 12. Security Interest Absolute. Until terminated in accordance with Section
15, the obligations of the Pledgor under this Agreement shall be absolute and unconditional and
shall remain in full force and effect without regard to, and shall not be released, suspended,
discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever,
including, without limitation: (a) any renewal, extension, amendment or modification of, or
addition or supplement to or deletion from any Secured Obligation Document or any other instrument
or agreement referred to therein, or any assignment or transfer of any thereof; (b) any waiver,
consent, extension, indulgence or other action or inaction under or in respect of any such
instrument or agreement or this Agreement or any exercise or non-exercise of any right, remedy,
power or privilege under or in respect of this Agreement or any other Secured Obligation Document;
(c) any furnishing of any additional security (including, without limitation, any assets, whether
now owned or
hereafter acquired, upon which a Lien is created or granted from time to time pursuant to the
other Security Documents) to the Collateral Agent or any acceptance thereof or any sale, exchange,
release, surrender or realization of or upon any

12

 

security by the Collateral Agent; or (d) any
invalidity, irregularity or unenforceability of all or part of the Secured Obligations or of any
security therefor.

          SECTION 13. Amendments; Etc. The terms of this Agreement may be amended,
supplemented, waived or otherwise modified only by an instrument in writing duly executed by the
Pledgor, the Borrower and the Collateral Agent (acting in accordance with the Collateral Agency
Agreement). Any such amendment, supplement, waiver or modification shall be binding upon the
Collateral Agent and each Secured Party, each holder of any of the Secured Obligations, the
Borrower and the Pledgor. Any waiver shall be effective only in the specific instance and for the
specified purpose for which it was given.

          SECTION 14. Address for Notices. All notices and other communications hereunder shall
be given (in the manner specified in the Credit Agreement) to the parties hereto at the addresses
specified under their respective names on the signature pages hereto, or as to any party at such
other address as shall be designated by such party in a written notice to each other party.

          SECTION 15. Continuing Assignment; Pledge and Security Interest; Release. This
Agreement shall create a continuing pledge, assignment of, hypothecation of and security interest
in the Collateral and shall (a) remain in full force and effect until the Termination Date and (b)
inure to the benefit of, and be enforceable by, the Collateral Agent, the other Secured Parties and
their respective successors, transferees and assigns. Without limiting the generality of the
foregoing clause (b), any Secured Party may assign or otherwise transfer all or any portion of its
rights in the Secured Obligations to the extent and in the manner provided in the Secured
Obligation Documents, and such assignee shall thereupon become vested with all the benefits in
respect thereof granted to such Secured Party herein or otherwise. Upon the Termination Date, the
security interest granted hereby shall terminate and all rights to the Collateral shall revert to
the Pledgor. Upon any such termination, the Collateral Agent will, at no expense to the Collateral
Agent, execute and deliver to the Pledgor such documents as the Pledgor shall reasonably request to
evidence such termination.

          SECTION 16. Severability. If any provision of this Agreement shall be held or deemed
to be or shall, in fact, be illegal, inoperative or unenforceable, the same shall not affect any
other provision or provisions herein contained or render the same invalid, inoperative or
unenforceable to any extent whatever.

          SECTION 17. Headings. The headings of the various articles, sections and paragraphs of this Agreement are for
convenience of reference only, do not constitute a part hereof and shall not affect the meaning or
construction of any provision hereof.

          SECTION 18. Governing Law; Jurisdiction; Etc.

          (a) Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

          (b) Submission to Jurisdiction. Any legal action or proceeding with respect to this
Agreement or any other Financing Document shall, except as provided in clause (d) below, be brought
in the courts of the State of New York in the County of New York or of the United

13

 

States for the
Southern District of New York and, by execution and delivery of this Agreement, each party hereto
hereby irrevocably accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. Each party hereto agrees that a
judgment, after exhaustion of all available appeals, in any such action or proceeding shall be
conclusive and binding upon it, and may be enforced in any other jurisdiction, including by a suit
upon such judgment, a certified copy of which shall be conclusive evidence of the judgment.

          (c) Waiver of Venue. Each party hereto hereby irrevocably waives any objection that
it may now have or hereafter have to the laying of the venue of any suit, action or proceeding
arising out of or relating to this Agreement or any other Financing Document brought in the Supreme
Court of the State of New York, County of New York or in the United States District Court for the
Southern District of New York, and hereby further irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an inconvenient forum.

          (d) Rights of the Secured Parties. Nothing in this Section shall limit the right of
the Secured Parties to refer any claim against the Pledgor to any court of competent jurisdiction
outside of the State of New York, nor shall the taking of proceedings by any Secured Party before
the courts in one or more jurisdictions preclude the taking of proceedings in any other
jurisdiction whether concurrently or not.

          (e) WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY FINANCING
DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO OR ANY OF THEM WITH RESPECT TO ANY FINANCING DOCUMENT, OR THE TRANSACTIONS RELATED THERETO,
IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR
OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE
OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

          SECTION 19. Execution in Counterparts. This Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall be an original, but all the
counterparts together shall constitute one and the same instrument and any of the parties hereto
may execute this Agreement by signing any such counterpart.

          SECTION 20. Additional Pledgors. One or more Qualifying Transferees may become party
to this Agreement by executing and delivering to each Agent an assumption agreement substantially
in the form of Exhibit A hereto, in which case such Qualifying Transferee shall, from and
after the date of such execution and delivery, be for all purposes a “Pledgor” hereunder and the
Annexes hereto shall be supplemented in the manner specified in

14

 

such assumption agreement and such
Qualifying Transferee shall be deemed to have made the representations and warranties in Section 4
hereof as of such date.

          SECTION 21. Non-Recourse. Notwithstanding anything herein or in any other Transaction
Document to the contrary, the obligations of the Pledgor under this Agreement, and any certificate,
notice, instrument or document delivered pursuant hereto, are obligations solely of the Pledgor and
do not constitute a debt or obligation of (and no recourse shall be made with respect to) any other
Pledgor, as applicable, or any of their respective Affiliates (other then the Pledgor), or any
shareholder, partner, member, officer, director or employee of the Pledgor, the Borrower, any other
Pledgor, or such Affiliates (collectively, the “Non-Recourse Parties”), except as
hereinafter set forth in this Section or as expressly provided in any Transaction Document to which
such Non-Recourse Party is a party. No action under or in connection with this Agreement shall be
brought against any Non-Recourse Party, and no judgment for any deficiency upon the obligations
hereunder shall be obtainable by any Secured Party against any Non-Recourse Party, except as
hereinafter set forth in this Section or as expressly provided in any Transaction Document to which
such Non-Recourse Party is a party. Notwithstanding any of the foregoing, it is expressly
understood and agreed that nothing contained in this Section shall in any manner or way (i)
restrict the remedies available to any Agent or Lender to realize upon the Collateral or under any
Transaction Document, or constitute or be deemed to be a release of the Obligations secured by (or
impair the enforceability of) the Liens and security interests and possessory rights created by or
arising from any Financing Document or (ii) release, or be deemed to release, any Non-Recourse
Party from liability for its own fraudulent actions, gross negligence or willful misconduct or from
any of its obligations or liabilities under any Transaction Document to which such Non-Recourse
Party is a party.

          SECTION 22. Applicability of other Secured Obligation Documents. In amplification of, and notwithstanding any other provisions of this Agreement, in
connection with its obligations hereunder, the Collateral Agent has all of the rights, powers,
privileges, exculpations, protections and indemnities as provided to it in the other Secured
Obligation Documents.

          SECTION 23. Borrower’s Consent and Covenants. The Borrower hereby consents to the
assignment and grant of a security interest in the Collateral by the Pledgor to Collateral Agent
and to the exercise by Collateral Agent of all rights and powers assigned or delegated to
Collateral Agent by the Pledgor hereunder. The Borrower further agrees to perform all covenants
and obligations herein which, by their express or implied terms, are to be performed by the
Borrower.

[SIGNATURE PAGES TO FOLLOW]

15

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their officers thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	MIRANT MARSH LANDING HOLDINGS, LLC,

as the Pledgor

 	 
	 	By:  	/s/ G. Gary Garcia
 	 
	 	 	Name:  	G. Gary Garcia 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	 Mirant Marsh Landing Holdings, LLC

c/o Mirant Corporation

1155 Perimeter Center West

Atlanta, Georgia 30338

 
	 	 Attn: J. William Holden III

Tel: 678 579 7728

Fax: 678 579 7332

Email: william.holden@mirant.com

 
	 	With copy to:

Attn: Steve Nickerson

Tel: 678 579 6440

Fax: 678 579 5951

Email: steve.nickerson@mirant.com

 	 

Signature Page to Pledge Agreement

 

 

	 	 	 	 	 
	 	MIRANT MARSH LANDING, LLC, as the Borrower

 	 
	 	By:  	/s/ G. Gary Garcia
 	 
	 	 	Name:  	G. Gary Garcia 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	 Mirant Marsh Landing Holdings, LLC

c/o Mirant Corporation

1155 Perimeter Center West

Atlanta, Georgia 30338

 
	 	 Attn: J. William Holden III

Tel: 678 579 7728

Fax: 678 579 7332

Email: william.holden@mirant.com

 
	 	With copy to:

Attn: Steve Nickerson

Tel: 678 579 6440

Fax: 678 579 5951

Email: steve.nickerson@mirant.com

 	 

Signature Page to Pledge Agreement

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS,

not in its individual capacity but solely

as Collateral Agent

 	 
	 	By:  	/s/ Wanda Camacho
 	 
	 	 	Name:  	Wanda Camacho 	 
	 	 	Title:  	Vice President 	 
	 	 	 
	 	By:  	                                              /s/ Yana Kislenko
 	 
	 	 	Name:  	Yana Kislenko 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	Address for notice:

60 Wall Street

MSNYC 60-2710

NY, NY 10005

Attn: Trust and Securities Services

Project Finance — Account Manager

Tel: 212-250-7727

Fax: 732-578-4636

Email: yana.kislenko@db.com, li.jiang@db.com

 	 

Signature Page to Security Agreement

 

 

ANNEX 1

Membership Interests

	 	 	 	 	 	 	 
	 	 	Issuer’s	 	 	 	 
	 	 	Jurisdiction of	 	 	 	 
	Issuer	 	Organization	 	Class	 	Certificate No.
	Mirant Marsh Landing, LLC
	 	Delaware	 	Membership Interests	 	1
	
	 	 	 	 	 	 

Annex 1 to Pledge Agreement

 

 

ANNEX 2

Filing Details

	 	 	 	 	 
	 	 	 	 	
	Legal Name	 	Type of Organization	 	Jurisdiction of Organization
	Mirant Marsh Landing Holdings, LLC

	 	Limited liability company
	 	Delaware

Annex 2 to Pledge Agreement

 

 

ANNEX 3

New Debtor Events

     None.

Annex 3 to Pledge Agreement

 

 

EXHIBIT A to

PLEDGE AGREEMENT

FORM OF

ASSUMPTION AGREEMENT

     ASSUMPTION AGREEMENT dated as of ________ __, 201[_], is delivered by [NAME OF ADDITIONAL
PLEDGOR], a ________ [corporation] (the “Additional Pledgor”), in connection with the
Pledge Agreement dated as of October 8, 2010 (the “Pledge Agreement”) among Mirant Marsh
Landing Holdings, LLC, Mirant Marsh Landing, LLC, and Deutsche Bank Trust Company Americas, as
collateral agent (in such capacity, together with its successors and assigns in such capacity, the
“Collateral Agent”). Capitalized terms used herein and not otherwise defined herein shall
have the meanings herein ascribed thereto in the Pledge Agreement.

     The Additional Pledgor hereby represents and warrants that on the date hereof it shall acquire
the membership interests in the Borrower identified in the supplement to Annex 1 to the Pledge
Agreement specified in Appendix A hereto from [name of transferring Pledgor]. Pursuant to Section
20 of the Pledge Agreement, by executing and delivering this Assumption Agreement the Additional
Pledgor shall become a party to the Pledge Agreement as a Pledgor for all purposes of the Pledge
Agreement, and the Additional Pledgor agrees to be bound by and perform all obligations of a
Pledgor under the Pledge Agreement with the same force and effect as if originally named as a
Pledgor thereunder (and the Additional Pledgor hereby supplements each of the Annexes to the Pledge
Agreement in the manner specified in Appendix A hereto). Without limiting the generality of the
foregoing, the Additional Pledgor hereby pledges and hypothecates to the Collateral Agent for the
benefit of the Secured Parties, and hereby grants to the Collateral Agent for the benefit of the
Secured Parties a security interest in and to, all of its presently owned or hereafter acquired
right, title and interest in the Collateral, including all membership interests or shares of
capital stock of whatever class of the Borrower, now or hereafter owned by the Additional Pledgor,
all certificates representing the same (if any), all rights and benefits of the Additional Pledgor
under the Borrower Operating Agreement and all proceeds of the foregoing.

     The Additional Pledgor hereby makes the representations and warranties set forth in Section 4
of the Pledge Agreement, with respect to itself and its obligations under this Assumption Agreement
and the Pledge Agreement, as if: (a) each reference to the Pledge Agreement in such Section 4 also
included reference to this Assumption Agreement, (b) each Annex to the Pledge Agreement is
supplemented in the manner specified in Appendix A hereto and (c) [insert references to any other
technical changes to the representations that may be necessary to tailor the representations to the
Additional Pledgor]. The Additional Pledgor hereby instructs its counsel to deliver any opinions
to the Collateral Agent required to be delivered in connection with the execution and delivery
hereof.

Exhibit A to Pledge Agreement

 

 

          IN WITNESS WHEREOF, the Additional Pledgor has caused this Assumption Agreement to be duly
executed and delivered as of the day and year first above written.

	 	 	 	 	 
	 	[NAME OF ADDITIONAL PLEDGOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Accepted and agreed:

DEUTSCHE BANK TRUST COMPANY AMERICAS,

not in its individual capacity but solely as Collateral Agent

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Exhibit A to Pledge Agreement

 

 

Appendix A

SUPPLEMENT[S] TO ANNEX[ES] TO PLEDGE AGREEMENT

Supplement to Annex 1:

[to be completed]

[Supplement to Annex 2:

[to be completed]

Supplement to Annex 3:

[to be completed]

Exhibit A to Pledge Agreement

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