Document:

Document

Exhibit 10.13

	
		
	JONES DAY
North Point
901 Lakeside Avenue
Cleveland, Ohio 44114
Telephone: (216) 586-3939
Facsimile: (216) 579-0212
David G. Heiman (admitted pro hac vice)
Carl E. Black (admitted pro hac vice)
Thomas A. Wilson (admitted pro hac vice)
Attorneys for Debtors and Debtors in Possession
	HUNTON & WILLIAMS LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219
Telephone: (804) 788-8200
Facsimile: (804) 788-8218
Tyler P. Brown (VSB No. 28072)
J.R. Smith (VSB No. 41913)
Henry P. (Toby) Long, III (VSB No. 75134)
Justin F. Paget (VSB No. 77949)

IN THE UNITED STATES BANKRUPTCY COURT 
FOR THE EASTERN DISTRICT OF VIRGINIA 
RICHMOND DIVISION
	
		
	In re:
Alpha Natural Resources, Inc., et al.,
Debtors.
	Chapter 11
Case No. 15-33896 (KRH)
(Jointly Administered)

STIPULATION BY AND AMONG THE DEBTORS, THE UMWA FUNDS AND THE FIRST LIEN AGENT RESOLVING VARIOUS PLAN-RELATED ISSUES 
Alpha Natural Resources, Inc. (“ANR”) and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, the “Debtors”), The United Mine Workers of America 1974 Pension Plan and Trust (the “1974 Pension Plan”), the United Mine Workers of America 1993 Benefit Plan and Trust (the “1993 Benefit Plan”), the United Mine Workers of America 2012 Retiree Bonus Account Plan (the “Account Plan”), the United Mine Workers of America Cash Deferred Savings Plan of 1988 (the “CDSP”), the United Mine Workers of America Combined Benefit Fund (the “Combined Benefit Fund”), and the United Mine Workers of America 1992 Benefit Plan (the “1992 Plan” and, together with the Combined Benefit Fund, the “Coal Act Funds”) (the Coal Act Funds, together with the 1974 Pension Plan, the 1993 Benefit Plan, the CDSP, and the Account Plan, the “UMWA Funds”), Citicorp North America, Inc., as administrative and collateral agent (the “First Lien Agent”), under the Debtors’ prepetition first lien secured credit facility (the “First Lien Credit Facility”), and Contura Energy, Inc. (“NewCo”) (the Debtors, the 

First Lien Agent, NewCo and the UMWA Funds, the “Parties”), by and through each of their undersigned counsel, hereby enter into this stipulation (this “Stipulation”) regarding the resolution of certain objections and other disputes related to the Debtors’ Second Amended Joint Plan of Reorganization of Debtors and Debtors in Possession (Docket No. 2527) (as it may be modified, supplemented or amended, the “Plan”).1
Recitals 
1.    On August 3, 2015 (the “Petition Date”), the Debtors commenced their cases (the “Bankruptcy Cases”) by filing voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of Virginia (the “Bankruptcy Court”).
2.    By order of the Bankruptcy Court (Docket No. 129), the Bankruptcy Cases have been consolidated for procedural purposes only and are being jointly administered.
3.    The Debtors are authorized to continue to operate their businesses and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.
4.    On February 8, 2016, the Debtors filed the Debtors’ Omnibus Motion for Entry of: (I) an Order Establishing Bidding and Sale Procedures for the Potential Sale of Certain Mining Properties and Related Assets; (II) One or More Orders Approving the Sale of Such Assets; (III) an Order Approving Settlements Related to Unencumbered Assets and the Pre-Petition Lenders’ Diminution Claims; and (IV) an Order Approving Amendments to Certain Case Milestones in Connection with the DIP Credit Agreement (Docket No. 1464) (the “Sale Motion”) seeking to commence a process for the sale of certain of their assets (collectively, the “Core Assets”).  To 

		
	 
	Capitalized terms not otherwise defined herein have the meanings given to them in the Plan (as hereinafter defined).

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facilitate this process, the lenders under the First Lien Credit Facility (collectively, the “First Lien Lenders”) agreed to establish an entity (the “Stalking Horse Bidder”) to serve as a stalking horse bidder.  By an order entered on March 11, 2016 (Docket No. 1764), the Bankruptcy Court approved, among other things, (a) the procedures for the sale of the Core Assets subject to the Sale Motion and (b) the form of asset purchase agreement supporting the stalking horse bid made by the First Lien Lenders on behalf of the Stalking Horse Bidder (as such agreement may be modified, supplemented or amended, the “Stalking Horse APA”).  Thereafter, NewCo was incorporated under the laws of the state of Delaware.
5.    On March 7, 2016, the Debtors filed the Joint Plan of Reorganization of Debtors and Debtors in Possession (the “Initial Plan”) and a related disclosure statement (Docket No. 1703).  On May 25, 2016, the Debtors filed the Plan and related disclosure statement.
6.    References herein to the Debtors shall include the reorganized Debtors following the effective date of the Plan (the “Effective Date”).
7.    On February 4, 2016, the UMWA Funds filed their Notice of Appeal (Docket No. 1434), providing notice of their appeal (Case No. 3:16-cv-00075-HEH in the United States District Court for the Eastern District of Virginia) of the Order (I) Authorizing Payments Under 2015 Annual Incentive Bonus Plan and (II) Approving Key Employee Incentive Plan for Certain Insider Employees for 2016 (Docket No. 1387) (the “KEIP Appeal”).
8.    On February 19, 2016, the UMWA Funds filed their Objection of the UMWA Health and Retirement Funds to the Debtors’ Omnibus Motion for Entry of: (I) An Order Establishing Bidding and Sale Procedures for the Potential Sale of Certain Mining Properties and Related Assets; (II) One or More Orders Approving the Sale of Such Assets; (III) An Order Approving Settlements Related to Unencumbered Assets and the Pre-Petition Lenders’ Diminution Claims; and (IV) An 

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Order Approving Amendments to Certain Case Milestones in Connection with the DIP Credit Agreement (Docket No. 1588) (the “UMWA Funds Sale Objection”).
9.    On April 12, 2016, the Coal Act Funds filed their Motion in the Alternative of the Coal Act Funds for Adequate Protection (Docket No. 2045) (the “Adequate Protection Motion”).
10.    On April 15, 2016, the Coal Act Funds filed their Objection of the Coal Act Funds to the Debtors’ Omnibus Motion for Entry of: (I) An Order Establishing Bidding and Sale Procedures for the Potential Sale of Certain Mining Properties and Related Assets; (II) One or More Orders Approving the Sale of Such Assets; (III) An Order Approving Settlements Related to Unencumbered Assets and the Pre-Petition Lenders’ Diminution Claims; and (IV) An Order Approving Amendments to Certain Case Milestones in Connection with the DIP Credit Agreement (Docket No. 2115) (the “Coal Act Funds Sale Objection”).
11.    On June 2, 2016, the Coal Act Funds filed their Motion for Reconsideration of the Court’s Section 1114 Order (Docket No. 2595) (the “Reconsideration Motion”).
12.    On June 23, 2016, the 1974 Pension Plan filed its Response of the United Mine Workers of America 1974 Pension Plan and Trust to Debtors’ Objection to Claim (Docket No. 2762) (the “Claim Objection Response” and, together with the KEIP Appeal, the UMWA Funds Sale Objection, the Adequate Protection Motion, the Coal Act Funds Sale Objection and the Reconsideration Motion and any related objections, responses and replies, the “Disputed Matters”).

Decretals 
IT IS HEREBY STIPULATED AND AGREED THAT:
1.    The Disputed Matters are RESOLVED as set forth in the UMWA Funds Settlement Term Sheet, attached as Exhibit A hereto.

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2.    The Parties’ obligations under this Stipulation shall be null and void if:
		
	a.
	The Debtors withdraw or expressly determine not to pursue the Plan or any other chapter 11 Plan that is consistent with the UMWA Funds Settlement Term Sheet; or

		
	b.
	The Debtors amend or modify the Plan in a manner that is inconsistent with the UMWA Funds Settlement Term Sheet.

3.    It shall be a condition to the occurrence of the Effective Date under the Plan that the Board of Directors of NewCo shall have executed a resolution binding NewCo to the obligations undertaken by NewCo in the UMWA Funds Settlement Term Sheet.
4.    Except as otherwise expressly set forth herein, the Parties reserve and preserve their rights, remedies and defenses.
5.    This Stipulation may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute the same instrument.  If the Debtors fail to file a copy of this Stipulation with the Bankruptcy Court by 5:00 p.m. (prevailing Eastern time) on the business day following the execution of this Stipulation by all Parties hereto, the other Parties may file this Stipulation with the Bankruptcy Court.
6.    The Parties agree to and will cooperate fully with each other in the performance of this Stipulation.
7.    This Stipulation shall not be modified except by written instrument executed by the Parties.
8.    The Parties’ undersigned counsel have authority to enter into this Stipulation on the Parties’ behalf.

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	Dated: July 6, 2016
STIPULATED AND AGREED:
	 

	 /s/ Henry P. (Toby) Long, III   
	 /s/ Damon P. Meyer   

	David G. Heiman (admitted pro hac vice)
Carl E. Black (admitted pro hac vice)
Thomas A. Wilson (admitted pro hac vice)
JONES DAY
North Point
901 Lakeside Avenue
Cleveland, Ohio 44114
Telephone:  (216) 586-3939
Facsimile:  (216) 579-0212
Tyler P. Brown (VSB No. 28072)
J.R. Smith (VSB No. 41913)
Henry P. (Toby) Long, III (VSB No. 75134)
Justin F. Paget (VSB No. 77949)
HUNTON & WILLIAMS LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219
Telephone:  (804) 788-8200
Facsimile:  (804) 788-8218
ATTORNEYS FOR DEBTORS AND DEBTORS IN POSSESSION 
	Damian S. Schaible (admitted pro hac vice)
James I. McClammy (admitted pro hac vice)
Damon P. Meyer (admitted pro hac vice)
DAVIS POLK & WARDWELL LLP
450 Lexington Avenue
New York, New York 10017
Telephone:  (212) 450-4000
Facsimile:  (212) 701-5800
Dion W. Hayes (VSB No. 34304)
Sarah B. Boehm (VSB No. 45201
K. Elizabeth Sieg (VSB No. 77314) 
McGUIREWOODS LLP 
800 East Canal Street
Richmond, Virginia 23219
Telephone:  (804) 775-1000
Facsimile:  (804) 775-1061
 
ATTORNEYS FOR THE  
FIRST LIEN AGENT, INCLUDING IN ITS CAPACITY AS SOLE SHAREHOLDER OF NEWCO

	
		
	 
	/s/ Sabin Willett   

	 
	Sabin Willett (admitted pro hac vice)
Julia Frost-Davies (admitted pro hac vice) 
MORGAN, LEWIS & BOCKIUS LLP
One Federal Street
Boston, MA 02110-1726
Telephone: (617) 341-7700
Facsimile: (617) 341-7701
- and -
John C. Goodchild, III (admitted pro hac vice)
1701 Market Street
Philadelphia, PA 19103-2921
Telephone: (215) 963-5000
Facsimile: (215) 963-5001
Paul A. Green
John R. Mooney (VSB No. 22212)
MOONEY, GREEN, SAINDON, MURPHY 
  & WELCH, P.C.
1920 L Street, N.W., Suite 400
Washington, D.C. 20036
Telephone: (202) 783-0010
Facsimile: (202) 783-6088
Karen M. Crowley (VSB No. 35881)
Ann B. Brogan (VSB No. 25567)
CROWLEY, LIBERATORE, RYAN &  
  BROGAN, P.C.
150 Boush Street, Suite 300
Norfolk, VA 23510
Telephone: (757) 333-4500
Facsimile: (757) 333-4501
ATTORNEYS FOR THE UMWA FUNDS

EXHIBIT A

UMWA FUNDS SETTLEMENT TERM SHEET
This UMWA Funds Settlement Term Sheet (the “Term Sheet”) sets forth certain key elements of a proposed resolution of issues in the chapter 11 cases captioned as In re Alpha Natural Resources, Inc., et al., jointly administered Case No. 15-33896 (KRH) (the “Bankruptcy Cases”) pending in the United States Bankruptcy Court for the Eastern District of Virginia (the “Bankruptcy Court”) by and among the following parties (together, the “Parties”): (a) the debtors in possession in the Bankruptcy Cases (collectively, the “Debtors”); (b) The United Mine Workers of America 1974 Pension Plan and Trust (the “1974 Pension Plan”), the United Mine Workers of America 1993 Benefit Plan and Trust (the “1993 Benefit Plan”), the United Mine Workers of America 2012 Retiree Bonus Account Plan (the “Account Plan”), the United Mine Workers of America Cash Deferred Savings Plan of 1988 (the “CDSP”), the United Mine Workers of America Combined Benefit Fund (the “Combined Benefit Fund”), and the United Mine Workers of America 1992 Benefit Plan (the “1992 Plan” and, together with the Combined Benefit Fund, the “Coal Act Funds”) (the Coal Act Funds, together with the 1974 Pension Plan, the 1993 Benefit Plan, the CDSP, and the Account Plan, the “UMWA Funds”); and (c) the First Lien Lenders and First Lien Agent (collectively, the “First Lien Parties”); and (d) the DIP Lenders and the DIP Agents (collectively, the “DIP Parties”).3 This Term Sheet includes certain material terms of the proposed settlement.

		
	 
	Capitalized terms used by not defined herein shall have the meanings ascribed to them in the following, each as applicable: (a) the Final Order (I) Authorizing Debtors (A) to Obtain Post-Petition Financing Pursuant to 11 U.S.C. §§ 105, 361, 362, 363(b), 364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1) and 364(e) and (B) to Utilize Cash Collateral Pursuant to 11 U.S.C. § 363 and (II) Granting Adequate Protection to Pre-Petition Secured Parties Pursuant to 11 U.S.C. §§ 361, 362, 363, 364, and 507(b) (Docket No. 465) (as amended from time to time, the “Final DIP Order”); and (b) the Second Amended Joint Plan of Reorganization of Debtors and Debtors in Possession filed by the Debtors on May 25, 2016 (Docket No. 2527) (the “Plan”).

	
		
	Periodic Payments

	Allowed Administrative Expense and Subsequent Periodic Payments from NewCo
	▪
The UMWA Funds shall receive an initial distribution of $2.5 million in cash (to be allocated among the UMWA Funds by the UMWA Funds in their discretion) on the Effective Date, pursuant to the order confirming the Debtors’ plan of reorganization or other Bankruptcy Court order entered substantially contemporaneously therewith, as an allowed administrative expense.
▪
Subject to the occurrence of the Effective Date, NewCo shall, pursuant to the order confirming the Debtors’ plan of reorganization or other Bankruptcy Court order entered substantially contemporaneously therewith, make periodic cash payments (to be allocated among the UMWA Funds by the UMWA Funds in their discretion) on the dates and in the amounts listed below:
•    12/31/2017: $500,000
•    12/31/2018: $1 million
•    12/31/2019: $2 million
•    12/31/2020: $2 million
•    12/31/2021: $2 million

	Resolution of Certain Objections and other Filings

	Other Administrative Expense Claims
	▪
Except as set out in this term sheet, none of the UMWA Funds shall assert or be entitled to a claim in the Bankruptcy Cases with administrative or other priority status.
▪
The Response of the United Mine Workers of America 1974 Pension Plan and Trust to Debtors’ Objection to Claim [Docket No. 2762] is withdrawn.
▪
Nothing in this Term Sheet shall affect any general unsecured claim of any of the UMWA Funds.

	KEIP Appeal
	▪
None of the UMWA Funds shall continue to prosecute their appeal (Case No. 3:16-cv-00075-HEH in the United States District Court for the Eastern District of Virginia) of the Order (I) Authorizing Payments Under 2015 Annual Incentive Bonus Plan and (II) Approving Key Employee Incentive Plan for Certain Insider Employees for 2016 [Docket No. 1387] (the “KEIP Appeal”), or pursue or prosecute any related judicial actions or proceedings.  The Parties shall take all necessary actions to have the United States District Court for the Eastern District of Virginia hold the KEIP Appeal in abeyance and, upon the Effective Date, to be withdrawn with prejudice.

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	Sale Objections
	▪
The UMWA Funds shall withdraw their Objection of the UMWA Health and Retirement Funds to the Debtors’ Omnibus Motion for Entry of: (I) An Order Establishing Bidding and Sale Procedures for the Potential Sale of Certain Mining Properties and Related Assets; (II) One or More Orders Approving the Sale of Such Assets; (III) An Order Approving Settlements Related to Unencumbered Assets and the Pre-Petition Lenders’ Diminution Claims; and (IV) An Order Approving Amendments to Certain Case Milestones in Connection with the DIP Credit Agreement [Docket No. 1588].
▪
The Coal Act Funds shall withdraw their Objection of the Coal Act Funds to the Debtors’ Omnibus Motion for Entry of: (I) An Order Establishing Bidding and Sale Procedures for the Potential Sale of Certain Mining Properties and Related Assets; (II) One or More Orders Approving the Sale of Such Assets; (III) An Order Approving Settlements Related to Unencumbered Assets and the Pre-Petition Lenders’ Diminution Claims; and (IV) An Order Approving Amendments to Certain Case Milestones in Connection with the DIP Credit Agreement [Docket No. 2115].
▪
The Coal Act Funds shall withdraw their Motion in the Alternative of the Coal Act Funds for Adequate Protection [Docket No. 2045].
▪
None of the UMWA Funds shall pursue any objection to or raise any argument against the sale of the Reserve Price Assets free and clear of claims and encumbrances as contemplated in the Plan or prosecute any claim for or raise any argument that they are entitled to adequate protection with respect to their claims pursuant to section 363(e) of the Bankruptcy Code.
▪
Any other pending objections, responses or reservations of rights of any of the UMWA Funds with respect to relief sought by the Debtors that may be pending, and any supporting memoranda of law, shall be withdrawn.

	Motion for Reconsideration
	▪
The Coal Act Funds shall withdraw their Motion for Reconsideration of the Court’s Section 1114 Order [Docket No. 2595], and none of the UMWA Funds shall otherwise pursue the relief sought thereby.

	Purported Successor Liability Claims
	▪
None of the UMWA Funds shall assert or pursue any claims, or support any claims of any other party, alleging that one or more of the Coal Act Funds and/or any other party has one or more claims against any of the First Lien Parties, NewCo, or any affiliate of the foregoing related to any of the Debtors’ existing liabilities under a statutory or common law theory of successor liability or any other theory of liability.

	Nature of withdrawal of pleadings
	▪
With respect to all actions, objections, responses or reservations of rights, the withdrawal of which is contemplated in this Term Sheet, the UMWA Funds shall cause such objections, responses or reservations of rights to be held in abeyance pending the Effective Date, and shall use best efforts to request the abeyance of such actions pending the Effective Date, and shall cause them to be withdrawn with prejudice by no later than five days after the Effective Date.

	Plan Support

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	Plan Support
	▪
The UMWA Funds shall support the Plan (as it may be modified in accordance with its terms, provided that any such amendment shall not be inconsistent with this Term Sheet), shall act promptly and in good faith to obtain leave of the Court to change their previous votes to votes in favor of confirmation of the Plan and shall not object to the confirmation of the Plan or support other parties in objecting to the Plan.  The UMWA Funds agree to be bound by the terms of the Plan to the extent it is not inconsistent with this Term Sheet.
▪
The Debtors, the Lenders, and the UMWA Funds shall use reasonable best efforts to obtain orders necessary to implement the terms hereof.

	Other Matters

	Cooperation with Requests
	▪
Without limiting any of the agreements set forth herein or the discharge and releases under the Plan and the order confirming the Plan, upon request of the Coal Act Funds, NewCo will reasonably assist with providing information to the Coal Act Funds with respect to related persons under the Coal Act (to the extent permitted under relevant confidentiality agreements or other legal impediments to disclosure), provided that nothing in this Term Sheet shall require NewCo to incur any expenses related to providing such information.

	Temporary Continuation of Certain Obligations
	▪
The Debtors will continue to:
•    Maintain their individual employer plans for Coal Act beneficiaries through July 31, 2016 and will cooperate with the UMWA Funds in arranging for an orderly transition of such beneficiaries to the 1992 Plan.
•    Make contractual contributions to the 1974 Pension Plan, the 1993 Benefit Plan, the CDSP and the Account Plan until the date the Debtors implement their rejection of their collective bargaining agreements.

-4-Exhibit

Exhibit 10.14

AGREEMENT TO FUND THE VEBA
This Agreement (the “Agreement”) to fund a voluntary employees’ beneficiary association to provide health benefits for certain UMWA-represented retired miners is entered into on July 5th, 2016, by and among Contura Energy, Inc. (“Employer”), on behalf of itself and as authorized agent for each of its subsidiaries that is signatory to a 2016 Coal Wage Agreement (as defined below) (hereinafter, the “Obligor Companies”) and the United Mine Workers of America (the “UMWA,” and collectively with Employer, the “Parties”).
WHEREAS, the Obligor Companies have been established by certain First Lien Lenders of Alpha Natural Resources and its affiliated companies (“First Lien Lenders”) and have purchased or seek to purchase certain coal mines that have been operated by Alpha Natural Resources and certain of its unionized affiliates (collectively “Alpha”) that provide healthcare benefit programs (the “Retiree Benefits”) to non-Coal Industry Retiree Health Benefit Act of 1992, 26 USC § 9701 et seq., as amended (“Coal Act”) UMWA-represented retirees and their eligible dependents, including surviving spouses (collectively, the “UMWA Retirees”) pursuant to the welfare benefit plan maintained pursuant to the National Bituminous Coal Wage Agreement of 2011 (the “NBCWA Plan”);
WHEREAS, on August 3, 2015, Alpha filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”), which are pending as joint administration under Case No. 15-33896 (the “Chapter 11 Cases”) before the Honorable Judge Kevin R. Huennekens in the United States Bankruptcy Court for the Eastern District of Virginia (the “Bankruptcy Court”);
WHEREAS, on March 28, 2016, Alpha filed the Motion of Debtors and Debtors in Possession to (I) Reject Certain Collective Bargaining Agreements and (II) Modify Certain Retiree Benefit Obligations, Pursuant to Sections 1113(c) and 1114(g) of the Bankruptcy Code [ECF No. 1873] (the “1113/1114 Motion”), which, inter alia, sought approval to terminate the Retiree Benefits and was subsequently granted on May 9, 2016 [ECF No. 2357];
WHEREAS, representatives of Alpha, the Obligor Companies and the UMWA have met and engaged in negotiations pursuant to section 1114 of the Bankruptcy Code both prior to and following the filing of the 1113/1114 Motion in an attempt to reach a mutually acceptable resolution regarding the Retiree Benefits, including by exchanging settlement proposals and counter-proposals;
WHEREAS, after extensive negotiations between the Parties, the Parties have reached agreement regarding the funding of the VEBA (as defined below) and related terms as set forth herein and in the new labor contracts by and between the UMWA and the applicable Obligor Debtors (the “2016 Wage Agreement(s)”) and the related Memorandum of Understanding (the “MOU”);
WHEREAS, the Parties have agreed that there shall be not be any gaps in benefits and coverage provided to the UMWA Retirees; and

WHEREAS, the UMWA has established a voluntary employees’ beneficiary association trust within the meaning of section 501(c)(9) of the Tax Code (as defined below) (the “VEBA”) in order to fund and administer certain Retiree Benefits.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING AND THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTIES AGREE AS FOLLOWS:
1.    Court Approvals
All provisions of this Agreement are subject to: (i) the entry of an order by the Bankruptcy Court (the “Approval Order”) approving the sale of the Core Assets to Employer, this Agreement, the Memorandum of Understanding on Transition to New Labor Agreements, and the Agreement to Mine the Foundation Reserves Under the Terms of the 2016 Agreement, and authorizing the Obligor Companies to enter into and perform their obligations hereunder and thereunder, (ii) such Approval Order becoming final and not subject to further appeal or reconsideration (except to the extent the final order requirement is waived in accordance with the terms of Alpha’s confirmed Third Amended Joint Plan of Reorganization (as such Plan may be amended or modified, the “Plan”)) (the terms set forth in (i) and (ii) being, collectively, the “Court Approvals”), and (iii) the transactions approved in the Approval Order having closed according to the terms of the governing agreements.  The “Effective Date” shall be the Plan Effective Date (meaning the Effective Date as defined in the Plan), but in the event the Effective Date shall not have occurred by August 1, 2016, this Agreement shall be void ab initio, having no effect with the Parties reserving all of their rights and defenses.
2.    VEBA Funding Amount 
a.    Subject to the occurrence of the Effective Date, the Obligor Companies shall contribute the following to the VEBA (collectively, the “VEBA Funding Amount”):
i.    On or before the Effective Date, the Obligor Companies shall transfer or cause to be transferred $50,000 to the VEBA using wire instructions provided by the UMWA.
ii.    On or before the Effective Date, the Obligor Companies shall transfer or cause to be transferred $9,950,000 to the VEBA using wire instructions provided by the UMWA.
iii.    Beginning on November 1, 2016 and again on the first of each month through April 1, 2017, the Obligor Companies shall transmit $3 million to the VEBA (a total of $18 million in six (6) monthly payments of $3 million each) using wire instructions provided by the UMWA.  Notwithstanding the foregoing, in order to prevent any gap in benefits, in the event that the Trustees of the VEBA certify in writing to the Obligor Companies that the VEBA’s assets available to provide benefits to the UMWA Retirees are inadequate for the VEBA’s immediate cash requirements, the amounts payable pursuant to this paragraph shall become 

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payable up to 60 days prior to the dates they would otherwise be due, as determined by the Trustees in their absolute discretion.
iv.    On or before November 15, 2016, the Obligor Companies shall transmit $300,000 to the VEBA using wire instructions provided by the UMWA.
v.    On or before February 15, 2017, the Obligor Companies shall transmit $300,000 to the VEBA using wire instructions provided by the UMWA.
vi.    If federal legislation providing retirement health benefits to the UMWA Retirees has not been enacted, or if moneys under such legislation have not become available for such benefits, before August 1, 2017, on August 1, 2017, the Obligor Companies shall transfer or cause to be transferred to the VEBA a 7-year 5.0% unsecured note with face value of $8.75 million.  The maturity of such note shall be seven (7) years from the date of issuance and the note will be subordinate to a cumulative total of $300.0 million of takeback debt in favor of one or more First Lien Lenders and the new ABL facility obtained by the Obligor Companies on or prior to the Effective Date, but superior to all other existing and future unsecured obligations.  The Trustees of the VEBA, in their sole discretion, may freely sell, exchange, assign or otherwise transfer such note.
vii.    If federal legislation providing retirement health benefits to the UMWA Retirees has not been enacted, or if moneys under such legislation have not become available for such benefits, before December 1, 2017, on December 1, 2017, the Obligor Companies shall transfer or cause to be transferred to the VEBA an additional 7-year 5.O% unsecured note with face value of $8.75 million.  The maturity of such note shall be seven (7) years from the date of issuance and the note will be subordinate to a cumulative total of $300.0 million of takeback debt in favor of one or more First Lien Lenders and the new ABL facility obtained by the Obligor Companies on or prior to the Effective Date and will be superior to all other existing and future unsecured obligations.  The Trustees of the VEBA, in their sole discretion, may freely sell, exchange, assign or otherwise transfer such note.
3.    NBCWA Plan.  Alpha shall continue to maintain the NBCWA Plan to cover all claims incurred by UMWA Retirees (including any subsequent runout) through and including the later of July 31, 2016 or the Effective Date.
4.    Legislative Support.  The Parties each agree that they will mutually and actively support the enactment of legislation introduced as S. 1714 (114th Congress), the Miners Protection Act. The parties each agree that they will mutually and actively support modified versions of this legislation or substitute legislation designed to address the problems of retiree health and pension benefits in the coal industry, including those resulting from the Alpha bankruptcy.  Active support shall include but not be limited to lobbying, public statements of strong support, and cooperative efforts with the other entities to aggressively further the likelihood of passage of such legislation.

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5.    Termination.  The UMWA may terminate this Agreement if (i) the full amounts to be transferred pursuant to Section 2(a) are not received by the VEBA on or before the dates specified therein, or (ii) an order of the Bankruptcy Court modifies or purports to modify in any way the preceding Section 2.
6.    Coal Act Coal Wage Agreement.  The parties agree that this Agreement is not intended to be and shall not be construed to be a “Coal wage agreement” as defined in the Coal Act and that this Agreement does not require Employer to ensure and that Employer is not ensuring or otherwise providing any entitlement to or benefits under the Coal Act.
7.    No Admissions.  This Agreement was entered into in the context of a settlement.  Nothing contained herein or in any draft hereof shall constitute an admission of liability or lack thereof by the Parties, or shall be admissible as evidence in any court of law or other legal proceeding for any purpose, other than for the purpose of enforcing the Agreement.  Each Party acknowledges and agrees that nothing in this Agreement constitutes a concession of any factual or legal issue raised in or relating to the 1113/1114 Motion, the KEIP Appeal or any claim filed in these Chapter 11 Cases.
8.    Governing Law.  This Agreement shall be governed by, and construed in accordance with, applicable federal law.
9.    Reservation of Rights.  If the Approval Order is reversed, revoked or vacated, all Parties’ rights under the law are reserved as if this Agreement were never entered into.
10.    No Third-Party Beneficiaries.  Except as expressly provided for herein, nothing in this Agreement is intended to confer upon any person any right as a third-party beneficiary of the terms of this Agreement.  No provision of this Agreement will (i) create or be deemed to create any third-party beneficiary or other rights in any UMWA Retiree or any other entity other than the Parties and their respective successors, permitted assigns and the officers, directors, employees, agents and affiliated persons of each of the foregoing or (ii) create any new health or welfare plans for the benefit of any UMWA Retiree or their respective beneficiaries, heirs, successors, assigns or the officers, directors, employees, agents and affiliated persons of each of the foregoing.  Notwithstanding the forgoing, for purposes of Sections 502 and 515 of the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1132, 1145, and Section 301 of the Labor Management Relations Act of 1947, 29 U.S.C. § 185, the Trustees of the VEBA shall have the authority to enforce this agreement in the same manner as a collectively bargained obligation owed to a multiemployer plan with all the appropriate rights and remedies, as well as under any other applicable provision of law.
11.    Manner of Execution.  The Parties may execute this Agreement in counterparts, and all executed counterparts shall collectively be deemed to be one and the same instrument, and the Parties may exchange signature pages via mail, courier, facsimile or email.
12.    Interpretation.  This Agreement is the product of negotiations between the Parties, and in the enforcement or interpretation hereof, is to be interpreted in a neutral 

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manner, and any presumption with regard to interpretation for or against any Party by reason of that Party having drafted or caused to be drafted this Agreement, or any portion hereof, shall not be effective in regard to the interpretation hereof.
13.    Tax Consequences.  The Parties do not make any representations or warranties regarding any tax benefits, tax obligations and/or other consequences arising from this Agreement or any payments made pursuant hereto, and the recipients of any payment pursuant to this Agreement shall be solely responsible for any taxes in respect of any payments made pursuant to this Agreement.
14.    Specific Performance.  Damages at law may be an inadequate remedy, or not available, for the breach by the Obligor Companies, Alpha, or the UMWA or the VEBA, of any of the covenants, promises and agreements contained in this Agreement, and, accordingly, each of them, as applicable, shall be entitled to specific performance with respect to any such breach.  In particular, time is of the utmost essence with regard to the payments required herein, and the Parties agree that failure to make any payment on a timely basis will result in irreparable harm and will be subject to injunctive relief.  Any action for legal or equitable relief under this Agreement may be brought in the United States District Court for the Western District of Pennsylvania.  The rights of the Obligor Companies, Alpha, the UMWA, and the VEBA set forth in this Section 14 shall be in addition to any other rights which a party may have at law or in equity pursuant to this Agreement.
15.    Assignment.  No Party to this Agreement may assign any of its rights hereunder without the prior written consent of the other Parties, except as set forth in this Agreement or as otherwise required by law, and any purported assignment in violation of this sentence shall be void.
16.    Successors.  The Parties acknowledge that each and every covenant, warranty, release and agreement contained herein shall inure to the benefit of, and be binding upon, the Parties’ permitted assigns and successors in interest and the officers, directors, employees, agents and affiliated persons of each of the foregoing.
17.    Modification.  This Agreement may not be altered, amended, abandoned, modified, waived, superseded, canceled or discharged, except by a further writing subscribed to by the Parties.

5

So Agreed:
	
	
	/s/ Grant Crandall

	Grant Crandall, General Counsel

	United Mine Workers of America

	 

	 

	CONTURA ENERGY, INC.

	 

	/s/ John DeGroote

	John DeGroote

	President of Contura Energy, Inc.

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