Document:

exv10w2

	 	 	 	 	 

GUARANTEE

     FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in connection with
that certain funding agreement (the “Funding Agreement”), entered into by and between Principal
Life Insurance Company, an Iowa insurance company (“Principal Life”), and Principal Life Income
Fundings Trust 2008-62, a New York common law trust (the “Trust”), relating to the notes (the
“Notes”) issued by the Trust, Principal Financial Group, Inc., a Delaware corporation and the
indirect parent company of Principal Life (the “Guarantor”), hereby furnishes to the Trust its full
and unconditional guarantee of the Guaranteed Amounts (as hereinafter defined) as follows:

     1. Guarantee.

          (a) The Guarantor hereby fully, irrevocably, absolutely and unconditionally guarantees, as a
guarantee of payment and not merely as a guarantee of collection, immediate payment when due to the
Trust any payments required to be made by Principal Life to the Trust under the Funding Agreement
which shall become due and payable regardless of whether such payment is due at maturity, on an
interest payment date or as a result of redemption or otherwise (the “Scheduled Payments”) but
shall be unpaid by Principal Life (the “Guaranteed Amounts”). Notwithstanding anything to the
contrary contained herein, in no event shall the Guaranteed Amounts exceed the Deposit (as defined
in the Funding Agreement) of the Funding Agreement, plus accrued but unpaid interest and any other
amounts due and owing under the Funding Agreement, less any amounts paid by Principal Life to the
Trust.

          (b) In the event that Principal Life fails to make a Scheduled Payment in full when due (the
“Payment Notice Date”), then the Trust or Citibank, N.A., as indenture trustee for the benefit of
the holders of the Notes (the “Indenture Trustee”), pursuant to the indenture (the “Indenture”)
between the Trust and the Indenture Trustee, may present the Guarantor with notice (each, a
“Payment Notice”) of such failure in writing on or after the Payment Notice Date. The Payment
Notice shall identify (1) the Funding Agreement, (2) the Trust, (3) the Payment Notice Date and (4)
the amount of the Scheduled Payments not paid by Principal Life to the Trust as of the Payment
Notice Date. Upon receipt of such Payment Notice, the Guarantor will immediately pay the
Guaranteed Amounts pursuant to Section 7.

          (c) In the event that, after receipt of a Payment Notice from the Trust, the Guarantor fails
to make immediate payment to the Trust or the Indenture Trustee of the Guaranteed Amounts, then
the Trust and the Indenture Trustee may enforce the obligations of the Guarantor under this
Guarantee, including by immediately bringing suit directly against the Guarantor (without first
bringing suit against Principal Life) for the Guaranteed Amounts not paid to the Trust as of the
Payment Notice Date.

          (d) This Guarantee is an unsecured, unsubordinated and contingent obligation of the Guarantor
and ranks equally with all other unsecured and unsubordinated obligations of the Guarantor.

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     2. Termination. This Guarantee is a continuing and irrevocable guarantee of the Guaranteed
Amounts now or hereafter existing and shall terminate and be of no further force and effect with
respect to the Funding Agreement and the Notes upon the full payment of the Scheduled Payments or
upon the earlier extinguishment of the obligations of Principal Life under the Funding Agreement.

     3. Amendments. Subject to the trust agreement relating to the Trust and the Indenture, no
provision of this Guarantee may be waived, amended, supplemented or modified, except by a written
instrument executed by the Trust and the Guarantor.

     4. Assignment; Governing Law. This Guarantee shall inure to the benefit of the Trust and its
successors, assigns and pledgees. This Guarantee shall be governed by, and construed in accordance
with, the laws of the State of New York without regard to conflict of law principles.

     5. Notices. All notices given pursuant to this Guarantee shall be in writing, and shall
either be delivered, mailed or telecopied to the locations listed below or at such other address or
to the attention of such other persons as such party shall have designated for such purpose in a
written notice complying as to delivery with the terms of this Section 5. Each such notice shall
be effective (i) if given by telecopy, when transmitted to the applicable number so specified in
this Section 5 (such notice shall also be sent by mail, with first class postage prepaid), (ii) if
given by mail, three days after deposit in the mails with first class postage prepaid, or (iii) if
given by any other means, when actually delivered at such address.

If to the Guarantor:

Principal Financial Group, Inc.

711 High Street

Des Moines, Iowa 50392

Attention: General Counsel

Telephone: (515) 247-5111

Facsimile: (515) 248-3011

With a copy to:

Principal Life Insurance Company

711 High Street

Des Moines, Iowa 50392

Attention: Jim Fifield

Telephone: (515) 248-9196

Facsimile: (866) 496-6527

If to the Trust:

Principal Life Income Fundings Trust (followed by the number of the Trust specified in this Guarantee)

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c/o U.S. Bank Trust National Association

100 Wall Street, 16th Floor

New York, New York 10005

Attention: Janet P. O’Hara

Telephone: (212) 361-2527

Facsimile: (212) 809-5459

With a copy to:

Citibank, N.A.

Corporate and Investment Banking

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Jennifer H. McCourt

Telephone: (212) 816-5680

Facsimile: (212) 816-5527

     6. Representations and Warranties. The Guarantor represents and warrants that: (i) it is duly
organized and in good standing under the laws of the jurisdiction of its organization and has full
capacity and right to make and perform this Guarantee, and all necessary authority has been
obtained; (ii) this Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights and general principles of equity, regardless of whether
enforcement is sought in a proceeding in equity or at law; (iii) the making and performance of this
Guarantee does not and will not violate the provisions of any applicable law, regulation or order,
and does not and will not result in the breach of, or constitute a default under, any material
agreement, instrument or document to which it is a party or by which it or any of its property may
be bound or affected, except to the extent disclosed in the registration statement registering the
issuance of this Guarantee and the Funding Agreement, as amended, supplemented or modified from
time to time (the “Registration Statement”), and to the extent that any such violation, breach or
default does not result in a material adverse effect on the Guarantor; and (iv) all consents,
approvals, licenses and authorizations of, and filings and registrations with, any governmental
authority required under applicable law and regulations for the making and performance of this
Guarantee have been obtained or made and are in full force and effect, except to the extent
disclosed in the Registration Statement and to the extent that the failure to acquire any such
consent, approval, license, authorization, filing or registration does not result in a material
adverse effect on the Guarantor.

     7. Notice of, and Consent to, Security Interest. The Trust hereby notifies the Guarantor that
it has granted to the Indenture Trustee, on behalf of the holders of the Notes, a security interest
in the Collateral (as defined in the Indenture), including, but not limited to, any and all payment
to be made by the Guarantor to the Trust under this Guarantee. The Trust hereby notifies the
Guarantor that it has collaterally assigned to the Indenture Trustee, for the benefit of the
holders of the Notes, this Guarantee. The Guarantor, by executing this Guarantee, hereby (i)
affirms that it has made or simultaneously will make changes to its books and records to reflect
such security interest and collateral assignment, (ii) consents to the security interest

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granted, and collateral assignment made, by the Trust to the Indenture Trustee of this Guarantee,
(iii) agrees to make all payments due under this Guarantee to the Collection Account (as defined in
the Indenture) or any other account designated in writing to the Guarantor by the Indenture Trustee
and (iv) agrees to comply with all orders of the Indenture Trustee with respect to this Guarantee
without any further consent from the Trust.

     8. WAIVER OF JURY TRIAL; FINAL AGREEMENT. TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE
GUARANTOR WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON OR ARISING
OUT OF THIS GUARANTEE. THIS GUARANTEE REPRESENTS THE FINAL AGREEMENT BETWEEN THE GUARANTOR AND THE
TRUST AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS AMONG SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH PARTIES.

	 	 	 	 	 
	 	PRINCIPAL FINANCIAL GROUP, INC.

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 	 	Name:  	Elizabeth D. Swanson 	 
	 	 	Title:  	Counsel
 	 
	 	 	Date: 	 The Effective Date (as defined in the Funding Agreement) 	 
	 

Acknowledged and Agreed:

	 	 	 	 	 
	THE PRINCIPAL LIFE INCOME FUNDINGS

TRUST DESIGNATED IN THIS GUARANTEE

 	 	 
	By:  	U.S. Bank Trust National Association,
 not in its individual capacity, but solely in its
 capacity as trustee
 	 	 
	 	 	 
	By:  	       Bankers Trust Company, N.A.,
 under Limited Power of Attorney, dated November 21, 2007 	 	 
	 	 	 
	By:  	                         /s/  Rick Greene
 	 	 
	 	Name:  	Rick Greene 	 	 
	 	Title:  	Vice President 	 	 
	 	Date:  	 The Effective Date (as defined in the Funding
Agreement) 	 	 
	 

4rentech_8k-ex1001.htm

    Exhibit 10.1

    
 

    
       

      ABSOLUTE
SHARE PRICE TARGET

       

      PERFORMANCE
SHARE AWARD AGREEMENT

       

      

       

      THIS ABSOLUTE SHARE PRICE TARGET
PERFORMANCE SHARE AWARD AGREEMENT (the “Award
Agreement”), dated as of _________ (the “Grant
Date”), is made by and between Rentech, Inc., a Colorado corporation (the
“Company”),
and _________, an employee of the Company or one or more of its Subsidiaries
(the “Participant”).

      

      WHEREAS, the Company maintains
the Rentech, Inc. Amended and Restated 2006 Incentive Award Plan (the “Plan”);

      

      WHEREAS, the Company wishes to
carry out the Plan (the terms of which are hereby incorporated by reference and
made a part of this Award Agreement);

      

      WHEREAS, the Plan authorizes
the grant of awards that provide the grantee with a right to receive Stock, the
payment of which is contingent upon achieving specified performance-based
targets established by the Committee (“Performance
Shares”);

       

      WHEREAS, the Committee has
determined to issue the award of Performance Shares provided for herein (the
“Performance Share
Award”) to the Participant as an inducement to enter into or remain in
the service of the Company and its Subsidiaries, and as an incentive for
increased or continued efforts during such service, and has advised the Company
thereof and instructed the undersigned officer to issue said Performance Share
Award;

       

      NOW, THEREFORE, in consideration of
the mutual covenants herein contained and for other good and valuable
consideration, receipt of which is hereby acknowledged, the parties hereto do
hereby agree as follows:

       

      

      ARTICLE
I.

      DEFINITIONS

       

      Section
1.1   As used herein, the following terms shall have the
meanings specified below, unless the context clearly indicates
otherwise.  All capitalized terms used herein without definition shall
have the meanings ascribed to such terms in the Plan.

       

      (a)   “Cause”
shall mean “cause” as defined in an applicable employment agreement between the
Participant and the Company or, if no such employment agreement exists or if an
applicable agreement contains no such definition, then “cause” shall mean (i)
any material failure by the Participant to perform the Participant’s duties and
responsibilities reasonably assigned to Participant by the Company (other than
due to the Participant’s Disability); (ii) any act of fraud, embezzlement, theft
or misappropriation by the Participant relating to the Company or its business
or assets; (iii) the Participant’s commission of a felony or a crime involving
moral turpitude; (iv) any gross negligence or intentional misconduct on the part
of the Participant in the conduct of the Participant’s duties and
responsibilities with the Company or which adversely affects the image,
reputation or business of the Company or its affiliates; or (v) any material
breach by the Participant of any agreement between the Company and the
Participant.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)   “Good
Reason” shall mean “good reason” as defined in an applicable employment
agreement between the Participant and the Company or, if no such employment
agreement exists or if an applicable agreement contains no such definition, then
“good reason” shall mean the occurrence of any of the following without the
Participant’s consent: (i) a material reduction in the Participant’s annual base
salary, unless such reduction in annual base salary is part of a general
decrease in the base salary of similarly affected employees as part of a general
cost reduction exercise; or (ii) a material reduction in the Participant’s job
duties and responsibilities or the assignment to the Participant of any duties
inconsistent in any material respect with the Participant’s position with the
Company, provided, that
no resignation for Good Reason shall be effective unless and until (A) the
Participant has first provided the Company with written notice specifically
identifying the acts or omissions constituting the grounds for “Good Reason”
within thirty (30) days after the occurrence thereof, (B) the Company has not
cured such acts or omissions within thirty (30) days of its actual receipt of
such notice, and (C) the effective date of the Participant’s termination for
Good Reason occurs no later than ninety (90) days after the initial existence of
the facts or circumstances constituting Good Reason.

      

      (c)    “Measurement
Date” means _________.

      

      (b)   “Performance
Percentage” shall mean the percentage determined in accordance with the
Share Price Target Table contained in Exhibit A
hereto.

       

      (c) 
 “Performance
Shares” shall mean up to _______ shares of Stock that will be issued to
the Participant under this Award Agreement if the Performance Targets or such
other criteria described hereunder are met during the applicable performance
period.

      

      (d)  “Performance
Targets” shall mean the specific target or targets determined by the
Committee, as specified in Section 2.2 and Exhibit A
hereto.

      

      (e)  “Rule
16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such
Rule may be amended from time to time.

      

      (f)  “Termination of
Service” shall mean the Participant’s termination of employment with the
Company for any reason, with or without cause, including, but not by way of
limitation, a termination by resignation, discharge, death, or Disability, provided, that, if the
Participant continues to serve as a Director immediately following any such
termination of employment, the Committee may, in its sole discretion, determine
that a Termination of Service has not occurred until such time as the
Participant ceases to serve as a Director.

      

      (g) 
“Volume
Weighted Average Share Price” shall mean the trailing sixty-day volume
weighted average closing price of a share of Stock on the principal exchange on
which the Stock is then trading, as determined by the Committee.

      

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      ARTICLE
II.

      AWARD OF PERFORMANCE
SHARES

       

      Section
2.1  Award of
Performance Shares.  As of the Grant Date, the Company grants
to the Participant the Performance Share Award on the terms and conditions set
forth in this Award Agreement.  The Performance Share Award represents
a potential right to receive shares of Stock that may become payable based upon
the Participant’s continued service and the achievement of the Performance
Targets.  The actual number of Performance Shares, if any, payable to
the Participant will be based on the extent to which the Performance Targets are
attained.  The Participant’s right and interest in the Performance
Share Award represents a mere unfunded and unsecured contingent promise to pay
by the Company.  As a further condition to the Company’s obligations
under this Award Agreement, the Participant’s spouse, if any, shall execute and
deliver to the Company the Consent of Spouse attached hereto as Exhibit
B.  Notwithstanding anything to the contrary anywhere else in
this Award Agreement, the Performance Share Award is subject to the terms,
definitions and provisions of the Plan, which is incorporated herein by
reference.

       

      Section
2.2   Payment
of Performance Shares.

       

      (a)  
Subject to Section 2.2(b) below, in the event that (i) the Participant does not
incur a Termination of Service prior to the Measurement Date, and (ii) the
Volume Weighted Average Share Price on the Measurement Date exceeds $2.00, then
the Participant shall be entitled to receive a number of Performance Shares
equal to the product of (x) the maximum number of Performance Shares subject to
this Performance Share Award, multiplied by (y) the Performance Percentage
determined as of the Measurement Date in accordance with the Share Price Target
Table contained in Exhibit A
hereto.  Any Performance Shares that become payable to the Participant
shall be paid in whole shares of Stock as soon as practicable after the
Measurement Date, but in no event later than the last day of the applicable two
and one-half (2 1⁄2) month “short-term deferral” period with respect to such
payment, within the meaning of Treasury Regulation Section 1.409A-1(b)(4) (the
“Short-Term
Deferral Period”).

       

      (b) 
Notwithstanding Section 2.2(a) above:

       

       

      
        	
                 
      

              	
                (i)

              	
                In
      the event that, prior to the Measurement Date, a Change in Control occurs
      and the Participant has not experienced a Termination of Service prior to
      such Change in Control, then, upon such Change in Control, the Participant
      shall be entitled to receive the maximum number of Performance Shares
      subject to this Performance Share Award as soon as practicable after the
      Change in Control occurs, but in no event later than the last day of the
      applicable Short-Term Deferral
Period;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                In
      the event that, after the Grant Date, but prior to the Measurement Date,
      the Participant experiences a Termination of Service by the Company
      without Cause or by the Participant for Good Reason, then the Participant
      shall be entitled to receive a number of Performance Shares determined by
      multiplying (x) the maximum number of Performance Shares subject to this
      Performance Share Award, times (y) the Performance Percentage applicable
      as of the date of such Termination of Service determined in accordance
      with the Share Price Target Table contained in Exhibit A
      hereto, payable, in any event, as soon as practicable after such
      Termination of Service, but in no event later than the last day of the
      applicable Short-Term Deferral Period;
and

              

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (iii)

              	
                In
      the event that, prior to the Measurement Date, the Participant experiences
      a Termination of Service due to the Participant’s death or Disability,
      then the Participant shall be entitled to receive a number of Performance
      Shares determined by multiplying (x) the maximum number of Performance
      Shares subject to this Performance Share Award, times (y) the Performance
      Percentage determined as of the date of such Termination of Service in
      accordance with the Share Price Target Table contained in Exhibit A
      hereto, payable as soon as practicable after such Termination of Service,
      but in no event later than the last day of the applicable Short-Term
      Deferral Period.

              

      

       

      Section
2.3  Forfeiture;
Transfer Restrictions. The right to receive the Performance Shares shall
be subject to forfeiture as provided in Section 3.1 of this Award Agreement, and
the Participant shall have no right to sell, assign, transfer, pledge, or
otherwise encumber or dispose of the Performance Share Award or the
Participant’s right to receive the Performance Shares.

       

      Section
2.4  No Rights as
Stockholder.  Neither the Participant nor any person claiming
under or through the Participant shall have any of the rights or privileges of a
stockholder of the Company in respect of any shares that may become deliverable
hereunder unless and until certificates representing such shares shall have been
issued or recorded in book entry form on the records of the Company or its
transfer agents or registrars, and delivered in certificate or book entry form
to the Participant or any person claiming under or through the
Participant.

       

      ARTICLE
III.

      RESTRICTIONS

       

      Section
3.1  Forfeiture.

       

      (a) 
Termination of
Service.  Except as expressly provided in Section 2.2(b) above,
in the event that the Participant incurs a Termination of Service for any reason
prior to the Measurement Date, the Performance Share Award and the Performance
Shares, to the extent not payable under Section 2.2 as of the date of such
Termination of Service (the “Termination
Date”), shall thereupon automatically and without further action be
cancelled and forfeited by the Participant, and the Participant shall have no
further right or interest in or with respect thereto.  No portion of
the Performance Share Award and no portion of the Performance Shares which are
not payable to the Participant under Section 2.2 above as of the Termination
Date shall thereafter become payable.

       

      (b) 
Failure to Achieve Performance
Target.  Any portion of the Performance Share Award and any
Performance Shares which do not become payable to the Participant as of the
Measurement Date as a result of the relevant Performance Targets not being fully
achieved shall automatically and without further action be cancelled and
forfeited by the Participant as of the Measurement Date, and the Participant
shall have no further right or interest in or with respect to such portion of
the Performance Share Award or Performance Shares.  No portion of the
Performance Share Award and no portion of the Performance Shares which do not
become payable to the Participant as of the Measurement Date as a result of the
relevant Performance Targets not being fully achieved shall thereafter become
payable.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      Section
3.2   Distribution of
Stock.  Notwithstanding anything herein to the contrary, the
Company shall not be required to issue or deliver any certificates evidencing
shares of Stock pursuant to this Award Agreement unless and until the Committee
has determined that the issuance and delivery of such certificates is in
compliance with all applicable laws, regulations of governmental authorities
and, if applicable, the requirements of any exchange on which the shares of
Stock are listed or traded.  All Stock certificates delivered pursuant
to this Award Agreement shall be subject to any stop-transfer orders and other
restrictions as the Committee deems necessary or advisable to comply with
federal, state, or foreign jurisdiction, securities or other laws, rules and
regulations and the rules of any national securities exchange or automated
quotation system on which the Stock is listed, quoted, or traded.  The
Committee may place legends on any Stock certificate to reference restrictions
applicable to the Stock.  In addition to the terms and conditions
provided herein, the Committee may require that the Participant make such
reasonable covenants, agreements, and representations as the Committee, in its
discretion, deems advisable in order to comply with any such laws, regulations,
or requirements.  The Committee shall have the right to require the
Participant to comply with any timing or other restrictions with respect to the
settlement of any Performance Shares, including a window-period limitation, as
may be imposed in the discretion of the Committee.  Notwithstanding
any other provision of this Agreement, unless otherwise determined by the
Committee or required by any applicable law, rule or regulation, the Company
shall not deliver to the Participant any certificates evidencing shares of Stock
issued upon settlement of any Performance Shares under this Award Agreement and
instead such shares of Stock shall be recorded in the books of the Company (or,
as applicable, its transfer agent or stock plan administrator).  No
fractional shares shall be issued and the Committee shall determine, in its sole
discretion, whether cash shall be given in lieu of any vested fractional
Performance Shares or whether such fractional shares shall be eliminated by
rounding up or down as appropriate.

       

      ARTICLE
IV.

      MISCELLANEOUS

       

      Section
4.1   No Right
to Continued Employment.  Nothing in the Plan or in this Award
Agreement shall confer upon the Participant any right to continue as an
Employee, Consultant, member of the Board, or other service provider of the
Company or any Subsidiary, or shall interfere with or restrict in any way the
rights of the Company or any Subsidiary, which are hereby expressly reserved, to
discharge the Participant at any time for any reason whatsoever, with or without
cause, except to the extent expressly provided otherwise in a written employment
agreement between the Participant and the Company or any
Subsidiary.

       

      Section
4.2    Tax Withholding.
The Company shall have the authority and the right to deduct or withhold, or to
require the Participant to remit to the Company, an amount sufficient to satisfy
all applicable federal, state and local taxes (including the Participant’s
employment tax obligations) required by law to be withheld with respect to any
taxable event arising in connection with the Performance Shares.  The
Committee may, in its sole discretion and in satisfaction of the foregoing
requirement, allow the Participant to elect to have the Company withhold
Performance Shares that become payable under this Performance Share Agreement
(or allow the return of such shares of Stock by the Participant) having a Fair
Market Value equal to the sums required to be withheld, provided, that the
number of shares which may be so withheld (or returned) with respect to a
taxable event arising in connection with the Performance Shares shall be limited
to the number of shares which have a Fair Market Value on the date of
withholding equal to the aggregate amount of such liabilities based on the
minimum statutory withholding rates for federal, state and local income tax and
payroll tax purposes that are applicable to such supplemental taxable
income.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      Section
4.3    Section
409A.  The Performance Share Award is not intended to
constitute or provide for “nonqualified deferred compensation” within the
meaning of Code Section 409A.  Nevertheless, to the extent that the
Committee determines that the Performance Share Award may not be exempt from (or
compliant with) Code Section 409A, the Committee may amend this Award Agreement
in a manner intended to comply with the requirements of Code Section 409A or an
exemption therefrom (including amendments with retroactive effect), or take any
other actions as it deems necessary or appropriate to (a) exempt the Performance
Share Award from Code Section 409A and/or preserve the intended tax treatment of
the benefits provided with respect to the Performance Share Award, or (b) comply
with the requirements of Code Section 409A.  To the extent applicable,
this Award Agreement shall be interpreted in accordance with the provisions of
Code Section 409A.

       

      Section
4.4    Tax
Consultation.  The Participant understands that he or she may
suffer adverse tax consequences in connection with the Performance Share Award
or the payment thereof.  The Participant represents that the
Participant has consulted with any tax consultants that he or she deems
advisable in connection with the Performance Share Award and that the
Participant is not relying on the Company for tax advice.

       

      Section
4.5    Conformity to Securities Laws.
This Award Agreement is intended to conform to the extent necessary with all
provisions of the Securities Act and the Exchange Act and any and all
regulations and rules promulgated by the Securities and Exchange Commission
thereunder, including without limitation Rule 16b-3. Notwithstanding anything
herein to the contrary, this Award Agreement shall be administered, and the
Performance Shares shall be issued, only in such a manner as to conform to such
laws, rules and regulations. To the extent permitted by applicable law, this
Award Agreement and the Performance Shares issued hereunder shall be deemed
amended to the extent necessary to conform to such laws, rules and
regulations.

       

      Section
4.6    Amendment. This Award
Agreement may only be amended, modified or terminated by a writing executed by
the Participant and by a duly authorized representative of the
Company.

       

      Section
4.7    Severability.  In
the event that any provision in this Award Agreement is held invalid or
unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining
provisions of this Award Agreement, which shall remain in full force and
effect.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      Section
4.8  Notices. Any notice to be
given under the terms of this Award Agreement to the Company shall be addressed
to the Company in care of its Secretary, and any notice to be given to the
Participant shall be addressed to him at his then current address on the books
and records of the Company.  By a notice given pursuant to this
Section 4.8, either party may hereafter designate a different address for
notices to be given to it or him. Any notice which is required to be given to
the Participant shall, if the Participant is then deceased, be given to the
Participant’s personal representative if such representative has previously
informed the Company of his status and address by written notice under this
Section 4.8.

       

      Section
4.9    Captions. Captions provided
herein are for convenience only and are not to serve as a basis for
interpretation or construction of this Award Agreement.

       

      Section
4.10  Governing
Law. The laws of the State of Colorado shall govern the interpretation,
validity, administration, enforcement and performance of the terms of this Award
Agreement regardless of the law that might be applied under principles of
conflicts of laws.

       

                 IN
WITNESS WHEREOF, this Award Agreement has been executed and delivered by the
parties hereto.

      

       

      

       

      
        	 	      
                RENTECH,
      INC.,

                a
      Colorado corporation

                

                

                By:                                                                           

                Name:

                
                  Title:

                

              

      

       

      

      

      

      PARTICIPANT

      

      

                                                            

      [Name]

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      

      SHARE
PRICE TARGETS

      

      

      For purposes of this Award Agreement,
the Performance Percentage shall be determined as of any given date by matching
the Volume Weighted Average Share Price on such date with the corresponding
percentage listed in the Share Price Table below.  To the extent that
the applicable Volume Weighted Average Share Price falls between the incremental
levels contained in this Share Price Target Table, the Performance Percentage
shall be determined based on a linear pro ration between the relevant increments
rounded to the nearest percentage point.

      

      
        	
                SHARE
      PRICE TARGET TABLE

              
	
                If
      the Fair Market Value on the

                 determination
      date equals:

              	
                Then
      the Performance 

                Percentage
      shall be equal to:

              
	
                $2.00
      per share or less

              	
                0%

              
	
                $3.00
      per share

              	
                50%

              
	
                $4.00
      per share or more

              	
                100%

              

      

      

       

       

       

       

       

       

       

      
 

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
B

       

      CONSENT
OF SPOUSE

       

      I, ____________________, spouse of
_______________, have read and approve the foregoing Award Agreement. In
consideration of granting of the right to my spouse to receive Performance
Shares of Rentech, Inc. as set forth in the Award Agreement if the Performance
Goals are met, I hereby appoint my spouse as my attorney-in-fact in respect to
the exercise of any rights under the Award Agreement and agree to be bound by
the provisions of the Award Agreement insofar as I may have any rights in said
Award Agreement or any shares issued pursuant thereto under the community
property laws or similar laws relating to marital property in effect in the
state of our residence as of the date of the signing of the foregoing Award
Agreement.

       

      Dated:
_______________, ______

       

      

         

        
          	 	Name:
      _____________________________

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