Document:

rentech_8k-ex1003.htm

    EXHIBIT 10.3

     

    REAFFIRMATION AND AMENDMENT
AGREEMENT

     

    THIS
REAFFIRMATION AND AMENDMENT AGREEMENT dated as of June 13, 2008 (this “Agreement”), is made
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 (“Holdings”), the
Subsidiaries of Holdings (other than the Borrower) identified on the signature
pages hereto (the “Subsidiary
Guarantors”) and CREDIT SUISSE, Cayman Islands Branch, as collateral
agent for the Secured Parties (in such capacity, the “Collateral
Agent”).

     

    RECITALS

     

    The
Borrower entered into that certain Credit Agreement dated as of May 30, 2008 by
and among the Borrower, Holdings, certain financial institutions party thereto,
as lenders, CREDIT SUISSE, Cayman Islands Branch, as administrative agent and
the Collateral Agent (the “Original Credit
Agreement”).

     

    The
Borrower’s obligations under the Original Credit Agreement are unconditionally
guaranteed by Holdings and the Subsidiary Guarantors (collectively, the “Guarantors”) pursuant
to the terms of the Guarantee and Collateral Agreement, dated as of May 30, 2008
(the “Guarantee and
Collateral Agreement”).  In addition, the Borrower and the
Guarantors (collectively, the “Grantors”) have
granted Liens (as defined in the Original Credit Agreement) in favor of the
Collateral Agent, its successors and assigns, for the ratable benefit of the
Secured Parties (as defined in the Guarantee and Collateral
Agreement) pursuant to (a) the Guarantee and Collateral
Agreement,  (b) the Intellectual Property Security Agreement, dated as
of May 30, 2008, and (c) such other Security Documents referred to in the
Original Credit Agreement (collectively, the “Security
Documents”).

     

    The
Borrower, the Lenders and the Agents desire to amend and restate the provisions
of the Original Credit Agreement pursuant to the Amended and Restated Credit
Agreement of even date herewith (as amended, restated or otherwise modified from
time to time, the “Credit Agreement”) by
and among the Borrower, the Lenders and the Agents.

     

    In
connection with the transactions contemplated by the Credit Agreement and as a
condition precedent thereto, the Lenders have requested that the Grantors
execute and deliver this Agreement to (a) confirm that each of the Security
Documents (as amended, restated, supplemented or otherwise modified prior to or on the date hereof) remains in full
force and effect, (b) confirm the validity of Liens and assignments granted
pursuant to the Security Documents, and (c) confirm that the Security Documents
and such Liens and assignments support or secure, and will continue to support
or secure, the Obligations.

     

    NOW
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties hereto, and to induce the Agents and the Lenders to enter into the
Credit Agreement, the parties hereto agree as follows:

     

    Section 1.  Definitions. 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
defined in the Guarantee and Collateral Agreement) and not defined in this
Agreement shall have the meaning assigned to it in the New York
UCC.  All references to the Uniform Commercial Code shall mean the New
York UCC.  For purposes hereof, “including” is not limiting and “or”
is not exclusive.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    Section 2.  Amendment
to Security Documents.  Schedule II
(Pledged Equity Interests; Pledged Debt Securities) to the Guarantee and
Collateral Agreement is hereby amended to include the information set forth as
set forth on Annex
1 hereto.

     

    Section 3.  Reaffirmation
of Security Documents.  Each of the
Grantors (a) agrees that the transactions contemplated by the amendment and
restatement of the Original Credit Agreement pursuant to the terms of the Credit
Agreement shall not limit or diminish the obligations of the Grantors under, or
release any Grantor from any obligations under, any Security Document, (b)
confirms and reaffirms its obligations under each Security Document and (c)
agrees that each Security Document remains in full force and effect and is
hereby in all respects ratified and confirmed, including, without limitation,
all schedules thereto; provided that: (i)
all references therein to the “Credit Agreement” shall be deemed to be
references to the Credit Agreement and (ii) all references to “Lenders” shall be
deemed to be references to the Lenders under the Credit Agreement.

     

    Section 4.  Grant of
Security Interest.  In furtherance of
the reaffirmations set forth in the preceding Section 3, the
Grantors hereby grant to the Collateral Agent, its successors and assigns, for
the ratable benefit of the Secured Parties, a lien on, security interest in and
right of set-off against any and all right, title and interest in and to any and
all property and interests in property of the Grantors, whether now owned or
existing or hereafter created, acquired or arising (all being collectively
referred to herein as the “Collateral”). Each
Grantor authorizes the Collateral Agent to file or record (and hereby ratifies
any filing or recordation prior to the date hereof) financing statements and
other filing or recording documents or instruments with respect to the
Collateral containing an indication or description of the Collateral that
describes such property in any manner as the Collateral Agent may reasonably
determine is necessary or desirable to ensure the perfection of the security
interest in the Collateral granted to the Collateral Agent pursuant hereto and
pursuant to the Security Documents, in such form and in such offices as the
Collateral Agent determines appropriate to perfect the security interests in the
Collateral of the Collateral Agent hereunder and under the Security
Documents.

     

    Section 5.  Reaffirmation
of Guaranty.  Without limiting any
other provision of this Agreement, each of the Grantors hereby acknowledges that
it has reviewed the terms and provisions of the Credit Agreement and consents to
the amendments and modifications effected thereby.  Each of the Grantors
(other than the Borrower) hereby confirms and reaffirms, both before and after
giving effect to the amendment and restatement of the Original Credit Agreement
pursuant to the Credit Agreement, that it is a party to and is bound by the
Guarantee and Collateral Agreement as a guarantor thereunder, by virtue of its
having been an original signatory thereto, and that the guaranty under the
Guarantee and Collateral Agreement guarantees the Obligations.  The
Guarantee and Collateral Agreement remains in full force and effect and is
hereby in all respects ratified and confirmed.

     

    Section 6.  Obligations
Secured.  The Security
Documents, as confirmed, ratified and reaffirmed by this Agreement, secure the
Obligations.

     

    Section 7.  No
Termination.  Each of the
Grantors hereby agree and acknowledge that (a) except as expressly amended
hereby, the Security Documents shall continue to be, and shall remain, in full
force and effect and (b) the amendment and restatement of the Original Credit
Agreement will not result in the termination of the Security Documents or the
release of Collateral pledged pursuant to the Security Documents.

     

    Section 8.  Applicable
Law. THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK.

     

    Section 9.  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 of the Guarantee and Collateral
Agreement.  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.

     

    

    [SIGNATURE
PAGES FOLLOW]

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

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

     

    
      
        	 	RENTECH
      ENERGY MIDWEST CORPORATION,	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Merrick
      Kerr	 
	 	 	Name:
      Merrick Kerr	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 

      

    

    
      
        	 	RENTECH,
      INC.,	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Merrick
      Kerr	 
	 	 	Name:
      Merrick Kerr	 
	 	 	Title:
      CFO	 
	 	 	 	 
	 	 	 	 

      

    

    
      
        	 	RENTECH
      DEVELOPMENT CORPORATION,	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Merrick
      Kerr	 
	 	 	Name:
      Merrick Kerr	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 

      

    

    
      
        	 	RENTECH
      SERVICES CORPORATION,	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Merrick
      Kerr	 
	 	 	Name:
      Merrick Kerr	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 

      

    

    
      
        	 	RENTECH
      ENERGY TECHNOLOGY CENTER, LLC	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Merrick
      Kerr	 
	 	 	Name:
      Merrick Kerr	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 

      

    

    
      	 	
              CREDIT
      SUISSE, Cayman Islands Branch,

              as Collateral Agent

            	 
	 	 	 	 
	
               

            	
              By:
      

            	/s/ Vanessa
      Gomez	 
	 	 	Name:
      Vanessa Gomez	 
	 	 	Title:
      Director	 

      
        	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Nupur
      Kumar	 
	 	 	Name:
      Nupur Kumar	 
	 	 	Title:
      Associate	 
	 	 	 	 

      

    

     

     

    3exv4w1

EXHIBIT 4.1

Employment Agreement

The parties to this agreement are LJ International Inc., a British Virgin Islands Company (the
“Company”) and YIH Yu Chuan (the “Executive”). The Company and the Executive hereby agree as
follows :

	1.	 	Employment and Duties
	 
	 	 	The Company shall employ the Executive and the Executive shall serve the Company as
President and Chief Executive Officer of the Company. The Executive shall use his best
efforts to promote the interests of the Company, and shall perform his duties in relation to
the Company and/or its subsidiaries (collectively “the Group”) faithfully and diligently,
consistent with sound business practices.

	2.	 	Term of Employment
	 
	 	 	The Executive shall be employed by the Company under this Agreement for a period of three
(3) years commencing as of the date of this agreement.

	3.	 	Remuneration and Reimbursement

	 	(A)	 	Subject to Clause 5, the Executive shall receive during the continuance of the
Appointment :

	 	(1)	 	A salary at the rate of HK$2,400,000 per annum such salary to
accrue on a day to day basis (including any sum receivable by the Executive as
director’s fee from any company in the Group) and to be payable monthly in
twelve equal installments in arrears on the last day of each calendar month
provided that if the Appointment is terminated prior to the end of a calendar
month, the Executive shall only be entitled to a proportionate part of such
salary in respect of the period of service during the relevant month up to the
date of termination. Such salary shall be adjusted on annual basis at a rate
to be determined by the Board as its absolute discretion having regard to the
operating results of the Group and the performance of the Executive.
	 
	 	(2)	 	An annual management bonus of a sum to be determined by the
Board at its absolute discretion having regard to the operating results of the
Group and the performance of the Executive during the relevant financial year
or any proportionate part thereof in which service of the Executive pursuant to
this Agreement is rendered. The management bonus shall be payable in arrears
in respect of each relevant financial year within one month after the issue of
the consolidated audited accounts of the Group for such financial year. The
amount payable to the Executive shall be decided by majority decision of the
members of the Board present in the meeting called for that purpose provided that the
Executive 

 

 

	 	 	 	shall abstain from voting and not be counted in the quorum in
respect of the resolution regarding the amount so payable to himself.

	 	(B)	 	The Executive shall continue to receive his salary during any period of absence
on medical grounds up to a maximum of 12 weeks in any period of 12 months provided that
the Executive shall if required supply the Company with medical certificates covering
the period of absence.
	 
	 	(C)	 	The Executive shall be reimbursed all reasonable out-of-pocket expenses
(including expenses of entertainment subsistence and travelling) incurred by him on the
Group’s business which expenses shall be evidenced in such manner as the Board may
require.
	 
	 	(D)	 	The Executive will be entitled to the benefits of any medical or provident fund
scheme as maybe maintained by the Group from to time.
	 
	 	(E)	 	The Executive shall be entitled to 12 working days paid vacation each year.

	4.	 	Other Benefits

The Executive shall be entitled, during the continuance of the Executive’s engagement hereunder,
to the use of a motor car and the Company shall pay all vehicle registration fees, taxes and
insurance premiums in respect of the car and shall pay or reimburse against receipts all
maintenance, repair and other running costs in respect of the car and the cost of petrol.

	5.	 	Termination of the Appointment

	 	(A)	 	Without prejudice to the accrued rights (if any) or remedies of either party
under or pursuant to this Agreement :
	 
	 	(1)	 	the Executive shall be entitled to terminate the Appointment by two months’
notice in writing to the Company if any money payable by the Company to the Executive
under or pursuant to this Agreement is not paid in full by the Company to the Executive
within a period of 30 days from any written demand by the Executive for the payment
thereof;
	 
	 	(2)	 	the Company shall be entitled to terminate the Appointment without any
compensation to the Executive :

	 	(a)	 	by not less than three months’ notice in writing given at any
time while the Executive shall have been incapacitated or prevented by reason
of ill health, injury or accident from performing his duties hereunder for a
period of or periods aggregating 90 days in the proceeding 12 months provided
that if at any time during the currency of a notice given pursuant to this
sub-paragraph the Executive shall provide a medical certificate satisfactory to
the Board to the effect that he has fully recovered his physical and/or mental
health and that no recurrence of illness or incapacity can reasonably be
anticipated the Company shall withdraw such notice; or
	 
	 	(b)	 	by summary notice in writing if the Executive shall at any
time:

 

 

     i. commit any serious or persistent breach of any of the provisions herein contained (and to
the extent that such breach is capable of remedy shall fail to remedy such breach within 60 days
after within warning given by the Board);

	 	ii	 	be guilty of any given misconduct or willful neglect
in the discharge of his duties (and to the extent that such breach is
capable of remedy shall fail to remedy such breach within 60 days after
written warning given by the Board);
	 
	 	iii.	 	become bankrupt or have a receiving order made
against him;
	 
	 	iv.	 	become a lunatic or of unsound mind;
	 
	 	v.	 	absent himself from the meetings of the Board during
a continuous period of three months, without special leave of absence from
the Board, and his alternate director (if any) shall not during such
period have attended in his stead;
	 
	 	vi.	 	become prohibited by law from acting as a director;
	 
	 	vii.	 	be guilty of conduct tending to bring himself or any
company in the Group into disrepute;
	 
	 	viii.	 	be prohibited by law from fulfilling his duties
hereunder; or
	 
	 	ix.	 	be convicted of any criminal offence (other than an
offence which in the reasonable opinion of the Board does not effect his
position as a director of the Company).

	 	(B)	 	If the Company becomes entitled to terminate the Appointment pursuant to
sub-clause (A)(2)(b) it shall be entitled (but without prejudice to its right
subsequently to terminate the Appointment on the same or any other ground) to suspend
the Executive without payment of salary in full or in part for so long as it may think
fit.
	 
	 	(C)	 	If the Executive shall have refused or failed to agree to accept without
reasonable grounds an appointment offered to him on terms no less favourable to him
than the terms in effects under this Agreement, either by a company which has acquired
or agreed to acquire the whole or substantially the whole of the undertaking and assets
of the Company or which shall own or has agreed to acquire the whole or not less than
90% of the issued share capital of the Company, the Executive shall have no claim
against the Company by reason of the subsequent voluntary winding up of any company in
the Group or of the disclaimer or termination of this Agreement by the Company within
three months after such refusal or failure to agree.
	 
	 	(D)	 	On the termination of the Appointment howsoever arising the Executive shall :
	 

	 	(1)	 	at any time and from time to time thereafter at the request of the Company resign from
office as a director of the Company and all offices held by him in any company in the Group and shall transfer without payment to the Company or as the Company may direct any
qualifying shares provided by it or any shares held by the Executive as 

 

 

	 	 	 	nominee for the
Company or any company in the Group provided by it and the Executive hereby irrevocable
appoints the Company to be his attorney and in his name and on his behalf to sign and do any
documents or things necessary or requisite to give effect thereto and a certificate in
writing signed by any director or by the secretary of the Company that any instrument or act
falls within the authority hereby conferred shall be conclusive evidence that such is the
case and any third party shall be entitled to rely on such certificate without further
enquiry provided however that such resignation or resignations shall be given and accepted
on the footing that it is or they are without prejudice to any claims which the Executive
may have against any such company or which any such company may have against the Executive
arising out of this Agreement or of the termination of the appointment; and

	 	(2)	 	forthwith deliver to the Company all books, documents, papers,
materials, credit cards (if any) and other property of or relating to the
business of the Group which may then be in his possession or under his power or
control.

	 	(E)	 	Save as expressly provided herein, neither party may terminate this Agreement.

	6.	 	Confidentiality
	 
	 	 	The Company shall not, at any time during or after his employment under this agreement,
disclose to any third party, except in the performance of his duties under this agreement,
any confidential information regarding the Company’s customers, suppliers, trade secrets or
business. The Executive shall return all tangible evidence of such confidential information
to the Company prior to or at the termination of his employment.

	7.	 	Waiver

	 	(A)	 	Time is of the essence of this Agreement but no failure or delay on the part of
either party to exercise any power, right or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise by either party of any power, right
or remedy preclude any other or further exercise thereof or the exercise of any other
power, right or remedy by that party.
	 
	 	(B)	 	The remedies provided herein are cumulative and are not exclusive of any
remedies provided by law.

	8.	 	Former Service Agreements
	 
	 	 	This agreement contains a complete statement of all the arrangements between the parties with
respect to its subject matter, supersedes all existing and former agreements between them with
respect to that subject matter, may not be changed or terminated orally and any amendment or
modification must be in writing and signed by the party to be charged.

	9.	 	Notices

 

 

	 	 	All notices, requests, demands, consents or other communications to or upon the parties
under or pursuant to this Agreement shall be in writing addressed to the relevant party at
such party’s address set out below (or at such other address as such party may hereafter
specify to the other party) and shall be deemed to have been duly given or made :-

	 	(A)	 	in the case of a communication by letter 48 hours after despatch or, if such
letter is delivered by hand, on the day of delivery;
	 
	 	(B)	 	in the case of communication by telex or facsimile, when sent.

	 	 	 	The Company’s address :
	 
	 	 	 	Unit 12, 12/F., Block A, Focal Industrial Centre

21 Man Lok Street, Hunghom

Kowloon, HONG KONG
	 
	 	 	 	The Executive’s address :
	 
	 	 	 	House No. K80, Stage IV, Marina Cove, Sai Kung

HONG KONG

	10.	 	Assignability
	 
	 	 	This Agreement shall be binding upon and ensure to the benefit of each party hereto and its
successors and assigns and personal representatives (as the case may be), provided always
that the Executive may not assign his obligations and liabilities under this Agreement
without the prior written consent of the Company.

	11.	 	Relationship
	 
	 	 	None of the provisions of this Agreement shall be deemed to constitute a partnership or
joint venture between the parties for any purpose.

	12.	 	Amendment

This Agreement may not be amended, supplemented or modified except by a written agreement or
instrument signed by or on behalf of the parties hereto.

	13.	 	Severability
	 
	 	 	Any provision of this Agreement prohibited by or unlawful or unenforceable under any
applicable law actually applied by any court of competent jurisdiction shall, to the extent
required by such law, be severed from this Agreement and rendered ineffective so far as is
possible without modifying the remaining provisions of this Agreement. Where, however, the
provisions of any such applicable law may be waived, they are hereby waived by the parties
to the full extent permitted by such law to the end that this Agreement shall be a valid and
binding agreement enforceable in accordance with its terms.

 

 

	14.	 	Law and Jurisdiction
	 
	 	 	This Agreement shall be governed and construed in all respects in accordance with the laws
of Hong Kong and the parties hereby submit to the non-exclusive jurisdiction of the courts
of Hong Kong.

IN WITNESS whereof this Agreement has been duly executed the 1st day of January, 2007.

Signed by

	 	 	 	 	 	 	 
	/S/ Au Ka Man
 

LJ International Inc.

	 	 
	 	/S/ YU CHUAN YIH
 

YIH Yu Chuan

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