Document:

Exhibit 10.2

Exhibit 10.2

EXECUTION COPY

GUARANTEE AND COLLATERAL AGREEMENT

dated as of June 10, 2011,

among

RENTECH ENERGY MIDWEST CORPORATION,

as the Borrower,

RENTECH, INC.,

as Parent Holdings,

the Subsidiaries of Parent Holdings from time to time party hereto

and

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

as Collateral Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I

	 
	 	 	 	 
	Definitions

	 
	 	 	 	 
	SECTION 1.01. Credit Agreement
	 	 	1	 
	SECTION 1.02. Other Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	Guarantee

	 
	 	 	 	 
	SECTION 2.01. Guarantee
	 	 	5	 
	SECTION 2.02. Guarantee of Payment; Continuing Guarantee
	 	 	5	 
	SECTION 2.03. No Limitations, Etc
	 	 	5	 
	SECTION 2.04. Reinstatement
	 	 	6	 
	SECTION 2.05. Agreement To Pay; Subrogation
	 	 	6	 
	SECTION 2.06. Information
	 	 	6	 
	SECTION 2.07. Taxes
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	Pledge of Securities

	 
	 	 	 	 
	SECTION 3.01. Pledge
	 	 	7	 
	SECTION 3.02. Delivery of the Pledged Collateral
	 	 	7	 
	SECTION 3.03. Representations, Warranties and Covenants
	 	 	8	 
	SECTION 3.04. Certification of Limited Liability Company Interests and Limited Partnership Interests
	 	 	9	 
	SECTION 3.05. Registration in Nominee Name; Denominations
	 	 	9	 
	SECTION 3.06. Voting Rights; Dividends and Interest, Etc
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 
	Security Interests in Personal Property

	 
	 	 	 	 
	SECTION 4.01. Security Interest
	 	 	11	 
	SECTION 4.02. Representations and Warranties
	 	 	13	 
	SECTION 4.03. Covenants
	 	 	15	 
	SECTION 4.04. Other Actions
	 	 	17	 
	SECTION 4.05. Covenants Regarding Patent, Trademark and Copyright Collateral
	 	 	19	 
	 
	 	 	 	 
	ARTICLE V

	 
	 	 	 	 
	Remedies

	 
	 	 	 	 
	SECTION 5.01. Remedies Upon Default
	 	 	21	 
	SECTION 5.02. Application of Proceeds
	 	 	22	 
	SECTION 5.03. Grant of License to Use Intellectual Property
	 	 	23	 
	SECTION 5.04. Securities Act, Etc
	 	 	23	 

 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	Indemnity, Subrogation and Subordination

	 
	 	 	 	 
	SECTION 6.01. Indemnity and Subrogation
	 	 	23	 
	SECTION 6.02. Contribution and Subrogation
	 	 	24	 
	SECTION 6.03. Subordination
	 	 	24	 
	 
	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 
	Miscellaneous

	 
	 	 	 	 
	SECTION 7.01. Notices
	 	 	24	 
	SECTION 7.02. Security Interest Absolute
	 	 	24	 
	SECTION 7.03. Survival of Agreement
	 	 	25	 
	SECTION 7.04. Binding Effect; Several Agreement
	 	 	25	 
	SECTION 7.05. Successors and Assigns
	 	 	25	 
	SECTION 7.06. Agent’s Fees and Expenses; Indemnification
	 	 	25	 
	SECTION 7.07. Agent Appointed Attorney-in-Fact
	 	 	26	 
	SECTION 7.08. Applicable Law
	 	 	27	 
	SECTION 7.09. Waivers; Amendment
	 	 	27	 
	SECTION 7.10. WAIVER OF JURY TRIAL
	 	 	27	 
	SECTION 7.11. Severability
	 	 	27	 
	SECTION 7.12. Counterparts
	 	 	28	 
	SECTION 7.13. Headings
	 	 	28	 
	SECTION 7.14. Jurisdiction; Consent to Service of Process
	 	 	28	 
	SECTION 7.15. Termination or Release
	 	 	28	 
	SECTION 7.16. Additional Subsidiaries
	 	 	29	 
	SECTION 7.17. Right of Setoff
	 	 	29	 

 

ii

 

	 	 	 
	Schedules
	 	 
	 
	 	 
	Schedule I

	 	Subsidiary Guarantors
	Schedule II

	 	Pledged Equity Interests; Pledged Debt Securities
	Schedule III

	 	Intellectual Property
	 
	 	 
	Exhibits
	 	 
	 
	 	 
	Exhibit A

	 	Form of Supplement
	Exhibit B

	 	Form of Perfection Certificate
	Exhibit C

	 	Form of Hedging Counterparty Agreement

 

iii

 

GUARANTEE AND COLLATERAL AGREEMENT dated as of June 10, 2011 (this “Agreement”), among RENTECH
ENERGY MIDWEST CORPORATION, a corporation organized under the laws of the State of Delaware (the
“Borrower”), RENTECH, INC., a corporation organized under the laws of the State of Colorado
(“Parent Holdings”), the Subsidiaries of Parent Holdings from time to time party hereto and CREDIT
SUISSE AG, CAYMAN ISLANDS BRANCH, as collateral agent for the Secured Parties (in such capacity,
the “Collateral Agent”).

PRELIMINARY STATEMENT

Reference is made to the Credit Agreement dated as of June 10, 2011 (as amended, amended and
restated, refinanced, replaced, renewed, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among the Borrower, Parent Holdings, the lenders from time to time party
thereto (the “Lenders”) and Credit Suisse AG, Cayman Islands Branch, as administrative agent for
the Lenders and as the Collateral Agent.

The Lenders have agreed to extend credit to the Borrower pursuant to, and upon the terms and
conditions specified in, the Credit Agreement. The obligations of the Lenders to extend credit to
the Borrower are conditioned upon, among other things, the execution and delivery of this Agreement
by the Borrower and each Guarantor. Each Guarantor is an affiliate of the Borrower, will derive
substantial benefits from the extension of credit to the Borrower pursuant to the Credit Agreement
and is willing to execute and deliver this Agreement in order to induce the Lenders to extend such
credit. Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01. Credit Agreement. (a) Each capitalized term used but not defined herein shall
have the meaning assigned to it in the Credit Agreement. Each capitalized term defined in the New
York UCC (as such term is defined herein) and not defined in this Agreement shall have the meaning
assigned to it in the New York UCC (and, if defined in more than one Article of the New York UCC,
shall have the meaning given in Article 9 thereof). All references to the Uniform Commercial Code
shall mean the New York UCC; provided however, that in the event that, by reason of mandatory
provisions of law, any or all of the perfection or priority of, or remedies with respect to, any
Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction
other than the State of New York, the term “Uniform Commercial Code” shall mean the Uniform
Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the
provisions hereof relating to such perfection, priority or remedies.

(b) The rules of construction specified in Section 1.02 of the Credit Agreement also
apply to this Agreement.

SECTION 1.02. Other Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

“Accounts Receivable” shall mean all Accounts and all right, title and interest in any
returned goods, together with all rights, titles, securities and guarantees with respect thereto,
including any rights to stoppage in transit, replevin, reclamation and resales, and all related
security interests, liens and pledges, whether voluntary or involuntary, in each case whether now
existing or owned or hereafter arising or acquired.

 

 

 

“Agent” shall mean, collectively, the Collateral Agent and the Administrative Agent.

“Agreement” shall have the meaning assigned to such term in the introductory paragraph to this
Agreement.

“Arranger” shall mean Credit Suisse Securities (USA) LLC.

“Article 9 Collateral” shall have the meaning assigned to such term in Section 4.01.

“Borrower” shall have the meaning assigned to such term in the introductory paragraph to this
Agreement.

“Claiming Party” shall have the meaning assigned to such term in Section 6.02.

“Collateral” shall mean the Article 9 Collateral and the Pledged Collateral.

“Collateral Agent” shall have the meaning assigned to such term in the introductory paragraph
to this Agreement.

“Contributing Party” shall have the meaning assigned to such term in Section 6.02.

“Controlled Foreign Corporation” shall mean “controlled foreign corporation” as defined in the
Tax Code.

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

“Copyrights” shall mean all of the following now owned or hereafter acquired by any Grantor:
(a) all copyright rights in any work subject to the copyright laws of the United States or any
other country, whether as author, assignee, transferee or otherwise and (b) all registrations and
applications for registration of any such copyright in the United States or any other country,
including registrations, recordings, supplemental registrations and pending applications for
registration in the United States Copyright Office (or any successor office or any similar office
in any other country), including those listed on Schedule III.

“Credit Agreement” shall have the meaning assigned to such term in the preliminary statement
to this Agreement.

“Federal Securities Laws” shall have the meaning assigned to such term in Section
5.04.

“General Intangibles” shall mean all choses in action and causes of action and all other
intangible personal property of every kind and nature (other than Accounts) and other general
intangibles now owned or hereafter acquired by any Grantor, including all rights and interests in
partnerships, limited partnerships, limited liability companies and other unincorporated entities,
corporate or other business records, indemnification claims, contract rights (including rights
under leases, whether entered into as lessor or lessee, Hedging Agreements, the Management
Agreement and other agreements), Intellectual Property, goodwill, registrations, franchises, tax
refund claims and any letter of credit, guarantee, claim, security interest or other security held
by or granted to any Grantor to secure payment by an Account Debtor of any of the Accounts.

 

2

 

“Grantors” shall mean Parent Holdings, the Borrower and the Subsidiary Guarantors.

“Guarantors” shall mean Parent Holdings and the Subsidiary Guarantors but shall exclude any
direct or indirect subsidiary of the Borrower that is a Controlled Foreign Corporation.

“Intellectual Property” shall mean all intellectual and similar property of every kind and
nature now owned or hereafter acquired by any Grantor, including inventions, designs, Patents,
Copyrights, Licenses, Trademarks, trade secrets, confidential or proprietary technical and business
information, know-how, show-how or other data or information, software and databases and all
embodiments or fixations thereof and related documentation, registrations and franchises, and all
additions, improvements and accessions to, and books and records describing or used in connection
with, any of the foregoing.

“Lenders” shall have the meaning assigned to such term in the preliminary statement to this
Agreement.

“License” shall mean any Patent License, Trademark License, Copyright License or other license
or sublicense agreement relating to Intellectual Property to which any Grantor is a party,
including those listed on Schedule III.

“New York UCC” shall mean the Uniform Commercial Code as from time to time in effect in the
State of New York.

“Obligations” shall mean (a) the due and punctual payment by the Borrower of (i) the principal
of, premium, including any Payment Premium, and interest (including interest accruing during the
pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or otherwise and (ii) all
other monetary obligations of the Borrower to any of the Secured Parties under the Credit Agreement
and each of the other Loan Documents, including obligations to pay fees, expense reimbursement
obligations and indemnification obligations, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in
such proceeding), (b) the due and punctual performance of all other obligations of the Borrower
under or pursuant to this Agreement and each of the other Loan Documents to which it is a party,
(c) the due and punctual payment and performance of all the obligations of each other Loan Party
under or pursuant to the Security Documents and each of the other Loan Documents to which they are
a party, and (d) the due and punctual payment and performance of all obligations of the Borrower
and the other Loan Parties under each Permitted Hedging Agreement.

“Parent Holdings” shall have the meaning assigned to such term in the introductory paragraph
to this Agreement.

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

 

3

 

“Patents” shall mean all of the following now owned or hereafter acquired by any Grantor: (a)
all letters patent of the United States or the equivalent thereof in any other country, all
registrations and recordings thereof, and all applications for letters patent of the United
States or the equivalent thereof in any other country, including registrations, recordings and
pending applications in the United States Patent and Trademark Office (or any successor or any
similar offices in any other country), including those listed on Schedule III and (b) all
reissues, continuations, divisions, continuations-in-part, renewals or extensions thereof, and the
inventions disclosed or claimed therein, including the right to make, use and/or sell the
inventions disclosed or claimed therein.

“Perfection Certificate” shall mean a certificate substantially in the form of Exhibit
B, completed and supplemented with the schedules and attachments contemplated thereby.

“Permitted Hedging Agreement” shall mean each Hedging Agreement entered into by a Loan Party
not for speculative purposes entered into with any counterparty that is a Secured Party.

“Pledged Collateral” shall have the meaning assigned to such term in Section 3.01.

“Pledged Debt Securities” shall have the meaning assigned to such term in Section
3.01.

“Pledged Equity Interests” shall have the meaning assigned to such term in Section
3.01.

“Pledged Securities” shall mean any promissory notes, unit certificates, stock certificates or
other securities (as defined in Article 8 of the New York UCC) now or hereafter included in the
Pledged Collateral, including all certificates, instruments or other documents representing or
evidencing any Pledged Collateral.

“Secured Parties” shall mean, collectively, (a) with respect to the Obligations described in
clauses (a) through (c) of the definition of “Obligations”, the Administrative Agent, the
Collateral Agent and the Lenders, and (b) with respect to the Obligations described in clause (d)
of the definition of “Obligations,” the Administrative Agent, the Collateral Agent, the Lenders and
each counterparty to a Permitted Hedging Agreement if (i) at the date of entering into such
Permitted Hedging Agreement such counterparty was the Administrative Agent, the Collateral Agent,
the Arranger, a Lender or any Affiliate of any such Person, and (ii) such counterparty executes and
delivers to the Administrative Agent a letter agreement substantially in the form of Exhibit
C hereto.

“Security Interest” shall have the meaning assigned to such term in Section 4.01.

“Subsidiary Guarantors” shall mean (a) the Subsidiaries identified on Schedule I
hereto as Subsidiary Guarantors and (b) each other Subsidiary that becomes a party to this
Agreement as a Subsidiary Guarantor after the Closing Date.

“Tax Code” shall mean the United States Internal Revenue Code of 1986, as amended from time to
time.

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

 

4

 

“Trademarks” shall mean all of the following now owned or hereafter acquired by any Grantor:
(a) all trademarks, service marks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, trade dress, logos, other source or business identifiers,
designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all registration and recording applications filed in
connection therewith, including registrations and registration applications in the United States
Patent and Trademark Office (or any successor office) or any similar offices in any State of the
United States or any other country or any political subdivision thereof, and all extensions or
renewals thereof, including those listed on Schedule III, (b) all goodwill associated
therewith or symbolized thereby and (c) all other assets, rights and interests that uniquely
reflect or embody such goodwill.

ARTICLE II

Guarantee

SECTION 2.01. Guarantee. Each Guarantor irrevocably and unconditionally guarantees, jointly
with the other Guarantors and severally, as a primary obligor and not merely as a surety, the due
and punctual payment and performance of the Obligations. Each Guarantor further agrees that the
Obligations may be extended or renewed, in whole or in part, without notice to or further assent
from it, and that it will remain bound upon its guarantee hereunder notwithstanding any such
extension or renewal of any Obligation. Each Guarantor waives presentment to, demand of payment
from and protest to the Borrower or any other Loan Party of any Obligation, and also waives notice
of acceptance of its guarantee and notice of protest for nonpayment.

SECTION 2.02. Guarantee of Payment; Continuing Guarantee. Each Guarantor further agrees that
its guarantee hereunder constitutes a guarantee of payment when due (whether or not any bankruptcy
or similar proceeding shall have stayed the accrual or collection of any of the Obligations or
operated as a discharge thereof) and not of collection, and waives any right to require that any
resort be had by the Collateral Agent or any other Secured Party to any security held for the
payment or performance of the Obligations or to any balance of any Deposit Account or credit on the
books of the Agent or any other Secured Party in favor of the Borrower, any other Loan Party or any
other Person. Each Guarantor agrees that its guarantee hereunder is continuing in nature and
applies to all Obligations, whether currently existing or hereafter incurred.

SECTION 2.03. No Limitations, Etc. (a) Except for termination of a Guarantor’s obligations
hereunder as expressly provided in Section 7.15, the obligations of each Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not
be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason
of the invalidity, illegality or unenforceability of the Obligations, any impossibility in the
performance of the Obligations or otherwise. Without limiting the generality of the foregoing, the
obligations of each Guarantor hereunder shall not be discharged, impaired or otherwise affected by
(i) the failure of the Collateral Agent or any other Secured Party to assert any claim or demand or
to enforce or exercise any right or remedy under the provisions of any Loan Document or otherwise,
(ii) any extension or renewal of any of the Obligations, (iii) any rescission, waiver, amendment or
modification of, or any release from any of the terms or provisions of, any Loan Document or any
other agreement, including with respect to any other Guarantor under this Agreement, (iv) the
release of, or any impairment of or failure to perfect any Lien on or security interest in, any
security held by the Collateral Agent or any other Secured Party for the Obligations or any of
them, (v) any default, failure or delay, willful or otherwise, in the performance of the
Obligations or (vi) any other act, omission or delay to do any other act that may or might in any
manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge of any
Guarantor as a matter of law or equity (other than the indefeasible payment in full in cash of all
the Obligations (other than contingent indemnification obligations in respect of which no claim for
payment has been asserted by the Person entitled thereto)) or which would impair or eliminate the
right of any Guarantor to subrogation. Each Guarantor expressly authorizes the Collateral Agent
and the other
Secured Parties to take and hold security for the payment and performance of the Obligations,
to exchange, waive or release any or all such security (with or without consideration), to enforce
or apply such security and direct the order and manner of any sale thereof in their sole discretion
or to release or substitute any one or more other guarantors or obligors upon or in respect of the
Obligations, all without affecting the obligations of any Guarantor hereunder. Each Guarantor
acknowledges that it will receive substantial direct and indirect benefits from the financing
arrangements contemplated by the Loan Documents.

 

5

 

(b) Each Guarantor waives any defense based on or arising out of any defense of the Borrower
or any other Loan Party or the unenforceability of the Obligations or any part thereof from any
cause, or the cessation from any cause of the liability of the Borrower or any other Loan Party,
other than the indefeasible payment in full in cash of all the Obligations (other than contingent
indemnification obligations in respect of which no claim for payment has been asserted by the
Person entitled thereto). The Collateral Agent and the other Secured Parties may, at their
election, foreclose on any security held by one or more of them by one or more judicial or
nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or
adjust any part of the Obligations, make any other accommodation with the Borrower or any other
Loan Party or exercise any other right or remedy available to them against the Borrower or any
other Loan Party, without affecting or impairing in any way the liability of any Guarantor
hereunder except to the extent the Obligations (other than contingent indemnification obligations
in respect of which no claim for payment has been asserted by the Person entitled thereto) have
been fully and indefeasibly paid in full in cash. Each Guarantor waives any defense arising out of
any such election even though such election operates, pursuant to applicable law, to impair or to
extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor
against the Borrower or any other Loan Party, as the case may be, or any security.

SECTION 2.04. Reinstatement. Each Guarantor agrees that its guarantee hereunder shall
continue to be effective or be reinstated, as the case may be, if at any time payment, or any part
thereof, of any Obligation is rescinded or must otherwise be restored by the Collateral Agent or
any other Secured Party upon the bankruptcy or reorganization of the Borrower, any other Loan Party
or otherwise.

SECTION 2.05. Agreement To Pay; Subrogation. In furtherance of the foregoing and not in
limitation of any other right that the Collateral Agent or any other Secured Party has at law or in
equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other Loan
Party to pay any Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each Guarantor, upon notice from the
Collateral Agent or the Administrative Agent, hereby promises to and will forthwith pay, or cause
to be paid, to the Collateral Agent for distribution to the applicable Secured Parties in cash the
amount of such unpaid Obligation. Upon payment by any Guarantor of any sums to the Collateral
Agent as provided above, all rights of such Guarantor against the Borrower or any other Loan Party
arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity
or otherwise shall in all respects be subject to Article VI.

SECTION 2.06. Information. Each Guarantor assumes all responsibility for being and keeping
itself informed of the Borrower’s and each other Loan Party’s financial condition and assets and of
all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature,
scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that
neither the Collateral Agent nor any other Secured Party will have any duty to advise such
Guarantor of information known to it or any of them regarding such circumstances or risks.

SECTION 2.07. Taxes. Each Guarantor agrees that the provisions of Section 2.15 of the
Credit Agreement shall apply equally to such Guarantor with respect to payments made by it
hereunder.

 

6

 

ARTICLE III

Pledge of Securities

SECTION 3.01. Pledge. As security for the payment or performance, as the case may be, in full
of the Obligations, each Grantor hereby assigns and pledges to the Collateral Agent, its successors
and assigns, for the ratable benefit of the Secured Parties, and hereby grants to the Collateral
Agent, its successors and assigns, for the ratable benefit of the Secured Parties, a security
interest in, all of such Grantor’s right, title and interest in, to and under (a) subject to the
second paragraph of this Section 3.01, (i) the Equity Interests in any Subsidiary or other
Equity Interests owned by such Grantor on the date hereof (including all such Equity Interests
listed on Schedule II, but excluding Equity Interests of a type described in Section
4.01(d)(i)(C)), (ii) any other Equity Interests obtained in the future by such Grantor and
(iii) all certificates, if any, representing any such Equity Interests (all the foregoing
collectively referred to herein as the “Pledged Equity Interests”), (b)(i) the debt securities
owing by Parent Holdings or any Subsidiary held by such Grantor on the date hereof (including all
such debt securities listed opposite the name of such Grantor on Schedule II), (ii) any
debt securities owing by Parent Holdings or any Subsidiary obtained in the future by such Grantor
and (iii) all promissory notes and other instruments evidencing any such debt securities (all the
foregoing collectively referred to herein as the “Pledged Debt Securities”), (c) all other property
that may be delivered to and held by the Collateral Agent pursuant to the terms of this Section
3.01, (d) subject to Section 3.06, all payments of principal or interest, dividends,
cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of, in exchange for or upon the conversion of, and all other Proceeds
received in respect of, the securities referred to in clauses (a) and (b) above, (e) subject to
Section 3.06, all rights and privileges of such Grantor with respect to the securities and
other property referred to in clauses (a), (b), (c) and (d) above, and (f) all Proceeds of any of
the foregoing (the items referred to in clauses (a) through (f) above being collectively referred
to as the “Pledged Collateral”).

Notwithstanding anything herein to the contrary, in no event shall Pledged Equity Interests or
Pledged Collateral include, or the Security Interest attach to, the outstanding Equity Interests of
a Controlled Foreign Corporation in excess of 66% of the voting power of all classes of Equity
Interests of such Controlled Foreign Corporation entitled to vote; provided, that (i)
immediately upon the amendment of the Tax Code to allow the pledge of a greater percentage of the
voting power of Equity Interests in a Controlled Foreign Corporation without adverse tax
consequences, the Collateral shall include, and the security interest granted by such Grantor shall
attach to, such greater percentage of Equity Interests of each Controlled Foreign Corporation, and
(ii) the foregoing restrictions shall not apply to any class of Equity Interests of such Controlled
Foreign Corporation not entitled to vote.

TO HAVE AND TO HOLD the Pledged Collateral, together with all right, title, interest, powers,
privileges and preferences pertaining or incidental thereto, unto the Collateral Agent, its
successors and assigns, for the ratable benefit of the Secured Parties, forever; subject, however,
to the terms, covenants and conditions hereinafter set forth.

SECTION 3.02. Delivery of the Pledged Collateral. (a) To the extent required for the
validity and first priority of the security interests created or intended to be created by the
Security Documents, each Grantor agrees promptly to deliver or cause to be delivered to the
Collateral Agent any and all certificates, instruments or other documents representing or
evidencing Pledged Securities.

 

7

 

(b) Upon delivery to the Collateral Agent, (i) any certificate, instrument or document
representing or evidencing Pledged Securities constituting a “security” shall be accompanied by
undated stock or unit powers duly executed in blank or other undated instruments of endorsement,
transfer or assignment satisfactory to the Collateral Agent and duly executed in blank and by such
other instruments and documents as the Collateral Agent may request and (ii) all other property
comprising part of the Pledged Collateral shall be accompanied by proper instruments of assignment
duly executed by the applicable Grantor and such other instruments or documents as the Collateral
Agent may request. Each delivery of Pledged Securities shall be accompanied by a schedule
describing the applicable securities, which schedule shall be attached hereto as Schedule
II and made a part hereof; provided that failure to attach any such schedule hereto shall not
affect the validity of the pledge of such Pledged Securities. Each schedule so delivered shall
supplement any prior schedules so delivered.

SECTION 3.03. Representations, Warranties and Covenants. Each Grantor, jointly with the other
Grantors and severally, represents and warrants, as of the Closing Date, that, and covenants to and
with the Collateral Agent, for the benefit of the Secured Parties, that:

(a) Schedule II correctly sets forth the percentage of the issued and outstanding
units of each class of the Equity Interests of the issuer thereof represented by such Pledged
Equity Interests and includes all Equity Interests, debt securities and promissory notes required
to be pledged hereunder;

(b) the Pledged Equity Interests and Pledged Debt Securities have been duly and validly
authorized and issued by the issuers thereof and (i) in the case of Pledged Equity Interests (other
than interests in any limited liability company), are fully paid and non-assessable and (ii) in the
case of Pledged Debt Securities, are legal, valid and binding obligations of the issuers thereof;

(c) except for the security interests granted hereunder (or otherwise permitted under the
Credit Agreement), each Grantor (i) is and, subject to any transfers made in compliance with the
Credit Agreement, will continue to be the direct owner, beneficially and of record, of the Pledged
Securities indicated on Schedule II as owned by such Grantor, (ii) holds the same free and
clear of all Liens and (iii) will make no assignment, pledge, hypothecation or transfer of, or
create or permit to exist any security interest in or other Lien on, the Pledged Collateral, other
than transfers made in compliance with the Credit Agreement;

(d) except for restrictions and limitations imposed by the Loan Documents or securities laws
generally, the Pledged Collateral is and will continue to be freely transferable and assignable,
and none of the Pledged Collateral is or will be subject to any option, right of first refusal,
shareholders agreement, charter or by-law provisions or contractual restriction of any nature that
might prohibit, impair, delay or otherwise affect the pledge of such Pledged Collateral hereunder,
the sale or disposition thereof pursuant hereto or the exercise by the Collateral Agent of rights
and remedies hereunder;

(e) each Grantor (i) has the power and authority to pledge the Pledged Collateral pledged by
it hereunder in the manner hereby done or contemplated and (ii) will defend its title or interest
thereto or therein against any and all Liens (other than any Lien created or permitted by the Loan
Documents), however arising, of all Persons whomsoever;

(f) no consent or approval of any Governmental Authority, any securities exchange or any other
Person was or is necessary to the validity of the pledge effected hereby (other than such as have
been obtained and are in full force and effect);

 

8

 

(g) by virtue of the execution and delivery by each Grantor of this Agreement, when any
Pledged Securities are delivered to the Collateral Agent in accordance with this Agreement, the
Collateral Agent will obtain, for the ratable benefit of the Secured Parties, a legal, valid and
perfected first priority lien upon and security interest in such Pledged Securities as security for
the payment and performance of the Obligations; and

(h) the pledge effected hereby is effective to vest in the Collateral Agent, for the ratable
benefit of the Secured Parties, the rights of the Collateral Agent in the Pledged Collateral as set
forth herein and all action by any Grantor necessary or desirable to protect and perfect the Lien
on the Pledged Collateral has been duly taken.

SECTION 3.04. Certification of Limited Liability Company Interests and Limited Partnership
Interests. As of the Closing Date, except as may be set forth on Schedule II, no interest in any
limited liability company or limited partnership pledged hereunder is represented by a certificate
or is a “security” within the meaning of Article 8 of the New York UCC or the Uniform Commercial
Code of the applicable jurisdiction or governed by Article 8 of the New York UCC or the Uniform
Commercial Code of the applicable jurisdiction. If after the Closing Date any interest in any
limited liability company or limited partnership pledged hereunder becomes represented by a
certificate or becomes a “security” within the meaning of Article 8 of the New York UCC or the
Uniform Commercial Code of a relevant jurisdiction, the applicable Grantor agrees to (i) deliver
such certificate or (ii) cause such “security” to be a “certificated security” (within the meaning
of Article 8 of the New York UCC and the Uniform Commercial Code of the applicable jurisdiction)
and deliver such certificated security, in each case to the Collateral Agent, together with an
undated instrument of endorsement, transfer or assignment duly executed in blank.

SECTION 3.05. Registration in Nominee Name; Denominations. The Collateral Agent, on behalf of
the Secured Parties, shall have the right (in its sole and absolute discretion), if an Event of
Default shall have occurred and be continuing, to hold the Pledged Securities in its own name as
pledgee, the name of its nominee (as pledgee or as sub-agent) or the name of the applicable
Grantor, endorsed or assigned in blank or in favor of the Collateral Agent. Each Grantor will
promptly give to the Collateral Agent copies of any notices or other communications received by it
with respect to Pledged Securities in its capacity as the registered owner thereof. The Collateral
Agent shall at all times have the right to exchange the certificates representing Pledged
Securities for certificates of smaller or larger denominations for any purpose consistent with this
Agreement.

SECTION 3.06. Voting Rights; Dividends and Interest, Etc. (a) Unless and until an Event of
Default shall have occurred and be continuing and, subject to applicable law, the Collateral Agent
shall have given the Grantors notice of its intent to exercise its rights under this Agreement
(which notice shall be deemed to have been given immediately upon the occurrence of an Event of
Default under paragraph  (g) or (h) of Article VII of the Credit
Agreement):

(i) Each Grantor shall be entitled to exercise any and all voting and/or other
consensual rights and powers inuring to an owner of Pledged Securities or any part
thereof for any purpose consistent with the terms of this Agreement, the Credit
Agreement and the other Loan Documents; provided, however, that such rights and
powers shall not be exercised in any manner that could materially and adversely
affect the rights inuring to a holder of any Pledged Securities or the rights and
remedies of the Collateral Agent or the other Secured Parties under this Agreement
or the Credit Agreement or any other Loan Document or the ability of the Secured
Parties to exercise the same.

 

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(ii) The Collateral Agent shall execute and deliver to each Grantor, or cause
to be executed and delivered to each Grantor, all such proxies, powers of attorney
and other instruments as such Grantor may reasonably request for the purpose of
enabling such Grantor to exercise the voting and/or consensual rights and powers it
is entitled to exercise pursuant to Section 3.06(a)(i).

(iii) Each Grantor shall be entitled to receive and retain, free and clear of
the Lien of this Agreement, any and all dividends, interest, principal and other
distributions paid on or distributed in respect of the Pledged Securities to the
extent and only to the extent that such dividends, interest, principal and other
distributions are permitted by, and otherwise paid or distributed in accordance
with, the terms and conditions of the Credit Agreement, the other Loan Documents and
applicable law; provided, however, that any noncash dividends, interest, principal
or other distributions that would constitute Pledged Equity Interests or Pledged
Debt Securities, whether resulting from a subdivision, combination or
reclassification of the outstanding Equity Interests in the issuer of any Pledged
Securities or received in exchange for Pledged Securities or any part thereof, or in
redemption thereof, or as a result of any merger, consolidation, acquisition or
other exchange of assets to which such issuer may be a party or otherwise, shall be
and become part of the Pledged Collateral, and, if received by any Grantor, shall
not be commingled by such Grantor with any of its other funds or property but shall
be held separate and apart therefrom, shall be held in trust for the ratable benefit
of the Secured Parties and shall be forthwith delivered to the Collateral Agent in
the same form as so received (with any necessary endorsement or instrument of
assignment).

(b) Upon the occurrence and during the continuance of an Event of Default, after the
Collateral Agent shall have notified (or shall be deemed to have notified pursuant to Section
3.06(a)) the Grantors of the suspension of their rights under Section 3.06(a)(iii),
then all rights of any Grantor to dividends, interest, principal or other distributions that such
Grantor is authorized to receive pursuant to Section 3.06(a)(iii) shall cease, and all such
rights shall thereupon become vested in the Collateral Agent, for the ratable benefit of the
Secured Parties. The Collateral Agent shall have the sole and exclusive right and authority to
receive and retain such dividends, interest, principal or other distributions. All dividends,
interest, principal or other distributions received by any Grantor contrary to the provisions of
this Section 3.06 shall be held in trust for the benefit of the Collateral Agent, for the
ratable benefit of the Secured Parties, and shall be segregated from other property or funds of
such Grantor and shall be forthwith delivered to the Collateral Agent upon demand in the same form
as so received (with any necessary endorsement or instrument of assignment). Any and all money and
other property paid over to or received by the Collateral Agent pursuant to the provisions of this
Section 3.06(b) shall be retained by the Collateral Agent in an account to be established
by the Collateral Agent upon receipt of such money or other property and shall be applied in
accordance with the provisions of Section 5.02. After all Obligations (other than
contingent indemnification obligations in respect of which no demand for payment has been asserted
by the Person entitled thereto) are paid in full in cash, the Collateral Agent shall, promptly
after all such Events of Default have been cured or waived, repay to each applicable Grantor
(without interest) all dividends, interest, principal or other distributions that such Grantor
would otherwise be permitted to retain pursuant to the terms of Section 3.06(a)(iii) and
that remain in such account.

(c) Upon the occurrence and during the continuance of an Event of Default, after the
Collateral Agent shall have notified (or shall be deemed to have notified pursuant to Section
3.06(a)) the Grantors of the suspension of their rights under Section 3.06(a)(i), then
all rights of any Grantor to exercise the voting and consensual rights and powers it is entitled to
exercise pursuant to Section 3.06(a)(i), and the obligations of the Collateral Agent under
Section 3.06(a)(ii), shall cease, and all such
rights shall thereupon become vested in the Collateral Agent, for the ratable benefit of the
Secured Parties. The Collateral Agent shall have the sole and exclusive right and authority to
exercise such voting and consensual rights and powers; provided that, unless otherwise directed by
the Required Lenders, the Collateral Agent shall have the right from time to time following and
during the continuance of an Event of Default to permit the Grantors to exercise such rights.

 

10

 

(d) Any notice given by the Collateral Agent to the Grantors exercising its rights under
Section 3.06(a) (i) may be given by telephone if promptly confirmed in writing, (ii) may be
given to one or more of the Grantors at the same or different times and (iii) may suspend the
rights of the Grantors under Section 3.06(a)(i) or Section 3.06(a)(iii) in part
without suspending all such rights (as specified by the Collateral Agent in its sole and absolute
discretion) and without waiving or otherwise affecting the Collateral Agent’s rights to give
additional notices from time to time suspending other rights so long as an Event of Default has
occurred and is continuing.

ARTICLE IV

Security Interests in Personal Property

SECTION 4.01. Security Interest. (a) As security for the payment or performance, as the case
may be, in full of the Obligations, each Grantor hereby grants to the Collateral Agent, its
successors and assigns, for the ratable benefit of the Secured Parties, a security interest (the
“Security Interest”), in all right, title or interest in or to any and all of the following assets
and properties now owned or at any time hereafter acquired by such Grantor or in which such Grantor
now has or at any time in the future may acquire any right, title or interest (collectively, the
“Article 9 Collateral”):

(i) all Accounts;

(ii) all As-Extracted Collateral;

(iii) all Chattel Paper;

(iv) all cash and Deposit Accounts;

(v) all Documents;

(vi) all Equipment;

(vii) all Fixtures;

(viii) all General Intangibles;

(ix) all Instruments;

(x) all Inventory;

(xi) all Investment Property;

(xii) all Letter-of-Credit Rights;

 

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(xiii) all Commercial Tort Claims identified on Schedule 12 to the
Perfection Certificate;

(xiv) all Securities Accounts;

(xv) all books and records pertaining to the Article 9 Collateral; and

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

(b) Each Grantor hereby irrevocably authorizes the Collateral Agent at any time and from time
to time to file in any relevant jurisdiction any initial financing statements (including fixture
filings) with respect to the Article 9 Collateral or any part thereof and amendments thereto that
(i) indicate the Article 9 Collateral as “all assets” of such Grantor or words of similar effect
and (ii) contain the information required by Article 9 of the Uniform Commercial Code of each
applicable jurisdiction for the filing of any financing statement or amendment, including (A)
whether such Grantor is an organization, the type of organization and any organizational
identification number issued to such Grantor, and (B) in the case of a financing statement filed as
a fixture filing, a sufficient description of the real property to which such Article 9 Collateral
relates. Each Grantor agrees to provide such information to the Collateral Agent promptly upon
request.

Each Grantor also ratifies its authorization for the Collateral Agent to file in any relevant
jurisdiction any initial financing statements or amendments thereto if filed prior to the Closing
Date.

The Collateral Agent is further authorized to file with the United States Patent and Trademark
Office or United States Copyright Office (or any successor office or any similar office in any
other country) such documents as may be necessary or advisable for the purpose of perfecting,
confirming, continuing, enforcing or protecting the Security Interest granted by each Grantor,
without the signature of such Grantor, and naming such Grantor or the Grantors as debtors and the
Collateral Agent as secured party.

(c) The Security Interest is granted as security only and shall not subject the Collateral
Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of
any Grantor with respect to or arising out of the Article 9 Collateral.

(d) Notwithstanding anything herein to the contrary, (i) in no event shall Article 9
Collateral include or the Security Interest attach to (A) any permit, license, contract or
agreement to which any Grantor is a party or any of its rights or interests thereunder to the
extent and for so long as the grant of the Security Interest shall constitute or result in (I) the
unenforceability of any right of such Grantor therein, (II) a breach or termination pursuant to the
terms of, or a default under, any such permit, license, contract or agreement or (III) a violation
of any statute, rule, regulation or other law (in each case, other than to the extent that any such
unenforceability, breach, termination or violation would be rendered ineffective pursuant to
Sections 9-406, 9-407, 9-408 or 9-409 of the New York UCC or the Uniform Commercial Code of any
applicable jurisdiction or any other applicable law or principles of equity), (B) any fixtures,
improvements or equipment acquired by any Grantor after the Closing Date if (I) at least 80% of the
purchase price of such fixtures, improvements or equipment was financed through the incurrence of
Indebtedness, (II) such Indebtedness is secured by a Lien on such fixtures, improvements or
equipment and (III) the terms of the instrument or instruments governing such Indebtedness (but not
of any refinancings or replacements thereof) would be violated by the attachment of the Security

 

12

 

Interest to such fixtures, improvements or equipment, (C) the Equity Interests in any Person that
is not the Borrower or a Subsidiary to the extent and for so long as the grant of the Security Interest shall
constitute or result in a breach of, or default under, the terms of such Person’s joint venture
agreement, limited liability company agreement, joint operating agreement or similar document
(other than to the extent that any such term would be rendered ineffective pursuant to Sections
9-406, 9-407, 9-408 or 9-409 of the New York UCC or any other applicable law or principles of
equity); provided that the Grantors shall have used commercially reasonable efforts to cause such
joint venture agreement, limited liability company agreement, joint operating agreement or similar
document not to contain any provision that would result in the grant of the Security Interest
constituting or resulting in a breach thereof or a default thereunder; (D) any application for
registration of a trademark or service mark with the United States Patent and Trademark Office (or
any successor office) on an “intent to use” basis until such time as an amendment to allege use is
submitted to and accepted by the United States Patent and Trademark Office (or any successor
office), at which point the Security Interest shall automatically attach to such trademark or
service mark; provided, however, that, in the case of clauses (A), (B) and (C) above, the Security
Interest shall attach immediately at such time as the condition causing such unenforceability,
breach, termination or violation shall be remedied or removed, such Indebtedness shall be repaid,
refinanced or replaced or such term shall be removed and, to the extent severable, shall attach
immediately to any portion of such contract, agreement, document, real property, improvement or
equipment (including any proceeds of the foregoing) that does not result in any of the consequences
specified in clauses (A), (B)(III) or (C) above, as the case may be, (E) equipment provided by a
third party that is not an Affiliate of the Borrower for the purpose of reducing regulated or
greenhouse gas emissions, (F) any carbon credits or similar allowances owned by any Grantor and (G)
the Equity Interests in any Controlled Foreign Corporation expressly excluded from Pledged Equity
Interests pursuant to the second paragraph in Section 3.01.

SECTION 4.02. Representations and Warranties. Each Grantor, jointly with the other Grantors
and severally, represents and warrants, as of the Closing Date, to the Collateral Agent and the
other Secured Parties that:

(a) Each Grantor has good and valid rights in and title to the Article 9 Collateral with
respect to which it has purported to grant a Security Interest hereunder and has full power and
authority to grant to the Collateral Agent, for the ratable benefit of the Secured Parties, the
Security Interest in such Article 9 Collateral pursuant hereto and to execute, deliver and perform
its obligations in accordance with the terms of this Agreement, without the consent or approval of
any other Person other than any consent or approval that has been obtained and is in full force and
effect.

(b) The Perfection Certificate, when delivered in accordance with the Credit Agreement, will
be duly prepared, completed and executed and the information set forth therein (including (x) the
exact legal name of each Grantor and (y) the jurisdiction of organization of each Grantor) will be
correct and complete in all material respects when delivered. Uniform Commercial Code financing
statements (including fixture filings, as applicable) or other appropriate filings, recordings or
registrations containing a description of the Article 9 Collateral have been prepared by the
Collateral Agent, or will be based upon the information provided to the Collateral Agent and the
other Secured Parties in the Perfection Certificate for filing in each governmental, municipal or
other office specified in Section 2 of the Perfection Certificate (or specified by notice
from the Borrower to the Collateral Agent after the Closing Date in the case of filings, recordings
or registrations required by Sections 5.06 or 5.12 of the Credit Agreement), which
are all the filings, recordings and registrations (other than filings required to be made in the
United States Patent and Trademark Office and the United States Copyright Office in order to
perfect the Security Interest in the Article 9 Collateral consisting of United States Patents,
United States registered Trademarks and United States registered Copyrights) that are necessary to
publish notice of and protect the validity of and to establish a legal, valid and perfected
security interest in favor of the Collateral Agent (for the ratable benefit of the Secured Parties)
in respect of all Article 9 Collateral in which the Security Interest may be perfected by filing,
recording

 

13

 

 or registration in the United States of America, its territories or possessions, any constituent State of the United States
of America or the District of Columbia, and no further or subsequent filing, refiling, recording,
rerecording, registration or reregistration is necessary in any such jurisdiction, except as
provided under applicable law with respect to the filing of continuation statements. Except for
United States Patents, United States Trademarks and United States Copyrights that (together with
any “intent to use” trademarks and service marks for which an amendment to allege use has not been
accepted by the United States Patent and Trademark Office (but only until such amendment has been
so accepted) have, in the Collateral Agent’s reasonable judgment, an aggregate fair market value
not in excess of $1,000,000, each Grantor represents and warrants that a fully executed agreement
in the form hereof (or a fully executed short form agreement in form and substance satisfactory to
the Collateral Agent), and containing a description of all Article 9 Collateral consisting of
Intellectual Property with respect to United States Patents (and Patents for which the United
States patent applications are pending), United States registered Trademarks (and Trademarks for
which United States registration applications are pending)) and United States registered Copyrights
(and Copyrights for which United States registration applications are pending) has been delivered
to the Collateral Agent for recording by the United States Patent and Trademark Office and the
United States Copyright Office pursuant to 35 U.S.C. §261, 15 U.S.C. §1060 or 17 U.S.C. §205 and
the regulations thereunder, as applicable, and otherwise as may be required pursuant to the laws of
any other necessary jurisdiction, to protect the validity of and to establish a legal, valid and
perfected security interest in favor of the Collateral Agent (for the ratable benefit of the
Secured Parties) in respect of all Article 9 Collateral consisting of Patents, Trademarks and
Copyrights in which a security interest may be perfected by filing, recording or registration in
the United States of America, its territories or possessions, any constituent State of the United
States of America or the District of Columbia, and no further or subsequent filing, refiling,
recording, rerecording, registration or reregistration is necessary (other than such actions as are
necessary to perfect the Security Interest with respect to any Article 9 Collateral consisting of
Patents, Trademarks and Copyrights (or registration or application for registration thereof)
acquired or developed after the date hereof).

(c) The Security Interest constitutes (i) a legal and valid security interest in all the
Article 9 Collateral securing the payment and performance of the Obligations, (ii) subject to the
filings described in Section 4.02(b), a perfected security interest in all Article 9
Collateral in which a security interest may be perfected by filing, recording or registering a
financing statement or analogous document in the United States of America, its territories or
possessions, any constituent State of the United States of America or the District of Columbia
pursuant to the Uniform Commercial Code or other applicable law in such jurisdictions and (iii) a
security interest that shall be perfected in all Article 9 Collateral in which a security interest
may be perfected upon the receipt and recording of this Agreement (or a fully executed short form
agreement in form and substance satisfactory to the Collateral Agent) with the United States Patent
and Trademark Office and the United States Copyright Office, as applicable. The Security Interest
is and shall be prior to any other Lien on any of the Article 9 Collateral, other than Liens
expressly permitted pursuant to Section 6.02 of the Credit Agreement.

(d) The Article 9 Collateral is owned by the Grantors free and clear of any Lien, except for
Liens expressly permitted pursuant to Section 6.02 of the Credit Agreement. No Grantor has
filed or consented to the filing of (i) any financing statement or analogous document under the
Uniform Commercial Code or any other applicable laws covering any Article 9 Collateral, (ii) any
assignment in which any Grantor assigns any Collateral or any security agreement or similar
instrument covering any Article 9 Collateral with the United States Patent and Trademark Office or
the United States Copyright Office, (iii) any notice under the Assignment of Claims Act or (iv) any
assignment in which any Grantor assigns any Article 9 Collateral or any security agreement or
similar instrument covering any Article 9 Collateral with any foreign governmental, municipal or
other office, which financing statement or analogous document, assignment, security agreement or
similar instrument is still in effect, except, in each case, for Liens expressly permitted pursuant
to Section 6.02 of the Credit Agreement. As of the date
hereof, no Grantor holds any Commercial Tort Claims in excess of $750,000 except as indicated
on Schedule 12 to the Perfection Certificate.

 

14

 

SECTION 4.03. Covenants. (a) Each Grantor agrees promptly to notify the Collateral Agent in
writing of any change (i) in such Grantor’s legal name, as reflected in its organizational
documents, (ii) in the jurisdiction of organization or formation of such Grantor, (iii) if it is
not a registered organization (as defined in the New York UCC), in the location of its chief
executive office or its principal place of business, (iv) in such Grantor’s organizational form or
(v) in such Grantor’s Federal Taxpayer Identification Number or organizational identification
number assigned by the jurisdiction of organization. Each Grantor agrees to promptly provide the
Collateral Agent with certified organizational documents reflecting any of the changes described in
the first sentence of this Section 4.03. Each Grantor agrees not to effect or permit any
change referred to in the preceding sentence unless all filings have been made under the Uniform
Commercial Code or otherwise that are required in order for the Collateral Agent to continue at all
times following such change to have a valid, legal and perfected security interest in all the
Collateral with the priority required hereunder. Each Grantor also agrees promptly to notify the
Collateral Agent in writing if any material portion of the Collateral is damaged or destroyed.

(b) Each Grantor agrees to maintain, at its own cost and expense, such complete and accurate
records with respect to the Article 9 Collateral owned by it as is consistent with its current
practices and in accordance with such prudent and standard practices used in industries that are
the same as or similar to those in which such Grantor is engaged, but in any event to include
complete accounting records indicating all payments and proceeds received with respect to any part
of the Article 9 Collateral, and, at such time or times as the Collateral Agent may request,
promptly to prepare and deliver to the Collateral Agent a duly certified schedule or schedules in
form and detail satisfactory to the Collateral Agent showing the identity, amount and location of
any and all Article 9 Collateral.

(c) [Reserved]

(d) Each Grantor shall, at its own expense, take any and all actions necessary to defend title
to the Article 9 Collateral against all persons and to defend the Security Interest and the
priority thereof against any Lien not expressly permitted pursuant to Section 6.02 of the
Credit Agreement.

(e) Each Grantor agrees, at its own expense, promptly to execute, acknowledge, deliver and
cause to be duly filed all such further instruments and documents and take all such actions as the
Collateral Agent may from time to time request to better assure, obtain, preserve, protect and
perfect the Security Interest and the rights and remedies created hereby, including the payment of
any fees and Taxes required in connection with the execution and delivery of this Agreement, the
granting of the Security Interest and the filing of any financing or continuation statements
(including fixture filings) or other documents in connection herewith or therewith. If any amount
payable to any Grantor under or in connection with any of the Article 9 Collateral shall be or
become evidenced by any promissory note or other instrument, such note or instrument shall be
promptly pledged and delivered to the Collateral Agent, duly endorsed in a manner satisfactory to
the Collateral Agent.

 

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Without limiting the generality of the foregoing, each Grantor hereby authorizes the
Collateral Agent, with prompt notice thereof to the Grantors, to supplement this Agreement by
supplementing Schedule III or adding additional schedules hereto to identify specifically
any asset or item of a Grantor (i) that constitutes Copyrights, Licenses, Patents or Trademarks and
(ii) that, together with all United States Copyrights, United States Patents and United States
Trademarks with respect to which a filing with the United States Patent and Trademark Office or the
United States Copyright Office has not been made (including any “intent to use” trademark or service mark applications for which an
amendment to allege use has not been accepted by the United States Patent and Trademark Office),
has, in the Collateral Agent’s reasonable judgment, an aggregate fair market value in excess of
$1,000,000; provided that any Grantor shall have the right, exercisable within 10 days after it has
been notified by the Collateral Agent of the specific identification of such Collateral, to advise
the Collateral Agent in writing of any inaccuracy of the representations and warranties made by
such Grantor hereunder with respect to such Collateral. Each Grantor agrees that it will use its
reasonable best efforts to take such action as shall be necessary in order that all representations
and warranties hereunder shall be true and correct with respect to such Collateral within 30 days
after the date it has been notified by the Collateral Agent of the specific identification of such
Collateral.

(f) The Collateral Agent and such Persons as the Collateral Agent may designate shall have the
right, at the applicable Grantor’s own cost and expense, upon reasonable notice and during normal
business hours, to inspect the Article 9 Collateral, all records related thereto (and to make
extracts and copies from such records) and the premises upon which any of the Article 9 Collateral
is located, to discuss the applicable Grantor’s affairs with the officers of such Grantor and its
independent accountants and to verify under reasonable procedures, the existence, validity, amount,
quality, quantity, value, condition and status of, or any other matter relating to, the Article 9
Collateral, including, in the case of Accounts or other Article 9 Collateral in the possession of
any third Person, by contacting Account Debtors or the third Person possessing such Article 9
Collateral for the purpose of making such a verification. The Collateral Agent shall have the
absolute right to share any information it gains from such inspection or verification with any
Secured Party.

(g) At its option, the Collateral Agent may discharge past due Taxes, assessments, charges,
fees, Liens, security interests or other encumbrances at any time levied or placed on the Article 9
Collateral and not expressly permitted pursuant to Section 5.03 or Section 6.02 of
the Credit Agreement, and may pay for the maintenance and preservation of the Article 9 Collateral
to the extent any Grantor fails to do so as required by the Credit Agreement or this Agreement, and
each Grantor jointly and severally agrees to reimburse the Collateral Agent on demand for any
payment made or any expense incurred by the Collateral Agent pursuant to the foregoing
authorization; provided, however, that nothing in this Section 4.03(g) shall be interpreted
as excusing any Grantor from the performance of, or imposing any obligation on the Collateral Agent
or any other Secured Party to cure or perform, any covenants or other promises of any Grantor with
respect to Taxes, assessments, charges, fees, Liens, security interests or other encumbrances and
maintenance as set forth herein or in the other Loan Documents.

(h) Each Grantor shall remain liable to observe and perform all the conditions and obligations
to be observed and performed by it under each contract, agreement or instrument relating to the
Article 9 Collateral, all in accordance with the terms and conditions thereof, and each Grantor
jointly and severally agrees to indemnify and hold harmless the Collateral Agent and the other
Secured Parties from and against any and all liability for such performance.

(i) No Grantor shall make or permit to be made an assignment, pledge or hypothecation of the
Article 9 Collateral or shall grant any other Lien in respect of the Article 9 Collateral or permit
any notice to be filed under the Assignment of Claims Act, except, in each case, as expressly
permitted by Section 6.02 of the Credit Agreement. No Grantor shall make or permit to be
made any transfer of the Article 9 Collateral and each Grantor shall remain at all times in
possession or otherwise in control of the Article 9 Collateral owned by it, except as permitted by
the Credit Agreement.

 

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(j) No Grantor will, without the Collateral Agent’s prior written consent, grant any extension
of the time of payment of any Accounts included in the Article 9 Collateral, compromise, compound
or settle the same for less than the full amount thereof, release, wholly or partly, any Person
liable for the payment thereof or allow any credit or discount whatsoever thereon, other than
extensions, compromises, compoundings, settlements, releases, credits or discounts granted or made
in the ordinary course of business and consistent with its current practices and in accordance with
such prudent and standard practice used in industries that are the same as or similar to those in
which such Grantor is engaged.

(k) Each Grantor, at its own expense, shall maintain or cause to be maintained insurance
covering physical loss or damage to the Inventory and Equipment in accordance with the requirements
set forth in Section 5.02 of the Credit Agreement. Each Grantor irrevocably makes,
constitutes and appoints the Collateral Agent (and all officers, employees or agents designated by
the Collateral Agent) as such Grantor’s true and lawful agent (and attorney in fact) for the
purpose, upon the occurrence and during the continuance of an Event of Default, of making, settling
and adjusting claims in respect of Article 9 Collateral under policies of insurance, endorsing the
name of such Grantor on any check, draft, instrument or other item of payment for the proceeds of
such policies of insurance and for making all determinations and decisions with respect thereto.
In the event that any Grantor at any time or times shall fail to obtain or maintain any of the
policies of insurance required hereby or under the Credit Agreement or to pay any premium in whole
or part relating thereto, the Collateral Agent may, without waiving or releasing any obligation or
liability of any Grantor hereunder or any Default or Event of Default, in its sole discretion,
obtain and maintain such policies of insurance and pay such premium and take any other actions with
respect thereto as the Collateral Agent deems advisable. All sums disbursed by the Collateral Agent
in connection with this paragraph, including attorneys’ fees, court costs, expenses and other
charges relating thereto, shall be payable, upon demand, by the Grantors to the Collateral Agent
and shall be additional Obligations secured hereby.

SECTION 4.04. Other Actions. In order to further insure the attachment, perfection and
priority of, and the ability of the Collateral Agent to enforce, the Security Interest in the
Article 9 Collateral, each Grantor agrees, in each case at such Grantor’s own expense, to take the
following actions with respect to the following Article 9 Collateral:

(a) Instruments. If any Grantor shall at any time hold or acquire any Instruments, such
Grantor shall forthwith endorse, assign and deliver the same to the Collateral Agent, accompanied
by such undated instruments of endorsement, transfer or assignment duly executed in blank as the
Collateral Agent may from time to time specify.

(b) Deposit Accounts. For each Deposit Account that any Grantor at any time opens or
maintains, such Grantor shall either (i) cause the depositary bank to agree to comply at any time
with instructions from the Collateral Agent to such depositary bank directing the disposition of
funds from time to time credited to such Deposit Account, without further consent of such Grantor
or any other Person, pursuant to an agreement in form and substance reasonably satisfactory to the
Collateral Agent or (ii) arrange for the Collateral Agent to become the customer of the depositary
bank with respect to the Deposit Account, with the Grantor being permitted, only with the consent
of the Collateral Agent, to exercise rights to withdraw funds from such Deposit Account. The
Collateral Agent agrees with each Grantor that the Collateral Agent shall not give any such
instructions or withhold any withdrawal rights from any Grantor, unless an Event of Default has
occurred and is continuing, or, after giving effect to any withdrawal, would occur. The provisions
of this Section 4.04(b) shall not apply to any Deposit Account for which any Grantor, the
depositary bank and the Collateral Agent have entered into a cash collateral agreement specially
negotiated among such Grantor, the depositary bank and the Collateral Agent for the specific
purpose set forth therein.

 

17

 

(c) Investment Property. Except to the extent otherwise provided in Article III, if any
Grantor shall at any time hold or acquire any certificated securities, such Grantor shall forthwith
endorse, assign and deliver the same to the Collateral Agent, accompanied by such undated
instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time
to time specify. If any securities now or hereafter acquired by any Grantor are uncertificated and
are issued to such Grantor or its nominee directly by the issuer thereof, such Grantor shall
promptly notify the Collateral Agent thereof and, at the Collateral Agent’s request and option,
pursuant to an agreement in form and substance satisfactory to the Collateral Agent, either (i)
cause the issuer to agree to comply with instructions from the Collateral Agent as to such
securities, without further consent of any Grantor or such nominee or (ii) arrange for the
Collateral Agent to become the registered owner of the securities. If any securities, whether
certificated or uncertificated, or other Investment Property now or hereafter acquired by any
Grantor are held by such Grantor or its nominee through a Securities Intermediary or Commodity
Intermediary, such Grantor shall promptly notify the Collateral Agent thereof and, at the
Collateral Agent’s request and option, pursuant to an agreement in form and substance satisfactory
to the Collateral Agent, either (i) cause such Securities Intermediary or Commodity Intermediary,
as the case may be, to agree to comply with Entitlement Orders from the Collateral Agent to such
Securities Intermediary as to such securities or other Investment Property, or (as the case may be)
to apply any value distributed on account of any commodity contract as directed by the Collateral
Agent to such Commodity Intermediary, in each case without further consent of any Grantor or such
nominee or (ii) in the case of Financial Assets (as governed by Article 8 of the New York UCC) or
other Investment Property held through a Securities Intermediary, arrange for the Collateral Agent
to become the Entitlement Holder with respect to such Investment Property, with the Grantor being
permitted, only with the consent of the Collateral Agent, to exercise rights to withdraw or
otherwise deal with such Investment Property. The Collateral Agent agrees with each Grantor that
the Collateral Agent shall not give any such Entitlement Orders or instructions or directions to
any such issuer, Securities Intermediary or Commodity Intermediary, and shall not withhold its
consent to the exercise of any withdrawal or dealing rights by any Grantor, unless an Event of
Default has occurred and is continuing, or, after giving effect to any such investment and
withdrawal rights, would occur.

(d) Electronic Chattel Paper and Transferable Records. If any Grantor at any time holds or
acquires an interest in any Electronic Chattel Paper or any “transferable record” with a principal
amount in excess $250,000, as that term is defined in Section 201 of the Federal Electronic
Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic
Transactions Act as in effect in any relevant jurisdiction, such Grantor shall promptly notify the
Collateral Agent thereof and, at the request of the Collateral Agent, shall take such action as the
Collateral Agent may request to vest in the Collateral Agent control under New York UCC Section
9-105 of such Electronic Chattel Paper or control under Section 201 of the Federal Electronic
Signatures in Global and National Commerce Act or, as the case may be, Section 16 of the Uniform
Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record.
The Collateral Agent agrees with such Grantor that the Collateral Agent will arrange, pursuant to
procedures satisfactory to the Collateral Agent and so long as such procedures will not result in
the Collateral Agent’s loss of control, for the Grantor to make alterations to the Electronic
Chattel Paper or transferable record permitted under UCC Section 9-105 or, as the case may be,
Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16
of the Uniform Electronic Transactions Act for a party in control to allow without loss of control,
unless an Event of Default has occurred and is continuing or would occur after taking into account
any action by such Grantor with respect to such Electronic Chattel Paper or transferable record.

 

18

 

(e) Letter-of-Credit Rights. If any Grantor is at any time a beneficiary under a letter of
credit with a face value in excess of $500,000 now or hereafter issued in favor of such Grantor,
such Grantor shall promptly notify the Collateral Agent thereof and, at the request and option of
the Collateral Agent, such Grantor shall, pursuant to an agreement in form and substance
satisfactory to the Collateral Agent, either (i) arrange for the issuer and any confirmer of such
letter of credit to consent to an assignment to the Collateral Agent of the proceeds of any drawing
under the letter of credit or (ii) arrange for the Collateral Agent to become the transferee beneficiary of the letter of credit, with
the Collateral Agent agreeing, in each case, that the proceeds of any drawing under the letter of
credit are to be paid to the applicable Grantor unless an Event of Default has occurred or is
continuing, in which case they will be applied to the repayment of the Loans, pro rata against the
remaining scheduled installments of principal due in respect of the Loans under Section
2.08(a) of the Credit Agreement. Notwithstanding the foregoing, if any Grantor is at any time
a beneficiary under a letter of credit that is a “supporting obligation” (as such term is defined
in the New York UCC), regardless of the face value of such letter of credit, such Grantor shall not
be required to comply with clause (i) or clause (ii) of the immediately preceding sentence, so long
as (A) the Collateral Agent has a perfected security interest therein with the priority required
hereunder as a result of the filing of a financing statement, and (B) the proceeds of any drawing
under the letter of credit are applied in accordance with the immediately preceding sentence.

(f) Commercial Tort Claims. If any Grantor shall at any time hold or acquire a Commercial Tort
Claim in an amount reasonably estimated to exceed $750,000, such Grantor shall promptly notify the
Collateral Agent thereof in a writing signed by such Grantor including a summary description of
such claim and grant to the Collateral Agent, for the ratable benefit of the Secured Parties, in
such writing a security interest therein and in the proceeds thereof, all upon the terms of this
Agreement, with such writing to be in form and substance satisfactory to the Collateral Agent.

SECTION 4.05. Covenants Regarding Patent, Trademark and Copyright Collateral. (a) Each
Grantor agrees that it will not, and will not permit any of its licensees to, do any act, or omit
to do any act, whereby any Patent that is material to the conduct of any Grantor’s business may
become invalidated or dedicated to the public, and agrees that it shall continue to mark any
products covered by a Patent with the relevant patent number as necessary and sufficient to
establish and preserve its maximum rights under applicable patent laws.

(b) Each Grantor (either itself or through its licensees or its sublicensees) will, for each
Trademark material to the conduct of any Grantor’s business, (i) maintain such Trademark in full
force free from any claim of abandonment or invalidity for non-use, (ii) maintain the quality of
products and services offered under such Trademark, (iii) display such Trademark with notice of
Federal or foreign registration to the extent necessary and sufficient to establish and preserve
its maximum rights under applicable law and (iv) not knowingly use or knowingly permit the use of
such Trademark in violation of any third party rights.

(c) Each Grantor (either itself or through its licensees or sublicensees) will, for each work
covered by a Copyright material to the conduct of any Grantor’s business, continue to publish,
reproduce, display, adopt and distribute the work with appropriate copyright notice as necessary
and sufficient to establish and preserve its maximum rights under applicable copyright laws.

(d) Each Grantor shall notify the Collateral Agent promptly if it knows or has reason to know
that any Patent, Trademark or Copyright material to the conduct of its business may become
abandoned, lost or dedicated to the public, or of any material and adverse determination or
development (including the institution of, or any such determination or development in, any
proceeding in the United States Patent and Trademark Office, United States Copyright Office or any
court or similar office of any country) regarding such Grantor’s ownership of any Patent, Trademark
or Copyright, its right to register the same, or its right to keep and maintain the same.

 

19

 

(e) In no event shall any Grantor, either itself or through any agent, employee, licensee or
designee, file an application for any Patent, Trademark or Copyright (or for the registration of
any Trademark or Copyright) with the United States Patent and Trademark Office, United States
Copyright Office or any office or agency in any political subdivision of the United States or
in any other country or any political subdivision thereof, unless it promptly notifies the
Collateral Agent, and, upon request of the Collateral Agent, executes and delivers any and all
agreements, instruments, documents and papers as the Collateral Agent may request to evidence the
Security Interest in such Patent, Trademark or Copyright, and each Grantor hereby appoints the
Collateral Agent as its attorney-in-fact to execute and file such writings for the foregoing
purposes, all acts of such attorney being hereby ratified and confirmed; such power, being coupled
with an interest, is irrevocable.

(f) Each Grantor will take all necessary steps that are consistent with the practice in any
proceeding before the United States Patent and Trademark Office, United States Copyright Office or
any office or agency in any political subdivision of the United States or in any other country or
any political subdivision thereof, to maintain and pursue each material application relating to the
Patents, Trademarks and/or Copyrights (and to obtain the relevant grant or registration) and to
maintain each issued Patent and each registration of the Trademarks and Copyrights that is material
to the conduct of any Grantor’s business, including timely filings of applications for renewal,
affidavits of use, affidavits of incontestability and payment of maintenance fees, and, if
consistent with good business judgment, to initiate opposition, interference and cancelation
proceedings against third parties.

(g) If any Grantor knows or has reason to believe that any Article 9 Collateral consisting of
a Patent, Trademark or Copyright material to the conduct of any Grantor’s business has been or is
about to be infringed, misappropriated or diluted by a third Person, such Grantor promptly shall
notify the Collateral Agent and shall, if consistent with good business judgment, promptly sue for
infringement, misappropriation or dilution and to recover any and all damages for such
infringement, misappropriation or dilution, and take such other actions as are appropriate under
the circumstances to protect such Article 9 Collateral.

(h) Upon the occurrence and during the continuance of an Event of Default, each Grantor shall
use reasonable efforts to obtain all requisite consents or approvals by the licensor of each
Copyright License, Patent License, Trademark License and each other material License to effect the
assignment of all such Grantor’s right, title and interest thereunder to the Collateral Agent, for
the ratable benefit of the Secured Parties, or its designee.

(i) In connection with any “intent to use” applications for trademarks or service marks, each
applicable Grantor shall file a bona fide amendment to allege use and shall take such other actions
or steps as shall be required by the United States Patent and Trademark Office (or any successor
office), to entitle such application to registration within 10 Business Days following the date of
first use in commerce of the mark that is the subject of such application. Upon acceptance of
such bona fide amendment to allege use by the United States Patent and Trademark Office, such
application shall automatically become subject to the Security Interest. Each Grantor shall
execute any further documents and instruments as the Collateral Agent may deem necessary or
appropriate to confirm, implement, or enforce the Collateral Agent’s security interest in any such
applications. If any Grantor fails to execute such further documents and instruments within five
days of presentment, the Collateral Agent may, in the name of, and on behalf of, such Grantor,
execute such documents and instruments and make appropriate disposition of same, and each Grantor
hereby irrevocably appoints the Collateral Agent as its lawful attorney-in-fact with full power to
do so. The foregoing power of attorney is coupled with an interest and such appointment shall be
irrevocable for the term hereof.

 

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ARTICLE V

Remedies

SECTION 5.01. Remedies Upon Default. Upon the occurrence and during the continuance of an
Event of Default, each Grantor agrees to deliver each item of Collateral to the Collateral Agent on
demand, and it is agreed that the Collateral Agent shall have the right to take any of or all the
following actions at the same or different times to the extent permitted by applicable law: (a)
with respect to any Article 9 Collateral consisting of Intellectual Property, on demand, to cause
the Security Interest to become an assignment, transfer and conveyance of any of or all such
Article 9 Collateral by the applicable Grantor to the Collateral Agent, or to license or
sublicense, whether general, special or otherwise, and whether on an exclusive or nonexclusive
basis, any such Article 9 Collateral throughout the world on such terms and conditions and in such
manner as the Collateral Agent shall determine (other than in violation of any then-existing
licensing arrangements to the extent that waivers cannot be obtained) and (b) with or without legal
process and with or without prior notice or demand for performance, to take possession of the
Article 9 Collateral and without liability for trespass to enter any premises where the Article 9
Collateral may be located for the purpose of taking possession of or removing the Article 9
Collateral and, generally, to exercise any and all rights afforded to a secured party under the
Uniform Commercial Code or other applicable law. Without limiting the generality of the foregoing,
each Grantor agrees that the Collateral Agent shall have the right to sell or otherwise dispose of
all or any part of the Collateral at a public or private sale or at any broker’s board or on any
securities exchange, for cash, upon credit or for future delivery as the Collateral Agent shall
deem appropriate. The Collateral Agent shall be authorized at any such sale (if it deems it
advisable to do so) to restrict the prospective bidders or purchasers to persons who will represent
and agree that they are purchasing the Collateral for their own account for investment and not with
a view to the distribution or sale thereof, and upon consummation of any such sale the Collateral
Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof
the Collateral so sold. Each such purchaser at any such sale shall hold the property sold
absolutely, free from any claim or right on the part of any Grantor, and each Grantor hereby waives
(to the extent permitted by law) all rights of redemption, stay and appraisal which such Grantor
now has or may at any time in the future have under any rule of law or statute now existing or
hereafter enacted.

The Collateral Agent shall give each applicable Grantor 10 days’ written notice (which each
Grantor agrees is reasonable notice within the meaning of Section 9-611 of the New York UCC or its
equivalent in other jurisdictions) of the Collateral Agent’s intention to make any sale of
Collateral. Such notice, in the case of a public sale, shall state the time and place for such
sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the
board or exchange at which such sale is to be made and the day on which the Collateral, or portion
thereof, will first be offered for sale at such board or exchange. Any such public sale shall be
held at such time or times within ordinary business hours and at such place or places as the
Collateral Agent may fix and state in the notice of such sale. At any such sale, the Collateral,
or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the
Collateral Agent may (in its sole and absolute discretion) determine. The Collateral Agent shall
not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless
of the fact that notice of sale of such Collateral shall have been given. 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 sale, and such sale
may, without further notice, be made at the time and place to which the same was so adjourned. In
case any sale of all or any part of the Collateral is made on credit or for future delivery, the
Collateral so sold may be retained by the Collateral Agent until the sale price is paid by the
purchaser or purchasers thereof, but the Collateral Agent shall not incur any liability in case any
such purchaser or purchasers shall fail

 

21

 

 to take up and pay for the Collateral so sold and, in case
of any such failure, such Collateral may be sold again upon like notice. At any public (or private) sale made pursuant to this Agreement, any Secured
Party may bid for or purchase, free from any right of redemption, stay, valuation or appraisal on
the part of any Grantor (all said rights being also hereby waived and released), the Collateral or
any part thereof offered for sale and may make payment on account thereof by using any claim then
due and payable to such Secured Party from any Grantor as a credit against the purchase price, and
such Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such
property without further accountability to any Grantor therefor. For purposes hereof, a written
agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof, the
Collateral Agent shall be free to carry out such sale pursuant to such agreement, and no Grantor
shall be entitled to the return of the Collateral or any portion thereof subject thereto,
notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement
all Events of Default shall have been remedied and the Obligations paid in full. As an alternative
to exercising the power of sale herein conferred upon it, the Collateral Agent may proceed by a
suit or suits at law or in equity to foreclose under this Agreement and to sell the Collateral or
any portion thereof pursuant to a judgment or decree of a court or courts having competent
jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale pursuant to the
provisions of this Section 5.01 shall be deemed to conform to the commercially reasonable
standards as provided in Section 9-610(b) of the New York UCC or its equivalent in other
jurisdictions.

SECTION 5.02. Application of Proceeds. The Collateral Agent shall apply the proceeds of any
collection, sale, foreclosure or other realization upon any Collateral, including any Collateral
consisting of cash, as follows:

FIRST, to the payment of all costs and expenses incurred by the Collateral Agent (in
its capacity as administrative agent or collateral agent under the Loan Documents) in
connection with such collection, sale, foreclosure or realization or otherwise in connection
with this Agreement, any other Loan Document or any of the Obligations, including all court
costs and the fees and expenses of its agents and legal counsel, the repayment of all
advances made by the Collateral Agent or the Administrative Agent hereunder or under any
other Loan Document on behalf of any Grantor and any other costs or expenses incurred in
connection with the exercise of any right or remedy hereunder or under any other Loan
Document;

SECOND, to the payment in full of all other Obligations (the amounts so applied to be
distributed among the Secured Parties pro rata in accordance with the amounts of the
Obligations owed to them on the date of any such distribution);

THIRD, to the Grantors, their successors or assigns, or as a court of competent
jurisdiction may otherwise direct.

The Collateral Agent shall have absolute discretion as to the time of application of any such
proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the
Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial
proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or
purchasers shall not be obligated to see to the application of any part of the purchase money paid
over to the Collateral Agent or such officer or be answerable in any way for the misapplication
thereof.

 

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SECTION 5.03. Grant of License to Use Intellectual Property. For the purpose of enabling the
Collateral Agent to exercise rights and remedies under this Agreement at such time as the
Collateral Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor
hereby grants to the Collateral Agent an irrevocable, nonexclusive license (exercisable without
payment of royalty or other compensation to the Grantors), to use, license or sublicense any of the
Article 9 Collateral
consisting of Intellectual Property now owned or hereafter acquired by such Grantor, and
wherever the same may be located, and 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 software and programs
used for the compilation or printout thereof. The use of such license by the Collateral Agent may
be exercised, at the option of the Collateral Agent, only upon the occurrence and during the
continuation of an Event of Default; provided, however, that any license, sublicense or other
transaction entered into by the Collateral Agent in accordance herewith shall be binding upon each
Grantor notwithstanding any subsequent cure or waiver of an Event of Default.

SECTION 5.04. Securities Act, Etc. In view of the position of the Grantors in relation to the
Pledged Collateral, or because of other current or future circumstances, a question may arise under
the U.S. 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
Pledged Collateral permitted hereunder. Each Grantor 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 Pledged Collateral, and might
also limit the extent to which or the manner in which any subsequent transferee of any Pledged
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 Pledged
Collateral under applicable “blue sky” or other state or foreign securities laws or similar laws
analogous in purpose or effect. Each Grantor recognizes that in light of such restrictions and
limitations the Collateral Agent may, with respect to any sale of the Pledged Collateral, limit the
purchasers to those who will agree, among other things, to acquire such Pledged Collateral for
their own account, for investment, and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that in light of such restrictions and limitations, the Collateral
Agent, in its sole and absolute discretion (a) may proceed to make such a sale whether or not a
registration statement for the purpose of registering such Pledged Collateral or part thereof shall
have been filed under the Federal Securities Laws and (b) may approach and negotiate with a limited
number of potential purchasers (including a single potential purchaser) to effect such sale. Each
Grantor 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, the Collateral Agent shall incur no responsibility or liability for selling
all or any part of the Pledged Collateral at a price that the Collateral Agent, in its sole and
absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the
possibility that a substantially higher price might have been realized if the sale were deferred
until after registration as aforesaid or if more than a limited number of purchasers (or a single
purchaser) were approached. The provisions of this Section 5.04 will apply notwithstanding
the existence of a public or private market upon which the quotations or sales prices may exceed
substantially the price at which the Collateral Agent sells.

ARTICLE VI

Indemnity, Subrogation and Subordination

SECTION 6.01. Indemnity and Subrogation. In addition to all such rights of indemnity and
subrogation as the Guarantors may have under applicable law (but subject to Section 6.03),
the Borrower agrees that (a) in the event a payment shall be made by any Guarantor (other than
Parent Holdings) under this Agreement, the Borrower shall indemnify such Guarantor for the full
amount of such payment and such Guarantor shall be subrogated to the rights of the Person to whom
such payment shall have been made to the extent of such payment and (b) in the event any assets of
any Guarantor (other than Parent Holdings) shall be sold pursuant to this Agreement or any other
Security Document to satisfy in whole or in part a claim of any Secured Party, the Borrower shall indemnify such Guarantor in
an amount equal to the greater of the book value or the fair market value of the assets so sold.

 

23

 

SECTION 6.02. Contribution and Subrogation. Each Guarantor (other than Parent Holdings) (a
“Contributing Party”) agrees (subject to Section 6.03) that, in the event a payment shall
be made by any other Guarantor (other than Parent Holdings) hereunder in respect of any Obligation
or assets of any other Guarantor (other than Parent Holdings) shall be sold pursuant to any
Security Document to satisfy any Obligation owed to any Secured Party, and such other Guarantor
(the “Claiming Party”) shall not have been fully indemnified by the Borrower as provided in
Section 6.01, such Contributing Party shall indemnify the Claiming Party in an amount equal
to (i) the amount of such payment or (ii) the greater of the book value or the fair market value of
such assets, as the case may be, in each case multiplied by a fraction of which the numerator shall
be the net worth of such Contributing Party on the date hereof and the denominator shall be the
aggregate net worth of all the Guarantors (other than Parent Holdings) on the date hereof (or, in
the case of any Guarantor becoming a party hereto pursuant to Section 7.16, the date of the
supplement hereto executed and delivered by such Guarantor). Any Contributing Party making any
payment to a Claiming Party pursuant to this Section 6.02 shall be subrogated to the rights
of such Claiming Party under Section 6.01 to the extent of such payment.

SECTION 6.03. Subordination. (a) Notwithstanding any provision of this Agreement to the
contrary, all rights of the Guarantors under Sections 6.01 and 6.02 and all other
rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully
subordinated to the indefeasible payment in full in cash of the Obligations (other than contingent
indemnity claims in respect of which no claim for payment has been asserted by the Person entitled
thereto). No failure on the part of the Borrower or any Guarantor to make the payments required by
Sections 6.01 and 6.02 (or any other payments required under applicable law or
otherwise) shall in any respect limit the obligations and liabilities of any Guarantor with respect
to its obligations hereunder, and each Guarantor shall remain liable for the full amount of its
obligations hereunder.

(b) The Borrower and each Guarantor hereby agree that all Indebtedness and other monetary
obligations owed by it to any other Guarantor or the Borrower shall be fully subordinated to the
indefeasible payment in full in cash of the Obligations (other than contingent indemnity claims in
respect of which no claim for payment has been asserted by the Person entitled thereto).

ARTICLE VII

Miscellaneous

SECTION 7.01. Notices. All communications and notices hereunder (a) to any party other than
the Subsidiary Guarantors, shall (except as otherwise expressly permitted herein) be in writing and
given as provided in Section 9.01 of the Credit Agreement or (b) to any Subsidiary
Guarantor, shall (except as otherwise expressly permitted herein) be in writing and given to it in
care of the Borrower as provided in Section 9.01 of the Credit Agreement.

SECTION 7.02. Security Interest Absolute. All rights of the Agent hereunder, the Security
Interest, the grant of a security interest in the Pledged Collateral and all obligations of each
Grantor hereto hereunder shall be absolute and unconditional irrespective of (a) any lack of
validity or enforceability of the Credit Agreement, any other Loan Document, any agreement with
respect to any of the Obligations or any other agreement or instrument relating to any of the
foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Obligations, or any other amendment or waiver of or any consent to any departure from
the Credit Agreement, any other
Loan Document or any other agreement or instrument relating to the foregoing, (c) any
exchange, release or non-perfection of any Lien on other collateral, or any release or amendment or
waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of
the Obligations or (d) any other circumstance that might otherwise constitute a defense available
to, or a discharge of, any Grantor in respect of the Obligations or this Agreement.

 

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SECTION 7.03. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Loan Parties in the Loan Documents and in the certificates or other
instruments prepared or delivered in connection with or pursuant to this Agreement or any other
Loan Document shall be considered to have been relied upon by the Lenders and shall survive the
execution and delivery of the Loan Documents and the making of any Loans, regardless of any
investigation made by any Lender or on its behalf and notwithstanding that the Agent or any Lender
may have had notice or knowledge of any Default or incorrect representation or warranty at the time
any credit is extended under the Credit Agreement, and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any fee or any other amount payable
under any Loan Document is outstanding and unpaid.

SECTION 7.04. Binding Effect; Several Agreement. This Agreement shall become effective as to
any Loan Party when a counterpart hereof executed on behalf of such Loan Party shall have been
delivered to the Collateral Agent and a counterpart hereof shall have been executed on behalf of
the Collateral Agent, and thereafter shall be binding upon such Loan Party and the Collateral Agent
and their permitted successors and assigns, and shall inure to the benefit of such Loan Party, the
Collateral Agent and the other Secured Parties and their successors and assigns, except that no
Loan Party shall have the right to assign or transfer its rights or obligations hereunder or any
interest herein or in the Collateral (and any such assignment or transfer shall be void). This
Agreement shall be construed as a separate agreement with respect to each Loan Party and may be
amended, modified, supplemented, waived or released with respect to any Loan Party without the
approval of any other Loan Party and without affecting the obligations of any other Loan Party
hereunder.

SECTION 7.05. Successors and Assigns. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the permitted successors and assigns of such
party; and all covenants, promises and agreements by or on behalf of any Grantor or the Collateral
Agent that are contained in this Agreement shall bind and inure to the benefit of their successors
and assigns.

SECTION 7.06. Agent’s Fees and Expenses; Indemnification. (a) Each Grantor shall, jointly
and severally, pay all out-of-pocket expenses incurred by the Agent and its Affiliates, including
the fees, charges and disbursements of counsel, in connection with (i) the administration of the
Loan Documents and any amendments, modifications or waivers of the provisions thereto, (ii) the
custody, inspection, supervision and preservation of, the sale of, the collection from, or any
other realization upon, the Collateral, (iii) the enforcement or protection of the Agent’s rights
under the Loan Documents, including its rights under this Section 7.06 and during any
workout, restructuring or negotiations in respect of the Loans and (iv) the failure of any Grantor
to perform or observe any of the provisions thereof.

 

25

 

(b) Without limitation of its indemnification obligations under the other Loan Documents, each
Grantor agrees to, jointly and severally, indemnify the Agent and the other Indemnitees against,
and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related costs and expenses, including reasonable counsel fees, charges and disbursements, incurred
by or asserted against any Indemnitee arising out of, in any way connected with, or as a result of
(i) the execution or delivery of this Agreement or any other Loan Document or any agreement or
instrument contemplated thereby, the performance by the parties thereto of their respective obligations
thereunder or the consummation of the Transactions and the other transactions contemplated thereby
(including the syndication of the Credit Facility), (ii) the use of the proceeds of the Loans,
(iii) any claim, litigation, investigation or proceeding relating to any of the foregoing or to the
Collateral, whether or not any Indemnitee is a party thereto (and regardless of whether such matter
is initiated by a third party, a Loan Party or any of Affiliate thereof) or (iv) any actual or
alleged presence or Release of Hazardous Materials on any property currently or formerly owned or
operated by Parent Holdings, the Borrower or any of the Subsidiaries, or any Environmental
Liability related in any way to Parent Holdings, the Borrower or the Subsidiaries; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted primarily from the gross
negligence, bad faith or willful misconduct of such Indemnitee. To the extent permitted by
applicable law, no Grantor shall assert, and each Grantor hereby waives any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement, the other Loan Documents, any agreement or instrument contemplated hereby, the
Transactions, any Loan or the use of proceeds thereof.

(c) Any such amounts payable as provided hereunder shall be additional Obligations secured
hereby and by the other Security Documents. The provisions of this Section 7.06 shall
remain operative and in full force and effect regardless of the termination of this Agreement or
any other Loan Document, the consummation of the transactions contemplated hereby, the repayment of
any of the Obligations, the invalidity or unenforceability of any term or provision of this
Agreement or any other Loan Document, or any investigation made by or on behalf of the Collateral
Agent or any other Secured Party. All amounts due under this Section 7.06 shall be payable
on written demand therefor and shall bear interest, on and from the date of demand, at the rate
specified in Section 2.06 of the Credit Agreement.

SECTION 7.07. Agent Appointed Attorney-in-Fact. Each Grantor hereby appoints the Collateral
Agent as the attorney-in-fact of such Grantor for the purpose of carrying out the provisions of
this Agreement and taking any action and executing any instrument that the Collateral Agent may
deem necessary or advisable to accomplish the purposes hereof, which appointment is irrevocable and
coupled with an interest. Without limiting the generality of the foregoing, the Collateral Agent
shall have the right, upon the occurrence and during the continuance of an Event of Default, with
full power of substitution either in the Collateral Agent’s name or in the name of such Grantor (a)
to receive, endorse, assign and/or deliver any and all notes, acceptances, checks, drafts, money
orders or other evidences of payment relating to the Collateral or any part thereof, (b) to demand,
collect, receive payment of, give receipt for and give discharges and releases of all or any of the
Collateral, (c) to sign the name of any such Grantor on any invoice or bill of lading relating to
any of the Collateral, (d) to send verifications of Accounts Receivable to any Account Debtor, (e)
to commence and prosecute any and all suits, actions or proceedings at law or in equity in any
court of competent jurisdiction to collect or otherwise realize on all or any of the Collateral or
to enforce any rights in respect of any Collateral, (f) to settle, compromise, compound, adjust or
defend any actions, suits or proceedings relating to all or any of the Collateral, (g) to notify,
or to require any Grantor to notify, Account Debtors to make payment directly to the Collateral
Agent, and (h) to use, sell, assign, transfer, pledge, make any agreement with respect to or
otherwise deal with all or any of the Collateral, and to do all other acts and things necessary to
carry out the purposes of this Agreement in accordance with its terms, as fully and completely as
though the Collateral Agent were the absolute owner of the Collateral for all purposes; provided,
however, that nothing herein contained shall be construed as requiring or obligating the Collateral
Agent to make any commitment or to make any inquiry as to the nature or sufficiency of any payment
received by the Collateral Agent, or to present or file any claim or notice, or to take any action
with respect to the Collateral or any part thereof or the moneys due or to become due in respect
thereof or any property covered thereby. The Collateral Agent and the other Secured Parties shall be accountable only
for amounts actually received as a result of the exercise of the powers granted to them herein, and
neither they nor their officers, directors, employees or agents shall be responsible to any Grantor
for any act or failure to act hereunder, except to the extent that any losses, claims, damages,
liabilities or related expenses are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted primarily from the gross negligence, bad faith or willful
misconduct of the Collateral Agent, such other Secured Parties or such officers, directors,
employees or agents, as the case may be.

 

26

 

SECTION 7.08. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

SECTION 7.09. Waivers; Amendment. (a) No failure or delay by the Collateral Agent or any
other Secured Party in exercising any right or power hereunder or under any other Loan Document
shall operate as a waiver hereof or thereof, nor shall any single or partial exercise of any such
right or power, or any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Collateral Agent and the other Secured Parties hereunder and under the
other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provision of any Loan Document or consent to any departure by any
Loan Party therefrom shall in any event be effective unless the same shall be permitted by
Section 7.09(b), and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. Without limiting the generality of the foregoing,
the making of a Loan shall not be construed as a waiver of any Default, regardless of whether the
Collateral Agent or any other Secured Party may have had notice or knowledge of such Default at the
time. No notice or demand on any Loan Party in any case shall entitle any Loan Party to any other
or further notice or demand in similar or other circumstances.

(b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Collateral Agent and the Loan
Party or Loan Parties with respect to which such waiver, amendment or modification is to apply,
subject to any consent required in accordance with Section 9.08 of the Credit Agreement.

SECTION 7.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS,
AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
7.10.

SECTION 7.11. Severability. In the event any one or more of the provisions contained in this
Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein and
therein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect
the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

 

27

 

SECTION 7.12. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract, and shall become effective as
provided in Section 7.04. Delivery of an executed signature page to this Agreement by
facsimile transmission or other electronic imaging means shall be as effective as delivery of a
manually signed counterpart of this Agreement.

SECTION 7.13. Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

SECTION 7.14. Jurisdiction; Consent to Service of Process. (a) Each of the Grantors hereby
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any New York State court or Federal court of the United States of America, sitting
in New York City, and any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Agreement or any other Loan Document, or for recognition or enforcement of
any judgment, and each of the Loan Parties hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or in such Federal court. Each of the Loan Parties agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement or any other Loan
Document shall affect any right that the Collateral Agent or any other Secured Party may otherwise
have to bring any action or proceeding relating to this Agreement or any other Loan Document
against any Grantor or its properties in the courts of any jurisdiction.

(b) Each of the Loan Parties hereby irrevocably and unconditionally waives any objection which
it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out
of or relating to this Agreement or any other Loan Document in any court referred to in Section
7.14(a) (it being understood that such waiver shall not require any suit, action or proceeding
initiated in any court to be remanded or removed to any court referred to in Section
7.14(a)). Each of the Loan Parties hereby irrevocably waives the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

(c) Each of the Loan Parties hereby irrevocably consents to service of process in the manner
provided for notices in Section 7.01. Nothing in this Agreement or any other Loan Document
will affect the right of the Agent to serve process in any other manner permitted by law.

SECTION 7.15. Termination or Release. (a) This Agreement, the guarantees made herein, the
Security Interest and all other security interests granted hereby shall terminate, and the Loan
Parties shall automatically be released from their obligations hereunder, upon payment in full in
cash of all Obligations (other than contingent indemnification obligations in respect of which no
claim has been asserted by the Person entitled thereto).

(b) Upon any sale or other transfer by any Loan Party of any Collateral that is permitted
under the Credit Agreement to a Person other than any Loan Party or an Affiliate thereof, or upon
the effectiveness of any written consent to the release of the Security Interest granted hereby in
any Collateral pursuant to Section 9.08(b) of the Credit Agreement, the Security Interest
of such Loan Party in such Collateral shall be automatically released.

 

28

 

(c) Upon written request made to the Collateral Agent by the Borrower, the Collateral Agent
shall promptly prepare for filing by the Borrower, at the sole cost and expense of the Borrower,
any and all requested releases pursuant to clauses (a) or (b) of this Section 7.15. Any
execution and delivery of documents or instruments pursuant to this Section 7.15 shall be
without recourse to, or representation or warranty by, the Collateral Agent or any other Secured
Party. Without limiting the provisions of Section 7.06, the Borrower shall reimburse the
Collateral Agent promptly for all costs and out-of-pocket expenses, including the reasonable fees,
charges and expenses of counsel, incurred by it in connection with any action contemplated by this
Section 7.15.

SECTION 7.16. Additional Subsidiaries. Any Subsidiary that is required to become a party
hereto pursuant to Section 5.12 of the Credit Agreement shall enter into this Agreement as
a Guarantor and a Grantor upon becoming such a Subsidiary. Upon execution and delivery by the
Collateral Agent and such Subsidiary of a supplement in the form of Exhibit A hereto, such
Subsidiary shall become a Guarantor and a Grantor hereunder with the same force and effect as if
originally named as a Guarantor and a Grantor herein. The execution and delivery of any such
instrument shall not require the consent of any other Loan Party hereunder. The rights and
obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the
addition of any new Loan Party as a party to this Agreement.

SECTION 7.17. Right of Setoff. If an Event of Default shall have occurred and is continuing,
each Secured Party is hereby authorized at any time and from time to time, except to the extent
prohibited by Law, to set off and apply any and all Collateral (including any deposits (general or
special, time or demand, provisional or final)) at any time held and other obligations at any time
owing by such Secured Party to or for the credit or the account of any Grantor against any and all
of the obligations of such Grantor now or hereafter existing under this Agreement and the other
Loan Documents held by such Secured Party, irrespective of whether or not such Secured Party shall
have made any demand under this Agreement or any other Loan Document and although such obligations
may be contingent or unmatured or are owed to a branch or office of such Secured Party different
from the branch, office or Affiliate holding such deposit or obligated on such indebtedness;
provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x)
all amounts so set off shall be paid over immediately to the Administrative Agent for further
application in accordance with the provisions of Section 2.22 of the Credit Agreement and,
pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed
held in trust for the benefit of the Administrative Agent and the Secured Parties, and (y) the
Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in
reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such
right of setoff. The rights of each Secured Party under this Section 7.17 are in addition
to other rights and remedies (including other rights of setoff) which such Secured Party may have.

[remainder of page intentionally left blank]

 

29

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Guarantee and Collateral
Agreement as of the day and year first above written.

	 	 	 	 	 
	 	RENTECH ENERGY MIDWEST CORPORATION

 	 
	 	By:  	/s/ Dan J. Cohrs 
 	 
	 	 	Name:  	Dan J. Cohrs 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 
	 	RENTECH, INC.

 	 
	 	By:  	/s/ Dan J. Cohrs 
 	 
	 	 	Name:  	Dan J. Cohrs 	 
	 	 	Title:  	Executive Vice President & Chief Financial
Officer 	 
	 
	 	RENTECH SILVAGAS LLC

 	 
	 	By:  	/s/ Dan J. Cohrs 
 	 
	 	 	Name:  	Dan J. Cohrs 	 
	 	 	Title:  	Executive Vice President & Chief Financial
Officer 	 
	 
	 	RENTECH DEVELOPMENT CORPORATION

 	 
	 	By:  	/s/ Dan J. Cohrs 
 	 
	 	 	Name:  	Dan J. Cohrs 	 
	 	 	Title:  	Executive Vice President & Chief Financial
Officer 	 
	 
	 	REMC HOLDINGS, INC. (f/k/a RENTECH SERVICES CORPORATION)

 	 
	 	By:  	/s/ Dan J. Cohrs 
 	 
	 	 	Name:  	Dan J. Cohrs 	 
	 	 	Title:  	Executive Vice President & Chief Financial
Officer 	 
	 

 

 

 

	 	 	 	 	 
	 	SILVAGAS CORPORATION

 	 
	 	By:  	/s/ Dan J. Cohrs 
 	 
	 	 	Name:  	Dan J. Cohrs 	 
	 	 	Title:  	Executive Vice President & Chief Financial
Officer	 
	 
	 	RENTECH ENERGY TECHNOLOGY CENTER, LLC

 	 
	 	By:  	/s/ Dan J. Cohrs 
 	 
	 	 	Name:  	Dan J. Cohrs 	 
	 	 	Title:  	Executive Vice President & Chief Financial
Officer	 
	 
	 	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Collateral Agent

 	 
	 	By:  	/s/ Mikhail
Faybusovich
 	 
	 	 	Name:  	Mikhail
Faybusovich 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Vipul
Dhadda	 
	 	 	Name:  	Vipul
Dhadda 	 
	 	 	Title:  	AssociateExhibit 10.3

Exhibit 10.3

Prepared By, Recording

Requested By And When

Recorded Return To:

Proskauer Rose llp

2049 Century Park East

Suite 3200

Los Angeles, California 90067

Attention: Neil Cummings, Esq.

REAL ESTATE MORTGAGE, ASSIGNMENT OF RENTS,

SECURITY AGREEMENT AND UCC FIXTURE FILING

THIS INSTRUMENT is a Real Estate Mortgage, Assignment of Rents, Security Agreement and UCC
Fixture Filing (“Mortgage”) made and delivered by RENTECH ENERGY MIDWEST CORPORATION, a Delaware
corporation (“Mortgagor”), to CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Administrative Agent and
Collateral Agent (herein, together with its successors and assigns, called the “Mortgagee”).

WHEREAS, Mortgagor has concurrently herewith executed and delivered to Mortgagee a Credit
Agreement (as amended, modified, amended and restated, replaced, refinanced or otherwise
supplemented from time to time, the “Loan Agreement”) pursuant to which the Lenders named therein
have agreed to extend loans to Mortgagor in the aggregate principal amount of up to $150,000,000
(“Loans”) bearing interest and payable in the amounts and at the times set forth in the Loan
Agreement; and

WHEREAS, the Loans, the undertakings by Mortgagor in this instrument and the Loan Agreement,
any and all other sums (including, without limitation, any Incremental Loans (as defined in the
Loan Agreement) outstanding from time to time) which may at any time be due, owing or required to
be paid as herein or in the Loan Agreement provided, and any other Obligations (as defined in the
Guarantee and Collateral Agreement, dated on or around the date hereof (the “Guarantee and
Collateral Agreement”)), among Mortgagor, the affiliates of Mortgagor party thereto, and Mortgagee,
as such agreement may be amended, modified, amended and restated, replaced, refinanced or otherwise
supplemented from time to time) are herein called “Indebtedness Hereby Secured.”

NOW, THEREFORE:

TO SECURE the payment and performance of Indebtedness Hereby Secured and other good and
valuable considerations, the receipt and sufficiency of which is hereby acknowledged, Mortgagor
does hereby MORTGAGE, WARRANT, GRANT, BARGAIN, SELL, ASSIGN, TRANSFER, PLEDGE, GRANT A SECURITY
INTEREST IN, CONVEY and SET OVER to Mortgagee for the ratable benefit of the Secured Parties (as
defined in the Guarantee and Collateral Agreement) the real estate described in Exhibit A (“Real
Estate”) together with the property mentioned in the next succeeding paragraphs (collectively
“Premises”).

 

 

 

TOGETHER with and including within the term “Premises” as used herein any and all equipment,
personal property, improvements, buildings, structures, easements, fixtures, privileges, reservations, appurtenances, rights and estates in reversion or remainder, rights in or to
adjacent sidewalks, alleys, streets and vaults, and any and all rights and interests of every name
and nature now or hereafter owned by Mortgagor, forming a part of and/or used in connection with
the Real Estate and/or the operation and convenience of the buildings and improvements now or
hereafter located thereon.

AND TOGETHER with a security interest in (by way of enumeration but without limitation) all
personal property, furniture, furnishings and equipment used in connection with the existence and
operation of the Real Estate or furnished by Mortgagor to tenants thereof, all building materials
located at the Real Estate and intended to be incorporated in improvements now or hereafter to be
constructed thereon, whether or not incorporated therein, machines, machinery, fixtures, apparatus,
equipment and articles used to supply heating, gas, electricity, air conditioning, water, light,
power, sprinkler protection, waste removal, refrigeration and ventilation, and all floor coverings,
screens, storm windows, blinds, awnings; in each case now or hereafter placed in, on or at the Real
Estate and all additions and accessions and all proceeds of all of the foregoing. All of the
foregoing shall hereinafter be referred to as “Personal Property.” The enumeration of any specific
articles of Personal Property shall in no way exclude or be held to exclude any items of property
not specifically enumerated.

AND TOGETHER with all of the rents, income, receipts, revenues, issues and profits thereof and
therefrom; and all of the land, estate, property and rights hereinabove described and hereby
conveyed and intended so to be, whether real, personal or mixed, and whether or not affixed or
annexed to the Real Estate are intended to be as a unit and are hereby understood, agreed and
declared to form a part and parcel of the Premises and to be appropriated to the use of the
Premises and for the purposes hereof shall be deemed to be real estate mortgaged and warranted
hereby.

AND TOGETHER with all real estate tax refunds and all proceeds of the conversion, voluntary or
involuntary, of any of the Real Estate into cash or liquidated claims, including proceeds of
insurance maintained by Mortgagor and condemnation awards, any awards that may become due by reason
of the taking by eminent domain or any transfer in lieu thereof of the whole or any part of the
Premises or improvements or any rights appurtenant thereto, and any awards for change of grade of
streets, together with any and all moneys now or hereafter on deposit for the payment of real
estate taxes, assessments or common area charges levied against the Real Estate, unearned premiums
on policies of fire and other insurance maintained by Mortgagor covering any interest in the Real
Estate or required by the Indenture.

TO HAVE AND TO HOLD all and sundry of the Premises hereby mortgaged and warranted or intended
so to be, together with the rents, issues and profits thereof, unto Mortgagee forever, free from
all rights and benefits under and by virtue of the homestead exemption laws of the State of
Illinois (which rights and benefits are hereby expressly released and waived), for the uses and
purposes herein set forth, together with all right to retain possession of the Premises after any
default in the payment of all or any part of the Indebtedness Hereby Secured, or the breach of any
covenant or agreement herein contained, or upon the occurrence of any Event of Default as
hereinafter defined.

PROVIDED, that if all Indebtedness Hereby Secured shall be duly and punctually paid and all
terms, provisions, conditions and agreements herein contained on the part of Mortgagor to be
performed or observed shall be strictly performed and observed, then this Mortgage and the estate,
right and interest of Mortgagee in the Premises shall cease and be of no effect.

 

2

 

AND IT IS FURTHER AGREED THAT:

1. Payment of Indebtedness. Mortgagor will promptly pay the principal and interest on
the Loans in the amounts and at the times set forth in the Loan Agreement, and all other
Indebtedness Hereby Secured, as the same become due, and will duly perform and observe all of the
covenants, agreements and provisions herein and in the Loan Agreement required.

2. Maintenance, Repair, Restoration, Prior Liens, Parking, Etc. Mortgagor will (a)
subject to the requirements of Sections 5 through 7 below, as applicable, promptly construct,
repair, restore and rebuild any buildings or improvements now or hereafter on the Premises or
Personal Property used on or in connection with the Real Estate which may become damaged or be
destroyed whether or not proceeds of insurance are available or sufficient for the purpose; (b)
keep the Premises and Personal Property in good condition and repair, without waste, and free from
mechanics’, materialmen’s or like liens or claims or other liens or claims for lien; (c) pay, when
due, any indebtedness which may be secured by a lien or charge on the Premises or Personal Property
superior to the lien hereof, and upon request exhibit satisfactory evidence of the discharge of
such prior lien to Mortgagee; (d) subject to the requirements of Sections 5 through 7 below, as
applicable, complete, within a reasonable time, any building or buildings now or at any time in the
process of erection upon the Premises; (e) comply with all requirements of law, municipal
ordinances or restrictions and covenants of record with respect to the Premises and Personal
Property and the use thereof; (f) make no material alterations in the Premises, except as permitted
by the Loan Agreement or required by law or municipal ordinance without Mortgagee’s prior written
consent, which may be given or withheld in its reasonable discretion; (g) make or permit no change
in the general nature of the occupancy of the Premises without Mortgagee’s prior written consent,
which may be given or withheld in its reasonable discretion; provided that Mortgagee hereby
consents to (1) the execution and delivery by Mortgagor, as landlord, and Community Synergies LLC,
as tenant (“CS LLC”) of an operating lease (the “CS Lease”) of a portion of the Premises for the
use by CS LLC for, among other things, the purchase of carbon dioxide from Mortgagor and the use of
such carbon dioxide to grow algae in CS LLC’s proprietary algae photobioreactors to be located on
the leased portion of the Premises, and otherwise on terms not materially different from those set
forth in a schedule disclosed to the Mortgagee prior to the date hereof, and (2) to the extent
covering a lawfully leased parcel of real property under applicable law, the execution and delivery
by Mortgagor, as landlord, and a third-party farming tenant of an agricultural lease encumbering
approximately twenty (20) acres of the Property on the easternmost portion thereof (the
“Agricultural Lease”) for the use by such third-party tenant for agricultural purposes and
otherwise on terms not materially different from those set forth in a schedule disclosed to the
Mortgagee prior to the date hereof; (h) pay all operating costs of the Premises; (i) not initiate
nor acquiesce in any zoning reclassification with respect to the Premises without Mortgagee’s prior
written consent, which may be given or withheld in its reasonable discretion; provided that
Mortgagee hereby consents to Mortgagor seeking, and obtaining, a rezoning classification for the
Premises that would permit Mortgagor to conduct its operations on the Premises as of right rather
than as a permitted nonconforming use under applicable laws and (j) provide, improve, grade,
surface and thereafter maintain, clean and repair any sidewalks, aisles, streets, driveways and
sidewalk cuts and paved areas for parking and for ingress, egress and right-of-way to and from the
adjacent public thoroughfares necessary or desirable for the use thereof; and reserve and use all
such areas solely and exclusively for the purpose of providing parking, ingress and egress for
tenants or invitees of tenants of the Premises; and Mortgagor will not reduce, build upon,
obstruct, redesignate or relocate any such areas or rights-of-way or lease or grant any rights to
use the same to any person except tenants and invitees of tenants of the Premises without prior
written consent of Mortgagee. Concurrently with the execution and delivery of each of the CS
Lease and the Agricultural Lease, Mortgagor shall execute and deliver, and shall cause the tenant
under the CS Lease or the Agricultural Lease, as applicable, to execute and deliver, a
subordination, non-disturbance and attornment agreement with respect to the CS Lease or the
Agricultural Lease, as applicable, in form and substance acceptable to Mortgagee.

 

3

 

3. Taxes. Mortgagor will pay all general and special taxes, assessments, water
charges, sewer charges, and other fees, taxes, charges and assessments of every kind and nature
whatsoever (all herein generally called “Taxes”) assessed against or applicable to the Premises,
the Personal Property or any interest therein as required by the Loan Agreement.

4. Insurance Coverage. Mortgagor will keep insured all buildings and improvements on
the Premises and all Personal Property as required by the Loan Agreement.

5. Proceeds of Insurance. Mortgagor will promptly give Mortgagee notice of damage or
destruction to the Premises, and:

In case of loss to the Premises covered by a policy of insurance (“Insured Casualty”),
Mortgagee, or the purchaser at a foreclosure sale, without the consent of Mortgagor, may settle and
adjust any claim with the insurance company or companies on the amount to be paid upon the loss;
provided however, if (i) there are no existing Events of Default (as hereafter defined) and (ii)
the Insured Casualty is not a Material Casualty Event, Mortgagor may itself adjust losses subject
to the consent of Mortgagee. Subject to the Loan Agreement, Mortgagee is hereby authorized to
collect and receive any such insurance proceeds. Mortgagor shall turn over to Mortgagee any
insurance proceeds of (i) an Insured Casualty (other than a Material Casualty Event) which
proceeds, individually or in the aggregate, exceed $1,500,000, or (ii) a Material Casualty Event,
in each case substantially simultaneously with (and in any event not later than the third Business
Day next following) receipt thereof by Mortgagor.

Expenses incurred by Mortgagee in adjustment and collection of insurance proceeds shall be
additional Indebtedness Hereby Secured, and shall be reimbursed to Mortgagee upon demand.
Mortgagor hereby grants to Mortgagee for the ratable benefit of the Secured Parties a security
interest in all such insurance proceeds.

Mortgagee, in its sole discretion, may, subject to Section 6 and the provisions of the Loan
Agreement, (i) apply the proceeds of insurance consequent upon any Insured Casualty to the
Indebtedness Hereby Secured in such order or manner as Mortgagee may elect or (ii) unless the
Insured Casualty is the result of a Material Casualty Event, make the proceeds available to
Mortgagor for the restoration, repairing, replacing or rebuilding of the Premises.

In the event proceeds of insurance of an Insured Casualty shall be made available to
Mortgagor, pursuant to Section 6(a) or Section 6(b), for the restoring, repairing, replacing or
rebuilding of the Premises, Mortgagor covenants to restore, repair, replace or rebuild the same to
be of substantially the same character as prior to such damage or destruction; all to be effected
in accordance with plans and specifications to be first submitted to and approved by Mortgagee,
which approval may be given or withheld in its reasonable discretion. Mortgagor shall pay all
costs of such restoring, repairing, replacing or rebuilding in excess of the proceeds of insurance.

 

4

 

6. Disbursement of Insurance Proceeds.

(a) If Mortgagee receives the insurance proceeds of an Insured Casualty (other than a Material
Casualty Event), directly or as provided in Section 5 above, and such proceeds exceed $1,500,000
individually or in the aggregate such proceeds shall be (a) deposited and held in a blocked account
that is a deposit account subject to a Deposit Account Control Agreement, in which Mortgagee holds
a first priority security interest, subject, as to priority, only to non-consensual liens permitted
under Section 6.02 of the Credit Agreement arising, and entitled to priority, by operation of law
(a “Deposit Account”), and (b) disbursed from such Deposit Account at the written direction
of the Mortgagee from time to time, pursuant to a construction escrow established with a title
insurance company reasonably acceptable to Mortgagee, upon Mortgagee being furnished with (i)
satisfactory evidence of the cost and time of completion of restoration, repair, replacement and
rebuilding, (ii) funds sufficient, in addition to the proceeds of insurance, to complete the
proposed restoration, repair, replacement and rebuilding, and (iii) such architect’s certificates,
waivers of lien, contractor’s sworn statements and other evidences of cost and payment as Mortgagee
may reasonably require and approve; provided that Mortgagee shall have the right to retain, at
Mortgagor’s sole expense, a construction monitor (a “Construction Monitor”) reasonably satisfactory
to Mortgagee in connection with Section 5, this Section 6 or Section 7. No payment made prior to
the final completion of the restoration, repair, replacement or rebuilding shall exceed ninety
percent (90%) of the value of the labor and material for work performed from time to time. Funds
other than proceeds of insurance shall be disbursed prior to disbursement of insurance proceeds.
At all times the undisbursed balance of the insurance proceeds held by Mortgagee, together with
funds deposited or irrevocably committed to the satisfaction of Mortgagee by or on behalf of
Mortgagor for the purpose, shall be at least sufficient, in the reasonable judgment of Mortgagee,
to pay for the cost of completing the restoration, repair, replacement or rebuilding the Premises,
free and clear of all liens or claims for liens. The interest earned on amounts in the Deposit
Account shall inure to the benefit of, and any taxes payable with respect thereto shall be payable
by, Mortgagor. Mortgagor shall pay all costs in connection with disbursement of funds pursuant to
this Section 6(a).

(b) If Mortgagor or Mortgagee receives the insurance proceeds of an Insured Casualty (other
than a Material Casualty Event) and such proceeds, individually and in the aggregate, are less than
or equal to $1,500,000, then, if received by Mortgagee, Mortgagee shall promptly turn over such
proceeds to Mortgagor and, in any event, such proceeds, together with any other necessary funds
available to Mortgagor, shall be used by Mortgagor solely to complete, as soon as reasonably
practicable, the proposed restoration, repair, replacement and rebuilding of the Premises, free and
clear of all liens or claims for liens.

(c) Without limitation of any other provision of this Mortgage, Mortgagee shall be entitled to
(i) consult with, and rely upon the advice of, the Construction Monitor, and (ii) consult with and
rely on instructions from Required Lenders in accordance with Article VIII of the Loan Agreement,
in each case in connection with this Section 6 and Section 5.

 

5

 

7. Condemnation.

(a) Mortgagor hereby (i) grants to Mortgagee, for the ratable benefit of the Secured Parties,
a security interest in, and (ii) assigns, transfers and sets over unto Mortgagee the entire
proceeds of, any award or claim for damages for any of the Premises taken or damaged under the
power of eminent domain or by condemnation including damages to remainder (“Condemnation
Proceeds”). Mortgagor shall turn over to Mortgagee any Condemnation Proceeds that (i) individually
or in the aggregate, exceed $1,500,000 and are not the result of a Material Casualty Event, or (ii)
are the result of a Material Casualty Event, in each case substantially simultaneously with (and in any event not later than the
third Business Day next following) receipt thereof by Mortgagor. Except as hereinafter provided in
this Section 7 or in the Loan Agreement, Mortgagee may apply the Condemnation Proceeds in reduction
of Indebtedness Hereby Secured then most remotely to be paid, whether due or not; provided,
however, that, unless such Condemnation Proceeds are the result of a Material Casualty Event, if in
the judgment of Mortgagee the Premises can be restored or rebuilt to an economic unit not less
valuable than prior to the condemnation, and adequately securing the outstanding balance of the
Indebtedness Hereby Secured, Mortgagee may require Mortgagor to restore or rebuild the Premises; in
which event, provided that there then exists no uncured Event of Default, the Condemnation Proceeds
held by Mortgagee shall be used to reimburse Mortgagor for the cost of such rebuilding or
restoring. If Mortgagor is permitted to rebuild or restore the Premises as aforesaid and the
Condemnation Proceeds exceed $1,500,000 individually or in the aggregate, such rebuilding or
restoration shall be effected in accordance with plans and specifications submitted to and approved
in advance by Mortgagee (which approval may be given or withheld in its reasonable discretion) and
the Condemnation Proceeds shall be paid out in the same manner as provided in Section 6(a) for the
payment of insurance proceeds towards the cost of rebuilding or restoration. If the amount of
Condemnation Proceeds is insufficient to cover the cost of rebuilding or restoration, Mortgagor
shall pay such costs in excess of the Condemnation Proceeds before being entitled to reimbursement
out of the Condemnation Proceeds. Subject to the provisions of the Loan Agreement, any surplus
which may remain out of the Condemnation Proceeds after payment of such costs of rebuilding or
restoration shall, at the option of Mortgagee, be applied on account of the Indebtedness Hereby
Secured then most remotely to be paid or be paid to any other party entitled thereto. All
Condemnation Proceeds turned over to Mortgagee pursuant to this Section 7(a), or received directly
by Mortgagee, and not applied in reduction of Indebtedness Hereby Secured then most remotely to be
paid shall be deposited into a Deposit Account. The interest earned on amounts in the Deposit
Account shall inure to the benefit of, and any taxes payable with respect thereto shall be payable
by, Mortgagor. Mortgagor shall pay all costs in connection with disbursement of funds pursuant to
this Section 7(a).

(b) If Mortgagor receives Condemnation Proceeds that are not the result of a Material Casualty
Event and such Condemnation Proceeds, individually and in the aggregate, are less than or equal to
$1,500,000, such Condemnation Proceeds, together with any other necessary funds available to
Mortgagor, shall be used by Mortgagor solely to complete, as soon as reasonably practicable, the
proposed rebuilding or restoration of the Premises, free and clear of all liens or claims for liens
and in accordance with plans and specifications submitted to and approved in advance by Mortgagee
(which approval may be given or withheld in its reasonable discretion).

(c) Without limitation of any other provision of this Mortgage, Mortgagee shall be entitled to
(i) consult with, and rely upon the advice of, the Construction Monitor, and (ii) consult with and
rely on instructions from Required Lenders in accordance with Article VIII of the Loan Agreement,
in each case in connection with this Section 7.

8. Stamp Tax. If any tax is due or becomes due in respect of the extension of the
Loans, Mortgagor shall pay such tax in the manner required by such law.

9. Prepayment Privilege. Mortgagor may prepay the principal of the Loans at the times,
to the extent and in the manner set forth in the Loan Agreement.

 

6

 

10. Effect of Extensions of Time, Amendments on Junior Liens and Others. If payment
of the Indebtedness Hereby Secured, or any part thereof, be extended or varied, or if any part of
the security be released, all persons now or at any time hereafter liable therefor, or interested
in the Premises, shall be held to assent to such extension, variation or release and their
liability, and the lien and all provisions hereof shall continue in full force and effect; the
right of recourse against all such persons being expressly reserved by Mortgagee, notwithstanding
any such extension, variation or release. Any junior mortgage, or other lien upon the Premises or
any interest therein, shall be subject to the rights of Mortgagee to amend, modify and supplement
this Mortgage, the Loan Agreement and any other Loan Document (as defined in the Loan Agreement) or
any other document or instrument executed and delivered, or delivered, in connection therewith and
the assignment of rents and security agreement contained herein, and to extend the maturity of the
Indebtedness Hereby Secured, in each and every case without obtaining the consent of the holder of
such junior lien and without the lien of this Mortgage, or any part thereof, losing its priority
over the rights of any such junior lien.

11. Mortgagee’s Performance of Mortgagor’s Obligations. In case of an Event of
Default, Mortgagee either before or after acceleration of the Indebtedness Hereby Secured or the
foreclosure of the lien hereof and during the period of redemption, if any, may, but shall not be
required to, make any payment or perform any act herein in any form and manner deemed expedient to
Mortgagee. Mortgagee may, but shall not be required to, make full or partial payments of principal
or interest on superior encumbrances, if any, and pay, purchase, discharge, compromise or settle
any tax lien or other prior lien or title or claim thereof, redeem from any tax sale or forfeiture,
contest any tax or assessment, and may, but shall not be required to, complete construction,
furnishing and equipping of the improvements upon the Premises and rent, operate and manage the
Premises and the Personal Property and pay operating costs and expenses, including management fees,
of every kind and nature in connection therewith, so that the Premises shall be operational and
usable. The amount of all monies paid for any of the purposes herein authorized, and all expenses
paid or incurred in connection therewith, including attorneys’ fees and monies advanced to protect
the Premises and the lien hereof, shall be additional Indebtedness Hereby Secured, whether or not
they exceed the amount of the Loans, and shall become immediately due and payable without notice,
and with interest thereon at the rate specified in Section 2.06 of the Loan Agreement (herein
called the “Default Rate”). Inaction of Mortgagee shall never be considered as a waiver of any
right accruing to it on account of any default on the part of Mortgagor. Mortgagee, in making any
payment hereby authorized: (a) relating to taxes and assessments, may do so according to any bill,
statement or estimate, without inquiry into the validity of any tax, assessment, sale, forfeiture,
tax lien or title or claim thereof; (b) for the purchase, discharge, compromise or settlement of
any other superior lien, may do so without inquiry as to the validity or amount of any claim for
lien which may be asserted; or (c) in connection with the completion of construction, furnishing or
equipping of the Premises, the rental, operation or management of the Premises or the payment of
operating costs and expenses thereof may do so in such amounts and to such persons as Mortgagee may
deem appropriate and may enter into such contracts therefor as Mortgagee may deem appropriate or
may perform the same itself.

12. Inspection of Premises. Mortgagee may inspect the Premises at all reasonable
times and shall have access thereto permitted for that purpose as set forth in the Loan Agreement.

 

7

 

13. Restrictions on Transfer. It shall be an immediate Event of Default and default
hereunder if, without the prior written consent of Mortgagee:

(a) Mortgagor shall create, effect, lease, contract or consent to or shall suffer or permit
any conveyance, sale, encumbrance, lien or alienation of the Premises or any part thereof or
interest therein, except for (i) liens permitted under Section 6.02 of the Loan Agreement, (ii) to
the extent not prohibited under the Loan Agreement, sales or other dispositions of any equipment or
machinery constituting part of the Premises no longer useful in connection with the operation of
the Premises, and (iii) to the extent not prohibited under the Loan Agreement, sales of inventory
in the ordinary course of business; or

(b) If all or any part of the direct interest in Mortgagor or any of the beneficial interest
in Mortgagor, or any successor-in-interest thereof shall be sold, assigned or transferred, or
contracted to be sold, assigned or transferred without the prior consent of Mortgagee;

and in each case it shall be an Event of Default even though such conveyance, sale, assignment,
encumbrance, lien or transfer is effected voluntarily or involuntarily, by operation of law or
otherwise.

14. Events of Default. If any of the Events of Default set forth in the Loan
Agreement or any other events of default hereunder (collectively herein called “Events of Default”)
shall occur, then Mortgagee is authorized and empowered, at its option, without affecting the lien
hereby created or the priority of said lien or any right of Mortgagee hereunder, to declare,
without further notice all Indebtedness Hereby Secured immediately due and payable, whether or not
such default be thereafter remedied by Mortgagor, and Mortgagee may immediately proceed to
foreclose this Mortgage and to exercise any right, power or remedy provided by this Mortgage, the
Loan Agreement, the Guarantee and Collateral Agreement, any other document securing the Loans or
any other Loan Document (as defined in the Loan Agreement) or by law or in equity.

15. Foreclosure. When the Indebtedness Hereby Secured or any part thereof shall
become due, by acceleration or otherwise, Mortgagee shall have the right to foreclose the lien
hereof for the Indebtedness Hereby Secured or any part thereof. In any suit or proceeding to
foreclose the lien hereof, there shall be allowed and included as additional indebtedness in the
decree for sale, all expenditures and expenses which may be paid or incurred by or on behalf of
Mortgagee for attorneys’ fees, appraisers’ fees, outlays for documentary and expert evidence,
stenographers’ charges, publication costs and costs (which may be estimated as to items to be
expended after entry of the decree) of procuring abstracts of title, title searches and
examinations, title insurance policies, and similar data and assurances with respect to title to
prosecute such suit or to evidence to bidders at sales, which may be had pursuant to such decree,
the true conditions of the title to or value of the Premises. All expenditures and expenses in
this Section mentioned and expenses and fees as may be incurred in the protection of said Premises
and the maintenance of the lien of this Mortgage, including the fees of any attorney employed by
Mortgagee in any litigation or proceedings affecting this Mortgage, the Loans or the Premises,
including probate and bankruptcy proceedings, or in preparation for the commencement or defense of
any proceeding or threatened suit or proceeding, shall be immediately due and payable by Mortgagor,
with interest thereon at the Default Rate.

 

8

 

16. Receiver. Upon, or at any time after, the filing of a complaint to foreclose
this Mortgage, the court may appoint a receiver of the Premises. Such appointment shall be made as
provided before or after sale, without notice, without regard to solvency or insolvency of
Mortgagor and without regard to the then value of the Premises or whether the same shall be then
occupied as a homestead or not. Mortgagee or any holder of the Loans may be appointed as such
receiver. Such receiver shall have the power to collect the rents, issues and profits of the Premises during the pendency of such
foreclosure suit and, in case of a sale and a deficiency, during the full statutory period of
redemption, if any, whether there be a redemption or not, as well as during any further times when
Mortgagor, except for the intervention of such receiver, would be entitled to collection of such
rents, issues and profits and all other powers which may be necessary or are usual in such cases
for the protection, possession, control, management and operation of the Premises during the whole
of said period. The court may, from time to time, authorize the receiver to apply the net income
from the Premises in his hands in payment in whole or in part of:

(a) the Indebtedness Hereby Secured or the indebtedness secured by any decree foreclosing this
Mortgage, or any tax, special assessment or other lien which may be or become superior to the lien
hereof or of such decree, provided such application is made prior to the foreclosure sale; or

(b) the deficiency in case of a sale and deficiency.

17. Insurance Upon Foreclosure. In case of an insured loss after foreclosure
proceedings have been instituted, the proceeds of any insurance policies, if not applied (subject
to Sections 5 and 6 hereof) in Mortgagee’s sole discretion to rebuilding or restoring the buildings
or improvements, shall be used to pay the amount due in accordance with any decree of foreclosure
and any balance shall be paid as the court may direct. In the case of foreclosure of this
Mortgage, the court may provide in its decree that the decree creditor may cause a new loss payable
clause to be attached to each casualty insurance policy making the proceeds payable to decree
creditors. Any such foreclosure decree may further provide that in case of one or more redemptions
under said decree, each successive redemptor may cause the preceding loss clause attached to each
casualty insurance policy to be canceled and a new loss clause to be attached thereto, making the
proceeds thereunder payable to such redemptor. In the event of foreclosure sale, Mortgagee is
authorized, without the consent of Mortgagor, to assign any and all insurance policies to the
purchaser at the sale or to take such other steps as Mortgagee may deem advisable to cause the
interest of such purchaser to be protected by any of the said insurance policies.

18. Waiver of Reinstatement and Redemption Rights. To the full extent permitted by
law, Mortgagor covenants and agrees that it will not at any time insist upon or plead, or in any
manner whatsoever claim or take any advantage of, any stay, exemption or extension law or any
so-called “Moratorium Law” now or at any time hereafter in force, or claim, take or insist upon any
benefit or advantage of or from any law now or hereafter in force providing for the valuation or
appraisement of the Premises, or any part thereof, prior to any sale or sales thereof to be made
pursuant to any provisions herein contained, or to decree, judgment or order of any court of
competent jurisdiction, or after such sale or sales claim exercise any rights under any statute now
or hereafter in force to redeem the property so sold, or any part thereof, or relating to the
marshalling thereof, upon foreclosure sale or other enforcement hereof. Mortgagor expressly waives
any and all rights of reinstatement and redemption from sale under any order or decree of
foreclosure of this Mortgage on its own behalf and on behalf of each and every person, excepting
only decree or judgment creditors of Mortgagor acquiring any interest or title to the Premises
subsequent to the date hereof, it being the intent hereof that any and all such rights of
reinstatement and redemption of Mortgagor and of all other persons are and shall be deemed to be
hereby waived to the full extent permitted by law. Mortgagor will not invoke or utilize any such
law or laws or otherwise hinder, delay or impede the execution of any right, power and remedy as
though no such law or laws have been made or enacted.

 

9

 

19. Mortgagee-in-Possession. Nothing shall be construed as constituting Mortgagee a
mortgagee-in-possession in the absence of actual taking of possession of the Premises by Mortgagee.

20. Mortgagee’s Right of Possession. Upon or at any time after filing a complaint to
foreclose this Mortgage, the court may appoint Mortgagee as mortgagee-in-possession of the
Premises. Mortgagor hereby waives any rights it may have to object to such appointment. Such
appointment may be made before or after sale, without notice, without regard to the solvency or
insolvency of Mortgagor and without regard to the then value of the Premises. Upon such
appointment, Mortgagee shall be entitled to take actual possession of the Premises, or any part
thereof, personally or by its agents or attorneys, and Mortgagor shall surrender such possession to
Mortgagee, together with all documents, books, records, papers and accounts of Mortgagor as may be
necessary or desirable in connection with the management and operation of the Premises. Mortgagee
may exclude Mortgagor, its agents and servants wholly therefrom and may act as attorney in fact or
agent of Mortgagor, or in its own name as Mortgagee, and under the powers herein granted, hold,
operate, manage and control the Premises and conduct the business thereof in such manner as it
deems proper or necessary to enforce the payment or security of the avails, rents, issues and
profits of the Premises, including actions for the recovery of rent, actions in forcible detainer
and actions in distress for rent, and with full power:

(a) to cancel or terminate any lease or sublease for any cause or on any grounds that would
entitle Mortgagor to cancel the same;

(b) to elect or disaffirm any lease or sublease which is then subordinate to the lien hereof
except to the extent proscribed by any non-disturbance agreement to which Mortgagee is a party;

(c) to extend or modify any then existing leases and to make new leases, which extensions,
modifications and new leases may provide for terms to expire or for options to lessees to extend or
renew terms to expire beyond the maturity date of the Indebtedness Secured Hereby and beyond the
date of the issuance of a deed or deeds to a purchaser or purchasers at a foreclosure sale, it
being understood and agreed that any such leases, and the options or other such provisions to be
contained therein shall be binding upon Mortgagor and all persons whose interests in the Premises
are subject to the lien hereof and upon the purchaser or purchasers at any foreclosure sale,
notwithstanding any redemption from sale, discharge of the mortgage indebtedness, satisfaction of
any foreclosure decree, or issuance of any certificate of sale or deed to any purchaser;

(d) to make all necessary or proper repairs, decorating, renewals, replacements, alterations,
additions, betterments and improvements to the Premises as to it may seem judicious;

(e) to insure and reinsure the same and all risks incidental of Mortgagee’s possession,
operation and management thereof;

(f) to receive all of such avails, rents, issues and profits hereby granting full power and
authority to exercise each and every of the rights, privileges and powers herein granted at any and
all times hereafter, without notice to Mortgagor. Mortgagee shall not be obligated to perform or
discharge, nor does it hereby undertake to perform or discharge, any obligation, duty or liability
under any leases. Mortgagor shall and does hereby agree to indemnify and hold Mortgagee harmless
of and from any and all liability, loss or damage which it may or might incur under said leases or
under or by reason of the assignment thereof and of and from any and all claims and demands
whatsoever which may be asserted against it by reason of any alleged obligations or undertakings on its part to perform or
discharge any of the terms, covenants or agreements contained in said leases. Should Mortgagee
incur any such liability, loss or damage, under said leases or under or by reason of the assignment
thereof, or in the defense of any claims or demands, the amount thereof, including costs, expenses
and reasonable attorneys’ fees, shall constitute Indebtedness Hereby Secured and Mortgagor shall
reimburse Mortgagee therefor immediately upon demand; and

 

10

 

(g) to use and apply the avails, rents, issues, profits and proceeds of the Premises in
payment of or on account of the following, in such order as Mortgagee may determine in its sole
discretion:

(i) to the payment of the operating expenses of the Premises, including cost of management and
leasing thereof (which shall include reasonable compensation to Mortgagee and its agent or agents
if management be delegated to an agent or agents, and shall also include lease commissions and
other compensation and expenses of seeking and procuring tenants and entering into leases),
established claims for damages, if any, and premiums on insurance hereinabove authorized;

(ii) to the payment of taxes and special assessments now due or which may hereafter become due
on the Premises; and, if this is a leasehold mortgage, of all rents due or which may become
hereafter due under the underlying lease;

(iii) to the payment of all repairs, decorating, renewals, replacements, alterations,
additions, betterments and improvements of the Premises, including but not limited to the cost from
time to time of installing or replacing refrigeration and gas or electric stoves therein, and of
placing the Premises in such condition as will, in the judgment of Mortgagee, make it readily
rentable; and

(iv) to the payment in full of any Indebtedness Hereby Secured (the amounts so applied to be
distributed among the Secured Parties pro rata in accordance with the amounts of the Indebtedness
Hereby Secured owed to them on the date of any such application).

21. Title in Mortgagor’s Successors. If ownership of the Premises becomes vested in a
person or persons other than Mortgagor, Mortgagee may, without notice to Mortgagor, deal with such
successor or successors in interest of Mortgagor with reference to this Mortgage and the
Indebtedness Hereby Secured in the same manner as with Mortgagor. Mortgagor shall give immediate
written notice to Mortgagee of any conveyance, transfer or change of ownership of the Premises.
Nothing in this Section shall vary or negate the provisions of Section 13 hereof.

22. Assignment of Rents, Issues and Profits.

(a) Assignment. Mortgagor hereby assigns and transfers to Mortgagee for the ratable
benefit of the Secured Parties all the rents, issues and profits of the Premises and all present
and future leases upon all or any part of the Premises and any and all extensions and renewals
thereof (“Leases”) and all security deposits or interest therein now or hereafter held by
Mortgagor, and hereby gives to and confers upon Mortgagee the right, power and authority to collect
such rents, issues and profits. Mortgagor irrevocably appoints Mortgagee its true and lawful
attorney-in-fact, at the option of Mortgagee at any time and from time to time, to demand, receive
and enforce payment, to give receipts, releases and satisfactions, and to sue in the name of
Mortgagor or Mortgagee for all such rents, issues and profits and apply the same to the indebtedness secured hereby. The assignment of the rents,
issues and profits of the Premises in this Section is intended to be an absolute assignment from
Mortgagor to Mortgagee and not merely the passing of a security interest.

 

11

 

(b) Mortgagor’s Representations. Mortgagor represents that: (i) it has made no prior
assignment or pledge of the rents assigned hereby or of Mortgagor’s interest in any of the Leases;
(ii) to the best of Mortgagor’s knowledge no default exists in any of the Leases; (iii) to the best
of Mortgagor’s knowledge none of the Leases have been modified; and (iv) no prepayment of any
installment of rent for more than one (1) month due under any of the Leases has been received by
Mortgagor.

(c) Negative Covenants of Mortgagor. Mortgagor will not, without Mortgagee’s prior
written consent, which may be given or withheld in its sole discretion: (i) execute an assignment
or pledge of the rents from the Premises or any part thereof or of Mortgagor’s interest in any of
the Leases; (ii) terminate or consent to the cancellation or surrender of any of the Leases except
in the ordinary course of business; (iii) modify, extend or otherwise alter the terms of any of the
Leases except in the ordinary course of business; (iv) accept prepayments more than one month in
advance of any installments of rents to become due under any of the Leases; or (v) execute any
lease of all or any portion of the Premises except for actual occupancy by the lessee thereunder.

(d) Affirmative Covenants of Mortgagor. Mortgagor at its sole cost and expense will
(i) at all times promptly and faithfully abide by, discharge or perform all of the covenants,
conditions and agreements contained in the Leases; (ii) enforce or secure the performance of all of
the covenants, conditions and agreements of the Leases on the part of the lessees to be kept and
performed; (iii) appear in and defend any action or proceeding arising under, growing out of or in
any manner connected with the Leases or the obligations, duties or liabilities of Mortgagor, as
lessor, and of the lessees thereunder, and pay all reasonable costs and expenses of Mortgagee,
including reasonable attorneys’ fees, in any such action or proceeding in which Mortgagee may
appear; (iv) transfer and assign to Mortgagee any and all Leases subsequently entered into, which
shall be made upon the same or substantially the same terms and conditions (at current market
rates) as contained in the Leases presently in effect, and make, execute and deliver to Mortgagee
upon demand any and all instruments required to effectuate said assignment; (v) furnish to
Mortgagee, within ten (10) days after a request by Mortgagee to do so, a written statement
containing the names of all lessees of the Premises or any part thereof, the terms of their
respective Leases, the spaces occupied and the rentals payable thereunder as to Leases in which
Mortgagor has an interest; (vi) use, within five (5) days of the demand therefor by Mortgagee,
commercially reasonable efforts to request from any lessee under any of the Leases a certificate
with respect to the status thereof as to Leases in which Mortgagor has an interest; and (vii)
furnish Mortgagee promptly with copies of any notices of default which Mortgagor may at any time
forward to any lessee of the Premises or any part thereof.

(e) Defeasance. Until an Event of Default, Mortgagee hereby grants Mortgagor a
revocable license to collect upon, but not prior to accrual, all rents, issues, profits and
advances from the Premises and to retain, use and enjoy the same. Upon the occurrence of an Event
of Default under this Mortgage or the Loan Agreement, such license shall be automatically revoked.

 

12

 

23. Collection Upon Default.

(a) Upon the occurrence and during the continuance of any Event of Default, Mortgagee, but
without obligation so to do and without releasing Mortgagor from any obligation hereof, may make or
do the same in such manner and to such extent as Mortgagee may deem necessary to protect the
security hereof, including specifically, without limiting its general powers, the right to appear
in and defend any action or proceeding purporting to affect the security hereof or the rights or
powers of Mortgagee, and also the right to perform and discharge each and every obligation,
covenant and agreement of Mortgagor in the Leases contained, and in exercising any such powers to
incur and pay necessary and reasonable costs and expenses, including reasonable attorneys’ fees,
all at the expense of Mortgagor.

(b) Mortgagee shall not be obligated to perform or discharge, nor does it hereby undertake to
perform or discharge, any obligation, duty or liability under the Leases or under or by reason of
this assignment. Mortgagor shall and does hereby agree to indemnify and hold Mortgagee harmless of
and from any and all liability, loss or damage which it may or might incur under the Leases or
under or by reason of this Mortgage and of and from any and all claims and demands whatsoever which
may be asserted against it by reason of any alleged obligations or undertaking on its part to
perform or discharge any of the terms, covenants or agreements contained in the Leases. Should
Mortgagee incur any such liability, loss or damage under the Leases or under or by reason of this
assignment or in the defense of any such claims or demands, the amount thereof, including
reasonable costs, expenses and reasonable attorneys’ fees shall be secured hereby, and Mortgagor
shall reimburse Mortgagee therefor with interest at the Default Rate immediately upon demand.

(c) A demand on any lessee by Mortgagee for the payment of the rent on any Event of Default
claimed by Mortgagee shall be sufficient warrant to the lessee to make future payment of rents to
Mortgagee without the necessity for further consent by Mortgagor, and any person may and is hereby
authorized to rely thereon.

(d) To the extent that Mortgagor has the right to so do, Mortgagor does further specifically
authorize and instruct each and every present and future lessee of the whole or any part of the
Premises to pay all unpaid rental agreed upon in any tenancy to Mortgagee upon receipt of demand
from Mortgagee to pay the same, and Mortgagor hereby waives the right, claim or demand it may now
or hereafter have against any such lessee by reason of such payment of rental to Mortgagee or
compliance with other requirements of Mortgagee pursuant to this assignment. Mortgagee shall make
a demand on such lessees only after an Event of Default.

(e) Upon the occurrence and during the continuance of an Event of Default, Mortgagee may,
without further notice, either in person or by agent with or without bringing any action or
proceeding, or by a receiver to be appointed by a court, and, either with or without taking
possession of the Premises, in the name of Mortgagor or in its own name sue for or otherwise
collect and receive such rents, issues, profits and advances, including those past due and unpaid,
and apply the same, less reasonable costs and expenses of operation and collection, including, but
not being limited to, reasonable attorneys’ fees, management fees and broker’s commissions, upon
any Indebtedness Secured Hereby, and in such order as Mortgagee may determine. Mortgagee reserves,
within its own discretion, the right to determine the method of collection and the extent to which
enforcement of collection of delinquent rents shall be prosecuted and shall not be accountable for
more monies than it actually receives from the Premises. The entering upon and taking possession
of the Premises or the collection of such rents, issues, profits and advances, and the application
thereof, as aforesaid, shall not cure or waive any default hereunder and Mortgagee may continue to so possess and collect even after any such default has
been cured. Mortgagor agrees that it will facilitate in all reasonable ways Mortgagee’s collection
of said rents, and will, upon request by Mortgagee, promptly execute a written notice to each
lessee directing the lessee to pay rent to Mortgagee.

 

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24. Security Agreement. This instrument constitutes a Security Agreement as that term
is used and defined in the Uniform Commercial Code in Illinois (the “Code”) and shall also serve as
a grant of security interest of the Personal Property provided herein. Mortgagor fully authorizes
Mortgagee to file or cause to be filed such UCC Financing Statements as are requested by Mortgagee,
and does further authorize Mortgagee to file or cause to be filed from time to time thereafter such
additional Financing Statements and Continuation Statements as Mortgagee may request. All of
Mortgagor’s right, title and interest in the Personal Property is hereby assigned to Mortgagee for
the ratable benefit of the Secured Parties to secure the payment of the Indebtedness Hereby
Secured.

Mortgagor hereby makes the following representations, warranties and covenants regarding the
Personal Property:

(a) the Personal Property is bought or used primarily for business use;

(b) the Personal Property (except for receivables and bank accounts) will be kept at the
Premises. Mortgagor will not remove the Personal Property from the Premises without the prior
written consent of Mortgagee, which consent may be withheld in Mortgagee’s sole and absolute
discretion, unless the Personal Property is obsolete, damaged, sold or disposed of in the ordinary
course of business;

(c) except for the security interest granted hereby Mortgagor is the owner of the Personal
Property free from any adverse lien, security interest or encumbrance other than liens permitted
under Section 6.02 of the Loan Agreement; and Mortgagor will defend the Personal Property against
all claims and demands of all persons at any time claiming the same or any interest therein;

(d) no Financing Statement covering any of the Personal Property or any proceeds thereof is on
file in any public office, other than financing statements to be released by reason of payments to
be made from disbursements of monies borrowed and secured hereby. Mortgagor shall immediately
notify Mortgagee in writing of any change in name, address, identity or ownership structure from
that shown in this Mortgage and shall also upon demand furnish to Mortgagee such further
information and shall execute and deliver to Mortgagee such financing statements and other
documents in form satisfactory to Mortgagee and shall do all such acts and things as Mortgagee may
at any time or from time to time reasonably request or as may be necessary or appropriate to
establish and maintain a perfected security interest in the Personal Property as security for the
Indebtedness Hereby Secured, subject to no adverse liens or encumbrances other than liens permitted
under Section 6.02 of the Loan Agreement; and Mortgagor will pay the cost of filing the same or
filing or recording this Mortgage in all public offices wherever filing or recording is deemed by
Mortgagee to be necessary or desirable. The original or a carbon, photographic or other
reproduction of this Mortgage is sufficient as a financing statement;

(e) Mortgagor will not sell or offer to sell, assign, pledge, lease or otherwise transfer or
encumber the Personal Property or any interest therein, unless such Personal Property is obsolete
or is sold or disposed of in the ordinary course of business, or such sale, assignment, pledge,
lease or other transfer or encumbrance is permitted under the Loan Agreement; and

 

14

 

(f) Mortgagor will keep the Personal Property free from any adverse lien, security interest or
encumbrance (other than liens permitted under Section 6.02 of the Loan Agreement) and in good order
and repair, ordinary wear and tear excepted, shall not waste or destroy the Personal Property or
any part thereof, and shall not use the Personal Property in violation of any statute, ordinance or
policy of insurance thereon. Mortgagee may examine and inspect the Personal Property at any
reasonable time or times, on reasonable notice, wherever located.

Except upon the occurrence and during the continuance of an Event of Default, Mortgagor may
have possession of the Personal Property and use it in any lawful manner not inconsistent with this
Mortgage and not inconsistent with any policy of insurance thereon.

Upon the occurrence and during the continuance of an Event of Default (regardless of whether
the Code has been enacted in the jurisdiction where rights or remedies are asserted) Mortgagee
shall have the remedies of a secured party under the Code, including without limitation the right
to take immediate and exclusive possession of the Personal Property, or any part thereof, and for
that purpose may, so far as Mortgagor can give authority therefor, with or without judicial
process, enter (if this can be done without breach of the peace), upon any premises on which the
Personal Property or any part thereof may be situated and remove the same therefrom (provided that
if the Personal Property is affixed to the Real Estate, such removal shall be subject to the
conditions stated in the Code); and Mortgagee shall be entitled to hold, maintain, preserve and
prepare the Personal Property for sale, until disposed of, or may propose to retain the Personal
Property subject to Mortgagor’s right of redemption in satisfaction of Mortgagor’s obligations as
provided in the Code. Mortgagee, without removal, may render the Personal Property unusable and
dispose of the Personal Property on the Premises. Mortgagee may require Mortgagor to assemble the
Personal Property and make it available to Mortgagee for possession at a place to be designated by
Mortgagee which is reasonably convenient to both parties. Unless the Personal Property is
perishable or threatens to decline speedily in value or is of a type customarily sold on a
recognized market, Mortgagee will give Mortgagor at least ten (10) days’ notice of the time and
place of any public sale thereof or of the time after which any private sale or any other intended
disposition thereof is to be made. The requirements of reasonable notice shall be met if such
notice is mailed, postage prepaid, to the address of Mortgagor shown in this Mortgage at least ten
(10) days before the time of the sale or disposition. Mortgagee may buy at any public sale and if
the Personal Property is of a type customarily sold in a recognized market or is of a type which is
the subject of widely distributed standard price quotations, he may buy at private sale. The net
proceeds realized upon any such disposition, after deduction for the expenses of retaking, holding,
preparing for sale or lease, selling, leasing and the like and reasonable attorneys’ fees and legal
expenses incurred by Mortgagee both before and after judgment, if any, shall be applied in
satisfaction of the Indebtedness Hereby Secured (the amounts so applied to be distributed among the
Secured Parties pro rata in accordance with the amounts of Indebtedness Hereby Secured owed to them
on the date of any such application). Mortgagee will account to Mortgagor for any surplus realized
on such disposition and Mortgagor shall remain liable for any deficiency. All rights and remedies
under this Mortgage are subject to applicable law.

The remedies of Mortgagee hereunder are cumulative and the exercise of any one or more of the
remedies provided for herein or under the Code shall not be construed as a waiver of any of the
other remedies of Mortgagee so long as any part of Mortgagor’s obligations remains unsatisfied.

 

15

 

All rights of Mortgagee in, to and under this Mortgage and in and to the Personal Property
shall pass to and may be exercised by any assignee thereof. Mortgagor agrees that if Mortgagee
gives notice to Mortgagor of an assignment of said rights, upon such notice the liability of
Mortgagor to the assignee shall be immediate and absolute.

Mortgagor will not set up any claim against Mortgagee as a defense, counterclaim or setoff to
any action brought by any such assignee for the unpaid balance owed hereunder or for possession of
the Personal Property, provided that Mortgagor shall not waive hereby any right of action to the
extent that waiver thereof is expressly made unenforceable under applicable law.

25. Rights Cumulative. Each right, power and remedy conferred upon Mortgagee
hereunder is cumulative and in addition to every other right, power or remedy, express or implied,
given now or hereafter existing, at law or in equity, and each and every right, power and remedy so
existing may be exercised from time to time as often and in such order as may be deemed expedient
by Mortgagee, and the exercise or the beginning of the exercise of one right, power or remedy shall
not be a waiver of the right to exercise at the same time or thereafter any other right, power or
remedy. No delay or omission of Mortgagee in the exercise of any right, power or remedy shall
impair any such right, power or remedy, or be construed to be a waiver of any default or
acquiescence therein.

26. Successors and Assigns. This Mortgage and each and every covenant, agreement and
other provision hereof shall be binding upon Mortgagor and its successors and assigns, including
each and every from time to time record owner of the Premises or any other person having an
interest therein, and shall inure to the benefit of Mortgagee and its successors and assigns.

27. Provisions Severable. The unenforceability or invalidity of any provisions hereof
shall not render any other provisions herein contained unenforceable or invalid.

28. Waiver of Defense. Actions for the enforcement of the lien or any provision
hereof shall not be subject to any defense which would not be good and available to the party
interposing the same in an action at law upon the Loan Agreement, and all such defenses are hereby
waived by Mortgagor.

29. Captions and Pronouns. The captions and headings of the various sections of this
Mortgage are for convenience only, and are not to be construed as confining or limiting in any way
the scope or intent of the provisions hereof. Whenever the context requires or permits, the
singular shall include the plural, the plural shall include the singular and the masculine,
feminine and neuter shall be freely interchangeable.

 

16

 

30. Addresses and Notices. Notices and other communications provided for herein shall
be in writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by fax, as follows:

If to Mortgagee:

Credit Suisse AG, Cayman Islands Branch,

as Administrative Agent and Collateral Agent

One Madison Avenue

New York, New York 10010

Facsimile No.: (212) 322-2291

with a copy (which shall not constitute notice) to:

Proskauer Rose llp

2049 Century Park East

Suite 3200

Los Angeles, California 90067

Attention: Neil Cummings, Esq.

Facsimile No. (310) 557-2193

If to Mortgagor:

Rentech Energy Midwest Corporation

10877 Wilshire Blvd., Suite 710

Los Angeles, California 90024

Facsimile No.: (310) 208-7165

All notices and other communications given to any party hereto in accordance with the provisions of
this Mortgage shall be deemed to have been given on the date of receipt, if delivered by hand or
overnight courier service or sent by fax, or on the date that is five (5) business days after
dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed
(properly addressed) to such party as provided in this Section 30 or in accordance with the latest
unrevoked direction from such party given in accordance with this Section 30.

31. No Liability on Mortgagee. Notwithstanding anything contained herein, Mortgagee
shall not be obligated to perform or discharge, and does not hereby undertake to perform or
discharge, any obligation, duty or liability of Mortgagor, whether hereunder, under any of the
leases affecting the Premises, under any contract relating to the Premises or otherwise, and
Mortgagor shall and does hereby agree to indemnify and hold Mortgagee harmless of and from any and
all liability, loss or damage which Mortgagee may incur under or with respect to any portion of the
Premises or under or by reason of its exercise of rights hereunder; and any and all claims and
demands whatsoever which may be asserted against it by reason of any alleged obligation or
undertaking on its part to perform or discharge any of the terms, covenants or agreements contained
in any of the contracts, documents or instruments affecting any portion of the Premises or
affecting any rights of Mortgagor thereto. Mortgagee shall not have responsibility for the
control, care, management or repair of the Premises or be responsible or liable for any negligence
in the management, operation, upkeep, repair or control of the Premises resulting in loss or injury
or death to any tenant, licensee, employee, stranger or other person. No liability shall be
enforced or asserted against Mortgagee in its exercise of the powers herein granted to it, and
Mortgagor expressly waives and releases any such liability. Should Mortgagee incur any such
liability, loss or damage under any of the leases affecting the Premises or under or by reason
hereof, or in the defense of any claims or demands, Mortgagor agrees to reimburse Mortgagee
immediately upon demand for the full amount thereof, including costs, expenses and attorneys’ fees,
and the amount thereof shall constitute Indebtedness Hereby Secured.

 

17

 

32. Mortgagee not a Joint Venturer or Partner. Mortgagor and Mortgagee acknowledge
and agree that Mortgagee is not and in no event shall be deemed to be a partner or joint venturer
with Mortgagor or any beneficiary of Mortgagor. Mortgagee shall not be deemed to be a partner or
joint venturer on account of its becoming a mortgagee in possession or exercising any rights
pursuant to this Mortgage or pursuant to any other instrument or document evidencing or securing
any of the Indebtedness Secured Hereby, or otherwise.

33. E.P.A. Compliance. Mortgagor covenants that the buildings and other improvements
constructed on, under or above the subject real estate will be used and maintained in accordance
with the applicable state or federal environmental protection agency regulations as set forth in
the Loan Agreement.

34. Subsequent Loan Disbursements. This Mortgage is given to secure and shall be a
valid lien as to all the Indebtedness Hereby Secured and secures presently existing Indebtedness
Hereby Secured and future Indebtedness Hereby Secured, if any, as it arises under the Loan
Agreement to the same extent as if such future Indebtedness Hereby Secured arose on the date of the
execution of this Mortgage although the amount and character of the Indebtedness Hereby Secured may
vary during the term of this Mortgage. This Mortgage is intended to and shall be valid and have
priority over all subsequent liens and encumbrances, including statutory liens, except solely taxes
levied on the Premises, to the extent of the amount of the Obligations, plus interest and any
disbursements made pursuant to the Loan Agreement and Mortgage.

35. Furnishing of Financial Statements and Reports to Mortgagee. Mortgagor covenants
and agrees that it will keep and maintain books and records of account, or cause books and records
of account to be kept and maintained in which full, true and correct entries shall be made of all
dealings and transactions relative to the Premises, which books and records of account shall, at
reasonable times and on reasonable notice, be open to the inspection of Mortgagee and its
accountants and other duly authorized representatives. Such books of record and account shall be
kept and maintained either:

(a) in accordance with generally accepted accounting principles consistently applied; or

(b) in accordance with a cash basis or other recognized comprehensive basis of accounting
consistently applied.

Mortgagor covenants and agrees to furnish or cause to be furnished to Mortgagee financial
statements of Mortgagor as set forth in the Loan Agreement.

36. UCC Financing Statement/Fixture Filing. This Mortgage is intended to be a UCC
Financing Statement/fixture filing within the purview of Section 9-502(c) of the Code with respect
to the collateral and the goods described herein, which goods are and may become fixtures relating
to the Premises. The addresses of Mortgagor as Debtor and Mortgagee as Secured Party are as set
forth in Section 30. This Mortgage is to be filed for record with the Recorder of Deeds of the
county or counties where the Premises are located. A photographic or other reproduction of this
instrument or any other financing statement relating to this instrument shall be sufficient as a
financing statement.

 

18

 

37. Jury Waiver. Mortgagor knowingly, voluntarily and intentionally waives
irrevocably the right it may have to trial by jury with respect to any legal proceeding based
hereon, or arising out of, under or in connection with the Loans, the Indebtedness Hereby Secured,
or the Premises, or any agreement executed or contemplated to be executed in conjunction herewith
or any course of conduct or course of dealing in which Mortgagee and Mortgagor are adverse parties.
This provision is a material inducement for Mortgagee in granting any financial accommodation to
Mortgagor.

38. Submission to Jurisdiction. Mortgagor hereby irrevocably submits to the
jurisdiction of any state or federal court sitting in Chicago, Illinois, or New York, New York,
over any action or proceeding based hereon and Mortgagor hereby irrevocably agrees that all claims
in respect of such action or proceeding shall be heard and determined in such state or federal
court. Mortgagor hereby irrevocably waives, to the fullest extent it may effectively do so, the
defense of an inconvenient forum to the maintenance of such action or proceeding. Mortgagor agrees
that a final judgment in any such action or proceeding, shall be conclusive and may be enforced in
any other jurisdiction by suit on the judgment or in any other manner provided by law.

Mortgagor agrees not to institute any legal action or proceeding in connection with the Loans,
the other Obligations, the Indebtedness Hereby Secured or this Mortgage against Mortgagee or the
directors, officers, employees, agents or property thereof, in any court other than the one
hereinabove specified. Nothing in this Section shall affect the right of Mortgagee to serve legal
process in any other manner permitted by law or affect the right of Mortgagee to bring any action
or proceeding against Mortgagor or its property in the courts of any other jurisdictions.

39. Inconsistent Terms. To the extent any of the terms of this Mortgage are
inconsistent with or contradict the terms of the Loan Agreement, the terms of the Loan Agreement
shall govern.

40. USA Patriot Act. Mortgagor represents and warrants to Mortgagee that neither
Mortgagor nor any affiliate is identified in any list of known or suspected terrorists published by
any United States government agency (collectively, as such lists may be amended or supplemented
from time to time, referred to as the “Blocked Persons Lists”) including, without limitation, (a)
the annex to Executive Order 13224 issued on September 23, 2001, and (b) the Specially Designated
Nationals List published by the Office of Foreign Assets Control.

Mortgagor covenants to Mortgagee that if it becomes aware that it or any affiliate is
identified on any Blocked Persons List, Mortgagor shall immediately notify Mortgagee in writing of
such information. Mortgagor further agrees that in the event it or any Affiliate (as defined in
the Loan Agreement) is at any time identified on any Blocked Persons List, such event shall be an
Event of Default, and shall entitle Mortgagee to exercise any and all remedies provided in any Loan
Document or otherwise permitted by law. In addition, Mortgagee may immediately contact the Office
of Foreign Assets Control and any other government agency Mortgagee deems appropriate in order to
comply with its obligations under any law, regulation, order or decree regulating or relating to
terrorism and international money laundering. Upon the occurrence of such Event of Default,
Mortgagee will forbear enforcement of its rights and remedies during such time as (1) the person
(“Person”) identified in a Blocked Persons List is contesting in good faith by appropriate legal
proceedings such Person’s inclusion in a Blocked Persons List and (2) Mortgagee determines, in its
sole and absolute discretion, that such forbearance will not adversely affect title to, the
condition or value of, or any lien in favor of Mortgagee and encumbering, any part of the Premises (as defined in the Mortgages) or otherwise adversely impact the ability of any Person to
perform such Person’s obligations under or with respect to any Loan Document.

 

19

 

41. Certain Matters Relating to Property located in the State of Illinois. With
respect to the Premises which is located in the State of Illinois, notwithstanding anything
contained herein to the contrary:

a. Compliance with Illinois Mortgage Foreclosure Law. With respect to the Illinois
Mortgage Foreclosure Law (735 ILCS 5/15-1101 et seq., as amended) (the “IMFL”), Mortgagor
agrees and covenants that:

i. If any provision in this Mortgage is determined to be inconsistent with any
provision of the IMFL, the provisions of the IMFL shall take precedence over the provisions
of this Mortgage, but shall not invalidate or render unenforceable any other provisions of
this Mortgage that can be construed in a manner consistent with the IMFL.

ii. If any provision of this Mortgage shall grant to Mortgagee any rights or remedies
upon an Event of Default which are more limited than the rights that would otherwise be
vested in Mortgagee under the IMFL in the absence of such provision, Mortgagee shall be
vested with the rights granted in the IMFL to the full extent permitted by law.

iii. Without limiting the generality of the foregoing, all expenses incurred by
Mortgagee to the extent reimbursable under Sections 15-1510 and 15-1512 of the IMFL, whether
incurred before or after any decree or judgment of foreclosure, and whether enumerated in
this Mortgage, shall be added to the Indebtedness Hereby Secured or by the judgment of
foreclosure.

iv. Mortgagor and Mortgagee shall have the benefit of all of the provisions of the
IMFL, including all amendments thereto which may become effective from time to time after
the date hereof. In the event any provision of the IMFL which is specifically referred to
herein may be repealed, Mortgagee shall have the benefit of such provision as most recently
existing prior to such repeal, as though the same were incorporated herein by express
reference;

v. If Mortgagee shall incur or expend any sums, including a reasonable attorney fee,
whether or not in connection with any action or proceeding to sustain the lien of this
Mortgage or its priority, enforce the Mortgage or to protect or enforce any of Mortgagee’s
right’s hereunder, including any sums to preserve, maintain, repair, restore or rebuild the
improvements upon the Premises, or to recover any indebtedness secured hereby, or on account
of its being a Lender or its making the loans evidenced by the Loan Agreement, all such sums
shall become immediately due and payable by Mortgagor with interest thereon at the Default
Rate. All such sums shall be secured by this Mortgage and be a lien on the Premises prior
to any right, title, interest, or claim, in, to, or upon, the Premises attaching or accruing
subsequent to the lien of this Mortgage. Without limitation of the generality of the
foregoing, in any suit to foreclose the lien hereof, there shall be allowed and included as
additional Indebtedness Hereby Secured in the decree for sale all costs and expenses which
may be paid or incurred by or on behalf of Mortgagee or the Secured Parties for reasonable
attorney fees, appraisers’ fees, receivers’ costs and expenses, insurance, taxes, outlays
for documentary and expert evidence, costs for preservation of the Premises, stenographer’s
charges, publication cost and costs of

 

20

 

procuring all abstracts of title, title searches and examinations, guarantee policies, Certificates of Title issued by the Registrar of
Titles (Torrens Certificates), and similar data and assurances with respect to title as
Mortgagee or the Lenders as holders of the Loans may deem to be reasonably necessary either
to prosecute such suit or to evidence to bidders at any sale which may be had pursuant to
such decree, the true condition of the title to or the value of the Premises or for any
other reasonable purpose. The amount of any such costs and expenses which may be paid or
incurred after the decree for sale is entered may be estimated and the amount of such
estimate may be allowed and included as additional indebtedness secured hereby in the decree
for sale.

Additionally, all advances, disbursements and expenditures made or incurred by
Mortgagee before and during a foreclosure, and before and after judgment of foreclosure, and
at any time prior to sale and, where applicable, after sale, and during the pendency of any
related proceedings, for the following purposes, in addition to those otherwise authorized
by the Mortgage, or the Loan Agreement or by the IMFL (collectively “Protective Advances”),
shall have the benefit of all applicable provisions of the IMFL, including those provisions
of the IMFL herein below referred to, to the extent permitted by law:

1. all advances by Mortgagee in accordance with the terms of the Mortgage or
the Loan Agreement to: (i) preserve, maintain, repair, restore or rebuild the
improvements upon the Premises; (ii) preserve the lien of the Mortgage or the
priority thereof; or (iii) enforce the Mortgage, as referred to in Subsection (b)
(5) of Section 5/15-1302 of the IMFL;

2. payments by Mortgagee of (i) principal, interest or other obligations in
accordance with the terms of any senior mortgage or other prior lien or
encumbrances; (ii) real estate taxes and assessments, general and special, and all
other taxes and assessments of any kind or nature whatsoever which are assessed or
imposed upon the Premises or any part thereof; (iii) other obligations authorized by
the Mortgage; or (iv) with court approval, any other amounts in connection with
other liens, encumbrances or interests reasonably necessary to preserve the status
of title, as referred to in Section 5/15-1505 of the IMFL;

3. advances by Mortgagee in settlement or compromise of any claims asserted by
claimants under senior mortgages or any other prior liens;

4. attorneys’ fees and other costs incurred: (i) in connection with the
foreclosure of the Mortgage as referred to in Section 5/15-1504(d)(2) and 5/15-1510
of the IMFL; (ii) in connection with any action, suit or proceeding brought by or
against Mortgagee for the enforcement of the Mortgage or arising from the interest
of Mortgagee hereunder; or (iii) in preparation for or in connection with the
commencement, prosecution or defense of any other action related to the Mortgage or
the Premises;

5. Mortgagee’s fees and costs, including attorneys’ fees, arising between the
entry of judgment of foreclosure and the confirmation hearings as referred to in
Section 5/15-1508 (b) (1) of the IMFL;

 

21

 

6. expenses deductible from proceeds of sale as referred to in Section
5/15-1512 (a) and (b) of the IMFL; and

7. expenses incurred and expenditures made by Mortgagee for any one or more of
the following: (i) if the Premises or any portion thereof constitutes one or more
units under a condominium declaration, assessments imposed upon the unit owner
thereof; (ii) if Mortgagor’s interest in the Premises is a leasehold estate under a
lease or sublease, rentals or other payments required to be made by the lessee under
the terms of the lease or sublease; (iii) premiums for casualty and liability
insurance paid by Mortgagee whether or not Mortgagee or a receiver is in possession,
if reasonably required in reasonable amounts, and all renewals thereof, without
regard to the limitation to maintaining of existing insurance in effect at the time
any receiver or mortgagee takes possession of the Premises imposed by Section
5/15-1704 (c) (1) of the IMFL; (iv) repair or restoration of damage or destruction
in excess of available insurance proceeds or condemnation awards; (v) payments
deemed by Mortgagee to be required for the benefit of the Premises or required to be
made by the owner of the Premises under any grant or declaration of easement,
easement agreement, agreement with any adjoining land owners or instruments creating
covenants or restrictions for the benefit of or affecting the Premises; (vi) shared
or common expense assessments payable to any association or corporation in which the
owner of the Premises is a member in any way affecting the Premises; (vii) if the
loan secured hereby is a construction loan, costs incurred by Mortgagee for
demolition, preparation for and completion of construction, as may be authorized by
the applicable commitment, loan agreement or other agreement; (viii) payments
required to be paid by Mortgagor or Mortgagee pursuant to any lease or other
agreement for occupancy of the Premises; (ix) operating deficits incurred by
Mortgagee in possession or reimbursed by Mortgagee to any receiver; (x) all costs
and fees incurred to obtain an environmental assessment relating to the Premises;
and (xi) if the Mortgage is insured, payment of FHA or private mortgage insurance
required to keep such insurance in force;

b. Waiver of Statutory Rights. Mortgagor acknowledges that the transaction of which
this Mortgage is a part is a transaction which does not include either agricultural real estate (as
defined in Section 15-1201 of the IMFL), or residential real estate (as defined in Section 15-1219
of the IMFL), and to the full extent permitted by law, voluntarily and knowingly waives Mortgagor’s
rights AND THE RIGHTS OF EACH AND EVERY PERSON ACQUIRING AN INTEREST IN OR TITLE TO THE PROPERTY OF
ANY NATURE WHATSOEVER SUBSEQUENT TO THE DATE OF THIS MORTGAGE to reinstatement and redemption as
allowed under Section 15-1601(b) of the IMFL, and to the full extent permitted by law, the benefits
of all present and future valuation, appraisement, homestead, exemption, stay, redemption and
moratorium laws under any state or federal law.

c. Maximum Amount Secured. Mortgagor and Mortgagee intend that this Mortgage shall
secure not only sums advanced as of the date hereof but also all advances provided for in the Loan
Documents; provided however that the maximum amount secured by this Mortgage shall in no event
exceed $125,000,000.00.

d. Maturity Date. The maturity date of the Loans is June 10, 2016.

 

22

 

e. Mortgagee-in-Possession. In addition to any provision of this Mortgage authorizing
Mortgagee to take or be placed in possession of the Premises, or for the appointment of a receiver,
Mortgagee shall have the right, in accordance with Sections 5/15-1701 and 5/15-1702 of the IMFL, to
be placed in possession of the Premises or at its request to have a receiver appointed, and such
receiver, or Mortgagee, if and when placed in possession, shall have, in addition to any other
powers provided in this Mortgage, all powers, immunities and duties as provided for in Sections
2/15-1701 and 5/15-1703 of the IMFL).

f. Collateral Protection Act. Pursuant to the terms of the Collateral Protection Act
(815 ILCS 180/1 et seq.), Mortgagor is hereby notified that unless Mortgagor provides Mortgagee
with evidence of the insurance coverage required by this Mortgage, Mortgagee may purchase insurance
at Mortgagee’s expense to protect Mortgagor’s interests in the Premises, which insurance may, but
need not, protect the interests of Mortgagor. The coverage purchased by Mortgagee may not pay any
claim made by Mortgagor or any claim made against Mortgagor in connection with the Premises.
Mortgagor may later cancel any insurance purchased by Mortgagee, but only after providing Mortgagee
with evidence that Mortgagor has obtained the insurance as required hereunder. If Mortgagee
purchases insurance, Mortgagor will be responsible for the costs of such insurance, including
interest and any other charges imposed in connection with the placement of the insurance, until the
effective date of the cancellation or expiration of the insurance. The costs of the insurance may
be added to the total obligation secured hereby. The costs of such insurance may be greater than
the cost of insurance Mortgagor may be able to obtain for itself.

g. Business Loan. The proceeds of the Loans secured hereby referred to herein shall
be used solely for business purposes and in furtherance of the regular business affairs of
Mortgagor, and the entire principal obligation secured by this Mortgage constitutes (i) a “business
loan” as that term is defined in, and for all purposes of, 815 ILCS 205/4 (1) (c), and (ii) a “loan
secured by a mortgage on real estate” within the purview and operation of 815 ILCS 205/4(1)(l).

h. Interest. The Loans bear interest at variable rates determined in accordance with
the terms and conditions of the Loan Agreement.

i. Release. These presents are upon the express condition that, if Mortgagor shall
pay to Mortgagee in cash the full amount of the Indebtedness Hereby Secured (other than contingent
indemnification obligations in respect of which no claim has been asserted by the person or entity
entitled thereto) at the time and in the manner provided in the Loan Agreement and this Mortgage,
the lien hereof shall be released.

j. Governing Law. ALL MATTERS RELATING TO THE CREATION, PERFECTION AND ENFORCEMENT OF
THE LIEN OF THIS MORTGAGE SHALL BE CONSTRUED UNDER AND IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ILLINOIS, AND ALL OTHER MATTERS SHALL BE CONSTRUED UNDER AND IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

 

23

 

IN WITNESS WHEREOF, Mortgagor has caused these presents to be executed and delivered on June

 9, 2011.

	 	 	 	 	 	 	 
	 	 	RENTECH ENERGY MIDWEST CORPORATION,

a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By: 	 	/s/ John A. Ambrose
 
	 	 
	 

	 	Its:	 	President
 
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attest:	 	/s/ Brian Houtakker
 
	 	 
	 

	 	Its:	 	Manager—Internal Audit
& Spec. Projects 
	 	 

	 	 	 	 	 	 	 
	STATE OF ILLINOIS

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss:
	COUNTY OF JO DAVIESS 

	 	 	)	 	 	 

On
 June 9, 2011 
before me, Jon D. Davis,
Notary Public, personally appeared
 John A. Ambrose, who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of Illinois that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Jon D. Davis                                        

Notary Public

[Seal]

 

24

 

EXHIBIT A

REAL ESTATE

PARCEL 1:

Lot 2 in Block 1, Lot 2 in Block 2, Lot 1 in Block 3, Lot 1 in Block 4, all of Block 5 and Lot 1 in
Block 6 of Apple River Chemical Company Subdivision, as located in Section 12, Township 28 North,
Range 2 West of the Fourth Principal Meridian, Menominee Township, Jo Daviess County, Illinois;
according to the Plat thereof recorded December 8, 1970 in Book 3 of Plats, pages 82 and 83;
EXCEPTING THEREFROM: That portion of Lot 1 in Block 4 of said Apple River Chemical Company
Subdivision, described as follows: Beginning at the Southeast corner of said Lot 1; thence South 89
degrees 16 minutes 30 seconds West, 313.62 feet along the Southerly line of said Lot 1 to the
beginning of a 2894.93 foot radius non-tangent chord definition curve concave Southwesterly; thence
Northwesterly 28.29 feet along said curve with a chord bearing North 58 degrees 9 minutes 46
seconds West, 28.29 feet; thence North 58 degrees 26 minutes 33 seconds West, 467.62 feet; thence
North 12 degrees 40 minutes 11 seconds West, 447.55 feet; thence North 2 degrees 27 minutes 1
second East, 222.20 feet; thence North 12 degrees 3 minutes 9 seconds East, 189.17 feet; thence
North 23 degrees 47 minutes 5 seconds East, 234.04 feet to the Northerly line of said Lot 1; thence
North 89 degrees 28 minutes 54 seconds East, 682.04 feet along said Northerly line to the Northeast
corner of said Lot 1; thence South 0 degrees 23 minutes 4 seconds East, 1319.70 feet to the point
of beginning.

TOGETHER WITH:

The Northeast Quarter of the Southeast Quarter of Section 12, Township 28 North, Range 2 West of
the Fourth Principal Meridian, Menominee Township, Jo Daviess County, Illinois; EXCEPTING
THEREFROM: That portion of the Northeast Quarter of the Southeast Quarter of said Section 12,
described as follows: Beginning at the Northeast corner of said Northeast Quarter of the Southeast
Quarter; thence South 89 degrees 34 minutes 27 seconds West, 682.03 feet along the Northerly line
of said Northeast Quarter of the Southeast Quarter; thence South 0 degrees 5 minutes 36 seconds
West, 1324.50 feet, parallel with the Easterly line of said Northeast Quarter of the Southeast
Quarter to the Southerly line of said Northeast Quarter of the Southeast Quarter; thence North 89
degrees 28 minutes 54 seconds East, 682.04 feet along said Southerly line to the Southeast corner
of said Northeast Quarter of the Southeast Quarter; thence North 0 degrees 5 minutes 36 seconds
East, 1323.39 feet to the point of beginning.

 

A-1

 

PARCEL 2:

Easement for ingress and egress and water main usage and maintenance to water well for benefit of
Parcel 1, as created by Water Well Road and Necessary Utilities Easement dated November 16, 1970
and recorded November 23, 1970 as Document No. 121914 in Miscellaneous Record Book 5, page 661, in,
under and across the following described property:

Commencing at the Southeast corner of Section 2, Township 28 North, Range 2 West of the Fourth
Principal Meridian, Menominee Township, Jo Daviess County, Illinois; thence North 89 degrees 22
minutes 57 seconds West, 896.16 feet along the Southerly line of the Southeast Quarter of said
Section 2 to the centerline of the west bound main track of the Canadian National/Illinois Central Railroad; thence North 33 degrees 12 minutes 14 seconds West, 865.13 feet along said centerline;
thence North 89 degrees 49 minutes 47 seconds East, 59.64 feet to the Northeasterly right of way
line of said Railroad, and the point of beginning of the centerline of a continuous 160 foot wide
easement located between said right of way line and the Southerly line of Lot 2 of Block 6 of Apple
River Chemical Company Subdivision in Section 12, Township 28 North, Range 2 West of the Fourth
Principal Meridian, Menominee Township, Jo Daviess County, Illinois; thence continuing North 89
degrees 49 minutes 47 seconds East, 67.32 feet; thence South 33 degrees 16 minutes 37 seconds East,
479.72 feet; thence South 61 degrees 05 minutes 07 seconds East, 434.23 feet; thence South 53
degrees 58 minutes 07 seconds East, 126.41 feet; thence South 35 degrees 32 minutes 07 seconds
East, 216.88 feet; thence South 24 degrees 32 minutes 37 seconds East, 50.00 feet; thence South 36
degrees 50 minutes 37 East, 50.00 feet; thence South 46 degrees 20 minutes 07 seconds East, 50.00
feet; thence South 47 degrees 21 minutes 37 seconds East, 100.00 feet; thence South 46 degrees 49
minutes 37 seconds East, 50.00 feet; thence South 44 degrees 00 minutes 37 seconds East, 50.00
feet; thence South 38 degrees 02 minutes 37 seconds East, 50.00 feet; thence South 33 degrees 19
minutes 07 seconds East, 50.00 feet; thence South 39 degrees 05 minutes 37 seconds East, 50.00
feet; thence South 49 degrees 03 minutes 37 seconds East, 50.00 feet; thence South 56 degrees 58
minutes 37 seconds East, 50.00 feet; thence South 58 degrees 26 minutes 37 seconds East, 50.00
feet; thence South 56 degrees 34 minutes 07 seconds East, 50.00 feet; thence South 52 degrees 37
minutes 37 seconds East, 50.00 feet; thence South 50 degrees 19 minutes 37 seconds East, 100.00
feet; thence South 53 degrees 04 minutes 59 seconds East, 102.22 feet to the point of termination
of said easement, being on the Southerly line of said Lot 2 of Block 6.

PARCEL 3:

Easement for ingress and egress for benefit of Parcel 1, as created by Roadway Easement dated
November 16, 1970 and recorded November 23, 1970 as Document No. 121917 in Miscellaneous Record
Book 5, page 674, over and across the following described property:

Commencing at the Northwest corner of Section 1, Township 28 North, Range 2 West of the Fourth
Principal Meridian Menominee Township, Jo Daviess County, Illinois; thence South 00 degrees 16
minutes 36 seconds West, 419.63 feet along the Westerly line of the Northwest Quarter of said
Section 1, to the centerline of the Eastbound lane of U.S. Highway 20; thence North 75 degrees 05
minutes 57 seconds East, 1024.74 feet along said centerline; thence South 03 degrees 39 minutes 23
seconds East, 43.58 feet to a point on the Southerly right of way line of said U.S. Highway 20,
said line also being the Northerly line of Lot 1 of “Clarence Ricke Farm” in Section 1, Township 28
North, Range 2 West of the Fourth Principal Meridian, Menominee Township, Jo Daviess County,
Illinois, said point being the point of beginning of the centerline of a continuous 100 feet wide
easement for roadway purposes; thence continuing South 03 degrees 39 minutes 23 seconds East,
138.68 feet to the beginning of 238.73 foot radius tangent curve concave Easterly; thence Southerly
82.33 feet along said curve with a chord bearing South 13 degrees 32 minutes 12 seconds East, 81.93
feet; thence South 23 degrees 25 minutes 00 seconds East, 6.52 feet along tangent to the beginning
of a 238.73 foot radius tangent curve concave Westerly; thence Southerly 85.83 feet along said
curve with a chord bearing South 13 degrees 07 minutes 03 seconds East, 85.36 feet; thence South 02
degrees 49 minutes 06 seconds East, 917.02 feet to the beginning of a 1909.86 foot radius tangent
curve concave Easterly; thence Southerly 637.34 feet along said curve with a chord bearing South 12
degrees 22 minutes 42 seconds East, 634.38 feet; thence South 21 degrees 56 minutes 18 seconds East, 782.26 feet along tangent to the beginning of a 1909.86 foot radius tangent curve concave
Westerly; thence Southerly 1006.94 feet along said curve with a chord bearing South 06 degrees 50
minutes 04 seconds East, 995.31 feet; thence South 08 degrees 16 minutes 11 seconds West, 1085.49
feet along tangent to the beginning of a 1909.86 foot radius tangent curve concave Easterly; thence
Southerly 1336.11 feet along said curve with a chord bearing South 11 degrees 46 minutes 19 seconds
East, 1309.03 feet to the point of termination of said easement being on the Southerly line of Lot
2 of Block 6 of Apple River Chemical Company Subdivision in Section 12, Township 28 North, Range 2
West of the Fourth Principal Meridian, Menominee Township, Jo Daviess County, Illinois.

 

A-2

 

PARCEL 4:

Swale Easement for the benefit of Parcel 1, for maintaining natural drainage from the outfall of
the settling ponds of the Little Menominee River granted by Apple River Chemical Company to St.
Paul Ammonia Products, Inc., dated November 16, 1970 and recorded November 23, 1970 in Book 5 of
Miscellaneous Records, page 666, upon, along and across the following property in Jo Daviess
County, Illinois: Fifty feet on either side of the centerline of the existing swale and watershed
which runs in a Southeasterly direction through the Southwest Quarter of Section 7 and the North
Half of Section 18, Township 28 North, Range 1 West of the Fourth Principal Meridian to its
junction with the Little Menominee River, and being more particularly described as follows:

Commencing at the Southwest corner of the Southwest Quarter of Section 7, Township 28 North, Range
1 West of the Fourth Principal Meridian, Jo Daviess County, Illinois; thence North 00 degrees 55
minutes 05 seconds East, 231.63 feet along the Westerly line of the Southwest Quarter of said
Section 7 to the point of beginning; thence continuing North 00 degrees 55 minutes 05 seconds East,
136.74 feet along said Westerly line; thence South 47 degrees 55 minutes 05 seconds East, 704.99
feet; thence South 28 degrees 55 minutes 05 seconds East, 536.11 feet; thence South 76 degrees 55
minutes 05 seconds East, 397.43 feet; thence South 33 degrees 55 minutes 05 seconds East, 350.00
feet; thence South 76 degrees 55 minutes 05 seconds East, 464.03 feet; thence South 08 degrees 55
minutes 05 seconds East, 314.53 feet; thence South 50 degrees 55 minutes 05 seconds East, 222.76
feet; thence South 29 degrees 04 minutes 55 seconds West, 148.49 feet; thence South 52 degrees 55
minutes 05 seconds East, 428.82 feet; thence North 69 degrees 04 minutes 55 seconds East, 151.15
feet; thence South 50 degrees 55 minutes 05 seconds East, 120.40 feet to the Easterly line of the
Northwest Fractional Quarter of Section 18, Township 28 North, Range 1 West of the Fourth Principal
Meriden, Jo Daviess County, Illinois; thence continuing South 50 degrees 55 minutes 05 seconds
East, 408.47 feet; thence South 39 degrees 04 minutes 55 seconds West, 100.00 feet; thence North 50
degrees 55 minutes 05 seconds West, 328.70 feet to said Easterly line of the Northwest Fractional
Quarter of Section 18; thence continuing North 50 degrees 55 minutes 05 seconds West, 142.43 feet;
thence South 69 degrees 04 minutes 55 seconds West, 148.85 feet; thence North 52 degrees 55 minutes
05 seconds West, 571.18 feet; thence North 29 degrees 04 minutes 55 seconds East, 151.51 feet;
thence North 50 degrees 55 minutes 05 seconds West, 177.24 feet; thence North 08 degrees 55 minutes
05 seconds West, 285.47 feet; thence North 76 degrees 55 minutes 05 seconds West, 435.97 feet;
thence North 33 degrees 55 minutes 05 seconds West, 350.00 feet; thence North 76 degrees 55 minutes
05 seconds West, 402.57 feet; thence North 28 degrees 55 minutes 05 seconds West, 563.89 feet;
thence North 47 degrees 55 minutes 05 seconds West, 595.01 feet to the point of beginning.

 

A-3

 

PARCEL 5: Track 1 Main Spur

An easement for the benefit of Parcel 1 as granted by Easement Agreement dated January 15, 2007 and
recorded January 17, 2007 as Document No. 332913 over and across the following described property:

A continuous 60.00 foot wide tract of land in the North Half of Section 13, Township 28 North,
Range 2 West, and in the Northwest Fractional Quarter of Section 18, Township 28 North, Range 1
West, of the Fourth Principal Meridian, Menominee Township, Jo Daviess County, Illinois, described
as follows: Commencing at the Northeast corner of said North Half of Section 13; thence South 89
degrees 16 minutes 30 seconds West, 313.62 feet along the Northerly line of said North Half to the
point of beginning and the beginning of a 2894.93 foot radius non-tangent chord definition curve
concave Southwesterly; thence Southeasterly 691.32 feet along said curve with a chord bearing South
51 degrees 2 minutes 29 seconds East, 689.68 feet; thence South 44 degrees 12 minutes 1 second
East, 367.31 feet along tangent to the beginning of a 1880.08 foot radius tangent chord definition
curve concave Northeasterly; thence Southeasterly 1207.46 feet along said curve with a chord
bearing South 62 degrees 35 minutes 57 seconds East, 1186.81 feet; thence South 80 degrees 59
minutes 52 seconds East, 437.51 feet along tangent to the beginning of a 592.47 foot radius tangent
chord definition curve concave Southwesterly; thence Southeasterly 930.02 feet along said curve
with a chord bearing South 36 degrees 1 minute 41 seconds East, 837.43 feet; thence South 8 degrees
56 minutes 31 seconds West, 24.42 feet along tangent to the beginning of a 573.66 foot radius
tangent chord definition curve concave Westerly; thence Southwesterly 234.44 feet along said curve
with a chord bearing South 20 degrees 38 minutes 58 seconds West, 232.81 feet to the beginning of a
449.06 foot radius chord definition compound curve concave Northwesterly; thence Southwesterly
266.90 feet along said curve with a chord bearing South 49 degrees 23 minutes 2 seconds West,
262.99 feet to the Northeasterly right of way line of the Canadian National/Illinois Central
Railroad; thence North 71 degrees 4 minutes 1 second West, 98.98 feet along said right of way line,
non-tangent to the last described curve, to the beginning of a 389.06 foot radius non-tangent chord
definition curve concave Northwesterly; thence Northeasterly 304.63 feet along said curve with a
chord bearing North 54 degrees 47 minutes 16 seconds East, 296.91 feet to the beginning of a 513.66
foot radius chord definition compound curve concave Westerly; thence Northeasterly 209.92 feet
along said curve with a chord bearing North 20 degrees 38 minutes 58 seconds East, 208.45 feet;
thence North 8 degrees 56 minutes 31 seconds East, 24.42 feet along tangent to the beginning of
532.47 foot radius tangent chord definition curve concave Southwesterly; thence Northwesterly
835.84 feet along said curve with a chord bearing North 36 degrees 1 minute 41 seconds West, 752.62
feet; thence North 80 degrees 59 minutes 52 seconds West, 437.51 feet along tangent to the
beginning of a 1940.08 foot radius tangent chord definition curve concave Northeasterly; thence
Northwesterly 1245.99 feet along said curve with a chord bearing North 62 degrees 35 minutes 57
seconds West, 1224.69 feet; thence North 44 degrees 12 minutes 1 second West, 367.31 feet along
tangent to the beginning of a 2834.93 foot radius tangent chord definition curve concave
Southwesterly; thence Northwesterly 704.69 feet along said curve with a chord bearing North 51
degrees 19 minutes 17 seconds West, 702.88 feet; thence North 58 degrees 26 minutes 33 seconds
West, 66.47 feet along tangent to said Northerly line of the North Half of Section 13; thence North
89 degrees 16 minutes 30 seconds East, 112.08 feet to the point of beginning.

 

A-4

 

TOGETHER WITH:

A tract of land in Lot 2 in Block 4 of Apple River Chemical Company Subdivision, as located in
Section 12, Township 28 North, Range 2 West of the Fourth Principal Meridian, Menominee Township,
Jo Daviess County, Illinois; according to the Plat thereof recorded December 8, 1970 in Book 3 of
Plats, pages 82 and 83; described as follows: Commencing at the Southeast corner of said Block 4,
being also the Southeast corner of said Section 12; thence South 89 degrees 16 minutes 30 seconds
West, 322.90 feet along the Southerly line of said Block 4 to the point of beginning, being the
Southeast corner of said Lot 2; thence continuing South 89 degrees 16 minutes 30 seconds West,
102.80 feet along the Southerly line of said Lot 2; thence North 58 degrees 26 minutes 33 seconds
West, 1400.86 feet to the beginning of a 2322.01 foot radius tangent chord definition curve concave
Northeasterly; thence Northwesterly 805.51 feet along said curve with a chord bearing North 48
degrees 30 minutes 16 seconds West, 801.48 feet; thence North 38 degrees 33 minutes 59 seconds
West, 56.13 feet along tangent to the Northerly line of said Lot 2; thence North 89 degrees 41
minutes 22 seconds East, 70.87 feet along said Northerly line to the Northwest corner of Lot 1 of
said Block 4; thence South 39 degrees 27 minutes 48 seconds East, 95.31 feet along the
Southwesterly line of said Lot 1; thence South 41 degrees 57 minutes 29 seconds East, 100.13 feet
along said Southwesterly line; thence South 44 degrees 20 minutes 19 seconds East, 99.94 feet along
said Southwesterly line; thence South 46 degrees 54 minutes 42 seconds East, 100.00 feet along said
Southwesterly line; thence South 49 degrees 22 minutes 31 seconds East, 100.00 feet along said
Southwesterly line; thence South 51 degrees 57 minutes 27 seconds East, 99.91 feet along said
Southwesterly line; thence South 54 degrees 29 minutes 53 seconds East, 99.89 feet along said
Southwesterly line; thence South 57 degrees 05 minutes 54 seconds East, 99.99 feet along said
Southwesterly line; thence South 58 degrees 26 minutes 47 seconds East, 1491.14 feet along said
Southwesterly line to the point of beginning.

 

A-5

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