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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETED ASTERISKS [*], HAS BEEN OMITTED PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED BECAUSE IT IS BOTH (I) NOT MATERIAL and (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED

MASTER AGREEMENT FOR 
SUPPLY OF FURNACE PRODUCTS  

This Master Agreement for Supply of Furnace Products (“Agreement”) is entered into as of the 30th day of September, 2020 (“Effective Date”) by and between ADA Carbon Solutions (Red River), LLC (“ADACS” or “Supplier”), and Cabot Norit Americas, Inc., a Georgia corporation (“Norit” or “Buyer”).  Buyer and Supplier are also referred to herein individually as a “Party” and collectively as the “Parties.”

In consideration of the mutual covenants and premises contained herein, the Parties agree as follows:

1.Product.  Supplier agrees to sell and deliver to Buyer, and Buyer agrees to purchase and accept from Supplier, certain lignite-based activated carbon products set forth on Exhibit A (“Product(s)”) on the terms set forth herein.  
2.Requirements.  Buyer shall purchase from Supplier and Supplier shall supply Buyer within each Contract Year during the Term (“Contract Year” and “Term” are defined in Section 12 below) the amount of Product(s) needed by Buyer to meet 100% of Buyer’s requirements of  lignite-based powder activated carbon (“PAC”) and granular (greater  than [*]) activated carbon (“GAC”) for customer sales in North America (the “Required Quantity”); provided, however that subject to Section 4(a) Buyer may procure up to [*] pounds of such requirements for Product(s) produced at its plant in Estevan, Saskatchewan, Canada each Contract Year.  It is understood that during the first and second Contract Years Buyer’s purchases will be limited until all Products are transitioned to Buyer’s customers and Buyer has utilized existing inventories of its own products.  Supplier agrees that a maximum of [*] pounds of Product shall be available to Buyer during each Contract Year for the Product grade mix in Exhibit B with future Contract Year maximums to be adjusted based on reasonable difference in yield and furnace hours (the “Maximum Annual Quantity”). 
3.Additional Quantities.  Each Contract Year Buyer may purchase additional quantities of Product(s) produced by Supplier and not used by Supplier for supplying its own customers or for research and development purposes (“Available Capacity”). Supplier will advise Buyer of its Available Capacity sixty  days in advance of the next Contract Year.  Buyer will have the first right to purchase additional quantities of Product(s) until the beginning of the next Contract Year (the “Additional Quantity”).  Any such Additional Quantity requested by Buyer shall be added to Supplier’s supply obligation for next Contract Year. After the start of the Contract Year, Buyer may purchase from the Available Capacity at Supplier’s sole discretion, pending Supplier’s other commitments.  Additional Quantities are amounts in excess of the Annual Target Volume (defined in Section 4(a) below), and may be in excess of the Maximum Annual Quantity.  Any agreement by the Parties for the Additional Quantity shall not alter future years’ Annual Target Volume or Supplier’s Maximum Annual Quantity in future years.
4.Annual Target Volume.  
The volume of Product that Supplier shall supply and Buyer shall purchase each Contract Year is the “Annual Target Volume”.  For the period between the Effective Date and the end of the first two full Contract Years, the Annual Target Volume for each full Contract Year shall be equal to Buyer’s good-faith projections for such Contract Year; subject to the second sentence of Section 2.  For the Third Contract Year, the Annual Target Volume shall be at least the lesser of [*] of the Supplier’s Required Quantity for the Third Contract Year or the Maximum Annual Quantity.   For subsequent Contract Years, on or before [*] of each year, the Parties shall agree upon the Annual Target Volume for the upcoming Contract Year, which shall not be less than [*] nor more than [*] of 

the current Contract Year’s Annual Target Volume, up to the Maximum Annual Quantity, normalized for  the Product mix.  Provided, however, 

(a)If Buyer’s good faith projected Annual Target Volume is greater than (A) [*] of the current year’s Annual Target Volume, or (B) the Maximum Annual Quantity, then the Annual Target Volume for the upcoming Contract Year shall be permitted to be up to Supplier’s Available Capacity for the Products.  In the event that Supplier is unable to provide all of the additional volumes, then Buyer shall be entitled to procure its remaining requirements for Products from any source, including but not limited to its plant in Estevan, Saskatchewan, Canada. 

(b)The Annual Target Volume range permissible in succeeding Contract Years as a function of the Annual Target Volume in the current Contract Year is illustrated in Exhibit C.
 
(c)Subject to the foregoing limitations, in each Contract Year Supplier shall supply up to [*] of the hours required  to produce  Annual Target Volume of each Product grade and Buyer shall purchase a minimum of [*] of the hours required to produce  Annual Target Volume of each Product grade.  If, during any Contract Year, Buyer’s demand for Product exceeds [*] of the hours required to produce Annual Target Volume for such Product, then Buyer shall notify Supplier and the Parties shall discuss Supplier’s ability to supply.  In the event that Supplier is unable to provide all of the additional volumes from Available Capacity, then Buyer shall be entitled to procure its remaining requirements for Products from any source.
5.Price.  Buyer agrees to purchase from Supplier the Product(s) at a price per pound (the “Product Price”) equal to (i) [*] of the per pound Budget Standard Cash Cost (as defined below) for such grade  of Product produced by Supplier at its facilities in Coushatta and Natchitoches, Louisiana (collectively, the “Supplier Facilities”), plus (ii) the per pound Annual Capital Charge for Shared Capital Investments (as defined below). An illustrative example of the calculation of Standard Cash Cost, Annual Capital Charge for Shared Capital Investments, and Product Price is set forth on Exhibit D.  
(a)Standard Cash Cost. The “Standard Cash Cost” shall be the same as the standard cash cost for Product grade(s) produced by Supplier for its own third party sales after correcting for reasonable and documented differences in yield, throughput (output per hour) and operating cost as illustrated in Exhibit E.  On or before [*] of each Contract Year Supplier shall provide to Buyer its calculation of Supplier’s Standard Cash Cost for each Product grade the Buyer requests, and the Parties shall agree in writing on the Standard Cash Cost for each Product grade for the next Contract Year (“Budget Standard Cash Cost”) on or before [*] of each Contract Year. 

(b)Shared Capital Investment.  Before [*] of each Contract Year during the Term, both parties shall mutually agree on capital investments that are needed in order to supply the Annual Target Volume for the next Contract Year (“Shared Annual Capital Investment Plan”).  The Shared Annual Capital Investment Plan for the next Contract Year and changes to such plan shall be subject to mutual agreement of the Parties, with a good faith effort made to ensure such investments are reasonable and cost-effective, recognizing that certain capital investments related to safety, environmental compliance and plant reliability are time sensitive and both Parties shall use good faith efforts to make decisions in a timely manner.  Buyer agrees that any objection to Supplier’s proposed Shared Annual Capital Investment Plan or any component thereof shall be based on articulable technical or value engineering reasons and not solely on the basis of cost.  An illustration of such investments is set forth in Exhibit F. 

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(c)Semi-Annual Capital Charge for Shared Capital Investment. The “Semi-Annual Capital Charge for Shared Capital Investments” for each Contract Year is the cost of investments Placed in Service (as such term is defined under GAAP) under the Shared Annual Capital Investment Plan amortized as an annuity over the expected life of such capital assets with interest at a rate equal to [*], divided by the total volume in pounds of Products produced by Supplier for both Parties in such Contract Year. Amounts included within the Semi-Annual Capital Charge will continue to be recovered over the duration of the expected life of such capital assets. The Semi-Annual Capital Charge will be updated on a semi-annual basis on January 1 and July 1, such that items Placed In Service during January through June of a Contract Year will be subject to recovery by Supplier beginning in July of the same Contract Year. 

(d)Specific Capital Investments for Buyer Products. During the Term, Buyer may request Supplier to invest in equipment or other capitalized items that are specifically needed to produce and supply only Products to be sold to Buyer hereunder (“Specific Capital Investments”). Supplier shall make good faith efforts to implement such investments. Supplier shall work in good faith with Buyer to design, engineer, install and commission such investments in a timely and cost-effective manner. The “Semi-Annual Capital Charge for Specific Capital Investments” for each Contract Year is the cost of Placed in Service Specific Capital Investments amortized as an annuity over [*] years, with interest at a rate equal to [*].  In addition to the Product Price as defined above, Buyer shall make payments to Supplier for the Semi-Annual Capital Charge for Specific Capital Investments commencing upon successful commissioning of the Specific Capital Investment in equal quarterly payments during each Contract Year, beginning on the half Calendar Year after Placed in Service. Any Specific Capital Investments commissioned prior to the Effective Date will be treated as Placed in Service in Calendar Year 1. To the extent there are outstanding payments due under this paragraph if this agreement is not renewed or is terminated, such payments shall all be due upon such expiration or termination, as further described in Section 5(f) below. See example in Exhibit G. 

(e)Mine Closure Costs.  Concurrent with the signing of this Agreement, Supplier has agreed to purchase the membership interests in Marshall Mine, LLC pursuant to the Purchase and Sale Agreement dated as of the date hereof and entered into by the parties hereto (the "Mine Purchase Agreement").  Supplier has determined in its sole discretion to cease mining operations and to begin reclamation work at the mine. Buyer shall pay Semi-Annual Capital Charge for Mine Closure Costs per schedule in Exhibit I. The "Semi-Annual Capital Charge for Mine Closure Costs" for each half of each Contract Year shall be amortized and paid as an annuity over [*] years, with interest at a rate equal to [*], as depicted in Exhibit I with an illustrative rate of [*].  For avoidance of any doubt, Buyer’s principal payments for Mine Closure Cost shall not exceed and are as presented in Exhibit I, except (i) for contingency payments caused by Rain delay under Supplier’s contract with North America Coal (“NAC”) (the “NAC Agreement”) and removal of substation, if required, under Panola Harris Utility Contract. Buyer’s payment for both contingencies shall  be equal to [*] of the actual cost for  both contingencies provided that (i) such payment by Buyer shall not exceed [*] for Rain Delay, (ii) any contingency payment for Rain Delay shall be paid as incurred by Supplier and shall not be amortized and (iii) in the event Supplier recognizes savings greater than [*] in Supplier’s payments to NAC under the NAC Agreement, Buyer shall receive [*] of the savings in excess of [*] as a reduction in outstanding principal payments or, if all payments have been made, a lump sum payment. To the extent there are outstanding payments due under this paragraph if this agreement is not renewed or is terminated, such payments shall all be 
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due upon such expiration or termination, as further described in Section 5(f) below. Buyer shall pay Marshall Mine demobilization costs as presented in Exhibit J. The demobilization costs shall be paid by Buyer within 30 days of receiving notice from Supplier.
 
(f)Capital Acceleration.  Outstanding balances relating to capital investments made by Supplier pursuant to Sections 5(d) and 5(e) above may be accelerated under the following conditions:
(i)Change in Control.  “Change in Control” means a transaction or series of transactions (including merger, consolidation, asset sale, or other reorganization) (a “Transaction”) in which more than [*] of the equity securities of Buyer entitled to vote for its board of directors, or more than 50% by  book value of Buyer’s North American assets (including joint venture interests) associated with the production of activated carbon (from any feedstock), change ownership directly or by proxy.  In the event of a Change in Control, all outstanding balances for investments made as Specific Capital Investments or Mine Closure Costs shall be due in full at the closing of a Transaction.

(g)    Taxes. All prices set in this Agreement are exclusive of taxes. Where relevant, taxes shall be paid by the Party purchasing or receiving the material on which such taxes are levied. 

6.Purchase Order.  Each delivery of Product hereunder shall be evidenced by the Buyer’s delivery to Supplier of a written purchase order (each, a “Purchase Order”) which shall incorporate by reference this Agreement, subject however to Buyer’s right to deliver a Blanket Purchase Order (as defined below).  The Purchase Order shall not modify, alter, change or amend the terms and provisions of this Agreement, and should any conflict result between the terms of the Purchase Order and this Agreement, the terms and provisions of this Agreement shall prevail and shall be binding on the Parties.  Purchase Orders shall be issued by Buyer or various affiliates of Buyer (“Affiliates”).  In the event a Purchase Order is delivered by an Affiliate, Buyer shall remain liable for payment pursuant to this Agreement.  Each Purchase Order submitted by Buyer, in combination with this Agreement, shall become the exclusive agreement between the Parties for the Product ordered therein when accepted by acknowledgment of, or commencement of performance by, Supplier. Buyer or any Affiliate may issue a blanket purchase order (“Blanket Purchase Order”) that sets forth Buyer's or the Affiliate’s anticipated usage of Product for the Contract Year.  Throughout such Contract Year, Buyer or the Affiliate may issue written releases (each, a “Release”) authorizing the delivery of the amount of Product set forth in the Release, and the Release shall be deemed a Purchase Order.

7.Logistics.

(a)Monthly Projections.  On or before the [*] day of each month, Buyer (and Affiliates) shall provide Supplier with (i) its good faith, rolling twelve-month estimated projection of Buyer’s Product needs, and (ii) its good faith rolling [*] forecast, intended to provide detail needed for executing deliveries.  The [*] rolling forecast in (ii) should include product type, quantity, required pick up or ship date and packaging type (bag, bulk trailer or bulk railcar).  Supplier acknowledges that monthly projections of Buyer’s needs are non-binding, and subject to change due to circumstances.  

(b)Shipment Date.  Supplier and Buyer will use their good faith efforts to reach and maintain a mutually acceptable shipment schedule for Product during the Term of this Agreement.  All scheduling for Product shipments shall be coordinated by Buyer or individual Affiliates by placing Purchase Orders, Blanket Purchase Orders or Releases 
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with Supplier.  Buyer and its Affiliates will advise Supplier on or before the [*] day of each calendar month of the desired shipment schedule for the succeeding month including desired shipment dates.  Supplier shall confirm shipment schedule for the succeeding month no later than the [*] day of each calendar month.  If Supplier cannot meet Buyer’s shipment dates, Supplier shall promptly propose good faith alternative shipment date(s) during that month, which shall be binding.  In the event that Buyer places a last minute order with short lead time, Supplier shall use reasonable commercial efforts to fill the order according to Buyer’s needs.
(c)Failure to Ship.  In the event Supplier has failed to ship the Product within [*] business days of the agreed shipment date, and Buyer and Supplier have been unable to mutually agree on an alternative shipping date, Buyer or its Affiliates may cancel that Purchase Order or Release. 
(d)Quantities Ordered.  Product will be ordered by railcar or truckload (bulk or flexible intermediate bulk container (FIBC)) shipments of approximately [*] and [*] (subject to reasonable variations based on differences in product density), respectively, unless otherwise agreed to in writing.  
(e)Weight; Scales.  Supplier shall measure and make a binding determination as to the quantity of Product delivered hereunder by weighing each shipment twice, one time empty and one time loaded but both times at the Supplier’s plant facility; the Supplier shall use commercially reasonable efforts to use the method described above to determine quantity shipped.  Supplier shall use commercially reasonable efforts to test, calibrate and certify its scales to maintain them at an industry standard rate of scale accuracy. Buyer shall have the right, but not the duty, to witness such testing, calibration and certification of Supplier’s scales and at all times to observe weighing of the Product. If either Party should at any time question the accuracy of the scales, such Party may request a prompt test and adjustment of such scales or weighting system at its expense by a mutually agreed third party.
(f)Specifications.  Each grade of Product(s) shall meet the specifications set forth on Exhibit A (the “Specifications”), and Supplier shall provide a Certificate of Analysis (COA) certifying compliance with the Specifications with each shipment.
(g)Alternate Supplier Plant; Third-Party Source.  If Supplier is unable to produce or ship Product from the Supplier Facilities as contemplated by this Agreement, then in satisfaction of its obligations hereunder, Supplier may deliver, with prior approval of Buyer (not to be unreasonably withheld, conditioned or delayed), from an alternate Supplier plant or third-party activated carbon source, Product meeting the Specifications. In such event, Supplier will pay up to 100% of the additional transportation cost, such that the cost to Buyer on a delivered basis will be the same as if the Product had been supplied from the Supplier Facilities contemplated by this Agreement.
(h)Packaging Requirements. All Product sold hereunder will be packaged, labeled and shipped in accordance with the Purchase Order, industry standards and all applicable federal, state and local statutes and regulations governing the packaging, labeling and shipment of such Product.

8.Payment and Delivery Terms. Product Prices are quoted on a [*] basis.  The term of payment is [*] days from the date of Supplier’s invoice, which Supplier shall issue to Buyer with a copy of the bill of lading when the Product is delivered to the carrier for transportation to Buyer’s facility.  In cases where Supplier agrees to deliver Product [*].  For the avoidance of doubt, in Section 7 when the word [*] it shall mean [*].

9.Title and Risk of Loss.  Title to and risk of loss and damage to any Product furnished hereunder shall pass from Supplier to Buyer at the same time as risk of loss passes per the applicable incoterm.  
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10.Right to Audit. Either Party shall have the right to retain an independent auditor to confirm any of product prices, price changes, volumes, capital charges, calculations, quality compliance or other obligations (individually, an “Audited Item”) under this Agreement. For the avoidance of doubt, the largest four international public accounting firms shall be considered independent even if one or both of the Parties utilize the firm for other matters. The cost of such auditor will be at the sole expense of the requesting Party unless a discrepancy in excess of [*] of the Contract Year total for the Audited Item is determined, in which case the cost of the auditor shall be borne solely by the erring party. For the avoidance of doubt, examples of the Contract Year total are the good faith calculations of Annual Target Volume and Standard Cash Costs, as provided by the parties pursuant to Sections 4(a) and 5(a), respectively, or, in the case of capital charges, the actual documented costs of such capital expenditures.  The auditor shall report to both Parties its final opinion concerning the matter for which it was retained as well as any amount due from one Party to the other Party. The auditor shall be required to maintain the confidentiality of all information in the audit report.

11.Quality Control and Inspection.  The Parties shall each maintain a commercially reasonable quality control system.  All Product may be subject to Buyer’s (i) inspection or verification during the period of manufacture, and (ii) inspection or verification prior to shipment.  Any such inspections by Buyer occurring at Supplier’s facilities shall take place during normal business hours of Supplier and with reasonable advance notice given by Buyer to Supplier.  As between Buyer and Supplier, Buyer shall be responsible for determining the compatibility of the Product with, and the suitability of the Product for use in, Buyer’s processes and by Buyer’s customers.

12.Term; Contract Year.  The term of this Agreement shall commence on the Effective Date and end on December 31, 2035, unless renewed as provided in this paragraph (the “Term”). “Contract Year” shall mean each annual period commencing on January 1 and ending on December 31 during the Term. The first Contract Year will be calendar year 2020 and will be a partial year beginning on the Effective Date and ending on December 31, 2020. The final Contract Year shall end at the expiration of the Term. The Term shall be extended for one or more renewal term(s) (each a “Renewal Term”) of ten (10) years each unless either Party provides notice of intention not to renew to the other Party at least three (3) years prior to the end of the then current term, in which case this Agreement shall end at the end of such Term.

13.Breach.  
Any of the following shall constitute a breach of this Agreement (“Breach”):
(a)Delivery of Nonconforming Product.  Supplier sells Product that does not conform to the applicable Specifications (“Nonconforming Product”), and fails to comply with the provisions of Section 14(a) hereof within ten (10) days of Buyer’s notification to Supplier that Product does not conform to the applicable Specifications.
(b)Failure to Supply Product.  Supplier breaches any of its supply obligations under Sections 2, 4, or 20 of this Agreement, and such failure is not remedied within thirty (30) days after delivery of written notice thereof by Buyer to Supplier.  
(c)Failure to Purchase Product.  Buyer breaches any of its purchase obligations under Sections 2 or 4 of this Agreement, and such failure is not remedied within thirty (30) days after delivery of written notice thereof by Supplier to Buyer.
(d)Failure to Pay.  Buyer fails to pay when due any required payment for Product (excluding any disputed invoices or Nonconforming Product), and such failure to pay is not remedied within 15 business days after delivery of written notice thereof by Supplier to Buyer.  Interest shall accrue at the rate of [*] per month, beginning on the date written notice is sent by Supplier.  
(e)Failure to Comply with Other Obligations.  Either Party fails to perform any other material covenant or obligation set forth in this Agreement if such failure is not remedied 
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within 30 days of receipt of notice from the non-breaching Party, or such longer period not to exceed 90 days if the failure is not capable of being cured within such 30-day period with the exercise of reasonable diligence, so long as the breaching Party has commenced and is diligently pursuing a cure during such initial 30-day period.
(f)A Party becomes insolvent, makes an assignment for the benefit of creditors, suffers or permits the appointment of a receiver, trustee in bankruptcy or similar officer for all or parts of its business or assets; or becomes subject to any bankruptcy proceeding under Federal law or any statute of any state relating to insolvency or the protection of rights of creditors.
(g)Either Party has defaulted in the performance of its obligations under the Mine Purchase Agreement, and such default is not remedied within thirty (30) days after delivery of written notice thereof from the non-defaulting Party.
14.Remedies. This section specifies the sole and exclusive remedies for the Breaches detailed in section 13 above.  In the event of a breach of this Agreement for which a remedy is not specified, the non-breaching party shall be entitled to remedies available at law or in equity.
(a)Nonconforming Product.  If Supplier sells Nonconforming Product, and Buyer, using commercially reasonable efforts, can use such Nonconforming Product, then the Parties shall determine an equitable adjustment to the Product Price for any Nonconforming Product accepted by Buyer.  If Buyer reasonably determines in good faith that it is unable to use any Nonconforming Product sold by Supplier, Buyer may reject and hold at Supplier’s expense, subject to Supplier’s disposal, all unusable Nonconforming Product, and Supplier shall promptly replace at Buyer’s choice the rejected Nonconforming Product with conforming Product without additional charge to Buyer or credit the amount Buyer has paid for Nonconforming Product. 
(b)Volume Shortfall Payments. 
(1)    Absent Force Majeure, in the event Supplier fails to supply up to [*] of the Annual Target Volume during any Contract Year, Supplier shall use reasonable commercial efforts to supply Products to Buyer before supplying itself or any of its other customers. If there continues to be a shortfall of Product from Supplier’s plant, Supplier shall use reasonable commercial efforts to secure Product for Buyer from third parties and supply at Product Price. Absent Force Majeure, if Supplier cannot secure sufficient supply to meet the Annual Target Volume, Supplier shall pay Buyer the positive difference between Buyer’s cost to acquire alternative Product and the Product Price for such Product to be paid within 30 days of receiving invoice from Buyer. Supplier shall have audit rights to review Buyer’s acquisition costs of alternative Product under this Section. Buyer’s payment of any Semi-Annual Capital Charge for Specific Capital Investments and Mine Closure Costs shall be suspended during the period of such supply shortfall, and such payments shall resume once Supplier is meeting its supply obligations. 

For avoidance of doubt, the Parties acknowledge that end-user customer needs may change over time and require new product specifications, and that collaboration will be expected and required to develop new and /or modified products to meet those needs.  Supplier’s obligation under Section 14(b)(1) to procure third-party Product or pay Buyer’s additional acquisition costs shall be only for situations where Supplier cannot meet its contractual supply obligation for Products that meet Specifications in Exhibit A (as it may be amended from time to time) and not for its inability to produce new or modified products that are not included in Exhibit A at the time of Buyer’s request.  

(2)    Absent Force Majeure, in the event Buyer does not purchase at least [*] of the Annual Target Volume in any Contract Year, Supplier may charge Buyer an amount equal to  (a) Supplier’s fixed cash costs per pound of Product plus (b) the Semi-
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Annual Capital Charge for Shared Capital Investments per pound of Product times the difference between [*] of the Annual Target Volume and  the volume actually purchased by Buyer as illustrated in Exhibit H.  Buyer shall make such payment within 30 days after the end of each Contract Year. 
c.No Consequential Damages, Etc.  Except for the remedies set forth in Section 14(b), in no event, and notwithstanding any other provision of this Agreement, shall either Party be liable under this Agreement for any incidental, consequential, punitive, exemplary or special damages or lost revenues or profits of a Party or an Affiliate.  
d.Other Claims.  Neither party shall have the right to terminate this Agreement before the end of the Term or any Renewal Term except as expressly provided in Section 24, Force Majeure. Any claim for breach of this Agreement for which this Agreement does not provide an express remedy shall be resolved solely as a claim for damages.

15.Product Warranties.  Supplier warrants that (a) all Product delivered to Buyer will at the time of delivery conform to the Specifications, (b) it has good title to all Product delivered to Buyer, and (c) all Product delivered to Buyer will not at the time of delivery infringe any patent, trademark or copyright issued by the United States of America, excluding any infringement to the extent due to Supplier's conformance with the Specifications supplied by Buyer or manufacturing methods provided by Buyer.  SUPPLIER MAKES NO OTHER WARRANTIES, WHETHER STATUTORY, EXPRESS, IMPLIED, ARISING FROM A COURSE OF DEALING, USAGE OF TRADE OR OTHERWISE, WRITTEN OR ORAL, ALL OF WHICH ARE EXPRESSLY DENIED, DECLINED AND WAIVED.  WITHOUT LIMITATION, SUPPLIER MAKES NO WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR, EXCEPT AS EXPLICITLY PROVIDED ABOVE IN THIS SECTION 15, NON-INFRINGEMENT.  Buyer’s sole and exclusive remedy for breach of the warranties set forth in this Section, and for any other claim with respect to Product, whether delivered or undelivered, and whether such claim is based upon representation, warranty, contract, negligence, tort, strict liability or any other theory, is limited to the remedies specified in Section 14.  

16.Compliance With Laws and Operational Discipline. 
(a)In performing the obligations under this Agreement, both Parties retain the obligations to, and shall comply in all material respects with, all applicable federal, state and local laws and regulations (including, without limitation, all environmental, health and safety laws) which are in effect during the Term.  Supplier retains the sole right and authority to make all decisions with respect to the construction, maintenance and operation of its facilities.  Supplier shall prepare and submit all reports that are required by applicable federal, state and local laws and regulations.
(b)Supplier shall be deemed the generator and owner of any hazardous waste generated in connection with its manufacture of the Product(s), and as such, shall be solely and independently responsible for any liabilities caused by such hazardous waste; and shall safely, properly and in compliance with applicable laws, regulations and ordinances, dispose of hazardous waste or arrange for the disposal of hazardous waste in a manner that is safe, proper and in material compliance with applicable laws, regulations and ordinances.  
(c)Both Parties will comply with the Federal OSHA “Hazard Communication Standard,” codified as 29 C.F.R. 1910.1200, et seq., and any similar state “right-to-know” laws which are currently in force or may be enacted in the future. Buyer is solely responsible for informing its employees of the chemical hazards associated with any Products or chemicals handled pursuant to this Agreement, and is also responsible for training its employees in the proper methods of handling such products and chemicals. 
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(d)Each Party shall notify the other within twenty-four (24) hours of any incidents involving the Product(s) utilized or produced under this Agreement and any event that is reasonably likely to significantly impair its ability to perform under this Agreement.
(e)As applicable, Supplier will comply in all material respects with the Contract Work Hours and Safety Standards Act; Walsh-Healey Act; Convict Labor Act; Standard Form 32 (SF32); Buy American Act; Executive Orders 11141, 11246, (as amended), and 11375; the Vietnam Era Veterans Readjustment Assistance Act of 1974; the Rehabilitation Act of 1973; the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Americans with Disabilities Act; the Equal Pay Act; the Age Discrimination in Employment Act; and all other applicable federal, state and local laws and regulations.  This Agreement incorporates by reference the Equal Opportunity clause and all other required clauses under all of the above federal, state and local laws and regulations if applicable.  Upon request, Supplier will provide a Certificate of Nonsegregated Facilities to Buyer.  Supplier agrees and covenants that none of its employees, or employees of its subcontractors, who provide goods or services pursuant to this Agreement, are unauthorized as defined in the Immigration Reform and Control Act of 1986.
(f)Both parties shall, at all times during the term of this Agreement, comply with the requirements of the U.S. Foreign Corrupt Practices Act and the UK Bribery Law; and shall comply in all respects with the applicable laws of the jurisdictions where the services under this Agreement are being performed, including, but not limited to, the country’s anti-bribery laws.
17.Indemnification. 
(a)Supplier shall indemnify and hold Buyer harmless from (i) all claims, liabilities, losses, damages, fines or expenses (collectively, “Claims”) for damages to property, or injury to or death of any person, occurring during the manufacture of the Product(s) [*] including, without limitation, such damages or injury arising from or related to any tortious or negligent act or omission of Supplier or its employees, agents or subcontractors, and (ii) all of Buyer’s reasonable expenses (including reasonable legal fees) of investigating or defending against all of the foregoing Claims; provided, however, that Supplier shall not be required to indemnify Buyer for any Claims to the extent caused by the willful misconduct or gross negligence of Buyer or its Affiliates, or any agents, employees or directors or officers thereof.
(b)Buyer shall indemnify and hold Supplier harmless from (i) all Claims for damages to property, or injury to or death of any person, occurring after title of the Products(s) passes to Buyer or a Buyer Affiliate during the use, storage, disposal, reuse or transportation of Product(s) [*] including, without limitation, such damages or injury arising from or related to any tortious or negligent act or omission of Buyer or an Affiliate or their employees, agents or subcontractors, (ii) all Claims for infringement arising from or related to Products made by Supplier under the Intellectual Property license granted under Section 18(c), and (iii) all of Supplier’s reasonable expenses (including reasonable legal fees) of investigating or defending against all of the foregoing Claims; provided, however, that Buyer shall not be required to indemnify Supplier for any Claims to the extent caused by the willful misconduct or gross negligence of Supplier, or any agents, employees or directors or officers thereof.
(c)Notice; Opportunity to Defend.  If any third-party notifies any Party (the “Indemnified Party”) with respect to any matter (a “Third-Party Claim”) which may give rise to a claim for indemnification against the other Party (the “Indemnifying Party”) under this Section 17, the Indemnified Party shall, if a claim in respect thereof is to be made under this 
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Section 17, promptly (and in any event within 15 business days after receiving notice of the Third-Party Claim) notify the Indemnifying Party thereof in writing (a “Third-Party Claim Notice”); provided, however, that the failure to make timely notice shall not relieve the Indemnifying Party of its obligations under this Section 17 except to the extent the Indemnifying Party is prejudiced by such failure. The Third-Party Claim Notice shall include a description of the Third-Party Claim and copies of all documents evidencing the claim that have been received by the Indemnified Party.  The Indemnifying Party will have 20 days from receipt of such Third-Party Claim Notice to determine whether or not the Indemnifying Party will, at its sole cost and expense, defend against such Third-Party Claim.  The Indemnified Party may elect to employ its own counsel and participate in such defense or settlement at the Indemnified Party’s own cost and expense.  Neither Party shall settle any Third-Party Claim without the consent of the other Party, which consent shall not be unreasonably withheld.
18.Intellectual Property.  
(a)“Intellectual Property” means all of the following anywhere in the world and all legal rights, title, or interest in the following arising under equity or law, whether or not filed, perfected, registered or recorded and whether now or later existing, filed, issued or acquired, including all renewals: all patents and applications for patents whether granted or pending, now or in the future; all semiconductor chip or mask works, industrial designs, industrial models, utility models, certificates of invention and other indices of invention ownership, and any related registrations and applications; all inventions (whether patentable or not and whether or not reduced to practice), invention disclosures, know-how, technology, technical data, trade secrets, manufacturing and production processes and techniques, research and development information, and other proprietary information of every kind; all works of authorship, copyrights, copyright registrations and copyright applications, copyrightable works, and all other corresponding rights; all trade dress and trade names, logos, trademarks and service marks and related registrations and applications, including any intent to use applications, supplemental registrations and any renewals or extensions, all other indicia of commercial source or origin, and all goodwill associated with any of the foregoing; any rights analogous to those set forth in the preceding clauses and any other proprietary rights relating to intangible property; and all so-called "moral rights," rights of integrity, rights of paternity, rights of attribution, or other such analogous rights in any of the foregoing. 
(b)Each Party owns and retains its Intellectual Property that a Party owns or is otherwise controlled by it and that was made, invented, developed, created, conceived, or reduced to practice by or on behalf of that Party, alone or in conjunction with others, either (a) before the Effective Date; or (b) during the Term of this Agreement but independently from this Agreement.  Neither Party grants any rights in Intellectual Property owned or controlled by that Party except to the extent set forth in this Agreement.   
(c)Buyer hereby grants to Supplier a non-exclusive, royalty-free, perpetual, irrevocable (except in the case of a material breach by Supplier of this Section 18), transferrable (in accordance with Assignment clause of this Agreement) world-wide right and license to Buyer's Intellectual Property  for regarding or relating to the production of lignite-based granular (greater than [*]) activated carbon (“Granular Products”), including without limitation equipment design and fabrication, engineering knowhow to convey, screen and collect, product specifications, analytical and product performance test methods, product application, market and customer information and operating parameters and processing conditions to produce Granular Products. If Supplier uses the aforementioned Buyer licensed Intellectual Property to make sellable Granular Products as a final product and 
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provided that Buyer purchases from Supplier at least [*] of Buyer’s North America GAC requirements for which Supplier can meet Buyer’s product specifications (as determined by Granular Products included in the then-current version of Exhibit A) [*] (the “GAC Requirement”), Supplier shall, for the term of this Agreement and for [*] years after Buyer ceases purchasing Product from Supplier under this Agreement, exclusively sell to Buyer such Granular Products as a final product made using the Buyer Intellectual Property.  The exclusivity provision of this license shall terminate and the license shall convert to non-exclusive in the next Calendar Year if Buyer does not purchase the GAC Requirement from Supplier. Notwithstanding the foregoing, nothing herein shall limit Supplier's ability to use the Buyer Intellectual Property to manufacture Granular Products to make other products, without limitation powder products, and sell those products (but not Granular Products) to third parties other than Buyer.
(d)To the extent the Parties collaboratively invent, develop, create, conceive, or reduce to practice Intellectual Property (“Joint IP”), each Party shall jointly own and have equal rights in and to such Joint IP, and hereby assign to each other all rights, title, and interest in and to such Joint IP to the extent such assignment is necessary to vest in each party such joint ownership.  Except as set forth in this Agreement, each Party's joint ownership of such Joint IP shall be without restriction and without any obligation of notice, approval, set-off, contribution, revenue sharing, accounting, or compensation of any type, except that to the extent any Joint IP contemplates the manufacture of Granular Products, Supplier may only use such Joint IP within the scope of the license granted in Section 18(c).  The Parties each agree to use commercially reasonable efforts to maintain the trade secret status of such Joint IP, including without limitation not to disclose any such Joint IP that qualifies as a trade secret to any third party without requiring that third party to agree to appropriate confidentiality requirements. The Parties agree to reasonably cooperate with each other regarding any patent, copyright, trademark, or other registration either Party wishes to make regarding such Joint IP, and as to third parties, in any defense of challenges to the validity or enforceability of, and prosecution of actions for the infringement or misappropriation actions of, such Joint IP.
19.New Products and Modified Products. During the Term, Buyer may request Supplier to produce new proprietary products other than the then-current Products for Buyer (the “New Products”) or to modify existing Products (the “Modified Products”).  
(a)New Products approved by Buyer shall be included in subsequent year calculations of Buyer’s Annual Target Volume, and the specifications of the New Products shall be added to Exhibit A.  For greater certainty, if after commercially reasonable negotiations the Parties cannot agree on mutually acceptable terms for Supplier to produce and Buyer to purchase the New Products, demand for these products shall be excluded from Buyer’s Annual Target Volume. 
(b)Modified Products may be requested, for example, when a current Product that meets all specifications fails to satisfy Buyer’s customer performance needs (a “Failed Product”).  To request a Modified Product, Buyer shall notify Supplier in writing of the specific Failed Product.  Supplier and Buyer shall then work together to develop a new Modified Product that meets customer performance needs. During the pendency of Supplier’s efforts to develop the Modified Product, Buyer may procure a product in place of the Failed Product from other sources.  Upon notification from Buyer that the Modified Product meets expectations, (i) the specifications of the Modified Product shall be added to Exhibit A, (ii) Buyer shall begin purchases of the Modified Product from Supplier at a price that reasonably accounts for changes between the Failed Product and the Modified Product and cease purchases of replacement product (if any) from any other source, and 
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(iii) the Modified Product shall be included in subsequent year calculations of Buyer’s Annual Target Volume. If after commercially reasonable time and effort to produce a Modified Product that meets customer performance needs, Supplier cannot produce such Modified Product, demand for the original Failed Product shall be excluded from subsequent years’ Annual Target Volume.  
20.Lignite Supply. At Buyer’s option during the Term and for [*] years after any termination of this Agreement, Supplier shall make available to Buyer up to [*] short tons per 12-month period of lignite of the same quality as used in the Supplier Facilities either (i) in the first or second Contract Years, or (ii) in the event Supplier is unable to meet its supply obligations under this Agreement.  Buyer’s lignite price delivered to its Marshall, TX Plant shall be the same cost as Supplier pays [*] for lignite for its Supplier Facilities.
21.Joint Development Committee. Each of the Parties have appointed members to a joint development committee (the “JDC”) to oversee the development of the various projects necessary to realize the objectives of this Agreement.  A Party may change its representatives from time to time in accordance with this Agreement by written notice to the other Party. The JDC shall meet regularly and as appropriate to fulfill its tasks and objectives according to this Agreement.  Each Party shall use reasonable efforts to cause its representatives to attend each meeting, and no Party shall withhold the presence or participation of its representatives to forestall decisions on matters relating to this Agreement.  General responsibilities of the JDC will include but not be limited to development and administration of (i) a project schedule with key milestones for any Specific Capital Investments required in order to supply Product to Buyer, (ii) a Product qualification plan and execution of such Plan, and (iii) a volume ramp up and transition plan for the first and second Contract Years. 
22.Insurance.  Supplier shall provide and maintain in effect during the performance of this Agreement minimum insurance coverage as follows: (a) commercial general liability insurance, including public liability, bodily injury and property damage insurance, with limits of not less than [*] combined single limit per occurrence and [*] annual aggregate and (b) excess or umbrella liability insurance with a combined single limit of not less than [*].  The foregoing coverages shall be primary and shall not require contribution from Buyer.
23.Safety and Health Communications.  Buyer shall furnish to all persons Buyer foresees may be exposed to Product (including but not limited to Buyer’s employees, contractors and customers) material safety data sheets that include all legally required health, safety and other hazard communication information on the Product consistent with the Occupational Safety and Health Administration’s Hazard Communications Standard and other applicable laws.  Any employees or agents of Supplier or its subcontractors that visit Buyer locations will comply with all safety and health rules and regulations communicated to such visitors, and any employees or agents of Buyer or its Affiliates that visit Supplier’s location will comply with all safety and health rules and regulations communicated to such visitors.
24.Force Majeure.  
(a)Definition.  “Force Majeure” means an event or circumstance, whether foreseen or unforeseen, which prevents or delays one Party (the “Claiming Party”), in whole or in part, from performing its obligations under this Agreement, which is not within the reasonable control of, or the result of the negligence of, the Claiming Party and which could not be prevented or overcome with the reasonable exercise of due diligence.  In furtherance of the definition of Force Majeure, and not in limitation of that definition, Force Majeure shall include each of the following acts or events to the extent consistent with the previous sentence: acts of God, war, insurrection, riots, nuclear disaster, third-party strikes or labor disputes, threats of violence, shortages of labor, material or transportation, fires, explosions, breakdowns or damage to plants and related equipment (including a forced outage or an involuntary extension of a scheduled outage of 
-12-
 

equipment or facilities to make repairs to avoid breakdowns thereof or damage thereto), embargoes,  judicial orders, acts of civil or military authority, or any legal or regulatory change that would have a sustained and  material impact on Supplier’s ability to produce or sell activated carbon at its production facility(ies) or ability to mine coal at the Five Forks Mine.  For avoidance of doubt and notwithstanding the foregoing, Force Majeure shall not include, without limitation: (i) a Party’s performance of its obligations hereunder becoming economically unfavorable, (ii) changes in a Party’s financial condition, (iii) changes in market conditions, and (iv) Buyer’s inability to use, dispose of or resell Product purchased hereunder in the ordinary course of its operations.
(b)Force Majeure.  If because of Force Majeure, either Party fails to perform any of its obligations under this Agreement (other than the obligation of a Party to pay money), and if such Claiming Party shall promptly give to the other Party written notice of such Force Majeure, then the obligations of the Claiming Party shall be suspended to the extent made necessary by such Force Majeure and during its continuance; provided the Claiming Party shall use reasonable commercial and good faith efforts to eliminate such Force Majeure, insofar as reasonably possible, with a minimum of delay.  Notwithstanding the foregoing, nothing contained herein shall be construed as requiring the Claiming Party to accede to any demands of workmen, labor unions, suppliers or other parties which the Claiming Party in its reasonable judgment considers unacceptable.  Should the situation of the Claiming Party’s suspending its obligations for Force Majeure exceed [*] consecutive days, the other Party may, at its option, terminate this Agreement by written notice to the other Party, and neither Party shall have any further obligations to the other Party hereunder (except to the extent such obligations arose prior to such termination).  
25.Confidentiality.  Each Party (the “Receiving Party”) shall treat as confidential and proprietary (a) the existence of and contents of this Agreement and (b) all information disclosed by the other Party (the “Disclosing Party”) to the Receiving Party in connection with this Agreement (together, the “Confidential Information”).  Confidential Information shall not include: (a) information that enters the public domain other than through the actions of the Receiving Party and without violation of any obligation of confidentiality, (b) information made available to the Receiving Party by third-parties that has become available without violation of any obligation of confidentiality, (c) information that is independently developed by the Receiving Party without use of the Disclosing Party’s Confidential Information, and (d) was previously known to the Receiving Party.  Nothing in this Section 25 shall limit or alter the Intellectual Property rights and licenses granted in this Agreement.

A Receiving Party shall use such Confidential Information only for the purposes of this Agreement and shall not disclose such Confidential Information to any third-party without the prior written consent of the Disclosing Party. Notwithstanding the foregoing, a Receiving Party may make disclosure solely to the extent required in order to comply with any applicable law, order or regulation; provided, such Receiving Party shall give the Disclosing Party reasonable notice in advance of such disclosure and use reasonable efforts to prevent or limit the disclosure, including seeking confidential treatment and cooperating with the Disclosing Party in seeking a restraining order to prevent such disclosure.

Notwithstanding the foregoing, a Receiving Party may disclose Confidential Information to its employees, directors, suppliers, agents, subcontractors and professional advisors (the “Representatives”) solely on a need-to-know basis and shall be responsible for ensuring that its Representatives are aware of the obligations imposed under this Section and for any breach of such obligations by any Representative.  The Disclosing Party shall be a third-party beneficiary of any agreement of confidentiality obligating Representatives of the Receiving Party with respect to the Confidential Information.  The Parties agree that this Section 25 shall survive the termination of this 
-13-
 

Agreement for a period of three years, except that this Section shall survive without time limit for any trade secret information.  

The Parties agree and acknowledge that remedies at law would not be an adequate remedy in the event of a breach of the provisions of this Section.  Without prejudice to the rights and remedies otherwise available to the Disclosing Party, the Disclosing Party shall be entitled to equitable relief by way of injunction, without bond, if there is a breach or threat of a breach of any of the provisions of this Section by the Receiving Party.
26.Representations.  On the Effective Date, each Party represents to the other Party that:
(a)it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation;
(b)it has all material regulatory authorizations necessary for it to legally perform its obligations under this Agreement;
(c)the execution, delivery and performance of this Agreement are within its powers, have been duly authorized by all necessary action and do not violate (i) any of the terms and conditions in its governing documents, (ii) any material contract to which it is a party, or (iii) any law, rule, regulation or order applicable to it where such violation would reasonably be expected to cause a material adverse effect;
(d)this Agreement and each other document executed and delivered in accordance with this Agreement constitutes its legally valid and binding obligation enforceable against it in accordance with its terms;
(e)it has made its own independent decision to enter into this Agreement and as to whether this Agreement is appropriate or proper for it based upon its own judgment, is not relying upon the advice or recommendations of the other Party in so doing, and is capable of assessing the merits of and understanding, and understands and accepts, the terms, conditions and risks of this Agreement;
(f)it is not bankrupt and there are no bankruptcy proceedings pending or being contemplated by it or, to its knowledge, threatened against it which would result in it being or becoming bankrupt;
(g)it has entered into this Agreement in connection with the conduct of its business and will have the capacity and ability to make (in the case of Supplier) or take or pay for (in the case of Buyer) all Product(s) to be delivered pursuant to this Agreement; and
(h)there are no pending or to its actual knowledge threatened legal proceedings against it or any of its affiliates that could materially adversely affect its ability to perform its obligations under this Agreement.
27.Assignment.  Neither Party shall assign its rights, or delegate its performance or obligations under this Agreement, except to an Affiliate or to a successor to substantially all of such Party’s  activated carbon business, without the express prior written consent of the other Party which shall not be unreasonably conditioned, withheld, or delayed, and any assignment or delegation without such consent shall be void. It is specifically understood that a Party may require reasonable evidence of creditworthiness and financial condition of any assignee as a condition to such consent.  Notwithstanding anything herein to the contrary, in the event there is a Change of Control of Buyer, certain outstanding balances on capital charges that would be due in future years shall be accelerated as set forth in Section 5(f)(i).
28.Independent Contractor.  The Parties acknowledge that they are independent contractors and not agents, partners or joint venture partners.  Neither Party shall have the authority to bind or otherwise obligate the other Party in any manner, nor shall either Party represent to anyone that it has any such right or authority.
29.Severability; Amendment; Waiver; Termination; Etc.  In case any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal or unenforceable in any respect, such 
-14-
 

invalidity, illegality or unenforceability shall not affect any other provision of this Agreement and such invalid, illegal or unenforceable provision shall be reformed and construed so that it will be valid, legal and enforceable to the maximum extent permitted by law.  No amendment, modification or waiver of any provision set forth herein shall be valid unless in writing and signed by both Parties.  A Party’s failure to insist on performance of any of the terms or conditions herein or to exercise any right or privilege hereunder or thereunder, or a Party’s waiver of any breach hereunder or thereunder, shall not thereafter waive any other terms, conditions or privileges, whether of the same or similar type, nor shall any single or partial exercise of any right or privilege hereunder or thereunder preclude any other or further exercise hereof or thereof or the exercise of any other right or privilege.  There shall be no third-party beneficiary of this Agreement.  The expiration or termination of this Agreement, at the end of the Term, Renewal Term or otherwise (i) shall only terminate the Parties’ purchase and sale obligations hereunder and (ii) shall not relieve any Party from obligations it has incurred prior to such expiration or termination.
30.Applicable Law.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware without regard to its conflicts of law provisions. 
31.Dispute Resolution.
Any disputes arising out of or relating to this Agreement, or a Purchase Order or Release issued in connection herewith (singularly or collectively a “Dispute” or “Disputes”), shall be resolved as set forth in this Section.
(a)Step Negotiations.  The Parties shall attempt in good faith to promptly resolve any Disputes by negotiation, as follows: Any Party may give the other Party written notice of any Dispute not resolved in the normal course of business (the “Notice of Dispute”).  The Notice of Dispute shall set forth in reasonable detail the nature of the dispute and attach supporting documentation if reasonably available.  Executives of both Parties at levels at least one level of authority above the personnel who have previously been involved in the Dispute (the “Executives”) shall meet at a mutually acceptable time and place within 10 business days after delivery of the Notice of Dispute, and thereafter as often as they reasonably deem necessary, and may exchange any information they choose to disclose in an attempt to resolve the Dispute (the “Executive Meeting”).  If an Executive intends to be accompanied by an attorney at the Executive Meeting, the other Executive shall be given notice at least 3 business days before the meeting of such intention and may also be accompanied by an attorney.  All negotiations pursuant to this Section are confidential and shall be treated as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and state rules of evidence.
(b)Mediation.  In the event that any Dispute has not been resolved within 30 days after issuance of the Notice of Dispute, or if no Executive Meeting has taken place within 21 days after issuance of the Notice of Dispute, either Party may initiate non-binding mediation, administered by the American Arbitration Association (“AAA”).  Any Dispute shall be subject to mediation as a condition precedent to litigation.  The mediation session shall occur within 30 days after the Party initiating the Dispute issues a written notice to the opposing Party that it desires mediation. 
(c)Deliveries to Continue.  In the case of any Dispute (including any Dispute which is or may be the subject of mediation), Supplier shall continue to deliver Product(s) pursuant to this Agreement pending final determination of the Dispute, provided (i) that such Product is not, and would not reasonably be expected to be, rejected or the subject of further Dispute, and (ii) Buyer is not in default of its non-disputed payment obligations under this Agreement and continues to make payment in full upon shipment to Supplier for all such Product(s).
32.Notices.  Any notice pertaining to this Agreement or a Purchase Order or Release shall be in writing and sent via certified mail (postage prepaid), by commercial overnight courier, or by other means 
-15-
 

(including email) if receipt is acknowledged in writing, to the Parties at their addresses set forth below, and shall be effective when received.  Either Party may request a change to the notice information below as necessary to keep the information current.
									
	If to Buyer:		
		Cabot Norit Americas, Inc.	
		Attention: General Manager
	
		2 Seaport Lane, Suite 1400
	
		Boston, MA 02110
	
		Email: [*]	
			
	If to Supplier:		
		ADA Carbon Solutions (Red River), LLC	
		Attention: President
	
		8051 E. Maplewood, Suite 210	
		Greenwood Village, CO 80111	
		Email: [*]	
			

33.Complete Agreement.  This Agreement and the Mine Agreement together set forth the entire understanding of the Parties and supersedes any and all prior agreements, arrangements or understandings relating to the subject matter hereof, including but not limited to, any terms or conditions on any Purchase Order or Release.  Any additional or different terms and conditions set forth in any Purchase Order, Release, invoice, Purchase Order acknowledgment or similar writing, or in any electronic data interchange, are objected to by the Parties and will not be binding upon the Parties unless specifically assented to in writing by an authorized agent of Buyer and Supplier.
* * * * *

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.

															
					
	Buyer: Cabot Norit Americas Inc.			Supplier: ADA Carbon Solutions (Red River), LLC	
					
	By:	/s/ I.A. Kathawalla
		By:	/s/ Greg Marken
	Its:	Executive Vice President		Its:	President
					

-17-
 

EXHIBIT A

[Omitted]
-18-
 

EXHIBIT B

[Omitted]
-19-
 

Exhibit C

[Omitted]
-20-
 

EXHIBIT D

[Omitted]
-21-
 

EXHIBIT E

[Omitted]

-22-
 

EXHIBIT F

[Omitted]

-23-
 

EXHIBIT G

[Omitted]

-24-
 

EXHIBIT H

[Omitted]

-25-
 

EXHIBIT I
Buyer's Semi-Annual Capital Charge for Mine Closure Costs

															
	Invoice Date		Payment w/out Interest		Payment w/ Interest
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	[*]		[*]		[*]
	Total		[*]		$10,265,969.00

(*) excludes Rain Delay Contingency (max. $[*] for Buyer) and [*] of cost for removing substation under Panola Harris contract

-26-
 

EXHIBIT J

[Omitted]

-27-Document

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETED ASTERISKS [*], HAS BEEN OMITTED PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED BECAUSE IT IS BOTH (I) NOT MATERIAL and (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED    
Execution Version

    

			
	

SECOND AMENDED AND RESTATED LIGNITE MINING AGREEMENT
among
CADDO CREEK RESOURCES COMPANY, L.L.C.,
ADA CARBON SOLUTIONS (OPERATIONS), LLC,
MARSHALL MINE, LLC and
THE NORTH AMERICAN COAL CORPORATION
dated as of September 30, 2020

			
	

TABLE OF CONTENTS
									
	SECTION 1.	DEFINITIONS	2
	SECTION 2.	TERM; PERMIT RESERVES AND POST-MINING RECLAMATION	5
	2.1	TERM	5
	2.2	PERMIT REVISIONS AND POST-MINING RECLAMATION	5
	2.3	RESERVED	5
	2.4	RESERVED	5
	2.5	RESERVED	5
	2.6	RESERVED	5
	SECTION 3.	DELIVERY OF LIGNITE; TASK ORDER SERVICES	5
	3.1	DELIVERY OF LIGNITE	5
	3.2	TASK ORDER SERVICES	5
	SECTION 4.	THE WORK	6
	4.1	COMPONENTS OF THE WORK	6
	4.2	PERMIT REVISIONS	6
	4.3	POST-MINING RECLAMATION WORK	7
	SECTION 5.	RESERVED	7
	SECTION 6.	MINE FINANCIAL ARRANGEMENTS	7
	6.1	CERTAIN OWNER RESPONSIBILITIES	7
	6.2	CERTAIN CONTRACTOR RESPONSIBILITIES	8
	6.3	WORKING CAPITAL	8
	6.4	ELECTRIC POWER	8
	6.5	OWNER’S FAILURE TO PROVIDE MINE FINANCIAL ARRANGEMENTS	9
	6.6	INVENTORY	9
	SECTION 7.	COMPENSATION	9
	7.1	COMPENSATION PRIOR TO THE EFFECTIVE DATE	9
	7.2	COMPENSATION TO CONTRACTOR	9
	SECTION 8.	INSURANCE	14
	8.1	CONTRACTOR’S INSURANCE	14
	8.2	SUBCONTRACTOR’S INSURANCE	14
	8.3	OWNER AS AN ADDITIONAL INSURED	14
	8.4	CONTRACTOR'S CERTIFICATE OF INSURANCE	14
	8.5	OWNER'S INSURANCE	15
	8.6	CONTRACTOR AS AN ADDITIONAL INSURED	15
	8.7	OWNER'S CERTIFICATE OF INSURANCE	15
	SECTION 9.	RESERVED	16
	SECTION 10.	RECORDS AND AUDITS	16
	10.1	RECORDS	16
	10.2	EXAMINATION OF BOOKS AND RECORDS	16
	10.3	PERIODIC INSPECTIONS AND MEETINGS	16

									
			

    

									
	SECTION 11.	BILLING AND PAYMENT	17
	11.1	MONTHLY INVOICES	17
	SECTION 12.	RESERVED	18
	SECTION 13.	FORCE MAJEURE	18
	13.1	GENERAL	18
	13.2	DEFINITION	18
	SECTION 14.	CONDUCT OF OPERATIONS	19
	14.1	CONTRACTOR’S CONDUCT OF OPERATIONS	19
	14.2	CONTRACTOR’S PERFORMANCE	19
	14.3	EQUIPMENT	19
	SECTION 15.	DEFAULTS; REMEDIES	20
	15.1	CONTRACTOR DEFAULT	20
	15.2	REMEDY OF OWNER UPON CONTRACTOR DEFAULT	21
	15.3	LIMITATIONS ON OWNER’S RIGHTS UNDER SECTION 15	22
	15.4	OWNER DEFAULT	22
	15.5	REMEDY OF CONTRACTOR UPON OWNER DEFAULT	24
	15.6	LIMITATIONS ON CONTRACTOR’S RIGHTS UNDER SECTION 15	24
	SECTION 16.	EFFECT OF WAIVER	24
	SECTION 17.	DISPUTE RESOLUTION	25
	SECTION 18.	RESERVED	25
	SECTION 19.	ASSIGNMENT	25
	SECTION 20.	NOTICES	26
	SECTION 21.	REPRESENTATIONS AND WARRANTIES OF CONTRACTOR, OWNER AND NORTH AMERICAN COAL	27
	SECTION 22.	PROPRIETARY AND CONFIDENTIAL DATA; PUBLICATIONS AND PHOTOGRAPHS	29
	22.1	PROPRIETARY AND CONFIDENTIAL DATA	29
	22.2	PUBLIC DISCLOSURES	30
	22.3	DAMAGES FOR DISCLOSURE	30
	SECTION 23.	WAIVERS, REMEDIES AND AMENDMENTS	30
	23.1	EXCLUSIVE REMEDIES; LIMITATIONS ON DAMAGES	30
	23.2	AMENDMENTS	31
	SECTION 24.	GOVERNING LAW	31
	SECTION 25.	RELATIONSHIP OF THE PARTIES	31
	SECTION 26.	LIMITATIONS OF CONTRACTOR’S FUNCTIONS	32
	SECTION 27.	MISCELLANEOUS	33
	27.1	HEADINGS NOT TO AFFECT CONSTRUCTION; GENDER	33
	27.2	ENTIRE AGREEMENT	33
	27.3	SEVERABILITY	33
	27.4	EXPENSES	33
	27.5	ATTORNEYS’ FEES	33

									
		-ii-
	

    

									
	27.6	PREPARATION	34
	27.7	EXHIBITS	34
	27.8	SURVIVAL	34
	27.9	SIGNATURE	34
	SECTION 28.	RESERVED	34
	SECTION 29.	UNIFORM ROUNDING PRACTICE	34

									
		-iii-
	

EXHIBITS
Exhibit A    Map Depicting the Eight Mile Area of Interest
Exhibit B    Rate Sheet
Exhibit C    Form of Task Order
Exhibit D    Owner Equipment
Exhibit E    Inventory Values
Exhibit F    Example of Progress Payment Calculation
Exhibit G    Examples of Major Repairs

									
			

-iv-

    

SECOND AMENDED AND RESTATED LIGNITE MINING AGREEMENT
THIS SECOND AMENDED AND RESTATED LIGNITE MINING AGREEMENT (“Agreement”) is made and entered into as of the 30th day of September, 2020, among CADDO CREEK RESOURCES COMPANY, L.L.C., a Nevada limited liability company with offices at 3900 FM 1186, Marshall, Texas 75672 (“Contractor”), MARSHALL MINE, LLC, a Delaware limited liability company with offices at 8051 E. Maplewood, Suite 210, Greenwood Village, CO 80111 (“Owner”), THE NORTH AMERICAN COAL CORPORATION, a Delaware corporation with offices at 5340 Legacy Drive, Suite 300, Plano, Texas 75024 (“North American Coal”) and ADA CARBON SOLUTIONS (OPERATIONS), LLC, a Delaware limited liability company with offices at  8051 E. Maplewood, Suite 210, Greenwood Village, CO 80111 (“ADA”).
W I T N E S E T H    T H A T:
WHEREAS, ADA has agreed to acquire the membership interests of Owner (“Acquisition”) from Cabot Norit Americas, Inc. (“Cabot”), a Delaware corporation, pursuant to a certain membership interest purchase agreement between ADA and Cabot (the “Purchase Agreement”); and
WHEREAS, Owner owns or controls (by lease, sublease, fee ownership or otherwise) certain commercially recoverable lignite reserve properties located near Marshall, Harrison County, Texas (the “Eight Mile Reserves”) and acquired certain additional reserves within the area delineated on the map in Exhibit A attached hereto (the “Eight Mile Area of Interest”), which Owner utilized as a source of lignite supply; and
WHEREAS, Owner and Contractor were Parties to a Lignite Mining Agreement, dated as of September 22, 2009, as amended (the “LMA”); and
WHEREAS, Owner and Contractor restated the LMA pursuant to an Amended and Restated Lignite Mining, dated as of May 8, 2019 (the “Amended and Restated LMA”); and
WHEREAS, Owner and Contractor desire to amend and restate the Amended and Restated LMA; 
WHEREAS, ADA and Owner desire to permanently cease the mining and delivery of lignite pursuant to this Agreement and commence final reclamation at the mine associated with the Eight Mile Reserves (the “Mine”); and
WHEREAS, Owner desires to engage Contractor to perform certain Mine permit revision work and final Mine reclamation work at the Mine.
NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements of the Parties as herein set forth, Owner hereby engages Contractor to, and Contractor hereby agrees to, perform certain Mine permit revision work and to perform final Mine reclamation work until the reclamation bond for the Mine has been released and the Mine 
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has closed (the “Post-Mining Reclamation”), and Owner hereby agrees to pay for the Work performed during the term of this Agreement, for the compensation and upon the other terms and conditions hereinafter set forth:
Section 1.Definitions
As used in this Agreement, the following terms, whether in the singular or plural, shall have the following meanings:
“2023 Fee” shall have the meaning set forth in Section 7.2(c).
“2024 Fee” shall have the meaning set forth in Section 7.2(c).
“2025-2030 Fee” shall have the meaning set forth in Section 7.2(c).
“Acquisition” shall have the meaning set forth in the recitals.
“ADA” shall have the meaning set forth in the preamble. 
“Adjusted Aggregate Cubic Yards” shall have the meaning set forth in Section 7.2(b)(iii). 
“Adjusted Total Progress Payment” shall have the meaning set forth in Section 7.2(b)(iii). 
“Affiliate” shall mean, as to any person, any other person that, directly or indirectly, controls, is controlled by or is under common control with such person or is a director or officer of such person.  For purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under common control with”) of a person means the power to direct or cause the direction of the management and policies of such person, whether through the ownership of voting stock or ownership interests, by contract or otherwise.  
“Aggregate Cubic Yards” shall have the meaning set forth in Section 7.2(b)(ii).
“Agreed Damages” shall have the meaning set forth in Section 23.1.2. 
“Agreement” shall have the meaning set forth in the introductory paragraph.
“Amended and Restated LMA” shall have the meaning set forth in the recitals.
“Applicable Laws” shall mean all applicable laws, ordinances, statutes, codes, rules, regulations, permits, orders, judgments and decrees or judicial or agency interpretation of the United States of America, the States of Delaware, Nevada, and Texas, or any of the subdivisions of such States, or any other political subdivision, agency or instrumentality as such laws are in effect on the Effective Date and as such laws may be amended, enacted or adopted from time to time.
“Approved Permit Revision” shall have the meaning set forth in Section 4.2(a). 
“Authorized Representative” shall have the meaning set forth in Section 20.
“Baseline Survey” shall have the meaning set forth in Section 7.2(b)(ii)
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“Business Day” shall mean any day of the year, other than a Saturday, Sunday or a day when United States national banks are closed.
“Cabot” shall have the meaning set forth in the recitals.  
“Compensation” shall have the meaning set forth in Section 7.
“Contractor Default” shall have the meaning set forth in Section 15.1.1.
“Contractor Equipment” shall mean all equipment other than Owner Equipment that is necessary to perform the Work.
“Cost Savings” shall have the meaning set forth in Section 4.2(a). 
 “Day” shall mean a calendar day.
“Demobilization Costs” shall have the meaning set forth in Section 7.2(e). 
“Effective Date” shall mean September 30, 2020, the date on which ADA consummates the Acquisition.
“Eight Mile Area of Interest” shall have the meaning set forth in the second Whereas clause.
“Eight Mile Reserves” shall have the meaning set forth in the second Whereas clause.
“Final Topo” shall have the meaning set forth in Section 7.2(b)(ii). 
“Fixed Fee” shall mean the total amounts due to Contractor pursuant to Sections 7.2(a), 7.2(b), and 7.2(c), which initially equals $19,650,000, and excluding any other potential costs set out in the Agreement, including but not limited to Sections 7.2(d) and (e), or potential savings as set out in the Agreement.
 “Force Majeure” shall have the meaning set forth in Section 13.2.
“GAAP” shall mean generally accepted accounting principles in the United States, consistently applied.
“Inclement Weather Per Diem Payment” shall have the meaning set forth in Section 7.2(d). 
“Infrastructure” shall mean all infrastructure necessary for the Work, including, without limitation, roads, buildings, water, water management structures, sub-stations, other utility connections, graded surfaces and other improvements to land.
“Major Repairs” shall have the meaning set forth in Section 7.2(e). 
“LMA” shall have the meaning set forth in the third Whereas clause. 
“Mine” shall have the meaning set forth in the recitals.
 “Mobilization Fee” shall have the meaning set forth in Section 7.2(a). 
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“Month” shall mean a calendar month.
“Monthly” shall mean with the frequency of a Month.
“Monthly Survey” shall have the meaning set forth in Section 7.2(b)(ii).
“North American Coal” shall have the meaning set forth in the preamble.
“Owner” shall have the meaning set forth in the introductory paragraph.
“Owner Cost Savings” shall have the meaning set forth in Section 4.2(a)
“Owner Default” shall have the meaning set forth in Section 15.4.1.
“Owner Equipment” shall have the meaning set forth in Section 6.1.
“Parties” shall mean Contractor, Owner and, where applicable, North American Coal.
“Per Diem Payments” shall mean the collective reference to the Inclement Weather Per Diem Payment and the Per Diem Permit Delay Payment. 
“Per Diem Permit Delay Payment” shall have the meaning set forth in Section 7.2(d).
“Permit Revisions” shall have the meaning set forth in Section 4.2(a). 
“Post-Mining Reclamation” shall have the meaning set forth in the Now, Therefore clause.
“Progress Payment” shall have the meaning set forth in Section 7.2(b). 
“Quarterly Fees” shall mean, collectively, the 2023 Fee, the 2024 Fee and the 2025-2030 Fee.
“Reclamation Bond Reduction Work” shall have the meaning set forth in Section 4.2(c). 
“RRC” shall have the meaning set forth in Section 4.2(a). 
“Task Order Services” shall have the meaning set forth in Section 3.2. 
“Total Progress Payment” shall have the meaning set forth in Section 7.2(b)(i).
“Uniform Rounding Practice” shall mean the following rounding practice with respect to numerical amounts:  When the number to the right of the relevant number is four (4) or less, the relevant number shall remain unchanged.  When the number to the right of the relevant number is five (5) or more, the relevant number shall be increased to the next higher number.  Unless otherwise agreed by the Parties, the relevant number shall be the fourth (4th) place to the right of the decimal.
“Work” shall mean the work to be performed hereunder, excluding Task Order Services. 
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Section 2.Term; Permit Revisions and Post-Mining Reclamation 
2.1    Term
2.1.1    The term of this Agreement shall begin on September 22, 2009 and continue until the Post-Mining Reclamation is completed and the reclamation bond for the Mine has been released, unless terminated earlier pursuant to other provisions of this Agreement.  For the avoidance of doubt, any work, services, or mining performed prior to the Effective Date shall be pursuant to the terms of the Amended and Restated LMA as they existed prior to the Effective Date, and any work, services, or reclamation performed on or after the Effective Date shall be pursuant to the terms of this Agreement.
2.1.2    The termination or expiration of this Agreement shall not release either Party from any obligations, payments or liabilities of such Party that accrued or arose during the term of this Agreement or as a result of operations, duties, obligations or responsibilities under this Agreement performed prior to such termination or expiration.
2.2    Permit Revisions and Post-Mining Reclamation 
Owner hereby agrees to pay for, and Contractor hereby agrees to perform, Work in accordance with Section 4.2 and Section 4.3.
2.3    [Reserved.]
2.4    [Reserved.]
2.5    [Reserved.]
2.6    [Reserved.]
Section 3. Delivery of Lignite; Task Order Services 
3.1    Delivery of Lignite
To the extent such delivery of lignite does not interfere with Contractor’s ability to perform the Post-Mining Reclamation, Owner hereby agrees to accept from Contractor and pay for, and Contractor hereby agrees to use commercially reasonable efforts to deliver to Owner, in accordance with the terms of this Agreement, lignite from the stockpile of the Mine utilizing the equipment at the rates set forth on Exhibit B. Owner shall notify Contractor in writing of the number of Tons of lignite that Owner shall require prior to any such delivery.  
3.2    Task Order Services
In addition to receiving any lignite in accordance with Section 3.1, Owner hereby agrees to pay Contractor for any services other than the Work at the rates set forth on Exhibit B.  The scope of any such services (“Task Order Services”) shall be agreed by the Parties on a task order in the form of Exhibit C. To the extent Owner requests that Contractor oversee the disassembly 
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and/or packing of the dragline, this work shall be completed pursuant to a task order, which shall include a profit element not to exceed [*] percent of the cost related to disassembly and/or packing of the dragline. 
Section 4.The Work
4.1    Components of the Work
The Work performed pursuant to this Agreement shall consist of the Mine permit revision process and the Post-Mining Reclamation, which includes, but is not limited to, spoil leveling, pit and ramp backfill, final grading, clearing and grubbing, oxidized material removal and replacement, mine road reclamation, pond backfill and removal, the dragline walkway construction and the relocation of the dragline from the active pit to the facilities site, facilities disassembly and removal/disposal only to the extent retention of such facilities is not permitted in the Permit Revisions, revegetation, revegetation maintenance, water management/monitoring, site security, and all related and ancillary work associated with the foregoing (except to the extent such work is no longer necessary due to an Approved Permit Revision), as well as any Task Order Services.
4.2    Permit Revisions 
(a)Contractor shall perform Mine permit revision work and Mine reclamation work allowed under the current permit.  Contractor shall use commercially reasonable efforts to complete at least seventy-five percent (75%) of the dirt Work to be performed by the dragline and bulldozers permitted to be performed under the current Mine permit within twenty-one (21) Months of the Effective Date. At a time  determined by Contractor after non-binding consultation with Owner, Contractor shall submit an application to the Railroad Commission of Texas (the “RRC”) requesting the below Mine permit revisions (the “Permit Revisions”), which the Parties anticipate will occur not more than 120 days after Effective Date.  The Parties agree that the cost savings associated with each Permit Revision (“Cost Savings”), for purposes of allocating Cost Savings to Owner, is as set forth below, except as noted in Section 4.2(b). To the extent the RRC finally approves a Permit Revision and any applicable appeal period has lapsed without an appeal (such approved Permit Revision, the “Approved Permit Revision”), Owner shall receive [*] of the Cost Savings associated with that Permit Revision (the “Owner Cost Savings”); provided that the Owner Cost Savings shall not exceed $2,200,000 in the aggregate.  Owner shall, at its cost, use commercially reasonable efforts to promptly take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to assist Contractor in preparing and submitting the Mine permit revision application and in obtaining RRC approval with respect to the Permit Revisions; provided that this shall not obligate Owner to engage or hire any third-party attorneys, accountants, experts, or consultants. To the extent that the RRC has not approved the Permit Revisions within [*] after the Effective Date, Contractor shall have an additional sixty (60) day period to pursue such revisions while also, if desired, 
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seeking Owner’s consent to continue efforts to secure such revisions. To the extent the RRC does not approve the Permit Revisions within this time period or the longer period, if any, agreed to in writing by Owner, the Permit Revision application shall be revised to remove the Permit Revision causing such delay or, to the extent the Permit Revision application cannot be severed, the Permit Revision application shall be withdrawn. 
						
	Permit Revision	Cost Savings
	[*]	[*]
	[*]	[*]
	[*]	[*]
	[*]	[*]

(b)To the extent the RRC partially approves any Permit Revision ([*]), Contractor shall re-calculate the applicable Cost Savings in an objective manner mutually acceptable to Contractor and Owner.
(c)Upon Owner’s request, not to exceed an administratively reasonable number of times per year, Contractor shall file with the RRC in the appropriate manner and form necessary to effectuate such request (along with any required supporting documentation) for a reduction in the Owner’s reclamation bond obligation under the Mine Permit (the “Reclamation Bond Reduction Work”).  Contractor in performing the Reclamation Bond Reduction Work will submit to the RRC the [*] bond calculation to Owner allowed under current laws and regulations and shall consult with Owner prior to any submittal to the RRC regarding the calculation and the potential bond reduction. 
4.3    Post-Mining Reclamation Work
Contractor shall perform all Work necessary to complete the Post-Mining Reclamation in accordance with the Mine permit as amended by the Approved Permit Revisions.
Section 5.[Reserved.]
Section 6.Mine Financial Arrangements
6.1    Certain Owner Responsibilities 
Owner shall provide to Contractor, free of any rent or other usage payment but exclusive of operation and maintenance costs other than as provided in Section 7.2(a), all permits, bonds, the insurance required under Section 8.5, the equipment currently located at the Mine that is identified on Exhibit D (“Owner Equipment”), existing Infrastructure and electric power (until Owner’s termination of the existing Panola Harrison electrical service agreement, which Owner anticipates will be [*] months after the Effective Date) required for the Work to be completed pursuant to this Agreement in accordance with the terms hereof; provided that Owner shall have 
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no obligation to maintain the existing Infrastructure except to the extent that such Infrastructure is damaged by an event of Force Majeure and Contractor requires such Infrastructure to be repaired to its pre-Force Majeure condition or a lesser condition specified by Contractor to enable Contractor to perform the Work, in which case Owner shall pay the cost of such repair. To the extent any piece of Owner Equipment is no longer available to perform the Work, the Parties shall meet and discuss in good faith whether (i) Owner shall provide a replacement piece of equipment reasonably acceptable to Contractor, which shall be of a similar type and in substantially the same condition as the underlying Owner Equipment or (ii) Contractor shall rent or otherwise acquire such replacement piece of equipment. 
Owner shall reimburse Contractor for all of the Direct Costs set forth in Section 7.2(e). For the avoidance of doubt Contractor shall have no obligation to provide any payment to Owner of any other funding or security, or incur or guaranty any indebtedness, lease or similar obligation, related to Owner’s obligations under this Section 6.
6.2    Certain Contractor Responsibilities
Except as otherwise provided herein, Contractor shall, for the Compensation set forth herein but otherwise at its expense, provide all Contractor Equipment, supplies and personnel (including any contractors, subcontractors, consultants, attorneys, or agents subject to Section 7.2(e)) necessary to perform the Work as well as the insurance required under Section 8.
6.3    Working Capital
Contractor shall provide all working capital required for Contractor to perform all Work pursuant to this Agreement.
6.4    Electric Power
Contractor shall bear all electricity costs, including demand charges and energy charges, associated with the operation of the dragline at the Mine and metered facilities at the Mine. Upon Contractor’s suspension of its dragline operations at the Mine, Owner shall pay all electricity costs, including demand charges and energy charges, associated with the Mine, including all unpaid demand charges and other amounts owed due to early termination of Owner’s contract with Panola-Harrison Electric Cooperative, Inc. which shall include, but not be limited to, upon the suspension of the dragline operations, the “Minimum Monthly Bill” set forth in paragraph No. 5(c) and Appendix B of that certain Electric Service Agreement, dated as of October 31, 2014, by and between Panola-Harrison Electric Cooperative, Inc. and Owner;  provided that Contractor shall bear any costs to remove the mine substation and the dragline powerline attached to the [*] substation; provided  further that Contractor shall provide a credit to Owner in each Monthly invoice to cover a proportionate usage/energy charge of electricity consumed by the operation of any pumps by Contractor at the Mine. Such usage will be determined by Contractor’s usage meters.  For the avoidance of doubt, Owner’s obligation to pay all electricity costs shall expire upon the effective termination of Owner’s contract with the Panola-Harrison Electric Cooperative and Owner’s payment of all amounts owed thereunder. 
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6.5    Owner’s Failure To Provide Mine Financial Arrangements
If Owner fails to provide any of the Owner Equipment at the Mine or Infrastructure contemplated by this Section 6 or if Owner fails to perform Owner’s other obligations hereunder and as a consequence, Contractor is unable to perform the Work as required by this Agreement, Contractor shall be deemed to have fulfilled its obligations under this Agreement if it produces the Work that Contractor can reasonably produce from time to time and no Contractor Default under Section 15.1.1(a) shall be deemed to occur to the extent caused by such Owner’s failure.
6.6    Inventory 
Owner shall provide the supplies inventory acquired pursuant to the Acquisition for the Work to be performed hereunder; provided that Owner shall have no obligation to supplement such inventory acquired pursuant to the Acquisition over the term of the Agreement. Except as set forth below, Contractor shall use such inventory as needed for the Work and Contractor shall provide a credit to Owner in the applicable Monthly invoice for Contractor’s proportionate usage of any such inventory part based on the value as reflected in Exhibit E of this Agreement; provided that Contractor shall have the discretion to use its own inventory to Contractor or inventory provided by third-parties to the extent such inventory is, in Contractor’s opinion, likely to have a lower all-in cost to Contractor; provided further that Contractor shall provide advanced notice to Owner of Contractor’s intention to obtain any inventory set forth on Exhibit E from a third-party in order to provide Owner with the opportunity to provide such inventory at a price equal to, or less than, such third-party’s offer.    
Section 7.Compensation
7.1    Compensation Prior to the Effective Date
Contractor agrees that Cabot is the primary payor of Compensation payable to Contractor for performance under the Amended and Restated LMA prior to the Effective Date, including the Demobilization Costs set out in Section 7.2(e)(vi).  
7.2    Compensation to Contractor
Owner shall pay all costs associated with the items it is obligated to provide under Section 6.1.  Commencing on the Effective Date, Owner shall pay Contractor in accordance with Section 11 an amount that equals the sum of (a) the Mobilization Fee (Section 7.2(a)), (b) the Progress Payments (Section 7.2(b)), (c) the Quarterly Fees (Section 7.2(c)), (d) the Per Diem Payments (Section 7.2(d)), (e) the Direct Costs (Section 7.2(e)) and the rates associated with any Task Order Services (Section 3.2).  All amounts payable by Owner during the term of the Agreement under this Section 7.2 shall constitute the “Compensation.”  Compensation paid to Contractor during the term of the Agreement shall not be adjusted to account for inflation or deflation of any kind.  For the avoidance of doubt, if the Work continues, for any reason, past the last Quarterly Fee payment, the only Compensation payable to Contractor will be Direct Costs and, if applicable, any remaining Progress Payments. For the further avoidance of doubt, while the initial amount of Compensation under Section 7.2(a), Section 7.2(b), and Section 7.2(c) equals the Fixed Fee, the Parties agree and acknowledge that other provisions in this Agreement may change the ultimate amount of Compensation due and payable to Contractor, including, but 
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not limited to, Per Diem Payments, Direct Costs, Task Order Services, and Approved Permit Revisions.  
(a)Mobilization Fee
Owner shall pay to Contractor a mobilization fee (the “Mobilization Fee”) in an aggregate amount of [*] to be payable in four quarterly installments of [*]; provided that if the Permit Revisions are not classified or processed by the RRC as a significant revision to the Mine permit, then the Mobilization Fee shall be reduced by [*] which reduction shall be pro-rated on the remaining quarterly installments (or in the event all quarterly installments of the Mobilization Fee have been paid as a [*] credit on Owner’s next [*] invoices). Owner shall pay the first $[*] installment of the Mobilization Fee within seven (7) days of the Effective Date and the remaining three (3) installments of the Mobilization Fee shall be included in the Monthly invoice of the first month of the next three successive calendar quarters after the Effective Date. 
(b)Progress Payments
(i)During the term of the Agreement, Owner shall pay to Contractor progress payments (each such payment, a “Progress Payment”) in an aggregate amount up to [*] (such total amount, the “Total Progress Payment”); provided that at the time of any Approved Permit Revision the Total Progress Payment shall be reduced by the Owner Cost Savings for any applicable Approved Permit Revision, provided that the aggregate amount of reductions to the Total Progress Payment shall not exceed $2,200,000.
(ii)Within five (5) Business Days of the Effective Date, Contractor shall conduct an initial drone survey of the Mine (the “Baseline Survey”).  Owner shall have the right to have a representative present to observe the Baseline Survey.
Within thirty (30) days after the Baseline Survey is completed, Contractor shall deliver to Owner the final Mine reclamation design topography map (the “Final Topo”). The Final Topo shall be compared to the Baseline Survey to determine, in accordance with good mine engineering practice, the total cubic yards of material to be moved (the “Aggregate Cubic Yards”) in connection with the Work.  For the avoidance of doubt, the Aggregate Cubic Yards shall exclude any materials that are moved that do not reduce the Aggregate Cubic Yards.
On the last working day of each month (or, in the sole discretion of Contractor, towards the last working day of each month in the event of inclement weather), Contractor shall perform a drone survey (the “Monthly Survey”), which Owner shall have the right to observe.  Contractor shall compare each Monthly Survey to the prior Month’s Monthly Survey, the Baseline Survey, and Final Topo to determine the percentage completion of work during each Month, which shall be measured in cubic yards.
(iii)With respect to each Month, Owner shall pay the earned percentage of the Total Progress Payment in accordance with the following formula:
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Monthly Progress Payment = (A/B) multiplied by the Total Progress Payment ([*])
Where:
A  =    the total cubic yards handled that reduce the Aggregate Cubic Yards remaining in the particular Month, and
B =     the Aggregate Cubic Yards.
In respect of any Month in which Contractor implements a change in Work plan (not included in the Permit Revisions) that reduces the Aggregate Cubic Yards, the total amount of cubic yards eliminated to achieve Final Topo will be removed from the denominator “B” above, resulting in an increased Monthly payment to Contractor for such Month; provided that if such change in Work plan is not approved by the RRC, at the time when the RRC would customarily approve such a change in the Work plan, and Post-Mining Reclamation Work is delayed more than 60 days due to Work necessary to correct such change in Work plan (or any order, recommendation, or advice opinion or letter by the RRC to suspend or cease work until such change is corrected), Contractor will be responsible for Owner’s actual out-of-pocket expenses due to such delay including, but not limited to, reclamation bond premiums and costs (such as capital reserve costs) as well other land holding costs in an aggregate amount not to exceed [*].
Contractor shall provide to Owner copies of the Baseline Survey, the Final Topo and each Monthly Survey, as well as any Work plan that is relied upon pursuant to the paragraph above.  
To the extent an Approved Permit Revision is obtained, Contractor shall adjust the Aggregate Cubic Yards based on comparing the recent Monthly Survey to the Final Topo, incorporating the updated Aggregate Cubic Yards as the denominator “B” above for such Progress Payment calculations. To the extent an Approved Permit Revision is obtained, Contractor shall adjust the Aggregate Cubic Yards based on comparing the recent Monthly Survey to the Final Topo, incorporating the updated Aggregate Cubic Yards (the “Adjusted Aggregate Cubic Yards”) as the denominator “B” above for such Progress Payment calculations. Further, Contractor shall adjust the Total Progress Payment to reflect the remaining balance after deducting all prior Monthly Progress Payments and Owner Cost Savings (the “Adjusted Total Progress Payment”). With respect to each Month after the Approved Permit Revisions are obtained, Owner shall pay the earned percentage of the Adjusted Total Progress Payment in accordance with the following formula:
Monthly Progress Payment = (A/B) multiplied by the Adjusted Total Progress Payment ([*] subtracted by all prior Monthly Progress Payments and Owner Cost Savings)
Where:
A  =    the total cubic yards handled that reduce the Adjusted Aggregate Cubic Yards remaining in the particular Month, and
B =     the Adjusted Aggregate Cubic Yards.
Examples (for explanatory purposes only) of the Progress Payment calculation (as well as payment adjusted by an Approved Permit Revision) are attached as Exhibit F.
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(c)Quarterly Fees
(i)Commencing January 1, 2023 and on the first day of each following calendar quarter in the year 2023 thereafter, Owner shall pay to Contractor a quarterly fee in the amount of [*] (the “2023 Fee”);
(ii)Commencing January 1, 2024 and on the first day of each following calendar quarter in the year 2024 thereafter, Owner shall pay to Contractor a quarterly fee in the amount of [*] (the “2024 Fee”);
(iii)Commencing January 1, 2025 and on the first day of each following calendar quarter for the years 2025 through 2030, Owner shall pay to Contractor a quarterly fee in the amount of [*] (the “2025-2030 Fee”).
(d)Contingency Payments 
(i)Contractor shall diligently conduct the Work without suspension (except for Force Majeure, rain days, or to the extent allowed under Section 6.5 or Section 15) for the first 365 Days after the Effective Date. To the extent not limited by the foregoing clause, if Contractor elects to suspend its field Work activities due to the lack of Work that can be accomplished without interfering with the Work as contemplated after acceptance of the Permit Revisions prior to RRC approval of any Permit Revisions, Owner shall pay Contractor a per diem payment of [*] (the “Per Diem Permit Delay Payment”) for each day the field activities are suspended; provided that such Per Diem Permit Delay Payments shall not exceed $[*] in the aggregate. Contractor shall provide Owner with at least thirty (30) days advanced written notice prior to any anticipated potential impact due to the RRC’s failure to approve any Permit Revisions. 
(ii)Commencing in 2021, if total precipitation exceeds 0.5 inches or more in any Day (rain day) more than 34 times, Owner shall pay Contractor a per diem amount of [*] for each rain day in excess of 34 days (the “Inclement Weather Per Diem Payment”); provided that such Inclement Weather Per Diem Payments shall not exceed [*] in the aggregate for all years. Contractor shall provide Owner with written notice when rain days in any year exceed 34. 
Contractor shall not be entitled to a Per Diem Permit Delay Payment and an Inclement Weather Per Diem Payment on the same Day. Notwithstanding anything to the contrary, Contractor shall not be entitled to any Per Diem Payments to the extent Contractor has completed dirt Work. 
(e)Direct Costs
For the purpose of this Agreement and except as otherwise expressly stated, “Direct Costs” shall mean the costs actually incurred in accordance with GAAP each Month by Contractor performing its obligations under this Agreement related to the following:
(i)Contractor’s out-of-pocket third-party attorney’s costs, third-party expert’s costs and other third-party legal expenses to the extent there is a public hearing, a 
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hearing on the merits or any litigation relating to the Permit Revisions, in each case, Contractor shall consult with Owner regarding selection of such third-parties and the potential or expected cost in advance of engaging or incurring such cost; provided that [*] is a mutually acceptable legal counsel for purposes of this Section 7.2(e)(i); 
(ii)[*] of any Owner Equipment “Major Repairs” (excluding any “Major Repairs” necessitated by Contractor’s negligence) actual costs in excess of [*]; provided that the costs incurred by Owner or its Affiliates with respect to the Major Repairs shall not exceed the aggregate amount of the Owner Cost Savings; 
(iii)Security services provided for the Mine and Mine facilities; 
(iv)Actual costs of mine permit fees and mine reclamation bonding costs;
(v)Any property taxes and other fees imposed by any governmental authority, however, this shall exclude any fees or penalties imposed on the Owner, the Mine or the Contractor due to the Contractor’s negligence, non-compliance with any permit requirements, or non-compliance with the Federal Mine Safety and Health Act of 1977, as amended or notice of violations from the Texas Commission on Environmental Quality;
(vi)Contractor’s demobilization costs, vacation payout costs and severance-related costs and expenses as provided in the Agreement, whether incurred by Contractor before or after termination of the Agreement (“Demobilization Costs”) in the aggregate amount of [*]. To the extent each of the following installments have not been paid by Cabot before the dates indicated, Owner shall pay each of the installments on the dates indicated: (i) [*]; provided that no additional Demobilizations Costs will accrue (or be the responsibility or liability of Owner) after the Effective Date;
(vii)all costs associated with repairs to Infrastructure only to the extent specified in Section 6.1; 
(viii)all costs associated with preparing the dragline for long-term storage or suspending or de-commissioning the dragline at the Mine, including [*] of all costs, which shall not exceed [*] in the aggregate, related to the dragline walkway construction and relocation of the dragline from the active pit to the facilities site;
(ix)all out-of-pocket third-party attorney’s costs, third-party expert’s costs and other third-party legal expenses associated with the Reclamation Bond Reduction Work; 
(x)all costs associated with Contractor’s renting or otherwise acquiring any replacement equipment as set forth in Section 6.1; 
(xi)all documented incremental costs incurred to complete the actual physical dirt moving or physical reclamation work as a result of a change in any law or regulation of any federal, state or local governmental authority or in any final interpretation issued thereof by any court or administrative agency with 
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jurisdiction over the Work after the date on which this Agreement was executed; and
(xii)all costs incurred by Contractor to establish and record any conservation easement or deed restriction, as well as to fund any endowment associated therewith and fees of any steward thereof or, if a third party steward cannot be secured, any costs incurred by Contractor to the extent Contractor is (A) required to perform any additional compensatory mitigation, which could include additional dirt work or modification of already-completed dirt work or an addition of or change in vegetative cover or plantings, or (B) required to purchase any mitigation credits. 
Upon the Effective Date, Contractor shall assume the obligation to complete, at its cost, up to [*] of Major Repairs.  Major Repairs shall be defined as the replacement or rebuilding of significant mechanical components that allows the asset to reach its useful service life or to extend that life (the “Major Repairs”).  Major Repairs include, but are not limited to, the examples set forth on Exhibit G.  Any Major Repairs in excess of [*] shall be allocated equally among Contractor and Owner subject to Section 7.2(e)(iv).  Upon incurring Major Repairs in the aggregate amount of [*], Contractor shall notify and consult with Owner at the next Monthly meeting scheduled to occur pursuant to Section 10.3 regarding the status of any upcoming Major Repairs.  Prior to commencing any Major Repairs in excess of [*], the Parties shall meet and discuss in good faith whether such Major Repair is necessary or whether a less expensive option is available and acceptable to Contractor.
Any Direct Costs incurred by an Affiliate of Contractor and charged to Contractor shall be included only at the cost to such Affiliate without addition for any intercompany profit or service charge. The Direct Costs shall be paid by Owner to Contractor upon receipt of Contractor’s invoice. 
Section 8.Insurance
8.1    Contractor’s Insurance
Contractor shall obtain and maintain insurance of such available types, limits, coverages and amounts and with such insurance carriers and agents as may periodically be required, requested or approved by Owner applicable to the Contractor Equipment and any Contractor-owned property at the Mine, the Work and personnel at the Mine or utilized in connection therewith.  Such insurance shall include but shall not be limited to public liability, contractual liability, fire insurance with extended coverage and additional extended coverage, insurance covering physical damage to Contractor Equipment, and workers’ compensation insurance as required by law.  Such insurance shall provide for such deductible amounts as Contractor shall elect.
8.2    Subcontractor’s Insurance
Contractor shall instruct all of its contractors, subcontractors and any Affiliate of Contractor engaged in work on or for the Mine to comply with the applicable workers’ compensation laws of the State of Texas and to maintain such other available insurance as Owner deems advisable.
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8.3    Owner as an Additional Insured 
Owner shall be added as an additional insured (unless otherwise prohibited by law), as to all insurance acquired by Contractor pursuant to this Agreement (if prohibited by law, the policy shall contain a waiver of subrogation by the insurer against the additional insured) but only with respect to liability caused by an act or failure to act by Contractor.
8.4    Contractor’s Certificate of Insurance
Contractor shall, upon Owner’s request, procure from the company or companies writing the insurance coverages required thereunder, certificates that such insurance shall not be canceled or materially changed without thirty (30) Days’ advance notice to Owner.  In the event of reduction in coverage, replacement or cancellation, Contractor shall obtain equivalent coverage to replace the policies so reduced or canceled.  Contractor further agrees to furnish Owner upon request from time to time with satisfactory evidence that such insurance in keeping with the minimum requirements hereof is being properly maintained and, when requested to do so, shall furnish Owner with certified copies of all policies, endorsements and riders.
8.5    Owner’s Insurance
Owner shall obtain and maintain insurance of such available types, limits, coverages and amounts and with such insurance carriers and agents as may periodically be reasonably required by Contractor applicable to the Mine, the Owner Equipment and the existing Infrastructure at the Mine.  Such insurance shall include but shall not be limited to public liability, contractual liability, fire insurance with extended coverage and additional extended coverage, insurance covering physical damage to Owner Equipment, Mine reclamation bonds and workers’ compensation insurance as required by law.  Such insurance shall provide for such deductible amounts as Owner shall from time to time elect.
8.6    Contractor as an Additional Insured 
Contractor shall be added as an additional insured, as applicable (unless otherwise prohibited by law), as to all insurance acquired by Owner pursuant to this Agreement (if prohibited by law, the policy shall contain a waiver of subrogation by the insurer against the additional insured) but only with respect to liability caused by an act or failure to act by Owner.
8.7    Owner’s Certificate of Insurance
Owner shall, upon Contractor’s request, procure from the company or companies writing the insurance coverages required thereunder, certificates that such insurance shall not be canceled or materially changed without thirty (30) Days’ advance notice to Contractor.  In the event of reduction in coverage, replacement or cancellation, Owner shall obtain equivalent coverage to replace the policies so reduced or canceled.  Owner further agrees to furnish Contractor upon request from time to time with satisfactory evidence that such insurance in keeping with the minimum requirements hereof is being properly maintained and, when requested to do so, shall furnish Contractor with certified copies of all policies, endorsements and riders.
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Section 9.[Reserved.]
Section 10.Records and Audits
10.1    Records
Contractor agrees to maintain adequate records satisfactory to Owner in connection with Direct Costs and Progress Payments hereunder, including, but not limited to, the verification of all provisions under this Section 10.  Contractor further agrees to retain all such work records for a period of not less than seven (7) Years after completion of such work.
10.2    Examination of Books and Records
Owner and its duly authorized representatives shall have the right at any time on reasonable notice in writing to Contractor to examine the records and books of account of Contractor relating to the computation of payments, Compensation or other monies paid to Contractor by Owner under this Agreement, and to make copies of or take extracts therefrom, subject to any Applicable Laws or Contractor policies regarding employee records.  Payment or payments under this Agreement shall not be deemed a waiver of any rights of Owner to have any payments due hereunder corrected.  All exceptions, payment corrections, or other matters identified in reviews of books and records shall be resolved by mutual agreement of the Parties, and corrections, credits or additional charges shall be included in the next regular Monthly invoice.
10.3    Periodic Inspections and Meetings
Owner, any of its Affiliates or the employees, agents or contractors of such persons, shall, upon reasonable notice and in accordance with the requirements of Applicable Law be afforded complete access to the Mine, the records maintained under Section 10.1 and copies of any of Contractor’s environmental and permitting materials, engineering studies, drone surveys, rain day records, Major Repairs cost records and Demobilization Costs records.  Prior to entering the Mine site, Owner’s representative shall check in with appropriate personnel at the entrance to the Mine site and access shall be allowed unless Contractor determines such access would interfere with or disrupt Contractor’s performance hereunder, in which case access shall be granted as soon as practicable thereafter.  Such inspection shall not be for any purpose or reserved right of controlling the methods and manner of the performance of the work by Contractor under this Agreement, but shall be to assure Owner that Contractor is performing its obligations under this Agreement.
Owner and Contractor shall meet on a Monthly basis, virtually or at the Mine site, to discuss the progress of the Permit Revisions, the progress of the Work, any anticipated upcoming Direct Costs, and the status of any Major Repairs. On an annual basis, Owner and Contractor shall meet, at a location and time to be mutually agreed upon, to discuss the Work for the upcoming calendar year, including to discuss the potential timing and amount of any projected Direct Costs for the upcoming calendar year, along with a forecast of projected Progress Payments; provided that this annual budget meeting may take the place of the applicable Monthly status meeting between Owner and Contractor. 
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Section 11.Billing and Payment
11.1    Monthly Invoices
On or before the [*] Day of each Month, Contractor shall furnish Owner with a written invoice which sets forth the amount of the Compensation due Contractor under Section 7 in the immediately preceding Month.  The Monthly invoices shall be in such form and detail as reasonably requested by Owner and shall provide evidence of Contractor’s Monthly Survey and the calculation of the applicable Progress Payment and any Direct Costs.  Contractor shall furnish promptly such additional documents and evidence as Owner may reasonably request in support of such Monthly invoice.
(a)Owner shall pay Contractor the amount of such invoice within [*] Days of Owner’s receipt of the same by wire transfer in immediately available U.S. federal funds.
(b)All such billings and payments shall be subject to audit by Owner to the extent provided by Section 10.1 and corrections and adjustments where necessary.  The correction and adjustment of any undisputed deficiencies shall be adjusted on the next Monthly billing following determination of the amounts of such undisputed deficiencies.
(c)If Owner disagrees with the amount of any invoice for any reason, Owner shall immediately notify Contractor of such disagreement so that the difference may be resolved before the date on which payment for such invoice is due.  If Owner fails to give such notification, or if Owner and Contractor resolve such disagreement before the date payment is due, such invoice shall be paid in full by Owner.  If Owner gives such notification and Owner and Contractor do not resolve such disagreement before the date payment is due, Owner shall pay the amount of the invoice on the date payment is due.  If Owner and Contractor are not able to resolve the dispute within thirty (30) Days following the date on which the disputed payment was due, the Parties shall resolve the dispute pursuant to the provisions of Section 17.  Upon resolution of the dispute, Contractor shall immediately pay to Owner any portion of the disputed amount that is owing, plus interest on such amount owed, accruing at [*].  Payment or payments under this Section 11.1 shall not be deemed a waiver of any rights of Owner to have the invoice hereunder corrected or an appropriate credit applied to the next Monthly invoice following the determination of the amount of such credit.
(d)To the extent Contractor agrees to sell  water drawn from a surface pond to a third-party, Contractor shall provide a credit to Owner in the applicable Monthly invoice in an amount equal to [*] of the proceeds received from such third-party during the applicable period.  Contractor shall defend, indemnify and save harmless Owner from and against all liability for all third-party claims, demands, cause of action, or suits of any nature arising out of such sales by Contractor; and this sentence shall not be limited by Section 23 and Section 25 of this Agreement.
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Section 12.[Reserved]
Section 13.Force Majeure
13.1    General
If either Party is rendered unable, wholly or in part, by Force Majeure (as hereinafter defined) to carry out any of its obligations under this Agreement, and if the Party experiencing a Force Majeure provides notice to the other Party within five (5) Business Days after such Party is aware of the occurrence of such Force Majeure, including a detailed explanation of such Force Majeure, then the obligations of the Party giving such notice shall be suspended to the extent made necessary by such Force Majeure from the inception of the Force Majeure and during its continuance, but for no longer; provided, however, that the Party giving such notice shall diligently use its best efforts to eliminate the cause and effect of such Force Majeure insofar as possible with all reasonable dispatch.  No such event of Force Majeure shall excuse, alter or diminish the obligation of Owner to make the payments provided for in Section 7.
13.2    Definition
The term “Force Majeure” as used in this Agreement shall mean any and all causes beyond the reasonable control and without the fault or negligence of the Party failing to perform provided that such Party uses reasonable diligence to avoid or mitigate such failure to perform, such as acts of God, strikes, lockouts or other industrial disturbances, labor disputes, labor or material shortages, acts of the public enemy, wars, blockades, insurrections, riots, acts of terrorism, any pandemic or epidemics and any government actions resulting from such pandemic or epidemic, landslides, adverse geological conditions, faults in lignite seams, lightning, hurricanes, tornadoes, earthquakes, fires, storms, floods, washouts, major breakdowns of or damage to (a) Mine facilities, (b) Owner Equipment or Contractor Equipment or (c) facilities, interruptions to or contingencies of transportation, orders or acts of a military authority or civil authority (including, without limitation, interruptions, whether by action or inaction, by Federal, state or local governments or court orders, present and future, or acts or failures to act of any regulatory body having proper jurisdiction) and any other causes, whether of the kind herein enumerated or otherwise, beyond the reasonable control and without the fault or negligence of the Party failing to perform, that wholly or partly prevent the Work to be performed under this Agreement.  The settlement of strikes or lockouts or industrial disputes or disturbances shall be entirely within the discretion of the Party having the difficulty, and the above requirement that any Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes or lockouts by acceding to the demands of the opposing Party therein when such course is inadvisable in the discretion of the Party having the difficulty.  
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Section 14.Conduct of Operations
14.1    Contractor’s Conduct of Operations
Contractor shall conduct its Work hereunder in accordance with this Agreement and in a manner determined in a safe, careful, good workmanlike manner and at all times use commercially reasonable efforts to comply with Federal Mine Safety and Health Administration regulations and all other Applicable Laws as well as any environmental or RRC permits or requirements; provided, however, that Contractor shall have the right to contest in good faith through appropriate legal proceedings the validity or applicability of any Applicable Laws; and further, provided, however, Contractor shall not be in default in the performance of its obligations under this Agreement if and to the extent such failure to perform its obligations is due to (a) an event of Force Majeure or (b) the failure of Owner to perform its obligations hereunder.
14.2    Contractor’s Performance
Contractor represents that its management and supervisory personnel and a major portion of its other professional employees shall be well qualified and trained personnel with established credentials in work similar to the Work and that it shall utilize and exercise high standards of surface lignite mining practices and mine reclamation practices in the performance of all of its undertakings and obligations reflected in this Agreement.
14.3    Equipment
14.3.1    Owner hereby grants to Contractor a license to use the Owner Equipment to perform Contractor’s obligations under this Agreement. Contractor shall use the Owner Equipment at the Mine (i) as it sees fit in its sole discretion, consistent with the applications for which such Owner’s Equipment was designed and manufactured, (ii) in accordance with the manufacturer’s operating and maintenance guideline, guide books, and manuals, and (iii) so as to cause the Owner Equipment to be in good repair and operating condition and in substantially the same condition as Contractor received such Owner Equipment, subject to ordinary wear and tear associated with fully performing the Work. 
14.3.2    Upon Contractor no longer operating any Owner Equipment or Contractor Equipment at the Mine, North American Coal, in its sole discretion, shall have the right to purchase, and Owner shall have the obligation to sell to North American Coal, any or all of the Owner Equipment so identified in Exhibit D at purchase prices equal to the fair market value of the Owner Equipment as determined by a third-party appraiser agreed upon by North American Coal and Owner; provided that, after Contractor is no longer operating such Owner Equipment, Owner shall have discretion to relocate certain Owner Equipment to its Affiliate’s locations in Louisiana including the Five Forks mine facility located in Saline, Louisiana, the Red River Plant facility located in Coushatta, Louisiana, or the Natchitoches Processing Facility located in Natchitoches, Louisiana, as set forth on Exhibit D, and North American Coal’s right to purchase any such moved equipment shall not apply.  Such third-party appraiser’s determination shall be rendered within thirty (30) days of his or her engagement and shall be final.  In the event the 
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Parties are unable to agree upon a mutually agreeable third-party appraiser within thirty (30) days of North American Coal notifying Owner of North American Coal’s intent to exercise its right to purchase Owner Equipment, North American Coal and Owner shall each select a third-party appraiser and then the two selected third-party appraisers shall then select a third third-party appraiser.  The third third-party appraiser shall determine the fair market values of the Owner Equipment to be used as the purchase prices of the Owner Equipment and such appraiser’s determination shall be rendered within thirty (30) days of his or her engagement and shall be final.
Section 15.Defaults; Remedies
15.1    Contractor Default
15.1.1    For the purposes of this Agreement, any one of the following events is a “Contractor Default”:
(a)Contractor fails to perform the Work in accordance with the performance standards contained in Section 14.1, and such failure continues unremedied for [*] Days after Owner has provided notice thereof to Contractor;
(b)Contractor shall commence a voluntary case under any chapter of the Federal Bankruptcy Code, or shall consent to (or fail to controvert in a timely manner) the commencement of an involuntary case against Contractor under such Code;
(c)Contractor shall institute proceedings for liquidation, rehabilitation, readjustment or composition (or for any related or similar purpose) under any law other than the Federal Bankruptcy Code, or shall consent to (or fail to controvert in a timely manner) the institution of any such proceedings against Contractor;
(d)Contractor shall be insolvent (within the meaning of any applicable law), or shall be unable, or shall admit in writing its inability, to pay its debts generally as they come due, or shall make an assignment for the benefit of creditors or enter into any arrangement for the adjustment or composition of debts or claims;
(e)A court or other governmental authority or agency having jurisdiction in the premises shall enter a decree or order (i) for the appointment of a receiver, liquidator, assignee, trustee or sequestrator (or other similar official) of Contractor or of any part of the property of such person or for the winding-up or liquidation of the affairs of such person, and such decree or order shall remain in force undischarged and unstayed for a period of more than [*] Days, or (ii) for the sequestration or attachment of any property of Contractor without its unconditional return to the possession of such person, or its unconditional release from such sequestration or attachment, within [*] Days thereafter;
(f)A court having jurisdiction in the premises shall enter an order for relief in an involuntary case commenced against Contractor under the Federal Bankruptcy Code, and such order shall remain in force undischarged and unstayed for a period of more than [*] Days;
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(g)A court or other governmental authority or agency having jurisdiction in the premises shall enter a decree or order approving or acknowledging as properly filed or commenced against Contractor a petition or proceedings for liquidation, rehabilitation, readjustment or composition (or for any related or similar purpose) under any law other than the Federal Bankruptcy Code, and any such decree or order shall remain in force undischarged and unstayed for a period of more than [*] Days; 
(h)The RRC directs Contractor to cease operations as a result of an Affiliate of Contractor failing to comply with Applicable Law [*] and such restriction remains in place for a period of more than [*] Days; or
(i)Contractor shall take corporate action for the purpose or with the effect of authorizing, acknowledging or confirming the taking or existence of any action or condition specified in paragraphs (c), (d) or (e) of this Section 15.1.1.
15.1.2    Notwithstanding anything herein to the contrary, if Owner claims that a Contractor Default of the nature described in this Section 15.1.1 has occurred and is continuing, Contractor shall have [*] Days (notwithstanding the provisions of Section 17) after its receipt of notice from Owner of such Contractor Default to perform the following:
(a)Correct such Contractor Default, or, if such Contractor Default is not correctable within such [*] Day period, to submit to Owner for its approval, which approval shall not be unreasonably withheld, a plan and timetable for correcting such Contractor Default.  If such Contractor Default is not corrected within such time, or any extended time approved by Owner, which approval shall not be unreasonably withheld, Owner’s remedies provided for herein shall thereupon be fully available; or
(b)Give Owner notice that Contractor disputes that such Contractor Default has occurred and is continuing and that Contractor is submitting the matter to the dispute resolution in accordance with the provisions of Section 17.  If dispute resolution is so sought, Contractor shall not be deemed in default until the matter has been determined finally as set out under the provisions of Section 17.
15.2    Remedy of Owner Upon Contractor Default
Upon the occurrence of any Contractor Default identified in Section 15.1, Owner shall immediately suspend all further sums payable to Contractor or North American Coal until the Contractor Default is resolved, and Contractor shall be responsible for any fees or penalties that may accrue or be levied against Owner as a result of such Contractor Default.  Further, subject to the notice and cure provisions of Section 15.1.2, Owner, in its discretion (and in addition to any other rights or remedies available to Owner) may terminate this Agreement, in which event this Agreement shall terminate on the date specified in a written termination notice from Owner to Contractor.  If Owner elects to terminate this Agreement pursuant to this Section 15.2, Owner shall have the right to pursue any and all remedies available to Owner pursuant to this Agreement.  
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15.3    Limitations on Owner’s Rights Under Section 15
Notwithstanding anything to the contrary contained in Section 15, Owner shall not have the right to exercise its rights under Section 15.2 if a Contractor Default of the nature described in Section 15.1.1 has occurred and is continuing as a result of any of the following:
(a)any failure by Owner to carry out its obligations under this Agreement, provided that Contractor provided notice to Owner of such failure to carry out its obligation; or
(b)any failure by Owner to pay to Contractor any sum due Contractor from Owner pursuant to this Agreement, except as allowed under Section 15.2; or
(c)Contractor’s compliance with any directions and/or prohibitions of Owner to Contractor contrary to Contractor’s recommendations and advice as to the Work; or
(d)an objectively reasonable difference between Contractor and governmental authorities as to the interpretation of Applicable Laws, impossibility of compliance therewith, or Owner’s consent to non-compliance such that a reasonable person in the position of Contractor would agree with such position.
15.4    Owner Default
15.4.1    For the purposes of this Agreement, any one of the following events is an “Owner Default”:
(a)Owner fails to pay Contractor any amount due under this Agreement that is not the subject of a bona fide dispute, and such failure continues unremedied for [*] Days after notice thereof by Contractor to Owner;
(b)Owner, without Contractor’s consent, fails to perform any of its other obligations hereunder;
(c)Owner shall commence a voluntary case under any chapter of the Federal Bankruptcy Code, or shall consent to (or fail to controvert in a timely manner) the commencement of an involuntary case against Owner under such Code;
(d)Owner shall institute proceedings for liquidation, rehabilitation, readjustment or composition (or for any related or similar purpose) under any law other than the Federal Bankruptcy Code, or shall consent to (or fail to controvert in a timely manner) the institution of any such proceedings against Owner;
(e)Owner shall be insolvent (within the meaning of any applicable law), or shall be unable, or shall admit in writing its inability, to pay its debts generally as they 
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come due, or shall make an assignment for the benefit of creditors or enter into any arrangement for the adjustment or composition of debts or claims;
(f)A court or other governmental authority or agency having jurisdiction in the premises shall enter a decree or order (i) for the appointment of a receiver, liquidator, assignee, trustee or sequestrator (or other similar official) of Owner or of any part of the property of such person or for the winding-up or liquidation of the affairs of such person, and such decree or order shall remain in force undischarged and unstayed for a period of more than [*] Days, or (ii) for the sequestration or attachment of any property of Owner without its unconditional return to the possession of such person, or its unconditional release from such sequestration or attachment, within [*] Days thereafter;
(g)A court having jurisdiction in the premises shall enter an order for relief in an involuntary case commenced against Owner under the Federal Bankruptcy Code, and such order shall remain in force undischarged and unstayed for a period of more than [*] Days;
(h)A court or other governmental authority or agency having jurisdiction in the premises shall enter a decree or order approving or acknowledging as properly filed or commenced against Owner a petition or proceedings for liquidation, rehabilitation, readjustment or composition (or for any related or similar purpose) under any law other than the Federal Bankruptcy Code, and any such decree or order shall remain in force undischarged and unstayed for a period of more than [*] Days; or
(i)Owner shall take corporate action for the purpose or with the effect of authorizing, acknowledging or confirming the taking or existence of any action or condition specified in paragraphs (c), (d) or (e) of this Section 15.4.1.
15.4.2    Notwithstanding anything herein to the contrary, if Contractor claims that an Owner Default of the nature described in Section 15.4.1 (excluding Owner defaults of the nature described in paragraph (a) of Section 15.4.1) has occurred and is continuing, Owner shall have [*] Days (notwithstanding the provisions of Section 17) after its receipt of notice from Contractor of such Owner Default to perform the following:
(a)Correct such Owner Default, or, if such Owner Default is not correctable within such [*] Day period, to submit to Contractor for its approval, which approval shall not be unreasonably withheld, a plan and timetable for correcting such Owner Default.  If such Default is not corrected within such time, or any extended time approved by Contractor, Contractor’s remedies provided for herein shall thereupon be fully available; or
(b)Give Contractor notice that Owner disputes that such Owner Default has occurred and is continuing and that Owner is submitting the matter to the dispute resolution in accordance with the provisions of Section 17.  If dispute resolution is so sought, Owner shall not be deemed in default until the matter has been determined finally determined as set out under the provisions of Section 17; or
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(c)With respect to an Owner Default of the nature described in Sections 15.4.1(c) through 15.4.1(i), Owner, pursuant to Section 19, assigns this Agreement to the surety or sureties that are underwriting the Reclamation Bond or the RRC. 
15.5    Remedy of Contractor Upon Owner Default
15.5.1    Upon the occurrence of any Owner Default and subject to the notice and cure provisions of Section 15.4.2, Contractor, in its discretion (and in addition to any other rights or remedies available to Contractor) may terminate this Agreement, in which event this Agreement shall terminate on the date specified in a written termination notice from Contractor to Owner.  Notwithstanding anything to the contrary herein, upon the failure of Owner to make any payment when due, Contractor, after [*] Business Days’ prior written notice to Owner, shall have the right to immediately suspend the performance of Contractor’s obligations under this Agreement until Owner remedies such payment, unless Owner has cured such payment failure prior to the expiration of such [*] Business Days.  If Contractor elects to terminate this Agreement, Contractor also shall have the right to pursue any and all remedies available to Contractor in equity or at law for any Owner Default.
15.5.2    Upon the occurrence of any Owner Default and subject to the notice and cure provisions of Section 15.4.2, Contractor or an Affiliate of Contractor shall have a right of first refusal to acquire certain or all assets of the Mine for the consideration and on the other terms and conditions at which Owner is willing to sell the Mine or such assets to a third party.
15.5.3    In the event that this Agreement terminates (except for a termination due to a Contractor Default) prior to the completion of the Post-Mining Reclamation, and thereafter lignite is mined from the Eight Mile Area of Interest by or for Owner or any of its Affiliates, Owner shall pay Contractor a production payment equal to [*] per ton, expressed in December 2018 dollars, with respect to all lignite so mined through December 31, 2039.  The production payment shall be escalated in the same manner as the G&A Amount, as provided in Section 7.2(a)(iv)(cc) of the Amended and Restated LMA, dated as of May 8, 2019, during the term of this Agreement and, if it becomes payable, during the payment term.
15.6    Limitations on Contractor’s Rights Under Section 15
15.6.1    Notwithstanding anything to the contrary contained in Section 15, Contractor shall not have the right to exercise its rights under Section 15.4.2(c) if an Owner Default of the nature described in Section 15.4.1 has occurred and is continuing as a result of any failure by Contractor to carry out its obligations under this Agreement.
Section 16.Effect of Waiver
Waiver by either Party of any breach by the other of any of the terms and provisions hereof or failure to exercise any option or right hereunder shall not be deemed to be a waiver of such breach, option or right on any other occasion of the same, nor a waiver of breach of any other term or condition nor a waiver of any other right to exercise any option or right.
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Section 17.Dispute Resolution
17.1    Except as otherwise provided in this Agreement, any dispute between the Parties arising out of this Agreement (including failure to agree on matters slated to be determined by mutual agreement) for which the ultimate resolution is not expressly provided by this Agreement shall be resolved as follows.  Authorized Representatives of the Parties shall first make a diligent good faith attempt to resolve the dispute by mutual agreement.  If the initial Authorized Representatives of the Parties fail to resolve the dispute within fourteen (14) days, senior representatives from each Party will meet to resolve the dispute. If the senior representatives are unable to resolve the dispute in fourteen (14) days, such dispute shall be subject to the remaining provisions below and in Section 24.
17.2    THE PARTIES MUTUALLY CONSENT TO THE JURISDICTION OF THE FEDERAL AND STATE COURTS IN HARRISON COUNTY, TEXAS. THE PARTIES MUTUALLY AGREE THAT THIS AGREEMENT IS A "MAJOR TRANSACTION" WITHIN THE MEANING OF THE TEXAS CIVIL PRACTICE AND REMEDIES CODE § 15.020.
17.3    [Reserved.]
17.4    [Reserved.]
17.5    [Reserved.]
17.6    The existence of a dispute that has or may become the subject of the dispute resolution provisions contained in this Section 17 shall in no way excuse either Owner or Contractor from performing its obligations under this Agreement, and each of the Parties shall continue to perform in accordance with the terms of this Agreement irrespective of the existence of any such dispute.
Section 18.[Reserved.]
Section 19.Assignment
This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and permitted assigns; provided, however, that this Agreement may not be assigned by either Contractor or Owner without the written consent of the other, which consent shall not be unreasonably withheld, except that either Party may assign its interest in this Agreement without the consent of the other Party in the event of a pledge, assignment or other security arrangement to secure indebtedness incurred for the purpose of or in connection with the performance under this Agreement.  For purposes of the foregoing sentence, a merger, consolidation, sale of stock (or equivalent equity interests or ownership interests) resulting in a change of control of a Party, or the sale of substantially all of the assets of the assigning Party or other similar transaction resulting in a change in control of a Party, shall constitute an assignment of this Agreement by such Party.  Notwithstanding anything to the contrary in this Section 19, 
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Owner may, in its sole discretion and without the need for any prior approval, assign this agreement to the surety or sureties that are underwriting the Reclamation Bond or the RRC.
Section 20.Notices
20.1    Owner, Contractor and North American Coal each hereby appoint the authorized representative (“Authorized Representative”) set forth in this Section 20 to receive notice on behalf of Owner and Contractor.
20.2    Any notice, required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when actually delivered to the Authorized Representative of Owner, Contractor or North American Coal (as hereinafter provided).  All notices shall be delivered pursuant to the following information:
20.2.1    Contractor’s Authorized Representative:
						
	Caddo Creek Resources Company, L.L.C.	
	[*]	
	[*]	
	[*]	
	[*]	

with a copy to:
						
	The North American Coal Corporation	
	[*]	
	[*]	
	[*]	
	[*]	
	[*]	

20.2.2    Owner’s Authorized Representative:
						
	Marshall Mine, LLC	
	[*]	
	[*]	
	[*]	

with a copy to:
						
	ADA Carbon Solutions (Operations), LLC	
	[*]	
	[*]	
	[*]	

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20.3    For purposes of this Section 20, notice shall be deemed to be “actually delivered” (i) when delivered personally to the Authorized Representative, (b) when sent to the Authorized Representative or by electronic mail (provided such notice is also sent via US Mail or by reputable express courier services (charges prepaid)) if delivered during normal business hours of the Authorized Representative, otherwise on the next Business Day, (c) one (1) Business Day after the date when sent to the Authorized Representative by reputable express courier service (charges prepaid), or (d) seven (7) Business Days after the date when mailed to the Authorized Representative by certified or registered mail, return receipt requested and postage prepaid.  Such notices shall be sent to the address provided for the Authorized Representative pursuant to Section 20.2 or to such other address as any Party hereto may, from time to time, designate in a notice delivered pursuant to the terms of this Section 20.
20.4    Each Party shall have the right to change its Authorized Representative by giving ten (10) Days’ advance notice to the other Party.
Section 21.Representations and Warranties of Contractor, Owner and North American Coal
As of the Effective Date, the Parties hereby provide representations and warranties as set forth below: 
21.1    Contractor represents and warrants to Owner that (i) Contractor is a limited liability company and a direct wholly-owned subsidiary of North American Coal and is validly existing and in good standing under the laws of the state of Nevada and is qualified to do business in the state of Texas, (ii) the execution and delivery of this Agreement by Contractor and the performance of its obligations hereunder have been duly authorized by the managers of Contractor, (iii) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder by Contractor shall, or after the lapse of time or giving of notice shall, conflict with, violate or result in a breach of, or constitute a default under the certificate of formation or the limited liability company agreement of Contractor or any Applicable Laws, or conflict with, violate or result in a breach of or constitute a default under any material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to which Contractor is a party or by which it is bound, or require any approval, consent, authorization or other action by any court, governmental authority or regulatory body or any creditor of Contractor or any other person or entity, (iv) this Agreement constitutes a valid and binding obligation of Contractor and is enforceable against Contractor in accordance with its terms, except as such enforceability may be limited by (1) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (2) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), and (v) there is no material action, proceeding or investigation pending, or, to the best knowledge of Contractor, threatened against it.
21.2    Owner represents and warrants to Contractor that (i) Owner is a limited liability company and a direct wholly-owned subsidiary of ADA Carbon Solutions (Operations), LLC and is duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business in the state of Texas, (ii) the execution and delivery of 
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this Agreement by Owner and the performance of its obligations hereunder have been duly authorized by all requisite action, (iii) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder by Owner shall, or after the lapse of time or giving of notice shall, conflict with, violate or result in a breach of, or constitute a default under the articles of organization or limited liability company agreement of Owner or any Applicable Laws or conflict with, violate or result in the breach of or constitute a default under any material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to which Owner is a party or by which it is bound, or require any approval, consent, authorization or other action by any court, governmental authority or regulatory body or any creditor of Owner or any other person or entity, (iv) this Agreement constitutes a valid and binding obligation of Owner and is enforceable against Owner in accordance with its terms, except as such enforceability may be limited by (1) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (2) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), (v) there is no action, proceeding or investigation pending, or, to the best knowledge of Owner, threatened against it, (vi) Owner has and shall have during the term of this Agreement all fee, leasehold and other interests in real property that are required to allow Contractor to perform its obligations under this Agreement, and (vii) Owner, in the Acquisition, acquired all of the equipment at, and real property assets of, the Mine that were owned by Owner as of May 31, 2020.  Owner and its Affiliates shall use commercially reasonable efforts to promptly take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to obtain RRC approval with respect to the Acquisition as soon as reasonably practicable.
21.3    North American Coal represents and warrants to Owner that (i) North American Coal is a corporation and is validly existing and in good standing under the laws of the state of Delaware and is qualified to do business in the state of Texas, (ii) the execution and delivery of this Agreement by North American Coal and the performance of its obligations hereunder have been duly authorized by all requisite action, (iii) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder by North American Coal shall, or after the lapse of time or giving of notice shall, conflict with, violate or result in a breach of, or constitute a default under the certificate of incorporation or bylaws of North American Coal or any Applicable Laws, or conflict with, violate or result in a breach of or constitute a default under any material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to which North American Coal is a party or by which it is bound, or require any approval, consent, authorization or other action by any court, governmental authority or regulatory body or any creditor of North American Coal or any other person or entity, (iv) this Agreement constitutes a valid and binding obligation of North American Coal and is enforceable against North American Coal in accordance with its terms, except as such enforceability may be limited by (1) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (2) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), and (v) there is no action, proceeding or investigation pending, or, to the best knowledge of North American Coal, threatened against it.
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21.4    ADA represents and warrants to Contractor that (i) ADA is a limited liability company and is validly existing and in good standing under the laws of the state of Delaware, (ii) the execution and delivery of this Agreement by ADA and the performance of its obligations hereunder have been duly authorized by all requisite action, (iii) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder by ADA shall, or after the lapse of time or giving of notice shall, conflict with, violate or result in a breach of, or constitute a default under the certificate of formation or limited liability company agreement of ADA or any Applicable Laws, or conflict with, violate or result in a breach of or constitute a default under any material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to which ADA is a party or by which it is bound, or require any approval, consent, authorization or other action by any court, governmental authority or regulatory body or any creditor of ADA or any other person or entity, (iv) this Agreement constitutes a valid and binding obligation of ADA and is enforceable against ADA in accordance with its terms, except as such enforceability may be limited by (1) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (2) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), (v) there is no action, proceeding or investigation pending, or, to the best knowledge of ADA, threatened against it and (vi) ADA and Owner have the sole right to bring any and all suits, actions, causes of action, demands and claims arising under the Amended and Restated LMA or related to the performance of the Amended and Restated LMA prior to the Effective Date.

Section 22.Proprietary and Confidential Data; Publications and Photographs
22.1    Proprietary and Confidential Data
22.1.1    Each Party has and shall furnish the other Party with data or other information which is proprietary and/or confidential.  The receiving Party shall have the right to use or disclose to third parties such proprietary and/or confidential data only, in its sole best judgment, for the purposes of licensing, construction, operation or maintenance as is required by Applicable Laws and does not have the right to publish or otherwise disclose it to third parties for any reason without written approval of the disclosing Party.  If a dispute arises between the Parties with respect to any work, either Party may disclose the other’s proprietary and/or confidential data on a confidential basis to any expert provided that such expert sign a statement agreeing not to further disclose such proprietary and/or confidential data.
22.1.2    Proprietary and confidential information shall not include, however, information of either Party that (i) is already in the public domain through no act of the Party that received such information from the disclosing Party, as demonstrated by written or other tangible evidence, (ii) becomes generally available to the public other than as a result of a disclosure by the receiving Party or its Authorized Representative(s) or (iii) becomes available to the receiving Party on a non-confidential basis from a person other than the disclosing Party (or its Authorized Representative(s)) who is not otherwise bound by a confidentiality agreement with the disclosing Party and who has an independent right to such information.
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22.1.3    Notwithstanding anything in this Section 22.1 to the contrary, either Party shall have the right to disclose such proprietary and/or confidential data to any governmental authorities when required by same but shall exert reasonable effort to secure confidential treatment of such data to be so disclosed.
22.2    Public Disclosures
Neither Party shall publish or release any photographs, make any announcement or release any information relating to the other Party or any of its Affiliates, this Agreement or any discussions between the Parties to any member of the public or press unless prior written consent is obtained from the other Party, which consent shall not be unreasonably withheld; provided, however, that either Party may disclose this Agreement and its related documents (a) to its employees, directors, shareholders, members, Affiliates, accountants, attorneys, auditors, insurers, potential investors and potential lenders, and/or (b) to any governmental authority having jurisdiction over such Party to the extent necessary for such Party to comply with its obligations to the governmental authority in which event such Party shall notify the other Party as far in advance as reasonably possible of the anticipated disclosure to such governmental authority; provided, further, however, that a Party that has, or has an Affiliate that has, securities that are publicly traded may issue a press release or make a public disclosure without the consent of the other Party to the extent that the release or disclosure is required by applicable securities laws.  If a Party determines that it is required by applicable securities laws to issue any such press release or make any such disclosure, it shall provide notice to the other Party reasonably in advance of the release or disclosure.
22.3    Damages for Disclosure
Any breach of the covenants made in Section 22 shall subject the breaching Party to payment for damages.
Section 23.Waivers, Remedies and Amendments
23.1    Exclusive Remedies; Limitations on Damages
23.1.1    The remedies provided for in this Agreement are the exclusive remedies of the Parties for violation of the terms and conditions of this Agreement.  No Party shall seek, and each Party hereby waives the right to seek, and agrees to prevent its Affiliates from seeking, any other remedies, whether available at law, in equity or otherwise, except where expressly provided for by the terms of this Agreement.  Except as set forth in this Section 23.1.1 and Section 23.1.2, each Party hereby agrees that only the actual damages suffered by a Party shall be sought and may be recovered, and that none of the following types of damages shall be sought or recovered:  consequential, indirect, exemplary and punitive damages, lost profits or revenues, and all similar types of damages and remedies.  
23.1.2     If this Agreement prematurely terminates prior to the completion of the Work for any reason other than a Contractor Default, Owner, in addition to the amounts payable under Section 15.5, shall pay promptly to Contractor the Agreed Damages.  “Agreed Damages” shall 
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mean if this Agreement terminates (i) on or prior to December 31, 2021, [*] of the remaining Progress Payments outstanding and [*] of all then-remaining Quarterly Fees not yet paid under the Agreement, (ii) on or prior to December 31, 2022, [*] of the remaining Progress Payments outstanding and [*] of all then-remaining Quarterly Fees not yet paid under the Agreement and (iii) on January 1, 2023 or thereafter, [*] of the remaining Progress Payments and [*] of all then remaining Quarterly Fees not yet paid under the Agreement.   Owner agrees that the Agreed Damages are a reasonable measure of the damages suffered by Contractor in the event this Agreement terminates prior to the end of the primary term of this Agreement.   As such, the Agreed Damages constitute reasonable liquidated damages and not a penalty.
23.2    Amendments
Any modification or amendment of the terms and provisions of this Agreement shall be valid and effective only if and when made in writing and duly executed by the Parties.
Section 24.Governing Law
This Agreement shall be governed by, and construed and interpreted in accordance with the laws of the State of Texas without regard to its conflicts of laws principles.  
Section 25.Relationship of the Parties
25.1    Owner and Contractor agree that Contractor, in performing its obligations hereunder, shall be an independent contractor, and not the agent, servant or employee of Owner.  Nothing contained in this Agreement shall be construed to constitute or create a joint venture, trust, mining partnership, commercial partnership, fiduciary relationship or other relationship between Owner and Contractor whereby either Party would be liable for the acts and deeds of the other Party hereto, except as specifically set forth herein.
25.2    Contractor shall be responsible for all acts and omissions of subcontractors, its and their suppliers and of personnel employed in the performance of Contractor’s obligations under this Agreement and shall be specifically responsible for sufficient and competent supervision and inspection to assure compliance in every respect with the requirements of this Agreement.
25.3    There shall be no contractual relationship between any subcontractor or supplier and Owner arising out of or by virtue of this Agreement.
25.4    No provision of this Agreement is intended to be, or is to be construed to be, for the benefit of any third party.
25.5    (a)    Contractor shall indemnify, hold harmless and defend Owner, its successors and assigns and Affiliates of Owner, from and against any demand, claim, action or cause of action, liability, damage and loss including, without limitation, interest, penalties and attorney’s fees and expenses, asserted against, relating to, imposed upon or incurred by Owner or its Affiliates by reason of or resulting from claims by any third party for (i) bodily injury (including death), (ii) property damage (including, but not limited to, loss of use thereof), or (iii) damage to the environment, in each case, caused by or resulting from Contractor’s breach of this Agreement, the willful misconduct of Contractor or any of its subcontractors, or the failure 
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of Contractor or any of its subcontractors to perform in a manner consistent with commercially reasonable surface lignite mining practices or mine reclamation practices.  For the purposes of clause  of the preceding sentence, “third party” shall include employees of Owner and Owner’s Affiliates.
(b)    Owner agrees, however, that Contractor shall not be obligated to so indemnify, hold harmless or defend Owner or its respective successors and assigns to the extent (1) any loss or liability with respect to which Contractor is not covered by insurance, unless the absence of insurance results from the failure of Contractor to provide the insurance that Owner required Contractor to provide in accordance with the terms of this Agreement, or (2) any loss or liability in excess of the amount which is covered by insurance, including the amount of any deductible, unless such deductible is higher or the insurance limits are lower than the deductible or limits that Owner required Contractor to maintain in accordance with this Agreement. Notwithstanding anything to the contrary in Section 25.5(a) or Section 25.5(b), to the extent Contractor breaches this Agreement, Contractor shall indemnify, hold harmless or defend Owner or its respective successors and assigns for losses and liabilities out-of-pocket in an aggregate amount not to exceed [*] in addition to any amounts covered by insurance pursuant to the preceding sentence.
(c)    Any disputes arising under this Section 25.5 shall not be subject to Section 17 of this Agreement.
25.6    (a)    Owner shall indemnify, hold harmless and defend Contractor, its successors and assigns and Affiliates of Contractor, from and against any demand, claim, action or cause of action, liability, damage and loss including, without limitation, interest, penalties and attorney’s fees and expenses, asserted against, relating to, imposed upon or incurred by Contractor or its Affiliates by reason of or resulting from claims by any third party for (i) bodily injury (including death), (ii) property damage (including, but not limited to, loss of use thereof), or (iii) damage to the environment, in each case, caused by or resulting from Owner’s breach of this Agreement, or the willful misconduct of Owner or its subcontractors.  As used in the preceding sentence, “third party” shall include employees of Contractor and Contractor’s Affiliates.
(b)    Any disputes arising under this Section 25.6 shall not be subject to Section 17 of this Agreement.
25.7    Notwithstanding anything in this Agreement, to the contrary, the Parties agree that the indemnity provisions set forth in Section 25.5 and 25.6 above are not intended to, nor shall they be construed to operate as, a limitation of any insurance coverages acquired by either Owner or by Contractor which cover and affect the operation of the Mine by Contractor.
Section 26.Limitations of Contractor’s Functions
During the term of this Agreement, Contractor shall have the right to cooperate with and permit its personnel to perform any work or services for Affiliates of Contractor, provided such activities do not interfere with Contractor’s ability to perform its obligations hereunder.  Subject to the immediately preceding sentence, until this Agreement expires or is terminated, and Contractor has fully completed all of its obligations under this Agreement, Contractor shall not perform any work or services, enter into any employment contracts or any agreements with third-
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parties, undertake any obligations or liabilities or expend any funds or engage in any activities except those which are directly related to the performance of Contractor’s obligations under this Agreement.
Section 27.Miscellaneous
27.1    Headings Not to Affect Construction; Gender
The headings to the respective sections and paragraphs of this Agreement are inserted for convenience of reference, and are neither to be taken to be any part of the provisions hereof nor to control or affect the meaning, construction or effect of the same.  As used herein, any gender shall include any other gender, the singular shall include the plural, and the plural shall include the singular, wherever appropriate.
27.2    Entire Agreement
This Agreement contains the entire agreement between the Parties hereto in respect of the subject matter hereof, and supersedes all prior understandings or agreements between such Parties with respect to the subject matter hereof.
27.3    Severability
The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof unless it substantially and adversely affects the value of this Agreement to one of the Parties; and in the absence of any such substantial and adverse effect, this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.
27.4    Expenses
Except as otherwise expressly provided in this Agreement, each Party shall pay its own expenses in connection with the authorization, preparation, execution, and delivery of this Agreement, including, without limitation, all fees and expenses of agents, representatives, counsel and accountants.
27.5    Attorneys’ Fees
Should Contractor or Owner employ an attorney or attorneys to institute a legal proceeding against the other Party for the purpose of enforcing any of the provisions hereof or protecting its interest in any manner arising under this Agreement, the non-prevailing Party in any such proceeding (the finality of which is not legally contested) shall pay to the prevailing Party all reasonable costs, damages and expenses, including reasonable attorney’s fees, expended or incurred by such prevailing Party in connection with such proceeding; provided that the total amount so paid to the prevailing Party in any such proceeding shall not exceed [*].  In the event Owner in any such proceeding is the prevailing Party and any of such costs, damages and expenses of Owner expended or incurred in connection with any such proceeding is required to be paid by Contractor to Owner, then in such event those costs of Owner, together with the costs, damages and expenses of Contractor, including attorney’s fees, expended or incurred by Contractor in connection with such proceeding shall be borne or paid solely by Contractor.
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27.6    Preparation
This Agreement has been negotiated at arms’ length, and each Party has had the opportunity to be represented by independent legal counsel in this transaction.  Accordingly, each Party waives any benefit under any rule of law or legal decision that would require interpretation of any ambiguities in this Agreement against the Party drafting it.
27.7    Exhibits
The Exhibits referred to in this Agreement are hereby incorporated in this Agreement by this reference and constitute a part of this Agreement.
27.8    Survival
All provisions of this Agreement that by their nature extend beyond the termination of this Agreement shall survive the termination of this Agreement and shall remain in effect until all obligations are satisfied.  Such provisions include, without limitation, Section 6 (Mine Financial Arrangements), Section 7 (Compensation), Section 10 (Records and Audit), Section 14 (Conduct of Operations), Section 16 (Effect of Waiver), Section 17 (Dispute Resolution), Section 19 (Assignment), Section 20 (Notices), and Section 25.5 and Section 25.6 (Indemnification).
27.9    Signature
This Agreement may be executed in any number of counterparts, any of which may be delivered via PDF, each of which when so executed and delivered shall be deemed an original, and such counterparts together shall constitute one instrument.
Section 28.[Reserved.]
Section 29.Uniform Rounding Practice
The Parties agree that the Uniform Rounding Practice shall be used in making adjustments of the Compensation under this Agreement.
[Signatures on following page; remainder of page intentionally blank.]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.
									
	CADDO CREEK RESOURCES COMPANY, L.L.C.		
			
	By:	/s/ Carroll L. Dewing	
	Name:	Carroll L. Dewing	
	Title:	President	
			
	Attest:		
			
	By:	/s/ Matthew J. Dilluvio	
	Name:	Matthew J. Dilluvio	
	Title:	Assistant Secretary	

									
	MARSHALL MINE, LLC		
			
	By:	/s/ Greg Marken	
	Name:	Greg Marken	
	Title:	President	
			
	Attest:		
			
	By:	/s/ Ted Sanders	
	Name:	Ted Sanders	
	Title:	General Counsel and Corporate Secretary	

    

									
	ADA CARBON SOLUTIONS (OPERATIONS), LLC
		
	(as guarantor to Owner and with respect to Section 21.4 only)
		
			
	By:	/s/ Greg Marken	
	Name:	Greg Marken	
	Title:	President	
			
	Attest:		
			
	By:	/s/ Ted Sanders	
	Name:	Ted Sanders	
	Title:	General Counsel and Corporate Secretary	

									
	THE NORTH AMERICAN COAL CORPORATION
		
	(with respect to Sections 14.3.2, 19, 20, 21 and 23.2 only)
		
			
	By:	/s/ J.C. Butler, Jr.	
	Name:	J.C. Butler, Jr.	
	Title:	President and Chief Executive Officer	
			
	Attest:		
			
	By:	/s/ John D. Neumann	
	Name:	John D. Neumann
	
	Title:	Vice President, General Counsel and Secretary	

Exhibit A
to
Second Amended and Restated Lignite Mining Agreement
dated September 30, 2020

Map Depicting the Eight Mile Area of Interest

A-1

Exhibit B
to
Second Amended and Restated Lignite Mining Agreement
dated September 30, 2020
Rate Sheet

[*]
B-1

Exhibit C
to
Second Amended and Restated Lignite Mining Agreement
dated September 30, 2020
Form of Task Order

TASK ORDER FORM       
TASK NUMBER:          DATE:        
Capitalized terms used herein and not otherwise defined shall have the meaning set forth in that certain Second Amended and Restated Lignite Mining Agreement, dated September 30, 2020 (as amended, the “Agreement”)
Contractor agrees to undertake the following work for Owner:
General Scope of Task Order Services and Estimated Completion Dates:
			
	
	
	
	
	
	

Special terms applicable to Task Order Services:
			
	
	
	

Cost for Task*    $    
*Cost for Task Order Services to be determined in accordance with the Rate Sheet set forth on Exhibit B of the Agreement
Prior Approved Changes    $     
Changes Approved Hereby    $     
    Total Cost    $    

C-1

Exhibit C
to
Second Amended and Restated Lignite Mining Agreement
dated September 30, 2020
Form of Task Order

Parties’ Authorized Signatures:
									
	CADDO CREEK RESOURCES COMPANY, L.L.C.		
			
	By:		
	Name:		
	Title:		
			

									
	MARSHALL MINE, LLC		
			
	By:		
	Name:		
	Title:		
			

C-2

Exhibit D
to
Second Amended and Restated Lignite Mining Agreement
dated September 30, 2020 
OWNER EQUIPMENT

[*]
D-1

Exhibit E
to
Second Amended and Restated Lignite Mining Agreement
dated September 30, 2020
Inventory Values

[*]
E-1

Exhibit F
to
Second Amended and Restated Lignite Mining Agreement
dated September 30, 2020 
Example of Progress Payment Calculation

[*]

F-1

Exhibit G
to
Second Amended and Restated Lignite Mining Agreement
dated September 30, 2020
Examples of Major Repairs

[*]

G-1

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