Document:

Exhibit 10.4

 

WAIVER
AND AMENDMENT NO. 3 TO CREDIT AGREEMENT

 

This WAIVER
AND AMENDMENT NO. 3 TO CREDIT AGREEMENT, dated as of October 23,
2007 (this “Amendment”), to that
certain Credit Agreement, dated as of December 20, 2006 (as amended,
restated, supplemented or otherwise modified from time to time prior to the
date hereof, the “Credit Agreement”), by and among BOWIE RESOURCES, LLC, a Delaware limited liability company
(the “Borrower”), COLORADO
HOLDING COMPANY, INC., a Delaware corporation (“CHC”),
BOWIE RESOURCES MANAGEMENT PARTNER, LLC,
a Nevada limited liability company (“BRMP” and
together with CHC sometimes collectively referred to as the “Guarantors”, and the Guarantors, together with the Borrower,
collectively, the “Member Parties”), and GENERAL ELECTRIC CAPITAL
CORPORATION, as agent for the lender (“Lender”)
party to the Credit Agreement (in such capacity, the “Agent”)
and as a Lender under the Credit Agreement. Capitalized terms used herein not otherwise defined herein or
otherwise amended hereby shall have the respective meanings ascribed thereto in
the Credit Agreement.

 

RECITALS:

 

WHEREAS,
Section 1.1(a)(ii) of the Credit Agreement requires that the Borrower
shall repay the aggregate Term Loan on the last day of each Fiscal Month
commencing July 31, 2007 in the following monthly installments: (i) from
July 31, 2007 through and including December 31, 2007, $2,000,000 and
(ii) from January 31, 2008 through and including the Commitment
Termination Date, $1,000,000;

 

WHEREAS, the
Borrower has failed to make the principal portion of the Term Loan installment
due July 31, 2007;

 

WHEREAS, the
Borrower has failed to make the principal portion of the Term Loan installment
due September 30, 2007;

 

WHEREAS, Section 6.10
of the Credit Agreement requires the Borrower to meet certain Financial
Covenants, as set forth in Annex E to the Credit Agreement;

 

WHEREAS, the
Borrower has breached Section 6.10 of the Credit Agreement, in respect of
the Minimum Fixed Charge Coverage Ratio set forth in Annex E to the Credit
Agreement, for the six month period ended June 30, 2007;

 

WHEREAS, the
Borrower has breached Section 6.10 of the Credit Agreement, in respect of
the Maximum Leverage Ratio set forth in Annex E to the Credit Agreement, for
the Fiscal Quarter ended June 30, 2007;

 

WHEREAS,
the Member Parties have requested that the Lender and Agent agree to waive the
Term Loan Defaults, the FCCR Default and the Leverage Ratio Default (each as defined
below) and agree to certain amendments to the Credit Agreement, as more particularly

 

 

set forth herein; and

 

WHEREAS,
the Lender and the Agent are willing to waive the Term Loan Defaults, the FCCR
Default and the Leverage Ratio Default (each as defined below), and to agree to
certain amendments to the Credit Agreement, as more fully set forth
hereinafter;

 

NOW, THEREFORE,
in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

 

SECTION I.                   AMENDMENTS AND WAIVERS

 

Subject to the terms and conditions set forth
herein, and in reliance on the representations and warranties of the Member
Parties set forth herein,

 

A.                                    Section 1.1(a)(ii) of the Credit Agreement
is hereby amended by deleting such section in its entirety and inserting the
following text in lieu thereof:

 

“(ii)                            Subject to Section 1.1(a)(iii) below, the
Borrower shall repay the aggregate Term Loan in monthly installments on the
last day of each Fiscal Month commencing August 31, 2007, as follows:

 

	
  Fiscal Month Ending:

  	
   

  	
  Installment Amounts:

  	
   

  
	
  August 31, 2007

  	
   

  	
  $

  	
  2,000,000.00

  	
   

  
	
  October 31, 2007

  	
   

  	
  $

  	
  2,000,000.00

  	
   

  
	
  November 30, 2007

  	
   

  	
  $

  	
  3,000,000.00

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  3,000,000.00

  	
   

  
	
  January 31, 2008

  	
   

  	
  $

  	
  2,000,000.00

  	
   

  
	
  February 29, 2008, and each Fiscal
  Month ending thereafter through and including the Commitment Termination
  Date”

  	
   

  	
  $

  	
  1,000,000.00

  	
  ”

  

 

B.                                    Clause (b) of Annex E to the
Credit Agreement is hereby amended by deleting such clause in its entirety and
inserting the following in lieu thereof:

 

“Minimum Fixed Charge Coverage Ratio. Borrower and its Subsidiaries shall
have on a consolidated basis at the end of each Fiscal Quarter set forth below,
a Fixed Charge Coverage Ratio for the period ending on the last day of such
Fiscal Quarter of not less than the following:

 

	
  Period

  	
   

  	
  Ratio

  
	
  three-month
  period ending March 31, 2007

  	
   

  	
  1.2:1.0

  
	
  six-month
  period ending June 30, 2007

  	
   

  	
  1.2:1.0

  

 

2

 

	
  nine-month
  period ending September 30, 2007

  	
   

  	
  1.2:1.0

  
	
  twelve-month
  period ending December 31, 2007

  	
   

  	
  1.0:1.0

  
	
  twelve-month
  period ending March 31, 2008

  	
   

  	
  1.0:1.0

  
	
  Each
  twelve-month period ending each Fiscal Quarter thereafter

  	
   

  	
   1.2:1.0”

  

 

C.                                    The
Agent and Lenders hereby waive the Events of Default described as follows
(collectively the “Waivers”):

 

1. The Event of Default occasioned by the
failure of the Borrower to make the required principal payment in respect of
the Term Loan on July 31, 2007 (the “July Term Loan
Default”);

 

2. The Event of Default occasioned by the
failure of the Borrower to make the required principal payment in respect of
the Term Loan on September 30, 2007 (the “September Term
Loan Default” and, together with the July Term Loan Default,
the “Term Loan Defaults”);

 

3. The Event of Default occasioned by the
Borrower and its Subsidiaries failing to have, as of June 30, 2007 for the
six-month period then ended, a Fixed Charge Coverage Ratio of not less than 1.2
to 1.0 (the “FCCR Default”); and

 

4. The Event of Default occasioned by the
Borrower and its Subsidiaries failing to have, as of June 30, 2007 for the
twelve month period then ended, a Maximum Leverage Ratio of not more than 10.0
to 1.0 (the “Leverage Ratio Default”).

 

SECTION II.               CONDITIONS PRECEDENT TO
EFFECTIVENESS OF AMENDMENT

 

The
effectiveness of the amendments and Waivers set forth in this Amendment is
subject to the condition that the Borrower, the other Member
Parties, the Lender and the Agent indicate their consent to such amendments and
Waivers by executing and delivering the signature pages hereof to the
Agent (the date on which the last of
such deliveries is made is referred to herein as the “Amendment Effective Date”).

 

SECTION III.           REPRESENTATIONS AND
WARRANTIES

 

A.                 Corporate Power and Authority. Each Member Party has
all requisite corporate power and authority to enter into this Amendment and to
carry out the transactions contemplated by, and perform its obligations under,
the Credit Agreement, as amended by this Amendment (the “Amended
Credit Agreement”).

 

B.                 Authorization of Amendments. The execution and
delivery of this Amendment have been duly authorized by all necessary
corporate, limited liability company or partnership (as applicable) action on
the part of each Member Party.

 

3

 

C.                 No Conflict. The
execution and delivery by each Member Party of this Amendment and the
performance by each Member Party of the Amended Credit Agreement do not and
will not (i) violate any provision of any law or any governmental rule or
regulation applicable to any Member Party, the certificate or articles of
incorporation or bylaws (or other organizational documents) of any Member Party
or any order, judgment or decree of any court or other agency of government
binding on any Member Party; (ii) conflict with, result in a breach of or
constitute (with due notice or lapse of time or both) a default under any
material indenture, mortgage, deed to secure debt, deed of trust, lease,
agreement or other instrument to which any Member Party is a party or by which
any Member Party or any of its property is bound (any of the foregoing, a “Contractual Obligation”); (iii) result in or require the creation or imposition of any
Lien upon any of the properties or assets of a Member Party other than those in
favor of the Agent, on behalf of itself and the Lender, pursuant to the Loan
Documents; or (iv) require any approval of stockholders or any approval or
consent of any Person under any Contractual Obligation of any Member Party
other than those that have been made or obtained.

 

D.                 Governmental Consents. No action, consent or approval of, registration or filing with or any
other action by any Governmental Authority is required in connection with the
execution and delivery by each Member Party of this Amendment or the
performance by the Member Parties of the Amended Credit Agreement.

 

E.                   Binding Obligation. This Amendment has been duly
executed and delivered by each Member Party and this Amendment and the Amended
Credit Agreement constitute the legal, valid and binding obligation of each
Member Party enforceable against each Member Party in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting creditors’ rights
generally and except as enforceability may be limited by general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

 

F.                   Incorporation of Representations and Warranties
From Loan Documents. The representations and warranties contained in the Loan
Documents are and will be true, correct and complete in all respects on and as
of the Amendment Effective Date to the same extent as though made on and as of
that date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case they were true, correct
and complete in all respects on and as of such earlier date.

 

G.                 Absence of Default. After
giving effect to the amendments and Waivers set forth in Section I
hereof, no event has occurred and is continuing or will result from the
consummation of the transactions contemplated by this Amendment that would
constitute an Event of Default or a Default, other than the Synfuel Default. “Synfuel Default” shall mean the Borrower’s breach of Section 6.23 of the Credit
Agreement resulting from the Borrower’s failure to obtain the express written
consent of the Agent prior to entering into certain contracts for the sale of
coal to Synfuels.

 

4

 

SECTION IV.          ACKNOWLEDGEMENT AND CONSENT

 

Each Guarantor hereby consents to the terms
of this Amendment and further hereby confirms and agrees that, notwithstanding
the effectiveness of this Amendment, the obligations of such Guarantor under
each of the Loan Documents to which such Guarantor is a party shall not be
impaired and each of the Loan Documents to which such Guarantor is a party are,
and shall continue to be, in full force and effect and are hereby confirmed and
ratified in all respects.

 

Each Guarantor hereby acknowledges and agrees
that (i) notwithstanding the conditions to effectiveness set forth in this
Amendment, such Guarantor is not required by the terms of the Credit Agreement
or any other Loan Document to consent to the amendments to the Credit Agreement
effected pursuant to this Amendment and (ii) nothing in the Credit
Agreement, this Amendment or any other Loan Document shall be deemed to require
the consent of such Guarantor to any future amendments to the Credit Agreement.

 

SECTION V.              MISCELLANEOUS

 

A.                 Binding
Effect. This Amendment shall be binding upon the parties hereto and
their respective successors and assigns and shall inure to the benefit of the
parties hereto and the successors and assigns of Lender.

 

B.                 Severability. In case any provision
in or obligation hereunder shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

 

C.                 Effect
on Credit Agreement. Except as expressly set forth herein, the Lender and Agent agree to no
amendment and grant no waiver or consent with respect to the Credit Agreement
or any other Credit Document, and the Credit Agreement and the other Credit
Documents remain in full force and effect and are hereby ratified and confirmed.
Lender’s and Agent’s agreeing to the amendments and waivers contained herein do
not and shall not create (nor shall any Credit Party rely upon the existence of
or claim or assert that there exists) any obligation of Lender or Agent to
consider or to agree to any further amendments or waivers to any Credit
Document. In the event that Lender or Agent subsequently agree to consider any
further amendment or waiver to any Credit Document, neither the amendments and
waivers contained herein nor any other conduct of Lender or Agent shall be of
any force or effect on Lender’s or Agent’s consideration or decision with
respect to any such amendment or waiver, and Lender and Agent shall have no
further obligation whatsoever to consider or to agree to any such amendment or
waiver. Lender and Agent expressly reserve the right to require strict
compliance with the terms of the Credit Agreement and the other Credit
Documents in all respects. The amendments and waivers agreed to herein shall
not constitute a course of dealing at variance with the Credit Agreement so as
to require further notice by Lender or Agent to require strict compliance with
the terms of the Credit Agreement and the other Credit Documents in the future.
The parties hereto acknowledge and agree that this Amendment shall be deemed to
be a Credit Document. On and after the Amendment Effective Date, each reference
in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or
words of like import referring to the Credit Agreement, and each reference in
the other Credit Documents to the

 

5

 

“Credit Agreement”, “thereunder”, “thereof”, “therein”
or words of like import referring to the Credit Agreement shall mean and be a
reference to the Amended Credit Agreement.

 

D.                 Limited Waivers. The Waivers set forth above are subject to the conditions and
limitations set forth herein and shall be applicable only for the purposes, and
the date or period, as applicable, set forth herein, and not for any other
purposes or with respect to any other date or period. The Waivers contained
herein shall not apply to any other Default or Event of Default, regardless of
whether such Default or Event of Default is prior or subsequent to any of the
Defaults or Events of Default that are the subject of the Waivers or is of the
same or a different type as any of the Defaults or Events of Default that are
the subject of the Waivers. With respect to any Default or Event of Default
(other than those that  are the subject
of the Waivers), the Agent and Lender retain and reserve all rights and
remedies of every and any kind to which either of such parties may be entitled
under the Credit Agreement, any other Loan Document or any document
contemplated by or delivered to the Agent or the Lender in connection with
the Credit Agreement, including the right to realize upon any and all
Collateral.

 

E.                   Fees and Expenses. The Member Parties acknowledge that all costs, fees and expenses as
described in Section 11.3 of the Credit Agreement incurred by the Lender
or the Agent or its counsel with respect to this Amendment and the documents
and transactions contemplated hereby shall be for the account of the Borrower.

 

F.                   Headings. Section headings
herein are included herein for convenience of reference only and shall not
constitute a part hereof for any other purpose or be given any substantive
effect.

 

G.                 APPLICABLE
LAW. THIS AMENDMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401
AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

H.                 Counterparts. This Amendment may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

 

[The remainder of this page is intentionally left blank.]

 

6

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered
by their respective officers thereunto duly authorized as of the date first
written above.

 

	
  BORROWER:

  	
  BOWIE RESOURCES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Dyer

  
	
   

  	
  Name:

  	
  Scott Dyer

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  GUARANTORS:

  	
  COLORADO HOLDING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James J. Wolff

  
	
   

  	
  Name:

  	
  James J. Wolff

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BOWIE RESOURCES MANAGEMENT 

  PARTNER, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith H. Sieber

  
	
   

  	
  Name:

  	
  Keith H. Sieber

  
	
   

  	
  Title:

  	
  President

  

 

S-1

 

	
  AGENT AND LENDER:

  	
  GENERAL ELECTRIC CAPITAL CORPORATION, 

  in its respective capacities as Agent and Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matthew A. Toth, III

  
	
   

  	
  Name:

  	
  Matthew A. Toth, III

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

S-2Exhibit 10.5

 

CONSENT, LIMITED WAIVER AND
AMENDMENT NO. 4 TO THE CREDIT AGREEMENT

 

THIS
CONSENT, LIMITED WAIVER
AND AMENDMENT NO. 4 TO THE CREDIT AGREEMENT, dated as of August     ,
2007 (this “Agreement”), is made by and among BOWIE
RESOURCES, LLC, a Delaware limited liability company (the “Borrower”);
COLORADO HOLDING COMPANY, INC., a
Delaware corporation (“CHC”); BOWIE RESOURCES MANAGEMENT
PARTNER, LLC, a Nevada limited liability company (“BRMP” and
together with the Borrower and CHC, collectively the “Loan Parties”);
and GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation, as agent (the “Agent”) for the lenders (the “Lenders”)
party from time to time to the Credit Agreement described below and, for
itself, as a Lender.  Capitalized terms
used in this Agreement and not otherwise defined herein have the same meanings
as set forth in the Credit Agreement, as amended hereby.

 

W
I T N E S S E T H:

 

WHEREAS, the Loan Parties, the other Credit Parties signatory thereto from
time to time, the Lenders and the Agent are parties to that certain Credit
Agreement, dated as of December 20, 2006 (as amended, amended and
restated, modified or supplemented from time to time, the “Credit Agreement”)
pursuant to which the Lenders made certain loans and certain other extensions
of credit to the Borrower;

 

WHEREAS, the Borrower
and W2 Holdings LLC, a Delaware limited liability company and an Affiliate of
the Borrower, wish to enter into those certain contracts listed on Exhibit A
attached hereto (in the respective forms attached to Exhibit A, with such
modifications, prior to the execution and delivery thereof to which the Agent
may consent, the “Synfuel Contracts”);

 

WHEREAS, Section 6.4
of the Credit Agreement, in its current form, prohibits the Borrower from
entering into the Synfuel Contracts;

 

WHEREAS, the Borrower
has requested that the Agent and Lenders grant their respective consent to an
amendment to Section 6.4 of the Credit Agreement to permit the execution
and delivery by the Borrower of the Synfuels Contracts (the “Consent”);

 

WHEREAS, Section 6.10
of the Credit Agreement requires the Borrower to meet certain Financial
Covenants, as set forth in Annex E to the Credit Agreement;

 

WHEREAS, the Borrower
has breached Section 6.10 of the Credit Agreement, in respect of the
Maximum Leverage Ratio set forth in Annex E to the Credit Agreement, for the
Fiscal Quarter ended June 30, 2007 (the “Leverage Ration Default”);

 

WHEREAS, the Credit
Parties have requested that the Agent and the Borrowers waive the Leverage Ratio
Default (the “Waiver”);

 

WHEREAS, the Agent and
the Lenders are willing to (i) grant their respective consents 

 

 

to
an amendment to Section 6.4 of the Credit Agreement to permit the
execution and delivery by the Borrower of the Synfuel Contracts, (ii) grant
the Waiver and (iii) amend the Credit Agreement as set forth herein, in
each case, in the manner, and subject to the terms and conditions set forth
herein; and

 

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

 

Section 1.  Consent.  Subject to the
terms and conditions set forth herein, and in reliance on
the representations and warranties of the Credit Parties set forth herein, the
Agent and the Lenders hereby acknowledge and consent to the execution and
delivery by the Borrower of the Synfuel Contracts in the form attached hereto
as part of Exhibit A, with such modifications thereto, prior to the
execution and delivery thereof, as may be consented to by the Agent.

 

Section 2.  Limited Waiver.  Subject to the terms and conditions set forth
herein, and in reliance on the representations and warranties of the Credit
Parties set forth herein, the Agent and the Lenders hereby waive the Leverage
Ratio Default.

 

Section 3.  Amendments.   The Credit Agreement is hereby amended as
follows:

 

(a)  Section 6.4 of the Credit Agreement
is amended by adding thereto, immediately following the heading thereof and
prior to subsection (a) thereof, the following phrase, which shall be
deemed to modify each subsection of such Section 6.4:

 

“Except
for the Synfuel Contracts,”

 

(b)  Annex A to the Credit Agreement is amended
by adding thereto, in the proper alphabetical order, the following additional
defined terms:

 

(i)        “Fourth Amendment”
shall mean that certain Consent, Limited Waiver and Amendment No. 4 to the
Credit Agreement, dated as of August     , 2007, by
and among Agent, Lender and the Loan Parties.

 

(ii)     “Synfuel Contracts”
means and refers to the “Synfuel Contracts” as defined in the Fourth Amendment.

 

Section 4.  Conditions Precedent.  This Agreement shall not become effective
until the date (the “Effective Date”) on which the Agent has received
each and all of the following:

 

(a)  counterparts of this Agreement, duly
executed and delivered on behalf of Bowie, CHC, BRMP and the Requisite Lenders;
and

 

(b)  copies of the Synfuels Contracts, as
executed and delivered, in such respective forms as are within the meaning of “Synfuels
Contracts” as set forth in this Agreement.

 

 

2

 

Section 5.  Representations and Warranties.  To
induce the Agent and the Lenders to enter into this Agreement, each Loan Party
hereby represents and warrants that as of the date hereof:

 

(a)  all
representations and warranties made under the Credit Agreement and the other
Loan Documents, to the extent applicable to such Loan Party, shall be deemed to
be made, and shall be true and correct in all respects, at and as of the
Effective Date except to the extent that any such representation or warranty
expressly relates to an earlier date, in which case such representation and
warranty shall have been true and correct in all respects as of such earlier
date, or previously fulfilled in accordance with the terms hereof;

 

(b)  the key man
insurance required pursuant to Section 5.4(c)(vii) and Section 5.22
of the Credit Agreement has been obtained as of the Effective Date, in accordance
with the requirements of the Credit Agreement, as modified by that certain
Waiver No. 4 to Credit Agreement, dated as of June 14, 2007;

 

(c)  there exists no
Default or Event of Default under the Credit Agreement or any of the Loan
Documents;

 

(d)  the execution and
delivery by the Loan Parties of this Agreement, (i) are within the powers
of the Loan Parties, as applicable, (ii) have been duly authorized by all
necessary action on the part of the Loan Parties, as applicable, (iii) have
received all necessary governmental approval and (iv) do not and will not
contravene or conflict with (A) any provision of law or the certificate of
incorporation or by-laws or operating agreement or other organizational
documents of the Loan Parties, as applicable, or (B) any agreement,
judgment, injunction, order, decree or other instrument binding upon the Loan
Parties or any of their respective Subsidiaries; and

 

(e)  this Agreement has been duly executed and delivered by the duly authorized
officers of each Loan Party, and this Agreement and the Credit Agreement are
the legal, valid and binding obligation of each Loan Party enforceable against
it in accordance with its terms, except as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization or other similar laws
affecting creditors’ rights generally and by general principles of equity.

 

All
representations and warranties made under this Agreement shall survive, and not
be waived by, the execution of this Agreement by the Lenders and the Agent, any
investigation or inquiry by any Lender or the Agent, or the making of any loans
under the Credit Agreement.

 

Section 6.  Acknowledgment
and Reaffirmation.  The Loan Parties hereby reaffirm and ratify
in all respects, as of the Effective Date, the covenants and agreements
contained in each Loan Document to which it is a party.  The Credit Agreement and the other Loan
Documents shall remain unchanged and in full force and effect in accordance
with their respective terms and shall constitute the legal, valid, binding and
enforceable obligations of the Credit Parties to the Lenders and the Agent,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws affecting creditors’ rights
generally and by 

 

3

general principles of
equity.  This Agreement shall not be
construed to (i) impair the validity, perfection or priority of any lien
or security interests securing the Obligations; (ii) waive or impair any
rights, powers or remedies of the Agent or the Lenders under the Credit
Agreement and the other Loan Documents; (iii) constitute an agreement by
the Agent or the Lenders or require the Agent or the Lenders to extend the time
for payment of any of the Obligations; or (iv) constitute a waiver of any
right of the Agent or the Lenders to insist on strict compliance by the Credit
Parties with each and every term, condition and covenant of this Agreement and
the other Loan Documents in accordance therewith.

 

Section 7.  Course
of Dealing, Etc.  Each Loan
Party hereby acknowledges and agrees that the execution, delivery and
performance of this Agreement by the Agent and the Lenders do not and shall not
create (nor shall the Loan Parties rely upon the existence of or claim or
assert that there exists) any obligation of the Agent or the Lenders to
consider or agree to any other amendment of or consent with respect to, any of
the Loan Documents, or any other instrument or agreement to which the Agent or
any Lender is a party (collectively, a “Modification or Waiver”), and in
the event that the Agent or any of the Lenders subsequently agree to consider
any requested Modification or Waiver, neither the existence of this Agreement
nor any other conduct of the Agent or any of the Lenders related hereto, shall
be of any force or effect on the Agent’s or any of the Lenders’ consideration
or decision with respect to any such requested Modification or Waiver, and the
Agent and the Lenders shall not have any obligation whatsoever to consider or
agree to any such Modification or Waiver.

 

Section 8.  Miscellaneous.

 

(a)  Material
Contract.  Each Loan Party hereby
acknowledges and agrees that the Synfuels Contracts are “Material Contracts” as
such term is defined in the Credit Agreement.

 

(b)  Loan Document
Pursuant to Credit Agreement.  This Agreement is a Loan Document executed
pursuant to the Credit Agreement and shall be construed, administered and
applied in accordance with all of the terms and provisions of the Credit Agreement.

 

(c)  Counterparts.  This Agreement may be executed by the parties
hereto in several counterparts, each of which when executed and delivered shall
be deemed to be an original and all of which shall constitute together but one
and the same agreement.  Delivery of an
executed counterpart of a signature page to this Agreement by facsimile
shall be effective as delivery of a manually executed counterpart of this
Agreement.

 

(d)  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY
APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

(e)  Lenders.  The Agent acknowledges and agrees that its
execution of this Agreement as Agent and as a Lender constitutes the approval
and consent of the Agent 

 

4

 

 

and the Requisite Lenders to the transactions herein
described.

 

(f)  Relationship of
the Parties.  The relationship of the
Loan Parties and the Agent has been and shall continue to be, at all times,
that of debtors and creditors and not as joint venturers or partners.  Nothing contained in this Agreement, any
instrument, document or agreement delivered in connection herewith or in the
Credit Agreement or any other Loan Document shall be deemed or construed to
create a fiduciary relationship between or among the parties.

 

(g)  Further
Actions; Successors and Assigns. 
Each of the Loan Parties agrees to take any further action that the
Lenders or the Agent shall reasonably request from time to time in connection
herewith to evidence the agreements set forth herein.  This Agreement shall be binding upon and
inure to the benefit of the successors and permitted assigns of the parties
hereto.

 

[signature pages follow]

 

5

 

 

IN WITNESS WHEREOF, the
signatories hereto have caused this Agreement to be executed by their
respective duly authorized representatives as of the day and year first above
written.

 

	
   

  	
  BOWIE RESOURCES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Dyer

  
	
   

  	
  Name:

  	
  Scott Dyer

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  COLORADO HOLDING COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen Addington

  
	
   

  	
  Name:

  	
  Stephen Addington

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  BOWIE RESOURCES MANAGEMENT PARTNER, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith H. Sieber

  
	
   

  	
  Name:

  	
  Keith Sieber

  
	
   

  	
  Title:

  	
  President

  

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Consent, Limited Waiver
and Amendment No. 4 To The Credit Agreement]

 

 

	
   

  	
  GENERAL ELECTRIC CAPITAL CORPORATION, as Agent
  and Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matthew A. Toth, III

  
	
   

  	
  Name:

  	
  Matthew A. Toth, III

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

 

 

 

 

 

 

[Signature
Page to Consent, Limited Waiver
and Amendment No. 4 To The Credit Agreement]

 

 

 

EXHIBIT A

 

SYNFUEL CONTRACTS

 

(in the respective forms attached)

 

1.   Security Agreement between W2 Holdings LLC
and Bowie Resources, LLC, dated as of June 1, 2007.

 

2.   Guarantee of Lehman Brothers Holdings Inc.,
dated as of August 7, 2007.

 

3.  Guarantee of Loyola Synfuels, LLC and
Sentinel Energy, LLC, dated as of June 1, 2007.

 

4.   Letter of Amendment between Bowie Resources,
LLC and Tennessee Valley Authority, dated as of June 1, 2007.

 

5.   First Amendment to Letter Agreement between
Bowie Resources, LLC and W2 Holdings LLC, dated as of June 1, 2007.

 

6.   First Amendment to Site Lease and Services
Agreement (with Easements) between Bowie Resources, LLC and W2 Holdings LLC,
dated as of June 1, 2007.

 

7.   First Amendment to Feedstock Supply
Agreement between Bowie Resources, LLC and W2 Holdings LLC, dated as of June 1,
2007.

 

8.   Security Deposit, Disbursement and Control
Agreement by and among W2 Holdings LLC, Bowie Resources, LLC and Branch Banking
and Trust Company, dated as of June 1, 2007.

 

 

 

 

[Exhibit
A to Consent, Limited Waiver
and Amendment No. 4 To The Credit Agreement]

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