Document:

Exhibit 10.2

Exhibit 10.2

GUARANTY AGREEMENT

Dated as of December 31, 2010

among

RUSH ENTERPRISES, INC.

and

Each Other Guarantor

From Time to Time Party Hereto

and

GENERAL ELECTRIC CAPITAL CORPORATION,

as Administrative Agent and Collateral Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I GUARANTY
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Guaranty
	 	 	1	 
	Section 1.2 Limitation of Guaranty
	 	 	1	 
	Section 1.3 Contribution
	 	 	2	 
	Section 1.4 Authorization; Other Agreements
	 	 	2	 
	Section 1.5 Guaranty Absolute and Unconditional
	 	 	3	 
	Section 1.6 Waivers
	 	 	3	 
	Section 1.7 Reliance
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II MISCELLANEOUS
	 	 	4	 
	 
	 	 	 	 
	Section 2.1 Representations and Warranties; Covenants
	 	 	4	 
	Section 2.2 Reinstatement
	 	 	4	 
	Section 2.3 Release of Guaranty
	 	 	4	 
	Section 2.4 Independent Obligations
	 	 	5	 
	Section 2.5 No Waiver by Course of Conduct
	 	 	5	 
	Section 2.6 Amendments in Writing
	 	 	5	 
	Section 2.7 Additional Guarantors
	 	 	5	 
	Section 2.8 Notices
	 	 	5	 
	Section 2.9 Successors and Assigns
	 	 	5	 
	Section 2.10 Counterparts
	 	 	5	 
	Section 2.11 Interpretation
	 	 	6	 
	Section 2.12 Severability
	 	 	6	 
	Section 2.13 Governing Law
	 	 	6	 
	Section 2.14 Waiver of Jury Trial
	 	 	6	 

ANNEX

	 	 	 
	Annex 1
	 	Form of Joinder Agreement

 

i

 

GUARANTY AGREEMENT (this “Agreement”), dated as of December 31, 2010, by RUSH
ENTERPRISES, INC. (“Holdings”) and each of the other entities listed on the signature pages
hereof or that becomes a party hereto pursuant to Section 2.7 (together with Holdings, the
“Guarantors”), in favor of General Electric Capital Corporation (“GE Capital”), as
administrative agent and collateral agent (in such capacity, together with its successors and
permitted assigns, the “Administrative Agent”) for the Lenders (as defined in the Credit
Agreement referred to below).

W I T N E S S E T H:

WHEREAS, pursuant to the Credit Agreement dated as of December 31, 2010 (as the same may be
modified from time to time, the “Credit Agreement”; capitalized terms used herein without
definition are used as defined in the Credit Agreement) among the Borrowers party thereto,
Holdings, the Lenders from time to time party thereto and GE Capital, as administrative agent and
collateral agent for the Lenders, the Lenders have severally agreed to make extensions of credit to
the Borrowers upon the terms and subject to the conditions set forth therein;

WHEREAS, each Guarantor has agreed to guaranty the Obligations (as defined in the Credit
Agreement) of the Borrowers;

WHEREAS, each Guarantor will derive substantial direct and indirect benefits from the making
of the extensions of credit under the Credit Agreement; and

WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective
extensions of credit to the Borrowers under the Credit Agreement that the Guarantors shall have
executed and delivered this Agreement to the Administrative Agent;

NOW, THEREFORE, in consideration of the premises and to induce the Lenders and the
Administrative Agent to enter into the Credit Agreement and to induce the Lenders to make their
respective extensions of credit to the Borrower thereunder, each Guarantor hereby agrees with the
Administrative Agent as follows:

ARTICLE I

GUARANTY

Section 1.1 Guaranty. To induce the Lenders to make the Loans, each Guarantor
hereby, jointly and severally, absolutely, unconditionally and irrevocably guarantees, as primary
obligor and not merely as surety, the full and punctual payment when due, whether at stated
maturity or earlier, by reason of acceleration, mandatory prepayment or otherwise in accordance
with any Loan Document, of all the Obligations of the Borrowers whether existing on the date hereof
or hereinafter incurred or created (the “Guaranteed Obligations”). This guaranty by each
Guarantor hereunder constitutes a guaranty of payment and not of collection.

Section 1.2 Limitation of Guaranty. Any term or provision of this Agreement
or any other Loan Document to the contrary notwithstanding, the maximum aggregate amount for which
any Guarantor that is a Subsidiary of Holdings (any “Subsidiary Guarantor”) shall be liable
hereunder shall not exceed the maximum amount for which such Subsidiary Guarantor can be liable
without rendering this Agreement or any other Loan Document, as it relates to such
Subsidiary Guarantor, subject to avoidance under applicable Requirements of Law relating to
fraudulent conveyance or fraudulent transfer (including the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act and Section 548 of title 11, United States Code or any applicable
provisions of comparable Requirements of Law) (collectively, “Fraudulent Transfer Laws”).
Any analysis of the provisions of this Agreement for purposes of Fraudulent Transfer Laws shall
take into account the right of contribution established in Section 1.3 and, for purposes of
such analysis, give effect to any discharge of intercompany debt as a result of any payment made
under this Agreement.

 

 

 

Section 1.3 Contribution. To the extent that any Subsidiary Guarantor shall
be required hereunder to pay any portion of any Guaranteed Obligation exceeding the greater of (a)
the amount of the economic benefit actually received by such Subsidiary Guarantor from the Loans
and other Obligations and (b) the amount such Subsidiary Guarantor would otherwise have paid if
such Subsidiary Guarantor had paid the aggregate amount of the Guaranteed Obligations (excluding
the amount thereof repaid by the Borrowers and Holdings) in the same proportion as such Subsidiary
Guarantor’s net worth on the date enforcement is sought hereunder bears to the aggregate net worth
of all the Subsidiary Guarantors on such date, then such Guarantor shall be reimbursed by such
other Subsidiary Guarantors for the amount of such excess, pro rata, based on the respective net
worth of such other Subsidiary Guarantors on such date.

Section 1.4 Authorization; Other Agreements. The Secured Parties are hereby
authorized, without notice to or demand upon any Guarantor and without discharging or otherwise
affecting the obligations of any Guarantor hereunder and without incurring any liability hereunder,
from time to time, to do each of the following:

(a) (i) modify, amend, supplement or otherwise change, (ii) accelerate or otherwise change the
time of payment or (iii) waive or otherwise consent to noncompliance with, any Guaranteed
Obligation or any Loan Document;

(b) apply to the Guaranteed Obligations any sums by whomever paid or however realized to any
Guaranteed Obligation in such order as provided in the Loan Documents;

(c) refund at any time any payment received by any Secured Party in respect of any Guaranteed
Obligation;

(d) (i) Sell, exchange, enforce, waive, substitute, liquidate, terminate, release, abandon,
fail to perfect, subordinate, accept, substitute, surrender, exchange, affect, impair or otherwise
alter or release any Collateral for any Guaranteed Obligation or any other guaranty therefor in any
manner, (ii) receive, take and hold additional Collateral to secure any Guaranteed Obligation,
(iii) add, release or substitute any one or more other Guarantors, makers or endorsers of any
Guaranteed Obligation or any part thereof and (iv) otherwise deal in any manner with the Borrower
and any other Guarantor, maker or endorser of any Guaranteed Obligation or any part thereof; and

(e) settle, release, compromise, collect or otherwise liquidate the Guaranteed Obligations.

 

2

 

Section 1.5 Guaranty Absolute and Unconditional. Each Guarantor hereby waives
and agrees not to assert any defense, whether arising in connection with or in respect of any of
the following or otherwise, and hereby agrees that its obligations under this Agreement are
irrevocable, absolute and unconditional and shall not be discharged as a result of or
otherwise affected by any of the following (which may not be pleaded and evidence of which may not
be introduced in any proceeding with respect to this Agreement, in each case except as otherwise
agreed in writing by the Administrative Agent):

(a) the invalidity or unenforceability of any obligation of any Borrower or any other
Guarantor under any Loan Document or any other agreement or instrument relating thereto (including
any amendment, consent or waiver thereto), or any security for, or other guaranty of the Guaranteed
Obligations or any part of them, or the lack of perfection or continuing perfection or failure of
priority of any security for the Guaranteed Obligations or any part of them;

(b) the absence of (i) any attempt to collect any Guaranteed Obligation or any part thereof
from the Borrower or any other Guarantor or other action to enforce any of the same or (ii) any
action to enforce any Loan Document or any Lien thereunder;

(c) the failure by any Person to take any steps to perfect and maintain any Lien on, or to
preserve any rights with respect to, any Collateral;

(d) any workout, insolvency, bankruptcy proceeding, reorganization, arrangement, liquidation
or dissolution by or against the Borrower, any other Guarantor or any of the Borrower’s other
Subsidiaries or any procedure, agreement, order, stipulation, election, action or omission
thereunder, including any discharge or disallowance of, or bar or stay against collecting, any
Guaranteed Obligation (or interest thereon) in or as a result of any such proceeding;

(e) any foreclosure, whether or not through judicial sale, and any other Sale of Collateral or
any election following the occurrence of an Event of Default by any Secured Party to proceed
separately against any Collateral in accordance with such Secured Party’s rights under any
applicable Requirement of Law; or

(f) any other defense, setoff, counterclaim or any other circumstance that might otherwise
constitute a legal or equitable discharge of any Borrower, any other Guarantor or any of the
Borrower’s other Subsidiaries, in each case other than the payment in full of the Guaranteed
Obligations.

Section 1.6 Waivers. Each Guarantor hereby unconditionally and irrevocably
waives and agrees not to assert any claim, defense, setoff or counterclaim based on diligence,
promptness, presentment, requirements for any demand or notice hereunder including any of the
following: (a) any demand for payment or performance and protest and notice of protest, (b) any
notice of acceptance, (c) any presentment, demand, protest or further notice or other requirements
of any kind with respect to any Guaranteed Obligation (including any accrued but unpaid interest
thereon) becoming immediately due and payable and (d) any other notice in respect of the Guaranteed
Obligations or any part of them, and any defense arising by reason of any disability or other
defense of the Borrower or any other Guarantor. Each Guarantor further unconditionally and
irrevocably agrees not to (x) enforce or otherwise exercise any right of subrogation or any right
of reimbursement or contribution or similar right against any Borrower or any other Guarantor by
reason of any Loan Document or any payment made thereunder or (y) assert any claim, defense, setoff
or counterclaim it may have against any other Loan Party or set off any of its obligations to such
other Loan Party against obligations of such Loan Party to such Guarantor.
No obligation of any Guarantor hereunder shall be discharged other than by complete
performance.

 

3

 

Section 1.7 Reliance. Each Guarantor hereby assumes responsibility for
keeping itself informed of the financial condition of the Borrowers, each other Guarantor and any
other guarantor, maker or endorser of any Guaranteed Obligation or any part thereof, and of all
other circumstances bearing upon the risk of nonpayment of any Guaranteed Obligation or any part
thereof, that diligent inquiry would reveal, and each Guarantor hereby agrees that no Secured Party
shall have any duty to advise any Guarantor of information known to it regarding such condition or
any such circumstances. In the event any Secured Party, in its sole discretion, undertakes at any
time or from time to time to provide any such information to any Guarantor, such Secured Party
shall be under no obligation to (a) undertake any investigation not a part of its regular business
routine, (b) disclose any information that such Secured Party, pursuant to accepted or reasonable
commercial finance or banking practices, wishes to maintain confidential or (c) make any future
disclosures of such information or any other information to any Guarantor.

ARTICLE II

MISCELLANEOUS

Section 2.1 Representations and Warranties; Covenants. To induce the Lenders
and the Administrative Agent to enter into the Loan Documents, each Guarantor hereby agrees to each
of the following with the Administrative Agent, the Lenders and the other Secured Parties, as long
as any Obligation or Commitment remains outstanding and, in each case, unless the Required Lenders
otherwise consent in writing:

(a) the representations and warranties as to such Guarantor made by the Borrowers in
Article 4 (Representations and Warranties) of the Credit Agreement are true and
correct; and

(b) such Guarantor shall comply with all covenants and other provisions applicable to it under
the Credit Agreement, including Sections 2.17 (Taxes), 11.3 (Costs and
Expenses) and 11.4 (Indemnities) of the Credit Agreement, and agrees to the
same submission to jurisdiction as that agreed to by the Borrowers in the Credit Agreement.

Section 2.2 Reinstatement. Each Guarantor agrees that, if any payment made by
any Loan Party or other Person and applied to the Secured Obligations is at any time annulled,
avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise
required to be refunded or repaid, then, if, prior to any of the foregoing, any provision of this
Agreement (including the guaranty of such Guarantor hereunder) shall have been terminated,
cancelled or surrendered, such provision, and any Lien or other Collateral securing such
Guarantor’s liability hereunder that may have been released or terminated by virtue of such
termination, cancellation or surrender, shall be reinstated in full force and effect and such prior
termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise
affect the obligations of any such Guarantor in respect of any Lien or other Collateral securing
such obligation or the amount of such payment.

Section 2.3 Release of Guaranty. At the time provided in Section
10.10(a) of the Credit Agreement and at the request of the Borrower, a Guarantor shall be
released from its obligations hereunder in the event that all the Securities of such Guarantor
shall be Sold to any
Person that is not an Affiliate of Holdings, the Borrower and the Subsidiaries of the Borrower
in a transaction permitted by the Loan Documents.

 

4

 

Section 2.4 Independent Obligations. The obligations of each Guarantor
hereunder are independent of and separate from the Guaranteed Obligations. If any Guaranteed
Obligation is not paid when due, or upon any Event of Default, the Administrative Agent may, at its
sole election, proceed directly and at once, without notice, against any Guarantor to collect and
recover the full amount or any portion of any Secured Obligation or Guaranteed Obligation then due,
without first proceeding against any other Guarantor or any other Loan Party and without first
joining any other Guarantor or any other Loan Party in any proceeding.

Section 2.5 No Waiver by Course of Conduct. No Secured Party shall by any act
(except by a written instrument pursuant to Section 2.6), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any
Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of
any Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No
single or partial exercise of any right, power or privilege hereunder shall preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. A waiver by any
Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy that such Secured Party would otherwise have on any future occasion.

Section 2.6 Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in accordance with
Section 11.1 of the Credit Agreement.

Section 2.7 Additional Guarantors. If, at the option of the Borrower
Representative, the Borrower Representative shall cause any Subsidiary that is not a Guarantor to
become a Guarantor hereunder, such Subsidiary shall execute and deliver to the Administrative Agent
a Joinder Agreement substantially in the form of Annex 1 and shall thereafter for all
purposes be a party hereto and have the same rights, benefits and obligations as a Guarantor party
hereto on the Closing Date.

Section 2.8 Notices. All notices, requests and demands to or upon the
Administrative Agent or any Guarantor hereunder shall be effected in the manner provided for in
Section 11.11 of the Credit Agreement; provided, however, that any such
notice, request or demand to or upon any Guarantor shall be addressed to the Borrower
Representative’s notice address set forth in such Section 11.11.

Section 2.9 Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of each Guarantor and shall inure to the benefit of each Secured Party and
their successors and assigns; provided, however, that no Guarantor may assign,
transfer or delegate any of its rights or obligations under this Agreement without the prior
written consent of the Administrative Agent.

Section 2.10 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Signature pages may be detached from multiple separate counterparts and attached to a
single counterpart. Delivery of an executed signature page of this Agreement by
facsimile transmission or by Electronic Transmission shall be as effective as delivery of a
manually executed counterpart hereof.

 

5

 

Section 2.11 Interpretation. Section 1.4 (Interpretation) of
the Credit Agreement is applicable to this Agreement as and to the extent set forth therein. The
meanings given to terms defined herein shall be equally applicable to both the singular and plural
forms of such terms. The terms “herein,” “hereof” and similar terms refer to this
Agreement as a whole and not to any particular Article, Section or clause in this Agreement.
References herein to an Annex, Article, Section or clause refer to the appropriate Annex to, or
Article, Section or clause of this Agreement.

Section 2.12 Severability. Any provision of this Agreement being held
illegal, invalid or unenforceable in any jurisdiction shall not affect any part of such provision
not held illegal, invalid or unenforceable, any other provision of this Agreement or any part of
such provision in any other jurisdiction.

Section 2.13 Governing Law. This Agreement and the rights and obligations of
the parties hereto shall be governed by, and construed and interpreted in accordance with, the law
of the State of New York.

Section 2.14 Waiver of Jury Trial. Each party hereto hereby irrevocably
waives trial by jury in any suit, action or proceeding with respect to, or directly or indirectly
arising out of, under or in connection with, any loan document or the transactions contemplated
therein or related thereto (whether founded in contract, tort or any other theory). Each party
hereto (A) certifies that no other party and no Related Person of any other party has represented,
expressly or otherwise, that such other party would not, in the event of litigation, seek to
enforce the foregoing waiver and (B) acknowledges that it and the other parties hereto
have been induced to enter into this agreement by the mutual waivers and certifications in this
Section 2.14.

[SIGNATURE PAGES FOLLOW]

 

6

 

IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	 	RUSH ENTERPRISES, INC.

as Guarantor

 	 
	 	By:  	/s/ W.M. “Rusty” Rush
 	 
	 	 	Name:  	W.M. “Rusty” Rush 	 
	 	 	Title:  	CEO & President 	 

ACCEPTED AND AGREED

as of the date first above written:

GENERAL ELECTRIC CAPITAL CORPORATION

as Administrative Agent

	 	 	 	 	 
	By:

	 	/s/ C. Daniel Clark
 
Name: C. Daniel Clark	 	 
	 

	 	Title:   Vice President	 	 

[SIGNATURE PAGE TO GUARANTY AGREEMENT FOR RUSH ENTERPRISES, INC.’S CREDIT AGREEMENT]

 

 

 

ANNEX 1

TO

GUARANTY AND SECURITY AGREEMENT

FORM OF JOINDER AGREEMENT

This JOINDER AGREEMENT, dated as of  _____, 20_____, is delivered pursuant to Section
2.7 of the Guaranty, dated as of December 31, 2010, by Rush Enterprises, Inc.
(“Holdings”) and the Affiliates of Holdings from time to time party thereto as Guarantors
in favor of General Electric Capital Corporation, as administrative agent and collateral agent for
the Secured Parties referred to therein (the “Guaranty”). Capitalized terms used herein
without definition are used as defined in the Guaranty.

By executing and delivering this Joinder Agreement, the undersigned, as provided in
Section 2.7 of the Guaranty, hereby becomes a party to the Guaranty as a Guarantor
thereunder with the same force and effect as if originally named as a Guarantor therein and,
without limiting the generality of the foregoing, expressly assumes all obligations and liabilities
of a Guarantor thereunder and hereby agrees to be bound as a Guarantor for purposes thereof.

The undersigned hereby represents and warrants that each of the representations and warranties
contained in Section 2.1(a) of the Guaranty applicable to it is true and correct on and as
the date hereof as if made on and as of such date.

IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	 	[ADDITIONAL GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

A1-1

 

ACKNOWLEDGED AND AGREED

as of the date first above written:

GENERAL ELECTRIC CAPITAL CORPORATION

as Administrative Agent

	 	 	 	 	 
	By:

	 	 
 

Name:
	 	 
	 

	 	Title:	 	 

 

A1-2exv10w1

Exhibit 10.1

Execution Version

AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT

     AMENDMENT (this “Amendment”) dated as of January 6, 2011 to the Amended and Restated
Credit Agreement (the “Credit Agreement”) dated as of May 5, 2010, among PATRIOT COAL
CORPORATION, a Delaware corporation (the “Borrower”) and each lender from time to time
party thereto (collectively, the “Lenders” and individually, a “Lender”).

W I T N E S S E T H :

     WHEREAS, the parties hereto desire to amend the Credit Agreement as set forth below.

     NOW, THEREFORE, the parties hereto agree as follows:

     SECTION 1. Defined Terms; References. Unless otherwise specifically
defined herein, each term used herein that is defined in the Credit Agreement has the meaning
assigned to such term in the Credit Agreement. Each reference to “hereof”, “hereunder”, “herein”
and “hereby” and each other similar reference and each reference to “this Agreement” and each other
similar reference contained in the Credit Agreement shall, after this Amendment becomes effective,
refer to the Credit Agreement as amended hereby.

     SECTION 2.  New Definitions. Section 1.01 of the Credit Agreement is amended to add
the following new definitions thereto in appropriate alphabetical order:

“Amendment No. 1 to Credit Agreement” means that certain Amendment No. 1 to
Amended and Restated Credit Agreement, dated as of January 6, 2011, by and among the
Borrower and the Required Lenders.

“2006-2007 Notes” means those certain notes receivables held by the
Borrower as more particularly described in Annex I to Amendment No. 1 to Credit
Agreement.

“2006-2007 Notes Closing Date” means the date on which the sale of the 2006-2007
Notes permitted under Section 7.05(n) is consummated.

     SECTION 3. Definition of Applicable Rate. The Applicable Rate schedule set forth in the
definition of Applicable Rate in Section 1.01 of the Credit Agreement is hereby deleted and
replaced with the following revised schedule:

	 	 	 	 	 	 	 	 	 
	 	 	Applicable Rate
	 	 	 	 	Eurocurrency	 	 	 	 
	 	 	Consolidated	 	Rate Loans	 	 	 	 
	 	 	Leverage	 	and Letters of	 	Base Rate	 	Commitment
	Level	 	Ratio	 	Credit	 	Loans	 	Fee
	I
	 	> 3.00x
	 	4.500%
	 	3.500%
	 	0.750%
	II
	 	> 2.50x
	 	4.250%
	 	3.250%
	 	0.750%
	III
	 	> 2.00x
	 	4.000%
	 	3.000%
	 	0.625%
	IV
	 	> 1.50x
	 	3.750%
	 	2.750%
	 	0.625%
	V
	 	> 1.00x
	 	3.500%
	 	2.500%
	 	0.500%
	VI
	 	< 1.00x
	 	3.250%
	 	2.250%
	 	0.500%

 

 

     SECTION 4. Definition of Consolidated EBITDA. The definition of
“Consolidated EBITDA” in Section 1.01 of the Credit Agreement is hereby amended by (a) adding a “)”
at the end of clause (e) thereof, prior to the words “, plus (i)” and (b) adding the words
“without duplication and to the extent constituting a deduction in calculating Consolidated Net
Income” at the beginning of clause (ix) thereof.

     SECTION 5. Mandatory Prepayments. Section 2.05(b) of the Credit Agreement
is hereby amended by replacing the word “or” with “,”and adding the words “or (n)” after “(m)” in
the first parenthetical thereof to read as follows:

     “(other than any Disposition of any property permitted by Section 7.05 (a), (b), (c), (d),
(e), (h), (m) or (n))”.

     SECTION 6. Interest in Swing Line Loans. Section 2.08(a)(iii) of the Credit
Agreement is hereby amended by adding the words “for Eurocurrency Rate Loans” after the words
“plus the Applicable Rate”.

     SECTION 7. Dispositions. (a) Section 7.05 of the Credit Agreement is
amended by deleting the word “and” at the end of clause (l) thereof, replacing the “.” with the
words “; and” at the end of clause (m) thereof, and adding the following new clause (n) at the end
thereof to read as follows:

“(n) a Disposition of the 2006-2007 Notes; provided that the Borrower must receive
cash proceeds of such Disposition on the date of consummation of such Disposition of at
least $100,000,000.”

     (b) The proviso at the end of Section 7.05 of the Credit Agreement is amended by replacing the
word “and” with “,” and adding the words “and (n)” after “(l)” to read as follows:

     “provided, however, that any Disposition pursuant to Section 7.05(a),
(b), (c), (f), (g), (l) and (n) shall be for fair market
value and any Disposition pursuant to Section 7.05(m) shall be for Fair Market Value”.

     SECTION 8. Restricted Payments. Section 7.06 of the Credit Agreement is
hereby amended by adding the following words at the end of clause (d) thereof to read as follows:

2

 

     “; provided, further that the Consolidated Net Leverage Ratio of the Borrower
both before and after giving pro forma effect to any such Restricted Payment must be no
greater than 3:00:1:00;”

     SECTION 9. Financial Covenants. Section 7.11 of the Credit Agreement is hereby
amended by amending and restating clauses (a) and (b) thereof in their entirety as follows:

“(a) Consolidated Interest Coverage Ratio. Permit the Consolidated Interest
Coverage Ratio as of the end of any fiscal quarter of the Borrower, (i) for the
period of four consecutive fiscal quarters of the Borrower ending on each of June
30, 2010, and September 30, 2010, to be less than 3.00:1.00, (ii) for the period of
four consecutive fiscal quarters of the Borrower ending on December 31, 2010, to be
less than 2.25:1.00, (iii) for the period of four consecutive fiscal quarters of the
Borrower ending on March 31, 2011, to be less than 2.00:1.00, (iv) for the period of
four consecutive fiscal quarters of the Borrower ending on June 30, 2011, to be less
than 1.75:1.00, (v) for the period of four consecutive fiscal quarters of the
Borrower ending on September 30, 2011, to be less than 2.50:1.00 and (vi) for the
period of four consecutive fiscal quarters of the Borrower ending on December 31,
2011, and on the last day of each fiscal quarter of the Borrower thereafter to be
less than 3.00:1.00.”

(b) Consolidated Net Leverage Ratio. Permit the Consolidated Net Leverage
Ratio as of the end of any fiscal quarter of the Borrower, (i) for the period of
four consecutive fiscal quarters of the Borrower ending on each of June 30, 2010,
and September 30, 2010, to be greater than 3.00:1.00, (ii) for the period of four
consecutive fiscal quarters of the Borrower ending on December 31, 2010, to be
greater than 3.50:1.00 (or from and after the 2006-2007 Notes Closing Date, to be
greater than 3:25:1:00), (iii) for the period of four consecutive fiscal quarters of
the Borrower ending on each of March 31, 2011, and June 30, 2011, to be greater than
4.00:1.00 (or from and after the 2006-2007 Notes Closing Date, to be greater than
3:75:1:00), (iv) for the period of four consecutive fiscal quarters of the Borrower
ending on September 30, 2011, to be greater than 3.25:1.00 (or from and after the
2006-2007 Notes Closing Date, to be greater than 3:00:1:00) and (v) for each period
of four consecutive fiscal quarters of the Borrower ending on December 31, 2011, and
on the last day of each fiscal quarter of the Borrower thereafter to be greater than
3.00:1.00.”

     SECTION 10. Representations of Borrower. The Borrower represents and warrants that
(a) both before and after giving effect to this Amendment, the representations and warranties of
the Borrower set forth in Article V of the Credit Agreement and contained in each other Loan
Document, or which are contained in any document furnished at any time under or in connection with
the Credit Agreement, are true and correct in all material respects on and as of the Amendment
Effective Date, except to the extent that such representations and warranties specifically refer to
an earlier date, in which case they shall be true and correct in all material

3

 

respects as of such
earlier date, and (b) after giving effect to this Amendment, no Default or Event of Default will
have occurred and be continuing.

     SECTION 11. Authority. The Borrower has the requisite corporate or other
organizational power and authority to execute and deliver this Amendment and to perform its
obligations hereunder and under the Credit Agreement (as amended hereby). Each of the Subsidiary
Guarantors has the requisite corporate or other organizational power and authority to execute and
deliver the Consent (as defined below). The execution, delivery and performance by the Borrower of
this Amendment and by the Subsidiary Guarantors of the Consent and the performance by the Borrower
and each other Loan Party of the Credit Agreement (as amended hereby) and each other Loan Document
to which it is a party, in each case, have been authorized by all necessary corporate or other
organizational action of such Person, and no other corporate or other organizational proceedings on
the part of each such Person is necessary to consummate such transactions.

     SECTION 12. Enforceability. This Amendment has been duly executed and
delivered on behalf of the Borrower. The Consent has been duly executed and delivered by each of
the Subsidiary Guarantors. Each of this Amendment, the Consent and, after giving effect to this
Amendment, the Credit Agreement and the other Loan Documents, (a) is the legal, valid and binding
obligation of each Loan Party party hereto and thereto, enforceable against such Loan Party in
accordance with its terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally
and by general equitable principles (whether enforcement is sought by proceedings in equity or at
law) and (b) is in full force and effect. Neither the execution, delivery or performance of this
Amendment or of the Consent or the performance of the Credit Agreement (as amended hereby) will
adversely affect the validity, perfection or priority of the Administrative Agent’s Lien on any of
the Collateral or its ability to realize thereon. This Amendment is effective to amend the Credit
Agreement as provided therein.

     SECTION 13. No Conflicts. Neither the execution and delivery of this
Amendment or the Consent nor the performance of and compliance with the terms and provisions hereof
or of the Credit Agreement (as amended hereby) by any Loan Party will, at the time of such
performance, (a) violate or conflict with any provision of its certificate of formation or limited
liability company agreement or other governing documents of such Person, (b) violate, contravene or
materially conflict with any Requirement of Law or Contractual Obligation (including, without
limitation, Regulation U), except for any violation, contravention or conflict which could not
reasonably be expected to have a Material Adverse Effect or (c) result in or require the creation
of any Lien (other than those permitted by the Loan Documents) upon or with respect to its
properties. No consent or authorization of, filing with, notice to or other act by or in respect
of, any Governmental Authority or any other Person is required in connection with the transactions
contemplated hereby.

     SECTION 14. Effect of Amendment. (a) Except as specifically amended above,
the Credit Agreement and the other Loan Documents are and shall continue to be in full force and

4

 

effect and are hereby in all respects ratified and confirmed. Without limiting the generality of
the foregoing, the Collateral Documents and all of the Collateral described therein do and
shall continue to secure the payment of all Obligations under and as defined therein.

     (b) The execution, delivery and effectiveness of this Amendment shall neither operate as a
waiver of any right, power or remedy of any Secured Party under any of the Loan Documents, nor,
except as expressly provided herein, constitute a waiver or amendment of any provision of any of
the Loan Documents.

     SECTION 15. Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York.

     SECTION 16. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument.

     SECTION 17. Effectiveness. This Amendment shall become effective on the
date hereof provided that the following conditions are met (the “Amendment Effective
Date”):

     (a) the Administrative Agent shall have received from each of the Borrower, the Swing Line
Lender and the Required Lenders a counterpart hereof signed by such party or facsimile or other
written confirmation (in form satisfactory to the Administrative Agent) that such party has signed
a counterpart hereof;

     (b) the Borrower shall have paid to the Administrative Agent for the account of each Lender
that has executed and delivered to the Administrative Agent or its counsel a signature page
approving this Amendment on or before 5 p.m. (New York City time) on January 6, 2011, a fee in an
amount equal to 0.25% of the aggregate amount of such Lender’s Commitment outstanding immediately
prior to the Amendment Effective Date; and

     (c) the Administrative Agent shall have received counterparts of the Consent of Guarantors
attached hereto as Annex II (the “Consent”) executed by each of the Subsidiary
Guarantors as of the date hereof.

[Signature pages follow]

5

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the
date first above written.

	 	 	 	 	 
	 	PATRIOT COAL CORPORATION

 	 
	 	By:  	/s/ Robert L. Mead 	 
	 	 	Name:  	Robert L. Mead 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 

Signature Page to Amendment No. 1

 

 

  Acknowledged by:

  BANK
OF AMERICA, N.A., as Lender

	 	 	 	 	 

	By:
	 	/s/ Adam H. Fey	 	 
	 

	 	 

Name: Adam H. Fey
	 	 
	 

	 	Title:   Director	 	 
	 

Signature Page to Amendment No. 1

 

 

  Bank
Of Oklahoma, N.A.,

     as a Lender

	 	 	 	 	 

	By:
	 	/s/ Bershunda J. Burnett	 	 
	 

	 	 

Name: Bershunda J. Burnett
	 	 
	 

	 	Title:   Vice President	 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC,

as a Lender

 	 
	 	By:  	/s/ Michael J. Mozer
 	 
	 	 	Name:  	Michael J. Mozer 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	CATERPILLAR FINANCIAL SERVICES

CORPORATION,

as a Lender

 	 
	 	By:  	/s/ Michael M. Ward
 	 
	 	 	Name:  	Michael M. Ward 	 
	 	 	Title:  	Credit & Operations Manager — Syndications

Caterpillar  Financial Services Corporation 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	CITIBANK, N.A., 

as a Lender

 	 
	 	By:  	/s/ Raymond G. Dunning
 	 
	 	 	Name:  	Raymond G. Dunning       	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	COMERICA BANK,
as a Lender

 	 
	 	By:  	/s/ Mark J Leveille
 	 
	 	 	Name:  	Mark J Leveille 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK,
as a Lender

 	 
	 	By:  	/s/ Robert M. Sander
 	 
	 	 	Name:  	Robert M. Sander 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	M&I Marshall & Ilsley Bank, f/k/a 

     Southwest Bank, An M&I Bank

as a Lender

 	 
	 	By:  	/s/ Roy C. Postel
 	 
	 	 	Name:  	Roy C. Postel 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	MORGAN STANLEY SENIOR FUNDING, INC., 

as a Lender
 	 
	 
	 	By:  	/s/ Scott Taylor
 	 
	 	 	Name:  	Scott Taylor  	 
	 	 	Title:  	Vice President 	 
	 	 	Date: 	12/22/2010 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	Natixis,

as a Lender

 	 
	 	By:  	/s/ Carlos Quinteros
 	 
	 	 	Name:  	Carlos Quinteros 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/ Louis P. Laville, III
 	 
	 	 	Name:  	Louis P. Laville, III 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	PNC NATIONAL ASSOCIATION, 
as a Lender

 	 
	 	By:  	/s/ Richard C. Munsick
 	 
	 	 	Name:  	Richard C. Munsick  	 
	 	 	Title:  	Sr. Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	RAYMOND JAMES BANK, FSB, 
as a Lender

 	 
	 	By:  	/s/ Garrett McKinnon
 	 
	 	 	Name:  	Garrett McKinnon  	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	RB International Finance USA LLC, 

Formerly known as RZB Finance LLC, 

as a Lender

 	 
	 	By:  	/s/ John A. Valiska
 	 
	 	 	Name:  	John A. Valiska 	 
	 	 	Title:  	First Vice President 	 
	 
	 	 	 
	 	By:  	                   /s/ Shirley Ritch
 	 
	 	 	Name:  	Shirley Ritch 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	SOCIÉTÉ GÉNÉRALE, 

as a Lender

 	 
	 	By:  	/s/ Emmanuel Chesneau
 	 
	 	 	Name:  	Emmanuel Chesneau 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	SovereignsBank,
as a Lender

 	 
	 	By:  	/s/ W. Jay Reese III
 	 
	 	 	Name:  	W. Jay Reese III  	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	The PrivateBank and Trust Company, 

as a Lender

 	 
	 	By:  	/s/ Nicholas DeVilder
 	 
	 	 	Name:  	Nicholas DeVilder 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Amendment No. 1

 

 

UBS LOAN FINANCE LLC,

as a Lender

	 	 	 	 	 	 
		
		By:
	 	/s/ Mary E. Evans 	 	 
		 

	 	 

Name: Mary E. Evans
	 	 
		 

	 	Title:   Associate Director	 	 
		 
	 	 	 	 
		By:
	 	/s/ Irja R. Otsa 	 	 
		 

	 	 

Name: Irja R. Otsa
	 	 
		 

	 	Title:   Associate Director	 	 
	 

Signature Page to Amendment No. 1

 

 

United Overseas Bank Limited, 

New York Agency,

as a Lender

	 	 	 	 	 	 
		
		By:
	 	/s/ K. Jin Koh 	 	 
		 

	 	 

Name: K. Jin Koh
	 	 
		 

	 	Title:   SVP & GM	 	 
		 
	 	 	 	 
		By:
	 	/s/ Mario Sheng 	 	 
		 

	 	 

Name: Mario Sheng
	 	 
		 

	 	Title:   AVP	 	 
	 

Signature Page to Amendment No. 1 [Patriot Coal Corporation]

 

 

Acknowledged by:

BANK OF AMERICA, N.A., as

     Administrative Agent

	 	 	 	 	 

	By:
	 	/s/ Kathleen M. Carry	 	 
	 

	 	 

Name: Kathleen M. Carry
	 	 
	 

	 	Title:   Vice President	 	 
	 

	 	          	 	 

Signature Page to Amendment No. 1

 

 

  Acknowledged by:

  BANK OF AMERICA, N.A.,

     as Swing Line Lender

	 	 	 	 	 

	By:
	 	/s/ Adam H. Fey	 	 
	 

	 	 

Name: Adam H. Fey
	 	 
	 

	 	Title:   Director	 	 
	 

Signature Page to Amendment No. 1

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