Exhibit 4.3





Exhibit 4.3




EXECUTION COPY




REGISTRATION RIGHTS AGREEMENT




by and among




Westmoreland Coal Company, as Issuer




Westmoreland Partners, as Co-Issuer




The Guarantors named herein




and




Gleacher & Company Securities, Inc., as Initial Purchaser




Dated as of February 4, 2011






 


 









 







REGISTRATION RIGHTS AGREEMENT




This Registration Rights Agreement (this “Agreement”) is made and entered into as of February
4, 2011, by and among Westmoreland Coal Company, a Delaware corporation (the “Company”),
Westmoreland Partners, a Virginia partnership and an indirect wholly owned subsidiary of the
Company (together with the Company, the “Issuers”), certain subsidiaries of the Company listed on
Schedule I hereto (collectively, the “Guarantors”), and Gleacher & Company Securities, Inc.
(the “Initial Purchaser”), who has agreed to purchase the Issuers’ 10.750% Senior Secured Notes due
2018 (the “Initial Securities”). This Agreement is made pursuant to the Purchase Agreement, dated
as of February 1, 2011, by and among the Initial Purchaser, the Issuers and the Guarantors with
respect to $150,000,000 aggregate principal amount of Initial Securities (the “Purchase Agreement”)
for the benefit of the holders from time to time of the Initial Securities. In order to induce the
Initial Purchaser to purchase the Initial Securities, the Issuers and the Guarantors have agreed to
provide the registration rights set forth in this Agreement. The execution and delivery of this
Agreement is a condition to the obligations of the Initial Purchaser set forth in the Purchase
Agreement. The Initial Securities are issued under an indenture, dated as of the date hereof, as
amended or supplemented from time to time, (the “Indenture”), among the Issuers, the Guarantors and
Wells Fargo Bank, National Association, as trustee (the “Trustee”).




The parties hereby agree as follows:



SECTION 1. Definitions. As used in this Agreement, the following capitalized terms shall have
the following meanings:




Advice: As defined in Section 6(c) hereof.




Broker-Dealer: Any broker or dealer registered under the Exchange Act.



Business Day: Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which
banking institutions or trust companies located in New York, New York are authorized or obligated
to be closed. For purposes of this Agreement, if the day on which any deadline specified in this
Agreement expires is not a Business Day, such deadline shall be deemed to expire on the next
succeeding Business Day.




Closing Date: The date of this Agreement.




Commission: The Securities and Exchange Commission.




Company: As defined in the preamble hereto.



Consummate: A registered Exchange Offer shall be deemed “Consummated” for purposes of this
Agreement upon the occurrence of (i) the filing and effectiveness under the Securities Act of the
Exchange Offer Registration Statement relating to the Exchange Securities to be issued in the
Exchange Offer, (ii) the maintenance of such Registration Statement continuously effective and the
keeping of the Exchange Offer open for a period not less than the minimum period required pursuant
to Section 3(b) hereof, and (iii) the delivery by the Issuers to the
Registrar under the Indenture of Exchange Securities in the same aggregate principal amount as
the aggregate principal amount of Initial Securities that were validly tendered and not withdrawn
by Holders thereof pursuant to the Exchange Offer.


 


 









 






Effectiveness Target Date: As defined in Section 5 hereof.




Exchange Act: The Securities Exchange Act of 1934, as amended.




Exchange Dates: As defined in Section 3(a) hereof.



Exchange Offer: The registration by the Issuers under the Securities Act of the Exchange
Securities pursuant to a Registration Statement pursuant to which the Issuers offer the Holders of
all outstanding Transfer Restricted Securities the opportunity to exchange all such outstanding
Transfer Restricted Securities held by such Holders for Exchange Securities in an aggregate
principal amount equal to the aggregate principal amount of the Transfer Restricted Securities
validly tendered and not withdrawn in such exchange offer by such Holders.



Exchange Offer Registration Statement: The Registration Statement relating to the Exchange
Offer, including the related Prospectus.



Exchange Securities: The Issuers’ 10.750% Senior Secured Notes due 2018, of the same series
under the Indenture as the Initial Securities, to be issued to Holders in exchange for Transfer
Restricted Securities pursuant to this Agreement.




FINRA: Financial Industry Regulatory Authority, Inc.




Guarantors: As defined in the preamble hereto.




Holder: As defined in Section 2(b) hereof.




Indemnified Holder: As defined in Section 8(a) hereof.




Indenture: As defined in the preamble hereto.



Initial Placement: The issuance and sale by the Issuers of the Initial Securities to the
Initial Purchaser pursuant to the Purchase Agreement.




Initial Purchaser: As defined in the preamble hereto.




Initial Securities: As defined in the preamble hereto.




Interest Payment Date: As defined in the Indenture and the Securities.




Issuers: As defined in the preamble hereto.



Participating Broker-Dealer: Any Broker-Dealer electing to exchange Transfer Restricted
Securities, acquired for its own account as a result of market making activities or other
trading activities (other than Transfer Restricted Securities acquired directly from the
Issuers or their affiliates), for Exchange Securities.


 


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Person: An individual, partnership, corporation, trust or unincorporated organization, or a
government or agency or political subdivision thereof.



Prospectus: The prospectus included in a Registration Statement (including, without
limitation, any “issuer free writing prospectus” as defined in Rule 433 under the Securities Act),
as amended or supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference into such
Prospectus.




Purchase Agreement: As defined in the preamble hereto.




Registration Actions: As defined in Section 4(c) hereof.




Registration Default: As defined in Section 5 hereof.



Registration Statement: Any registration statement of the Issuers relating to (a) an offering
of Exchange Securities pursuant to an Exchange Offer or (b) the registration for resale of Transfer
Restricted Securities pursuant to the Shelf Registration Statement, which is filed pursuant to the
provisions of this Agreement, in each case, including the Prospectus included therein, all
amendments and supplements thereto (including post-effective amendments) and all exhibits and
material incorporated by reference therein.




Securities: The Initial Securities and the Exchange Securities.




Securities Act: The Securities Act of 1933, as amended.



Shelf Registration: A registration of securities pursuant to a Registration Statement filed
with the Commission in accordance with and pursuant to Rule 415 promulgated under the Securities
Act (or any successor rule in effect).




Shelf Registration Statement: As defined in Section 4(a) hereof.




Suspension Notice: As defined in Section 4(c) hereof.




Suspension Period: As defined in Section 4(c) hereof.



Transfer Restricted Securities: Each Initial Security, until the earliest to occur of (a) the
date on which such Initial Security is exchanged in the Exchange Offer for an Exchange Security
entitled to be resold to the public by the Holder thereof without complying with the prospectus
delivery requirements of the Securities Act, (b) the date on which such Initial Security has been
effectively registered under the Securities Act and disposed of in accordance with a Shelf
Registration Statement, (c) the date on which such Initial Security is distributed to the public by
a Broker-Dealer pursuant to the “Plan of Distribution” contemplated by the Exchange Offer
Registration Statement (including delivery of the Prospectus contained therein) and (d) the
date on which such Initial Security is actually sold by the Holder thereof pursuant to Rule
144 under the Securities Act under circumstances in which any legend borne by such Initial Security
relating to restrictions on transferability thereof, under the Securities Act or otherwise, is
removed by the Company or pursuant to the Indenture.


 


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Trust Indenture Act: The Trust Indenture Act of 1939, as amended.




Trustee: As defined in the preamble hereto.



Underwritten Registration or Underwritten Offering: A registration in which securities of the
Issuers are sold to an underwriter for reoffering to the public.




SECTION 2. Securities Subject to this Agreement.



(a) Transfer Restricted Securities. The securities entitled to the benefits of this Agreement
are the Transfer Restricted Securities.



(b) Holders of Transfer Restricted Securities. A Person is deemed to be a holder of Transfer
Restricted Securities (each, a “Holder”) whenever such Person owns Transfer Restricted Securities.




SECTION 3. Registered Exchange Offer.



(a) Unless the Exchange Offer shall not be permissible under applicable law or Commission
policy (after the procedures set forth in Section 6(a)(i) hereof have been complied with), the
Issuers shall (i) cause to be filed with the Commission on or prior to the 120th day after the
Initial Placement, a Registration Statement under the Securities Act relating to the Exchange
Securities and the Exchange Offer, (ii) use their commercially reasonable efforts to cause such
Registration Statement to become effective on or prior to the 210th day after the Initial
Placement, (iii) in connection with the foregoing, (A) file all pre-effective amendments to such
Registration Statement as may be necessary in order to cause such Registration Statement to become
effective, (B) if applicable, file a post-effective amendment to such Registration Statement
pursuant to Rule 430A under the Securities Act and (C) use their commercially reasonable efforts to
cause all necessary filings in connection with the registration and qualification of the Exchange
Securities to be made under the state securities or blue sky laws of such jurisdictions as any
Holder shall reasonably request in writing by the time the Exchange Offer Registration Statement is
declared effective by the Commission, it being agreed that no such registration or qualification
will be made unless so requested, to permit Consummation of the Exchange Offer; provided, however,
that none of the Issuers or any of the Guarantors shall be required to (x) qualify as a foreign
corporation or as a dealer in securities in any jurisdiction where it would not otherwise be
required to qualify but for this Section 3(a), or (y) take any action which would subject it to
general service of process or taxation in any such jurisdiction where it is not then so subject
and (iv) as promptly as practicable after the effectiveness of such Registration Statement,
commence the Exchange Offer. The Exchange Offer shall be on the appropriate form permitting
registration of the Exchange Securities to be offered in exchange for the Transfer Restricted
Securities and to permit resales of Initial Securities held by Broker-Dealers as contemplated by
Section 3(c) hereof. The Issuers and the Guarantors shall commence the Exchange Offer by mailing
or otherwise furnishing the related Prospectus, appropriate letter of transmittal and other
accompanying documents to each Holder of record stating, in addition to such other disclosures as
are required by applicable law, substantially the following:




(i) that the Exchange Offer is being made pursuant to this Agreement and that
all Transfer Restricted Securities validly tendered and not properly withdrawn will
be accepted for exchange;


 


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(ii) the dates of acceptance for exchange (which shall be a period of at least
20 Business Days from the date such notice is mailed) (the “Exchange Dates”);




(iii) that any Transfer Restricted Security not tendered will remain
outstanding and continue to accrue interest but will not retain any rights under
this Agreement, except as otherwise specified herein; and




(iv) that any Holder will be entitled to withdraw its election, not later than
the close of business on the last Exchange Date, by effecting such withdrawal in
compliance with the applicable procedures of the depositary for the Transfer
Restricted Securities.



(b) The Issuers shall use their commercially reasonable efforts to cause the Exchange Offer
Registration Statement to be continuously effective and shall keep the Exchange Offer open for a
period of not less than the minimum period required under applicable federal and state securities
laws to Consummate the Exchange Offer; provided, however, that in no event shall such period be
less than 20 days or more than 45 days (or longer if required by applicable law) after the date
notice of the Exchange Offer is mailed to the Holders. The Issuers shall cause the Exchange Offer
to comply in all material respects with all applicable federal and state securities laws. No
securities other than the Exchange Securities shall be included in the Exchange Offer Registration
Statement. The Issuers shall use their commercially reasonable efforts to cause the Exchange Offer
to be Consummated on or prior to the 255th day after the Initial Placement.


 


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(c) The Issuers shall indicate in a “Plan of Distribution” section contained in the Prospectus
forming a part of the Exchange Offer Registration Statement that any Participating Broker-Dealer
may exchange such Initial Securities pursuant to the Exchange Offer; provided, however, that such
Participating Broker-Dealer may be deemed to be an “underwriter” within the meaning of the
Securities Act and must, therefore, deliver a prospectus meeting the requirements of the Securities
Act in connection with any resales of the Exchange Securities received by such Participating
Broker-Dealer in the Exchange Offer, which prospectus delivery
requirement may be satisfied by the delivery by such Participating Broker-Dealer of the
Prospectus contained in the Exchange Offer Registration Statement. Such Participating
Broker-Dealer must satisfy any other applicable provisions of the Securities Act in connection with
such resales and represent that it did not purchase such Initial Securities to be exchanged in the
Exchange Offer from the Company or any of its affiliates. Such “Plan of Distribution” section
shall also contain all other information with respect to such resales by Participating
Broker-Dealers that the Commission may require in order to permit such resales pursuant thereto,
but such “Plan of Distribution” shall not name any such Participating Broker-Dealer or disclose the
amount of Initial Securities held by any such Participating Broker-Dealer except to the extent
required by the Commission as a result of a change in policy after the date of this Agreement.



The Issuers shall use their commercially reasonable efforts to keep the Exchange Offer
Registration Statement continuously effective, supplemented and amended as required by the
provisions of Section 6(c) hereof to the extent necessary to ensure that it is available for
resales of Initial Securities acquired by Participating Broker-Dealers for their own accounts as a
result of market-making activities or other trading activities, and to ensure that it conforms in
all material respects with the requirements of this Agreement, the Securities Act and the policies,
rules and regulations of the Commission as announced from time to time, for a period ending on the
earlier of (i) 180 days from the date on which the Exchange Offer Registration Statement is
declared effective and (ii) the date on which a Participating Broker-Dealer is no longer required
to deliver a prospectus in connection with market-making or other trading activities; provided
however, if no Holder indicated it is a Broker-Dealer on the letter of transmittal, then Issuers
shall have no duty to keep the Exchange Offer Registration Statement effective after Consummation.



The Company shall furnish as soon as practicable as many copies of the latest version of such
Prospectus to Broker-Dealers as are reasonably requested at any time during such 180-day (or
shorter as provided in the foregoing sentence) period in order to facilitate such resales.


 


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SECTION 4. Shelf Registration.



(a) Shelf Registration. If (i) the Exchange Offer is not permitted by changes in law or
applicable interpretations thereof by the staff of the Commission (after the procedures set forth
in Section 6(a)(i) hereof have been complied with), (ii) for any reason the Exchange Offer is not
Consummated within 255 days after the Initial Placement or (iii) with respect to any Holder of
Transfer Restricted Securities (A) such Holder is prohibited by applicable law or Commission policy
from participating in the Exchange Offer, or (B) such Holder may not resell the Exchange Securities
acquired by it in the Exchange Offer to the public without delivering a prospectus and that the
Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available
for such resales by such Holder or (C) such Holder is a Broker-Dealer and holds Initial Securities
acquired directly from the Issuers or one of its affiliates then, upon such Holder’s or the Initial
Purchaser’s request, the Issuers shall:




(x) as promptly as practicable cause to be filed a shelf registration statement
pursuant to Rule 415 under the Securities Act, which may be an amendment to the Exchange
Offer Registration Statement (in either event, the “Shelf Registration Statement”) on or
prior to the earliest to occur of (1) the later of (x) the 60th day after the date on which
the Company is no longer permitted to file the Exchange Offer Registration Statement and (y)
the 150th day after the Initial Placement (in the case of clause (i) above), (2) the 255th
day after the Initial Placement (in the case of clause (ii) above) and (3) the 45th day
after the date on which the Company receives notice from a Holder of Transfer Restricted
Securities or the Initial Purchaser (in the case of clause (iii) above) (such earliest date
being the “Shelf Filing Deadline”), which Shelf Registration Statement shall provide for
resales of all Transfer Restricted Securities the Holders of which shall have provided the
information required pursuant to Section 4(b) hereof; and




(y) use their commercially reasonable efforts to cause such Shelf Registration
Statement to be declared effective by the Commission on or before the later of (x) the 75th
day after the Shelf Filing Deadline and (y) the 210th day after the Initial Placement.



The Issuers shall use their commercially reasonable efforts to keep such Shelf Registration
Statement continuously effective, supplemented and amended as required by the provisions of
Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available for resales of
Initial Securities by the Holders of Transfer Restricted Securities entitled to the benefit of this
Section 4(a), and to ensure that it conforms in all material respects with the requirements of this
Agreement, the Securities Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period of one year following the Closing Date (or shorter period
that will terminate when all the Initial Securities covered by such Shelf Registration Statement
have been sold pursuant to such Shelf Registration Statement).



(b) Provision by Holders of Certain Information in Connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Securities may include any of its Transfer Restricted
Securities in any Shelf Registration Statement pursuant to this Agreement unless and until such
Holder furnishes to the Company in writing, within 20 Business Days after receipt of a request
therefor, such information as the Company may reasonably request for use in connection with any
Shelf Registration Statement or Prospectus or preliminary Prospectus included therein. Each Holder
as to which any Shelf Registration Statement is being effected agrees to furnish promptly to the
Company all information required to be disclosed in order to make the information previously
furnished to the Company by such Holder not materially misleading.


 


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(c) Suspension. Notwithstanding anything to the contrary and subject to the limitation set
forth in the next succeeding paragraph, at any time after the effectiveness of the Shelf
Registration Statement, each of the Issuers shall be entitled to suspend its obligation to file any
amendment to the Shelf Registration Statement, furnish any supplement or amendment to a Prospectus
included in the Shelf Registration Statement, make any other filing with the Commission, cause the
Shelf Registration Statement or other filing with the Commission to remain effective
or take any similar action (collectively, “Registration Actions”) upon (A) the issuance
by the Commission of a stop order suspending the effectiveness of the Shelf Registration Statement
or the initiation of proceedings with respect to the Shelf Registration Statement under Section
8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence of any fact as
a result of which the Shelf Registration Statement would or shall contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, or the related Prospectus would or shall contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading, (C) the occurrence or existence of any corporate development that, in the
discretion of the Company, makes it appropriate to postpone or suspend the availability of the
Shelf Registration Statement and the related Prospectus or (D) information is required to be set
forth in such Shelf Registration Statement or the prospectus included therein or in an amendment to
the Shelf Registration Statement or an amendment or supplement to such prospectus, in the
reasonable opinion of counsel to the Initial Purchaser or the underwriter(s), if any, in order that
such Shelf Registration Statement, prospectus, amendment or supplement, as the case may be,
complies with applicable requirements of the federal securities laws and the rules and regulations
of the Commission and does not contain an untrue statement of a material fact or omit to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing. Upon the occurrence of any of the
conditions described in clause (A), (B), (C) or (D) above, the Company shall give prompt notice (a
“Suspension Notice”) thereof to the Holders of record. Upon the termination of such condition, the
Company shall give prompt notice thereof to the Holders of record and shall promptly proceed with
all Registration Actions that were suspended pursuant to this paragraph.



The Issuers may only suspend Registration Actions pursuant to the preceding paragraph twice
during any 365-day period (each, a “Suspension Period”) not to exceed, in the aggregate, (x) sixty
days in any three month period or (y) ninety days in any twelve month period, during which no
Additional Interest (as defined in Section 5 hereof) shall be payable. Each Suspension Period
shall be deemed to begin on the date the relevant Suspension Notice is given to the Holders and
shall be deemed to end on the earlier to occur of (1) the date on which the Company gives the
Holders a notice that the Suspension Period has terminated and (2) the date on which the number of
days during which a Suspension Period has been in effect exceeds, in the aggregate, (x) sixty days
in any three month period or (y) ninety days in any twelve month period.


 


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SECTION 5. Additional Interest. Subject to the Issuers’ ability to declare Suspension Periods
with respect to clause (iv) below, if (i) any of the Registration Statements required by this
Agreement is not filed with the Commission on or prior to the date specified for such filing in
this Agreement, (ii) any of such Registration Statements has not been declared effective by the
Commission on or prior to the date specified for such effectiveness in this Agreement (the
“Effectiveness Target Date”), (iii) the Exchange Offer has not been Consummated on or prior to the
date specified for such consummation in this Agreement, (iv) any Registration Statement required by
this Agreement is filed and declared effective but shall thereafter cease to be effective or fail
to be usable for its intended purpose for more than 30 days, other than as may
be permitted during a Suspension Period or (v) Holders are unable to sell the Initial
Securities under Rule 144 under the Securities Act as a result of either Issuers’ failure to meet
the adequate current public information requirement of Rule 144(c)(1) under the Securities Act if
applicable to such Issuer (each such event referred to in clauses (i) through (v), a “Registration
Default”), each of the Issuers and Guarantors jointly and severally hereby agrees to pay additional
interest (“Additional Interest”) in the form of additional interest in cash to each Holder in an
amount equal to 0.25% per annum of the aggregate principal amount of the Transfer Restricted
Securities for the period of occurrence of the Registration Default until such time as no
Registration Default is in effect, which rate shall increase by 0.25% per annum for each subsequent
90-day period during which such Registration Default continues, but in no event shall such increase
exceed 1.00% per annum. Following the cure of all Registration Defaults relating to any particular
Transfer Restricted Securities, the Additional Interest will cease to accrue from the date of such
cure and the interest rate on the Transfer Restricted Securities will revert to the original
interest rate borne by such Transfer Restricted Securities; provided, however, that, if after the
date such Additional Interest ceases to accrue, a different Registration Default occurs, Additional
Interest may again commence accruing pursuant to the foregoing provisions.



Notwithstanding the foregoing, (i) the amount of Additional Interest payable shall not
increase because more than one Registration Default has occurred and is continuing and (ii) a
Holder of Transfer Restricted Securities who is not entitled to the benefits of the Shelf
Registration Statement shall not be entitled to Additional Interest with respect to a Registration
Default that pertains to the Shelf Registration Statement.



All references in the Indenture to “interest” include the Additional Interest payable pursuant
to this Section 5, and all accrued Additional Interest shall be payable to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, as more fully set
forth in the Indenture and the Securities. All obligations of the Issuers and the Guarantors set
forth in the preceding paragraph that are outstanding with respect to any Transfer Restricted
Security at the time such security ceases to be a Transfer Restricted Security shall survive until
such time as all such obligations with respect to such security shall have been satisfied in full.


 


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SECTION 6. Registration Procedures.



(a) Exchange Offer Registration Statement. In connection with the Exchange Offer, each of the
Issuers and Guarantors shall comply with all of the provisions of Section 6(c) hereof, shall use
its commercially reasonable efforts to effect such exchange to permit the sale of Transfer
Restricted Securities being sold in accordance with the intended method or methods of distribution
thereof set forth in the Registration Statement and shall comply with all of the following
provisions:




(i) If in the reasonable opinion of counsel to the Issuers there is a question
as to whether the Exchange Offer is permitted by applicable law, the Issuers hereby
agree to seek a no-action letter or other favorable decision from the
Commission staff allowing the Issuers to Consummate an Exchange Offer for such
Initial Securities. The Issuers hereby agree to pursue the issuance of such a
decision to the Commission staff level but shall not be required to appeal to the
Commission or take commercially unreasonable action to effect a change of Commission
or Commission staff policy. Each of the Issuers hereby agrees, however, to (A)
participate in telephonic conferences with the Commission staff, (B) deliver to the
Commission staff an analysis prepared by counsel to the Issuers setting forth the
legal bases, if any, upon which such counsel has concluded that such an Exchange
Offer should be permitted and (C) diligently pursue a favorable resolution by the
Commission staff of such submission.




(ii) As a condition to its participation in the Exchange Offer pursuant to the terms
of this Agreement, each Holder of Transfer Restricted Securities shall furnish, upon
the request of the Company, prior to the Consummation thereof, a written
representation to the Company (which may be contained in the letter of transmittal
contemplated by the Exchange Offer Registration Statement) to the effect that (A) it
is not an affiliate of either of the Issuers or Guarantors, (B) it is not engaged
in, and does not intend to engage in, and has no arrangement or understanding with
any Person to participate in, a distribution of the Exchange Securities to be issued
in the Exchange Offer, (C) it is acquiring the Exchange Securities in its ordinary
course of business, (D) such Holder is not holding Securities that have the status
of an unsold allotment in the Initial Placement, (E) if such Holder is a
Broker-Dealer, that it will receive Exchange Securities for its own account in
exchange for Transfer Restricted Securities that were acquired as a result of
market-making activities or other trading activities and that it will be required to
acknowledge that it will comply with all applicable provisions of the Securities
Act, including delivering a Prospectus in connection with any resale of such
Exchange Securities, (F) if such Holder is a Broker-Dealer, that it did not purchase
the Transfer Restricted Securities to be exchanged in the Exchange Offer from the
Issuers or any of their affiliates, and (G) it is not acting on behalf of any Person
who could not truthfully and completely make the representations contained in the
foregoing subclauses (A) through (F). In addition, all such Holders of Transfer
Restricted Securities shall otherwise cooperate in the Issuers’ preparations for the
Exchange Offer. Each Holder will further acknowledge and agree that any
Broker-Dealer and any such Holder using the Exchange Offer to participate in a
distribution of the securities to be acquired in the Exchange Offer (1) could not
under Commission policy as in effect on the date of this Agreement rely on the
position of the Commission enunciated in Morgan Stanley and Co., Inc.
(available June 5, 1991) and Exxon Capital Holdings Corporation (available
May 13, 1988), as interpreted in the Commission’s letter to Shearman & Sterling
dated July 2, 1993, and similar no-action letters (which may include any no-action
letter obtained pursuant to clause (i) above) and (2) must comply with the
registration and prospectus delivery requirements of the Securities Act in
connection with a secondary resale transaction and that such a secondary resale
transaction should be covered by an effective registration statement containing the
selling security holder information required by Item 507 or 508, as applicable, of
Regulation S-K if the
resales are of Exchange Securities obtained by such Holder in exchange for Initial
Securities acquired by such Holder directly from the Issuers.


 


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(b) Shelf Registration Statement. In connection with the Shelf Registration Statement, each
of the Issuers and Guarantors shall comply with all the provisions of Section 6(c) hereof and shall
use its commercially reasonable efforts to effect such registration to permit the sale of the
Transfer Restricted Securities being sold in accordance with the intended method or methods of
distribution thereof set forth in such Shelf Registration Statement, and pursuant thereto each of
the Issuers will within the timeframes set forth in Section 4(a)(x), prepare and file with the
Commission a Registration Statement relating to the registration on any appropriate form under the
Securities Act, which form shall be available for the sale of the Transfer Restricted Securities in
accordance with the intended method or methods of distribution thereof set forth in such Shelf
Registration Statement.



(c) General Provisions. Except as otherwise provided, in connection with any Registration
Statement and any Prospectus required by this Agreement to permit the sale or resale of Transfer
Restricted Securities (including, without limitation, any Registration Statement and the related
Prospectus required to permit resales of Initial Securities by Broker-Dealers), each of the Issuers
shall:




(i) use its commercially reasonable efforts to keep such Registration Statement
continuously effective and provide all requisite financial statements for the period
specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event
that would cause any such Registration Statement or the Prospectus contained therein
(A) to contain a material misstatement or omission or (B) not to be effective and
usable for resale of Transfer Restricted Securities during the period required by
this Agreement, the Issuers shall file as promptly as practicable an appropriate
amendment to such Registration Statement, in the case of clause (A), correcting any
such misstatement or omission, and, in the case of either clause (A) or (B), use its
commercially reasonable efforts to cause such amendment to be declared effective and
such Registration Statement and the related Prospectus to become usable for their
intended purpose(s) as soon as practicable thereafter;




(ii) prepare and file with the Commission such amendments and post-effective
amendments to the applicable Registration Statement as may be necessary to keep the
Registration Statement effective for the applicable period set forth in Section 3 or
4 hereof, as applicable, or such shorter period as will terminate when all Transfer
Restricted Securities covered by such Registration Statement have been sold; cause
the Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 under the Securities Act, and to
comply fully with the applicable provisions of Rules 424 and 430A under the
Securities Act in a timely manner; and comply in all material respects with the
provisions of the Securities Act with respect to the
disposition of all securities covered by such Registration Statement during the
applicable period in accordance with the intended method or methods of distribution
by the sellers thereof set forth in such Registration Statement or supplement to the
Prospectus;


 


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(iii) in the case of a Shelf Registration Statement, advise the underwriter(s),
if any, and selling Holders named in the Registration Statement as promptly as
practicable and, if requested by such Persons, to confirm such advice in writing,
(A) when the Prospectus or any Prospectus supplement or post-effective amendment has
been filed, and, with respect to any Registration Statement or any post-effective
amendment thereto, when the same has become effective, (B) of any request by the
Commission for amendments to the Registration Statement or amendments or supplements
to the Prospectus or for additional information relating thereto, (C) of the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement under the Securities Act or of the suspension by any state
securities commission of the qualification of the Transfer Restricted Securities for
offering or sale in any jurisdiction, or the initiation of any proceeding for any of
the preceding purposes and (D) of the existence of any fact or the happening of any
event that makes any statement of a material fact made in the Registration
Statement, the Prospectus, any amendment or supplement thereto, or any document
incorporated by reference therein untrue, or that requires the making of any
additions to or changes in the Registration Statement or the Prospectus in order to
make the statements therein not misleading (provided, however, that no advice by the
Issuers shall be required pursuant to this clause (D) in the event that the Issuers
either promptly file a Prospectus supplement to update the Prospectus or a Form 8-K
or other appropriate Exchange Act report that is incorporated by reference into such
Registration Statement, which, in either case, contains the requisite information
with respect to such event or facts that results in such Registration Statement no
longer containing any untrue statement of material fact or omitting to state a
material fact necessary to make the statements contained therein not misleading).
If at any time the Commission shall issue any stop order suspending the
effectiveness of the Registration Statement, or any state securities commission or
other regulatory authority shall issue an order suspending the qualification or
exemption from qualification of the Transfer Restricted Securities under state
securities or blue sky laws, each of the Issuers shall use its commercially
reasonable efforts to obtain the withdrawal or lifting of such order at the earliest
practicable time;


 


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(iv) in the case of a Shelf Registration or if a Prospectus is required to be
delivered by any Participating Broker-Dealer in the case of an Exchange Offer,
furnish without charge to the Initial Purchaser and each of the underwriters, if
any, before filing with the Commission, copies of any Registration Statement or any
Prospectus included therein or any amendments or supplements to any such
Registration Statement or Prospectus (including all documents to be incorporated by
reference after the initial filing of such Registration Statement, with respect to
such documents to the Initial Purchaser and to the underwriter(s), if any, and not
to the Holders named in the Registration Statement), which documents will be
subject to the review and comment of such Holders, the Initial Purchaser and the
underwriter(s), if any, in connection with such sale, if any, for a period of at
least five Business Days (except in the case of Current Reports on Form 8-K, for
which the review period shall be at least two Business Days), and the Issuers will
not file any such Registration Statement or Prospectus or any amendment or
supplement to any such Registration Statement or Prospectus (including all such
documents incorporated by reference) to which the Initial Purchaser or the
underwriter(s), if any, shall reasonably object in writing within five Business Days
(except in the case of Current Reports on Form 8-K, for which the objection period
shall be within two Business Days) after the receipt thereof (such objection to be
deemed timely made upon confirmation of facsimile transmission within such period).
Notwithstanding the foregoing, the Issuers shall not be required to take any actions
under this Section 6(c)(iv) that are not, in the reasonable opinion of counsel for
the Issuers, in compliance with applicable law or to include any disclosure which at
the time would have an adverse effect on the business or operations of the Company
and/or its subsidiaries, as determined in good faith by the Issuers; provided,
however, that each of the Initial Purchaser, the underwriters, if any, and their
respective legal counsel, accountants or other representatives, shall be required to
maintain in confidence and not to disclose to any other person any information or
records reasonably designated by the Company as being confidential, until such time
as (A) such information becomes a matter of public record (whether by virtue of its
inclusion in such Shelf Registration Statement or otherwise) or (B) such person
shall be required so to disclose such information pursuant to a subpoena or order of
any court or other governmental agency or body having jurisdiction over the matter
(subject to the requirements of such order, and only after such person shall have
given the Company prompt prior written notice of such requirement);




(v) in the case of a Shelf Registration, promptly prior to the filing of any
document that is to be incorporated by reference into a Registration Statement or
Prospectus, provide copies of such document, to the extent requested, to the Initial
Purchaser and to the underwriters, if any, make each of the Issuers’ and Guarantors’
management, officers and other representatives available for discussion of such
document and other customary due diligence matters, and include such information in
such document prior to the filing thereof as the Initial Purchaser or the
underwriter(s), if any, reasonably may request (subject to the confidentiality
obligations set forth in Section 6(c)(iv) above). Notwithstanding the foregoing, the
Issuers shall not be required to take any actions under this Section 6(c)(v) that
are not, in the reasonable opinion of counsel for the Issuers, in compliance with
applicable law;


 


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(vi) in the case of a Shelf Registration or if a Prospectus is required to be
delivered by any Participating Broker-Dealer in the case of an Exchange Offer, make
available at reasonable times for inspection by the Initial Purchaser and the
underwriters, if any, participating in any disposition pursuant to such Registration
Statement and one firm of legal counsel or accountant retained by any of the
foregoing, all financial and other records, pertinent corporate documents and
properties of each of the Issuers and Guarantors reasonably requested by any such
Persons and cause each of the Issuers’ and Guarantors’ officers, directors and
employees to supply all information reasonably requested by any such underwriter,
attorney or accountant in connection with such Registration Statement or any
post-effective amendment thereto subsequent to the filing thereof and prior to its
effectiveness and to be available for discussion of such documents to the extent
reasonably requested by the Initial Purchaser or the underwriters, if any (subject
to the confidentiality obligations set forth in Section 6(c)(iv) above);




(vii) if requested by any selling Holders or the underwriter(s), if any,
promptly incorporate in any Registration Statement or Prospectus, pursuant to a
supplement or post-effective amendment if necessary, such information as such
selling Holders and underwriter(s), if any, may reasonably request to have included
therein, including, without limitation, information relating to the “Plan of
Distribution” of the Transfer Restricted Securities, information with respect to the
principal amount of Transfer Restricted Securities being sold to such
underwriter(s), the purchase price being paid therefor and any other terms of the
offering of the Transfer Restricted Securities to be sold in such offering; and make
all required filings of such Prospectus supplement or post-effective amendment as
soon as practicable after the Company is notified of the matters to be incorporated
in such Prospectus supplement or post-effective amendment;




(viii) in the case of a Shelf Registration, use its commercially reasonable
efforts to cause the Transfer Restricted Securities covered by the Registration
Statement to be rated with the appropriate rating agencies, if so requested by the
Holders of a majority in aggregate principal amount of Securities covered thereby or
the managing underwriter, if any;




(ix) in the case of a Shelf Registration and to the extent such documents are
not available through the Commission’s EDGAR System, furnish to each selling Holder
and each of the underwriter(s), if any, without charge, one copy of the Registration
Statement, as first filed with the Commission, and of each amendment thereto,
including financial statements and schedules (without documents incorporated therein
by reference or exhibits thereto, unless requested);




(x) deliver to (i) in the case of an Exchange Offer, each Participating
Broker-Dealer who submits a written request to the Company and (ii) in the case of a
Shelf Registration Statement, each selling Holder and each of the underwriter(s), if
any, without charge, as many copies of the Prospectus (including each preliminary
prospectus) and any amendment or supplement thereto as such Persons reasonably may
request; subject to the final paragraph of this Section 6(c), each of the Issuers
and Guarantors hereby consents to the use of the Prospectus and any amendment or
supplement thereto by each of the selling Holders and
each of the underwriter(s), if any, in connection with the offering and the
sale of the Transfer Restricted Securities covered by the Prospectus or any
amendment or supplement thereto in compliance with applicable law;


 


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(xi) in the case of a Shelf Registration Statement, enter into such customary
agreements (including an underwriting agreement if such registration is an
Underwritten Registration), and make such customary representations and warranties,
and take all such other customary and appropriate actions in connection therewith in
order to expedite or facilitate the disposition of the Transfer Restricted
Securities pursuant to any Shelf Registration Statement contemplated by this
Agreement, all to such extent as may be reasonably requested by any Holder of
Transfer Restricted Securities or underwriter in connection with any sale or resale
pursuant to any Shelf Registration Statement contemplated by this Agreement; and if
the registration is an Underwritten Registration, each of the Issuers and Guarantors
shall:




(A) to the extent reasonably requested, furnish to the Initial Purchaser, each
selling Holder and the underwriters, in such substance and scope as they may
reasonably request and as are customarily made by issuers to underwriters in primary
underwritten offerings, upon the effectiveness of the Shelf Registration Statement:




(1) a certificate, dated the date of effectiveness of the Shelf
Registration Statement, signed by (y) the President or any Vice President
and (z) a principal financial or accounting officer of each of the Issuers
and Guarantors, confirming, as of the date thereof, the matters set forth in
Section 7(l) of the Purchase Agreement that are qualified as to materiality
are true and correct, the matters set forth in Section 7(l) of the Purchase
Agreement that are not so qualified are true and correct in all material
respects and such other matters as such parties may reasonably request;




(2) an opinion, dated the date of effectiveness of the Shelf
Registration Statement, of counsel for the Issuers and the Guarantors,
covering the matters that are customarily covered in opinions requested in
an underwritten offering, and in any event including a statement to the
effect that such counsel has participated in conferences with
representatives of the Issuers and the Guarantors, representatives of the
independent public accountants for the Issuers and the Guarantors and
representatives of the underwriter(s) and counsel to the underwriter(s) in
connection with the preparation of such Registration Statement and the
related Prospectus and has considered the matters required to be stated
therein and the statements contained therein, although such counsel has not
independently verified such information and is not passing upon and does not
assume any responsibility for the accuracy, completeness or fairness of such
information; and that such counsel advises that, on the basis of the
foregoing, no facts came to such counsel’s


 


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attention that caused such
counsel to believe that the applicable Registration Statement, at the time such Registration
Statement or any post-effective amendment thereto became effective,
contained any untrue statement of a material fact or omitted to state any
material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading, or
that the Prospectus contained in such Registration Statement as of its date,
contained any untrue statement of a material fact or omitted to state any
material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.
Without limiting the foregoing, such counsel may state further that such
counsel expresses no opinion, assumes no responsibility for, and has not
independently verified, the accuracy, completeness or fairness of the
financial statements (including the notes thereto), other financial data and
production, capacity and cost data, and information pertaining to coal
reserves and reserve engineering data (including geologic information)
contained in or omitted from any Registration Statement contemplated by this
Agreement or the related Prospectus; and




(3) customary comfort letters, dated the date of effectiveness of the
Shelf Registration Statement, from the Company’s independent accountants, in
the customary form and covering matters of the type customarily requested to
be covered in comfort letters by underwriters in connection with primary
underwritten offerings, and covering or affirming the matters set forth in
the comfort letters delivered pursuant to Sections 7(g), (h) and (i) of the
Purchase Agreement without exception;




(B) set forth in full or incorporate by reference in the underwriting
agreement, the indemnification provisions and procedures of Section 8 hereof with
respect to all parties to be indemnified pursuant to said Section; and




(C) deliver such other documents and certificates as may be reasonably
requested by such parties and as are customarily delivered in similar offerings to
evidence compliance with Section 6(c)(xi)(A) hereof and with any customary
conditions contained in the underwriting agreement or other agreement entered into
by either of the Issuers or any of the Guarantors pursuant to this Section 6(c)(xi),
if any.




If at any time the representations and warranties of the Issuers and the Guarantors
contemplated by the certificate furnished pursuant to Section 6(c)(xi)(A)(1) hereof cease to
be true and correct (which certificate will be delivered as of the date of effectiveness of
the Shelf Registration Statement) the Issuers or the Guarantors shall so advise the Initial
Purchaser and the underwriter(s), if any, and each selling Holder promptly and, if requested
by such Persons, shall confirm such advice in writing;


 


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(xii) in the case of a Shelf Registration Statement, prior to any public
offering of Transfer Restricted Securities, use its commercially reasonable efforts
to cooperate with the selling Holders, the underwriter(s), if any, and their
respective counsel in connection with the registration and qualification of the
Transfer Restricted Securities under the state securities or blue sky laws of such
jurisdictions as the selling Holders or underwriter(s), if any, may reasonably
request in writing by the time the Shelf Registration Statement is declared
effective by the Commission, it being agreed that no such registration or
qualification will be made unless so requested, and use its commercially reasonable
efforts to do any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Transfer Restricted Securities covered by
the Shelf Registration Statement; provided, however, that none of the Issuers or the
Guarantors shall be required to register or qualify as a foreign corporation where
it is not then so qualified or to take any action that would subject it to the
service of process in suits or to taxation in any jurisdiction where it is not then
so subject;




(xiii) shall issue, upon the request of any Holder of Initial Securities
covered by the Exchange Offer Registration Statement, Exchange Securities having an
aggregate principal amount equal to the aggregate principal amount of Initial
Securities surrendered to the Company by such Holder in exchange therefor or being
sold by such Holder; such Exchange Securities to be registered in the name of such
Holder or in the name of the purchaser(s) of such Securities, as the case may be; in
return, the Initial Securities held by such Holder shall be surrendered to the
Company for cancellation;




(xiv) in the case of a Shelf Registration, cooperate with the selling Holders
and the underwriter(s), if any, to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities to be sold and not bearing
any restrictive legends; and enable such Transfer Restricted Securities to be in
such denominations and registered in such names as the Holders or the
underwriter(s), if any, may request at least three Business Days prior to any sale
of Transfer Restricted Securities made by such Holders or underwriter(s);




(xv) use its commercially reasonable efforts to cause the Transfer Restricted
Securities covered by the Registration Statement to be registered with or approved
by such other governmental agencies or authorities, if any, as may be necessary to
enable the seller or sellers thereof or the underwriter(s), if any, to consummate
the disposition of such Transfer Restricted Securities, subject to the proviso
contained in Section 6(c)(xii) hereof;




(xvi) if any fact or event contemplated by Section 6(c)(iii)(D) hereof shall
exist or have occurred, use its commercially reasonable efforts to prepare a
supplement or post-effective amendment to the Registration Statement or related
Prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of Transfer
Restricted Securities, the Prospectus will not contain at the time of such delivery
any untrue statement of a material fact or omit to state a material fact necessary
to
make the statements therein, in light of the circumstances under which they
were made, not misleading;


 


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(xvii) provide a CUSIP number for all Exchange Securities not later than the
effective date of the Registration Statement covering such Securities and provide
the Trustee under the Indenture with any necessary printed certificates for such
Securities which are in a form eligible for deposit with The Depository Trust
Company;




(xviii) reasonably cooperate and assist in any filings required to be made with
FINRA and in the performance of any due diligence investigation by any underwriter
(including any “qualified independent underwriter”) that is required to be retained
in accordance with the rules and regulations of FINRA;




(xix) otherwise use its commercially reasonable efforts to comply in all
material respects with all applicable rules and regulations of the Commission, and
make generally available to its securityholders, as soon as practicable, a
consolidated earnings statement meeting the requirements of Rule 158 of the
Securities Act (which need not be audited) for the twelve-month period (A)
commencing at the end of any fiscal quarter in which Transfer Restricted Securities
are sold to underwriters in a firm commitment or best efforts Underwritten Offering
or (B) if not sold to underwriters in such an offering, beginning with the first
month of the Company’s first fiscal quarter commencing after the effective date of
the Registration Statement;




(xx) cause the Indenture to be qualified under the Trust Indenture Act not
later than the effective date of the first Registration Statement required by this
Agreement, and, in connection therewith, cooperate with the Trustee and the Holders
of Securities to effect such changes to the Indenture as may be required for such
Indenture to be so qualified in accordance with the terms of the Trust Indenture
Act; and to execute and use its commercially reasonable efforts to cause the Trustee
to execute, all documents that may be required to effect such changes and all other
forms and documents required to be filed with the Commission to enable such
Indenture to be so qualified in a timely manner; and




(xxi) cause all Securities covered by the Registration Statement to be listed
on each securities exchange or automated quotation system on which similar debt
securities issued by the Issuers are then listed if reasonably requested by the
Holders of a majority in aggregate principal amount of Initial Securities or the
managing underwriter(s), if any.


 


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Each Holder shall agree by acquisition of a Transfer Restricted Security that, upon (i)
receipt of any notice from the Company of the existence of any fact of the kind described in
Section 6(c)(iii)(D) hereof, or (ii) a Suspension Period, such Holder will forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the applicable Registration Statement
until such Holder’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 6(c)(xvi) hereof, or until it is advised in writing (the “Advice”) by
the Company that the use of the Prospectus may be resumed, and has received copies of any
additional or supplemental filings that are incorporated by reference in the Prospectus. If so
directed by the Company, each Holder will deliver to the Company (at such Holder’s expense) all
copies, other than permanent file copies then in such Holder’s possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of receipt of such
notice. In the event the Company shall give any such notice, the time period regarding the
effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable,
shall be extended by the number of days during the period from and including the date of the giving
of such notice described in (i) or (ii) of this paragraph to and including the date when each
selling Holder covered by such Registration Statement shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof or shall have received
the Advice.




SECTION 7. Registration Expenses.



(a) All expenses incident to the Issuers’ and the Guarantors’ performance of or compliance
with this Agreement will be borne by the Issuers and the Guarantors, jointly and severally,
regardless of whether a Registration Statement becomes effective, including, without limitation:
(i) all registration and filing fees and expenses (including filings made by the Initial Purchaser
with FINRA (and, if applicable, the fees and expenses of any “qualified independent underwriter”
and its counsel that may be required by the rules and regulations of FINRA)); (ii) all fees and
expenses of compliance with federal securities and state securities or blue sky laws; (iii) all
expenses of printing (including printing certificates for the Exchange Securities to be issued in
the Exchange Offer and printing of Prospectuses), messenger and delivery services and telephone;
(iv) all fees and disbursements of counsel for the Issuers and the Guarantors and, to the extent
provided for in Section 7(b) hereof, the Holders of Transfer Restricted Securities; (v) all
application and filing fees in connection with listing the Exchange Securities on a securities
exchange or automated quotation system pursuant to the requirements thereof; and (vi) all fees and
disbursements of independent certified public accountants of the Issuers and the Guarantors
(including the expenses of any special audit and comfort letters required by or incident to such
performance).



Each of the Issuers and Guarantors will, in any event, bear its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses of any Person,
including special experts, retained by the Issuers or the Guarantors.



(b) In connection with any Shelf Registration Statement required by this Agreement, the
Issuers and the Guarantors, jointly and severally, will reimburse the Initial Purchaser and the
Holders of Transfer Restricted Securities being registered pursuant to the Shelf Registration
Statement, for the reasonable fees and disbursements of not more than one counsel, who shall be
Paul, Weiss, Rifkind, Wharton & Garrison LLP or such other counsel as may be
chosen by the Holders of a majority in principal amount of the Transfer Restricted Securities
for whose benefit such Registration Statement is being prepared.


 


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Each Holder shall pay all underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of such Holder’s Transfer Restricted Securities pursuant to a
Shelf Registration Statement.




SECTION 8. Indemnification.



(a) Each of the Issuers and Guarantors, jointly and severally, agrees to indemnify and hold
harmless (i) each Holder and (ii) each Person, if any, who controls (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) any Holder (any of the Persons referred
to in this clause (ii) being hereinafter referred to as a “controlling person”) and (iii) the
respective officers, directors, partners, employees, representatives and agents of any Holder or
any controlling person (any Person referred to in clause (i), (ii) or (iii) may hereinafter be
referred to as an “Indemnified Holder”), to the fullest extent lawful, from and against any and all
losses, claims, damages, liabilities, judgments, actions and expenses (including, without
limitation, and as incurred, reimbursement of all reasonable costs of investigating, preparing,
pursuing, settling, compromising, paying or defending any claim or action, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, including the reasonable
fees and expenses of any one firm of legal counsel to any Indemnified Holder), arising out of or
based upon any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement or Prospectus (or any amendment or supplement thereto), or any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not
misleading, except insofar as such losses, claims, damages, liabilities or expenses arise out of an
untrue statement or omission or alleged untrue statement or omission that is made in reliance upon
and in conformity with information relating to any of the Holders furnished in writing to the
Company by any of the Holders expressly for use therein; provided, that this indemnity agreement
shall not apply to any loss, claim, damage, liability or expense arising from an offer or sale of
Transfer Restricted Securities occurring during a Suspension Period, if a notice of such Suspension
Period was given to and received by such Person. This indemnity agreement shall be in addition to
any liability which the Issuers and the Guarantors may otherwise have.


 


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In case any action or proceeding (including any governmental or regulatory investigation or
proceeding) shall be brought or asserted against any of the Indemnified Holders with respect to
which indemnity may be sought against the Issuers or the Guarantors, such Indemnified Holder (or
the Indemnified Holder controlled by such controlling person) shall promptly notify the Issuers and
the Guarantors in writing; provided, however, that the failure to give such notice shall not
relieve any of the Issuers or the Guarantors of its obligations pursuant to this Agreement to the
extent it is not materially prejudiced as a proximate result of such failure. Each of the Issuers
and Guarantors may participate at its own expense in the defense of such action. If any such
action or proceeding shall be brought against any Indemnified Holder, the Issuers and
Guarantors shall be entitled to participate therein and to assume the defense thereof with
counsel reasonably satisfactory to such Indemnified Holder. After notice from the Issuers and the
Guarantors to such Indemnified Holder of their election to assume the defense of such action or
proceeding, the Issuers and the Guarantors shall not be liable to such Indemnified Holder under
this Section 8 for any legal or other expenses subsequently incurred by such Indemnified Holder in
connection with the defense thereof other than reasonable costs of investigation; provided,
however, that such Indemnified Holder shall have the right to employ counsel to represent jointly
such Indemnified Holder and its respective directors, officers, employees and controlling persons
who may be subject to liability arising out of any claim in respect of which indemnity may be
sought by any Indemnified Holder against the Issuers or any Guarantor under this Section 8, if (i)
the Issuers, the Guarantors and such Indemnified Holder shall have so mutually agreed; (ii) the
Issuers and the Guarantors have failed within a reasonable time to retain counsel reasonably
satisfactory to such Indemnified Holder; (iii) such Indemnified Holder and its directors, officers,
employees and controlling persons shall have reasonably concluded, based on the advice of counsel,
that there may be legal defenses available to them that are different from or in addition to those
available to the Issuers and the Guarantors; or (iv) the named parties in any such proceeding
(including any impleaded parties) include both such Indemnified Holder or its directors, officers,
employees or controlling persons, on the one hand, and the Issuers and the Guarantors, on the other
hand, and representation of both sets of parties by the same counsel would present a conflict due
to actual or potential differing interests between them, and in any such event the fees and
expenses of one firm of such separate counsel shall be paid by the Issuers and the Guarantors. The
Issuers and the Guarantors shall be liable for any settlement of any such action or proceeding
effected with the Issuers’ and the Guarantors’ prior written consent, which consent shall not be
withheld unreasonably, and each of the Issuers and Guarantors agrees to indemnify and hold harmless
any Indemnified Holder from and against any loss, claim, damage, liability or expense by reason of
any settlement of any action effected with the written consent of the Issuers and the Guarantors.
The Issuers and the Guarantors shall not, without the prior written consent of each Indemnified
Holder, which shall not be withheld unreasonably, settle or compromise or consent to the entry of
judgment in or otherwise seek to terminate any pending or threatened action, claim, litigation or
proceeding in respect of which indemnification or contribution may be sought hereunder (whether or
not any Indemnified Holder is a party thereto), unless such settlement, compromise, consent or
termination includes an unconditional release of each Indemnified Holder from all liability arising
out of such action, claim, litigation or proceeding.



(b) Each Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless the Issuers and the Guarantors and their respective directors and
officers who sign a Registration Statement, and any Person controlling (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) any of the Issuers or
Guarantors and the respective officers, directors, partners, employees, representatives and agents
of each such Person, to the same extent as the foregoing indemnity from the Issuers and the
Guarantors to each of the Indemnified Holders, but only with respect to claims and actions based on
information relating to such Holder furnished in writing by such Holder expressly for use in any
Registration Statement. In case any action or proceeding shall be brought against any of the
Issuers or Guarantors or their respective officers, directors, partners, employees,
representatives, agents or any such controlling person in respect of which indemnity may be sought
against a Holder of Transfer Restricted Securities, such Holder shall have the rights and
duties given the Issuers and the Guarantors, and the Issuers, the Guarantors and their respective
officers, directors, partners, employees, representatives, agents and such controlling person shall
have the rights and duties given to each Holder by the preceding paragraph.


 


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(c) If the indemnification provided for in this Section 8 is unavailable to an indemnified
party under Section 8(a) or (b) hereof (other than by reason of exceptions provided in those
Sections) in respect of any losses, claims, damages, liabilities, judgments, actions or expenses
referred to therein, then each applicable indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, liabilities or expenses in such proportion as is
appropriate to reflect the relative benefits received by the Issuers and the Guarantors, on the one
hand, and the Holders, on the other hand, from the Initial Placement (which, in the case of the
Issuers and the Guarantors, shall be deemed to be equal to the total gross proceeds to the Issuers
and the Guarantors from the Initial Placement), the amount of Additional Interest which did not
become payable as a result of the filing of the Registration Statement resulting in such losses,
claims, damages, liabilities, judgments actions or expenses, and such Registration Statement, or if
such allocation is not permitted by applicable law, the relative fault of the Issuers and the
Guarantors, on the one hand, and the Holders, on the other hand, in connection with the statements
or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative fault of the Issuers and the Guarantors
on the one hand and of the Indemnified Holder on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Issuers and the Guarantors, on the one hand, or the Indemnified Holders, on the other hand, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The amount paid or payable by a party as a result of the losses,
claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to
the limitations set forth in the second paragraph of Section 8(a) hereof, any legal or other fees
or expenses reasonably incurred by such party in connection with investigating or defending any
action or claim.



The Issuers, the Guarantors and each Holder of Transfer Restricted Securities agree that it
would not be just and equitable if contribution pursuant to this Section 8(c) were determined by
pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any
other method of allocation which does not take account of the equitable considerations referred to
in the immediately preceding paragraph. The amount paid or payable by an indemnifying party as a
result of the losses, claims, damages, liabilities or expenses referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 8, none of the Holders (and its related Indemnified Holders) shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the net proceeds received
(in respect of a Shelf Registration) or relative benefits (in respect of the Exchange Offer) by
such Holder with respect to the Initial Securities exceeds the amount of any damages which such
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute
pursuant to this Section 8(c) are several in proportion to the respective principal amount of
Initial Securities held by each of the Holders hereunder and not joint.


 


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(d) The remedies provided for in this Section 8 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified Holder at law or equity.



(e) The indemnity and contribution provisions contained in this Section 8 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Initial Purchaser, any Holder or any Person
controlling the Initial Purchaser or any Holder, or by or on behalf of the Issuers or the
Guarantors or the officers or directors of or any Person controlling the Issuers or the Guarantors,
(iii) acceptance of any of the Transfer Restricted Securities and (iv) any sale of Transfer
Restricted Securities pursuant to a Shelf Registration Statement.



SECTION 9. Rule 144A. Each of the Issuers and Guarantors hereby agrees with each Holder, for
so long as any Transfer Restricted Securities remain outstanding, at any time that the Company is
not subject to either Section 13 or 15(d) of the Exchange Act or the Company is not in material
compliance with its Exchange Act reporting obligations, to make available to any Holder or
beneficial owner of Transfer Restricted Securities in connection with any sale thereof and any
prospective purchaser of such Transfer Restricted Securities from such Holder or beneficial owner,
the information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of
such Transfer Restricted Securities pursuant to Rule 144A under the Securities Act.



SECTION 10. Underwritten Registrations. No Holder may participate in any Underwritten
Registration hereunder unless such Holder (a) agrees to sell such Holder’s Transfer Restricted
Securities on the basis provided in any underwriting arrangements approved by the Persons entitled
hereunder to approve such arrangements and (b) completes and executes all reasonable
questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up letters and other
documents required under the terms of such underwriting arrangements.



SECTION 11. Selection of Underwriters. The Holders of at least 25% of the Transfer Restricted
Securities covered by the Shelf Registration Statement who desire to do so may sell such Transfer
Restricted Securities in an Underwritten Offering. In any such Underwritten Offering, the
investment banker(s) and managing underwriter(s) that will administer such offering will be
selected by the Company and shall be reasonably acceptable to the Holders of a majority in
aggregate principal amount of such Transfer Restricted Securities included in such offering;
provided, however that the Company shall not be required to pay more than an
aggregate of $100,000 of registration related expenses, in addition to internal expenses of the
Issuers (including, without limitation, salaries of officers and employees performing legal and
accounting duties) in connection with any such underwritten offering.


 


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SECTION 12. Miscellaneous.



(a) Remedies. Each of the Issuers and Guarantors hereby agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of
this Agreement and hereby agree to waive the defense in any action for specific performance that a
remedy at law would be adequate.



(b) No Inconsistent Agreements. Each of the Issuers and Guarantors will not on or after the
date of this Agreement enter into any agreement with respect to its securities that is inconsistent
with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. The rights granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of any of the Issuers’ or Guarantors’
securities under any agreement in effect on the date hereof.



(c) Adjustments Affecting the Securities. The Company will not take any action, or permit any
change to occur, with respect to the Securities that would materially and adversely affect the
ability of the Holders to Consummate any Exchange Offer.



(d) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions hereof may not be given
unless the Company has (i) in the case of Section 5 hereof and this Section 12(d)(i), obtained the
written consent of Holders of all outstanding Transfer Restricted Securities and (ii) in the case
of all other provisions hereof, obtained the written consent of Holders of a majority of the
outstanding principal amount of Transfer Restricted Securities affected by such amendment,
modification, supplement, waiver or departure.



(e) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, first-class mail (registered or certified, return receipt
requested), facsimile or air courier guaranteeing overnight delivery:




(i) if to a Holder, at the address set forth on the records of the Registrar
under the Indenture, with a copy to the Registrar under the Indenture; and


 


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(ii) if to the Company, Westmoreland Partners or any of the Guarantors:




Westmoreland Coal Company

2 North Cascade Avenue, 2nd Floor

Colorado Springs, CO 80903

Facsimile: 719-448-5826

Attention: Jennifer S. Grafton, Esq.




With a copy to:

Davis Graham & Stubbs LLP

1550 Seventeenth Street, Suit 500

Denver, CO 80202

Facsimile: 303-893-1379

Attention: John A. Elofson, Esq.



All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when transmission is confirmed by sender’s facsimile machine, if faxed;
and on the next Business Day, if timely delivered to an air courier guaranteeing overnight
delivery.



Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address specified in the Indenture.



(f) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including, without limitation, and without the
need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that this Agreement shall not inure to the benefit of or be binding upon a successor or
assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted
Securities from such Holder. Nothing herein shall be deemed to permit any assignment, transfer or
other disposition of Transfer Restricted Securities in violation of the terms of the Purchase
Agreement or the Indenture.



(g) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.



(h) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.



(i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.


 


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(j) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.



(k) Entire Agreement. This Agreement together with the Purchase Agreement, the Indenture, the
Securities and any related documents is intended by the parties as a final expression of their
agreement and intended to be a complete and exclusive statement of the agreement and understanding
of the parties hereto in respect of the subject matter contained herein. There are no
restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Issuers with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and understandings between
the parties with respect to such subject matter.



[Signature Pages Follow]



 


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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	WESTMORELAND COAL COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith E. Alessi	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Keith E. Alessi	 	 
	 	 	 	 	Title:	 	Chief Executive Officer and President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	WESTMORELAND PARTNERS	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Westmoreland-Roanoke Valley, L.P.

its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	WEI-Roanoke Valley, Inc.,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Jennifer S. Grafton	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Jennifer S. Grafton	 	 
	 

	 	 	 	 	 	Title:
	 	General Counsel and Secretary	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Westmoreland-North Carolina Power, L.L.C.,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Jennifer S. Grafton	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name:	 	Jennifer S. Grafton	 	 
	 	 	 	 	 	 	Title:	 	General Counsel and Secretary	 	 






[Signature page to the Registration Rights Agreement]





 


 









 







	 	 	 	 	 
	 	WESTMORELAND ENERGY LLC

 	 
	 	By:  	/s/ Jennifer S. Grafton
 	 
	 	 	Name:  	Jennifer S. Grafton 	 
	 	 	Title:  	General Counsel and Secretary 	 
	 
	 	WESTMORELAND - NORTH CAROLINA POWER, L.L.C.

 	 
	 	By:  	/s/ Jennifer S. Grafton
 	 
	 	 	Name:  	Jennifer S. Grafton 	 
	 	 	Title:  	General Counsel and Secretary 	 
	 
	 	WEI-ROANOKE VALLEY, INC.

 	 
	 	By:  	/s/ Jennifer S. Grafton
 	 
	 	 	Name:  	Jennifer S. Grafton 	 
	 	 	Title:  	General Counsel and Secretary 	 
	 
	 	WESTMORELAND RESOURCES, INC.

 	 
	 	By:  	/s/ Jennifer S. Grafton
 	 
	 	 	Name:  	Jennifer S. Grafton 	 
	 	 	Title:  	General Counsel and Secretary 	 



[Signature page to the Registration Rights Agreement]





 


 









 







	 	 	 	 	 
	 	WRI PARTNERS, INC. 

 	 
	 	By:  	/s/ Jennifer S. Grafton
 	 
	 	 	Name:  	Jennifer S. Grafton 	 
	 	 	Title:  	General Counsel and Secretary 	 
	 
	 	WESTMORELAND MINING SERVICES, INC.

 	 
	 	By:  	/s/ Jennifer S. Grafton
 	 
	 	 	Name:  	Jennifer S. Grafton 	 
	 	 	Title:  	General Counsel and Secretary 	 
	 
	 	WESTMORELAND COAL SALES COMPANY, INC.

 	 
	 	By:  	/s/ Jennifer S. Grafton
 	 
	 	 	Name:  	Jennifer S. Grafton 	 
	 	 	Title:  	General Counsel and Secretary 	 
	 
	 	WESTMORELAND POWER, INC.

 	 
	 	By:  	/s/ Jennifer S. Grafton
 	 
	 	 	Name:  	Jennifer S. Grafton 	 
	 	 	Title:  	General Counsel and Secretary 	 



[Signature page to the Registration Rights Agreement]





 


 









 







	 	 	 	 	 	 	 	 	 	 	 
	 	 	WCC LAND HOLDING COMPANY, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jennifer S. Grafton	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Jennifer S. Grafton	 	 
	 	 	 	 	Title:	 	General Counsel and Secretary	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	WESTMORELAND-ROANOKE VALLEY, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	WEI-Roanoke Valley, Inc.,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Jennifer S. Grafton	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Jennifer S. Grafton	 	 
	 

	 	 	 	 	 	Title:
	 	General Counsel and Secretary	 	 






[Signature page to the Registration Rights Agreement]





 


 









 






The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date
first above written:



	 	 	 	 	 
	 	GLEACHER & COMPANY SECURITIES, INC.

 	 
	 	By:  	/s/ Tim O’Connor
 	 
	 	 	Name:  	Tim O’Connor 	 
	 	 	Title:  	Managing Director 	 



[Signature page to the Registration Rights Agreement]





 


 









 







SCHEDULE I




GUARANTORS





1. Westmoreland Energy LLC, a Delaware limited liability company;



2. Westmoreland - North Carolina Power L.L.C., a Virginia limited liability company;



3. WEI-Roanoke Valley, Inc., a Delaware corporation;



4. Westmoreland -  Roanoke Valley, L.P., a Delaware limited partnership;



5. Westmoreland Resources, Inc., a Delaware corporation;



6. WRI Partners, Inc., a Delaware corporation;



7. Westmoreland Mining Services, Inc., a Delaware Corporation;



8. Westmoreland Coal Sales Company, Inc., a Delaware corporation;



9. Westmoreland Power, Inc., a Delaware corporation; and



10. WCC Land Holding Company, Inc., a Delaware corporation.