Document:

exv10w1

 

Exhibit 10.1

Renegy Holdings Inc.

Robert M. Worsley

Christi M. Worsley

Robert M. Worsley and Christi M. Worsley

      Revocable Trust

3418 N. Val Vista Drive

Mesa, Arizona 85213

Dear Bob and Christi,

     The purpose of this letter is to outline our understanding regarding your commitment and
obligations under your agreements with Renegy Holdings Inc. ( the “Company”) relating to the
payment of Project Costs ( as defined in the Credit Agreement dated as of September 1, 2006, as
amended, by and among Renegy, LLC, Renegy Trucking, LLC, Snowflake White Mountain Power, LLC,
CoBank, ACB, as Administrative Agent and Collateral Agent, the LC Issuer as defined therein, and
the Lenders party thereto (the “Credit Agreement”), and as further defined in the Overrun Guaranty
dated as of October 1, 2007 by and between you and the Company (the “Overrun Guaranty”)) and the
provision of working capital to the Company. As you know, the Special Committee of the Board of
Directors (the “Committee”) and the independent members of the Board of Directors have spent a
substantial amount of time on the issues related to the Project Costs.

     After a great deal of deliberation by the Special Committee and with input from an outside
expert, the Company and the Special Committee have agreed to the following and would like to
confirm your acceptance of these provisions:

     1. Notwithstanding the definition of Project Costs in the Credit Agreement, the Contribution
and Merger Agreement dated as of May 8, 2007, as amended, by and among you, the Company, and
certain affiliated parties (the “Contribution and Merger Agreement”), and the Overrun Guaranty,
the Committee and the Company have agreed (subject to your compliance with the provisions hereof)
that the Company will pay $6.0 million of capital costs incurred beyond the budgeted Project Costs
of $67,310,572 and the $2.0 million the Company agreed to pay under the Overrun Guaranty because
the expenditure of the $6.0 million in additional capital costs is expected to enhance the biomass
plant being developed by a subsidiary of the Company and further increase its efficiency,
reliability and long-term operating performance so as to decrease the need for costly future
maintenance. The Company has no obligation to pay for any Project Costs beyond the $2.0 million
agreed upon in the Overrun Guaranty and the $6.0 million described in this paragraph.

 

 

     2. For the avoidance of doubt, if you default on the terms of this Agreement, your
obligations under this Agreement shall not be subject to either the Basket or the Cap in the
Contribution and Merger Agreement. Consistent with the terms of the Overrun Guaranty, any claims
the Company may make for payment under the Overrun Guaranty or for breach of this Agreement or any
obligation to make payment contained herein shall be satisfied by you solely in cash.

     3. On or before March 5, 2008, you will deposit a minimum of $5.0 million in the Company’s
general operating account at Comerica Bank for the purpose of ensuring timely payment of Project
Costs and the Company shall have the right to draw upon the balance in the account to pay Project
Costs in excess of those the Company has agreed to pay in paragraph 1 above. To the extent that
you secure a personal line of credit to fund the $5.0 million potential obligation for Project
Costs, the Company shall pay you interest on the $5.0 million deposited in the Company’s account
until such amount is used for purposes of paying Project Costs in excess of those that the Company
has agreed to pay in paragraph 1 above, calculated at the same rate of interest as you are required
to pay under such personal line of credit and assuming that none of such amount is spent to pay
such Project Costs until all amounts that the Company has agreed to pay under Paragraph 1 have
first been spent to pay such Project Costs. To the extent that you are unable to make the deposit
of the $ 5.0 million required hereby on or before March 5, 2008, you agree to take all actions
requested by the Company to pledge to the Company as security for this obligation 1.0 million
shares of your Renegy Holdings Inc. common stock. The Company agrees to subordinate or
release such security interest in favor of the lender under such personal line of credit concurrent
with the funding of the $5.0 million. The Special Committee agrees that it will take necessary
actions to waive the restrictions on pledging of your shares set forth in the Contribution and
Merger Agreement so that you can meet your obligations under this agreement. By March 5, 2008,
and by the 5th day of each month thereafter, or the next business day if the
5th is not a business day, the Company will submit to you a Work Breakdown Schedule
(WBS). You will fully cooperate with the officers of the Company to complete the WBS in accordance
with such deadlines. On or before the 10th day of each month, you will fund the
Company’s general operating account with the additional dollar amount, if any, necessary as
reflected in the immediately preceding WBS to ensure funding of aggregate estimated Project Costs
in excess of the originally budgeted amount of $67,310,572, less the $8.0 million the Company has
agreed to pay in accordance with Paragraph 1 hereof and the $5.0 million you will deposit in
accordance with this Paragraph 3.

     4. On the date hereof, you will establish a line of credit in favor of the Company that will
provide for funds to be immediately available to the Company on or before March 31, 2008 in the
amount of $6.0 million. In no event shall you be entitled to enforce any of your rights to collect
moneys under the line of credit at any time that you are in default in your obligations to provide
funding hereunder, under the Overrun Guaranty (as modified hereby), or under the line of credit.
The terms of the line of credit shall be separately documented and shall include terms and
conditions that are customary for transactions of this type. In the event that you are unable to
establish by March 5, 2008 for the Company the line of credit provided for in paragraph 5 below,
you agree that

 

 

you will use your best efforts to grant
the Company a security interest in your personal assets to secure your obligations to provide this
$6.0 million line of credit. The Company agrees to
release such security interest concurrent with the funding of the
$6.0 million.

     5. You agree to personally guarantee a line of credit for an amount of $6 million to be
established for the Company at a bank or other financial institution reasonably acceptable to the
Company that shall be on commercially reasonable terms that are acceptable to the Company in its
reasonable discretion. Upon the establishment of the line of credit or at such time as the Company
secures alternative debt or equity financing in an amount of a minimum of $6.0 million, your
obligation to provide a line of credit to the Company under paragraph 4 will be released under the
terms of the separate documentation of that line of credit.

     6. You hereby confirm that you have sufficient net worth and will use your commercially
reasonable efforts to make your personal assets sufficiently liquid to pay for the Project Costs in
excess of those the Company has agreed to pay in paragraph 1 above, to provide the line of credit
in favor of the Company as provided in paragraph 4 above, and to support the personal guarantee
described in paragraph 5 above. You further agree that subject to force majeure or market
conditions beyond your control, you will maintain such net worth and sufficient liquidity during
all times required hereunder.

     7. You agree that this Agreement is personal to you and that it is not assignable without the
written consent of the Company. The Company shall have the right to assign the rights, benefits
and obligations of this agreement to its successors and assigns.

     8. You agree that irreparable damage would occur in the event that any of the provisions of
this Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that, without limiting the availability of any other remedies,
each of the parties to this agreement shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement
exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the
State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a
particular matter, any state or federal court within the State of Delaware).

     Once agreed and accepted by you, this letter agreement shall be an enforceable amendment to
the Contribution and Merger Agreement and the Overrun Guaranty and shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns. You agree
that there is sufficient consideration for this agreement. Except as specified in this letter
agreement, all terms and conditions of the Contribution and Merger Agreement and the Overrun
Guaranty shall remain in full force and effect. Unless otherwise defined herein, all capitalized
terms in this letter agreement shall have the same meanings as set forth in the Contribution and
Merger Agreement and the Overrun Guaranty.

 

 

	 	 	 	 	 
	 	Very truly yours,

Ricardo Levy, Chair of the Special

Committee of the Board of Directors

Renegy Holdings, Inc.

 	 
	 	/s/ Robert Zack
 	 
	 
	 	Robert Zack, Chief Financial Officer	 
	 	Renegy Holdings, Inc. 	 
	 

Accepted and agreed as of this

12th day of February, 2008

	 	 	 
	/s/ Robert M. Worsley
 

Robert M. Worsley

	 	 
	 
	 	 
	/s/ Christie M. Worsley
 

Christie M. Worsley

	 	 

Robert M. Worsley and Christi M. Worsley Revocable Trust

	 	 	 	 	 
	/s/ Robert M. Worsley
 

	 	/s/ Christie M. Worsley
 

	 	 
	Robert M. Worsley, Trustee

	 	Christi M. Worsley, Trusteeexv10w2

 

Exhibit 10.2

REVOLVING CREDIT AGREEMENT

     THIS REVOLVING CREDIT AGREEMENT (this “Agreement”) is made as of February 12, 2008, by
and among RENEGY HOLDINGS, INC., a Delaware corporation (“Borrower”), ROBERT M. WORSLEY, an
Arizona resident, CHRISTI M. WORSLEY, an Arizona resident and the Robert M. Worsley and Christi M.
Worsley Revocable Trust (together with Christi M. Worsley and Robert M. Worsley, “Lender”).

     Borrower and Lender agree as follows:

     1. The Revolving Credit. Lender agrees, subject to the terms and conditions hereof,
to lend to Borrower from time to time from the Initial Draw Date (as defined in Section 9(a) until
the Termination Date (as defined in Section 11) (the “Commitment Period”), such sums (each
an “Advance” and collectively, the “Advances”) not to exceed $6,000,000 in the
aggregate at any one time outstanding (the “Credit”) as Borrower may request from time to
time. The Credit is subject to the terms and conditions of this Agreement and the Revolving Credit
Note (the “Note”), which, together with this Agreement, evidences the Credit. The Note
shall be in the form attached hereto as Exhibit A. Proceeds of the Credit are to be used
for general corporate purposes of Borrower, including, without limitation, expenses related to the
biomass power plant under construction in Snowflake, Arizona.

     2. Reduction of Credit. Borrower shall have the right, upon at least one (1) Business
Day’s (as defined in Section 5), to terminate in whole or reduce in part the unused portion of the
Credit; provided that no reduction shall be permitted if, after giving effect thereto, and to any
prepayment made therewith, the outstanding and unpaid principal amount of the Advances shall exceed
the Credit. The Credit once reduced or terminated may not be reinstated.

     3. Conditions to all Loans. The obligation of Lender to make any Advance is subject
to its satisfaction of the following conditions precedent:

          (a) Delivery of Note. Borrower shall have delivered the Note to Lender, properly
executed by Borrower.

          (b) No Event of Default. No Event of Default (as defined in Section 10) caused by
Borrower under this Agreement shall have occurred and be continuing on the date the Advance is to
be made or after giving effect to the Advance to be made.

          (c) Borrowing Certificate. Lender shall have received, at least three (3) Business
Days prior to the applicable Advance, a completed borrowing request from Borrower in the form
attached hereto as Exhibit B, signed by a duly authorized officer of Borrower (other than
Robert M. Worsley). Such borrowing certificate signed by Borrower shall constitute a request for
an Advance by Borrower and shall be binding on Borrower.

 

 

          (d) Representations and Warranties. The representations and warranties of Borrower
contained in this Agreement shall be true and correct in all material respects as of the date of
each Advance.

     4. Payment Schedule. From the Initial Draw Date through March 31, 2009, accrued and
unpaid interest shall accrue and not be due or payable until the Termination Date. From March 31,
2009 through the Termination Date, accrued and unpaid interest shall be due and payable in arrears
on the first (1st) Business Day of each month commencing on May 1, 2009. The entire
outstanding principal balance of the Advances made under the Credit then unpaid, together with all
accrued and unpaid interest and all other amounts payable hereunder shall be due and payable in
full on the Termination Date.

     5. Interest. The unpaid principal balance of the Advances made under the Credit from
day to day outstanding shall bear interest at a fluctuating rate of interest per annum equal to the
Prime Rate (as defined below). The “Prime Rate” shall mean a fluctuating rate of interest
per annum equal to the Prime Rate, as published by The Wall Street Journal as determined for each
Business Day at approximately 9:00 a.m. Arizona time two (2) Business Days prior to the date in
question. A “Business Day” is a day on which banks in Arizona are open for business.
Interest shall be computed for the actual number of days which have elapsed, on the basis of a
365-day year.

     6. Prepayments. Borrower may upon at one (1) Business Day’s notice to Lender, prepay
the Credit in whole or in part with accrued interest to the date of such prepayment on the amount
prepaid. Amounts repaid may be reborrowed.

     7. Method of Payment. Borrower shall make each payment under this Agreement and under
the Note not later than 5:00 p.m. Arizona time on the date when due in lawful money of the United
States to the bank account specified in writing to Borrower by Lender in immediately available
funds.

     8. Representations and Warranties. Borrower and Lender make the following
representations and warranties:

          (a) Good Standing and Authority of Borrower. Borrower is duly organized, validly
existing and in good standing under the laws of the State of Delaware. Borrower has corporate
power and authority to transact the business in which it is engaged; is duly licensed or qualified
and in good standing in each jurisdiction in which the conduct of business or ownership of property
requires such licensing or such qualification, except where the failure to be so licensed or
qualified could not reasonably be expected to have a material adverse effect on the business or
financial condition of Borrower; and has all necessary corporate power and authority to enter into
this Agreement and to execute, deliver and perform this Agreement, the Note and any other document
executed in connection with this Agreement to which it is a party, all of which have been duly
authorized by all proper and necessary corporate and shareholder action, as appropriate. This
Agreement and the Note constitute the legal, valid and binding obligations of Borrower, enforceable
in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect affecting the enforceability of
creditors’ rights generally, and subject to general principles of equity which

2

 

may limit the availability of remedies (regardless of whether enforceability is considered in
a proceeding in equity or at law). To the knowledge of Borrower, the execution and delivery of
this Agreement and the Note is not and will not be in violation of any agreement to which Borrower
is a party (except for any violation which would not have a material adverse effect on Borrower),
and no consent is required for Borrower to enter into or perform this Agreement or to execute and
deliver the Note (except for any consent which would not have a material adverse effect on
Borrower).

          (b) Authority of Lender. Lender has the authority to deliver and perform this
Agreement, the Note and any other document executed in connection with this Agreement to which it
is a party, all of which have been duly authorized by all proper and necessary action. This
Agreement and the Note constitute the legal, valid and binding obligations of Lender, enforceable
in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect affecting the enforceability of
creditors’ rights generally, and subject to general principles of equity which may limit the
availability of remedies (regardless of whether enforceability is considered in a proceeding in
equity or at law). To the knowledge of Lender, the execution and delivery of this Agreement and
the Note is not and will not be in violation of any agreement to which Lender is a party (except
for any violation which would not have a material adverse effect on Lender), and no consent is
required for Lender to enter into or perform this Agreement or to execute and deliver the Note
(except for any consent which would not have a material adverse effect on Lender).

     9. Covenants.

          (a) Lender Covenants.

               (i) On or before March 31, 2008 (the “Initial Draw Date”), Lender shall have a minimum
of $6,000,000 of the Credit available in cash for Advance(s) to Borrower.

               (ii) If, by March 5, 2008, Lender is unable to establish for Borrower a line of credit for
$6,000,000 with a bank or other financial institution reasonably acceptable to Borrower on
commercially reasonable terms that are acceptable to Borrower in its reasonable discretion, and
which shall be personally guaranteed by Lender, Lender agrees to use its best efforts to grant to
Borrower a security interest in Lender’s personal assets in order to secure Lender’s obligations to
make Advances, pursuant to this Agreement.

          (b) Borrower Covenants.

               (i) So long as any part of the Credit is unpaid, or there exists any commitment of Lender to
make Advances Borrower will maintain its corporate existence in good standing and remain or become
duly licensed or qualified and in good standing in each jurisdiction in which the conduct of its
business or ownership of its property requires such qualification or licensing except where the
failure to do so could not reasonably be expected to have a material adverse effect on the business
of Borrower.

               (ii) Borrower agrees to release any security interest in Lender’s assets granted in accordance
with Section 9(a)(ii), upon the full funding of the Advances.

3

 

     10. Events of Default. The occurrence of any one or more of the following events
shall constitute an event of default (each an “Event of Default”):

          (a) Nonpayment. Nonpayment when due, whether by acceleration or otherwise, of
principal of or interest on the Note or of any cost or expense provided for in this Agreement,
within five (5) Business Days after written notice thereof by Lender to Borrower.

          (b) Covenants. Default in the observance of covenants or agreements contained in this
Agreement or the Note, which is not remedied within thirty (30) days after written notice thereof
by Lender to Borrower; provided, however, such right to cure is not available to Lender for a
default of Lender’s covenants in Section 9(a), the default of which is immediate and without cure,
without the consent of Lender.

          (c) Financial Condition. The filing by or against Borrower of a request or petition
for liquidation, reorganization, arrangement adjustment of debts, adjudication as a bankrupt,
relief as a debtor or other relief under the bankruptcy, insolvency or similar laws of the United
States or any state or territory thereof or any foreign jurisdiction, now or hereafter in effect
(but in the case of a filing against Borrower, only if such filing is not vacated or bonded within
sixty (60) days of filing); the making of any general assignment by Borrower for the benefit of
creditors; the appointment of a receiver or trustee for Borrower or for any assets of any of them,
including, without limitation, the appointment of or taking possession by a “custodian,” as defined
in the Federal Bankruptcy Code; or the institution by or against Borrower of any other type of
insolvency proceeding (under the Federal Bankruptcy Code or otherwise) or of any formal or informal
proceeding for the dissolution or liquidation of, settlement of claims against or winding up of
affairs of Borrower (but in the case of any involuntary proceeding described in this paragraph
instituted against Borrower, only if such proceeding is not vacated or bonded within sixty (60)
days of such institution).

          (d) Representations. If any representation or warranty made by Borrower in this
Agreement proves to have been false in any material respect at the time as of which the facts
therein set forth were stated or certified.

     11. Termination. This Agreement shall terminate at such time and on such date (such
date being referred to as the “Termination Date”) that is the earliest of:

          (a) The date that Borrower obtains alternative debt or equity financing in the amount of
$6,000,000 or greater in the aggregate;

          (b) The date Lender terminates this Agreement in accordance with Section 12 as a result of an
Event of Default; and

          (c) March 31, 2010.

     12. Acceleration. Upon the termination of the Agreement pursuant to Section 11(a) and
(c), any obligation of Lender to make Advances shall cease immediately, and the Note shall become
immediately due and payable, without presentation, demand or notice of any kind to Borrower. Upon
the happening of any Event of Default, Lender may, upon notice to Borrower, terminate any
obligation of Lender to make Advances and declare the Note immediately due and

4

 

payable, without presentation, demand or further notice of any kind to Borrower.
Notwithstanding the foregoing, any acceleration herein shall be subject to any applicable grace
periods provided for in this Agreement.

     13. Miscellaneous.

          (a) Amendments and Waivers. No modification, rescission, waiver, release, or
amendment of any provision of this Agreement shall be made except by a written agreement signed by
a duly authorized officer of Borrower (other than Robert M. Worsley) and Lender and consented to by
the Special Committee of the Board of Directors of Borrower.

          (b) Delays and Omissions. No delay or omission by Lender in exercising any right or
remedy hereunder or with respect to the Credit shall operate as a waiver thereof or of any other
right or remedy, and no single or partial exercise thereof shall preclude any other or further
exercise thereof or the exercise of any other right or remedy. Lender may remedy any default by
Borrower hereunder or with respect to the Credit in any reasonable manner without waiving the
default remedied and without waiving any other prior or subsequent default by Borrower, and shall
be reimbursed for its expenses in so remedying such default. All rights and remedies of Lender
hereunder, under any other agreement and otherwise are cumulative; if any provision of this
Agreement is inconsistent with any provision of any other agreement between Lender and Borrower,
the provisions of this Agreement shall control.

          (c) Successors and Assigns. Borrower and Lender as used herein shall include the
legal representatives, successors, and assigns of those parties. Notwithstanding the foregoing,
neither party may assign or transfer this Agreement, the Note, or any rights under the Note or this
Agreement without the prior written consent of the other party.

          (d) Notices. All notices, requests, demands and other communications which are
required or may be given under this Agreement shall be in writing and shall be deemed to have been
duly given when received if personally delivered; when transmitted if transmitted by telecopy,
electronic or digital transmission method; the day after it is sent, if sent for next day delivery
to a domestic address by recognized overnight delivery service (e.g., Federal Express); and upon
receipt, if sent by certified or registered mail, return receipt requested. In each case notice
shall be sent to:

     If to Lender, addressed to:

Robert and Christi Worsley

3418 N. Val Vista Drive

Mesa, Arizona 85213

Fax: (480) 718-7977

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     If to Borrower, addressed to:

Renegy Holdings, Inc.

301 West Warner Road, Suite 132

Tempe, AZ 85284-2963

Attention: Chief Financial Officer

Fax: 480-556-5500

     with a copy to:

Squire, Sanders & Dempsey L.L.P.

Two Renaissance Square

40 North Central Avenue, Suite 2700

Phoenix, Arizona 85004

Attention: Christopher D. Johnson, Esq.

Fax: (602) 253-8129

or to such other place and with such other copies as either party may designate as to itself by
written notice to the others.

          (e) Generally Accepted Accounting Principles. Any financial calculation to be made in
connection with the provisions of this Agreement shall be in accordance with generally accepted
accounting principles consistently applied each year and from year to year.

          (f) Severability. The invalidity, illegality or unenforceability of any provision of
this Agreement shall not affect or impair the validity, legality or enforceability of the remainder
of this Agreement, and to this end, the provisions of this Agreement are declared to be severable.

          (g) Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the substantive laws (other than conflict laws) of the State of Delaware.

          (h) Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of,
or based on any matter arising out of or in connection with, this Agreement or the transactions
contemplated hereby shall be brought exclusively in the Delaware Court of Chancery and any state
appellate court therefrom (or, if the Delaware Court of Chancery declines to accept jurisdiction
over a particular matter, in any federal court located in the State of Delaware or any Delaware
state court), and each of the parties hereto hereby consents to the exclusive jurisdiction of such
courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding
and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or
hereafter have to the laying of the venue of any such suit, action or proceeding in any such court
or that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. Process in any such suit, action or proceeding may be served on any party
anywhere in the world, whether within or without the jurisdiction of any such court.

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          (i) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY JURY IN ANY SUIT,
ACTION OR PROCEEDING ARISING HEREUNDER.

          (j) Enforcement. The Special Committee of Borrower, acting on behalf of Borrower,
shall have the power to enforce this Agreement and the Note against Lender to the full extent of
Lender’s obligations under this Agreement and the Note.

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     THE PARTIES HERETO have signed this Agreement on the date written above.

	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	ROBERT M. WORSLEY	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Robert M. Worsley	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CHRISTI M. WORSLEY	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Christi M. Worsley	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ROBERT M. WORSLEY AND CHRISTI M. WORSLEY
REVOCABLE TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert M. Worsley	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert M. Worsley	 	 
	 

	 	 	 	Its: Co-Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Christi M. Worsley	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Christi M. Worsley	 	 
	 

	 	 	 	Its: Co-Trustee	 	 
	 
	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	RENEGY HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert W. Zack	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert W. Zack	 	 
	 

	 	 	 	Its: Chief Financial Officer	 	 

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EXHIBIT A TO THE REVOLVING CREDIT AGREEMENT

FORM OF REVOLVING CREDIT NOTE

___ ___, 2008

$6,000,000

Due: March 31, 2010

1. Promise to Pay. FOR VALUE RECEIVED, RENEGY HOLDINGS, INC., a Delaware corporation
(“Borrower”), promises to pay to the order of ROBERT M. WORSLEY, an Arizona resident,
CHRISTI M. WORSLEY, an Arizona resdient, and the Robert M. Worsley and Christi M. Worsley Revocable
Trust (together with Christi M. Worsley and Robert M. Worsley, “Lender”), the sum not to
exceed of Six Million Dollars ($6,000,000.00), or so much thereof as may be from time to time
outstanding, together with all other amounts added thereto pursuant to this Note or otherwise
payable to Lender (together, the “Loan”), together with interest thereon (if any) as
hereinafter set forth, payable in lawful money of the United States of America. Payments shall be
made to Lender at such address or account as Lender may hereafter designate in writing to Borrower.

2. Revolving Loan. This Note evidences a revolving credit, all or any part of which may be
advanced to Borrower, repaid by Borrower, and readvanced to Borrower from time to time, subject to
the other provisions hereof and the provisions of the Revolving Credit Agreement (the “Credit
Agreement”), dated as of February 12, 2008, by and between Borrower and Lender provided that
the principal balance outstanding hereunder at any one time shall not exceed $6,000,000.00.

3. Interest. Borrower promises to pay interest on the unpaid principal amount of each
Advance (as defined in the Credit Agreement) evidenced hereby from the date of such Advance until
the principal amount is paid in full, at such interest rates, and payable at such times, as are
specified in the Credit Agreement.

4. Repayment of Advances. Borrower promises to pay the principal of any Advance at such
times and on such dates as specified in the Credit Agreement.

5. Governing Law; Severability. This Note shall be governed by and construed in accordance
with the internal laws of the State of Delaware, without regard to conflicts of laws principles.
The invalidity, illegality or unenforceability of any provision of this Note shall not affect or
impair the validity, legality or enforceability of the remainder of this Note, and to this end, the
provisions of this Note are declared to be severable.

 

 

6. Miscellaneous.

     6.1 Credit Agreement. This Note is issued pursuant to the Credit Agreement. In the
event of any conflict between the provisions of this Note and the provisions of the Credit
Agreement, the provisions of the Credit Agreement shall govern.

     6.2 Amendments. This Note may not be terminated or amended orally, but only by a
termination or amendment in writing signed by both Borrower and Lender and consented to by the
Special Committee of the Board of Directors of Borrower.

     6.3 Lawful Rate of Interest. In no event whatsoever shall the amount of interest paid
or agreed to be paid to Lender pursuant to this Note exceed the highest lawful rate of interest
permissible under applicable law.

     6.4 Waivers. Borrower hereby waives grace, diligence, presentment, demand, notice of
demand, dishonor, notice of dishonor, protest, notice of protest, any and all exemption rights
against the indebtedness evidenced by this Note and the right to plead any statute of limitations
as a defense to the repayment of all or any portion of this Note, and interest thereon, to the
fullest extent allowed by law. No delay, omission and/or failure on the part of the Lender in
exercising any right and/or remedy hereunder shall operate as a waiver of such right and/or remedy
or of any other right and/or remedy of Lender.

     6.5 Captions. The captions of the Sections of this Note are for convenience of
reference only and shall not be deemed to modify, explain, enlarge or restrict any of the
provisions hereof.

     6.6 Notices. Notices shall be given under this Note in conformity with the terms and
conditions of the Credit Agreement.

     6.7 Time of Essence. Time is of the essence of this Note and the performance of each
of the covenants and agreements contained herein.

     6.8 Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of,
or based on any matter arising out of or in connection with, the Credit Agreement or Note or the
transactions contemplated thereby or hereby shall be brought exclusively in the Delaware Court of
Chancery and any state appellate court therefrom (or, if the Delaware Court of Chancery declines to
accept jurisdiction over a particular matter, in any federal court located in the State of Delaware
or any Delaware state court), and Borrower hereby consents to the exclusive jurisdiction of such
courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding
and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or
hereafter have to the laying of the venue of any such suit, action or proceeding in any such court
or that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. Process in any such suit, action or proceeding may be served on any party
anywhere in the world, whether within or without the jurisdiction of any such court.

[Remainder of page intentionally left blank. See signature page attached.]

 

 

     IN WITNESS WHEREOF, Borrower has executed this Note or has caused the same to be executed by
its duly authorized representatives as of the date set first forth above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	RENEGY HOLDINGS, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	By:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Name:	 	 	 	 
	 
	 	 	 	 	 	Its:	 	 	 	 

 

 

EXHIBIT B TO THE REVOLVING CREDIT AGREEMENT

FORM OF ADVANCE REQUEST

Date:                                         

Time:                                         

Robert M. Worsley

Christi M. Worsley

3418 N. Val Vista Drive

Mesa, Arizona 85213

Dear Mr. and Mrs. Worsley:

     The undersigned, Renegy Holdings, Inc. (“Borrower”), refers to the Revolving Credit Agreement
dated as of February 12, 2008 (as it may hereafter be amended, modified, extended or restated from
time to time, the “Credit Agreement”) by and between Borrower and Robert M. Worsley, Christi M.
Worsley and the Robert M. Worsley and Christi M. Worsley Revocable Trust, together as Lender.
Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Credit Agreement.

     Borrower hereby gives notice that it requests an Advance pursuant to the Credit Agreement and
sets forth below the terms of such requested Advance:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	A.	 	 	Date of Advance
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	B.	 	 	Principal Amount of Advance
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Sincerely,	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	RENEGY HOLDINGS, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	By:	 	 	 	 	 	 	 	 
	 
	 	 
	 	 	 	 	 
	 
	 	        Name:	 	 	 	 
	 
	 	        Its:

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