Document:

zurvita_8k-ex1003.htm

    
      

    

    Exhibit 10.3

     

    NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY SUCH SECURITIES.

    

    Series
C Warrant Certificate No. 1

    

    SERIES
C COMMON STOCK PURCHASE WARRANT

    

    To
Purchase 4,000,000 Shares of Common Stock of

     

    ZURVITA
HOLDINGS, INC.

     

                                        Initial
Exercise Date:   January 29, 2010

     

    THIS SERIES C COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies
that, for value received, VICIS CAPITAL MASTER FUND (the “Holder”), is
entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date hereof (the
“Initial Exercise
Date”) and on or prior to the close of business on the
seventh  (7th) anniversary of the Initial Exercise Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Zurvita Holdings, Inc. a
Delaware Corporation (the “Company”), up to
4,000,000 shares (the “Warrant Shares”) of
Common Stock, par value $.0001 per share, of the Company (the “Common
Stock”).  The purchase price of one share of Common Stock under
this Warrant shall be equal to the Exercise Price, as defined in Section
2(b).

     

    Section 1.   Definitions.   Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated January 29, 2010, among the Company and the Holder.

     

    
      
        
        

      

      
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    Section 2.   Exercise.

     

    a)   Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company of a duly executed facsimile copy of the Notice of Exercise form annexed
hereto (or such other office or agency of the Company as it may designate by
notice in writing to the registered Holder at the address of such Holder
appearing on the books of the Company); and, within three (3) Trading Days of
the date said Notice of Exercise is delivered to the Company, the Company shall
have received payment of the aggregate Exercise Price of the shares thereby
purchased by wire transfer or cashier’s check drawn on a United States
bank.  Notwithstanding anything herein to the contrary, the Holder
shall not be required to physically surrender this Warrant to the Company until
the Holder has purchased all of the Warrant Shares available hereunder and the
Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within three (3) Trading Days of
the date the final Notice of Exercise is delivered to the
Company.  Partial exercises of this Warrant resulting in purchases of
a portion of the total number of Warrant Shares available hereunder shall have
the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares
purchased.  The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such
purchases.  The Company shall deliver any objection to any Notice of
Exercise within two (2) Trading Days of receipt of such notice.  THE HOLDER AND ANY ASSIGNEE, BY
ACCEPTANCE OF THIS WARRANT, ACKNOWLEDGE AND AGREE THAT, BY REASON OF THE
PROVISIONS OF THIS PARAGRAPH, FOLLOWING THE PURCHASE OF A PORTION OF THE WARRANT
SHARES HEREUNDER, THE NUMBER OF WARRANT SHARES AVAILABLE FOR PURCHASE HEREUNDER
AT ANY GIVEN TIME MAY BE LESS THAN THE AMOUNT STATED ON THE FACE
HEREOF.

     

    b)   Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $0.25 subject to adjustment hereunder (the “Exercise
Price”).

     

    c)   Exercise
Limitations.

     

    d)   Holder’s
Restrictions.  The Company shall not effect any exercise of
this Warrant, and a  Holder shall not have the right to exercise any
portion of this Warrant, pursuant to Section 2 or
otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, such Holder
(together with such Holder’s Affiliates, and any other person or entity acting
as a group together with such Holder or any of such Holder’s Affiliates), as set
forth on the applicable Notice of Exercise, would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below).  For purposes
of the foregoing sentence, the number of shares of Common Stock beneficially
owned by such Holder and its Affiliates shall include the number of shares of
Common Stock issuable upon exercise of this Warrant with respect to which such
determination is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (A) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by such Holder or any of its
Affiliates and (B) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation,
any other preferred stock or Warrants) subject to a limitation on conversion or
exercise analogous to the limitation contained herein beneficially owned by such
Holder or any of its Affiliates.  Except as set forth in the preceding
sentence, for purposes of this Section 2(c)(i),
beneficial ownership shall be calculated in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder, it being
acknowledged by a Holder that the Company is not representing to such Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act
and such Holder is solely responsible for any schedules required to be filed in
accordance therewith.   To the extent that the limitation
contained in this Section 2(c)(i)
applies, the determination of whether this Warrant 

     

    
      
        
        

      

      
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    is
exercisable (in relation to other securities owned by such Holder together with
any Affiliates) and of which a portion of this Warrant is exercisable shall be
in the sole discretion of a Holder, and the submission of a Notice of Exercise
shall be deemed to be each Holder’s determination of whether this Warrant is
exercisable (in relation to other securities owned by such Holder together with
any Affiliates) and of which portion of this Warrant is exercisable, in each
case subject to such aggregate percentage limitation, and the Company shall have
no obligation to verify or confirm the accuracy of such
determination.   In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated
thereunder.  For purposes of this Section 2(c), in
determining the number of outstanding shares of Common Stock, a Holder may rely
on the number of outstanding shares of Common Stock as reflected in (X) the
Company’s most recent Form 10-Q or Form 10-K, as the case may be, (Y) a more
recent public announcement by the Company or (Z) any other notice by the Company
or the Company’s transfer agent setting forth the number of shares of Common
Stock outstanding.  Upon the written or oral request of a Holder, the
Company shall within two (2) Trading Days confirm orally and in writing to such
Holder the number of shares of Common Stock then outstanding.  In any
case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Warrant, by such Holder or its Affiliates since the date as of
which such number of outstanding shares of Common Stock was
reported.  The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant.  The Beneficial
Ownership Limitation provisions of this Section 2(c)(i) may
be waived by such Holder, at the election of such Holder, upon not less than 61
days’ prior notice to the Company to change the Beneficial Ownership Limitation
to 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon exercise of
this Warrant, and the provisions of this Section 2(c)(i) shall
continue to apply.  Upon such a change by a Holder of the Beneficial
Ownership Limitation from such 4.99% limitation to such 9.99% limitation, the
Beneficial Ownership Limitation may not be further waived by such
Holder.  The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of
this Section
2(c)(i) to correct this paragraph (or any portion hereof) which may be
defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitations contained in this
paragraph shall apply to a successor holder of this Warrant.

     

    
      
        
        

      

      
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    e)   Mechanics of
Exercise.

     

    i.   Authorization of Warrant
Shares.  The Company covenants that all Warrant Shares which
may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant,
be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges created by the Company in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

     

    ii.   Delivery of Certificates
Upon Exercise.  Certificates for Warrant Shares purchased
hereunder shall be transmitted by the transfer agent of the Company to the
Holder by crediting the account of the Holder’s prime broker with the Depository
Trust Company through its Deposit/Withdrawal at Custodian (“DWAC”) system if the
Company is a participant in such system, and otherwise by delivery to the
address specified by the Holder in the Notice of Exercise, within five (5)
Trading Days from the delivery to the Company of the Notice of Exercise form,
surrender of this Warrant (if required) and payment of the aggregate Exercise
Price as set forth above (“Warrant Share Delivery
Date”).  This Warrant shall be deemed to have been exercised on
the date the Exercise Price is received by the Company.  The Warrant
Shares shall be deemed to have been issued, and Holder or any other person so
designated to be named therein shall be deemed to have become a holder of record
of such shares for all purposes, as of the date the Warrant has been exercised
by payment to the Company of the Exercise Price (or by cashless exercise, if
permitted) and all taxes required to be paid by the Holder, if any, pursuant to
Section
2(d)(vii) prior to the issuance of such shares, have been
paid.

     

    iii.   Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    iv.   Rescission
Rights.  If the Company fails to cause its transfer agent to
transmit to the Holder a certificate or certificates representing the Warrant
Shares pursuant to Section 2(d)(ii)
above by the Warrant Share Delivery Date, then the Holder will have the right to
rescind such exercise.

     

    
      
        
        

      

      
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    v.   Obligation
Absolute;  Damages. The Corporation’s obligations to issue and
deliver the certificates representing the Warrant Shares upon exercise of the
Warrant in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the same, any
waiver or consent with respect to any provision hereof, the recovery of any
judgment against any Person or any action to enforce the same, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder or any other Person of any obligation to the Corporation or
any violation or alleged violation of law by the Holder or any other person, and
irrespective of any other circumstance which might otherwise limit such
obligation of the Corporation to the Holder in connection with the issuance of
such certificates representing the Warrant Shares.  The Corporation
shall issue the certificates representing the Warrant Shares or, if applicable,
cash, upon a properly noticed exercise. If the Corporation fails to deliver to
the Holder such certificate or certificates pursuant to Section 2(d) within
five (5) Trading Days of the Warrant Share Delivery Date applicable to such
exercise, the Corporation shall pay to such Holder, in cash, as liquidated
damages and not as a penalty, for each $1,000 of VWAP of the Common Stock, $10
per Trading Day (increasing to $20 per Trading Day after ten (10) Trading Days
after the Warrant Share Delivery Date) for each Trading Day after the Warrant
Share Delivery Date until such certificates are delivered.

     

    vi.   No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall at its election, either pay a cash adjustment
in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or round up to the next whole share.

     

    vii.   Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder or other incidental expense in respect of the
issuance of such certificate, and such certificates shall be issued in the name
of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder;
the assignment shall be subject to Section 4 below, and
the Company may require, as a condition thereto, the payment of a sum sufficient
to reimburse it for any transfer tax incidental thereto.

     

    viii.   Closing of
Books.  The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     

    
      
        
        

      

      
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    f)   Cashless Exercise if no
Registration Statement.  If at any time after six months from
the date of issuance of this Warrant there is no effective Registration
Statement registering, or no current prospectus available for, the resale of the
Warrant Shares by the Holder, then this Warrant may also be exercised at such
time by means of a “cashless exercise” in which the Holder shall be entitled to
receive a certificate for the number of Warrant Shares equal to the quotient
obtained by dividing [(A-B) (X)] by (A), where:

     

    
      
        	
              	
                (A)  
      =

              	
                the
      VWAP on the Trading Day immediately preceding the date of such
      election;

              

      

    

    

    
      
        	
              	
                (B)  
      =

              	
                the
      Exercise Price of this Warrant, as adjusted;
and

              

      

    

    

    
      
        	
              	
                (X)  
      =

              	
                the
      number of Warrant Shares issuable upon exercise of this Warrant in
      accordance with the terms of this Warrant by means of a cash exercise
      rather than a cashless
exercise.

              

      

    

    

    Section 3.   Certain
Adjustments.

     

    a)   Stock Dividends and
Splits.  If the Company, at any time while this Warrant is
outstanding: (i) pays a stock dividend or otherwise makes a distribution or
distributions on shares of its Common Stock or any other equity or equity
equivalent securities payable in shares of Common Stock (which, for avoidance of
doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock
into a larger number of shares, (iii) combines (including by way of reverse
stock split) outstanding shares of Common Stock into a smaller number of shares,
or (iv) issues by reclassification of shares of the Common Stock any shares of
capital stock of the Company, then in each case the Exercise Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any) outstanding immediately before
such event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event and the number of shares issuable
upon exercise of this Warrant shall be proportionately adjusted.  Any
adjustment made pursuant to this Section 3(a) shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

     

    b)   Subsequent Equity
Sales. If the Company or any Subsidiary thereof, as applicable, at any
time while this Warrant is outstanding, sells, grants or otherwise issues (or
announces any sale, grant or other issuance related to the foregoing) any Common
Stock or Common Stock Equivalents entitling any Person to acquire shares of
Common Stock, at an effective price per share less than the then Exercise Price
(such lower price, the “Base Share Price” and
such issuances collectively, a “Dilutive Issuance”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share which is less than the Exercise Price, such issuance shall be
deemed to have occurred for less than the Exercise Price on such date of the
Dilutive Issuance), then the Exercise Price shall be reduced and only reduced to
equal the Base Share Price.  Such adjustment to the Exercise Price
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    made
whenever such Common Stock or Common Stock Equivalents are issued. As a point of
clarification, upon a Dilutive Issuance, the number of Warrant Shares issuable
hereunder shall not be increased.  Notwithstanding the foregoing, no
adjustments shall be made, paid or issued under this Section 3(b) in
respect of an Exempt Issuance or issuances subject to Section 3(a)
above.  The Company shall notify the Holder in writing, no later than
the third (3rd)
Trading Day following the issuance of any Common Stock or Common Stock
Equivalents subject to this section, indicating therein the applicable issuance
price, or applicable reset price, exchange price, conversion price and other
pricing terms (such notice the “Dilutive Issuance
Notice”).  For purposes of clarification, whether or not the
Company provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon
the occurrence of any Dilutive Issuance, after the date of such Dilutive
Issuance, the Holder is entitled to receive a number of Warrant Shares based
upon the Base Share Price regardless of whether the Holder accurately refers to
the Base Share Price in the Notice of Exercise.

     

    c)   Subsequent Rights
Offerings.  If the Company, at any time while this Warrant is
outstanding, shall issue rights, options or warrants to all holders of Common
Stock (and not to Holders) entitling them to subscribe for or purchase shares of
Common Stock at a price per share less than the VWAP as of the record date
mentioned below, then the Exercise Price shall be multiplied by a fraction, of
which the denominator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights or warrants plus the number
of additional shares of Common Stock offered for subscription or purchase, and
of which the numerator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights, options or warrants plus the
number of shares which the aggregate offering price of the total number of
shares so offered (assuming receipt by the Company in full of all consideration
payable upon exercise of such rights, options or warrants) would purchase at
such VWAP.  Such adjustment shall be made whenever such rights,
options or warrants are issued, and shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
rights, options or warrants.

     

    d)   Pro Rata
Distributions.  If the Company, at any time prior to the
Termination Date, shall distribute to all holders of Common Stock (and not to
Holders of the Warrants) evidences of its indebtedness or assets (including cash
and cash dividends) or rights or warrants to subscribe for or purchase any
security other than the Common Stock (which shall be subject to Section 3(c)), then
in each such case the Exercise Price shall be adjusted by multiplying the
Exercise Price in effect immediately prior to the record date fixed for
determination of stockholders entitled to receive such distribution by a
fraction of which the denominator shall be the VWAP determined as of the record
date mentioned above, and of which the numerator shall be such VWAP as of such
record date less the then per share fair market value at such record date of the
portion of such assets or evidence of indebtedness so distributed applicable to
one outstanding share of the Common Stock as determined by the Board of
Directors in good faith.  In either case the adjustments shall be
described in a statement provided to the Holder of the portion of assets or
evidences of indebtedness so distributed or such subscription rights applicable
to one share of Common Stock.  Such adjustment shall be made whenever
any such distribution is made and shall become effective immediately after the
record date mentioned above.

     

    
      
        
        

      

      
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    e)   Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company effects any merger or consolidation of the Company with or into another
Person, (ii) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (iii) any tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (iv) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (in any such case, a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder, (a) upon exercise of this
Warrant, the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any
additional consideration (the “Alternate
Consideration”) receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) if the Company is acquired in an all cash
transaction, cash equal to the value of this Warrant as determined in accordance
with the Black-Scholes option pricing formula.  For purposes of any
such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common Stock in such
Fundamental Transaction, and the Company shall apportion the Exercise Price
among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration.  If
holders of Common Stock are given any choice as to the securities, cash or
property to be received in a Fundamental Transaction, then the Holder shall be
given the same choice as to the Alternate Consideration it receives upon any
exercise of this Warrant following such Fundamental Transaction.  To
the extent necessary to effectuate the foregoing provisions, any successor to
the Company or surviving entity in such Fundamental Transaction shall issue to
the Holder a new warrant consistent with the foregoing provisions and evidencing
the Holder’s right to exercise such warrant into Alternate Consideration. The
terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply
with the provisions of this Section 3(e) and
insuring that this Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental
Transaction.

     

    f)   Calculations. All
calculations under this Section 3 shall be
made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number
of shares of Common Stock deemed to be issued and outstanding as of a given date
shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding.

     

    
      
        
        

      

      
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    g)   Voluntary Adjustment By
Company. The Company may at any time during the term of this Warrant
reduce the then current Exercise Price to any amount and for any period of time
deemed appropriate by the Board of Directors of the Company.

     

    h)   Notice to
Holders.

     

    i.   Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section
3, the Company shall promptly mail to each Holder a notice setting forth
the Exercise Price after such adjustment and setting forth a brief statement of
the facts requiring such adjustment.

     

    ii.   Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock; (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the
Company; then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least ten (10) calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (X) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (Y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  The Holder is
entitled to exercise this Warrant during the ten (10) day period commencing on
the date of such notice to the effective date of the event triggering such
notice.

     

    
      
        
        

      

      
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    Section 4.   Transfer of
Warrant.

     

    a)   Transferability.  Subject
to compliance with any applicable securities laws and the conditions set forth
in Section 4(d)
hereof, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees and in the denomination or denominations specified in such
instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled.  A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

     

    b)   New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section
4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

     

    c)   Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

     

    d)   Transfer
Restrictions. If, at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant shall
not be registered pursuant to an effective registration statement under the
Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer (i) that the
Holder or transferee of this Warrant, as the case may be, furnish to the Company
a written opinion of counsel (which opinion shall be in form, substance and
scope customary for opinions of counsel in comparable transactions) to the
effect that such transfer may be made without registration under the Securities
Act and under applicable state securities or blue sky laws, (ii) that the holder
or transferee execute and deliver to the Company an investment letter in form
and substance acceptable to the Company and (iii) that the transferee be an
“accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or
(a)(8) promulgated under the Securities Act or a “qualified institutional buyer”
as defined in Rule 144A(a) under the Securities Act.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Section 5.   Miscellaneous.

     

    a)   No Rights as Shareholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof as set forth in Section
2.

     

    b)   Loss, Theft, Destruction or
Mutilation of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant, shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

     

    c)   Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    d)   Authorized
Shares.  The Company covenants that, during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this
Warrant.  The Company further covenants that its issuance of this
Warrant shall constitute full authority to its officers who are charged with the
duty of executing stock certificates to execute and issue the necessary
certificates for the Warrant Shares upon the exercise of the purchase rights
under this Warrant.  The Company will take all such reasonable action
as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of the Trading Market upon which the Common Stock may be
listed.

     

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)   Jurisdiction. All
questions concerning the construction, validity, enforcement, venue,
jurisdiction, and interpretation of this Warrant shall be determined in
accordance with the provisions of the Purchase Agreement.

     

    f)   Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    g)   Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or remedies,
notwithstanding the fact that all rights hereunder terminate on the Termination
Date.  If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder,
the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

     

    h)   Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    i)   Limitation of
Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

     

    j)   Remedies.  Holder,
in addition to being entitled to exercise all rights granted by law, including
recovery of damages, will be entitled to specific performance of its rights
under this Warrant.  The Company agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it
of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be
adequate.

     

    k)   Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors of the Company and the successors and
permitted assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by any such Holder or holder of Warrant
Shares.

     

    l)   Amendment.  This
Warrant may be modified or amended or the provisions hereof waived only with the
written consent of the Company and the Holder.

     

    m)   Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    n)   Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

     

    

    ********************

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
 

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first indicated
above.

     

    

    
      
        	 	ZURVITA
      HOLDINGS, INC.	 
	 	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Jay
      Shafer	 
	 	 	Name:
      Jay Shafer	 
	 	 	Title:  Co-Chief
      Executive Officer	 
	 	 	 	 

      

    

     

    

     

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    

    NOTICE
OF EXERCISE

    

    TO:  ZURVITA HOLDINGS, INC.
(THE “COMPANY”)

     

    (1)    The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.

     

    (2)   Payment
will be made in lawful money of the United States.

     

    (3)   Please
issue a certificate or certificates representing said Warrant Shares in the name
of the undersigned or in such other name as is specified below:

     

    _______________________________

     

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

     

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4)    Accredited
Investor.  The undersigned certifies that it is an “accredited
investor” as defined in Regulation D promulgated under the Securities Act of
1933, as amended.

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing Entity:
______________________________________________________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity:
________________________________________________________________________________________

    Name of
Authorized Signatory:
__________________________________________________________________________________________________________

    Title of
Authorized Signatory:
___________________________________________________________________________________________________________

    Date:
______________________________________________________________________________________________________________________________

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    

    

    FOR VALUE
RECEIVED, _________ shares of the foregoing Warrant and all rights evidenced
thereby are hereby assigned to _________________________whose address is
________________________________________________________.

    

    Dated:  ______________,
_______

    

    

    Holder’s
Signature:  _____________________________

    

    Holder’s
Address:       
_____________________________

     

    _____________________________

     

     

     

    

    

    Signature
Guaranteed:  ___________________________________________

     

     

    NOTE:  The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.

     

     

    
      
        
        

      

      
        15jrcc_8k-ex1001.htm

    
      

    

    Exhibit 10.1

     

     

    $65,000,000

     

    AMENDED
AND RESTATED REVOLVING CREDIT AGREEMENT

     

    by and
among

     

    JAMES RIVER COAL
COMPANY,

    JAMES RIVER COAL SERVICE
COMPANY,

    LEECO, INC,

    TRIAD MINING,
INC.,

    TRIAD UNDERGROUND MINING,
LLC,

    BLEDSOE COAL
CORPORATION,

    JOHNS CREEK ELKHORN COAL
CORPORATION,

    BELL COUNTY COAL
CORPORATION,

    JAMES RIVER COAL SALES,
INC.,

    BLEDSOE COAL LEASING
COMPANY,

    BLUE DIAMOND COAL
COMPANY,

    and MCCOY ELKHORN COAL
CORPORATION,

    as
Borrowers,

     

    the other
Credit Parties hereto from time to time,

    as
Guarantors,

     

    the
LENDERS party hereto from time to time,

     

    and

     

    GENERAL ELECTRIC CAPITAL
CORPORATION,

    as
Administrative Agent and Collateral Agent

    

    

    GE
CAPITAL MARKETS, INC.

    

    and

    

    UBS SECURITIES
LLC,

    as Joint
Lead Arrangers and Joint Bookrunners

     

     

    UBS SECURITIES
LLC,

    as
Documentation Agent

     

    Dated as
of January 28, 2010

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE OF
CONTENTS

     

    
      
        
          
            	 	 	Page
	 	 	 
	ARTICLE I	DEFINITIONS; CERTAIN
      TERMS	1
	SECTION
    1.01	Definitions	1
	SECTION
    1.02	Terms
      Generally	41
	SECTION
    1.03	Accounting and Other
      Terms	41
	SECTION
    1.04	Time
      References	41
	 	 	 
	ARTICLE II	THE
      FACILITY   	41
	SECTION
      2.01 	Revolving
      Advances	41
	SECTION
      2.02 	Use of
      Proceeds 	44
	SECTION
    2.03	Protective
      Advances 	44
	SECTION
      2.04 	Promise to
      Pay 	45
	SECTION
      2.05 	Notes 	45
	SECTION
      2.06 	Authorized Officers
      and Administrative Agent 	45
	SECTION
      2.07 	Joint and Several
      Liability of the Credit Parties 	46
	SECTION
      2.08 	Loan Account and
      Accounting 	47
	SECTION
      2.09 	Application of
      Payments and Proceeds 	48
	 	 	 
	ARTICLE
      III 	PAYMENTS AND OTHER
      COMPENSATION   	49
	SECTION
    3.01	Voluntary
      Prepayments/Reductions of Commitments	 49
	SECTION
    3.02	Mandatory
      Prepayments	 50
	SECTION
    3.03	Payments	 51
	SECTION
    3.04	Taxes	 52
	 	 	 
	ARTICLE IV	
                    INTEREST

                  	 55
	SECTION
    4.01	Interest on the
      Loans and Other Obligations   	 55
	SECTION
    4.02	Break
      Funding Payments   	 57
	SECTION
    4.03	Change in Law;
      Illegality	 57
	SECTION
    4.04	Fees	 58
	 	 	 
	ARTICLE V 	CONDITIONS TO
      LOANS  	 59
	SECTION
    5.01	Conditions Precedent
      to the Funding on the Closing Date	 59
	SECTION
    5.02	Conditions Precedent
      to Revolving Advances and Issuances of Letters of Credit	 64

          

           

          
            
              
              

            

            
              ii

              
                

              

            

            
              
              

            

          

           

           

          
            
              	ARTICLE VI	REPRESENTATIONS AND
      WARRANTIES	 65
	SECTION
    6.01	Representations and
      Warranties   	 65
	 	 	 
	ARTICLE VII 	REPORTING
      COVENANTS   	 75
	SECTION
    7.01	Financial
      Statements	 76
	SECTION
    7.02	Other Financial
      Information	 78
	SECTION
    7.03	Defaults, Events of
      Default	 78
	SECTION
      7.04 	Lawsuits 
      	79
	SECTION
    7.05	Insurance 
      	79
	SECTION
      7.06 	Environmental
      Notices   	 80
	SECTION
      7.07 	Labor Matters 
      	 80
	SECTION
      7.08 	Unrestricted
      Cash  	80
	SECTION
      7.09 	KRP Collateral
      Report   	80
	SECTION
      7.10 	Defaults Under
      Certain Leases   	 80
	SECTION
      7.11 	Other
      Information   	 80
	 	 	 
	ARTICLE VIII	AFFIRMATIVE
      COVENANTS  	 81
	SECTION
      8.01 	Compliance with Laws
      and Contractual Obligations  	 81
	SECTION
    8.02	Payment of Taxes and
      Claims	81
	SECTION
      8.03 	Conduct of Business
      and Preservation of Corporate Existence	 81
	SECTION
      8.04 	Inspection of
      Property; Books and Records; Discussions	 82
	SECTION
      8.05 	Maintenance of
      Properties	 83
	SECTION
      8.06 	Transactions with
      Affiliates	 83
	SECTION
      8.07 	Further
      Assurances 	83
	SECTION
      8.08 	Additional Security;
      Additional Guaranties; Further Assurances	 83
	SECTION
      8.09 	Powers; Conduct of
      Business	86
	SECTION
      8.10 	Use of
      Proceeds 	 86
	SECTION
      8.11 	Obtaining of
      Permits, Etc  	 86
	SECTION
      8.12 	Environmental 
      	86
	SECTION
      8.13 	Mining   	 86
	SECTION
      8.14 	Maintenance of
      Insurance   	87
	SECTION
      8.15 	Condemnation	87
	SECTION
      8.16 	Fiscal
      Year   	 87
	SECTION
      8.17 	Payment of
      Contractual Obligations	 87

            

             

            
              
                
                

              

              
                iii

                
                  

                

              

              
                
                

              

            

             

            
              
                	SECTION
      8.18 	Change in
      Collateral; Collateral Records	 87
	SECTION
      8.19 	Cash
      Management	 87
	SECTION
      8.20 	Location of
      Equipment 	 88
	SECTION
      8.21 	Post-Closing
      Matters 	 88
	SECTION
      8.22 	Inventory 	88
	SECTION
      8.23 	Pledged Security
      Interests   	 88
	 	 	 
	ARTICLE IX	NEGATIVE
      COVENANTS  	 88
	SECTION
      9.01 	Liens 
    	 88
	SECTION
    9.02	Indebtedness;
      Voluntary Prepayments 	 89
	SECTION
    9.03	Consolidation,
      Merger, Subsidiaries, Etc 	 89
	SECTION
      9.04 	Asset Dispositions,
      Etc 	 89
	SECTION
    9.05	Limitation on
      Issuance of Equity Interests 	 90
	SECTION
    9.06	Limitations on
      Dividends and Distributions and Other Payment Restrictions Affecting
      Subsidiaries 	 91
	SECTION
    9.07	Investments 	 91
	SECTION
    9.08	Sale and
      Leaseback 	 91
	SECTION
    9.09	Negative
      Pledges 	 92
	SECTION
    9.10	Change in Nature of
      Business 	92
	SECTION
    9.11	Change
      Name 	 92
	SECTION
    9.12	Modifications of
      Indebtedness, Organizational Documents and Certain Other
      Agreements   	92
	SECTION
    9.13	Federal Reserve
      Regulations 	 93
	SECTION
    9.14	Investment Company
      Act of 1940 	 93
	SECTION
    9.15	Securities Accounts;
      Deposit Accounts 	 93
	SECTION
    9.16	Impairment of
      Security Interests 	 93
	SECTION
    9.17	Restricted
      Payments 	93
	SECTION
    9.18	OFAC; Patriot
      Act   	 93
	 	 	 
	ARTICLE X 	FINANCIAL
      COVENANTS  	 94
	SECTION
    10.01	Minimum Consolidated
      EBITDA  	 94
	SECTION
    10.02	Leverage
    Ratio	 94
	SECTION
    10.03	Capital
      Expenditures	 95
	 	 	 
	ARTICLE XI	EVENTS OF DEFAULT,
      RIGHTS AND REMEDIES	 95
	SECTION
      11.01 	Events of
      Default   	 95

              

               

              
                
                  
                  

                

                
                  iv

                  
                    

                  

                

                
                  
                  

                

              

               

              
                
                  	SECTION
      11.02 	Remedies	 99
	SECTION
      11.03 	Waivers by the
      Credit Parties   	 100
	 	 	 
	ARTICLE XII	GUARANTY OF
      OBLIGATIONS OF BORROWER  	 100
	SECTION
    12.01	Guaranty	 100
	SECTION
      12.02 	Nature of
      Liability	 100
	SECTION
      12.03 	Independent
      Obligation	 101
	SECTION
      12.04 	Demand by the
      Administrative Agent or the Lenders	 102
	SECTION
      12.05 	Enforcement of
      Guaranty   	 102
	SECTION
      12.06 	Waiver 	 102
	SECTION
      12.07 	Benefit of
      Guaranty 	 103
	SECTION
      12.08 	Modification of
      Guaranteed Obligations, Etc 	 103
	SECTION
      12.09 	Reinstatement 	104
	SECTION
      12.10 	Waiver of
      Subrogation, Etc   	 104
	SECTION
      12.11 	Election of
      Remedies 	 105
	SECTION
      12.12 	Further
      Assurances 	 105
	SECTION
      12.13 	Payments Free and
      Clear of Taxes 	 105
	SECTION
      12.14 	Limitation on Amount
      Guarantied; Contribution by Guarantors   	 106
	 	 	 
	ARTICLE XII 	THE
      AGENTS   	 107
	SECTION
      13.01 	Appointment Powers
      and Immunities; Delegation of Duties; Liability of
      Agents   	 107
	SECTION
      13.02 	Reliance by
      Agents	 108
	SECTION
      13.03 	Defaults	 108
	SECTION
      13.04 	Rights as a
      Lender 	 109
	SECTION
      13.05 	Costs and Expenses;
      Indemnification 	 109
	SECTION
      13.06 	Non-Reliance on
      Agents and Other Lenders 	 110
	SECTION
      13.07 	Failure to
      Act   	 110
	SECTION
      13.08 	Resignation of
      Agent	 111
	SECTION
      13.09 	Collateral
      Sub-Agents	 112
	SECTION
      13.10 	Communications by
      the Borrowers	 112
	SECTION
      13.11 	Collateral
      Matters	 112
	SECTION
      13.12 	Restrictions on
      Actions by the Agents and the Lenders; Sharing Payments	 113

                

                 

                
                  
                    
                    

                  

                  
                    v

                    
                      

                    

                  

                  
                    
                    

                  

                

                 

                
                  	SECTION
      13.13 	Several Obligations;
      No Liability	 113
	SECTION
      13.14 	No
      Other Duties, Etc 	 114
	 	 	 
	ARTICLE XIII	MISCELLANEOUS 
      	 114
	SECTION
      14.01 	Notices,
      Etc 	 114
	SECTION
    14.02	Amendments,
      Etc	 115
	SECTION
      14.03 	Non-Consenting
      Lenders	 116
	SECTION
      14.04 	No
      Waiver; Remedies, Etc	 118
	SECTION
      14.05 	Expenses; Taxes;
      Attorneys’ Fees	 118
	SECTION
      14.06 	
                          Right
      of Set-Off, Sharing of Payments, Etc   

                        	 120
	SECTION
      14.07 	Severability 	 121
	SECTION
      14.08 	Replacement
      of Lenders 	 121
	SECTION
      14.09 	
                          Complete
      Agreement; Sale of Interest 

                        	 121
	SECTION
      14.10 	Assignment;
      Register 	 122
	SECTION
      14.11 	Administrative
      Borrower 	 124
	SECTION
      14.12 	
                          Counterparts

                        	 124
	SECTION
      14.13 	GOVERNING
      LAW 	 125
	SECTION
      14.14 	CONSENT TO
      JURISDICTION, SERVICE OF PROCESS AND VENUE 	 125
	SECTION
      14.15 	WAIVER OF JURY
      TRIAL, ETC 	 125
	SECTION
      14.16 	Consent 	 126
	SECTION
      14.17 	
                          Interpretation 

                        	 126
	SECTION
      14.18 	Reinstatement;
      Certain Payments   	 126
	SECTION
      14.19 	Indemnification 
      	 126
	SECTION
      14.20 	Records 
    	 127
	SECTION
      14.21 	Binding Effect 
      	 128
	SECTION
      14.22 	
                          Confidentiality 

                        	 128
	SECTION
      14.23 	Lender
      Advertising  	 128
	SECTION
    14.24	Press Releases 
      	 129
	SECTION
      14.25 	Common
      Enterprise 	 129
	SECTION
      14.26 	USA Patriot
      Act 	 129
	SECTION
      14.27 	Amendment and
      Restatement of Existing Credit Agreement	 129

                

              

            

          

        

         

      

    

     

    
      
        
        

      

      
        vi

        
          

        

      

      
        
        

      

    

     

    SCHEDULES

    

    
      	
              ·  

            	
              Schedule
      E-1—Existing Debt

            

    

    
      	
              ·  

            	
              Schedule
      M-1—Material Contracts

            

    

    
      	
              ·  

            	
              Schedule
      M-2—Mortgaged Property

            

    

    
    

    
      	
              ·  

            	
              Schedule
      P-2—Permitted Indebtedness

            

    

    
      	
              ·  

            	
              Schedule
      2.01(a)—Lender Commitments

            

    

    
    

    
      	
              ·  

            	
              Schedule
      6.01(e)—Capitalization

            

    

    
      	
              ·  

            	
              Schedule
      6.01(f)—Litigation

            

    

    
      	
              ·  

            	
              Schedule
      6.01(i)—Employee Benefit Plans

            

    

    
      	
              ·  

            	
              Schedule
      6.01(n)(i)—Real Estate Assets

            

    

    
      	
              ·  

            	
              Schedule
      6.01(n)(ii)—Mines

            

    

    
      	
              ·  

            	
              Schedule
      6.01(n)(iii)—Leases

            

    

    (a) Mining Leases,

    (b) Prep Plant Leases, and

    (c) All Other Leases

    
      	
              ·  

            	
              Schedule
      6.01(p) Environmental Matters

            

    

    
      	
              ·  

            	
              Schedule
      6.01(r)—Coal Supply Agreements

            

    

    
    

    
    

    
      	
              ·  

            	
              Schedule
      6.01(w)—Intellectual Property

            

    

    
    

    
      	
              ·  

            	
              Schedule
      6.01(bb)—Commercial Tort Claims

            

    

    
      	
              ·  

            	
              Schedule
      8.21—Post Closing Matters

            

    

    

    EXHIBITS

     

    
      	
              ·  

            	
              Exhibit
      A-1—Deposit Account of Administrative Agent and
  Borrower

            

    

    
      	
              ·  

            	
              Exhibit
      A-2—Form of Assignment and
Acceptance

            

    

    
      	
              ·  

            	
              Exhibit
      B-1—Form of Borrowing Request

            

    

    
      	
              ·  

            	
              Exhibit
      B-2—Form of Borrowing Base
Certificate

            

    

    
      	
              ·  

            	
              Exhibit
      C-1—Form of Collateral Access
Agreement

            

    

    
      	
              ·  

            	
              Exhibit
      C-2—Form of Compliance Certificate

            

    

    
      	
              ·  

            	
              Exhibit
      N-1—Form of Note

            

    

    
      	
              ·  

            	
              Exhibit
      N-2—Form of Notice of
Conversion/Continuation

            

    

    
      	
              ·  

            	
              Exhibit
      O-1—Form of Officer’s Certificate (Section
  7.01(d))

            

    

    
      	
              ·  

            	
              Exhibit
      O-2—Form of Officer’s Certificate (Section
  5.01(p)(ii))

            

    

     

    
      
        
        

      

      
        vii

        
          

        

      

      
        
        

      

    

    
 ANNEXES

    
      	
              ·  

            	
              Annex
      A—Letters of Credit

            

    

    
      	
              ·  

            	
              Annex
      B—Collateral Reports

            

    

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        viii

        
          

        

      

      
        
        

      

    

     

    AMENDED
AND RESTATED REVOLVING CREDIT AGREEMENT

     

     

    This
AMENDED AND RESTATED REVOLVING
CREDIT AGREEMENT, dated as of January 28, 2010 (as it may be amended,
restated, modified, supplemented or extended from time to time, including all
exhibits and schedules thereto, or otherwise modified, the “Agreement”), by and
among JAMES RIVER COAL
COMPANY, a corporation organized under the laws of Virginia (“JRCC”), and certain
of JRCC’s Subsidiaries identified on the title and signature pages hereof, as
borrowers (such Subsidiaries, together with JRCC, are referred to hereinafter
each individually as a “Borrower”, and
collectively, jointly and severally, as the “Borrowers”), and the
other credit parties hereto from time to time, as Guarantors (together, the
Borrowers and Guarantors, the “Credit Parties”), the
lenders party hereto from time to time (the “Lenders”), and GENERAL ELECTRIC CAPITAL
CORPORATION (“GE Capital”), a
corporation formed under the laws of Delaware, as administrative agent for the
Lenders (in such capacity, together with its successors and assigns, if any, the
“Administrative
Agent”) and as collateral agent for the Lenders (in such capacity, the
“Collateral
Agent”).

     

    RECITALS

     

    WHEREAS, the Borrowers, the
other Credit Parties, the various financial institutions party thereto as
lenders and GE Capital, as administrative agent and collateral agent, are
parties to a Revolving Credit Agreement, dated as of February 26, 2007 (as
amended and in effect immediately prior to giving effect to this Agreement, the
“Existing Credit
Agreement”).

    

    WHEREAS, the parties hereto
have agreed to amend and restate, in its entirety, the Existing Credit Agreement
pursuant to this Agreement, to make available to the Borrowers Loans (as defined
below), on the terms and conditions set forth herein, to, among other things,
refinance certain existing debt and letters of credit, to fund transaction
costs, working capital requirements and other general corporate purposes of the
Borrowers.

     

    NOW THEREFORE, in
consideration of the premises and the covenants and agreements contained herein
and other good and valuable consideration the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as
follows:

     

    ARTICLE
I

    DEFINITIONS;
CERTAIN TERMS

     

    SECTION
1.01 Definitions.  As
used in this Agreement, the following terms shall have the respective meanings
indicated below, such meanings to be applicable equally to both the singular and
plural forms of such terms:

     

    “2007 Financial
Statements” means the audited consolidated balance sheet of the JRCC for
the Fiscal Year ended December 31, 2007 and the related consolidated
statement of operations, shareholders’ equity and cash flows for the Fiscal
Year then ended, together with management’s discussion and analysis and any
management letters submitted by the auditors for JRCC.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “2008 Financial
Statements” means the unaudited consolidated balance sheet of JRCC for
the Fiscal Year ended December 31, 2008 prepared on a basis consistent with and
in accordance with GAAP, together with monthly unaudited financials for any
Fiscal Month ended at least 30 days prior to the Closing Date.

     

    “Account” means those
“accounts” as
that term is defined in the UCC.

     

    “Account Debtor” means
an “account
debtor” as that term is defined in the UCC.

     

    “Action” has the
meaning ascribed to such term in 
SECTION
14.16.

     

    “Administrative Agent”
has the meaning ascribed to such term in the introductory paragraph
hereto.

     

    “Administrative Agent’s
Account” means the account identified on Exhibit A-1 and
such other Deposit Account as the Administrative Agent may from time to time
specify in writing to the Administrative Borrower and the Lenders.

     

    “Administrative Agent’s
Office” means the office of the Administrative Agent located at 10
Riverview Drive, Danbury, Connecticut  06810 or such other office as
may be designated pursuant to the provisions of 
SECTION
14.01.

     

    “Administrative
Borrower” has the meaning ascribed to such term in

SECTION
14.11.

     

    “Affiliate” means, as
to any Person, any other Person which, directly or indirectly, is in control of,
is controlled by, or is under common control with, such Person.  A
Person shall be deemed to control another Person if the controlling Person
possesses, directly or indirectly, the power to direct or cause the direction of
the management and policies of the other Person, whether through the ownership
of voting securities, by contract or otherwise.  Without limitation,
any director, executive officer or beneficial owner of ten percent (10%) or more
of the Equity Interests of a Person shall for the purposes of this Agreement, be
deemed to be an Affiliate of the other Person.  Notwithstanding the
foregoing, none of the Administrative Agent, the Collateral Agent, any Lender or
any L/C Issuer shall be deemed an “Affiliate” of any Credit Party or of any
Subsidiary of any Credit Party solely by reason of the provisions of the Loan
Documents.

     

    “Agent-Related
Persons” means each of the Agents and its Affiliates, and the officers,
directors, employees, counsel, agents, and attorneys-in-fact of such Agent and
its Affiliates.

     

    “Agents” means,
collectively, the Administrative Agent and the Collateral Agent.

     

    “Agents Fee Letter”
means the amended and restated fee letter, dated as of the date hereof, among
the Administrative Borrower. and GE Capital.

     

    “Aggregate Excess Funding
Amount” has the meaning set forth in paragraph (f) of
Annex
A.

     

    “Aggregate Revolver
Exposure” means the sum of (a) the outstanding Revolving Advances
under this Agreement and (b) the aggregate Letter of Credit Usage under
this Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Agreement” means this
Revolving Credit Agreement, together with all Exhibits and Schedules hereto, as
such agreement may be amended, supplemented or otherwise modified from time to
time.

     

    “Applicable Law”
means, in respect of any Person, all provisions of constitutions, laws,
statutes, rules, regulations, treaties, directives, guidelines and orders of
Governmental Authorities applicable to such Person, including zoning ordinances,
all Environmental Laws, and all orders, decisions, judgments and decrees of all
courts and arbitrators in proceedings or actions to which the Person in question
is a party or by which it is bound.

     

    “Applicable Margin”
means, three percent (3.00%) in the case of Base Rate Loans and four percent
(4.00%) in the case of LIBOR Rate Loans.

     

    “Approved Fund” means
any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender, or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

     

    “Asset Disposition”
has the meaning ascribed to such term in 
SECTION
9.04.

     

    “Assignment and
Acceptance” means an Assignment and Acceptance substantially in the form
of Exhibit A-2
attached hereto and made a part hereof (with blanks appropriately completed)
delivered to the Administrative Agent in connection with an assignment of a
Lender’s interest under this Agreement in accordance with

SECTION
14.10(b).

     

    “Authorized Officer”
means, with respect to any Credit Party, the chief executive officer, chief
administrative officer, chief financial officer, vice president of financial
compliance and reporting, treasurer, controller or chief accounting officer or
other officer with similar responsibility designated by the Board of Directors
or similar governing body of the Credit Party.

     

    “Availability” means
at any time (a) the lesser of (i) the Maximum Revolver Amount minus the Indenture
Reserve and (ii) the Borrowing Base, minus
(b) Reserves (other than Reserves deducted in the calculation of the
Borrowing Base), minus (c) the
Aggregate Revolver Exposure at such time relating to extensions of credit
made or to be made to or for the account of any Credit Party under
this Agreement.

     

    “Availability Period”
means the period from the Closing Date to the Maturity Date.

     

    “Backstop Letter of
Credit” has the meaning ascribed to such term in clause (ii) of paragraph (h) of
Annex
A.

     

    “Bankruptcy Code”
means Title 11 of the United States Code (11 U.S.C. §§ 101 et seq.), as amended
from time to time, and any successor statute.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Base Rate” means, for
any day, a rate per annum equal to the highest of (a) the rate last quoted by
The Wall Street
Journal as the “Prime Rate” in the United States or, if The Wall Street
Journal ceases to quote such rate, the highest per annum interest rate
published by the Federal Reserve Board in Federal Reserve Statistical Release
H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such
rate is no longer quoted therein, any similar rate quoted therein (as determined
by the Administrative Agent) or any similar release by the Federal Reserve Board
(as determined by Agent), (b) the sum of 3% per annum and the Federal Funds
Rate, and (c) the sum of (x) LIBOR calculated for each such day based on a LIBOR
Period of three months determined two (2) Business Days prior to such day, plus (y) the excess
of the Applicable Margin for LIBOR Rate Loans over the Applicable Margin for
Base Rate Loans, in each instance, as of such day.  Any change in the
Base Rate due to a change in any of the foregoing shall be effective on the
effective date of such change in the Federal Funds Rate or LIBOR for an Interest
Period of three months.

     

    “Base Rate Loans”
means Loans that bear interest at an interest rate based on the Base
Rate.

     

    “Benefit Plan” means
an employee pension benefit plan to which any Borrower has contributed, or has
been obligated to contribute within the last three years, excluding any
Multiemployer Plan, which is subject to Title IV of ERISA or subject to the
minimum funding standards under Section 412 of the Code.

     

    “Black Lung Act” means
together, the Black Lung Benefits Revenue Act of 1977, as amended, and the Black
Lung Benefits Reform Act of 1977, as amended.

     

    “Borrower” and “Borrowers” have the
meaning ascribed to such terms in the introductory paragraph
hereto.

     

    “Borrower Funding
Account” shall mean the account listed for the Borrowers in Exhibit A-1 or
such other Deposit Account as the Administrative Borrower may from time to time
specify in writing to the Administrative Agent.

     

    “Borrowing Base”
means, at any date of determination, an amount equal, at such time, to
(a) the sum of (i) up to eighty-five percent (85%) of the Eligible
Accounts of the Borrowers; plus (ii) the lesser
of (A) up to an additional five percent (5%) of the Eligible Accounts of
the Borrowers and (B) $2,000,000; plus (iii) the
lesser of (A) up to sixty-five percent (65%) of the value of Eligible Inventory
of the Borrowers valued at the lowest of (x) cost (on a first-in, first-out
basis), in the case of all Eligible Inventory, (y) market (defined as the
NYMEX spot price for 12,500 Btu, 1.2% Sulfur coal on a barge in Big Sandy
River), in the case of Eligible Non-Contract Inventory, or (z) Contract Rate, in
the case of Eligible Contract Inventory and (B) $25,000,000; plus (iv) ninety-five
percent (95%) of the aggregate amount of Borrowing Base Cash Collateral; minus
(b) Reserves (other than the Indenture Reserve) from time to time
established by the Administrative Agent in its reasonable credit judgment with
respect to the Borrowers; provided, that for
purposes of the calculation of the Borrowing Base, (i) the cost of the
Inventory shall not include: (A) the portion of the cost of Inventory equal
to the profit earned by any Affiliate on the sale thereof to any Borrower or
(B) write-ups or write-downs in cost with respect to currency exchange
rates, and (ii) notwithstanding anything to the contrary contained herein,
the cost of the Inventory shall be computed in the same manner and consistent
with the most recent appraisal of the Inventory which has been received and
approved by Collateral Agent in its reasonable discretion.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Borrowing Base
Availability” means, at any time, an amount equal to (a) the Borrowing
Base, minus
(b) the sum of (i) Reserves (other than Reserves deducted in the
calculation of the Borrowing Base), plus (ii) the
Aggregate Revolver Exposure at such time relating to extensions of credit
made or to be made to or for the account of any Credit Party under
this Agreement.

     

    “Borrowing Base Cash
Collateral” means, at any time, the aggregate amount of all cash (which
may include any of the proceeds of the issuance of
the Senior Convertible Notes if and to the extent such proceeds were not used to
provide the cash collateral in respect of
the Term Loan Obligations) provided by the Borrowers as additional
security for the Obligations and pledged to, and subject to the control of, the
Collateral Agent, for the benefit of the Agents, the Lenders and the L/C
Issuers, and maintained in a Deposit Account subject to the Borrowing Base Cash
Collateral Agreement.

     

    “Borrowing Base Cash
Collateral Agreement” means a cash collateral agreement, in form and
substance satisfactory to the Collateral Agent, by and among the Collateral
Agent, the Borrowers, and the relevant depository institution or securities
intermediary, as the same may be amended or supplemented from time to time with
the consent of the Collateral Agent.

     

    “Borrowing Base
Certificate” means a certificate by a Senior Officer of
the Administrative Borrower, substantially in the form of Exhibit B-2 (or
another form acceptable to the Administrative Agent) setting forth the
calculation of the Borrowing Base, including a calculation of each
component thereof, all in such detail as shall be reasonably satisfactory to
the Administrative Agent.  All calculations of the Borrowing Base
in connection with the preparation of any Borrowing Base Certificate shall
originally be made by the Administrative Borrower and certified to the
Administrative Agent; provided, that the
Administrative Agent shall have the right to review and adjust, in the exercise
of its reasonable credit judgment, any such calculation (1) to reflect its
reasonable estimate of declines in value of any of the Collateral described
therein, and (2) to the extent that such calculation is not in accordance
with this Agreement.

     

    “Borrowing Request”
means a request and certification in substantially the form attached as Exhibit B-1 hereto,
executed by a Senior Officer of the Administrative Borrower and delivered to the
Administrative Agent from time to time after the Closing Date.

     

    “Business Day” means
any day that is not a Saturday, a Sunday or a day on which commercial banks are
required or permitted to be closed in the State of New York; provided that when used in
connection with a rate determination, borrowing or payment in respect of a LIBOR
Rate Loan, the term “Business Day” shall
also exclude any day on which banks in London, England are not open for dealings
in Dollar deposits in the London interbank market.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Capital Expenditures”
means, with respect to any Person for any period, the sum of the aggregate of
all expenditures by such Person and its Subsidiaries arising during such period
that, in accordance with GAAP, are or should be included in the “property, plant
and equipment” account on its consolidated balance sheet, including all
applicable Capitalized Lease Obligations with respect to “property, plant and
equipment”, paid or payable during such period, plus any other capital
expenditures of such Person and its consolidated Subsidiaries that are set forth
in a consolidated statement of cash flows of such person for such period
prepared in accordance with GAAP, excluding in each case, (a) any such
expenditures made for the repair, replacement or restoration of assets to the
extent paid or reimbursed by any insurance policy or condemnation award to the
extent such expenditures for reinvestment are permitted under the Loan
Documents, and (b) any leasehold improvement expenditures to the extent
paid or reimbursed by the applicable lessor, sublessor or
sublessee.

     

    “Capitalized Lease”
means, with respect to any Person, any lease of real or personal property by
such Person as lessee which is required under GAAP to be capitalized on the
balance sheet of such Person.

     

    “Capitalized Lease
Obligations” means, with respect to any Person, obligations of such
Person and its Subsidiaries as lessee under Capitalized Leases as determined in
accordance with GAAP.

     

    “Cash Collateral” and
“Cash Collateral
Account” have the meanings ascribed to such terms in Annex A.

     

    “Cash Equivalents”
means (a) marketable direct obligations issued or unconditionally
guaranteed by the United States government or issued by an agency thereof and
backed by the full faith and credit of the United States, in each case maturing
within one (1) year after the date of acquisition thereof; (b) marketable
direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one (1) year after the date of acquisition thereof and, at the
time of acquisition, having one of the two highest ratings obtainable from
either S&P or Moody’s (or, if at any time neither S&P nor Moody’s shall
be rating such obligations, then from such other nationally recognized rating
services reasonably acceptable to the Administrative Agent) and not listed in
Credit Watch published by S&P; (c) commercial paper, other than
commercial paper issued by the Borrowers or any of their Subsidiaries, maturing
no more than two hundred seventy (270) days after the date of acquisition
thereof and, at the time of acquisition, having a rating of at least A-1 or P-1,
respectively, from either S&P or Moody’s (or, if at any time neither S&P
nor Moody’s shall be rating such obligations, then the comparable rating from
such other nationally recognized rating services reasonably acceptable to the
Administrative Agent); (d) domestic and Eurodollar certificates of deposit
or time deposits or bankers’ acceptances maturing within one (1) year after the
date of acquisition thereof issued by any commercial bank organized under the
laws of the United States of America or any state thereof or the District of
Columbia or Canada having combined capital and surplus of not less than
$500,000,000 or by any Lender; and (e) shares of money market or mutual
funds that are required to have a net asset value of $1.00 per share with assets
in excess of $250,000,000 and that invest exclusively in assets satisfying the
requirements of clauses (a) through (e) of this definition.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Cash Management
Account” has the meaning ascribed to such term in

SECTION
5.01(v)(i).

     

    “Cash Management
Agreement” has the meaning ascribed to such term in

SECTION
5.01(v)(ii).

     

    “Cash Management Bank”
has the meaning ascribed to such term in 
SECTION
5.01(v)(i).

     

    “Casualty” means any
casualty, loss, damage, destruction or other similar loss with respect to
real or personal property or improvements.

     

    “Change of Control”
means, at any time, (i) that any “person” or “group” (within the
meaning of Sections 13(d) and 14(d) of the Exchange Act) shall own
directly or indirectly, beneficially or of record, Equity Interests
representing more than 50% of either the aggregate ordinary voting power or the
aggregate equity value represented by the issued and outstanding Equity
Interests in JRCC; (ii) JRCC shall cease to beneficially own and
control 100% on a fully diluted basis of the economic and voting interest in the
Equity Interests of its Wholly-Owned Subsidiaries except as otherwise
permitted hereunder; or (iii) the majority of the seats (other than vacant
seats) on the board of directors of JRCC cease to be occupied by Persons
who either (a) were members of the board of directors of JRCC on the
Closing Date, or (b) were nominated for election by the board of directors
of JRCC, a majority of whom were directors on the Closing Date or whose
election or nomination for election was previously approved by a majority of
such directors.

     

    “Closing Date” means
January 28, 2010.

     

    “Coal Act” means the
Coal Industry Retiree Health Benefits Act of 1992, as amended.

     

    “Coal Handling
Facility” means any coal handling facility, including all necessary
electrical, water and plumbing lines and systems necessary to operate such coal
handling facility, such as, but not limited to, all tipples, conveyor belts and
systems, loading and coal washing facilities and railroad tracks and all other
surface or subsurface machinery, equipment, fixtures, goods, inventory,
facilities, supplies and other property of whatsoever kind or nature now or
hereafter located on or under any of the property which are used or useful for
the mining, gathering, extraction, loading, production, treatment, processing,
storage or transportation of coal and other minerals, all coal storage and
transportation facilities, administrative facilities and vehicle parking
facilities related thereto and all leases in respect of the
foregoing.

     

    “Coal Supply
Agreements” means, collectively, those contracts entered into by a
Borrower or any Subsidiary of a Borrower for the sale, purchase, exchange,
processing or handling of coal.

     

    “Code” means the
Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder, in each case as in effect from time to time.  References
to sections of the Code shall be construed also to refer to any successor
sections.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “Collateral” means all
current and future assets, properties and rights of each Credit Party,
including, without limitation, all affiliate indebtedness, all Intellectual
Property, all receivables, all leaseholds, all license and other contract
rights; and all products and proceeds of any of the foregoing, including
insurance policies and proceeds and shall include Mortgaged Property and all
assets defined as “Collateral” in, or otherwise subject to the Lien of, the
Security Agreement or any Security Documents.

     

    “Collateral Access
Agreement” means an agreement in the form set forth in Exhibit
C-1.

     

    “Collateral Agent” has
the meaning ascribed to such term in the introductory paragraph
hereto.

     

    “Collections” means
all cash, checks, notes, instruments, and other items of payment (including
insurance and condemnation proceeds, cash proceeds of sales and other voluntary
or involuntary dispositions of property, rental proceeds, royalties, settlements
and tax refunds).

     

    “Commitment” means,
with respect to any Lender, the obligation of such Lender to make Loans pursuant
to the terms and conditions of this Agreement, and which shall not exceed the
principal amount set forth opposite such Lender’s name on Schedule 2.01(a)
under the heading “Commitment”, and
“Commitments”
means the aggregate principal amount of the Commitments of all the Lenders up to
the Maximum Revolver Amount.

     

    “Compliance
Certificate” has the meaning ascribed to such term in 
SECTION
7.01(d).

     

    “Condemnation” means
any taking by a Governmental Authority of property or assets, or any part
thereof or interest therein, for public or quasi-public use under the power of
eminent domain, by reason of any public improvement or condemnation or in any
other manner.

     

    “Consolidated EBITDA”
means, with respect to any Person for any period, the consolidated Net Income of
such Person for such period plus, without duplication, the sum of the following
amounts of such Person for such period to the extent deducted in the
determination of consolidated Net Income of such Person for such
period:  (a) Net Interest Expense and all fees and charges in
connection with this Agreement, the Term Credit Agreement and the Existing
Credit Agreement, (b) provisions for federal, state, local and foreign income,
value added and similar Taxes, (c) depreciation expense, (d) amortization
expense, (e) non-cash extraordinary, unusual or non-recurring losses (determined
on an after tax basis), (f) fees due and payable to Wachovia Bank, N.A. in
connection with cash management services for deposit accounts maintained at
Wachovia Bank, N.A. in an aggregate amount not to exceed $300,000 in any fiscal
year, and (g) non-cash expenses from the granting of stock options and
restricted stock grants minus, the amount of non-cash extraordinary, unusual or
non-recurring gains (determined on an after tax basis) of such Person for such
period to the extent added in the determination of consolidated Net Income of
such Person for such period.  For the avoidance of doubt, the
calculation of Consolidated EBITDA shall exclude, any non-cash prepaid asset
write-off related to KRP in the amount of $1,800,000 (one million eight hundred
thousand dollars) for the Fiscal Year ending December 31, 2008.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “Consolidated Funded
Indebtedness” means, with respect to any Person at any date of
determination, all Debt for Borrowed Money of such Person, determined on a
consolidated basis in accordance with GAAP, including, in any event, but without
duplication, with respect to the Credit Parties, the outstanding amount of all
Obligations (including any outstanding Letter of Credit hereunder), the
outstanding amount of all “Obligations” under and as defined in the Term Loan
Agreement in effect as of the date hereof and the amount of their Capitalized
Lease Obligations.

     

    “Contingent
Obligation” means, with respect to any Person, any obligation of such
Person guaranteeing or intended to guarantee any Indebtedness of any other
Person in any manner, whether directly or indirectly, including, without
limitation, (a) the direct or indirect guaranty, endorsement (other than
for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the obligation
of a primary obligor, (b) the obligation to make take-or-pay or similar
payments, if required, regardless of nonperformance by any other party or
parties to an agreement, or (c) any obligation of such Person, whether or
not contingent, (i) to purchase any such primary obligation or any property
constituting direct or indirect security therefor, (ii) to advance or
supply funds (A) for the purchase or payment of any such primary
obligation, or (B) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (iii) to purchase property, assets, Securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary
obligation, or (iv) otherwise to assure or hold harmless the holder of such
primary obligation against loss in respect thereof.

     

    “Contract Rate” means,
as to any Eligible Inventory at any date of determination, the stated contract
sales price for such Inventory payable by the purchaser thereof to any Credit
Party pursuant to the relevant Coal Supply Agreement.

     

    “Control Agreement”
means, with respect to a Securities Account or a Deposit Account, an agreement,
in form and substance reasonably satisfactory to the Collateral Agent, which
effectively gives “control” (as defined
in the UCC) to the Collateral Agent in such Securities Account and all
investment property contained therein or such Deposit Account and all funds
contained therein, as the case may be.

     

    “Convertible Note
Debt” means unsecured Indebtedness under the Senior Convertible
Notes.

     

    “Convertible Note Debt
Documents” means the Senior Convertible Notes Indenture and all other
agreements, instruments and documents executed in connection with the Senior
Convertible Notes.

     

    “Copyrights” means,
with respect to the Credit Parties (i) all copyrights arising under the
laws of the United States, any other country, or union of countries, or any
political subdivision of any of the foregoing, whether registered or
unregistered and whether published or unpublished, all registrations and
recordings thereof, and all applications in connection therewith and rights
corresponding thereto throughout the world, including all registrations,
recordings and applications in the United States Copyright Office, and (ii) all
other rights of any kind whatsoever accruing thereunder or pertaining thereto
including rights to receivables and royalties from the exploitation
thereof.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    “Credit Parties”
means, collectively, the Borrowers and the Guarantors.

     

    “Debt for Borrowed
Money” of any Person means, at any date of determination, without
duplication, the sum of (a) all items that, in accordance with GAAP, would
be classified as indebtedness on a consolidated balance sheet of such Person at
such date, (b) all obligations of such Person under acceptance, letter of
credit or similar facilities at such date, whether or not drawn, (c) the
outstanding amount of all Obligations, and (d) the outstanding amount of all
“Obligations” under and as defined in the Term Loan Agreement; provided that, with respect to
the Borrowers and their Subsidiaries, Debt for Borrowed Money shall exclude, to
the extent otherwise included in the items in clause (a) or (b) above,
(i) accounts payable and accrued liabilities in the ordinary course of
business of the Borrowers and their Subsidiaries so long as no longer than 90
days past due, and (ii) notes, bills and checks presented in the ordinary
course of business by such Person to banks for collection or
deposit.

     

    “Default” means an
event which, with the giving of notice or the lapse of time or both, would
constitute an Event of Default.

     

    “Defaulting Lender”
has the meaning ascribed to such term in 
SECTION
2.01(f).

     

    “Deposit Account”
means a “deposit
account” as that term is defined in Article 9 of the UCC.

     

    “Disposition” means
any transaction, or series of related transactions, pursuant to which any Credit
Party conveys, sells, leases or subleases, assigns, transfers or otherwise
disposes of any part of its business, property or assets (whether now owned or
hereafter acquired) to any other Person, in each case whether or not the
consideration therefor consists of cash, Securities or other assets, excluding
any sales of Inventory in the ordinary course of business.

     

    “Disqualified Equity
Interest” means any Equity Interest which, by its terms (or by the terms
of any security into which it is convertible or for which it is exchangeable),
or upon the happening of any event, (a) matures (excluding any maturity as the
result of an optional redemption by the issuer thereof) or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable
at the option of the holder thereof, in whole or in part, on or prior to the
date six months after the earlier of the Maturity Date or the date that the
Commitments and the Obligations hereunder are no longer outstanding, or (b) is
convertible into or exchangeable (unless at the sole option of the issuer
thereof) for (i) debt securities or (ii) any Equity Interest referred to in (a)
above, in each case at any time on or prior to the date six months after the
earlier of the Maturity Date or the date that the Commitments and the
Obligations hereunder are no longer outstanding, or (c) contains any repurchase
obligation which may come into effect prior to payment in full of all
Obligations.

     

    
      
        
        

      

      
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    “Dollar”, “Dollars” and the
symbol “$” each
means lawful money of the United States of America.

     

    “Domestic Subsidiary”
means any Subsidiary organized under the laws of the United States of America,
any State thereof or the District of Columbia.

     

    “Eligible Accounts”
means those Accounts created by a Borrower in the ordinary course of its
business, that arise out of the sale or other disposition of Inventory or
provision of services and that comply with each of the representations and
warranties respecting Eligible Accounts made in the Loan Documents, and that are
not excluded as ineligible by virtue of one or more of the excluding criteria
set forth below.  The Administrative Agent shall have the right to
establish, modify or eliminate Reserves against Eligible Accounts from time to
time in its reasonable credit judgment.  In addition, the
Administrative Agent reserves the right, at any time and from time to time after
the Closing Date, to adjust the criteria set forth below and to establish new
criteria and to adjust advance rates with respect to Eligible Accounts, in its
reasonable credit judgment reflecting changes in the salability or realization
values of Accounts arising or discovered by the Administrative Agent after the
Closing Date; provided
that any adjustments, new criteria or changes in the applicable advance
rates which have the effect of making more credit available shall only be
effective if approved by Supermajority Lenders.  In determining the
amount to be included, Eligible Accounts shall be calculated net of customer
deposits and unapplied cash.  Eligible Accounts shall not include the
following:

     

    (a) Accounts
that the Account Debtor has failed to pay within 90 days of original invoice
date or Accounts more than 60 days from the original due date,

     

    (b) Accounts
owned by an Account Debtor (or its Affiliates) where 50% or more of all Accounts
owed by that Account Debtor (or its Affiliates) are deemed ineligible under
clause (a) above,

     

    (c) Accounts
with respect to which the Account Debtor is an Affiliate of any Borrower or an
employee or agent of any Borrower or any Affiliate of any Borrower,

     

    (d) Accounts
arising in a transaction wherein goods are placed on consignment or are sold
pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and
hold, or any other terms by reason of which the payment by the Account Debtor
may be conditional,

     

    (e) Accounts
that are not payable in Dollars,

     

    (f) Accounts
with respect to which the Account Debtor either (i) does not maintain its chief
executive office in the United States, or (ii) is not organized under the laws
of the United States or any state thereof, or (iii) is the government of any
foreign country or sovereign state, or of any state, province, municipality, or
other political subdivision thereof, or of any department, agency, public
corporation, or other instrumentality thereof, unless (y) the Account is
supported by an irrevocable letter of credit satisfactory to the Administrative
Agent (as to form, substance, and issuer or domestic confirming bank) that has
been delivered to the Collateral Agent and is directly drawable by the
Collateral Agent, or (z) the Account is covered by credit insurance in form,
substance, and amount, and by an insurer, satisfactory to the Administrative
Agent,

     

    
      
        
        

      

      
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    (g) Accounts
with respect to which the Account Debtor is either (i) the United States or any
department, agency, or instrumentality of the United States (exclusive, however,
of Accounts with respect to which the applicable Borrower has complied, to the
reasonable satisfaction of the Administrative Agent, with the Assignment of
Claims Act, 31 USC § 3727), or (ii) any state of the United States or any
department, agency, public corporation, or other instrumentality thereof, to the
extent that the assignment of such Account required notification to or consent
of such Account Debtor and the applicable Borrower has not provided such
notification or obtained any such consent to the reasonable satisfaction of the
Administrative Agent,

     

    (h) Accounts
(x) with respect to which the Account Debtor is a creditor of any Borrower, has
or has asserted a right of setoff, has the right to a rebate, or has disputed
its obligation to pay all or any portion of the Account, to the extent of such
claim, right of setoff, rebate, or dispute or (y) subject to any penalty or
adjustment, to the extent of such penalty or adjustment,

     

    (i) Accounts
with respect to an Account Debtor whose total obligations owing to Borrowers
exceed 10% (or up to 60% in the case of any Account Debtor, as and for so long
as approved by the Administrative Agent in its reasonable credit judgment and
having a corporate debt rating of A or better as determined by S&P) of all
Eligible Accounts (it being understood that such percentage, as applied to a
particular Account Debtor, shall be subject to reduction by the Administrative
Agent in its reasonable credit judgment if the creditworthiness of such Account
Debtor deteriorates), to the extent of the obligations owing by such Account
Debtor in excess of such percentage; provided, however, that the
amount of Eligible Accounts that are excluded because they exceed the foregoing
percentage shall be determined by the Administrative Agent based on all of the
otherwise Eligible Accounts prior to giving effect to any eliminations based
upon the foregoing concentration limit,

     

    (j) Accounts
with respect to which the Account Debtor is subject to an Insolvency Proceeding,
is not Solvent, has gone out of business, or as to which a Borrower has received
notice of an imminent Insolvency Proceeding or a material impairment of the
financial condition of such Account Debtor, except as otherwise agreed by the
Administrative Agent,

     

    (k) Accounts
with respect to which the Account Debtor is located in a state or jurisdiction
(e.g., New Jersey, Minnesota, and West Virginia) that requires, as a condition
to access to the courts of such jurisdiction, that a creditor qualify to
transact business, file a business activities report or other report or form, or
take one or more other actions, unless the applicable Borrower has so qualified,
filed such reports or forms, or taken such actions (and, in each case, paid any
required fees or other charges), except to the extent that the applicable
Borrower may qualify subsequently as a foreign entity authorized to transact
business in such state or jurisdiction and gain access to such counts, without
incurring any cost or penalty viewed by the Administrative Agent to be
significant in amount, and such later qualification cures any access to such
courts to enforce payment of such Account,

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (l) Accounts,
the collection of which, the Administrative Agent, in its discretion, believes
to be doubtful by reason of the Account Debtor’s financial
condition,

     

    (m) Accounts
that are not subject to a valid and perfected first-priority Lien in favor of
the Collateral Agent,

     

    (n) Accounts
with respect to which (i) the goods giving rise to such Account have not been
shipped and billed to the Account Debtor, or (ii) the services giving rise to
such Account have not been performed and billed to the Account
Debtor,

     

    (o) Accounts
that represent the right to receive progress payments or other advance billings
that are due prior to the completion of performance by the applicable Borrower
of the subject contract for goods or services, or

     

    (p) amounts
recorded by a Borrower as adjustments to invoiced amounts for quality, quantity,
or earned synfuel fees.

     

    “Eligible Assignee”
means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved
Fund; or (e) any other Person approved by the Administrative Agent, the L/C
Issuer and, if no Event of Default has occurred and is continuing, the Borrowers
(such approval not to be unreasonably withheld, delayed or conditioned). The
Administrative Agent’s refusal to approve as an “Eligible Assignee” any Credit
Party, any Affiliate of a Credit Party, a holder of subordinated debt of any
Credit Party or an Affiliate of such a holder, or the imposition of conditions
or limitations (including limitations on voting) upon any such Persons, shall
not be deemed to be unreasonable.

     

    “Eligible Contract
Inventory” means, as of any date of determination thereof, any Eligible
Inventory that is then covered by a Coal Supply Contract.

     

    “Eligible Inventory”
means, the Inventory owned by a Borrower consisting of out of the ground coal
(and excluding any so-called “pit coal”) and reflected in the most recent
Borrowing Base Certificate delivered by the Administrative Borrower to the
Administrative Agent, except any Inventory to which any of the exclusionary
criteria set forth below applies.  The Administrative Agent shall have
the right to establish, modify or eliminate Reserves against Eligible Inventory
from time to time in its reasonable credit judgment.  In addition, the
Administrative Agent reserves the right, at any time and from time to time after
the Closing Date, to adjust the criteria set forth below and to establish new
criteria and to adjust advance rates with respect to Eligible Inventory, in its
reasonable credit judgment reflecting changes in the salability or realization
values of Inventory arising or discovered by the Administrative Agent after the
Closing Date; provided
that any adjustments, new criteria or changes in the applicable advance
rates which have the effect of making more credit available shall only be
effective if approved by the Supermajority Lenders. Eligible Inventory shall not
include any Inventory of any Borrower that:

     

    (a) is not
owned by such Borrower free and clear of all Liens and rights of any other
Person (including the rights of a purchaser that has made progress payments and
the rights of a surety that has issued a bond to assure such Borrower’s
performance with respect to that Inventory), except the Liens in favor of the
Collateral Agent, on behalf of the Lenders, and Liens in favor of the collateral
agent under the Term Loan Agreement;

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (b) (i) is
not located on premises owned, leased or rented by such Borrower, or (ii) is
stored at a leased location, unless Administrative Agent has given its prior
consent thereto and unless either (x) a reasonably satisfactory landlord waiver
has been delivered to Collateral Agent, or (y) Reserves reasonably satisfactory
to Administrative Agent have been established with respect thereto, or (iii) is
stored with a bailee or warehouseman unless a reasonably satisfactory,
acknowledged Bailee Letter has been received by Collateral Agent or Reserves
reasonably satisfactory to the Administrative Agent have been established with
respect thereto, or (iv) is located at an owned location subject to a mortgage
in favor of a lender other than the Collateral Agent unless a reasonably
satisfactory mortgagee waiver has been delivered to the Collateral Agent, or (v)
is located at any site if the aggregate book value of Inventory at any such
location is less than $100,000;

     

    (c) is placed
on consignment or is in transit, except for Inventory in transit between
domestic locations of Credit Parties as to which the Collateral Agent has
perfected its Lien at origin and destination;

     

    (d) is
covered by a negotiable document of title, unless such document has been
delivered to the Collateral Agent with all necessary endorsements, free and
clear of all Liens except those in favor of Collateral Agent and Liens in favor
of the Term Loan Collateral Agent;

     

    (e) is
obsolete, slow moving (in excess of one year’s supply), unsalable, shopworn,
seconds, damaged or unfit for sale;

     

    (f) consists
of display items, samples or packing or shipping materials, manufacturing or
mining supplies, work in process Inventory or replacement parts or is coal or
other mineral rights before extraction;

     

    (g) consists
of goods which have been returned by the buyer;

     

    (h) is not of
a type held for sale in the ordinary course of such Borrower’s
business;

     

    (i) is not
subject to a first-priority perfected lien in favor of Collateral Agent on
behalf of itself and Lenders;

     

    (j) breaches
any of the representations or warranties pertaining to Inventory set forth in
the Loan Documents;

     

    (k) consists
of any costs associated with “freight in” charges;

     

    (l) consists
of Hazardous Materials or goods that can be transported or sold only with
licenses that are not readily available;

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (m) is not
covered by casualty insurance reasonably acceptable to Administrative
Agent;

     

    (n) is
subject to any patent or trademark license requiring the payment of royalties or
fees or requiring the consent of the licensor for a sale thereof by Collateral
Agent; or

     

    (o) is (x)
not located at a Borrower’s preparation plant, load-out location or other
distribution center and (y) has not been entered into the Borrowers’ inventory
ledger.

     

    “Eligible Non-Contract
Inventory” means, as of any date of determination thereof, any Eligible
Inventory that is not then covered by a Coal Supply Contract.

     

    “Environmental
Actions” means any complaint, summons, citation, notice, directive,
order, claim, litigation, investigation, judicial or administrative proceeding,
judgment, letter or other communication from any Governmental Authority or other
Person alleging violations of, or liability under, any Environmental Law or
Releases of Hazardous Materials on, in, at, to, from or under (i) any
assets, properties or businesses of the Borrowers or any of their Subsidiaries
or any of their respective predecessors in interest, and (ii) any
facilities which received Hazardous Materials generated by the Borrowers or any
of their Subsidiaries or any of their respective predecessors in
interest.

     

    “Environmental Laws”
means any federal, state, local or foreign law or regulation relating to the
protection of the environment or health and safety including the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C.
§ 9601, et
seq.), the
Hazardous Materials Transportation Act (49 U.S.C. § 1801, et seq.), the Resource
Conservation and Recovery Act (42 U.S.C. § 6901, et seq.), the Federal
Clean Water Act (33 U.S.C. § 1251 et seq.), the Clean Air
Act (42 U.S.C. § 7401 et seq.), and the Toxic
Substances Control Act (15 U.S.C. § 2601 et seq.) and any other
law, including common law, relating to the environment (including, without
limitation, laws relating to the storage, generation, use, handling,
manufacture, processing, labeling, advertising, sale, display, transportation,
treatment, reuse, recycling, release and disposal of Hazardous Materials), as
such laws may be amended or otherwise modified from time to time, and any other
present or future federal, state, provincial, local or foreign statute,
ordinance, rule, regulation, order, judgment, decree, permit, license or other
binding determination (including the common law) of any Governmental Authority
imposing liability or establishing standards of conduct for protection of the
environment.

     

    “Environmental Liabilities
and Costs” means all liabilities, monetary obligations, Remedial Actions,
losses, damages, punitive damages, consequential damages, treble damages, costs
and expenses (including all reasonable fees, disbursements and expenses of
counsel, experts and consultants and costs of investigations and feasibility
studies), fines, penalties, sanctions and interest incurred as a result of any
claim or demand by any Governmental Authority or any third party, and which
relate to any environmental condition or a Release of Hazardous Materials from
or onto (a) any property presently or formerly owned by the Borrowers or
any of their Subsidiaries, or (b) any facility which received Hazardous
Materials generated by the Borrowers or any of their Subsidiaries.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    “Environmental Lien”
means any Lien in favor of any Governmental Authority for Environmental
Liabilities and Costs or otherwise relating to any Environmental
Law.

     

    “Equipment” means,
with respect to any Person, all of such Person’s now owned or hereafter acquired
right, title, and interest with respect to equipment (including, without
limitation, “equipment” as such
term is defined in Article 9 of the UCC), machinery, machine tools, motors,
furniture, furnishings, fixtures, vehicles, tools, parts, goods (other than
consumer goods, farm products, or Inventory), wherever located, including all
attachments, accessories, accessions, replacements, substitutions, additions,
and improvements to any of the foregoing.

     

    “Equity Interests”
means, with respect to any Person, shares of capital stock of (or other
ownership or profit interests in) such Person, warrants, options or other rights
for the purchase or other acquisition from such Person of shares of capital
stock of (or other ownership or profit interests in) such Person, whether
preferred or common and whether voting or nonvoting (or other ownership or
profit interests in) such Person or warrants, rights or options for the purchase
or other acquisition from such Person of such shares (or such other interests),
and other ownership or profit interests in such Person (including, without
limitation, partnership, member or trust units or interests therein), whether
voting or nonvoting, and whether or not such shares, warrants, options, rights
or other interests are authorized or otherwise existing on any date of
determination.  Notwithstanding the foregoing to the contrary, the
Senior Convertible Notes, prior to the conversion thereof, shall not constitute
Equity Interests in JRCC for purposes of this Agreement (it being understood
that upon the conversion in whole or in part of any such Senior Convertible
Notes into capital stock of JRCC or warrants, options or any other rights for
the purchase or other acquisition from JRCC of shares of capital stock of JRCC,
such shares of capital stock, warrants, options or such other rights issued in
connection with such conversion shall constitute Equity Interests in
JRCC).

     

    “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended, and the regulations
promulgated thereunder, in each case as in effect from time to
time.  References to sections of ERISA shall be construed also to
refer to any successor sections.

     

    “ERISA Affiliate”
means, with respect to each Credit Party, any trade or business (whether or not
incorporated) which is a member of a group of which such Credit Party is a
member and which would be deemed to be a “controlled group”
within the meaning of Sections 414(b), (c), (m) and (o) of the
Code.

     

    “ERISA Event” means
(a) a Reportable Event with respect to any Benefit Plan, (b) the
filing of a notice of intent to terminate a Benefit Plan in a distress
termination (as described in Section 4041(c) of ERISA), (c) the
institution by the Pension Benefit Guaranty Corporation of proceedings to
terminate a Benefit Plan or Multiemployer Plan, (d) the appointment of a
trustee to administer any Benefit Plan under Section 4042 of ERISA, or
(e) any event requiring the Borrowers or any ERISA Affiliate to provide
security to a Benefit Plan under Section 401(a)(29) of the
Code.

     

    “Eurodollar Reserve
Percentage” means, for any day, the percentage, expressed as a decimal
and rounded upwards, if necessary, to the next higher 1/100th of
1%, that is in effect for such day as prescribed by the Federal Reserve Board
(or any successor) for determining the maximum reserve requirement (including
any basic, supplemental or emergency reserves) in respect of Eurocurrency
liabilities, as defined in Regulation D of such Board as in effect from time to
time, or any similar category of liabilities for a member bank of the Federal
Reserve System in The City of New York.

     

    
      
        
        

      

      
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    “Event of Default” has
the meaning ascribed to such term in 
SECTION
11.01.

     

    “Excluded Taxes”
means, with respect to the Administrative Agent, the Collateral Agent, any
Lender, any L/C Issuer or any other recipient of any payment to be made by or on
account of any Obligation hereunder, taxes imposed on or measured by the overall
net income (however denominated) of such recipient, franchise taxes (whether or
not in lieu of net income taxes) and branch profits taxes, in each case imposed
on such recipient, by a jurisdiction (or any political subdivision thereof) as a
result of the recipient being organized or having its principal office or, in
the case of any Lender, its applicable lending office in such
jurisdiction.

     

    “Existing Credit
Agreement” has the meaning ascribed to such term in the first recital
hereto.

     

    “Existing Debt” means
Indebtedness of the Borrowers and their Subsidiaries listed on Schedule
E-1.

     

    “Existing Revolving
Advance” means “Revolving Advances” under and as defined in the Existing
Credit Agreement.

     

    “Extraordinary
Receipts” means any cash received by any of the Credit Parties outside
the ordinary course of business, including, without limitation, returns on
capital investments, insurance proceeds from key man life or other insurance,
foreign, federal, state or local tax refunds, pension plan reversions, and
judgments or settlements or other consideration received in connection with any
claim or cause of action, indemnity and reimbursement payments and any release
of funds from an escrow or similar arrangement, in each case, net of applicable
taxes and expenses; provided that Extraordinary
Receipts shall not include (a) Net Cash Proceeds or Net Casualty/Condemnation
Proceeds which are subject to 
SECTION 3.02(a) and
(b) Net Offering Proceeds and proceeds from the issuance or incurrence of
Indebtedness.

     

    “Federal Flood
Insurance” means Federally backed Flood Insurance available under the
National Flood Insurance Program to owners of real property improvements located
in Special Flood Hazard Areas in a community participating in the National Flood
Insurance Program.

     

    “Federal Funds Rate”
means, for any day, the rate per annum equal to the weighted average of the
rates on overnight Federal Funds transactions with members of the Federal
Reserve System arranged by Federal Funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day, provided
that if no such rate is so published on such next succeeding Business Day, the
Federal Funds Rate for such day shall be the average rate quoted to the
Administrative Agent on such day on such transactions as determined by the
Administrative Agent in a commercially reasonable manner.

     

    “Federal Reserve
Board” or the “Board” means the
Board of the Federal Reserve System or any Governmental Authority succeeding to
its functions.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    “FEMA” means the
Federal Emergency Management Agency, a component of the U.S. Department of
Homeland Security that administers the National Flood Insurance
Program.

     

    “Field Examination”
has the meaning set forth in 
SECTION
8.04(b).

     

    “FIRREA” means the
Financial Institutions Reform, Recovery and Enforcement Act of 1989, as
amended.

     

    “Fiscal Month” means
each calendar month.

     

    “Fiscal Quarter” means
the calendar quarter ending on each March 31, June 30, September 30 and December
31 of any Fiscal Year.

     

    “Fiscal Year” means
the fiscal year of the Borrowers ending on December 31.

     

    “Flood Insurance”
means, for any Real Estate Asset located in a Special Flood Hazard Area, Federal
Flood Insurance or private insurance that meets the requirements set forth by
FEMA in its Mandatory Purchase
of Flood Insurance Guidelines.  Flood Insurance shall be in an
amount, and with deductibles, acceptable to the Administrative
Agent.

     

    “Foreign Subsidiary”
means a Subsidiary other than a Domestic Subsidiary.

     

    “Forfeiture
Proceeding” means any action, proceeding or investigation affecting a
Credit Party before any court, governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, or the receipt of notice
by any such party that any of them is a suspect in or a target of any
governmental inquiry or investigation which may result in an indictment of any
of them or the seizure or forfeiture of any of their respective
properties.

     

    “Fraudulent Transfer
Laws” has the meaning ascribed to such term in 
SECTION
12.14.

     

    “Fund” means any
Person that is (or will be) engaged in making, purchasing, holding or otherwise
investing in commercial loans and similar extensions of credit.

     

    “Funding Date” means,
with respect to any Loan, the date upon which the amount of such Loan is
advanced to the Borrowers and, with respect to any Letter of Credit, the date
upon which such Letter of Credit is issued for the account of the
Borrowers.

    
       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

     

    “GAAP” means generally
accepted accounting principles in effect from time to time in the United States,
provided that, for the purpose
of the financial amounts and the definitions used herein, “GAAP” shall mean
generally accepted accounting principles in effect on the date hereof and
consistent with those used in the preparation of the 2007 Financial Statements,
and provided
further that,
if there occurs after the date of this Agreement any change in GAAP that affects
in any material respect the calculation of any financial covenant contained in 
ARTICLE X, the
Administrative Agent and the Borrowers shall negotiate in good faith an
amendment to such financial covenant and any other provision of this Agreement
that relates to the calculation of such financial covenant with the intent of
having the respective positions of the Lenders and the Borrowers after such
change in GAAP conform as nearly as possible to their respective positions as of
the date of this Agreement and, after the execution of any such amendment or
consent by the Required Lenders in connection with any such change in GAAP,
“GAAP” shall
mean generally accepted accounting principles in effect on the Closing Date of
such amendment or consent.  Until any such amendments have been agreed
upon, the covenants in 
ARTICLE X shall be
calculated as if no such change in GAAP has occurred.

     

    “GE Capital” means
General Electric Capital Corporation, a Delaware corporation.

     

    “Governing Documents”
means (a) with respect to any corporation, (i) the
articles/certificate of incorporation (or the equivalent organizational
documents) of such corporation, (ii) the by-laws (or the equivalent
governing documents) of the corporation and (iii) any document setting
forth the designation, amount and/or relative rights, limitations and
preferences of any class or series of such corporation’s capital stock;
(b) with respect to any general partnership, (i) the partnership
agreement (or the equivalent organizational documents) of such partnership, and
(ii) any document setting forth the designation, amount and/or relative
rights, limitations and preferences of any of the partnership interests;
(c) with respect to any limited partnership, (i) the partnership
agreement (or the equivalent organizational documents) of such partnership,
(ii) a certificate of limited partnership (or the equivalent organizational
documents), and (iii) any document setting forth the designation, amount
and/or relative rights, limitations and preferences of any of the partnership
interests; (d) with respect to any limited liability company, (i) the
certificate of limited liability (or equivalent filings) of such limited
liability company, (ii) the operating agreement (or the equivalent
organizational documents) of such limited liability company, and (iii) any
document setting forth the designation, amount and/or relative rights,
limitations and preferences of any of such company’s membership interests; and
(e) with respect to any unlimited liability company, (i) the
certificate of incorporation (or the equivalent organizational documents) of
such unlimited liability company, (ii) the memorandum and articles of
association (or the equivalent governing documents) of such unlimited liability
company, and (iii) any document setting forth the designation, amount
and/or relative rights, limitations and preferences of any class or series of
such unlimited liability company’s capital stock; including, in each case, all
agreements and other documents establishing voting limitations and rights, puts,
calls, options and other arrangements among holders of Equity Interests in such
corporation, partnership or company.

     

    “Governmental
Authority” means any nation or government, any federal, state,
provincial, city, town, municipal, county, local or other political subdivision
thereof or thereto and any department, commission, board, bureau,
instrumentality, agency or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

     

    “Grantor” has the
meaning ascribed to such term in the Security Agreement.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    “Guaranteed
Obligations” has the meaning ascribed to such term in 
SECTION
12.01.

     

    “Guarantors” means the
guarantors signatory hereto, the Borrowers’ current Wholly Owned Subsidiaries
and each of the Borrowers’ future Subsidiaries that is required to become a
Guarantor hereunder from time to time.

     

    “Guaranty” means the
guaranty of each of the Guarantors pursuant to 
ARTICLE
XII.

     

    “Hazardous Materials”
means (a) any element, compound or chemical that is regulated under any
Environmental Law including any substance that is defined, listed or otherwise
classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous
substance, extremely hazardous substance or chemical, hazardous waste, special
waste, or solid waste under Environmental Laws; (b) petroleum and its
refined products; (c) polychlorinated biphenyls; (d) any waste
exhibiting a hazardous characteristic, including, but not limited to,
corrosivity, ignitability, toxicity or reactivity as well as any radioactive or
explosive materials; and (e) friable asbestos-containing
materials.

     

    “Highest Lawful Rate”
has the meaning ascribed to such term in 
SECTION
4.01(c).

     

    “Impacted Lender”
means any Lender that fails promptly to provide the Administrative Agent, upon
the Administrative Agent’s request, satisfactory assurance that such Lender will
not become a Non-Funding Lender.

     

    “Indebtedness” means,
without duplication, with respect to any Person, (a) all indebtedness of
such Person for borrowed money; (b) all obligations of such Person for the
deferred purchase price of property or services (other than trade payables
incurred in the ordinary course of business irrespective of when paid);
(c) all obligations of such Person evidenced by bonds, debentures, notes or
other similar instruments; (d) all obligations and liabilities of such
Person created or arising under any conditional sales or other title retention
agreement with respect to property used and/or acquired by such Person, even if
the rights and remedies of the lessor, seller and/or lender thereunder are
limited to repossession or sale of such property; (e) all Capitalized Lease
Obligations of such Person; (f) all obligations and liabilities of such
Person as an account party, in respect of letters of credit, bankers’
acceptances and similar facilities; (g) all the aggregate mark-to-market
exposure of such Person under hedging agreements; (h) all Contingent
Obligations; and (i) all obligations referred to in clauses (a)
through (h) of
this definition of another Person secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) a
Lien upon property owned by such Person, even though such Person has not assumed
or become liable for the payment of such Indebtedness, provided that the amount of
Indebtedness of others that constitutes Indebtedness solely by reason of this
clause (i)
shall not for purposes of this Agreement exceed the fair market value of the
properties or assets subject to such Lien.  The Indebtedness of any
Person shall include the Indebtedness of any partnership of or joint venture in
which such Person is a general partner or a joint venturer that is required to
be consolidated under GAAP to the extent such Person would be liable therefor
under Applicable Law or any agreement or instrument by virtue of such Person’s
ownership interest in or other relationship with such entity, except to the
extent the terms of such Indebtedness provide that such Person shall not be
liable therefor.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    “Indemnified Matters”
has the meaning ascribed to such term in 
SECTION
14.19.

     

    “Indemnitees” has the
meaning ascribed to such term in 
SECTION
14.19.

     

    “Indenture” means that
certain Indenture dated as of May 31, 2005 between James River Coal Company and
U.S. Bank National Association, as Trustee for 9.375% Senior Notes due
2012.

     

    “Indenture Reserve”
means (without duplication) the amount of (a) any Indebtedness outstanding under
clause (c) or clause (i) of the definition of Permitted Indebtedness and (b) any
other Indebtedness (as that term is defined in the Indenture) that is permitted
under Section 4.03(a)(10) of the Indenture.

     

    “Intellectual
Property” means all (a) Trademarks; (b) Patents and other
inventions and discoveries, whether patentable or not, and all patents,
registrations, invention disclosures and applications therefor, including
divisions, continuations, continuations-in-part and renewal applications, and
including renewals, extensions and reissues; (c) Trade Secrets;
(d) Copyrights published and unpublished works of authorship, whether
copyrightable or not (including without limitation customer lists, software,
databases and other compilations of information), copyrights therein and
thereto, and registrations and applications therefor, and all renewals,
extensions, restorations and reversions thereof; and (e) all domain names,
other intellectual property and proprietary rights.

     

    “Intercreditor
Agreement” means an intercreditor agreement between the Administrative
Agent, the Collateral Agent, the Term Loan Agent and the collateral agent under
the Term Credit Agreement executed and delivered as of the Original Closing
Date.

     

    “Interest Payment
Date” means (a) with respect to (i) any Base Rate Loan, monthly in
arrears on the last Business Day of each calendar month, commencing on the first
such date to occur after the Closing Date and the Maturity Date; and (ii) any
LIBOR Rate Loan, the last day of each LIBOR Period applicable to such Loan;
provided, in
the case of each LIBOR Period of longer than three months, “Interest Payment
Date” shall also include each date that is three months, or an integral multiple
thereof, after the commencement of such LIBOR Period, (b) with respect to
the amount of any Loan prepaid, the date of such prepayment, and (c) with
respect to all Loans, the Maturity Date.

     

    “Interest Rate” means
interest at a rate equal to either (i) the Base Rate plus the Applicable
Margin, or (ii) the LIBOR plus the Applicable
Margin.

     

    “Interest Rate Determination
Date” means, for each LIBOR Period, the second Business Day immediately
preceding the first day of such LIBOR Period.

     

    “Inventory” means all
Credit Parties’ now owned or hereafter acquired right, title, and interest with
respect to all “inventory” as defined
in Article 9 of the UCC; provided that
“Inventory” shall not include coal, minerals or other Inventory that has not yet
been extracted to the surface or otherwise is still underground.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    “Investment” means,
with respect to any Person, (a) any purchase or other acquisition by that
Person of Securities, or of a beneficial interest in Securities, issued by any
other Person; (b) any purchase by that Person of all or substantially all
of the assets of a business conducted by another Person; (c) any joint
venture; and (d) any direct or indirect loan, advance (other than prepaid
expenses, accounts receivable, advances and other loans to employees including,
without limitation, employee forgivable loans and similar items made or incurred
in the ordinary course of business) or capital contribution by that Person to
any other Person, including all Indebtedness owing to such Person arising from a
sale of any property or assets by such Person other than in the ordinary course
of its business.

     

    “IRS” means the
Internal Revenue Service or any successor federal tax Governmental
Authority.

     

    “Issue” means, with
respect to any Letter of Credit, to issue, extend the expiration date of, renew
(including by failure to object to any automatic renewal on the last day such
objection is permitted), increase the face amount of, or reduce or eliminate any
scheduled decrease in the face amount of, such Letter of Credit, or to cause any
Person to do any of the foregoing.  The terms “Issued” and “Issuance”
have correlative meanings.

     

    “JRCC” has the meaning
ascribed to such term in the introductory paragraph of this
Agreement.

     

    “KRP” means Kentucky
River Properties, LLC and its affiliates.

     

    “KRP Claims Reserve”
means, at any time (x) upon the commencement and during the continuation of a
Trigger Event Period or (y) there shall exist any default under any of the
Borrowers’ or their Subsidiaries’ Leases with KRP, without duplication of any
other Reserves then in effect, reserves established by the Administrative Agent
against the Borrowing Base, as the Administrative Agent in its reasonable credit
judgment shall deem necessary or appropriate, with respect to obligations
(whether due and owing, past due and owing or which may arise in the future) of
the Borrowers and their Subsidiaries under any Lease with KRP.

     

    “L/C Issuer” means UBS
AG, in its capacity as an issuer or Letters of Credit hereunder or any other
Lender or an Affiliate thereof or a bank or other legally authorized Person, in
each case, reasonably acceptable to the Administrative Agent, in such Person’s
capacity as an issuer of Letters of Credit hereunder.

     

    “L/C Reimbursement
Agreement” has the meaning set forth in paragraph (a)(i) of
Annex
A.

     

    “L/C Reimbursement
Date” has the meaning set forth in paragraph (e) of
Annex
A.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    “L/C Reimbursement
Obligation” means, for any Letter of Credit, the obligation of the
Borrowers to the L/C Issuer thereof, as and when matured, to pay all amounts
drawn under such Letter of Credit.

     

    “L/C Request” has the
meaning set forth in paragraph (b) of
Annex
A.

     

    “L/C Sublimit” has the
meaning set forth in paragraph (a)(iii) of
Annex
A.

     

    “Lease” means any
lease, tenancy, subtenancy, license, franchise, concession or other use or
occupancy agreement, whether written or oral, and any and all extensions,
renewals or other modifications thereof, including all oil, gas, coal and other
minerals leases, surface leases or easements, subleases, licenses, concessions,
operating rights or other agreements (written or verbal, now or hereafter in
effect) which grant a possessory interest in and to, or the right to explore,
use, lease, license, possess, produce, process, store or transport oil, gas,
coal or other minerals from, operate from, or otherwise enjoy, any property or
any interest therein, together with all amendments, modifications, extensions
and renewals thereof (and “landlord” means the
landlord, sublandlord, lessor, sublessor, franchisor or other grantor of a right
of use or occupancy under a Lease and any guarantor of its obligations
thereunder; and “tenant” means the
tenant, subtenant, lessee, sublessee, licensee, franchisee, concessionaire or
other occupant under a Lease and any guarantor of its obligations
thereunder).

     

    “Leasehold Property”
means any property or interest of any Credit Party held under any Lease of real
property.

     

    “Lender” means a
lender that has a Commitment and/or that has an outstanding Revolving Advance or
Loan, including the lenders identified on the signature pages hereof, together
with their respective successors and permitted assigns, collectively the
“Lenders”.

     

    “Lender Expenses” has
the meaning ascribed to such term in 
SECTION
14.05.

     

    “Lender-Related Distress
Event” means, with respect to any Lender or any Person that directly or
indirectly controls such Lender (each a “Distressed Person”),
(a) a voluntary or involuntary case with respect to such Distressed Person under
the Bankruptcy Code or any similar bankruptcy laws of its jurisdiction of
formation, (b) a custodian, conservator, receiver or similar official is
appointed for such Distressed Person or any substantial part of such Distressed
Person’s assets, (c) such Distressed Person is subject to a forced liquidation,
merger, sale or other change of majority control supported in whole or in part
by guaranties or other support (including, without limitation, the
nationalization or assumption of majority ownership or operating control by) the
U.S. government or other Governmental Authority, or (d) such Distressed Person
makes a general assignment for the benefit of creditors or is otherwise
adjudicated as, or determined by any Governmental Authority having regulatory
authority over such Distressed Person or its assets to be, insolvent or
bankrupt.  For purposes of this definition, control of a Person shall
have the same meaning as in the second sentence of the definition of
“Affiliate”.

     

    “Lender-Related
Persons” means, with respect to any Lender, such Lender, together with
such Lender’s Affiliates, and the officers, directors, employees, counsel,
advisors, agents, and attorneys-in-fact of such Lender and such Lender’s
Affiliates.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    “Letter of Credit”
means a letter of credit issued by any L/C Issuer (or its designee) or a Person
approved by the Administrative Agent; provided, however, the term
shall not include any Term Letters of Credit issued pursuant to the Term Credit
Agreement or any Rolling Letters of Credit and provided, further, that the
aggregate face amount of all Letters of Credit shall not exceed the L/C
Sublimit.

     

    “Letter of Credit
Usage” means an amount equal to the face amount of all outstanding
Letters of Credit plus the aggregate amount of any unpaid reimbursement
obligations in respect of Letters of Credit and all other outstanding
obligations incurred by the Administrative Agent, the Collateral Agent, the
Lenders and the L/C Issuers, whether direct or indirect, contingent or
otherwise, due or not due, in connection with the issuance of Letters of Credit
by the L/C Issuers or the purchase of a participation as set forth in Annex A with respect
to any Letter of Credit.  Letter of Credit Usage shall equal the
maximum amount that may be payable by the L/C Issuers, Administrative Agent, the
Collateral Agent and the Lenders thereupon or pursuant thereto.

     

    “Leverage Ratio”
means, as of any date of determination (a) the amount of Senior Funded
Indebtedness as of such date, divided by
(b) the amount of Consolidated EBITDA of the Borrowers and their
Subsidiaries for the twelve (12) month period most recently ended prior to that
date.

     

    “LIBOR” means, for
each LIBOR Period, the higher of (a) the offered rate per annum for deposits of
Dollars for the applicable LIBOR Period that appears on Reuters Screen LIBOR 01
Page as of 11:00 A.M. (London, England time) on the relevant Interest Rate
Determination Date with respect to such LIBOR Period or (b) the offered rate per
annum for deposits of Dollars for an Interest Period of three (3) months that
appears on Reuters Screen LIBOR 01 Page as of 11:00 A.M. (London, England time)
on the relevant Interest Rate Determination Date with respect to such LIBOR
Period.  If no such
offered rate exists, such rate will be the rate of interest per annum, as
determined by the Administrative Agent at which deposits of Dollars in
immediately available funds are offered at 11:00 A.M. (London, England time) on
the relevant Interest Rate Determination Date with respect to such LIBOR Period
by major financial institutions reasonably satisfactory to the Administrative
Agent in the London interbank market for such LIBOR Period for the applicable
principal amount on such date of determination.

     

    “LIBOR Period” means,
with respect to any LIBOR Rate Loan, the period of one, two or three months, as
specified by the Administrative Borrower in the applicable Borrowing Request or
in a Notice of Conversion/Continuation and commencing on the date of the making
of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the
conversion of a Base Rate Loan to a LIBOR Rate Loan) and ending one, two or
three months thereafter; and provided that the
foregoing provisions are subject to the following:

     

    (a) if any
LIBOR Period pertaining to a LIBOR Rate Loan would otherwise end on a day that
is not a Business Day, such LIBOR Period shall be extended to the next
succeeding Business Day unless the result of such extension would be to carry
such LIBOR Period into another calendar month, in which event such LIBOR Period
shall end on the immediately preceding Business Day;

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

       

    

    (b) any LIBOR
Period pertaining to a LIBOR Rate Loan that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such LIBOR Period) shall end on the last
Business Day of the relevant calendar month; and

     

    (c) any LIBOR
Period in respect of any Loan that would otherwise extend beyond the Maturity
Date shall end on the Maturity Date.

     

    “LIBOR Rate” means a
rate per annum (rounded upwards, if necessary, to the next higher 1/100th of
1%) determined by the Administrative Agent pursuant to the following
formula:  LIBOR/(1.00 – Eurodollar Reserve Percentage as of the
Interest Rate Determination Date).

     

    “LIBOR Rate Loans”
means Loans which bear interest at a rate determined by reference to the LIBOR
Rate.

     

    “Lien” means any lien,
security interest or other encumbrance or charge of any kind, or any other type
of preferential arrangement intended to have the effect of a lien or security
interest, including, without limitation, the lien or retained security title of
a conditional vendor and any easement, right of way or other encumbrance on
title to real property.

     

    “Loan” means each
Revolving Advance or other extension of credit under this
Agreement.

     

    “Loan Account” has the
meaning ascribed to such term in 
SECTION
2.08.

     

    “Loan Documents” means
this Agreement, the Notes, the Agents Fee Letter, the Omnibus Ratification
Agreement, the Security Documents, the Intercreditor Agreement and all other
agreements, instruments, and other documents executed and delivered by any
Credit Party pursuant hereto or thereto or otherwise evidencing or securing any
Loan, in each case.

     

    “Loan Exposure” means,
with respect to any Lender, as of any date of determination (a) prior to
the funding of the Loans, such Lender’s Commitment, and (b) after the
funding of the Loans, such Lender’s Pro Rata Share of the Aggregate Revolver
Exposure (as may be increased in accordance with any reallocation and assumption
required by the second sentence of paragraph (f) of
Annex A until
such time as such Lenders have received payment in full of the Aggregate Excess
Funding Amount).

     

    “Mandated Capital
Expenditures” means the amount of any Capital Expenditures required to be
made by the Credit Parties as the result of any law or regulation, directive,
guideline or decision of any Governmental Authority (including without
limitation the Mine Improvement and New Emergency Response Act of 2006 and MSHA
safety initiatives implemented in 2006 and 2007); provided that the
aggregate amount of all such Capital Expenditures shall not exceed $10,000,000
during any consecutive period of twelve months.

     

    “Material Adverse
Effect” means a material adverse effect on (a) the business,
operations, properties, assets, or condition (financial or otherwise) of the
Credit Parties taken as a whole, (b) the ability of the Credit Parties to
perform their obligations hereunder or under any of the other Loan Documents, or
(c) the rights or remedies of the Administrative Agent, Collateral Agent or
any Lender hereunder or under any other Loan Document.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    “Material Contract”
means (a) each of those contracts, Leases, Mining Leases or other
agreements listed on Schedule M-1
hereto and (b) any contract, Lease, Mining Lease, or other agreement (or any
combination of any of the foregoing which are contractually related or
cross-defaulted with each other or under any Loan Document) (i) pursuant to
which any Credit Party is or may be obligated to pay or entitled to receive an
amount equal to or greater than, (ii) the value of which, based on the
reasonably estimated fair market value thereof or of the assets underlying the
same, or (iii) in the case of any Mining Lease(s), the average production under
which is reasonably expected to have a fair market value of (in each case under
the foregoing clauses (i), (ii) and (iii)), $25,000,000 per annum or such lesser
amount as may constitute 5% of the revenue of the Borrowers and their
Subsidiaries for the twelve months ended on the financial statements most
recently delivered under SECTION
7.01(a).

     

    “Maturity Date” means
February 26, 2012.

     

    “Maximum Amount”
means, at any time, (a) the lesser of (i) the Maximum Revolver Amount
minus the
Indenture Reserve and (ii) the Borrowing Base, minus
(b) Reserves (other than Reserves deducted in the calculation of the
Borrowing Base).

     

    “Maximum Revolver
Amount” means $65,000,000.

     

    “Measurement Period”
means a period of four (4) consecutive Fiscal Quarters.

     

    “Mine” means any
excavation or opening into the earth now and hereafter made from which coal or
other minerals are or can be extracted on or from any of the properties owned or
leased by a Borrower or any Subsidiary of a Borrower, together with all
appurtenances, fixtures, structures, improvements and assets in connection
therewith.

     

    “Mining Law” means all
treaties, laws, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions, notices or binding agreements issued, promulgated or
entered into by any Governmental Authority, relating in any way to mining
operations and activities, including the Federal Coal Leasing Amendments Act,
the Surface Mining Control and Reclamation Act, the Federal Coal Mine Health and
Safety Act, the Black Lung Act and the Coal Act, in each case as
amended.

     

    “Mining Lease” means a
Lease, easement, right of access or other agreement pursuant to which a Borrower
or any Subsidiary of a Borrower has rights with respect to coal reserves or the
right to mine or extract coal or other minerals from the ground.

     

    “Mining Permits” means
any and all permits, licenses, registrations, notifications, exemptions,
contracts and any other authorization or right required under any applicable
Mining Law or otherwise necessary to recover coal from any Mine being operated
by the Borrowers or any Subsidiary of a Borrower.

     

    “Mortgage” means a
mortgage, deed of trust and/or assessment and other similar security instrument
with respect to Real Estate Assets executed and delivered by a Credit Party in
favor of the Collateral Agent, in form and substance reasonably satisfactory to
the Collateral Agent, as the same may be amended, modified and otherwise
supplemented from time to time.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    “Mortgaged Property”
means each parcel of real property and the improvements thereto as set forth as
of the Closing Date on Schedule M-2 and any
other such property which becomes subject to a Mortgage granted in connection
with this Agreement.

     

    “Multiemployer Plan”
means a “multiemployer
plan” as defined in Section 4001(a)(3) of ERISA to which the Credit
Parties or any of their ERISA Affiliates has contributed, or has been obligated
to contribute, at any time during the preceding six years, or has
liability.

     

    “National Flood Insurance
Program” means the program created by the U.S. Congress pursuant to the
National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of
1973, as revised by the National Flood Insurance Reform Act of 1994, that
mandates the purchase of flood insurance to cover real property improvements
located in Special Flood Hazard Areas in participating communities and provides
protection to property owners through a Federal insurance program.

     

    “Net Cash Proceeds”
means all cash and Cash Equivalents received by a Credit Party or any
Wholly-Owned Subsidiary from time to time in connection with a Disposition
(whether as initial consideration or through the payment of deferred
consideration) other than a Disposition permitted under

SECTION 9.04, after
deducting therefrom only (a) the principal amount of any Indebtedness of
such Credit Party secured by any Permitted Encumbrance on any asset that is the
subject of the Disposition (other than Indebtedness assumed by the purchaser of
such asset) which is required to be, and is, repaid in connection with such
Disposition (other than Indebtedness under this Agreement), (b) reasonable
fees and expenses related thereto reasonably incurred by such Credit Party in
connection therewith, and (c) a provision for any Taxes to be paid or
reasonably estimated to be payable, in connection with such Disposition (after
taking into account any tax credits or deductions and any tax sharing
arrangements).

     

    “Net Casualty/Condemnation
Proceeds” means, with respect to any Casualty or Condemnation, the amount
of any insurance proceeds or condemnation awards received by a Credit Party from
time to time in connection with such Casualty or Condemnation, but excluding any
proceeds or awards required to be paid to a creditor (other than the Lenders)
which holds a first-priority Lien permitted pursuant to this Agreement on the
property which is subject of such Casualty or Condemnation after deducting
therefrom only (a) a reserve for any Taxes to be paid or estimated by the
applicable Credit Party to be paid as a result of such Casualty or Condemnation,
and (b) to the extent not excluded above, payments to retire Indebtedness
where payment of such Indebtedness is required in connection with such Casualty
or Condemnation.

     

    “Net Income” means,
with respect to any Person for any period, the net income (loss) of such Person
and its consolidated Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP.

     

    “Net Interest Expense”
means, with respect to any Person for any period, interest expense of such
Person and its consolidated Subsidiaries for such period (after the elimination
of intercompany items) determined on a consolidated basis in conformity with
GAAP less the
interest income for such period, determined on a consolidated basis in
accordance with GAAP for such Person and its consolidated
Subsidiaries.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    “Net Offering
Proceeds” means an amount equal to the cash and Cash Equivalents raised
in any initial or secondary public or private offering or sale of any equity
security of any Credit Party minus any direct,
reasonable costs, fees, taxes, commissions and underwriting discounts incurred
and paid in connection therewith.

     

    “Non-Consenting
Lender” has the meaning ascribed to such term in

SECTION 14.03(a).

     

    “Non-Funding Lender”
means any Lender (a) that has failed to fund any payments required to be made by
it under the Loan Documents within two (2) Business
Days after any such payment is due, (b) that has given verbal or written notice
to a Borrower, the Administrative Agent or any other Lender or has otherwise
publicly announced that such Lender believes it will fail to fund all payments
required to be made by it or fund all purchases of participations required to be
funded by it under this Agreement and the other Loan Documents, (c) as to which
the Administrative Agent has a good faith belief that such Lender or an
Affiliate of such Lender has defaulted in fulfilling its obligations (as a
lender, agent or letter of credit issuer) under one or more other syndicated
credit facilities or (d) with respect to which one or more Lender-Related
Distress Events has occurred with respect to such Person or any Person that
directly or indirectly controls such Lender and Agent has determined that such
Lender may become a Non-Funding Lender.  For purposes of this
definition, control of a Person shall have the same meaning as in the second
sentence of the definition of Affiliate.

     

    “Non-U.S. Lender” has
the meaning ascribed to such term in SECTION 3.04(e)(i).

     

    “Note” means a
promissory note in substantially the form attached as Exhibit N-1
payable to a Lender pursuant to 
SECTION
2.05.

     

    “Notice of
Conversion/Continuation” means a notice substantially in the form of
Exhibit N-2
attached hereto and made a part hereof.

     

    “Notice of Default”
has the meaning ascribed to such term in 
SECTION
13.03.

     

    “NYMEX” means the New
York Mercantile Exchange.

     

    “Obligations” means
all Loans, Lender Expenses, advances, debts, liabilities, fees, interest,
obligations, covenants and duties, owing by any Credit Party to the
Administrative Agent, the Collateral Agent, any L/C Issuer, any Lender, any
Affiliate of any Lender, or any Person entitled to indemnification pursuant to 
SECTION 14.19 of this
Agreement, of any kind or nature, present or future, whether or not evidenced by
any note, guaranty or other instrument, whether or not for the payment of money,
whether arising by reason of an extension of credit, loan, guaranty,
indemnification, interest rate contract, foreign exchange contract or in any
other manner, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, but in all such
circumstances only to the extent now existing or hereafter arising or however
acquired, arising under or in connection with this Agreement, the Notes, any
other Loan Document or any application or documentation of any L/C Issuer in
connection with the issuance of a Letter of Credit.  The term includes
all interest (including any interest that, but for the provisions of the
Bankruptcy Code, would have accrued), charges, expenses, fees, attorneys’ fees
and disbursements, Lender Expenses and any other sum chargeable to the Credit
Parties under this Agreement, the Notes, or any other Loan
Document.

     

    
      
        
        

      

      
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    “Officer’s
Certificate” has the meaning ascribed to such term in 
SECTION
7.01(d).

     

    “Office Lease” means
any space Lease solely for an office or any other administrative operations, but
specifically excluding all Mining Leases and Prep Plant Leases.

     

    “Omnibus Ratification
Agreement” means that certain Omnibus Reaffirmation and Ratification
Agreement, dated as of the Closing Date, by and among the Credit Parties, the
Administrative Agent and the Collateral Agent, pursuant to which each of the
Credit Parties shall confirm and ratify all of its respective obligations under
each of the Security Documents that were executed and/or delivered prior to the
Closing Date pursuant to the Existing Credit Agreement.

     

    “Operating Lease”
means, as applied to any Person, any lease (including leases that may be
terminated by the lessee at any time) of any property (whether real, personal or
mixed) that is not a Capitalized Lease, other than any such lease under which
that Person is the lessor.

     

    “Other Lender” has the
meaning ascribed to such term in 
SECTION
14.03(b).

     

    “Other Taxes” has the
meaning ascribed to such term in 
SECTION
3.04(b).

     

    “Original Closing
Date” means February 26, 2007.

     

    “Participant” has the
meaning ascribed to such term in 
SECTION
14.10(e).

     

    “Patents” means all of
the following in which any Person now holds or hereafter acquires any interest:
(a) all letters patent of the United States or any other country, all
registrations and recordings thereof, all applications for letters patent of the
United States or any other country, including registrations, recordings and
applications in the United States Patent and Trademark Office or in any similar
office or agency of the United States, any State or Territory thereof, or any
other country and all patentable inventions and improvements described and
claimed in any of the foregoing, (b) all reissues, continuations,
continuations-in-part, divisions, renewals, or extensions thereof and all
amendments and supplements thereto and improvements thereon, (c) all patent
licenses held by any Credit Party and (d) including in the case of each of (a),
(b) and (c), all rights corresponding thereto in the United States and in every
other country, including the right to make, use, lease, license, sell and
otherwise transfer the technology or inventions disclosed therein, all income
and proceeds thereof and all license royalties and proceeds of infringement
suits.

     

     

    
      
        
        

      

      
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    “Patriot Act” means
the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, P.L. 107-56, as
amended.

     

    “PBGC” has the meaning
ascribed to such term in 
SECTION
6.01(i).

     

    “Permits” has the
meaning ascribed to such term in 
SECTION
6.01(l).

     

    “Permitted
Acquisition” means acquisitions satisfying all of the following
conditions:

     

    (a) one or
more acquisitions for a purchase price not exceeding $25,000,000 in the
aggregate for all such acquisitions (including the amount of any Indebtedness
assumed as part of any such acquisition), consummated by or through the
Borrowers or any of their Subsidiaries (including any newly formed Subsidiary of
a Borrower), of a Person engaged in substantially the same general line of
business or businesses as those in which the Borrowers or any of their
Subsidiaries is engaged or businesses reasonably related thereto;

     

    (b) such
acquisition shall be consensual and shall have been approved by the board of
directors (or similar governing body) of the Person whose Equity Interests or
assets are proposed to be acquired and shall not have been preceded by an
unsolicited tender offer for such Equity Interests by, or proxy contest
initiated by, a Borrower or any Subsidiary of such Borrower;

     

    (c) the
Administrative Borrower provides Agent with prior notice (which notice shall not
be less than 10 days prior to the closing date of such acquisition) of such
acquisition and a draft of the proposed acquisition agreement;

     

    (d) the
Administrative Borrower delivers a pro forma compliance certificate, prepared on
a pro forma basis after giving effect to the proposed acquisition or
acquisitions, demonstrating compliance with this Agreement and that the Leverage
Ratio immediately after giving effect to the acquisition or acquisitions is
equal to or less than the Leverage Ratio for the Borrowers and their
subsidiaries without the acquired entity, business or assets immediately prior
thereto;

     

    (e) the
aggregate amount of EBITDA for the last 12 consecutive month period of each such
Person (or each such business or assets) being acquired is not less than $1 as
of the month most recently ended prior to the date of such
Acquisition;

     

    (f) an
Authorized Officer of the Administrative Borrower shall have delivered a
certificate attesting to the Solvency of the Borrowers and their Subsidiaries
taken as a whole, including the acquired entity, business or assets, after
giving effect to the acquisition;

     

    (g) the
Administrative Borrower shall deliver updated disclosure schedules to this
Agreement and to each of the other Loan Documents, as applicable;

     

    (h) any
Indebtedness or Liens assumed in connection with each such acquisition are
otherwise permitted under 
SECTION 9.02 and 
SECTION 9.03,
respectively; and

     

    
      
        
        

      

      
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    (i) no
Default or Event of Default shall exist immediately prior to or shall have
occurred and be continuing or would result from the consummation of the proposed
acquisition or acquisitions.

     

    “Permitted
Encumbrances” means:

     

    (a) Liens
imposed by law for unpaid utilities and taxes, assessments or governmental
charges or levies that are not yet due or are being contested in a Permitted
Protest;

     

    (b) landlords’,
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing
obligations that are not overdue or are being contested in a Permitted
Protest;

     

    (c) deposits
of cash made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security or employment
laws or regulations or similar legislation or to secure public, statutory or
regulatory obligations;

     

    (d) deposits
of cash to secure the performance of bids, trade contracts, utility services,
government contracts, statutory or regulatory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature, in each case in
the ordinary course of business;

     

    (e) deposits
of cash required under Leases that were entered into in the ordinary course of
business and that are not prohibited hereunder;

     

    (f) easements,
zoning restrictions, rights-of-way and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not secure
any monetary obligations and which individually or in the aggregate do not have
a Material Adverse Effect;

     

    (g) Liens
existing on the Closing Date and listed on Schedule P-1
hereto and, if the Indebtedness secured by such Lien is refinanced pursuant to a
Permitted Refinancing, any Lien securing the Permitted Refinancing of such
Indebtedness, provided that such Lien
securing Indebtedness under a Permitted Refinancing does not extend to or cover
any property or asset of any Credit Party not subject to the Lien on the Closing
Date and listed on Schedule P-1;

     

    (h) Liens
securing the Obligations and/or created by the Security Documents;

     

    (i) any
interest or title of a lessor, sublessor, licensee or licensor under any
operating lease or license agreement entered into in the ordinary course of
business and which does not, individually or in the aggregate, have a Material
Adverse Effect;

     

    (j) Liens
securing Indebtedness described in clause (c) of the
definition of “Permitted
Indebtedness”; and

     

    (k) Liens in
favor of the collateral agent under the Term Credit Agreement that are subject
to the Intercreditor Agreement (including, without limitation, Liens on cash
collateral (which may consist of cash or Cash Equivalents) provided by the
Borrowers or any Subsidiary of any Borrower to secure the reimbursement and
other obligations of such Person in respect of such Rolling Letter of Credit;
provided that
the aggregate amount of cash collateral so provided shall in no event exceed
105% of aggregate amount available to be drawn under such Rolling Letter of
Credit).

     

    
      
        
        

      

      
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    “Permitted
Indebtedness” means:

     

    (a) the
Indebtedness listed on Schedule P-2 and
extensions, renewals and replacements thereof;

     

    (b) Indebtedness
of the Credit Parties under this Agreement or other Loan Documents;

     

    (c) purchase
money Indebtedness and Capitalized Lease Obligations incurred after the Closing
Date to acquire equipment or real property in the ordinary course of business;
provided that (i) the
aggregate amount of all such Indebtedness does not exceed five million Dollars
($5,000,000) at any time outstanding, (ii) when incurred, such Indebtedness
shall not be more than 90% of the lesser of the cost or fair market value of the
acquired asset as of the time of acquisition of the asset financed,
(iii) such Indebtedness is issued and any Liens securing such Indebtedness
are created prior to or within 60 days after the acquisition of the asset
financed, and (iv) no Lien securing such Indebtedness shall extend to or
cover any property or asset other than the asset so financed;

     

    (d) intercompany
Indebtedness owed to a Credit Party, which Indebtedness constitutes Pledged
Debt;

     

    (e) Indebtedness
under performance bonds, bid bonds, appeal bonds, surety bonds, completion
guarantees and letter of credit obligations made in the ordinary course of
business (i) in compliance with workers’ compensation, unemployment insurance
and other social security or employment laws or regulations or similar
legislation or to secure public, statutory or regulatory obligations or
(ii) pursuant to any leases specifically permitted by this Agreement
including Mining Leases entered into in the ordinary course of
business;

     

    (f) Contingent
Obligations with respect to endorsements of checks and other negotiable
instruments for deposit or collection;

     

    (g) Guarantees
by a Credit Party of Indebtedness of another Credit Party if such Credit Party
could have directly incurred such Indebtedness hereunder;

     

    (h) to the
extent constituting Contingent Obligations, indemnification obligations and
other similar obligations of the Borrowers and their Subsidiaries in favor of
directors, officers, employees, consultants or agents of the Borrowers or any of
their Subsidiaries extended in the ordinary course of business or to the extent
constituting accruals for payroll, vacation or bonus payments incurred in
the ordinary course of business or pursuant to obligations under employment
agreements;

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    (i) unsecured
Indebtedness incurred in the ordinary course of business in an aggregate amount
for all Credit Parties and its Subsidiaries taken as a whole not to exceed an
amount equal to ten million Dollars ($10,000,000);

     

    (j) any
Operating Lease entered into in the ordinary course of business;

     

    (k) Convertible
Note Debt in an aggregate principal amount not to exceed $175,000,000 at any
time outstanding minus the aggregate
amount of principal payments in respect thereof; provided that (i) the
final maturity of such Indebtedness shall not occur prior to December 1, 2014,
(ii) there shall be no scheduled amortization or mandatory prepayments in cash
(including, without limitation, any full or partial mandatory prepayments in
cash in connection with any conversion or other settlement of any Senior
Convertible Notes) or mandatory repayments in cash (including, without
limitation, any full or partial mandatory repayments in cash in connection with
any conversion or other settlement of any Senior Convertible Notes) of such
Indebtedness prior to December 1, 2014, except, in each case, the payment of cash in
lieu of the issuance of any fractional shares upon the conversion of any Senior
Convertible Note to the holder of such Senior Convertible Note, provided, that the
aggregate amount of all such payments of cash in lieu of the issuance of any
fractional shares made after the Closing Date shall not exceed $2,000,000, and
(iii) all net proceeds from the issuance of such Indebtedness, not otherwise
used for purposes of providing cash collateral for any Rolling Letters Letter of
Credit or for other purposes permitted under this Agreement, shall be maintained
in a Cash Management Account;

     

    (l) Any
Indebtedness assumed in connection with a Permitted Acquisition; provided that
(i) such Indebtedness was not incurred in contemplation of such Permitted
Acquisition and (ii) the aggregate amount of all such Indebtedness assumed in
connection with all such Acquisitions shall not exceed $25,000,000;

     

    (m) any
Permitted Refinancing of any of the foregoing; and

     

    (n) Indebtedness
of the Credit Parties under the Term Credit Agreement in respect of Rolling
Letters of Credit with a stated face amount not to exceed (x) fifty-nine million
eighty-seven thousand three hundred ten Dollars ($59,087,310) minus (y) the
aggregate face amount of all Rolling Letters of Credit that have expired or have
been replaced, reduced, terminated, drawn or returned and cancelled; provided that,
notwithstanding anything to the contrary contained in this Agreement or in any
other Loan Document, Indebtedness permitted under this clause (m) may not be
refinanced, replaced, renewed or otherwise extended in any manner, except that
Rolling Letters of Credit may refinanced or replaced pursuant to a Letter of
Credit Issued under this Agreement.

     

    “Permitted
Investments” means:

     

    (a) cash or
Cash Equivalents in Securities Accounts or Deposit Accounts with respect to
which a Control Agreement has been executed and delivered;

     

    (b) Investments
in negotiable instruments for collection;

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    (c) advances
made in connection with purchases of goods or services in the ordinary course of
business;

     

    (d) Investments
(including obligations owing under Indebtedness) received in connection with the
bankruptcy or reorganization of suppliers and customers and in settlement of
delinquent obligations of, and other disputes with, customers and suppliers
arising in the ordinary course of business;

     

    (e) Investments
by a Credit Party in a Credit Party other than the Borrowers;

     

    (f) Investments
existing on the date hereof in Persons which are Subsidiaries of such Credit
Party on the Closing Date; and

     

    (g) Investments
consisting of non-cash consideration received from the purchaser of assets in
connection with a sale of such assets in an aggregate amount not to exceed one
million Dollars ($1,000,000).

     

    “Permitted Protest”
means the right of a Person to protest any Lien (other than any such Lien that
secures all or any portion of the Obligations) or taxes, provided that (a) a
reserve with respect to such obligation is established, if required, by such
Person in such amount as is required under GAAP, (b) any such protest is
instituted promptly and prosecuted diligently and in good faith by such Person,
and (c) if such Permitted Protest is for an amount in excess of five million
Dollars ($5,000,000), the Administrative Agent shall have determined in the
exercise of its reasonable discretion, that such Lien could not reasonably be or
become senior to, or have or obtain priority over, any Lien in favor of the
Collateral Agent in or to any portion of the Collateral.

     

    “Permitted
Refinancing” means, with respect to any Person, any modification,
refinancing, refunding, renewal or extension of any Indebtedness of such Person;
provided that (a) the
principal amount (or accreted value, if applicable) thereof does not exceed the
principal amount (or accreted value, if applicable) of the Indebtedness so
modified, refinanced, refunded, renewed or extended at the time of such
Permitted Refinancing except by the amount of any fees and expenses incurred in
connection with such modification, refinancing, refunding, renewal or extension,
(b) such modification, refinancing, refunding, renewal or extension has a
final maturity date equal to or later than the final maturity date of the
Indebtedness being modified, refinanced, refunded, renewed or extended and the
weighted average life to maturity is no shorter than the Indebtedness being
refinanced, refunded, renewed or extended, and (c) if the Indebtedness
being modified, refinanced, refunded, renewed or extended is subordinated in
right of payment to the Obligations, such modification, refinancing, refunding,
renewal or extension is subordinated in right of payment to the Obligations on
subordination terms at least as favorable to the Lenders, taken as a whole, as
those contained in the documentation governing the Indebtedness being modified,
refinanced, refunded, renewed or extended, as determined by the board of
directors of such Person.

     

    “Person” means any
individual, corporation, limited liability company, partnership, association,
joint-stock company, trust, unincorporated organization, joint venture or
Governmental Authority.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

       

    

    “Plan” means any
“employee benefit
plan”, as defined in Section 3(3) of ERISA.

     

    “Pledged Debt” shall
have the meaning ascribed to such term in the Security Agreement.

     

    “Prep Plant Lease”
means any Lease entered into by a Credit Party in respect of a preparation plant
and/or a related property on which the preparation plant is situated or in
respect of a Coal Handling Facility.

     

    “Pro Rata Share”
means, with respect to a Lender at any time, a fraction (expressed as a
percentage), the numerator of which is the amount of such Lender’s Commitment at
such time and the denominator of which is the sum of the amounts of all of the
Lenders’ Commitments at such time, or if no Commitments are outstanding at such
time, a fraction (expressed as a percentage), the numerator of which is the
amount of Obligations owed to such Lender at such time and the denominator of
which is the aggregate amount of the Obligations owed to all Lenders at such
time.

     

    “Protective Advances”
has the meaning ascribed to such term in 
SECTION
2.03.

     

    “Property” means any
right or interest in or to property of any kind whatsoever, whether real,
personal or mixed and whether tangible or intangible.

     

    “Real Estate Asset”
means, at any time of determination, any interest in a real property (fee,
leasehold or otherwise) then owned or held by any Borrower or any of its
Subsidiaries.

     

    “Refinancing Facility”
has the meaning ascribed to such term in SECTION
4.04(c).

     

    “Recipient” has the
meaning ascribed to such term in 
SECTION
14.22.

     

    “Register” has the
meaning ascribed to such term in 
SECTION
14.10(d).

     

    “Registered” means
issued by, registered with, renewed by or the subject of a pending application
before any Governmental Authority or Internet domain name
registrar.

     

    “Registered Intellectual
Property” means all Intellectual Property that has been Registered with,
filed in or issued by, as the case may be, the United States Patent and
Trademark Office or such other similar filing offices, domestic or foreign, as
applicable.

     

    “Regulation T”,
“Regulation U”,
and “Regulation X”
mean, respectively, Regulations T, U, and X of the Federal Reserve Board or any
successor, as the same may be amended or supplemented from time to
time.

     

    “Release” means any
spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, leaching, seeping, migrating, dumping or disposing of any Hazardous
Material (including the abandonment or discarding of barrels, containers and
other closed receptacles containing any Hazardous Material) into the
environment, including ambient air, soil, surface or ground water in violation
of any Environmental Law.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    “Remedial Action”
means all actions taken to (a) clean up, remove, remediate, contain, treat,
monitor, assess, evaluate or in any other way address Hazardous Materials in the
environment; (b) prevent or minimize a Release or threatened Release of
Hazardous Materials so they do not migrate or endanger or threaten to endanger
public health or welfare or the environment; (c) perform pre-remedial
studies and investigations and post-remedial operation and maintenance
activities; or (d) any other actions authorized by 42 U.S.C.
§ 9601.

     

    “Reportable Event”
means any of the events described in Section 4043(c) of ERISA or the regulations
thereunder other than a Reportable Event as to which the provision of 30 days’
notice to the Pension Benefit Guaranty Corporation is waived under applicable
regulations.

     

    “Required Lenders”
means, as of any date of determination, the Lenders whose Pro Rata Shares equal
more than 50% of the aggregate Revolver Exposure; provided, however, that at any
time there shall be more than one Lender, “Required Lenders” shall mean at least
two non-Affiliated Lenders whose Pro Rata Shares equal more than 50% of the
aggregate Revolver Exposure.

     

    “Requirements of Law”
means, as to any Person, the charter and by-laws or other organizational or
Governing Documents of such Person, and any law, ordinance, rule, regulation,
requirement, or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject, including,
without limitation, Mining Laws, the Patriot Act, the Securities Act, the
Securities Exchange Act, Regulations T, U and X, ERISA, the Internal Revenue
Code, the Fair Labor Standards Act and any certificate of occupancy, zoning
ordinance, building, environmental or land use requirement or Permit or
environmental, labor, employment, occupational safety or health law, rule or
regulation.

     

    “Reserves” has the
meaning ascribed to such term in 
SECTION
2.01(b).

     

    “Restricted Payments”
means, with respect to any Person (a) any dividend or other distribution,
direct or indirect, on account of any shares of any Equity Interest of such
Person now or hereafter outstanding, (b) any redemption, retirement,
sinking fund or similar payment, purchase or other acquisition for value, direct
or indirect, of any Equity Interest of, such Person now or hereafter
outstanding, (c) any payment or prepayment of principal of, premium, if
any, or interest, fees or other charges on or with respect to, and any
redemption, purchase, retirement, defeasance, sinking fund or similar payment
and any claim for rescission with respect to any Indebtedness which is
contractually subordinated to the Obligations, and (d) any payment made to
redeem, purchase, repurchase or retire, or to obtain the surrender of, any
outstanding warrants, options or other rights to acquire shares of any class of
capital stock of, partnership interest of or other Equity Interest of, such
Person now or hereafter outstanding.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    “Revolver Priority
Collateral” has the meaning ascribed to such term in the Intercreditor
Agreement; provided, however, that at such
time as the Term Credit Agreement, the commitments of the lenders and agents
thereunder, the Term Loan Obligation (other than contingent indemnity
obligations not yet due and payable), and “Term Letter of Credit Obligation” (as
defined in the Term Credit Agreement (other than contingent indemnity
obligations not yet due and payable)), and Rolling Letters of Credit maintained
thereunder shall have each been terminated in full or are no longer outstanding,
“Revolver Priority Collateral” shall mean all Collateral.

     

    “Revolving Advance”
has the meaning ascribed to such term in 
SECTION 2.01(a) and
shall include Existing Revolving Advances.

     

    “Rolling Letters of
Credit” means all Term Letters of Credit that have been, as of the
Closing Date, continued under and in accordance with the Term Credit Agreement
after the termination of the “Commitments” (including, without limitation, the
“Term Letter of Credit Commitment”) under and as defined in the Term Credit
Agreement, pursuant to arrangements (including, without limitation, cash
collateral arrangements) reasonably satisfactory to the Administrative
Agent.

     

    “S&P” means
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., and any successor thereto.

     

    “Sale and Leaseback”
has the meaning ascribed to such term in 
SECTION
9.08.

     

    “SEC” means the
Securities and Exchange Commission or any other similar or successor agency of
the Federal government administering the Securities Act.

     

    “Securities” means any
capital stock, shares, voting trust certificates, bonds, debentures, notes,
loans or other evidences of indebtedness, secured or unsecured, convertible,
subordinated or otherwise, or any certificates of interest, shares or
participations in temporary or interim certificates for the purchase or
acquisition of, or any right to subscribe to, purchase or acquire any of the
foregoing, but shall not include the Obligations.

     

    “Securities Account”
shall have the meaning provided in Section 8-501(a) of the
UCC.

     

    “Securities Act” means
the Securities Act of 1933, as amended, or any successor Federal statute, and
the rules and regulations of the SEC thereunder, all as the same shall be in
effect at the time.

     

    “Securities Exchange
Act” means the Securities Exchange Act of 1934, as amended or any
successor Federal statute, and the rules and regulations of the SEC thereunder,
all as the same shall be in effect at the time.

     

    “Security Agreement”
means the Pledge and Security Agreement, dated as of the Original Closing Date,
among the Borrowers, the Grantors identified therein and the Collateral Agent,
as such agreement may be amended, supplemented or otherwise modified from time
to time in accordance therewith and herewith.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    “Security Documents”
means the Security Agreement, the Borrowing Base Cash Collateral Agreement, each
Mortgage, the UCC financing statements, the Control Agreements, and any other
documents granting or perfecting a Lien upon any portion of the Collateral as
security for all or any part of the Obligations, including all Security
Documents delivered after the Closing Date pursuant to 
SECTION 8.08 or
otherwise.

     

    “Senior Convertible
Notes” means the 4.50% Convertible Senior Notes Due 2015 issued pursuant
to the Senior Convertible Notes Indenture.

     

    “Senior Convertible Notes
Indenture” means that certain Indenture dated as of November 20, 2009
between James River Coal Company and U.S. Bank National Association, as Trustee
for 4.50% Convertible Senior Notes due 2015.

     

    “Senior Funded
Indebtedness” means the Loans (including any outstanding Letter of Credit
hereunder) and the outstanding amount of all Obligations (as that term is
defined in the Term Credit Agreement in effect as of the date hereof), provided, however, that Senior
Funded Indebtedness shall exclude (a) any outstanding Letter of Credit issued
hereunder to the extent that such outstanding Letter of Credit is Cash
Collateralized in a manner contemplated under and in accordance with the terms
and conditions set forth in Annex A to this
Agreement, and (b) any outstanding Term Letter of Credit (as that term is
defined in the Term Credit Agreement in effect as of the date hereof) or any
Rolling Letter of Credit to the extent that such outstanding Term Letter of
Credit or Rolling Letter of Credit, as applicable, is cash collateralized in a
manner contemplated under and in accordance with the terms and conditions set
forth in the Term Credit Agreement or, in the case of Rolling Letters of Credit,
this Agreement.

     

    “Senior Officer”
means, with respect to any Credit Party, such Credit Party’s president, chief
executive officer, chief administrative officer, chief operating officer, chief
financial officer or chief accounting officer.

     

    “Senior Notes” means
the 9.375% Senior Notes Due 2012 issued pursuant to the Indenture.

     

    “Solvent” or “Solvency” of any
person means (a) the fair value of the property of such person exceeds its
total liabilities (including, without limitation, contingent liabilities),
(b) the present fair saleable value of the assets of such person is not
less than the amount that will be required to pay its probable liability on its
existing debts as they become absolute and matured, (c) such person does
not intend to incur debts or liabilities beyond its ability to pay, as such
debts and liabilities mature, and (d) such person is not engaged, and is
not about to engage, in business or a transaction for which its property would
constitute an unreasonably small capital.  The amount of contingent
liabilities at any time shall be computed as the amount that, in the light of
all the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured
liability.

     

    “Special Flood Hazard
Area” means an area that FEMA’s current flood maps indicate has at least
a one percent (1%) chance of a flood equal to or exceeding the base flood
elevation (a 100-year flood) in any given year.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    “Subsidiary” means,
with respect to any Person at any date, any corporation, limited or general
partnership, limited liability company, trust, association or other entity
(a) the accounts of which would be consolidated with those of such Person
in such Person’s consolidated financial statements if such financial statements
were prepared in accordance with GAAP, or (b) of which more than 50% of
(i) the outstanding capital stock having (in the absence of contingencies)
ordinary voting power to elect a majority of the board of directors of such
corporation, (ii) the interest in the capital or profits of such
partnership or limited liability company, or (iii) the beneficial interest
in such trust or estate is, in respect to each of (i), (ii) and (iii) above, at
the time of determination, owned or controlled directly or indirectly through
one or more intermediaries, by such Person.

     

    “Supermajority
Lenders” means, as of any date of determination, the Lenders whose Pro
Rata Shares equal more than 80% of the aggregate Revolver Exposure.

     

    “Taxes” has the
meaning ascribed to such term in 
SECTION
3.04(a).

     

    “Term Credit
Agreement” means that certain Term Credit Agreement among the Borrowers,
the Guarantors, Morgan Stanley Senior Funding, Inc. as administrative agent and
Morgan Stanley & Co. Incorporated as collateral agent dated as of February
26, 2007.

     

    “Term Letters of
Credit” means each of the letters of credit which was, on its original
date of issuance, issued for the account of any Borrower or any of their
Subsidiaries under the Term Credit Agreement prior to the termination of the
“Commitments” (including, without limitation, the “Term Letter of Credit
Commitment”) under and as defined in the Term Credit Agreement.

     

    “Term Loan Agent”
means Morgan Stanley Senior Funding, Inc. in its capacity as administrative
agent under the Term Credit Agreement and any successor thereto.

     

    “Term Loan
Obligations” means an aggregate principal amount equal to (a) fifty-nine
million eighty-seven thousand three hundred ten Dollars ($59,087,310) minus (b) the
aggregate face amount of all Rolling Letters of Credit that have expired or have
been replaced, reduced, terminated, drawn or returned and cancelled plus (c) without
duplication of any amounts set forth in clause (a), all drawn
and unreimbursed amounts, and unpaid fees and other obligations and liabilities
under or relating to such Rolling Letters of Credit.

     

    “Trademarks” means all
United States, state and foreign trademarks, trade names, corporate names,
company names, business names, fictitious business names, internet domain names,
trade dress, service marks, certification marks, collective marks, logos, all
indicators of the source of goods or services, designs and general intangibles
of a like nature, all registrations and applications for any of the foregoing
including, but not limited to the registrations and applications referred to in 
SECTION 6.01(w) (as
such schedule may be amended or supplemented from time to time), but excluding
in all cases all intent-to-use United States trademark applications for which an
amendment to allege use or statement of use has not been filed under 15 U.S.C. §
1051(c) or 15 U.S.C. § 1051(d), respectively, or if filed, has not been deemed
in conformance with 15 U.S.C. § 1051(a) or examined and accepted, respectively,
by the United States Patent and Trademark Office, all extensions or renewals of
any of the foregoing, all of the goodwill of the business connected with the use
of and symbolized by the foregoing, the right to sue for past, present and
future infringement or dilution of any of the foregoing or for any injury to
goodwill, and all proceeds of the foregoing, including licenses, royalties,
income, payments, claims, damages, and proceeds of suit, which are owned or
licensed by a Credit Party.

     

    
      
        
        

      

      
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    “Trade Secrets” means
all trade secrets and all other confidential or proprietary information and
know-how including drawings, formulae, schematics, designs, plans, processes,
supplier lists, business plans, business methods and prototypes now or hereafter
owned or used in the business of such Credit Party throughout the world, whether
or not such Trade Secret has been reduced to a writing or other tangible form,
including all documents and things embodying, incorporating, or referring in any
way to such Trade Secret, the right to sue for past, present and future
infringement of any Trade Secret, and all proceeds of the foregoing, including
licenses, royalties, income, payments, claims, damages, and proceeds of
suit.

     

    “Trigger Event
Period” means any period (a) commencing upon the date that Unrestricted
Cash is less than $75,000,000 and (b) ending on the date that Unrestricted Cash
for a period of ninety (90) consecutive calendar days equals or exceeds
$75,000,000.

     

    “UBS AG” means UBS AG,
Stamford Branch, an Affiliate of UBS Loan Finance LLC.

     

    “UCC” means the
Uniform Commercial Code enacted in the State of New York, as amended from time
to time; provided that if by reason of
mandatory provisions of law, the perfection, the effect of perfection or
non-perfection or priority is governed by the Uniform Commercial Code as in
effect in a jurisdiction other than New York, “UCC” means the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of
the provisions hereof relating to such perfection, effect of perfection or
non-perfection or priority.

     

    “Unrestricted Cash”
means unrestricted domestic cash on hand and Cash Equivalents of the Credit
Parties (to the extent such cash or Cash Equivalents are held in an account
subject to a Control Agreement and as to which Administrative Agent shall have a
first priority perfected Lien and not subject to any other Lien (other than any
right of set-off or other Lien expressly granted under such Control Agreement to
the depository or other financial institution at which such account is
maintained)); provided that none of
(i) the Cash Collateral, (ii) any cash or Cash Equivalents subject to Liens
described in clause (k) of the definition of “Permitted Encumbrances”, or (iii)
at any time after the earlier to occur of (x) August 22, 2010 and (y) the date
that no Rolling Letters of Credit shall remain outstanding, the Borrowing Base
Cash Collateral, shall be included in the determination of Unrestricted
Cash.

     

    “Unused Commitment
Fee” has the meaning ascribed to such term in 
SECTION
4.04(a).

     

    “Wholly-Owned” means,
when used to describe any Subsidiary of a Credit Party, that all of the capital
stock (other than directors’ qualifying shares) of or other Equity Interests in
such Subsidiary is owned directly or indirectly by one or more Credit Parties or
by other Wholly-Owned Subsidiaries of a Credit Party.

     

    
      
        
        

      

      
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    SECTION
1.02 Terms
Generally.  The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined.  Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will” shall be construed to have the same
meaning and effect as the word “shall”.  Unless the context requires
otherwise, (a) any definition of or reference to any agreement, instrument
or other document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the
words “herein”, “hereof” and “hereunder”, and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular
provision hereof, and (d) all references herein to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement, (e) any reference to any law
or regulation herein shall, unless otherwise specified, refer to such law or
regulation as amended, modified or supplemented from time to time and
(f) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract
rights.

     

    SECTION
1.03 Accounting and Other
Terms.  Unless otherwise expressly provided herein, each
accounting term used herein shall have the meaning given to it under
GAAP.  All terms used in this Agreement which are defined in
Article 8 or Article 9 of the UCC and which are not otherwise defined
herein shall have the same meanings herein as set forth therein.

     

    SECTION
1.04 Time
References.  Unless otherwise indicated herein, all references
to time of day refer to Eastern standard time or Eastern daylight saving time,
as in effect in New York, New York on such day.  For purposes of the
computation of a period of time from a specified date to a later specified date,
the word “from” means “from and including” and the words “to” and “until” each
means “to but excluding”; provided, however, that with
respect to a computation of fees or interest payable to the Administrative
Agent, the Lenders and the L/C Issuers, such period shall in any event consist
of at least one full day.

     

    ARTICLE
II

    THE
FACILITY

     

    SECTION
2.01 Revolving
Advances.

     

    (a) Commitments.  Subject
to the terms and conditions of this Agreement, and during the term of this
Agreement, each Lender agrees (severally, not jointly or jointly and severally)
to make advances (each a “Revolving Advance”)
to the Borrowers in an amount at any one time outstanding not to exceed such
Lender’s Commitment at such time; provided, however, that, after
giving effect to any Revolving Advance, the Aggregate Revolver Exposure shall
not exceed the Maximum Amount.  All Existing Revolving Advances shall
be deemed to have been made pursuant hereto, and from and after the Closing Date
shall be subject to and governed by the terms and conditions
hereof.

     

    
      
        
        

      

      
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    (b) Anything
to the contrary in this 
SECTION 2.01
notwithstanding, the Administrative Agent shall have the right to establish
(without duplication) reserves against the Borrowing Base in such amounts, and
with respect to such matters, as the Administrative Agent in its reasonable
credit judgment shall deem necessary or appropriate, including (i) reserves with
respect to (A) sums that Borrowers are required to pay by any Section of this
Agreement or any other Loan Document (such as taxes, assessments, insurance
premiums, or, in the case of leased assets, rents or other amounts payable under
such leases) and have failed to pay, and (B) amounts owing by Borrowers or their
Subsidiaries to any Person to the extent secured by a Lien on, or trust over,
any of the Collateral (other than Liens on Collateral that is not included in
the Borrowing Base in favor of the collateral agent under the Term Credit
Agreement), which Lien or trust, in the discretion of the Administrative Agent
likely would have a priority superior to the Collateral Agent’s Lien (such as
Liens or trusts in favor of landlords, warehousemen, carriers, mechanics,
materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise,
sales, or other taxes where given priority under Applicable Law) in and to such
item of the Collateral, (ii) reserves for obligations owed to financial
institutions in which Deposit Accounts or Securities Accounts are maintained,
(iii) a reserve for accrued, unpaid interest then due on the Obligations, (iv)
reserves for rent at a leased, warehouse or bailment location for which the
Collateral Agent has not received a collateral access or similar agreement,
which reserve shall be in an amount equal to the lesser of (x) 3 months’ rent or
(y) applicable Availability provided by the Eligible Inventory at such location,
and reserves for other statutory liens, (v) reserves against availability from
Inventory for shrinkage consistent with historical or industry experience in
excess of shrinkage taken into account in the calculation of the value of
Eligible Inventory, (vi) reserves for taxes, assessments, charges and other
governmental levies which are delinquent, (vii) reserves against availability
from Accounts for dilution in excess of five percent (5%), (viii) royalties
payable by any Credit Party in connection with any Mining Lease or other similar
arrangement to the owners of any Real Estate Asset on account of extracted coal
from such Real Estate Asset or mining, gathering, extraction, loading,
production, treatment, processing, storage or transportation of coal and other
minerals (including, without limitation, accrued wheelage) on such Real Estate
Asset, (ix) the KRP Claims Reserve, and (x) reserves with respect to such other
matters as the Administrative Agent in its reasonable credit judgment shall deem
necessary or appropriate (together, “Reserves”).

     

    (c) Amounts
borrowed pursuant to this 
SECTION 2.01 may be
repaid and, subject to the terms and conditions of this Agreement, reborrowed at
any time during the term of this Agreement.

     

    (d) Borrowing
Request.  If the Borrowers desire to borrow Revolving Advances
under 
SECTION 2.01(a), the
Administrative Borrower shall deliver to the Administrative Agent a Borrowing
Request signed by the Administrative Borrower in substantially the form attached
as Exhibit B-1 not
later than 11:00 a.m. (i) in the case of a request for a Base Rate Loan, on
the proposed Funding Date or (ii) in the case of a request for a LIBOR Rate
Loan, at least three (3) Business Days in advance of the proposed Funding
Date.  Such Borrowing Request shall specify:  (A) the
aggregate principal amount of Revolving Advances to be made on the Funding Date;
(B) whether such Revolving Advances shall be comprised of LIBOR Rate
Loans or Base Rate Loans; (C) the proposed Funding Date, which must be a
Business Day; and (D) if applicable, the LIBOR Period for such Revolving
Advances.  Each borrowing of a Revolving Advance under 
SECTION 2.01(a)
shall, in the case of LIBOR Rate Loans, be in an amount equal to $1,000,000 or a
whole multiple of $100,000 in excess thereof.

     

    
      
        
        

      

      
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    (e) Making the Revolving
Advances.

     

    (i) The
Administrative Agent shall promptly notify each Lender of the amount of each
borrowing requested by the Borrowers.  Each Lender shall make an
amount equal to its Pro Rata Share of the amount of such borrowing available to
the Administrative Agent by wire transfer to the Administrative Agent’s Account
in immediately available funds, not later than 1:00 p.m. on the Funding Date
applicable thereto.  Subject to the satisfaction of the conditions
precedent set forth in 
ARTICLE V, the
Administrative Agent shall make the proceeds of such amounts received by it
available to the Borrowers on such Funding Date. All Revolving Advances made
hereunder shall be made available to the Borrowers at the Borrower Funding
Account.

     

    (ii) Except as
otherwise provided in this 
SECTION 2.01
 (f), all Revolving
Advances under this Agreement shall be made by the Lenders simultaneously and
proportionately to their Pro Rata Shares.  The failure of any Lender
to deposit the amount described in clause (i) above
with the Administrative Agent on the applicable Funding Date shall not relieve
any other Lender of its obligations hereunder to make its Revolving Advance on
such Funding Date.  Except as set forth herein, no Lender shall be
responsible for any failure by any other Lender to perform its obligation to
make a Revolving Advance hereunder nor shall the Commitment of any Lender be
increased or decreased as a result of any such failure, and each Lender shall be
obligated to make the Revolving Advances required to be made by it by the terms
of this Agreement regardless of the failure by any other Lender.

     

    (f) Funding of Revolving
Advances.  Unless the Administrative Agent shall have received
notice from a Lender, prior to the requested Funding Date, that such Lender will
not make available to the Administrative Agent such Lender’s Pro Rata Share of
such Revolving Advance, the Administrative Agent may, but shall not be required
to, assume that such Lender has made such share available by such time in
accordance with 
SECTION 2.01
 (f) and may in its
sole discretion, but shall not be required to, in reliance upon such assumption,
make available to the Borrowers a corresponding amount.  If such Pro
Rata Share is not, in fact, paid to the Administrative Agent by such Lender when
due, the Administrative Agent will be entitled to recover such amount on demand
from such Lender without setoff, counterclaim or deduction of any
kind.  If any Lender fails to pay the amount of its Pro Rata Share
forthwith upon the Administrative Agent’s demand, the Administrative Agent shall
promptly notify the Administrative Borrower and the Borrowers shall immediately
repay such amount to the Administrative Agent.  Nothing in this 
SECTION 2.01
 (f) or elsewhere in
this Agreement or the other Loan Documents shall be deemed to require the
Administrative Agent to advance funds on behalf of any Lender or to relieve any
Lender from its obligation to fulfill its Commitments hereunder or to prejudice
any rights that the Borrowers may have against any Lender as a result of any
default by such Lender hereunder.  Without limiting the foregoing, to
the extent that the Administrative Agent advances funds to the Borrowers on
behalf of any Lender and is not reimbursed therefor on the same Business Day as
such advance is made, the Administrative Agent shall be entitled to retain for
its account all interest accrued on such advance from the date such advance was
made until reimbursed by the applicable Lender.

     

    
      
        
        

      

      
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    (g) Repayment of Revolving
Advances; Termination of Commitments.  The principal amount of,
interest on and fees related to all outstanding Revolving Advances shall be
repaid in full on the Maturity Date and any outstanding Letters of Credit shall
be returned for cancellation or Cash Collateralized in the manner provided in
Annex
A.  The Commitments shall terminate on the Maturity
Date.

     

    (h) Letter of Credit
Subfacility.  Subject to and in accordance with the terms and
conditions contained herein and in Annex A to this
Agreement, the Borrowers shall have the right to request, and the L/C Issuer
agrees to issue, Letters of Credit and the Lenders agree to incur, or purchase
participations in, Letter of Credit Usage in respect of the
Borrowers.

     

    SECTION
2.02 Use of
Proceeds.  Proceeds of the Loans shall be utilized to:
(a) refinance certain existing secured indebtedness and replace or
refinance Rolling Letters of Credit which are outstanding on the Closing Date,
(b) pay fees and expenses associated with the Loans and (c) provide
for working capital and other general corporate purposes; provided that, unless and
until all of the Rolling Letters of Credit have been replaced or refinanced, any
Loans which cause the aggregate amount of all Loans outstanding at any one time
to exceed $35,000,000 shall be utilized to replace or refinance the Rolling
Letters of Credit which are outstanding on the Closing Date.  Except
as set forth in SECTION 9.02, no
portion of the Loans may be used to fund voluntary prepayments of the Term Loan
Obligations.

     

    SECTION
2.03 Protective
Advances.  The Collateral Agent hereby is authorized by the
Borrowers and the Lenders, from time to time in the Collateral Agent’s sole
discretion, (a) after the occurrence and during the continuance of a
Default or Event of Default, or (b) at any time that any of the other
applicable conditions precedent set forth in 
SECTION 5.02 are not
satisfied, to make loans to the Borrowers (“Protective Advances”)
in an aggregate amount not to exceed six million five hundred thousand Dollars
($6,500,000) that the Collateral Agent, in its sole discretion, deems necessary
or desirable (i) to preserve or protect the Collateral, or any portion
thereof, (ii) to enhance the likelihood of repayment of the Obligations or
(iii) to pay any other amount chargeable to the Borrowers pursuant to the
terms of this Agreement, including Lender Expenses and the costs, fees and
expenses pursuant to this Agreement, provided that Protective
Advances shall not cause the amount of the Loans to exceed the Maximum Revolver
Amount.  The Collateral Agent shall promptly notify the Administrative
Borrower of any Protective Advances made to the Borrowers.

     

    Each
Protective Advance shall be deemed to be a Loan hereunder.  The
Protective Advances shall be repayable on demand and shall be secured
Obligations pursuant to the Security Documents, and shall bear interest at the
default rate set forth in 
SECTION 4.01(b) for
Loans that are Base Rate Loans.  The provisions of this 
SECTION 2.03 are for
the exclusive benefit of the Agents and the Lenders and the Collateral Agent has
no obligation to make Protective Advances.

     

    
      
        
        

      

      
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    SECTION
2.04 Promise to
Pay.  Each of the Borrowers, jointly and severally, agrees to
pay (a) the principal amount of the Loans in full on the Maturity Date or
such earlier date as they may become due and payable, whether by operation of 
SECTION 3.02, by
acceleration or otherwise, (b) all fees and other amounts due under the
Agents Fee Letter due on the Closing Date and from time to time after the
Closing Date when due, (c) all Lender Expenses on demand, (d) all
unpaid interest accrued, in accordance with the terms of this Agreement and any
applicable Note or such earlier date as such amounts may become due and payable,
whether by acceleration or otherwise, (e) all issuance charges and other
amounts when due to each L/C Issuer in accordance with Annex A, this
Agreement, and other documentation between a Borrower and each such L/C Issuer,
(e) all mandatory prepayments when due under this Agreement, and (f) all other
Obligations when due under this Agreement.

     

    SECTION
2.05 Notes.

     

    (a) The
Borrowers’ obligation to pay the principal of, and interest on, the Loans made
to the Borrowers by each Lender shall be set forth on the Register maintained by
the Administrative Agent and, subject to the provisions of

SECTION 2.05
 (c), shall be
evidenced by, at the request of the applicable Lender, a promissory note
substantially in the form of Exhibit N-1,
with blanks appropriately completed in conformity herewith (each, as the same
may be amended, supplemented or otherwise modified from time to time, a “Note”).

     

    (b) The Note
issued to each requesting Lender shall (i) be executed jointly by each of
the Borrowers, (ii) be payable to such Lender or its registered assigns and
be dated the Closing Date (or, in the case of any Note issued after the Closing
Date, the date of issuance thereof), (iii) be in a stated principal amount
equal to such Lender’s Commitment on the Closing Date or on the date of the
issuance thereof (if issued after the Closing Date) and be payable in the
principal amount of Revolving Advances evidenced thereby from time to time,
(iv) mature on the Maturity Date, (v) bear interest as provided herein
and (vi) be entitled to the benefits of this Agreement and the other Loan
Documents.

     

    (c) Notwithstanding
anything to the contrary contained above or elsewhere in this Agreement, Notes
shall only be delivered to Lenders which at any time specifically request the
delivery of such Notes.  No failure of any Lender to request or obtain
a Note evidencing its Loans to the Borrowers shall affect or in any manner
impair the obligation of the Borrowers to pay the Loans (and all related
Obligations) which would otherwise be evidenced thereby in accordance with the
requirements of this Agreement, and shall not in any way affect the security or
Guaranties therefor provided pursuant to the Loan Documents.  At any
time when any Lender requests the delivery of a Note to evidence any of its
Loans, each Borrower shall promptly jointly execute and deliver to that Lender
the requested Note in the appropriate amount or amounts to evidence such
Loans.

     

    SECTION
2.06 Authorized Officers and
Administrative Agent.

     

    (a) On the
Closing Date and from time to time thereafter as necessary to reflect changes in
the Authorized Officers, the Administrative Borrower shall deliver to the
Administrative Agent a secretary’s certificate setting forth the names of the
Senior Officers or other agents of the Administrative Borrower authorized to
request Loans and containing a specimen signature of each such officer or
agent.  The Administrative Agent shall be entitled to rely
conclusively on such officer’s or agent’s authority to request Loans until the
Administrative Agent receives written notice to the contrary.  In
addition, each Agent shall be entitled to rely conclusively on any written
notice sent to it by telecopy.  No Agent shall have any duty to verify
the authenticity of the signature appearing on, or any telecopy or facsimile of,
any written Borrowing Request, or any other document.  None of the
Agents, the L/C Issuers or the Lenders shall incur any liability to the
Borrowers, or any other Person in acting upon any telecopy or facsimile notice
referred to above which any Agent in good faith reasonably believes to have been
given by a duly authorized Senior Officer, agent or other person authorized to
borrow in the name of the Administrative Borrower on behalf of the Borrowers
except in the case of gross negligence or willful misconduct by such Agent as
determined in a final judgment by a court of competent
jurisdiction.

     

    
      
        
        

      

      
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    SECTION
2.07 Joint and Several Liability
of the Credit Parties.  Each Borrower is part of a group of
affiliated Persons, and each Borrower expects to receive substantial direct and
indirect benefits from the extension of the credit facility established pursuant
to this Agreement.  In consideration of the foregoing, each Borrower
hereby irrevocably and unconditionally agrees that it is jointly and severally
liable for all of the liabilities, obligations, covenants and agreements of the
Borrowers hereunder and under the other Loan Documents, whether now or hereafter
existing or due or to become due.  The obligations of the Borrowers
under the Loan Documents may be enforced by the Agents and the Lenders against
any Borrower or all Borrowers in any manner or order selected by any Agent or
the Required Lenders in their sole discretion.  Each Borrower hereby
irrevocably waives (x) any rights of subrogation and (y) any rights of
contribution, indemnity or reimbursement, in each case, that it may acquire or
that may arise against any other Borrower due to any payment or performance made
under this Agreement, in each case until all Obligations (other than contingent
indemnification Obligations to the extent no claim giving rise thereto has been
asserted) shall have been fully satisfied. Without limiting the foregoing
provisions of this SECTION 2.07, each
Borrower acknowledges and agrees that:

     

    (a) its
obligations under this Agreement shall remain enforceable against it even though
such obligations may be unenforceable or not allowable against any other
Borrower due to the existence of an insolvency proceeding involving any other
Borrower;

     

    (b) its
obligations under this Agreement are independent of the obligations of any other
Borrower, and a separate action or actions may be brought and prosecuted against
it in respect of such obligations irrespective of whether any action is brought
against any other Borrower or any other Borrower is joined in any such action or
actions;

     

    (c) it hereby
irrevocably waives any defenses it may now have or hereafter acquire in any way
relating to, any or all of the following:

     

    (i) any lack
of validity or enforceability of this Agreement, any other Loan Document or any
agreement or instrument relating hereto or thereto in respect of any other
Borrower;

     

    (ii) any
change in the time, manner or place of payment of, or in any other term of, all
or any of the obligations of any other Borrower under or in respect of this
Agreement, the other Loan Documents, or any other amendment or waiver of or any
consent to departure from this Agreement or any other Loan Document, in respect
of any other Borrower;

     

    
      
        
        

      

      
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    (iii) any
change, restructuring or termination of the structure or existence of any other
Borrower;

     

    (iv) the
failure of any other Person to execute or deliver any other agreement or the
release or reduction of liability of any other Person with respect to any
obligations of the Borrowers under this Agreement or any other Loan
Document;

     

    (v) any other
circumstance (including any statute of limitations but other than the
Obligations having been fully satisfied) or any existence of or reliance on any
representation by any other Person that might otherwise constitute a defense
available to, or a discharge of, any other Borrower; or

     

    (vi) the
application of any Loan proceeds to, or the extension of any other credit for
the benefit of, any other Borrower, any other Credit Party, or any of their
Subsidiaries;

     

    (d) its
obligations under this Agreement and the other Loan Documents shall continue to
be effective or be reinstated, as the case may be, if at any time any payment of
any such obligations is rescinded or must otherwise be returned by any Person
upon the insolvency, bankruptcy or reorganization of any other Borrower, all as
though such payment had not been made; and

     

    (e) it hereby
unconditionally and irrevocably waives any right to revoke its joint and several
liability under the Loan Documents and acknowledges that such liability is
continuing in nature and applies to all obligations of the Borrowers under the
Loan Documents, whether existing now or in the future.

     

    SECTION
2.08 Loan Account and
Accounting.  The Administrative Agent shall maintain a loan
account (the “Loan
Account”) on its books to record:  all Revolving Advances and
Letter of Credit Usage, all payments made by Borrowers, and all other debits and
credits as provided in this Agreement with respect to the Loans or any other
Obligations.  All entries in the Loan Account shall be made in
accordance with the Administrative Agent’s customary accounting practices as in
effect from time to time.  The balance in the Loan Account, as
recorded on the Administrative Agent’s most recent printout or other written
statement, shall, absent manifest error, be presumptive evidence of the amounts
due and owing to the Administrative Agent and Lenders by each Borrower; provided that any
failure to so record or any error in so recording shall not limit or otherwise
affect any Borrower’s duty to pay the Obligations.  The Administrative
Agent shall render to the Administrative Borrower a monthly accounting of
transactions with respect to the Loans setting forth the balance of the Loan
Account as to the Borrowers for the immediately preceding
month.  Unless the Administrative Borrower notifies the Administrative
Agent in writing of any objection to any such accounting (specifically
describing the basis for such objection), within thirty (30) days after the date
thereof, each and every such accounting shall be presumptive evidence of all
matters reflected therein.  Only those items expressly objected to in
such notice shall be deemed to be disputed by
Borrowers.  Notwithstanding any provision herein contained to the
contrary, any Lender may elect (which election may be revoked) to dispense with
the issuance of Notes to that Lender and may rely on the Loan Account as
evidence of the amount of Obligations from time to time owing to
it.

     

    
      
        
        

      

      
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    SECTION
2.09 Application of Payments and
Proceeds.

     

    (a) (i)  So
long as no Event of Default has occurred and is continuing, (A) all
Revolver Priority Collateral and all payments consisting of proceeds of Revolver
Priority Collateral shall be paid to the Administrative Agent for application to
the Revolving Advances; (B) voluntary prepayments permitted under this
Agreement shall be applied as specified by the Administrative Borrower; and
(C) mandatory prepayments shall be applied as set forth in 
SECTION
3.02(c).  Provided that each Lender has funded all payments
required to be made by it and funded all purchases of participations required to
be funded by it under this Agreement and the other Loan Documents, the
Administrative Agent shall pay to each Lender such Lender’s Pro Rata Share (as
increased in accordance with the reallocation and assumption required by the
second sentence of paragraph (f) of
Annex A until
such time as such Lenders have received payment in full of the Aggregate Excess
Funding Amount) of principal, interest and fees paid by the Borrowers for the
benefit of such Lender on the Aggregate Revolver Exposure held by
it.  The Administrative Agent shall be entitled to set off the funding
shortfall against any Non-Funding Lender’s Pro Rata Share of all payments
received from the Borrowers, after making payment in full of the Aggregate
Excess Funding Amount to the funding Lenders thereof, and hold with the
Collateral Agent, in a non-interest bearing account, all remaining portions of
any payments received by the Administrative Agent for the benefit of any
Non-Funding Lender pursuant to this Agreement as cash collateral for any
unfunded reimbursement obligations of such Non-Funding Lender until the
Obligations are paid in full in cash, all Letter of Credit Usage have been
discharged or cash collateralized and all Commitments have been terminated, and
upon such unfunded obligations owing by a Non-Funding Lender becoming due and
payable, the Administrative Agent shall be authorized to use such cash
collateral to make such payment on behalf of such Non-Funding
Lender.  Any amounts owing by a Non-Funding Lender to the
Administrative Agent or the Collateral Agent which are not paid when due shall
accrue interest at the interest rate applicable during such period to Loans that
are Base Rate Loans.

     

    (ii) As to any
other payment, and as to all payments made when an Event of Default has occurred
and is continuing or following the Maturity Date, each Borrower hereby
irrevocably waives the right to direct the application of any and all payments
received from or on behalf of such Borrower, and each Borrower hereby
irrevocably agrees that the Administrative Agent shall have the continuing
exclusive right to apply any and all such payments against the Obligations of
Borrowers as the Administrative Agent may deem advisable notwithstanding any
previous entry by the Administrative Agent in the Loan Account or any other
books and records.  In all circumstances, after acceleration or
maturity of the Obligations, all payments and proceeds of Collateral shall be
applied to amounts then due and payable in the following order:  (A)
to the payment of any Protective Advances funded by the Collateral Agent; (B)
fees, costs and expenses, including Lender Expenses, of Agents payable or
reimbursable by the Credit Parties under the Loan Documents; (C) to payment of
Lender Expenses of Lenders payable or reimbursable by the Borrowers under this
Agreement; 

     

    
      
        
        

      

      
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    (D) to
payment of all accrued unpaid interest on the Obligations and fees owed to
Agents, Lenders and L/C Issuers; (E) to payment of principal of the Obligations
including, without limitation, to the payment of unreimbursed draws or payments
made by the L/C Issuers under Letters of Credit; (F) to the cash
collateralization of contingent Letter of Credit Usage obligations to the extent
not then due and payable); (G) to all other Obligations; and (H) any remainder
shall be for the account of and paid to whoever may be lawfully entitled
thereto.  In carrying out the foregoing, amounts received shall be
applied equally and ratably in the numerical order provided until exhausted
prior to the application to the next succeeding category.

     

    (b) The
Administrative Agent is authorized to, and at its sole election may, charge to
the Loan Account on behalf of each of the Borrowers and cause to be paid all
fees, expenses, charges, costs and other amounts owing or payable by Borrowers
under this Agreement or any of the other Loan Documents if and to the extent
Borrowers fail to pay promptly any such amounts as and when due, even if the
amount of such charges would exceed Availability at such time or would cause the
balance of the Revolving Advances to exceed the Borrowing Base after giving
effect to such charges.  At the Administrative Agent’s option and to
the extent permitted by law, any charges so made shall constitute part of the
Revolving Advances hereunder.

     

    (c) Notwithstanding
any other provisions of this Agreement to the contrary, after the exercise of
remedies by the Administrative Agent, the Collateral Agent or the Lenders (or
after the Commitments shall automatically terminate and the Loans (with accrued
interest thereon) and Obligations under the Loan Documents shall automatically
become due and payable in accordance with the terms hereof), all proceeds of the
Revolver Priority Collateral shall be applied to the Obligations in the manner
specified in SECTION
2.09(a)(ii).

     

    ARTICLE
III

    PAYMENTS
AND OTHER COMPENSATION

     

    SECTION
3.01 Voluntary
Prepayments/Reductions of Commitments.

     

    (a) Optional Prepayment of
Revolving Advances. As set forth in 
SECTION 2.01
 (d), at any time
after the Closing Date, the Borrowers may prepay, with no corresponding
reduction in Commitments, and thereafter reborrow, subject to the terms and
conditions set forth herein (including 
SECTION 4.03), all or
any portion of the Revolving Advances then outstanding.

     

    (b) Optional Reduction of
Commitments. So long as the Credit Parties, on a consolidated basis, have
Availability of at least ten million Dollars ($10,000,000) (calculated on a pro
forma basis after giving effect to the reduction contemplated under this 
SECTION 3.01
 (b)), the Borrowers
shall have the right, upon at least five (5) Business Days’ prior written
notice by the Administrative Borrower to the Administrative Agent to cancel the
Commitments in full or to reduce the amount thereof; provided, that (x) upon any
termination of the Commitments, all Obligations shall be immediately due and
payable in full, and (y) the amount of the aggregate Commitments shall at no
time be less than the Loan Exposure at such time.  Partial reductions
of the Commitments shall be in a minimum amount of five million Dollars
($5,000,000) or such lesser amount as may then remain outstanding or integral
multiples of one million Dollars ($1,000,000) in excess thereof and shall reduce
each Lender’s Commitment on a pro rata basis based upon such Lender’s Pro Rata
Share.  All cancellations or reductions shall be
permanent.  Any such notice of reduction shall be accompanied by the
payment of the Unused Commitment Fee accrued through the date of such
cancellation or reduction.

     

    
      
        
        

      

      
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    SECTION
3.02 Mandatory
Prepayments.

     

    (a) Prepayments from Asset
Dispositions.  Within three (3) Business Days after the receipt
by a Credit Party or any Subsidiary of a Credit Party of any Net Cash Proceeds
of Revolver Priority Collateral, Net Casualty/Condemnation Proceeds of Revolver
Priority Collateral, or Extraordinary Receipts from Revolver Priority
Collateral, the Borrowers shall prepay the Loans in an amount equal to 100% of
such Net Cash Proceeds, Net Casualty/Condemnation Proceeds or Extraordinary
Receipts.  If any excess Net Cash Proceeds, Net Casualty/Condemnation
Proceeds or Extraordinary Receipts, as the case may be, remain after repayment
in full of the aggregate outstanding Revolving Advances, Borrowers shall provide
cash collateral for the Letters of Credit in the manner set forth in Annex A to the extent
required to eliminate such excess (it being understood that (i) any Borrowing
Base Cash Collateral then posted with the Collateral Agent in accordance with
the terms of this Agreement shall, to the extent of such excess and to the
extent requested by the Administrative Borrower, thereafter (1) be deemed Cash
Collateral provided pursuant to this SECTION 3.02(a) and
(2) to the extent included in such Cash Collateral, shall cease to be Borrowing
Base Cash Collateral for all purposes of this Agreement and shall no longer be
included in the calculation of the Borrowing Base and (ii) the aggregate amount
of Cash Collateral required pursuant to this SECTION 3.02(a) shall
not exceed an amount equal to 105% of the amount of the aggregate Letter of
Credit Usage then outstanding).  The parties agree that, the
Collateral Agent shall be authorized to transfer from the account(s) containing
Borrowing Base Cash Collateral to the Cash Collateral Account, any Borrowing
Base Cash Collateral that the Administrative Borrower shall request to be
included in Cash Collateral pursuant to this SECTION
3.02(a).

     

    (b) Overadvance.  If
at any time the Aggregate Revolver Exposure exceeds the Maximum Amount,
Borrowers shall immediately repay the aggregate outstanding Revolving Advances
to the extent required to eliminate such excess.  If any such excess
remains after repayment in full of the aggregate outstanding Revolving Advances,
Borrowers shall, at the option of the Administrative Agent, either (i) provide
cash collateral for the Letters of Credit in the manner set forth in Annex A to the extent
required to eliminate such excess or (ii) solely to the extent that after
providing any cash collateral pursuant to this clause (ii) the Aggregate
Revolver Exposure shall not exceed the Maximum Revolver Amount, provide
additional Borrowing Base Cash Collateral in an amount sufficient to eliminate
such excess.

     

    (c) Application of
Proceeds.  Payments under this 
SECTION 3.02 shall be
paid, in the case of Net Cash Proceeds of Revolver Priority Collateral, Net
Casualty/Condemnation Proceeds of Revolver Priority Collateral, or Extraordinary
Receipts from Revolver Priority Collateral, to the Administrative Agent for
application to the Loans and Obligations under this Agreement (including the
provision of Cash Collateral for Letters of Credit) in the manner specified and
clauses (a) and
(b) above
without a permanent reduction in the Commitments.  Unless an Event of
Default is continuing the balance shall be distributed to the
Borrowers.

     

    
      
        
        

      

      
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    SECTION
3.03 Payments.

     

    (a) General
Provisions.  All payments to be made by a Credit Party shall be
made without set-off, counterclaim or other defense.  Except as
otherwise expressly provided herein, all payments by a Credit Party shall be
made to the Administrative Agent for the account of the relevant Lender or
Agent, as the case may be, at the Administrative Agent’s Account, and shall be
made in Dollars and by wire transfer or ACH transfer in immediately available
funds (which shall be the exclusive means of payment hereunder), no later than
2:00 p.m. (New York City time), on the dates specified herein, as the case
may be, to be reimbursed.  The Administrative Agent will promptly
distribute to the relevant Lender or Agent its Pro Rata Share or other
applicable share as expressly provided herein, of each such payment in like
funds as received.  Any payment received by the Administrative Agent
later than 2:00 p.m. (New York City time) on any Business Day shall be
deemed to have been received on the following Business Day and any applicable
interest or fee shall continue to accrue until such following Business
Day.

     

    (b) Sharing of
Payments.  Except as otherwise provided herein, if any Lender
shall obtain any payment (whether voluntary, involuntary, through the exercise
of any right of set-off, or otherwise) on account of any Obligation in excess of
its ratable share of payments on account of similar obligations obtained by all
the Lenders, such Lender shall (i) notify the Administrative Agent of such fact
and (ii) forthwith purchase from the other Lenders such participations in such
similar obligations held by them as shall be necessary to cause such purchasing
Lender to share the excess payment ratably with each of them; provided, however, that if all
or any portion of such excess payment is thereafter recovered from such
purchasing Lender, such purchase from each other Lender shall be rescinded and
each such other Lender shall repay to the purchasing Lender the amount of the
purchase made under this 
SECTION 3.03(b) to
the extent of such recovery together with an amount equal to such other Lender’s
ratable share (according to the proportion of (A) the amount of such
Lender’s required repayment to (B) the total amount so recovered from the
purchasing Lender of any interest or other amount paid by the purchasing Lender
in respect of the total amount so recovered).  Each Credit Party
agrees that any Lender so purchasing a participation from another Lender
pursuant to this 
SECTION 3.03(b) may,
to the fullest extent permitted by law, exercise all of its rights (including
the Lender’s right of set-off) with respect to such participation as fully as if
such Lender were the direct creditor of such Credit Party in the amount of such
participation.  If a Non-Funding Lender receives any such payment as
described in this 
SECTION 3.03(b), such
Lender shall turn over such payments to the Administrative Agent in an amount
that would satisfy the cash collateral requirements set forth in SECTION
2.09(a)(i).

     

    (c) Apportionment of
Payments.  Subject to the provisions of

SECTION 2.09, 
SECTION 3.02 and this

SECTION 3.03(c), all
payments of principal and interest in respect of outstanding Loans, and all
other payments in respect of any Obligations, shall be allocated among the
Lenders in proportion to their respective Pro Rata Shares of such Obligations
unless otherwise specified in this Agreement or in any other Loan
Document.

     

    
      
        
        

      

      
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    (d) Payments on Non-Business
Days.  Whenever any payment to be made by the Borrowers
hereunder or under any Loan Document is stated to be due on a day which is not a
Business Day, the payment shall instead be due on the next succeeding Business
Day (unless such succeeding Business Day would be in the subsequent calendar
month, in which case such payment shall be made on the immediately preceding
Business Day).

     

    SECTION
3.04 Taxes.

     

    (a) Payment of
Taxes.  Except as set forth below, any and all payments by a
Credit Party hereunder, under the Notes or under any other Loan Document shall
be made free and clear of and without deduction for any and all present or
future taxes, levies, imposts, deductions, charges or withholdings imposed by
any Governmental Authority, excluding, in the case of each Agent, each L/C
Issuer and each Lender, respectively, taxes imposed by (i) the United
States except United States federal gross income withholding taxes, or
(ii) a Governmental Authority as a result of a connection or former
connection (other than merely being a party to any Loan Documents, participating
in the transactions contemplated therein, or enforcing rights thereunder)
between such Agent, such L/C Issuer or Lender and the jurisdiction imposing such
tax, including any connection arising from such Agent, such L/C Issuer or Lender
being a citizen, domiciliary, or resident of such jurisdiction, being organized
in such jurisdiction, or having a permanent establishment or fixed place of
business therein (all such taxes, levies, imposts, deductions, charges and
withholdings other than Excluded Taxes being hereinafter referred to as “Taxes”).  If
a Credit Party shall be required by law to withhold or deduct any Taxes from or
in respect of any sum payable hereunder, under the Notes or under any other Loan
Document to any Lender, and L/C Issuer or any Agent, (A) such sum payable
shall be increased by an additional amount so that after making all required
withholdings or deductions (including withholdings or deductions applicable to
additional amounts payable under this 
SECTION 3.04(a)) such Lender, such
L/C Issuer or such Agent receives an amount equal to the sum it would have
received had no such withholdings or deductions been made, (B) such Credit
Party shall make such withholdings or deductions, and (C) such Credit Party
shall pay the full amount withheld or deducted to the relevant taxation
authority or other authority in accordance with Applicable
Law.  Notwithstanding the foregoing, a Credit Party shall not be
required to pay any such additional amounts to any Agent, any L/C Issuer or any
Lender with respect to any Excluded Taxes.

     

    (b) Other
Taxes.  The Borrowers agree to pay any present or future stamp
or documentary taxes or any other excise or property taxes, charges or similar
levies which arise from and which relate directly to the execution, delivery or
registration of, or otherwise with respect to, this Agreement, the Notes or any
other Loan Document, including all such amounts related to the creation,
perfection or maintenance of the interests of the Agents, the L/C Issuers and
the Lenders in the Collateral and all interest and penalties related thereto
(“Other
Taxes”).

     

    (c) Indemnification.  The
Borrowers will and hereby agree to indemnify each Lender, each L/C Issuer and
each Agent against, and reimburse each, within ten (10) days of a receipt of
written demand therefor, for the full amount of all Taxes and Other Taxes
(including any Taxes or Other Taxes imposed by any Governmental Authority on
amounts payable to such Agent or Lender under this 
SECTION 3.04(c))
incurred or paid by such Lender, such L/C Issuer or such Agent (as the case may
be), or any Affiliate of such Lender, such L/C Issuer or such Agent on or with
respect to any payment by or on account of any Obligation, and any penalties,
interest, and reasonable out-of-pocket expenses paid to third parties arising
therefrom or with respect thereto.  For the avoidance of doubt, the
Borrowers shall not be required to indemnify a Lender, a L/C Issuer or Agent
pursuant to this 
SECTION 3.04(c) with
respect to any Excluded Taxes.  A certificate as to any amount payable
to any Person under this 
SECTION 3.04
 (c) submitted by such
Person to the Administrative Borrower shall, absent manifest error, be final,
conclusive and binding upon all parties hereto.

     

    
      
        
        

      

      
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    (d) Receipts.  Within
thirty (30) days after a request from the Administrative Agent, each Credit
Party will furnish to the Administrative Agent the original or a certified copy
of a receipt, if available, or other reasonably available documentation
reasonably satisfactory to the Administrative Agent evidencing payment of such
Taxes or Other Taxes (including in respect of payments of additional amounts)
required to be paid by such Credit Party pursuant to this SECTION 3.04.  The
Administrative Borrower will furnish to the Administrative Agent upon the
Administrative Agent’s request an Officer’s Certificate stating that all Taxes
and Other Taxes of which it is aware that are due have been paid and that no
additional Taxes or Other Taxes of which it is aware are due.

     

    (e) Nonresident
Certifications.  (i) Each Lender that is not a United
States Person (as defined in Section 7701(a)(30) of the Code) (a “Non-U.S. Lender”)
shall deliver to the Administrative Borrower and the Administrative Agent on or
prior to the Closing Date, or, in the case of a Lender that becomes a Lender
pursuant to 
SECTION 14.08 hereof,
on or prior to the date on which such Lender becomes a Lender pursuant to 
SECTION 14.08, a true
and accurate IRS Form W-8BEN, W-8IMY (with the necessary attachments), W-8EXP,
W-8ECI or any subsequent version thereof or successors thereto and such other
documentation prescribed by Applicable Law executed in duplicate by a duly
authorized officer of such Lender to the effect that such Lender is eligible as
of such date to receive payments hereunder and under the Notes free and clear or
at a reduced rate of United States federal withholding tax or, in the case of a
Lender that becomes a Lender pursuant to 
SECTION 14.08, that
such Lender is subject to United States federal withholding tax at a rate not in
excess of the rate to which the assignor was subject as a result of a change in
law, as described in 
SECTION 3.04(e)
 (ii)(B).  A
Non-U.S. Lender shall not be required to deliver any form pursuant to this 
SECTION 3.04(e) that
it is not legally able to deliver.

     

    (ii) Each
Non-U.S. Lender further agrees to deliver to the Administrative Borrower and the
Administrative Agent from time to time a true and accurate certificate
executed in duplicate by a duly authorized officer of such Lender before or
promptly upon the occurrence of any event requiring a change in the most recent
certificate previously delivered by it to the Administrative Borrower and the
Administrative Agent pursuant to this 
SECTION 3.04(e)
(including upon the expiration, obsolescence or invalidity of such form, upon
the designation of a new lending office and at such other times as may be
necessary in the determination of the Administrative Borrower and the
Administrative Agent (each in the reasonable exercise of its
discretion)).  Each certificate required to be delivered pursuant to
this 
SECTION 3.04(e)(ii)
shall certify as to one of the following:

     

    
      
        
        

      

      
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    (A) that such
Lender can receive payments hereunder and under the other Loan Documents free
and clear or at a reduced rate of United States federal withholding tax (in
which case the certificate shall be accompanied by two duly completed
copies of IRS Form W-8BEN, W-8IMY (with the necessary attachments), W-8EXP or
W-8ECI, as applicable (or any successor form);

     

    (B) that such
Lender is no longer capable of receiving payments hereunder or under the other
Loan Documents free and clear or at a reduced rate of United States federal
withholding tax by reason of a change in law (including the Code or any
applicable tax treaty) after the later of the Closing Date, or in the case of a
Lender that becomes a Lender pursuant to 
SECTION 14.08 hereof,
after the date on which the Lender became a Lender pursuant to 
SECTION 14.08;
or

     

    (C) that such
Lender is not capable of receiving payments hereunder free and clear or at a
reduced rate of United States federal withholding tax other than by reason of a
change in law (including the Code or applicable tax treaty) after the later of
the Closing Date, or in the case of a Lender that becomes a Lender pursuant to 
SECTION 14.08 hereof,
after the date on which the Lender became a Lender pursuant to 
SECTION
14.08.

     

    (f) Resident
Certifications.  Each Lender that is a United States Person (as
defined in Section 7701(a)(30) of the Code) and is not an “exempt
recipient” (as such term is defined in Section 1.6049-4(c)(1)(ii) of the
United States Treasury Regulations) shall deliver to the Administrative Borrower
and the Administrative Agent on or prior to the Closing Date, or, in the case of
a Lender that becomes a Lender pursuant to 
SECTION 14.08 hereof,
on or prior to the date on which such Lender becomes a Lender pursuant to 
SECTION 14.08 hereof,
two original copies of IRS Form W-9 (or any successor forms), properly completed
and duly executed by such Lender, and such other documentation reasonably
requested by the Administrative Borrower or the Administrative
Agent.

     

    (g) Refunds and Tax
Benefits.  If a Lender, a L/C Issuer or an Agent becomes aware
that it is entitled to claim a refund from a Governmental Authority in respect
of Taxes or Other Taxes as to which it has been indemnified by the Borrowers or
with respect to which a Credit Party has paid additional amounts pursuant to 
SECTION 3.04(a) or 
(c), it shall make
reasonable efforts to timely claim to such Governmental Authority for such
refund at the Borrowers’ expense.  If a Lender, a L/C Issuer or an
Agent actually receives a payment of a refund (including pursuant to a claim for
a refund made pursuant to the preceding sentence) in respect of any Tax or Other
Tax as to which it has been indemnified by the Borrowers or with respect to
which a Credit Party has paid additional amounts pursuant to 
SECTION 3.04(a) or 
(c), it shall within
30 days from the date of such receipt pay over the amount of such refund to a
Credit Party, net of all reasonable out-of-pocket expenses of such Lender, such
L/C Issuer or such Agent and without interest (other than interest paid by the
relevant Governmental Authority with respect to such refund); provided that the
Borrowers, upon the request of such Lender, such L/C Issuer or such Agent, agree
to repay the amount paid over to a Credit Party (plus penalties, interest or
other reasonable charges) to such Lender, such L/C Issuer or such Agent in the
event such Lender, such L/C Issuer or such Agent is required to repay such
refund to such Governmental Authority.

     

    
      
        
        

      

      
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    (h) The
Borrowers shall not be required to pay any amount to any Lender, any L/C Issuer
or any Agent under 
SECTION 3.04(a) or 
(c) in respect of any
Taxes imposed by reason of such Lender’s, L/C Issuer’s or Agent’s failure for
any reason other than as specified in 
SECTION
3.04(e)(ii)(B) to comply with the provisions of 
SECTION 3.04(e)(i) or
because of any form or certificate provided by such Lender, L/C Issuer or Agent
under 
SECTION 3.04
 (c), other than
because of a change in tax law specified in 
SECTION 3.04
 (e)(ii)(B).

     

    (i) The
Borrowers shall not be required to indemnify or to pay any additional amounts to
the Lender, L/C Issuer or Agent with respect to Taxes pursuant to 
SECTION 3.04(a) to
the extent that any obligation to withhold, deduct or pay amounts with respect
to such Tax was in effect and would apply to amounts payable on the date that
such Lender, such L/C Issuer or Agent became a party to this Agreement or that
was paid by such Lender, such L/C Issuer or Agent more than one hundred and
eighty (180) days prior to such Lender’s, Such L/C Issuer’s or Agent’s demand
therefore.

     

    (j) Without
affecting its rights under 
SECTION 3.04(a) or
any provision of this Agreement, each Lender, each L/C Issuer and each Agent
agrees that if any Taxes or Other Taxes are imposed and required by law to be
paid or to be withheld from any amount payable to any Lender, any L/C Issuer or
Agent with respect to which the Borrowers would be obligated to indemnify such
Lender, such L/C Issuer or Agent pursuant to 
SECTION 3.04(c), such
Lender, such L/C Issuer or Agent shall use reasonable efforts to select an
alternative lending office which would not result in the imposition of such
Taxes or Other Taxes, provided that such
change in the good faith judgment of such Lender, such L/C Issuer or Agent is
not otherwise disadvantageous to such Lender, such L/C Issuer or
Agent.

     

    ARTICLE
IV

    INTEREST

     

    SECTION
4.01 Interest on the Loans and
Other Obligations.

     

    (a) Interest on
Loans.  The Borrowers agree to pay interest on the unpaid
principal amount of each Revolving Advance on each Interest Payment Date, from
the date of such Revolving Advance through and including the date such Revolving
Advance is repaid in full, at a rate equal to the Interest Rate for such
Revolving Advance.  The Borrowers shall pay the accrued interest on
the Revolving Advances and the Unused Commitment Fee in cash on each Interest
Payment Date. All computations of fees and interest payable under this Agreement
shall be made on the basis of a 360-day year and actual days
elapsed.

     

    (b) Default
Interest.  So long as any Event of Default shall be continuing,
the Interest Rate applicable to the Revolving Advances then outstanding or due
and owing and any other amount bearing interest hereunder, as well as the L/C
Fee shall, at the request of the Administrative Agent or the Required Lenders,
each be increased by two percent (2.00%) per annum above the Interest Rate or
L/C Fee otherwise applicable to Revolving Advances, Letters of Credit or such
other amounts bearing interest hereunder.

     

    
      
        
        

      

      
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    (c) Maximum
Interest.  Anything herein to the contrary notwithstanding, the
obligations of the Borrowers hereunder shall be subject to the limitation that
payments of interest shall not be required, for any period for which interest is
computed hereunder, to the extent (but only to the extent) that contracting for
or receiving such payment by the respective Lender would be contrary to the
provisions of any law applicable to such Lender limiting the highest rate of
interest which may be lawfully contracted for, charged or received by such
Lender, and in such event the Borrowers shall pay such Lender interest at the
highest rate permitted by applicable law (“Highest Lawful
Rate”); provided, however, that if at
any time thereafter the rate of interest payable hereunder is less than the
Highest Lawful Rate, the Borrowers shall continue to pay interest hereunder at
the Highest Lawful Rate until such time as the total interest received by
Administrative Agent, on behalf of Lenders, is equal to the total interest that
would have been received had the interest payable hereunder been (but for the
operation of this paragraph) the interest rate payable since the Closing Date as
otherwise provided in this Agreement.

     

    (d) Conversion or
Continuation.  The Borrowers shall have the option (i) to
convert all or any part of its outstanding LIBOR Rate Loans to Base Rate Loans
at the end of then-current LIBOR Period therefor, (ii) to convert Base Rate
Loans to LIBOR Rate Loans, or (iii) to change or continue the LIBOR Period
applicable to all or a portion of the Loans; provided, however, that
(A) except as provided in 
SECTION 4.03, LIBOR
Rate Loans may be converted into Base Rate Loans only on the last day of the
LIBOR Period applicable thereto unless the Borrowers agree to pay all amounts
due pursuant to 
SECTION 4.02,
(B) Revolving Advances extended as, or converted into, LIBOR Rate Loans
shall be subject to the terms of the definition of “LIBOR Period” set
forth in 
SECTION 1.01 and to
the minimum limits specified in 
SECTION 2.01
 (e), and (C) any
request for extension or conversion of a LIBOR Rate Loan that shall fail to
specify an LIBOR Period shall be deemed to be a request for an LIBOR Period of
one month.  Each such extension or conversion shall be effected by the
Borrowers by giving a Notice of Conversion/Continuation (or telephone notice
promptly confirmed in writing) to the Administrative Agent prior to
1:00 p.m., New York City time, on the third Business Day prior to the date
of the proposed extension or conversion, substantially in the form of Exhibit N-2 hereto,
specifying (x) the date of the proposed extension or conversion,
(y) the Revolving Advances to be so extended or converted, (z) the
types of Loans into which such Loans are to be converted, and, if appropriate,
(D) the applicable LIBOR Periods with respect thereto.  Each
Notice of Conversion/Continuation shall be irrevocable.  The Borrowers
shall have no more than five (5) LIBOR Rate Loans outstanding at any one
time.

     

    (e) Automatic Conversion to Base
Rate Loans.  Each LIBOR Rate Loan shall automatically be
converted to a Base Rate Loan at the end of the applicable LIBOR Period if
(i) the Administrative Borrower does not provide a timely Notice of
Conversion/Continuation (subject to the provisions of 
SECTION 4.01(d), (ii)
the LIBOR Rate Loan is not permitted to be converted or continued as a LIBOR
Rate Loan under this Agreement including by virtue of the application of 
SECTION 4.01(d) or
the provisions of this 
ARTICLE IV), or (iii)
any Default or Event of Default is then continuing.  The
Administrative Agent shall give each Lender notice as promptly as practicable of
any such proposed extension or conversion affecting any Revolving
Advance.  Promptly after receipt of a Notice of
Conversion/Continuation under 
SECTION 4.01(d), the
Administrative Agent shall notify each Lender by telex, telecopy, email, or
other similar form of transmission, of the proposed
conversion/continuation.  Any Notice of Conversion/Continuation for
conversion to, or continuation of, a Revolving Advance shall be irrevocable, and
the Borrowers shall be bound to convert or continue in accordance
therewith.

     

    
      
        
        

      

      
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    SECTION
4.02 Break Funding
Payments.  In the event of the payment of any principal of any
LIBOR Rate Loan other than on the last day of the LIBOR Period applicable
thereto (including as a result of an Event of Default), or the failure to borrow
or prepay any Revolving Advance on the date specified in any notice delivered
pursuant hereto, then, in any such event, the Borrowers shall compensate each
applicable Lender for the loss, cost and expense attributable to such
event.  A certificate of any Lender setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this SECTION 4.02
shall be delivered to the Borrowers and shall be conclusive absent manifest
error.  The Borrowers shall pay such Lender the amount shown as due on
any such certificate within ten (10) days after receipt thereof.

     

    SECTION
4.03 Change in Law;
Illegality.

     

    (a) If the
adoption or implementation of, or any change in (or the interpretation,
administration or application of) any Applicable Law shall, in each case after
the date hereof, (i) impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by, any Lender (except any such reserve
requirement reflected in the LIBOR Rate) or (ii) impose on any Lender or
the London interbank market any other condition affecting this Agreement or
LIBOR Rate Loans made by such Lender; and the result of any of the foregoing
under (i) or (ii) of this 
SECTION 4.03(a) shall
be to increase the cost to such Lender of making or maintaining any LIBOR Rate
Loan (or of maintaining its obligation to make any such Loan), or to increase
the cost to such Lender of participating in, issuing or maintaining any Letter
of Credit (or of maintaining its obligation to participate in or to issue any
Letter of Credit, or to reduce the amount of any sum received or receivable by
such Lender hereunder (whether of principal, interest or otherwise), then the
Borrowers will pay to such Lender such additional amount or amounts as will
compensate such Lender for such additional costs incurred or reduction suffered
to the extent that such Lender reasonably determines that such increase in cost
be allocable to the existence of such Lender’s LIBOR Rate Loans or its
commitment to lend hereunder.

     

    (b) If any
Lender reasonably determines that the introduction of or any change in any
Applicable Law regarding capital requirements, in each case after the date
hereof, has or would have the effect of reducing the rate of return on such
Lender’s capital as a consequence of this Agreement or the Loans made by such
Lender to a level below that which such Lender could have achieved but for such
change in the Applicable Law (taking into consideration such Lender’s policies
with respect to capital adequacy), then from time to time the Borrowers will pay
to such Lender such additional amount or amounts as will compensate such Lender
for any such reduction suffered to the extent that such Lender reasonably
determines that such additional amounts are allocable to the existence of such
Lender’s Loans or its commitment to lend hereunder.

     

    
      
        
        

      

      
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    (c) A
certificate of a Lender setting forth in reasonable detail the amount or amounts
necessary to compensate such Lender as specified in paragraph 

(a) or 
(b) of this 
SECTION 4.03 shall be
delivered to the Administrative Borrower and shall be binding and conclusive for
all purposes, so long as it reflects the basis for the calculation of the
amounts set forth therein and does not contain any manifest
error.  The Borrowers shall pay such Lender the amount shown as due on
any such certificate within ten days after receipt
thereof.  Notwithstanding the foregoing, (i) the applicable
Lender shall take such actions (including changing the office of location of the
funding of the Loans) that the Administrative Borrower may reasonably request in
order to reduce the amounts payable under 
SECTION 4.03(a) or 
(b), provided that the Borrowers
shall reimburse such Lender for any costs incurred by such Lender in doing so to
the extent that such Lender reasonably determines that such costs are allocable
to the Borrowers with respect to the existence of such Lender’s Loans or
commitment to lend hereunder and provided further that such
Lender shall only be required to take such actions if it determines in good
faith that such actions would not be disadvantageous to it, and (ii) the
Borrowers shall not be required to compensate a Lender under 
SECTION 4.03(a) and 
(b) for any costs or
additional amounts arising more than 180 days prior to the date that such Lender
notifies the Administrative Borrower of the event giving rise to such costs and
amounts of such Lender’s intention to claim compensation therefor and, if the
event giving rise to such increased costs and amounts is retroactive, then the
180-day period referred to in this clause (ii) shall be extended to include
the period of retroactive effect therefor.

     

    (d) Notwithstanding
anything to the contrary contained herein, if the adoption or implementation of,
or any change in, any Applicable Law shall make it unlawful, or any central bank
or other Governmental Authority shall assert that it is unlawful, for any Lender
to agree to make or to continue to fund or maintain any LIBOR Rate Loan, then,
unless that Lender is able to make or to continue to fund or to maintain such
LIBOR Rate Loan at another branch or office of that Lender without, in that
Lender’s opinion, adversely affecting it or its LIBOR Rate Loans or the income
obtained therefrom, on notice thereof and demand therefor by such Lender to the
Administrative Borrower through the Administrative Agent, (i) the
obligation of such Lender to make, to continue to fund or maintain LIBOR Rate
Loans shall terminate, and (ii) each outstanding LIBOR Rate Loan owing by
the Borrowers to such Lender shall automatically be converted to a Base Rate
Loan and the Borrowers shall pay any amounts due pursuant to 
SECTION
4.02.

     

    SECTION
4.04 Fees.  The
Borrowers hereby agree to pay to the Administrative Agent, for the account of
the Lenders in accordance with their Pro Rata Shares, the following
amounts:

     

    (a) a fee
(the “Unused
Commitment Fee”) in an amount equal to one half of one percent (1⁄2%) per
annum times the
Maximum Revolver Amount minus the Aggregate
Revolver Exposure at such time.  The Unused Commitment Fee shall be
non-refundable and paid in Dollars monthly in arrears and on the date of the
termination or expiration of the Commitments; and

     

    (b) the
Administrative Agent, for the account of the Lenders, a fee (the “L/C Fee”) in an
amount equal to four percent (4%) per annum times the undrawn
amount of all outstanding Letters of Credit, payable in Dollars monthly in
arrears and on the date of the termination, draw or expiration of each Letter of
Credit.

     

    
      
        
        

      

      
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    In
addition to the foregoing, the Borrowers hereby agree to pay the fees and
expenses, if any, set forth in (x) the Agents’ Fee Letter and(y) in Annex A
hereto.

     

    ARTICLE
V

    CONDITIONS
TO LOANS

     

    SECTION
5.01 Conditions Precedent to the
Funding on the
Closing Date.  The obligation of each Lender to make the
Revolving Advances requested, and the Obligation of each L/C Issuer to Issue
Letters of Credit to be made by it on the Closing Date or a Funding Date shall
be subject to the satisfaction, or waiver by each of the Agents, of each of the
following conditions precedent, except to the extent such conditions are subject
to the post closing obligations set forth on Schedule
8.21:

     

    (a) Authority.  The
Administrative Agent shall have received certified copies of all resolutions,
certificates and other documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to the authorization for the
execution, delivery and performance of each Loan Document to be executed and or
delivered on the Closing Date by a Credit Party and for the consummation of the
transactions contemplated thereby.  All certificates shall state that
the resolutions or other information referred to in such certificates have not
been amended, modified, revoked or rescinded as of the Closing
Date.

     

    (b) Loan
Documents.  The Administrative Agent shall have received, on
the Closing Date, counterparts of each of the following documents duly executed
and delivered by each party thereto, and in full force and effect and reasonably
satisfactory to the Administrative Agent:

     

    (i) this
Agreement;

     

    (ii) the
Notes, if any;

     

    (iii) the
Omnibus Ratification Agreement; and

     

    (iv) each
other Loan Document, in each case duly executed and delivered by the parties
thereto and dated no later than the Closing Date, except for those Loan
Documents that are dated prior to the Closing Date and have been delivered prior
to the Closing Date to the Agents by the Credit Parties.

     

    (c) Perfection of Liens and
Security.  All Obligations shall be secured by perfected,
first-priority (subject only to Permitted Encumbrances) liens and security
interests in the Collateral pursuant to the Security Agreement and other
Security Documents, in form and substance satisfactory to the Administrative
Agent; provided
that such liens
and security interests shall have the priorities specified in the Intercreditor
Agreement.  All Collateral shall be free and clear of other liens,
claims and encumbrances other than Permitted Encumbrances and the Administrative
Agent shall have received UCC, tax, judgment and other lien searches in form and
substance satisfactory to the Administrative Agent as confirmation
thereof.  The Collateral Agent, on behalf of the Lenders, shall have a
perfected first-priority lien and security interest in the Revolving Priority
Collateral and a perfected second priority lien and security interest in all
other Collateral; all filings, recordations and searches necessary or desirable
in connection with such liens and security interests shall have been duly made
or arranged for; and all filing and recording fees and taxes shall have been
duly paid.

     

    
      
        
        

      

      
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    (d) No Material Adverse
Effect.  There shall not have occurred any event, circumstance,
change or condition since September 30, 2009, which could reasonably be expected
to have a Material Adverse Effect.

     

    (e) [Intentionally
Omitted].

     

    (f) Litigation.  Except
as set forth in Schedule 6.01(f),
there shall exist no action, suit, claim, investigation, arbitration, litigation
or proceeding or any judgments, decrees, injunctions, rules or orders of any
governmental or regulatory agency or authority pending or, to the knowledge of
the Credit Parties, threatened against or affecting any Credit Party or its
property or assets, except for any of the foregoing that could, individually or
in the aggregate, reasonably be expected to have a Material Adverse
Effect.

     

    (g) Consents,
Etc.  Each Credit Party shall have received (x) a written
consent, in form and substance reasonably satisfactory to the Administrative
Agent, from each of Morgan Stanley Senior Funding, Inc. as administrative agent
and Morgan Stanley & Co. Incorporated as collateral agent under the Term
Credit Agreement to the transactions contemplated under this Agreement and the
other Loan Documents, and (y) all other consents and authorizations required
pursuant to any Material Contract with any other Person and all other material
consents and shall have obtained all material Permits of, or approvals from, and
effected all notices to and filings with, any Governmental Authority as may be
necessary to allow such Credit Party lawfully (i) to execute, deliver and
perform, in all material respects, their respective obligations under the Loan
Documents to which each of them is, or shall be, a party and each other
agreement or instrument to be executed and delivered by each of them pursuant
thereto or in connection therewith, (ii) consummate the transactions
contemplated hereunder and under the other Loan Documents, and (iii) create
and perfect the Liens on the Collateral to be owned by each of them to the
extent, in the manner and for the purpose contemplated by the Loan
Documents.  Each Credit Party shall have received all shareholder,
Governmental and material third-party consents, licenses, approvals, or evidence
of other actions necessary (without the imposition of any conditions that are
not acceptable to the Lenders), other than with respect to the Leases identified
on Schedule 5.01(g),
in connection with the execution and delivery of the Loan Documents, and the
performance thereunder and the transactions contemplated by the Loan Documents
and any applicable waiting period shall have expired without any action being
taken. No litigation shall be pending or threatened and no action shall have
been taken or threatened by any Governmental Authority that could restrain,
prevent or impose any material adverse conditions on such Credit Party or such
transactions or that could seek to restrain or threaten any of the foregoing,
and no law or regulation shall be applicable which in the reasonable judgment of
the Administrative Agent could have such effect.

     

    (h) Solvency.  Immediately
prior to the incurrence of the Loans on the Closing Date, and after giving
effect to such Loans, and use of the proceeds of the Loans, the Credit Parties,
taken as a whole, shall be Solvent and the Administrative Agent shall have
received a solvency certificate from the chief financial officer of the
Administrative Borrower, on behalf of the Credit Parties (and not in such
officer’s individual capacity), dated the Closing Date, in a form reasonably
satisfactory to the Administrative Agent.

     

    
      
        
        

      

      
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    (i) Insurance.  The
Agents shall have received (i) evidence of endorsements in form and substance
reasonably acceptable to the Agents, naming the Collateral Agent and the
collateral agent under the Term Credit Agreement, as applicable, on behalf of
the Lenders, as an additional insured and loss payee as applicable under all
insurance policies to be maintained with respect to the properties of the Credit
Parties forming part of the Collateral, and (ii) evidence that all insurance
policies required to be maintained pursuant to 
SECTION 7.05,
including any insurance policies with respect to the properties of each Credit
Party forming part of the Collateral, are in full force and effect.

     

    (j) Opinions of the Borrowers’
Counsel.  The Lenders shall have received customary opinions
(including noncontravention opinions with respect to the Indenture, the Senior
Convertible Notes Indenture, the Term Credit Agreement and other Material
Contracts) of Kilpatrick Stockton LLP, counsel to the Borrowers and the
Guarantors, and such local counsel as Administrative Agent may reasonably
require, each in form and substance satisfactory to each of the
Agents.

     

    (k) Fees and Expenses
Paid.  There shall have been paid to the Administrative Agents
all fees and, to the extent documented, expenses (including the reasonable legal
fees of counsel to each of the Agents and any local counsel to the Agents) due
and payable on or before the Closing Date.

     

    (l) Collateral
Information.  The Collateral Agent shall have received complete
and accurate information from each Credit Party with respect to its
organization, capitalization, name, locations, tax identification number and the
location of the principal place of business and chief executive office for such
Credit Party.

     

    (m) Good Standing
Certificates.  The Administrative Agent shall have received, on
the Closing Date, governmental certificates, dated the most recent practicable
date prior to the Closing Date, showing that each Credit Party is organized and
in good standing in the jurisdiction of its organization, and is qualified as a
foreign corporation and in good standing in all other jurisdictions in which it
is qualified to transact business except where the failure to so qualify could
not reasonably be expected to have Material Adverse Effect.

     

    (n) Organizational
Documents.  The Administrative Agent shall have received, on
the Closing Date, a copy of the certificate of incorporation or certificate of
formation, as applicable, and all amendments thereto of each Credit Party,
certified as of a recent date by the appropriate government official of the
jurisdiction of its organization, and copies of each Credit Party’s by-laws or
limited liability company agreement, as applicable, certified by the Secretary,
Assistant Secretary or managing member, as applicable, of such Credit Party as
true and correct as of the Closing Date.

     

    (o) Financial
Statements.  The Administrative Agent shall have received the
2007 Financial Statements and the 2008 Financial Statements, together with the
financial statements and projections described in 
SECTION 6.01(g)(ii)
and 
SECTION 7.01, all in
form and substance reasonably satisfactory to the Administrative
Agent.

     

    
      
        
        

      

      
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    (p) Certificates.  (i) The
Administrative Agent shall have received, on the Closing Date, certificates of
the Secretary, Assistant Secretary or managing member of each Credit Party,
dated the Closing Date, as to the incumbency and signatures of its officers
executing this Agreement and each other Loan Document to which such Credit Party
is a party and any other certificate or other document to be delivered pursuant
hereto or thereto, together with evidence of the incumbency of such Secretary,
Assistant Secretary or managing member.

     

    (ii) The
Administrative Agent shall have received, on the Closing Date, the certificate
of a Senior Officer of each Credit Party, dated the Closing Date, stating that
(A) to the knowledge of such officer and on behalf of such Credit Party
(not in such officer’s individual capacity) all of the representations and
warranties of such Credit Party contained herein or in any of the other Loan
Documents are true and correct in all material respects on and as of the Closing
Date as if made on such date, (B) that no breach of any covenant contained
in 
ARTICLE VIII, 
ARTICLE IX, or 
ARTICLE X has
occurred or would result from the execution, delivery of and performance under
this Agreement and the transactions contemplated hereunder, (C) that all of
the conditions set forth in this 
SECTION 5.01(p)(ii)
have been satisfied on such date (or shall, to the extent permitted therein, be
satisfied substantially simultaneously with the incurrence of Loans on the
Closing Date); (D) there has been no repayment of Indebtedness that (i)
would reduce the one hundred and twenty five million Dollar ($125,000,000)
amount permitted for credit facilities under Section 4.03(a)(1) of the
Indenture, or (ii) would reduce the ten million Dollar ($10,000,000) amount
permitted for credit facilities under Section 4.03(a)(10) of the Indenture
or specify such amounts and (E) there is no other Indebtedness that would
reduce the permitted amounts or specify all such amounts (other than
Indebtedness that is subject to the Indenture Reserve).

     

    (q) Representations and
Warranties.  Both before and after giving effect to the Loans
to be made on the Closing Date, as the case may be, all of the representations
and warranties of any Credit Party contained in ARTICLE VI and in the
other Loan Documents shall be true and correct in all material respects (except
to the extent such representations and warranties specifically relate to an
earlier date, in which case such representations and warranties shall be true
and correct as of such earlier date).

     

    (r) No
Defaults.  No Event of Default or Default, and no default under
any other Loan Document, shall have occurred and be continuing or would result
from the execution and delivery of, or the performance under, the Loan
Documents, or making the requested Loans or the application of the proceeds
therefrom.

     

    (s) Excess
Availability.  The Credit Parties shall have an Availability,
measured as of the Closing Date, greater than or equal to twenty-five million
Dollars ($25,000,000) after giving effect to the initial use of proceeds of the
Loans.

     

    (t) Copies of Material Contracts
and Debt Instruments.  The Administrative Agent shall have
received a certificate of an Authorized Officer of each Credit Party, in form
and substance satisfactory to the Administrative Agent, attaching and certifying
as complete and correct, copies of each Credit Party’s Material Contracts and
all bonds, debentures, notes, loan agreements or other similar documents or
instruments governing Indebtedness in excess of $5,000,000.

     

    
      
        
        

      

      
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    (u) Mortgaged
Properties.  The Collateral Agent shall have
received:

     

    (i) fully
executed and notarized Mortgages, in proper form for recording in each
applicable jurisdiction, encumbering each Mortgaged Property;

     

    (ii) an
opinion of counsel (which counsel shall be reasonably satisfactory to the
Administrative Agent) in each state in which a Mortgaged Property is located
with respect to the enforceability of the Mortgage to be recorded in such state
and such other matters as the Administrative Agent may reasonably request, in
each case in form and substance reasonably satisfactory to the Administrative
Agent; and

     

    (iii) such
other information, documentation, and certifications as may be reasonably
required by the Administrative Agent.

     

    (v) Cash
Management.

     

    (i) The
Credit Parties shall have established and maintained cash management services of
a type and on terms satisfactory to the Collateral Agent at one or more of the
banks set forth on Schedule 6.01(v)
(each a “Cash
Management Bank”), and shall have requested in writing and otherwise
taken such reasonable steps to ensure that all of their domestic Account Debtors
with respect to Accounts forward payment of the amounts owed by them directly to
a bank account (each such account, a “Cash Management
Account”) subject to a Control Agreement at such Cash Management
Bank.

     

    (ii) Each Cash
Management Bank shall have established and maintained cash management agreements
(each a “Cash
Management Agreement”) with the Collateral Agent covering the Deposit
Accounts of each Credit Party, in form and substance reasonably acceptable to
each of the Agents, provided, however, that Deposit
Accounts that are disbursement accounts and that either (A) have an average
daily balance of less than $100,000, or (B) are accounts for payment of the
workers compensation claims and employment claims, shall be excluded from the
requirement for Cash Management Agreements, so long as the aggregate amount of
such excluded Deposit Accounts does not exceed $1,000,000 in the aggregate at
any time.  Each such Cash Management Agreement shall have provided,
among other things, that (A) the Cash Management Bank will comply with any
instructions originated by the Collateral Agent directing the disposition of the
funds in such Cash Management Account without further consent by the Credit
Parties, (B) the Cash Management Bank has no rights of setoff or recoupment or
any other claim against the applicable Cash Management Account, other than for
payment of its service fees and other charges directly related to the
administration of such Cash Management Account and for returned checks or other
items of payment, and (C) it will, following notice from the Collateral Agent,
forward by daily sweep all amounts in the collection Cash Management Accounts to
the Collateral Agent’s account.

     

    
      
        
        

      

      
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    (iii) The Cash
Management Accounts shall be subject to Control Agreements.

     

    (w) Due
Diligence.  The Lenders shall have completed a due diligence
investigation of the Borrowers and their respective Subsidiaries in scope, and
with results, satisfactory to the Lenders, and shall have been given such access
to the management, records, books of account, contracts and properties of the
Borrower and their respective Subsidiaries and shall have received such
financial, business and other information regarding each of the foregoing
Persons and businesses as they shall have requested.

     

    (x) Corporate Structure; Capital
Structure.  The corporate structure and capital structure the
Borrowers and their respective Subsidiaries shall be reasonably acceptable to
the Administrative Agent and the Lenders.

     

    (y) Other
Documents.  The Administrative Agent shall have received
consent and collateral access agreements for properties leased by the Credit
Parties from KRP, in form and substance satisfactory to the Administrative
Agent.

     

    SECTION
5.02 Conditions Precedent to
Revolving Advances and Issuances of Letters of Credit.  The
obligation of the Lenders to make any Revolving Advance or the L/C Issuer to
Issue any Letters of Credit requested to be made by it on any Funding Date,
shall be subject to the satisfaction of all of the conditions precedent
specified in 
SECTION 5.01 and the
following additional conditions:

     

    (a) Representations and
Warranties.  As of such Funding Date, both before and after
giving effect to the Revolving Advances to be made on such date and/or the
Issuance of the Letters of Credit to be Issued on such date, as the case may be,
(i) all of the representations and warranties of any Credit Party contained in 
ARTICLE VI and in the
other Loan Documents shall be true and correct in all material respects (except,
in the case of Loans funded after the Closing Date, to the extent such
representations and warranties specifically relate to an earlier date, in which
case such representations and warranties shall be true and correct as of such
earlier date) and (ii) the Aggregate Revolver Exposure does not exceed the
result of (x) the aggregate amount of Indebtedness permitted under Sections
4.03(a)(1) and 4.03(a)(10) of the Indenture minus (y) all other
outstanding Indebtedness of the Credit Parties, which Indebtedness shall reduce
the aggregate amount of Indebtedness permitted to be incurred under Sections
4.03(a)(1) and .4.03(a)(10) of the Indenture.

     

    (b) No
Defaults.  As of such Funding Date, no Default or Event of
Default shall have occurred and be continuing or would result from the execution
and delivery of, or the performance under, the Loan Documents, the issuance of
the requested Letters of Credit, or making the requested Loan or the proposed
purpose or application thereof.

     

    (c) No Change in
Condition.  There shall not have occurred any event or
condition since September 30, 2009 which could reasonably be expected to
have a Material Adverse Effect.

     

    
      
        
        

      

      
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    (d) No Legal
Impediment.  No injunction, writ, restraining order, or other
order of any nature (whether temporary, preliminary or permanent) restricting or
prohibiting, directly or indirectly, the extending of such credit shall have
been issued and remain in force by any Governmental Authority against the
Borrowers, any Agent or any Lender, and such extension of credit shall not
violate any requirement of Applicable Law.

     

    Each
request by the Borrowers for a Loan, each submission by the Borrowers of a
Borrowing Request or L/C Request, and each acceptance by the Borrowers of the
proceeds of each Loan made hereunder shall be accompanied by a Borrowing Request
and constitute a representation and warranty by the Borrowers, as of the Funding
Date in respect of such Loan, or the issuance date of a Letter of Credit, as the
case may be, that all conditions set forth in this 
SECTION 5.02 have
been satisfied.

     

    ARTICLE
VI

    REPRESENTATIONS
AND WARRANTIES

     

    SECTION
6.01 Representations and
Warranties.  In order to induce the Lenders to enter into this
Agreement and to make the Loans or issue the Letters of Credit, as the case may
be, each Credit Party hereby, jointly and severally, represents and warrants as
follows:

     

    (a) Organization, Good Standing,
Etc.  Each Credit Party (i) is a corporation or limited
liability company duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, (ii) has all requisite
power and authority to conduct its business as now conducted and as presently
contemplated, to make the borrowings hereunder (in the case of each Borrower),
to execute and deliver each Loan Document to which it is a party, and to
consummate the transactions contemplated thereby, and (iii) except where
failure to do so, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect, is duly qualified to do business and
is in good standing in each jurisdiction in which the character of the
properties owned or leased by it or in which the transaction of its business
makes such qualification necessary for its business as currently
conducted.

     

    (b) Authorization,
Etc.  The execution, delivery and performance by each Credit
Party of each Loan Document to which it is or will be a party and the
transactions contemplated thereunder, (i) have been or, with respect to
such Credit Parties formed or acquired hereafter, will be, duly authorized by
all necessary corporate, limited liability company or partnership action, as
applicable, (ii) do not and will not contravene its Governing Documents,
any Material Contract, any Coal Supply Agreement or Mining Permit, (iii) do
not and will not violate any Requirements of Law binding on or otherwise
affecting it, any of its Subsidiaries or any of its properties or its
Subsidiaries’ properties, except in each case under this clause (iii) where
failure to do so, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect, and (iv) do not and will not
result in or require the creation of any Lien (other than pursuant to any Loan
Document) upon or with respect to any of its properties or its Subsidiaries’
properties.  Each Credit Party has the requisite corporate, limited
liability company or partnership power and authority, as applicable, to execute,
deliver and perform each of the Loan Documents to which it is a
party.

     

    
      
        
        

      

      
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    (c) Governmental
Approvals.  No material authorization or approval or other
action by, and no notice to or filing with, any Governmental Authority that has
not been obtained is required in connection with the due execution, delivery and
performance by each Credit Party of each Loan Document to which it is a
party.

     

    (d) Enforceability of Loan
Documents.  Each of the Loan Documents to which a Credit Party
is a party has been duly executed and delivered by such Credit Party and
constitutes the legal, valid and binding obligation of such Credit Party,
enforceable against such Credit Party in accordance with its terms, except as
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws, or by general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity).

     

    (e) Capitalization.  On
the Closing Date, the authorized, issued and outstanding Equity Interests of
each Credit Party are as set forth on Schedule 6.01(e).  All
of the issued and outstanding shares of Equity Interests of each Credit Party
have been validly issued and, to the extent applicable, are fully paid and
nonassessable, and the holders thereof are not entitled to any preemptive, first
refusal or other similar rights.  Schedule 6.01(e)
sets forth each plan pursuant to which shares of the Equity Interests of the
Credit Parties are issuable as of the Closing Date and the number of shares of
Equity Interests of each of the Credit Parties issuable under each such
plan.  Except as set forth on Schedule 6.01(e),
there are no other plans or arrangements in existence relating to the issuance
of shares of Equity Interests of a Credit Party.  Except as set forth
on Schedule 6.01(e),
as of the Closing Date, there are no outstanding debt or equity securities of a
Credit Party, and no outstanding obligations of a Credit Party convertible into
or exchangeable for, or warrants, options or other rights for the purchase or
acquisition from a Credit Party or other obligations of a Credit Party, to
issue, directly or indirectly, Equity Interests of any such Person.

     

    (f) Litigation.  Except
as set forth on Schedule 6.01(f),
there is no pending or, to the knowledge of such Credit Party, threatened
action, suit or proceeding affecting any Credit Party or any of their respective
properties or assets before any court or other Governmental Authority or any
arbitrator that, individually or in the aggregate, (i) could reasonably be
expected to have a Material Adverse Effect, or (ii) purports to affect the
legality, validity or enforceability of any Loan Document or the consummation of
the Loans evidenced hereby and by the other Loan Documents.

     

    (g) Financial Condition;
Material Adverse Effect.

     

    (i) The 2007
Financial Statements and the 2008 Financial Statements, copies of which have
been delivered to the Administrative Agent, and any financial statements
delivered pursuant to 
SECTION 7.01, fairly
present, in all material respects, the consolidated financial condition of the
Credit Parties as at the respective dates thereof and the consolidated results
of operations of the Credit Parties for the fiscal periods ended on such
respective dates, all in accordance with GAAP (subject to normal year-end
adjustments and absence of footnotes in the case of any quarterly and monthly
statements).

     

    
      
        
        

      

      
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    (ii) The
Administrative Borrower has furnished, on behalf of the Credit Parties, to the
Administrative Agent under this Agreement (A) projected monthly balance
sheets, income statements and statements of cash flows for the period from
January 1, 2007 through December 31, 2007, and (B) projected
annual balance sheets, income statements and statements of cash flows for each
subsequent Fiscal Year ending on or prior to December 31, 2012.  Such
projections are based upon assumptions that are reasonably believed by the
Credit Parties to have been reasonable at the time made (it being understood
that any such forecasts or projections are subject to significant uncertainties
and contingencies, many of which are beyond the Credit Parties’ control, that no
assurance can be given that any such forecasts or projections will be realized
and that actual results may differ from any such forecasts or projections and
such differences may be material) and have been prepared in good faith by the
Credit Parties.

     

    (iii) Since
September 30, 2009, no event or development has occurred and is continuing that
has had or could reasonably be expected to have a Material Adverse
Effect.

     

    (h) Compliance with Law,
Etc.  No Credit Party is in violation of its Governing
Documents, any Requirements of Law (other than violations which, individually or
in the aggregate, have not had and could not reasonably be expected to have a
Material Adverse Effect), any judgment or order of any Governmental Authority
applicable to it or any of its property or assets, or any Material Contract
binding on it or any of its properties (other than violations which,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect).  The Credit Parties have policies in place
to observe the requirements of the Patriot Act related requirements consistent
with U.S. Industry practice.

     

    (i) ERISA.  Neither
the Credit Parties nor any ERISA Affiliate has (i) any “accumulated funding
deficiency” (within the meaning of Section 412 of the Code and
Section 302 of ERISA), whether or not waived, with respect to any Benefit
Plan, (ii) failed to make any contribution or payment to any Benefit Plan
which has resulted, or could reasonably be expected to result, in the imposition
of a Lien or the posting of a bond or other security under Section 302(f)
of ERISA or Section 401(a)(29) of the Code, (iii) incurred, or is
reasonably likely to incur, any material liability under Title IV of ERISA
(other than a liability to the Pension Benefit Guaranty Corporation (or “PBGC”) for premiums
under Section 4007 of ERISA), or (iv) violated any provision of ERISA
that individually or in the aggregate can reasonably be expected to result in a
material liability to the Credit Parties taken as a whole.  Neither
the Credit Parties nor any ERISA Affiliate participates in or is obligated to
contribute to a Multiemployer Plan or any Plan other than a Benefit Plan, except
as specified on Schedule 6.01(i).

     

    (j) Taxes,
Etc.  All Federal, and all material state, provincial and local
tax returns and other material reports required by Applicable Law to be filed by
any Credit Party have been filed, or extensions have been obtained, except to
the extent subject to a Permitted Protest, and all taxes shown on such tax
returns to be due and payable and all assessments, fees and other governmental
charges upon such Credit Party and upon its properties, assets, income,
businesses and franchises that are due and payable have been paid when due and
payable; except to the extent subject to a Permitted Protest.

     

    
      
        
        

      

      
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    (k) Margin
Regulations.  No proceeds of any Loan will be used for any
purpose that violates, or which is inconsistent with, the provisions of
Regulation T, U or X of the Board of Governors of the Federal Reserve
System of the United States, as in effect from time to time.

     

    (l) Permits.  Such
Credit Party has, and is in compliance with, all permits, licenses,
authorizations, approvals, entitlements and accreditations (collectively, the
“Permits”) and
Mining Permits required for such Person lawfully to own, lease, manage or
operate each business and Property currently owned, leased, managed or operated
by such Person, except where the failure to have or to so comply, individually
or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.  No condition exists or event has occurred which, in itself or
with the giving of notice or lapse of time or both, would result in the
suspension, revocation, impairment, forfeiture or non-renewal of any Permit, and
there is no claim that any thereof is not in full force and effect, except, in
each case, with respect to any Permits the loss of which, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse
Effect.

     

    (m) Personal
Property.  Each Credit Party has good and marketable title to,
or valid leasehold interests in all Property material to its business, except
for minor defects in title that could not reasonably be expected to interfere
with its ability to conduct its business as currently conducted or as proposed
to be conducted, free and clear of all Liens except Permitted
Encumbrances.  All such Properties are in good working order and
condition, ordinary wear and tear excepted, except to the extent that the
failure to be in such condition could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     

    (n) Real
Estate.

     

    (i) Owned Real
Estate.  Schedule 6.01(n)(i)
sets forth the address (or, in respect of any properties that have no addresses,
legal descriptions with book and page number references) of each Real Estate
Asset (including the Mortgaged Properties) that is owned by a Credit Party as of
the Closing Date.  Except as set forth on such Schedule, no Credit
Party owns any Real Estate Assets.  Except as set forth on such
Schedule, no Credit Party owns any Mines.

     

    (ii) Mines.  Schedule 6.01(n)(ii)
sets forth a complete and accurate list of all Mines (including addresses (or,
in respect of any properties that have no addresses, locations) and the owner
and operator thereof) owned or operated by a Credit Party as of the Closing
Date.  Except as set forth on such Schedule, no Credit Party leases
any Mines.

     

    (iii) Leases.  Schedule 6.01(n)(iii)
sets forth a complete and accurate list of all (A) Mining Leases (including
addresses (or, in respect of any properties that have no addresses, locations)
of the subject coal reserves and the lessor thereof), and (B) all Prep
Plant Leases (including addresses (or in respect of any properties that have no
addresses, locations) of the subject properties and lessor thereof) and
(C) all other Leases. Except as set forth on such Schedule, no Credit Party
is a party to any Lease that constitutes a Material Contract.

     

    
      
        
        

      

      
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    (iv) Permits.  With
respect to each Mining Lease and each Prep Plant Lease, a Credit Party possesses
all leasehold interest mining rights and Mining Permits necessary for the
operation of the applicable Mine or Coal Handling Facility, as the case may be,
currently being operated on such parcel, and each of its rights under all
applicable Mining Permits, contracts, rights-of-way and easements necessary for
the operation of such Mine or such Coal Handling Facility, as the case may be,
is in full force and effect and no default exists thereunder, except to the
extent that such defaults or the failure to maintain such lease, mining rights,
Mining Permits, contracts, rights of way and easements in full force and effect
has not had and could not reasonably be expected to result in a Material Adverse
Effect on the operation and intended use of such parcel by the Credit
Parties.

     

    (v) Title.  Each
Credit Party has, and is the sole owner of, good, insurable and marketable fee
simple title to all of its owned Real Estate Assets and a good and valid
leasehold estate and title in and to its leased Real Estate Assets, and has all
necessary right, power and authority to mortgage, encumber, give, grant,
bargain, sell, convey, confirm, pledge, assign, and hypothecate all of the Real
Estate Assets in accordance with the terms of this Agreement, and none of its
Real Estate Assets are subject to Liens other than Permitted
Encumbrances.

     

    (vi) No Defaults Under Material
Contracts.  The Administrative Borrower has delivered to the
Administrative Agent a true and complete copy of each Material
Contract.  As of the Closing Date, no Material Contract shall have
been further amended, modified, extended or supplemented in any
way.  Each Material Contract is in full force and effect and no Credit
Party has any knowledge of any default that has occurred and is continuing
thereunder.  Each Material Contract constitutes the legally valid and
binding obligation of each applicable Credit Party, enforceable against such
Credit Party in accordance with its terms, except as enforcement may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws relating
to or limiting creditors’ rights generally or by equitable
principles.

     

    (vii) Restrictions on
Use.  No part of any Real Estate Asset is subject to any
building or use restrictions that would prevent or interfere in any material
respect with the current use and operation of such Real Estate Asset in any
material respect.  Each Real Estate Asset is properly and duly zoned
for its current use, and such current use is in all material respects a
conforming use or a non-conforming use permitted by variance or other Applicable
Law.  No Governmental Authority having jurisdiction over any Real
Estate Asset has issued or, to the knowledge of any Credit Party, has threatened
to issue any notice or order that adversely affects in any material respect the
use or operation of such Real Estate Asset, or requires, as of the date hereof
or a specified date in the future, any material repairs, alterations, additions
or improvements to such Real Estate Asset, or the payment or dedication of any
money, fee, exaction or property other than amounts (such as taxes and utility
charges) due in the ordinary course of the ownership, use or operation of such
Real Estate Asset.

     

    
      
        
        

      

      
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    (viii) Condemnation.  As
of the Closing Date, there are neither any actual, nor, to the knowledge of any
Credit Party, any threatened or contemplated condemnation or eminent domain
proceedings that affect any Real Estate Asset or any part thereof, except to the
extent that such proceedings, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, and no Credit Party
has received any notice, oral or written, of the intention of any Governmental
Authority or other Person to take or use all or any part thereof.

     

    (ix) Mechanics’
Liens.  No labor has been performed and no material has been
furnished for any portion of any Real Estate Asset for which full payment has
not been made and for which a mechanic’s or materialmen’s lien, or any other
Lien, can be claimed by any Person, other than Permitted
Encumbrances.

     

    (x) Encroachments.  No
improvements constituting a part of such Real Estate Asset encroach on any real
property not owned or leased by a particular Credit Party.

     

    (xi) Repairs and
Alterations.  As of the Closing Date, no Credit Party has
received any notice from any insurance company which has issued an insurance
policy with respect to any Real Estate Asset requesting performance of any
structural or other repairs or alterations to such Real Estate
Asset.

     

    (xii) Access to Public
Streets.  Each parcel (or group of parcels) comprising each
Real Estate Asset is located on public roads and streets with adequate ingress
and egress available between such streets and such Real Estate Asset or
otherwise has access to public roads and streets pursuant to access easements
benefiting such Real Estate Asset and that are Mortgaged
Properties.

     

    (xiii) Utilities.  All
utility systems required in connection with the use, occupancy and operation of
each Real Estate Asset are sufficient for their present purposes, are fully
operational and in working order, and are benefited by customary utility
easements providing for the continued use and maintenance of such systems or, in
the case of a leased Real Estate Asset, the Credit Party leasing the same has
valid and enforceable rights to the same under the applicable Lease or
otherwise.

     

    (xiv) Parking.  Each
Real Estate Asset consists of or otherwise has rights to use sufficient land,
parking areas, sidewalks, driveways and other improvements to permit the
continued use of such Real Estate Asset in the manner and for the purposes to
which it is presently devoted.

     

    (xv) Non-Foreign
Status.  No Credit Party is a “foreign person” as defined in
Section 1445 of the Code.

     

    
      
        
        

      

      
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    (o) Full
Disclosure.  None of the reports, financial statements,
certificates or other written information furnished by or on behalf of a Credit
Party to the Administrative Agent or the Collateral Agent under this Agreement
or any other Loan Document in connection with the negotiation of this Agreement
or any other Loan Document or delivered hereunder or thereunder (as modified or
supplemented by other information so furnished) contains any misstatement of
fact or omits to state any fact necessary to make the statements therein, taken
as a whole, in the light of the circumstances under which it was made, not
materially misleading; provided that to the extent
any such reports, financial statements, certificates or other written
information therein was based upon or constitutes a forecast or projection, such
Credit Party represents only that the relevant Credit Party acted in good faith
and utilized assumptions believed by it to be reasonable at the time made (it
being understood that any such forecasts or projections are subject to
significant uncertainties and contingencies, many of which are beyond the Credit
Parties’ control, that no assurance can be given that any such forecasts or
projections will be realized and that actual results may differ from any such
forecasts or projections and such differences may be material).  As of
each Funding Date, there are no contingent liabilities or obligations that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

     

    (p) Environmental
Matters.  Except as set forth on Schedule 6.01(p),
(i) the operations of each Credit Party are and have been in material
compliance with all applicable Environmental Laws, (ii) there has been no
Release on, in, at, to, from or under any of the properties currently or, to the
knowledge of the Credit Parties, formerly, owned or operated by any Credit Party
or a predecessor in interest for whom any Credit Party could be held liable that
could reasonably be expected to result in any material Environmental Liabilities
and Costs to any Credit Party, (iii) no Environmental Action has been
asserted or threatened against any Credit Party which is unresolved, nor to the
knowledge of any Credit Party are there any threatened Environmental Actions
against a Credit Party that in either case could reasonably be expected to
result in any material Environmental Liabilities and Costs to any Credit Party,
(iv) to the knowledge of the Credit Parties no Environmental Action has
been asserted against any facilities that have received Hazardous Materials
generated by a Credit Party or any predecessor in interest for whom any Credit
Party could be held liable that could reasonably be expected to result in any
material Environmental Liabilities and Costs to any Credit Party, (v) none
of the Credit Parties is subject to any outstanding order, decree, injunction or
other agreement with any Governmental Authority or any indemnity or other
agreement (other than routine permits, approvals, credit agreements and lease
terms) imposing obligations with any third party relating to any Environmental
Law that could reasonably be expected to result in any material Environmental
Liabilities and Costs to any Credit Party, (vi) to the knowledge of any
Credit Parties there are no other circumstances or existing conditions involving
any Credit Party that could reasonably be expected to result in any such Credit
Party becoming the subject of any Environmental Actions or material
Environmental Liabilities and Costs including any restriction on the ownership,
use, or transfer of any property in connection with any Environmental Law, and
(vii) the Credit Parties made available to the Administrative Agent copies
of all material environmental reports, studies, assessments and other material,
non-privileged environmental documents in its possession relating to the Credit
Parties and their current and former properties and operations.

     

    (q) Coal Act; Black Lung
Act.  Each Credit Party and each of their respective “related
persons” (as defined in the Coal Act) are in compliance with the Coal Act and
none of the Credit Parties or their respective related persons has any liability
under the Coal Act except with respect to premiums or other payments required
thereunder that have been paid when due, except if subject to a Permitted
Protest.  Each Credit Party is in compliance with the Black Lung Act,
and no Credit Party has any liability under the Black Lung Act except with
respect to premiums, contributions or other payments required thereunder that
have been paid when due, except if subject to a Permitted Protest.

     

    
      
        
        

      

      
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    (r) Coal Supply
Agreements.  Schedule 6.01(r) sets
forth a complete and accurate list of each Coal Supply Agreement to which a
Credit Party is a party as of the Closing Date, including the counterparty to
each such agreement.  As of the Closing Date, each such Coal Supply
Agreement is in full force and effect and the Credit Parties are in compliance
with their obligations thereunder, except to the extent that any such failure to
be in full force and effect or in compliance could not reasonably be expected
individually or in the aggregate to result in a Material Adverse
Effect.

     

    (s) Surety
Bonds.  All surety, reclamation and similar bonds required to
be maintained by a Credit Party under any Requirement of Law or pursuant to any
contractual obligation binding on any of them are in full force and effect and
were not and will not be terminated, suspended, revoked or otherwise adversely
affected as a result of the Loans; provided that
(i) self-bonding permitted under any Requirement of Law prior to the
Closing Date may be required to be replaced following the Closing Date with
surety bonds, (ii) the cost of such bonds may be increased and
(iii) certain of such bonds may be terminated, suspended or revoked, provided that, taken
together, the events specified in clauses (i), (ii) and (iii) above could not
reasonably be expected to result in a Material Adverse Effect.  All
required guarantees of, and letters of credit with respect to, such surety,
reclamation and similar bonds are in full force and effect except where such
failure to be in full force and effect could not reasonably be expected to
result in a Material Adverse Effect.

     

    (t) Insurance.  Each
Credit Party keeps its property adequately insured and maintains
(i) insurance to such extent and against such risks, including fire, as is
customary with companies in the same or similar businesses, (ii) workmen’s
compensation insurance in the amount required by Applicable Law,
(iii) public liability insurance, which shall include product liability
insurance, but only to the extent and in the amount customary with companies in
the same or similar business against claims for personal injury or death on
properties owned, occupied or controlled by it, and (iv) such other
insurance as may be required by law (including against larceny, embezzlement or
other criminal misappropriation).  Schedule 6.01(t)
sets forth a list of all insurance maintained by such Credit Party on the
Closing Date.

     

    (u) Solvency.  Each
Credit Party is and, after giving effect to each of the transactions
contemplated by the Loan Documents, the Credit Parties, taken as a whole, will
be, Solvent.

     

    (v) Location of Bank
Accounts.  Schedule 6.01(v)
sets forth a complete and accurate list of all Deposit Accounts and Securities
Accounts of the Credit Parties, together with a description thereof (i.e., the
bank or securities firm at which such Deposit Account or Securities Account is
maintained and the account number and the purpose thereof).  Except to
the extent specified in Schedule 6.01(v), or
as specified in SECTION 9.15 the
Collateral Agent has a control agreement for each such Securities
Account.

     

    (w) Intellectual
Property.  Schedule 6.01(w) sets
forth a true and complete list of all Registered Intellectual Property owned by
the Credit Parties, indicating for each registered item the registration or
application number and the applicable filing jurisdiction.  The Credit
Parties exclusively own (beneficially and of record, where applicable) all
right, title and interest in and to all Registered Intellectual Property set
forth on Schedule 6.01(w)
free and clear of all Liens other than such exceptions as may be set forth in
Schedule
6.01(w) and 

     

    
      
        
        

      

      
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    own or
have rights in and to all other Intellectual Property material to its business
or used in the business of the Credit Parties.  Except as could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect (i) neither the Registered Intellectual Property set forth
on Schedule
6.01(w) nor any other Intellectual Property material to its business or
used in the business of the Credit Parties is subject to any outstanding order,
judgment or decree adversely affecting the Credit Parties’ use thereof or their
rights thereto and, all of the rights of the Credit Parties in and to such
Intellectual Property is valid, subsisting and enforceable; (ii) to the
knowledge of the Credit Parties, the conduct of the Credit Parties does not
infringe or otherwise violate the rights of any third party in any respect;
(iii) the Credit Parties have sufficient rights to use all Intellectual
Property material to their business and, all such Intellectual Property is
Registered Intellectual Property; and (iv) there is no litigation,
opposition, cancellation, proceeding, objection or claim pending, or, to the
knowledge of the Credit Parties, asserted or threatened against the Credit
Parties concerning the ownership, validity, registerability, enforceability,
infringement or use of, or licensed right to use, any Intellectual Property,
including the Registered Intellectual Property.

     

    (x) Material
Contracts.  Set forth on Schedule M-1 is a
complete and accurate list as of the Closing Date of all Material Contracts to
which any Credit Party is a party showing the parties and subject matter thereof
and amendments and modifications thereto.  The Borrower has delivered
true and complete copies of all Material Contracts, including all amendments
thereto, to the Lenders.  As of the Closing Date, each such Material
Contract is in full force and effect and the Borrowers and their Subsidiaries
are in compliance with their obligations thereunder, except to the extent that
such failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  In addition
the Credit Parties are in compliance with all other contractual obligations
binding upon them, except to the extent that any such failure to be in
compliance could not reasonably be expected individually or in the aggregate to
result in a Material Adverse Effect.

     

    (y) Holding Company and
Investment Company Acts.  None of the Credit Parties is, or is
controlled by, an “investment company” or an “affiliated person” or “promoter”
of, or “principal underwriter” of or for, an “investment company” as such terms
are defined in the Investment Company Act of 1940, as amended.

     

    (z) Employee and Labor
Matters.  As of the Closing Date there is (i) no unfair
labor practice complaint pending or, to the best of any Credit Party’s
knowledge, threatened against any Credit Party before any Governmental Authority
and no grievance or arbitration proceeding pending or, to the best of such
Credit Party’s knowledge, threatened against any Credit Party which arises out
of or under any collective bargaining agreement, and (ii) no strike, labor
dispute, slowdown, stoppage or similar action or grievance pending or, to the
best of such Credit Party’s knowledge, threatened against any Credit Party that,
in the case of clause (i) or (ii) could reasonably be expected to have a
Material Adverse Effect.

     

    
      
        
        

      

      
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    (aa) Location of Collateral;
Chief Place of Business; Chief Executive Office FEIN;
Name.  All of the Inventory is located on one of the locations
listed on Schedule 6.01(aa)(1).  All
of the Equipment is located on one of the locations listed on Schedule 6.01(aa)(2).
Schedules 6.01(aa)(1)
and (2) contain
a true, correct and complete list, as of the Closing Date, of the legal names
and addresses of each warehouse at which the Inventory or Equipment, as the case
may be, is stored.  None of the receipts received by such Credit Party
from any warehouse states that the goods covered thereby are to be delivered to
bearer or to the order of a named Person or to a named Person and such named
Person’s assigns.  Schedule 6.01(aa)(3)
sets forth a complete and accurate list as of the date hereof of (i) each
place of business (other than a location that is only a sales office) of each
Credit Party, (ii) the chief executive office of each Credit Party,
(iii) the exact legal name of each Credit Party, (iv) the jurisdiction
of organization of each Credit Party, (v) the organizational identification
number of each Credit Party (or indicates that such Credit Party has no
organizational identification number) and (vi) the federal employer
identification number of such Credit Party.  Attached hereto as Schedule 6.01(aa)(4)
is a schedule setting forth, with respect to each Mortgaged Property, the name
of the Credit Party that owns or leases such property and the only filing
office(s) in which a Mortgage and/or local UCC-1 financing statement with
respect to such Credit Party and such property must be filed or recorded in
order for the Collateral Agent to obtain a perfected mortgage lien and security
interest in such Mortgaged Property.

     

    (bb) Equipment; Inventory
Records; Commercial Tort Claims.  Each material item of
Equipment of the Credit Parties is used or held for use in their business and is
in good working order, ordinary wear and tear and damage by casualty
excepted.  Each Credit Party keeps correct and accurate records
itemizing and describing the type, quality, and quantity of Inventory and the
book value thereof in all material respects.  As of the Closing Date,
Schedule 6.01(bb)
sets forth a true and complete list of all commercial tort claims of the Credit
Parties.

     

    (cc) Security
Interests.  Each Security Document creates in favor of the
Collateral Agent a legal, valid and enforceable security interest in the
Collateral purported to be secured thereby.  Upon the filing of the
UCC-1 financing statements and the recording of the Intellectual Property
Security Agreements referred to in the Security Agreement in the United States
Patent and Trademark Office and the United States Copyright Office, such
security interests in and Liens on the Collateral granted thereby shall be
perfected security interests, in each case to the extent a Lien thereon can be
perfected by filing pursuant to the UCC or by the recording of such Intellectual
Property Security Agreements in the United States Patent and Trademark Office or
the United States Copyright Office, and no further recordings or filings are or
will be required in connection with the creation, perfection or enforcement of
such security interests and Liens, other than (i) the filing of
continuation statements or financing change statements in accordance with
Applicable Law, (ii) the recording of the Intellectual Property Security
Agreements pursuant to the Security Agreement in the United States Patent and
Trademark Office and the United States Copyright Office, as applicable, with
respect to after-acquired United States patent and trademark applications and
registrations and United States copyrights and additional filings and/or other
actions as may be required to perfect the Collateral Agent’s lien in Registered
Intellectual Property under the laws of a jurisdiction outside the United
States, and (iii) additional filings if a relevant Credit Party changes its
name, identity or organizational structure or the jurisdiction in which each
relevant Credit Party is organized.

     

    
      
        
        

      

      
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    (dd) Foreign Assets Control
Regulations, Etc.

     

    (i) OFAC.  Each
Credit Party and each Subsidiary of Credit Party is and will remain in
compliance in all material respects with all U.S. economic sanctions laws,
Executive Orders and implementing regulations as promulgated by the U.S.
Treasury Department’s Office of Foreign Assets Control (“OFAC”), and all
applicable anti-money laundering and counter-terrorism financing provisions of
the Bank Secrecy Act and all regulations issued pursuant to it.  No
Credit Party and no Subsidiary or Affiliate of a Credit Party (i) is a Person
designated by the U.S. government on the list of the Specially Designated
Nationals and Blocked Persons (the “SDN List”) with which
a U.S. Person cannot deal with or otherwise engage in business transactions,
(ii) is a Person who is otherwise the target of U.S. economic sanctions laws
such that a U.S. Person cannot deal or otherwise engage in business transactions
with such Person or (iii) is controlled by (including without limitation by
virtue of such person being a director or owning voting shares or interests), or
acts, directly or indirectly, for or on behalf of, any person or entity on the
SDN List or a foreign government that is the target of U.S. economic sanctions
prohibitions such that the entry into, or performance under, this Agreement or
any other Loan Document would be prohibited under U.S. law.

     

    (ii) Patriot
Act.  The Credit Parties, each of their Subsidiaries and each
of their Affiliates are in compliance with (a) the Trading with the Enemy
Act, and each of the foreign assets control regulations of the United States
Treasury Department (31 CFR, Subtitle B Chapter V, as amended) and any
other enabling legislation or executive order relating thereto, (b) the
Patriot Act and (c) other federal or state laws relating to “know your customer” and
anti-money laundering rules and regulations.  No part of the proceeds
of any Loan will be used directly or indirectly for any payments to any
government official or employee, political party, official of a political party,
candidate for political office, or anyone else acting in an official capacity,
in order to obtain, retain or direct business or obtain any improper advantage,
in violation of the United States Foreign Corrupt Practices Act of
1977.

     

    (ee) Equipment
Leases.  Each Credit Party has good and indefeasible title to,
or a valid leasehold interest in, all of its material personal property, in each
case, free and clear of Liens except for Permitted Encumbrances.  The
Credit Parties enjoy peaceful and undisturbed possession under all leases of
Equipment and other personal property material to their business and to which
they are parties or under which they are operating, and all of such material
leases are valid and subsisting.

     

    (ff) Borrowing Base Cash
Collateral.  None of the Borrowing Base Cash Collateral
includes any of the cash collateral in respect of the Term Loan Obligations or
any cash proceeds from any other Term Loan Priority Collateral.

     

    ARTICLE
VII

    REPORTING
COVENANTS

     

    Each
Credit Party covenants and agrees that, so long as any Lender shall have any
Commitment hereunder, or any Loan or other Obligation (other than contingent
indemnification Obligations to the extent no claim giving rise thereto has been
asserted) shall remain unpaid or unsatisfied:

     

    
      
        
        

      

      
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    SECTION
7.01 Financial
Statements.  Each Credit Party (a) shall keep, and cause
each of its Subsidiaries to keep, proper books of record and account, in which
true and correct entries shall be made of all material financial transactions
and the assets and business of the Credit Parties, and (b) shall maintain a
system of accounting established and administered in accordance with sound
business practices to permit preparation of consolidated financial statements in
conformity with GAAP, and each of the financial statements described below shall
be prepared from such system and records.  The Administrative Borrower
shall deliver or cause to be delivered to the Administrative Agent:

     

    (a) Monthly
Reports.  As soon as available, but in any event within
thirty (30) days after the end of each Fiscal Month (and with respect to
the last Fiscal Month of each Fiscal Quarter of the Administrative Borrower
(including the last Fiscal Month of the Administrative Borrower’s Fiscal Year),
forty-five (45) days after the end of such Fiscal Month), (i) a
consolidated balance sheet for the Credit Parties as at the end of such Fiscal
Month (and showing a comparison to the same period from the previous Fiscal Year
and the projections for such period), (ii) the related consolidated
statements of income of the Credit Parties for such Fiscal Month, (iii) the
related consolidated statements of cash flow of the Credit Parties for such
Fiscal Month, and (iv) the related unaudited consolidated statements of
income and cash flow, in each case, for such Fiscal Month and for the period
commencing on the first day of such Fiscal Year and ending the last day of such
Fiscal Month (and showing a comparison to the same periods from the previous
Fiscal Year and the projections for such period), in a form reasonably
satisfactory to the Administrative Agent and certified by an Authorized Officer
of the Administrative Borrower as fairly presenting, in all material respects,
the financial position of the Credit Parties as at the dates indicated and the
results of their operations for the Fiscal Months indicated, such consolidated
balance sheets and consolidated statements of income in accordance with GAAP,
subject to normal year-end adjustments and the absence of
footnotes.

     

    (b) Quarterly
Reports.  As soon as available, but in any event within
forty-five (45) days after the end of each Fiscal Quarter in each Fiscal
Year (including the last Fiscal Quarter of each Fiscal Year) (i) the
quarterly report of Administrative Borrower required to be filed with the SEC
pursuant to Section 13 or 15(d) of the Securities Exchange Act,
including the unaudited consolidated balance sheets of the Credit Parties as at
the end of such period, the related unaudited consolidated statements of income
and cash flow of the Credit Parties and the related unaudited consolidated
statements of income for such Fiscal Quarter or if such quarterly reports are
not filed with the SEC for any reason, the unaudited consolidated balance sheets
of the Credit Parties as at the end of such period, the related unaudited
consolidated statements of income and cash flow of the Credit Parties and the
related unaudited consolidated statements of income for such Fiscal Quarter,
(ii) a certificate of a Senior Officer of the Administrative Borrower
stating that such unaudited financial information fairly presents, in all
material respects, the financial position of the Credit Parties as at the dates
indicated and the results of its operations and cash flow for the Fiscal
Quarters indicated, such consolidated balance sheets and consolidated statements
of income and cash flow in accordance with GAAP, subject to normal year-end
adjustments and the absence of footnotes, (iii) a copy of the quarterly
updated litigation report for such Fiscal Quarter; provided, however, to the
extent such quarterly report filed with the SEC contains a complete and correct
disclosure regarding litigation, such quarterly report shall be deemed to
satisfy this clause, (iv) a
detailed report of all Asset Dispositions permitted by 
SECTION 9.04, (v) an
update of Schedule 6.01(v)
reflecting all changes since the last update, and (vi) an updated list of
all Coal Supply Agreements in reasonable detail reflecting all changes since the
last update.

     

    
      
        
        

      

      
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    (c) Annual
Reports.  As soon as available, but in any event within
ninety (90) days after the end of each Fiscal Year (i) the annual
report of Administrative Borrower required to be filed with the SEC pursuant to
Section 13 or 15(d) of the Securities Exchange Act, including the
audited consolidated balance sheets of the Credit Parties as of the end of such
Fiscal Year, the related audited consolidated statements of income,
stockholders’ equity and cash flow of the Credit Parties and the related
unaudited consolidated statements of income of the Credit Parties for such
Fiscal Year or if such annual reports are not filed with the SEC for any reason,
the audited consolidated balance sheets of the Credit Parties as of the end of
such Fiscal Year, the related audited consolidated statements of income,
stockholders’ equity and cash flow of the Credit Parties and the related
unaudited consolidated statements of income of the Credit Parties for such
Fiscal Year and (ii) a report on such financial statements of KPMG LLP or
other independent public accountants of nationally recognized standing or other
independent certified public accountants reasonably acceptable to the
Administrative Agent, which report shall be unqualified in all material
respects.

     

    (d) Officer’s Certificate;
Etc.  Together with each delivery of any financial statement
pursuant to subsections (a) and
(b) of this 
SECTION 7.01 and
promptly upon the commencement of a Trigger Event Period, (i) an Officer’s
Certificate substantially in the form of Exhibit O-1
attached hereto and made a part hereof, stating that a Senior Officer signatory
thereto has reviewed the terms of the Loan Documents, and has made, or caused to
be made under his or her supervision, a review in reasonable detail of the
transactions and consolidated financial condition of the Credit Parties during
the accounting period or Measurement Period covered by such financial
statements, that such review has not disclosed the existence during or at the
end of such period, and that such officer does not have knowledge of the
existence as at the date of such Officer’s Certificate, of any condition or
event which constitutes an Event of Default or a continuing Default, if any such
condition or event existed or exists, specifying the nature and period of
existence thereof and what action the Borrowers and their Subsidiaries have
taken, are taking and propose to take with respect thereto (the “Officer’s
Certificate”), and (ii) a certificate substantially in the form of
Exhibit C-2
attached hereto and made a part hereof (the “Compliance
Certificate”), signed by the Borrower’s Senior Officer or other Senior
Officer, setting forth calculations (with such specificity as the Administrative
Agent may reasonably request) for the period then ended which demonstrate
compliance, when applicable, with the provisions of 
ARTICLE IX and 
ARTICLE X during such
period (or, upon the commencement of a Trigger Event Period, the relevant
period).

     

    (e) Budgets; Business Plans;
Financial Projections.  As soon as practicable and in any event
not later than thirty (30) days prior to the beginning of each Fiscal Year, the
Administrative Borrower shall deliver to Administrative Agent their financial
forecast, prepared in accordance with the Borrowers’ normal accounting
procedures applied on a consistent basis, on a monthly basis for the upcoming
Fiscal Year and on an annual basis for the next succeeding Fiscal Year prior to
the Maturity Date, including (i) a forecasted consolidated and
consolidating balance sheet, and the related consolidated and consolidating
statements of income and cash flows of the Credit Parties for and as of the end
of such Fiscal Year, and (ii) the amount of forecasted Capital Expenditures
for such Fiscal Year.

     

    
      
        
        

      

      
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    (f) Shareholder Communications
and Press Releases.  To Administrative Agent, promptly upon
their becoming available, copies of: (i) all Financial Statements, reports,
notices and proxy statements made publicly available by any Credit Party to its
security holders; (ii) all regular and periodic reports and all registration
statements and prospectuses, if any, filed by any Credit Party with any
securities exchange or with the SEC or any governmental or private regulatory
authority; and (iii) all press releases and other statements made available by
any Credit Party to the public concerning material changes or developments in
the business of any such Person.

     

    (g) Collateral
Reporting.  Each Credit Party executing this Agreement hereby
agrees that, from and after the Closing Date and until the Termination Date, it
shall deliver to the Collateral Agent and the Lenders, as required, the various
collateral reports (including Borrowing Base Certificates) at the times, to the
Persons and in the manner set forth in Annex B.

     

    (h) Unrestricted Cash
Reporting.  The Administrative Borrower shall deliver to each
Agent on the fifteenth day of each calendar month, and at such other times as
the Administrative Agent may reasonably request, a report regarding Unrestricted
Cash for the prior calendar month (or such other period as the Administrative
Agent may request), in form and substance and with such supporting information
as the Administrative Agent may reasonably request.

     

    SECTION
7.02 Other Financial
Information.  The Administrative Borrower shall deliver to each
Agent any Credit Party’s such other information, with respect to (a) the
Collateral, or (b) any Credit Party’s business, financial condition,
results of operations, properties, projections, business or business prospects
as such Agent may, from time to time, reasonably request.  The Credit
Parties hereby authorize each Agent and its representatives to communicate
directly with the certified public accountants for the Borrowers so long as the
Agent provides a Senior Officer of such Credit Party the opportunity to
participate in such communication and authorizes the accountants to disclose to
each Agent, each Lender and their respective representatives any and all
financial statements and other financial information, including copies of any
final management letter, that such accountants may have with respect to the
Collateral or such Credit Party’s financial condition, results of operations,
properties, projections, business, and business prospects.  The Agents
and such representatives shall treat any non-public information so obtained as
confidential.

     

    SECTION
7.03 Defaults, Events of
Default.  Promptly upon any Senior Officer obtaining knowledge
of any condition or event which constitutes a breach or violation of any of the
covenants, representations or conditions of this Agreement, an Event of Default
or a Default, each Credit Party shall deliver to the Administrative Agent an
Officer’s Certificate specifying (a) the nature and period of existence of
any such claimed Event of Default, Default, condition or event, (b) the
notice given or action taken by such Person in connection therewith, and
(c) what action such Credit Party has taken, is and proposes to take with
respect thereto.

     

    
      
        
        

      

      
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    SECTION
7.04 Lawsuits.  (a) Promptly
upon any Credit Party obtaining knowledge of the institution of, or written
threat of (i) any action, suit, proceeding or arbitration against or
affecting such Credit Party or any asset of such Credit Party or not previously
disclosed pursuant to 
SECTION 6.01(f),
which action, suit, proceeding or arbitration could reasonably be expected to
have a Material Adverse Effect, (ii) any investigation or proceeding before
or by any Governmental Authority, the effect of which could reasonably be
expected to materially limit, prohibit or restrict the manner in which such
Credit Party currently conducts its business, (iii) any Forfeiture
Proceeding, or (iv) any material Condemnation or Condemnation proceeding,
such Credit Party shall give written notice thereof to the Administrative Agent
and provide such other information reasonably requested by the Administrative
Agent as may be reasonably available to enable the Administrative Agent to
evaluate such matters except, in each case, where the same is fully covered by
insurance (other than applicable deductible), and (b) in addition to the
requirements set forth in clause (a) of
this 
SECTION 7.04, such
Credit Party upon request of the Administrative Agent, shall promptly give
written notice of the status of any action, suit, proceeding, governmental
investigation or arbitration covered by a report delivered pursuant to clause (a) above
and provide such other information as may be reasonably requested by the
Administrative Agent and reasonably available to such Credit Party to enable the
Administrative Agent to evaluate such matters.

     

    SECTION
7.05 Insurance.  As
soon as practicable and in any event within three (3) Business Days of any
notice of nonrenewal or cancellation without replacement thereof of any material
insurance coverage set forth on the most recent schedule delivered pursuant to 
SECTION 6.01(t), as
applicable, the Administrative Borrower shall deliver to the Administrative
Agent a copy of any such notice.

     

    SECTION
7.06 Environmental
Notices.  The Administrative Borrower shall, and shall cause
the Credit Parties to, notify the Administrative Agent and the Collateral Agent,
in writing, promptly, and in any event within five (5) Business Days after
such Credit Party’s obtaining knowledge thereof, of
any:  (a) notice or claim to the effect that such Credit Party is
or may be liable to any Person as a result of the Release of any Hazardous
Material; (b) investigation by any Governmental Authority of any Credit
Party evaluating whether any Remedial Action is needed to respond to the Release
of any Hazardous Material; (c) notice that any Property of such Credit
Party is subject to an Environmental Lien; (d) any material violation of
Environmental Laws by such Credit Party or awareness by such Credit Party of a
condition which would reasonably be expected to result in a material violation
of any Environmental Law by such Credit Party; (e) commencement or written
threat of any judicial or administrative proceeding alleging a violation of or
liability under any Environmental Law involving such Credit Party; (f) any
proposed acquisition of stock, assets, real estate or leasing of property, or
any other action by such Credit Party that would reasonably be expected to
subject such Credit Party to material Environmental Liabilities and Costs; or
(g) document provided to a Governmental Authority concerning any Release of
a Hazardous Material in excess of any reportable quantity from or onto property
owned or operated by such Credit Party or any release or event requiring
reporting pursuant to any Environmental Law or any material obligation to take
any Remedial Action to abate any Release.  For purposes of clauses (a),
(b), (c) and (d), notice shall
include any other written communications given to an agent or employee of the
Credit Party with direct or indirect supervisory responsibility with respect to
the activity, if any, which is the subject of such
communication.  With respect to clauses (a)
through (g)
above, such notice shall be required only if (i) the liability or potential
liability, or with respect to clause (g), the
cost or potential cost of compliance, which is the subject matter of the notice
is reasonably likely to exceed one hundred thousand Dollars ($100,000), or if
(ii) such liability or potential liability or cost of compliance when added
to other ongoing or pending liabilities of such Credit Party of the kind covered
by clauses (a)
through (f) above is reasonably likely to exceed two hundred and fifty thousand
Dollars ($250,000).  Upon the written request of the Administrative
Agent, the Credit Parties shall provide the Administrative Agent with copies of
any non-privileged documents related to any matter for which notice has been
given pursuant to this 
SECTION
7.06.

     

    
      
        
        

      

      
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    SECTION
7.07 Labor
Matters.  The Administrative Borrower shall, and shall cause
each Credit Party to, notify the Administrative Agent in writing, promptly, but
in any event within three (3) Business Days after learning thereof, of
(a) any material labor dispute to which any Credit Party could reasonably
be likely to become a party, any actual or threatened strikes, lockouts or other
disputes relating to such Credit Party’s plants and other facilities, and
(b) any material liability incurred with respect to the closing of any
plant or other facility of such Credit Party.

     

    SECTION
7.08 Unrestricted
Cash.  At any time Unrestricted Cash shall be less than
$75,000,000, the Administrative Borrower shall, and shall cause the Credit
Parties to, notify the Administrative Agent and the Collateral Agent, in
writing, promptly, and in any event within three (3) Business Days after
such Credit Party’s obtaining knowledge thereof.

     

    SECTION
7.09 KRP Collateral
Report.  (a) Promptly upon receiving a request therefor from
the Administrative Agent and (b) as soon as practicable and in any event within
three (3) Business Days of the commencement of any Trigger Event Period,
the Credit Parties shall prepare and deliver to the Administrative Agent a
report, in form and substance satisfactory to the Administrative Agent, setting
forth a summary of (a) Inventory located at each Real Estate Asset of the Credit
Parties subject to a Lease with KRP and (b) Accounts arising from mining
activities of the Credit Parties at each Real Estate Asset of the Credit Parties
subject to a Lease with KRP, in each case accompanied by such supporting detail
and documentation as shall be requested by either Agent in its reasonable
discretion.

     

    SECTION
7.10 Defaults Under Certain
Leases.  As soon as practicable and in any event within
three (3) Business Days after the receipt of any notice of default under
any Lease with KRP, the Administrative Borrower shall deliver to the
Administrative Agent a copy of any such notice.

     

    SECTION
7.11 Other
Information.  Promptly upon receiving a request therefor from
the Administrative Agent, each Credit Party shall prepare and deliver to the
Administrative Agent (a) such other information with respect to such Credit
Party’s business, financial condition, results of operations, properties,
projections, business or business prospects, (b) such other information
with respect to the Collateral, including, without limitation, schedules
identifying and describing the Collateral and any Dispositions thereof or
(c) such other information with respect to such Credit Party, as from time
to time may be reasonably requested by the Administrative Agent.

     

     

    
      
        
        

      

      
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    ARTICLE
VIII

    AFFIRMATIVE
COVENANTS

     

    Each
Credit Party covenants and agrees that, so long as any Lender shall have any
Commitment hereunder, or any Loan or other Obligation (other than contingent
indemnification Obligations to the extent no claim giving rise thereto has been
asserted) shall remain unpaid or unsatisfied:

     

    SECTION
8.01 Compliance with Laws and
Contractual Obligations.  Each Credit Party shall comply with
all Requirements of Law (including with respect to the licenses, approvals,
certificates, permits, franchises, notices, registrations and other governmental
authorizations necessary to the ownership of its respective properties or to the
conduct of its respective business, antitrust laws or Environmental Laws and
laws with respect to social security and pension funds obligations) except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.  Each Credit Party
shall comply with all obligations under Material Contracts, including the
Indenture and the Senior Convertible Notes Indenture.  In addition the
Credit Parties are in compliance with all other contractual obligations binding
upon them, except to the extent that any such failure to be in compliance could
not reasonably be expected individually or in the aggregate to result in a
Material Adverse Effect.  Each Credit Party shall have policies in
place to observe the applicable requirements of the Patriot Act related
requirements consistent with U.S. industry practice.

     

    SECTION
8.02 Payment of Taxes and
Claims.  Each Credit Party shall pay (a) all taxes,
assessments and other governmental charges imposed upon it or on any of its
properties or assets or in respect of any of its franchises, business, income or
property, and (b) all claims (including claims for labor, services,
materials and supplies) for sums material in the aggregate to such Credit Party
which have become due and payable and which by law have or may become a Lien
upon any of such Credit Party’s properties or assets, in each case prior to the
time when any penalty or fine will be incurred by the Credit Party with respect
thereto, except for such taxes, assessments, other governmental charges and
claims that are being contested in a Permitted Protest to the extent that
the failure to do so could not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect.

     

    SECTION
8.03 Conduct of Business and
Preservation of Corporate Existence.  Each Credit Party shall
(a) continue to engage in business of the same general type as now
conducted by the Credit Parties, taken as a whole, and (b) preserve and
maintain its corporate existence, rights (charter and statutory), licenses,
consents, permits, notices or approvals and franchises deemed material to its
business; provided that no Credit Party
shall be required to preserve any right or franchise if (i) the Credit
Party shall determine in good faith that the preservation thereof is no longer
necessary, and (ii) that the loss thereof could not reasonably be expected
to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    SECTION
8.04 Inspection of Property;
Books and Records; Discussions.

     

    (a) At any
reasonable time during normal business hours with prior notice, or at any time
without notice if a Default or Event of Default shall have occurred and be
continuing, each Credit Party shall permit any authorized representative(s)
designated by any Agent to visit and inspect any of its assets (including the
conducting of real estate appraisals (unless such appraisals are being conducted
by Term Loan Agent)), to examine, audit, check and make copies of their
respective financial and accounting records, books, journals, orders, receipts
and any correspondence with regulators and other data relating to their
respective businesses or the transactions contemplated by the Loan Documents
(including in connection with environmental compliance, hazard, liability or
insurance programs), and to discuss their affairs, finances and accounts with
their officers and independent certified public accountants.  The
visitations and/or inspections by or on behalf of any Agent shall be at the
Credit Parties’ expense and all costs and expenses incurred by the
Administrative Agent or the Collateral Agent in connection therewith shall
constitute Lender Expenses hereunder; provided that so long
as no Event of Default is continuing, the Credit Parties shall not be obligated
to pay for more than such visitations and/or inspections in any twelve
(12)-month period specified in SECTION 8.04(b) and
8.04(c)
below.  Each Credit Party shall keep and maintain in all material
respects proper, complete and accurate books of record and account, in which
entries in conformity with GAAP shall be made of all dealings and financial
transactions and the assets and business of such Credit Party in relation to
their respective businesses and activities, including transactions and other
dealings with respect to the Collateral.  If an Event of Default has
occurred and is continuing and the Loans have been accelerated, the
Administrative Borrower, upon the Administrative Agent or Collateral Agent’s
request, shall make copies of or turn over any such records to the
Administrative Agent, the Collateral Agent or their
representatives.

     

    (b) Upon
three (3) Business Days’ prior written notice to the Credit Parties, each
Credit Party shall permit any authorized representatives of the Collateral Agent
to conduct a field examination, at the Borrower’s expense, of any of the
properties of such Credit Party, including its and their financial and
accounting records, and to make copies and take extracts therefrom, and to
discuss its and their affairs, finances and business with its and their officers
and certified public accountants, at such reasonable times during normal
business hours and, subject to the proviso set forth below, as often as may be
reasonably requested (a “Field Examination”);
provided that
so long as no Event of Default is continuing, the Borrowers shall not be
obligated to pay the costs of more than four (4) field exams in any twelve (12)
-month period.

     

    (c) Each
Credit Party shall permit any authorized representatives of the Collateral Agent
to conduct an appraisal of the Inventory of such Credit Party at such Credit
Party’s expense; provided that so long
as no Event of Default is continuing, the Borrowers shall not be obligated to
pay the costs of more than two (2) such Inventory appraisals in any twelve (12)
- month period.

     

    
      
        
        

      

      
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    SECTION
8.05 Maintenance of
Properties.  Each Credit Party shall, maintain, preserve and
protect consistent with past practice all of their tangible properties and
Intellectual Property and other intangible assets which are material to the
conduct of their business in good working order and condition, ordinary wear and
tear excepted, except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect, and comply with the provisions of
all Material Contracts (including material Mining Leases) to which each of them
is a party so as to prevent any material loss or forfeiture thereof or
thereunder.  Further, each Credit Party shall maintain all other
contractual obligations binding upon it, except to the extent that any such
failure to do so could not reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect.  Each Credit Party
shall (a) maintain such Credit Party’s rights in all Intellectual Property
material to the conduct of its business, including all Registered Intellectual
Property and all Trade Secrets owned or licensed by such Credit Party (b) take
all commercially reasonable steps to preserve and protect such Intellectual
Property, including maintaining the quality of any and all products or services
used or provided in connection with any material Trademark, at least at the
level of quality of the products and services as of the Closing Date, and (c)
take all commercially reasonable steps to ensure that all licensed users of any
such Intellectual Property use such substantially consistent standards of
quality.

     

    SECTION
8.06 Transactions with
Affiliates.  Each
Credit Party shall conduct all transactions otherwise permitted under this
Agreement with any of its Affiliates on terms that are commercially reasonable
and no less favorable to such Credit Party than such Credit Party would obtain
in a comparable arm’s-length transaction with a Person that is not an Affiliate
of such Credit Party.

     

    SECTION
8.07 Further
Assurances.  Each Credit Party shall take such action and
execute, acknowledge and deliver, at its sole cost and expense, such agreements,
instruments or other documents as the Collateral Agent may reasonably require
from time to time in order (a) to carry out more effectively the purposes
of this Agreement and the other Loan Documents, (b) to obtain, maintain,
continue, validate or perfect its first-priority Liens on any of the Collateral
or any other property of the Credit Parties, (c) to establish and maintain
the validity and effectiveness of any of the Loan Documents and the validity,
perfection and priority of the Liens intended to be created thereby, and
(d) to better assure, convey, grant, assign, transfer and confirm unto the
Collateral Agent for the ratable benefit of the Lenders the rights now or
hereafter intended to be granted to the Collateral Agent for the ratable benefit
of the Lenders under this Agreement or any other Loan Document.

     

    SECTION
8.08 Additional Security;
Additional Guaranties; Further Assurances.

     

    (a) In the
event that any Credit Party acquires a fee interest in any Real Estate Asset and
such interest has not otherwise been made subject to a Lien in favor of the
Collateral Agent, for the benefit of the Lenders, then such Credit Party, within
ten (10) days after (or such later time as the Collateral Agent may agree in the
exercise of its reasonable discretion) acquiring such Real Estate Asset, shall
take all such actions and execute and deliver, or cause to be executed and
delivered, all such mortgages, documents, instruments, agreements, opinions and
certificates as the Collateral Agent shall reasonably request to create in favor
of the Collateral Agent, for the benefit of the Lenders, a valid and, subject to
any filing and/or recording referred to herein, perfected first-priority
security interest in such Real Estate Asset.  In addition to the
foregoing, the Administrative Borrower shall (a) deliver (x) an appraisal
complying with FIRREA (if and to the extent required by FIRREA) and (y) within
forty-five days of receipt of notice from the Administrative Agent or the
Collateral Agent that the Real Estate Asset is located in a Special Flood Hazard
Area, Federal Flood Insurance as required by SECTION 8.14 and (b)
at the request of the Required Lenders, deliver, from time to time, to the
Administrative Agent and the Collateral Agent such other appraisals as are
required by law or regulation of Real Estate Assets with respect to which the
Collateral Agent has been granted a Lien.

     

    
      
        
        

      

      
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    (b) If any
Credit Party enters into any Material Contract after the Closing Date, then such
Credit Party shall notify the Agents thereof within fifteen (15) days
thereafter, and such Credit Party shall promptly (and in any event, within
sixty (60) days following the date of such Material Contract (including any
Mining Lease that constitutes a Material Contract) or such later time as may
reasonably be necessary, in the Collateral Agent’s reasonable discretion) use
commercially reasonable efforts to execute and deliver to the Agents
(i) all such Mortgages, documents, instruments, agreements, opinions and
certificates that the Collateral Agent shall reasonably request to create in
favor of the Collateral Agent, for the benefit of the Lenders, a valid and
enforceable perfected first-priority Lien and security interest in such
Leasehold Property (subject to Permitted Encumbrances), (ii) each of the
documents, instruments and other materials related thereto as may be reasonably
requested by the Agents, (iii) using such Credit Party’s best efforts, a
landlord consent and estoppel if required under the applicable Lease, or
landlord estoppel certificate if no consent is required under the Lease; provided that any such
landlord consent and/or estoppel shall be in form and substance reasonably
acceptable to the Collateral Agent and shall address such matters as are
reasonably required by the Lenders, which shall include, but not be limited to,
a consent by the Landlord to the lien on such Lease in favor of the Collateral
Agent to secure the Obligations, a waiver by the landlord of all statutory or
other Liens that the Landlord has or could later have on any of the assets of
the Lessee under such Lease, (iv) evidence that the Lease (or a memorandum
thereof) has been recorded in all places necessary or desirable, in the
reasonable judgment of the Collateral Agent, to give constructive notice of such
Lease to third-party purchasers and encumbrances of the affected real property,
and (v) if requested by the Collateral Agent in respect of a Material Contract
that is a Lease under which a Credit Party is the landlord, a subordination,
non-disturbance and attornment agreement in a form reasonably acceptable to the
Collateral Agent.

     

    (c) Formation of
Subsidiaries.  The Credit Parties shall not form, acquire or
have any Subsidiaries other than Credit Parties, and Subsidiaries that are
acquired subject to the restrictions on Investments provided in 
SECTION 9.07 or in
accordance with this SECTION
8.08(c).

     

    (i) Each
Credit Party shall (i) cause each Person that becomes a Subsidiary of such
Credit Party after the Closing Date promptly (and in any event within ten (10)
days after the creation or acquisition of such Subsidiary) to guarantee the
Obligations and to grant to the Collateral Agent, for the benefit of the
Lenders, a security interest in the real, personal and mixed property of such
Subsidiary to secure the Obligations, and (ii) promptly (and in any event
within ten (10) days after the creation or acquisition of any Equity Interests)
pledge, or cause to be pledged, to the Collateral Agent, for the benefit of the
Collateral Agent and Lenders, all of the Equity Interests owned by a Credit
Party of each Person that becomes a direct Subsidiary of such Credit Party, and
all of the Equity Interests owned by a Credit Party, all in accordance with this

SECTION 8.08, in the
case of each of subclause (i) and (ii) above, to be accompanied by an opinion of
counsel to such Credit Party, in form and substance satisfactory to the
Administrative Agent.  The documentation for such guaranty, security
and pledge shall be in form and substance reasonably satisfactory to the
Administrative Agent or the Collateral Agent and shall be substantially similar
to the Loan Documents executed concurrently herewith with such modifications as
are reasonably requested by the Collateral Agent.

     

    
      
        
        

      

      
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    (ii) At the
time that any Credit Party forms any Subsidiary or acquires any Subsidiary after
the Closing Date, such Credit Party shall promptly (i) cause such
Subsidiary to execute and deliver to the Administrative Agent and the Collateral
Agent the Security Agreement, and such security documents, as well as
appropriate financing statements, all in form and substance reasonably
satisfactory to the Administrative Agent and the Collateral Agent (including
being sufficient to grant the Collateral Agent, on behalf of the Lenders, a
first-priority Lien in and to the assets of such newly formed or acquired
Subsidiary), and (ii) provide to the Administrative Agent and the
Collateral Agent all other documentation, including, at the Collateral Agent’s
request, one or more opinions of counsel reasonably satisfactory to the
Administrative Agent and Collateral Agent, which in the opinion of each of them
is appropriate with respect to the execution and delivery of the applicable
documentation referred to above (including the grant and perfection of any Lien
contemplated thereby).  Any document, agreement, or instrument
executed or issued pursuant to this paragraph (c) shall be a Loan
Document.

     

    (iii) The
Credit Parties agree to cause each Subsidiary of a Credit Party which, after the
Closing Date, is required to become a Guarantor in accordance with the
requirements of this 
SECTION 8.08 to, at
their own expense, execute, acknowledge and deliver, or cause the execution,
acknowledgment and delivery of, and thereafter register, file or record in any
appropriate governmental office, any document or instrument reasonably deemed by
the Collateral Agent to be necessary or desirable for the creation and
perfection of the Liens on its assets intended to be created pursuant to the
relevant Security Documents.

     

    (d) The Liens
required to be granted pursuant to this 
SECTION 8.08 shall be
granted pursuant to the respective Security Documents previously executed and
delivered by the Credit Parties (or other security documentation substantially
similar to such Security Documents or otherwise reasonably satisfactory in form
and substance to the Collateral Agent) for the benefit of the Lenders and shall
constitute valid and enforceable first-priority perfected security interests on
all of the Collateral subject thereto, prior to the rights of all third Persons
and subject to no other Liens except Permitted Encumbrances, and with such
exceptions, conditions and qualifications, as shall be permitted by the
respective Security Documents.  Any Security Documents and other
instruments related thereto or related to existing Security Documents shall be
duly recorded or filed in such manner and in such places and at such times as
are required by law to create, maintain, effect, perfect, preserve, maintain and
protect the Liens, in favor of the Collateral Agent for the benefit of the
Lenders, required to be granted pursuant to the Security Documents and all
taxes, fees and other charges payable in connection therewith shall be paid in
full by the Borrowers.  At the time of the execution and delivery of
any Security Documents, the Borrowers will, at the request of the Collateral
Agent, cause to be delivered to the Collateral Agent such customary opinions of
counsel and other related documents as may be reasonably requested by the
Collateral Agent to assure that this 
SECTION 8.08 has been
complied with.

     

    (e) Each
Credit Party agrees that each action required above by this

SECTION 8.08 shall be
completed as promptly as reasonably practicable after such action is requested
to be taken by the Administrative Agent or the Collateral Agent, provided that any
action required above by this 
SECTION 8.08 with
respect to a newly formed, created or acquired Subsidiary shall be completed as
promptly as practicable but in any event within ten (10) days following the
formation, creation or acquisition of such Subsidiary.

     

    
      
        
        

      

      
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    SECTION
8.09 Powers; Conduct of
Business.  Each Credit Party shall qualify and remain qualified
to do business in each jurisdiction in which the nature of its business requires
it to be so qualified except for those jurisdictions where failure to so qualify
does not have or could not reasonably be expected to have a Material Adverse
Effect.

     

    SECTION
8.10 Use of
Proceeds.  Proceeds of the Loans shall be used solely in
accordance with 
SECTION 2.02
hereof.

     

    SECTION
8.11 Obtaining of Permits,
Etc.  Each
Credit Party shall obtain, maintain and preserve all Permits which are necessary
or useful in the proper conduct of its business, except where the failure to
maintain and preserve such permits, licenses, authorizations, approvals,
entitlements and accreditations does not or could not reasonably be expected to
have a Material Adverse Effect.

     

    SECTION
8.12 Environmental.  Each
Credit Party shall, (a) comply, and cause its Subsidiaries to comply, in
all material respects with Environmental Laws and provide to the Collateral
Agent documentation of such compliance which Collateral Agent reasonably
requests, which documentation shall include a notice by the Administrative
Borrower six (6) months after the Closing Date of the steps taken by the Credit
Parties to address any outstanding matters described on Schedule 6.01(p),
(b) promptly provide the Collateral Agent a copy of any document provided
to a Governmental Authority concerning any Release of a Hazardous Material from
or onto property owned or operated by the Credit Parties and take any Remedial
Actions required of the Credit Parties by Environmental Laws or otherwise
appropriate to abate said Release or avoid Environmental Liabilities and Costs,
and (c) perform any Remedial Action at property owned or operated by the
Credit Parties (i) that is required of the Credit Parties pursuant to any
Environmental Law or agreement with a Governmental Authority, or (ii) that
was initiated prior to the Closing Date and is identified on Schedule 6.01(p).

     

    SECTION
8.13 Mining.  The
Credit Parties will, (a) take all commercially reasonable efforts to ensure that
all of their respective tenants, subtenants, contractors, subcontractors, and
invitees comply with all applicable Mining Laws, and obtain, comply and maintain
any and all Mining Permits, applicable to any of them, and (b) conduct and
complete all material investigations, studies, sampling and testing, and all
remedial, removal and other actions in each case required under applicable
Mining Laws and promptly comply in all respects with all lawful orders and
directives of any Governmental Authority in respect of applicable Mining
Laws.

     

    
      
        
        

      

      
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    SECTION
8.14 Maintenance of
Insurance.  Each Credit Party shall maintain (in the name of
such Credit Party), insurance with financially sound and reputable insurance
companies or associations (including, without limitation, commercial general
liability insurance, property insurance, Flood Insurance and business
interruption insurance) with respect to their Properties (including all Real
Estate Assets leased or owned by them) and business, in such amounts and
covering such risks as is required by any Governmental Authority having
jurisdiction with respect thereto or as is carried generally in accordance with
sound business practice by companies in similar businesses similarly
situated.  All such property and casualty policies shall name the
Collateral Agent as loss payee, and all policies of liability insurance shall
name the Collateral Agent an additional insured.  All certificates of
insurance are to be delivered to the Collateral Agent and the policies shall
contain a loss payable and additional insured endorsements in favor of the
Collateral Agent (substantially in the form reasonably requested by the
Collateral Agent), and shall provide for not less than forty-five  (45)
days’ prior written notice to the Collateral Agent before any such policy or
policies of insurance shall be altered or canceled and that no act or default of
the Credit Parties or any other Person shall affect the right of Collateral
Agent to recover under such policy or policies of insurance in case of loss or
damage.  Notwithstanding the requirement above, Federal Flood
Insurance shall not be required for (x) Real Estate Assets not located in a
Special Flood Hazard Area, or (y) Real Estate Assets located in a Special Flood
Hazard Area in a community that does not participate in the National Flood
Insurance Program.

     

    SECTION
8.15 Condemnation.  Immediately
upon learning of the institution of any Condemnation of any of its material
owned or leased real property, any Credit Party shall notify each of the Agents
of the pendency of such proceeding.

     

    SECTION
8.16 Fiscal
Year.  Each Credit Party shall cause its Fiscal Year to end on
December 31 of each year unless the Required Lenders consent to a change in such
Fiscal Year (and appropriate related changes to this Agreement).

     

    SECTION
8.17 Payment of Contractual
Obligations.  Each Credit Party shall pay on a timely basis any
and all premiums, cash reserves, claims or other payment obligations in respect
of any material insurance policy or any insurance covering the Collateral, and
pay on a timely basis any and all amounts due and payable, and perform all of
its obligations, under all Material Contracts.

     

    SECTION
8.18 Change in Collateral;
Collateral Records.  Each Credit Party shall advise the
Collateral Agent promptly, in sufficient detail, of any change which could
reasonably be expected to have a Material Adverse Effect relating to the value
of the Collateral or the Lien granted thereon and execute and, upon the
Collateral Agent’s reasonable request, deliver, and cause each of its
Subsidiaries to execute and deliver, to the Collateral Agent from time to time,
solely for the Collateral Agent’s convenience in maintaining a record of
Collateral, such written statements and schedules, maintained by the Borrowers
and their Subsidiaries in the ordinary course of business, as the Collateral
Agent may reasonably require, designating, identifying or describing the
Collateral.

     

    SECTION
8.19 Cash
Management.  (a)  No Credit Party shall have any
Deposit Account or Securities Account other than accounts maintained in
accordance with SECTION 9.15 hereof
and the Administrative Borrower shall cause the Lenders to have a valid,
perfected, first-priority security interest in such accounts except as otherwise
specified in SECTION
9.15.

     

    (b) No Credit
Party shall close any Deposit Account or Securities Account or any lockbox
maintained by it as of the date hereof without the prior written consent of the
Collateral Agent.

     

    
      
        
        

      

      
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    (c) Each
Credit Party shall take all reasonable steps necessary from time to time to
deposit or cause to be deposited promptly all of their Collections (including
those sent in cash or otherwise directly to a Credit Party) into an account
subject to a Control Agreement.

     

    (d) The
Collateral Agent shall have the right to give notice of cash dominion under any
Control Agreement at any time after Borrowing Base Availability is less than
fifteen million Dollars ($15,000,000) and, once given, such cash dominion shall
continue until such time as the Commitments have been terminated and all
Obligations (other than contingent indemnification Obligations to the extent no
claim giving rise thereto has been asserted) have been paid in
full.

     

    SECTION
8.20 Location of
Equipment.  Each Credit Party will keep its Equipment only at
any of the locations identified on Schedule 6.01(aa)(2)
or in transit from one such location to another; provided, however, that the
Administrative Borrower may amend Schedule 6.01(aa)
so long as such amendment occurs by written notice to the Collateral Agent not
less than thirty (30) days prior to the date on which the list of locations
has changed and such Equipment is moved to such new location in the United
States.

     

    SECTION
8.21 Post-Closing
Matters.  Each Credit Party shall satisfy each condition and
complete each item set forth on Schedule 8.21
attached hereto on or before the time specified on Schedule 8.21
with respect to such condition or item.

     

    SECTION
8.22 Inventory.  Each
Credit Party shall maintain its Inventory only (a) at locations that are
(i) owned or leased by the Credit Parties, or (ii) subject to a
Collateral Access Agreement or will be within sixty (60) days from the Closing
Date, or (b) in transit from one such location to another.

     

    SECTION
8.23 Pledged Security
Interests.  The Credit Parties shall deliver, within three (3)
Business Days following the Closing Date, all of the certificated pledged
Securities then owned by the Borrowers, together with (i) executed and
undated transfer powers in the case of certificated pledged Securities, and
(ii) all other items required to be delivered pursuant to the Security
Agreement.

     

    ARTICLE
IX

    NEGATIVE
COVENANTS

     

    Each
Credit Party covenants and agrees that, so long as any Lender shall have any
Commitment hereunder, or any Loan or other Obligation (other than contingent
indemnification Obligations to the extent no claim giving rise thereto has been
asserted) shall remain unpaid or unsatisfied:

     

    SECTION
9.01 Liens.  It
shall not create, incur, assume or suffer to exist any Lien upon or with
respect to any of its property or assets, whether now owned or hereafter
acquired, or assign or otherwise transfer any account receivable or other right
to receive income, other than Permitted Encumbrances.

     

    
      
        
        

      

      
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    SECTION
9.02 Indebtedness; Voluntary
Prepayments.  It shall not create, incur, assume, guarantee or
suffer to exist, or otherwise become or remain liable with respect to any
Indebtedness, other than Permitted Indebtedness.  The Credit Parties
shall not (a) voluntarily prepay the principal of the Term Loan Obligations
unless such prepayment is made in connection with the replacement or
substitution of any Rolling Letter of Credit with a Letter of Credit Issued
hereunder, (b) voluntarily prepay the principal of the Senior Notes (except
pursuant to a Permitted Refinancing), or (c) voluntarily prepay, repurchase,
redeem, defease, or effect any settlement, in each case, in whole or in part, of
the principal of, or make any payment in respect of any conversion of, the
Convertible Note Debt, in each case, in cash (other than the payment of cash in
lieu of the issuance of any fractional shares upon the conversion of any Senior
Convertible Note to the holder of such Senior Convertible Note, provided, that the
aggregate amount of all such payments of cash in lieu of the issuance of any
fractional shares shall not exceed $2,000,000 during the term of this
Agreement), unless, in each case, immediately prior to the making of any such
payment, the Administrative Agent shall have received a certificate of a Senior
Officer of the Borrowers, in form and substance satisfactory to the
Administrative Agent, certifying and attaching calculations and projections
demonstrating that, on a pro forma basis after giving effect to such payment,
the Credit Parties shall have Availability (calculated based on trade payables
being paid currently in accordance with usual and customary standards for the
coal mining industry, expenses and liabilities being paid in the ordinary course
of business and without any deterioration of working capital and acceleration of
sales) in excess of twenty million Dollars ($20,000,000) for the period of
ninety (90) consecutive days after the making of such payment.

     

    SECTION
9.03 Consolidation, Merger,
Subsidiaries, Etc.  It shall
not (a) liquidate or dissolve, consolidate with, or merge into or with, any
other corporation, provided that this clause (a) shall
not prevent (i) a merger or consolidation involving only a Borrower and one
or more of its Subsidiaries pursuant to which a Borrower is the surviving party,
(ii) a merger or consolidation involving only one or more Wholly-Owned
Domestic Subsidiaries of a Borrower pursuant to which the surviving Person is a
Wholly-Owned Domestic Subsidiary of a Borrower that is a Credit Party,
(iii) a merger or consolidation that has the effect of a disposition of
assets permitted by 
SECTION 9.04 or an
Investment permitted by 
SECTION 9.07, or
(iv) purchase or otherwise acquire all or substantially all of the capital
stock or assets of any Person (or of any division or business unit
thereof).

     

    SECTION
9.04 Asset Dispositions,
Etc.  It shall
not sell, transfer, lease or otherwise dispose of, or grant options, warrants or
other rights with respect to, any of its assets (including any capital stock or
Indebtedness of any Person), (each an “Asset Disposition”)
except:

     

    (a) sales,
transfers, leases or other dispositions of (i) Inventory or rights to Inventory,
(ii) surplus equipment and (iii) Permitted Investments, in each case in the
ordinary course of business;

     

    (b) sales,
transfers, leases or other dispositions of assets to a Credit
Party;

     

    (c) the
discount or sale, in each case without recourse and in the ordinary course of
business, of receivables more than ninety (90) days overdue and arising in the
ordinary course of business, but only in connection with the compromise or
collection thereof consistent with customary industry practice (and not as part
of any bulk sale or financing of receivables);

     

    
      
        
        

      

      
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    (d) sales or
other dispositions in the ordinary course of business of equipment and other
tangible assets that have become obsolete, uneconomic, worn-out or no longer
useful in the business of a Credit Party or its Subsidiaries;

     

    (e) Restricted
Payments permitted by the terms of this Agreement;

     

    (f) dispositions
of cash and Cash Equivalents in the ordinary course of business;

     

    (g) nonexclusive
licenses of Intellectual Property of a Credit Party or its Subsidiaries entered
into in the ordinary course of business;

     

    (h) in
connection with a transaction permitted under 
SECTION 9.03 or 
SECTION
9.07;

     

    (i) dispositions
with an aggregate fair market value not exceeding twenty million Dollars
($20,000,000) in the aggregate after the Closing Date; provided, that with
respect to sales, conveyances, transfers, leases, subleases, licenses,
assignments and other dispositions of Equipment and Real Estate Assets, which
are not replaced within one hundred eighty (180) days, if the Administrative
Borrower notifies the Administrative Agent in writing within such 180 day period
that it or the applicable Subsidiary intends to replace such Equipment or Real
Estate Asset, then such Borrower or such applicable Subsidiary shall, so long as
no Event of Default shall have occurred and be continuing, be permitted to do so
as specified within three hundred and sixty five (365) days of the
Disposition of such Equipment or Real Estate Asset; and

     

    (j) any
Credit Party shall have the right (i) to terminate or allow to expire or to not
renew any Lease in the ordinary and normal course of its business that is no
longer needed for the ongoing operations of such Credit Party; or (ii) to enter
into subleases, easements, licenses and other similar agreements relating to
portions of its Property with third parties in the ordinary course of business
of such Credit Party, to the extent that any such sublease, easement, license or
other like agreement or does not otherwise relate to a material portion of the
Property; and in all cases under clauses (i) and (ii), provided that such action
or event could not reasonably be expected to result in a Material Adverse
Effect.

     

    SECTION
9.05 Limitation on Issuance of
Equity Interests.  It shall not issue or sell or enter into any
agreement or arrangement for the issuance and sale of any shares of its capital
stock or of any other Equity Interests, any Securities convertible into or
exchangeable for its capital stock or other Equity Interests or any warrants,
options or other rights for the purchase or acquisition of any of its capital
stock or Equity Interests, other than (a) as set forth on Schedule 6.01(e),
(b)  the issuance of capital stock to a Borrower or Wholly-Owned
Subsidiaries of such Borrower, (c) the issuance of capital stock of directors’
qualifying shares, (d) issuances to employees pursuant to existing employee
stock option plan as set forth on Schedule 6.01(e),
(e) issuances of Equity Interests (other than Disqualified Equity Interests)
consisting solely of common stock of JRCC, to the holders of the Senior Notes in
exchange for, or as a redemption or repayment of, any or all such Senior Notes,
or (f) the issuance of (i) Securities consisting of Senior Convertible Notes
pursuant to and in accordance with the Convertible Note Debt Documents and (ii)
Equity Interests (other than any Disqualified Equity Interest) of JRCC to the
Holder of any Senior Convertible Notes in connection with the conversion thereof
in accordance with the terms of the Convertible Note Debt
Documents.

     

    
      
        
        

      

      
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    SECTION
9.06 Limitations on Dividends and
Distributions and Other Payment Restrictions Affecting
Subsidiaries.  It shall not create or otherwise cause, incur,
assume, suffer or permit to exist or become effective any consensual encumbrance
or restriction of any kind on its ability to, (a) pay dividends or to make
any other distribution on any shares of its Equity Interests,
(b) subordinate or to pay, prepay, redeem or repurchase any Indebtedness
owed to any Credit Party, (c) make loans or advances to any Credit Party, or (d)
transfer any of its property or assets to any Credit Party; provided, however, that nothing
in clauses (a)
through (d) of
this 
SECTION 9.06 shall
prohibit or restrict:  (i) any restriction under this Agreement or the
other Loan Documents or the Term Credit Agreement; (ii) any Applicable Law,
rule or regulation (including applicable currency control laws and applicable
state or provincial corporate statutes restricting the payment of dividends or
any other distributions in certain circumstances); (iii) any restriction set
forth in any document or agreement governing or securing any Existing Debt; (iv)
in the case of clause
(d) any restrictions on the subletting, assignment or transfer of any
property or asset included in a lease, license, sale conveyance or similar
agreement with respect to such property or asset; (v) in the case of clause (d) any holder
of a Permitted Encumbrance from restricting on customary terms the transfer of
any property or assets subject to such Permitted Encumbrance; (vi) customary
provisions restricting assignment of any licensing agreement or other contract
entered into by the Credit Parties in the ordinary course of business; (vii)
restrictions on the transfer of any asset pending the close of the sale of such
asset; or (viii) customary provisions requiring payment on a pro rata basis of
dividends or other distributions by any non-Wholly-Owned Subsidiary that is not
a Credit Party set forth in the organizational documents for such Subsidiary so
long as such provisions were not entered into in connection with any other
agreement or arrangement not otherwise permitted under this

SECTION
9.06.

     

    SECTION
9.07 Investments.  It
shall not directly or indirectly, hold, own or invest in or commit or agree to
hold or invest in, or purchase or otherwise acquire or commit or agree to
purchase or otherwise acquire any Investment, except for Permitted Investments
and Permitted Acquisitions.

     

    SECTION
9.08 Sale and
Leaseback.  It shall not directly or indirectly, become or
remain liable as lessee or as a guarantor or other surety with respect to any
lease, whether an Operating Lease or a Capitalized Lease, of any property
(whether real, personal or mixed), whether now owned or hereafter acquired,
(i) that a Credit Party has sold or transferred or is to sell or transfer
to any other Person, or (ii) that a Credit Party intends to use for
substantially the same purpose as any other property that has been or is to be
sold or transferred by such Credit Party or any other Credit Party to any Person
in connection with such lease (a “Sale and Leaseback”)
in excess of $10,000,000 individually and in the aggregate for all such Sale and
Leaseback transactions consummated after the Closing Date.

     

    
      
        
        

      

      
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    SECTION
9.09 Negative
Pledges.  It shall not enter into any agreement prohibiting the
creation or assumption of any Lien upon any of its properties or assets, whether
now owned or hereafter acquired, except  (a) pursuant to this Agreement and
the Security Documents, (b) pursuant to any document or instrument governing
Existing Debt (including the Indenture and Term Credit Agreement) or governing
Capitalized Leases or purchase money debt incurred pursuant to 
SECTION 9.02 or any
such restriction contained therein relates only to the asset or assets acquired
in connection therewith or in connection with any Lien permitted by 
SECTION 9.01 or any
Disposition permitted by 
SECTION 9.04, (c) prohibitions or
conditions under Applicable Law, rule or regulation, (d) any agreement or
instrument to which any Person is a party existing on the date such Person first
becomes a Subsidiary of a Credit Party or the date such agreement or instrument
is otherwise assumed by a Credit Party (so long as such agreement or instrument
was not entered into solely in contemplation of such Person becoming a
Subsidiary of a Credit Party or such assumption and such prohibitions or
conditions do not affect any other Subsidiary of the Credit Party (other than
Subsidiaries of such Person having primary obligation for repayment of such
Indebtedness)), (e) customary provisions restricting subletting or
assignment of any lease governing any leasehold interest of a Credit Party, and
(f)  customary provisions restricting assignment of any licensing agreement
or other contract entered into by a Credit Party in the ordinary course of
business; or restrictions on the transfer of any asset pending the close of the
sale of such asset.

     

    SECTION
9.10 Change in Nature of
Business.  Except as expressly permitted hereunder, it shall
not make any material change in the nature of its business as such business is
carried on as of the Closing Date or any business substantially related or
incidental thereto.  It shall not modify or change its fiscal year or
materially modify or change its method of accounting (other than as may be
required to conform to GAAP or, with respect to Subsidiaries, to conform to the
Administrative Borrower’s Fiscal Year) or enter into, modify, or terminate any
agreement currently existing or at any time hereafter entered into with any
third-party accounting firm or service bureau for the preparation or storage of
the Credit Parties’ accounting records in a manner that would result in said
accounting firm or service bureau declining to provide the Agents with
information regarding the Credit Parties’ financial condition.

     

    SECTION
9.11 Change
Name.  It shall not change a Credit Party’s name,
organizational identification number, state of organization, or organizational
identity; provided, however, that a
Credit Party or a Subsidiary of a Credit Party may change its name or state of
organization upon at least thirty (30) days’ prior written notice by the
Administrative Borrower to the Administrative Agent and the Collateral Agent of
such change and so long as, at the time of such written notification, such
Credit Party or such Subsidiary provides any financing statements, fixture
filings or other documents necessary to perfect and continue perfected
Liens.

     

    SECTION
9.12 Modifications of
Indebtedness, Organizational Documents and Certain Other
Agreements.  It shall not amend, modify or otherwise change,
(a) its certificate of incorporation or bylaws (or other similar
organizational documents), including by the filing or modification of any
certificate of designation, or any agreement or arrangement entered into by it,
with respect to any of its capital stock (including any shareholders’ agreement)
except any such amendments, modifications or changes pursuant to this clause
that either individually or in the aggregate would not be materially adverse to
the interests of the Lenders, (b) its accounting policies or reporting
practices, (c) the Indenture, (d) the Term Credit Agreement or any of
the “Cash Collateral Agreement” or the “Loan Documents” (each as defined in the
Term Credit Agreement) as in effect on the Closing Date, or (e) the Convertible
Note Debt Documents (including, without limitation, the Senior Convertible
Notes), except any such amendments, modifications or changes pursuant to this
clause (e) that either individually or in the aggregate would not be materially
less favorable to the interests of the Administrative Agent, the Collateral
Agent, any Lender, any L/C Issuer or any Credit Party.

     

    
      
        
        

      

      
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    SECTION
9.13 Federal Reserve
Regulations.  It shall not use any Loan or the proceeds of any
Loan for any purpose that would cause such Loan to be a margin loan under the
provisions of Regulation T, U or X.

     

    SECTION
9.14 Investment Company Act of
1940.  It shall not engage in any business, enter into any
transaction or take any other action that would cause it or any of its
Subsidiaries to become subject to the registration requirements of the
Investment Company Act of 1940, as amended, by virtue of being an “investment
company” or a company “controlled” by an “investment company” not entitled to an
exemption within the meaning of such Act.

     

    SECTION
9.15 Securities Accounts; Deposit
Accounts.  Subject to the Security Agreement and except as
permitted by SECTION 5.01(v), it shall not
establish or maintain any Securities Account, Deposit Account or similar account
unless the Collateral Agent shall have received a Control Agreement in respect
of such Securities Account, Deposit Account or similar account; provided that, this
requirement shall not apply to (A) any Deposit Account with an average daily
balance of less than $100,000, so long as the aggregate
daily balances in all such accounts do not exceed $1,000,000, (B) any payroll,
withholding tax or other fiduciary account, (C) any account for payment of
workers compensation and employment claims, or (D) with respect to any Deposit
Account, Securities Account or other account in which cash collateral for the
Rolling Letters of Credit is maintained, provided, that the
aggregate amount of cash or Cash Equivalents maintained in all such accounts at
any time does not exceed 105% of the aggregate amount available to be drawn
under all such Rolling Letters of Credit then outstanding.  Each
Credit Party shall comply in all material respects with the provisions of each
Control Agreement to which it is a party.

     

    SECTION
9.16 Impairment of Security
Interests.  Except as otherwise permitted pursuant to any of
the Loan Documents, it shall not directly or indirectly, take any action or do
anything that would have the effect of terminating, limiting in or impairing the
perfection or priority of any Lien securing the Obligations except as expressly
permitted under any Loan Document.

     

    SECTION
9.17 Restricted
Payments.  It shall not make any Restricted Payment, except
(a) intercompany loans and advances between Credit Parties to the extent
permitted by 
SECTION 9.07,
(b) dividends and distributions by a Credit Party to the Credit Party that
holds of the Stock of such Credit Party, (c) employee loans permitted under

SECTION 9.02, and
(d) payments of principal and interest of intercompany notes issued in
accordance with 
SECTION
9.02.

     

    SECTION
9.18 OFAC; Patriot
Act.  No Credit Party shall, and no Credit Party shall permit
any of its Subsidiaries to fail to comply with the laws, regulations and
executive orders referred to in SECTION
6.01(dd).

     

    
      
        
        

      

      
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    ARTICLE
X

    FINANCIAL
COVENANTS

     

    Each
Credit Party covenants and agrees that, so long as any Lender shall have any
Commitment hereunder, or any Loan or other Obligation (other than contingent
indemnification Obligations to the extent no claim giving rise thereto has been
asserted) shall remain unpaid or unsatisfied:

     

    SECTION
10.01 Minimum Consolidated
EBITDA.  Upon the commencement and during the continuation of a
Trigger Event Period, the Credit Parties shall not permit Consolidated EBITDA
for (a) the Measurement Period ending immediately prior to the occurrence of
such Trigger Event Period for which the Credit Parties have delivered financial
statements pursuant to subsections (a) and
(b) of 
SECTION 7.01, (b) any
Measurement Period ending immediately prior the commencement of such Trigger
Event Period but after the Measurement Period described in clause (a) (if any)
and (c) each Measurement Period ending during the continuation of such Trigger
Event Period, in each case, to be less than the amount set forth opposite below
such Measurement Period:

     

    
      	
              Measurement
      Period

            	
              Consolidated
      EBITDA

            
	
              Four
      Fiscal Quarters Ending December 31, 2009

            	
              $78.9
      million

            
	
              Four
      Fiscal Quarters Ending March 31, 2010

            	
              $94.0
      million

            
	
              Four
      Fiscal Quarters Ending June 30, 2010

            	
              $94.0
      million

            
	
              Four
      Fiscal Quarters Ending September 30, 2010

            	
              $98.0
      million

            
	
              Four
      Fiscal Quarters Ending December 31, 2010 and each period of Four
      Fiscal Quarters Ending thereafter

            	
              $105.0
      million

            

    

    

    SECTION
10.02 Leverage
Ratio.  Upon the commencement and during the continuation of a
Trigger Event Period, the Credit Parties shall not permit the Leverage Ratio for
(a) the Measurement Period ending immediately prior to the occurrence of such
Trigger Event Period for which the Credit Parties have delivered financial
statements pursuant to subsections (a) and
(b) of 
SECTION 7.01, (b) any
Measurement Period ending immediately prior the commencement of such Trigger
Event Period but after the Measurement Period described in clause (a) (if any)
and (c) each Measurement Period ending during the continuation of such Trigger
Event Period, in each case, to be greater than the amount set forth below
opposite such Measurement Period:

     

    
      
        
        

      

      
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              Measurement
      Period

            	
              Leverage
      Ratio

            
	
              Four
      Fiscal Quarters Ending December 31, 2009

            	
              1.5x

            
	
              Four
      Fiscal Quarters Ending March 31, 2010

            	
              0.68x

            
	
              Four
      Fiscal Quarters Ending June 30, 2010

            	
              0.68x

            
	
              Four
      Fiscal Quarters Ending September 30, 2010

            	
              0.66x

            
	
              Four
      Fiscal Quarters Ending December 31, 2010

            	
              0.62x

            
	
              Four
      Fiscal Quarters Ending March 31, 2011

            	
              0.63x

            
	
              Four
      Fiscal Quarters Ending June 30, 2011

            	
              0.62x

            
	
              Four
      Fiscal Quarters Ending September 30, 2011

            	
              0.60x

            
	
              Four
      Fiscal Quarters Ending December 31, 2011 and each period of Four
      Fiscal Quarters Ending thereafter

            	
              0.61x

            

    

    

    SECTION
10.03 Capital
Expenditures.  The Credit Parties shall not make or agree to
make any Capital Expenditure (other than Mandated Capital Expenditures) for the
most recently ended Fiscal Year that would cause the aggregate amount of all
such Capital Expenditures made by the Credit Parties to exceed the amount set
forth opposite such Fiscal Year:

     

    
      	
              Fiscal Year
      Ending

            	
              Capital Expenditures
      (other than Mandated Capital Expenditures)

            
	
              December
      31, 2009

            	
              $66.0
      million

            
	
              December
      31, 2010

            	
              $75.0
      million

            
	
              December
      31, 2011 and each Fiscal Year thereafter

            	
              $70.0
      million

            

    

     

    provided, however, to the
extent that actual Capital Expenditures (exclusive of Mandated Capital
Expenditures) for any Fiscal Year are less than the maximum amount set forth
above for such Fiscal Year, such unused amount may be carried forward and used
only in the next Fiscal Year (where it shall be deemed to be spent
last).

     

    ARTICLE
XI

    EVENTS OF
DEFAULT, RIGHTS AND REMEDIES

     

    SECTION
11.01 Events of
Default.  Each of the following occurrences shall constitute an
event of default (an “Event of Default”)
under this Agreement.

     

    
      
        
        

      

      
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    (a) Failure to Make Payments
When Due.  The Borrowers shall fail to pay (i) any
principal or interest when due, or (ii) any fees, Lender Expenses or any
other monetary Obligation, and such failure shall continue for a period of three
(3) Business Days after such amount was due (in each case, whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise).

     

    (b) Breach of Certain
Covenants. Any Credit Party shall fail to perform or comply with any
covenant or agreement contained in SECTION 7.03, SECTION 8.03, SECTION 8.04, SECTION 8.08(c),
SECTION 8.10,
SECTION 8.11,
SECTION 8.21,
ARTICLE IX, or
ARTICLE X under
this Agreement.

     

    (c) Breach of Representation or
Warranty. Any representation, warranty or statement made or deemed made
by or on behalf of any Credit Party or by any officer of the foregoing under any
Loan Document or in any report, certificate, or other document delivered to any
Agent or any Lender pursuant to any Loan Document prove to be incorrect or
misleading in any material respect when made or deemed made.

     

    (d) Five (5) Day Cure
Period.  Any Credit Party shall fail to perform or comply with
any covenant or agreement contained in ARTICLE VII, except
for 
SECTION 7.03, and
such default shall continue for five (5) Business Days or more.

     

    (e) Other Defaults (Thirty (30)
- Day Cure).  Any Credit Party shall fail to perform or comply
with any other covenant or agreement not specified in clauses (a), (b), (c) or
(d) above and such failure continues for a period of thirty (30) days after
learning of such failure or receiving written notice thereof from any Agent or
any Lender, provided that if such cure is
not completed within such thirty (30)-day period, so long as such Credit Party
has a commitment to cure and diligently pursues to complete such cure, such
period shall be extended an additional thirty (30) days thereafter.

     

    (f) Default as to Other
Indebtedness.  Any Credit Party or any Subsidiary of a Credit
Party shall fail to make any payment when due (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise) with respect to any
Indebtedness if the aggregate amount of such Indebtedness is in excess of
$5,000,000 in the aggregate and such failure shall continue after the applicable
grace period, if any, specified in the agreement or instrument relating to such
Indebtedness; or any other breach, default or event of default shall occur, or
any other condition shall exist under any instrument, agreement or indenture
pertaining to any such Indebtedness, if the effect thereof (with or without the
giving of notice or lapse of time or both) is to permit or require an
acceleration, mandatory redemption or other required repurchase of such
Indebtedness or, as to such Indebtedness, permit the holder or holders of such
Indebtedness to accelerate the maturity of any such Indebtedness or require a
redemption or other repurchase of such Indebtedness; or any Indebtedness if the
aggregate amount of such Indebtedness is in excess of $5,000,000 shall be
declared due and payable (by acceleration or otherwise) by a Person (other than
a Credit Party or any Subsidiary of a Credit Party) as a result of a breach,
Default or Event of Default by a Credit Party or any Subsidiary of a Credit
Party, or required to be prepaid, redeemed or otherwise repurchased by any
Credit Party or any Subsidiary of a Credit Party (other than by a regularly
scheduled required prepayment) prior to the stated maturity thereof; or the
holder or holders of any Lien, securing obligations of $5,000,000 or more, shall
commence foreclosure of such Lien upon property of any Credit Party or any
Subsidiary of a Credit Party.

     

    
      
        
        

      

      
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    (g) Voluntary Bankruptcy
Proceeding.  Any Credit Party (i) shall institute any
proceeding or voluntary case seeking to adjudicate it as bankrupt or insolvent,
or seeking dissolution, liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or its debts under any law
relating to bankruptcy, insolvency, reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver,
trustee, receiver and manager, interim receiver, sequestrator, administrator,
monitor, custodian or other similar official for any such Credit Party or any
Subsidiaries or for any substantial part of its property, (ii) shall
consent to the entry of an order for relief in an involuntary bankruptcy case or
to the conversion of an involuntary case to a voluntary case under bankruptcy,
insolvency or reorganization law, (iii) shall be generally not paying its
debts as such debts become due or shall admit in writing its inability to pay
its debts generally, (iv) shall make a general assignment for the benefit
of creditors, or (v) shall take any action to authorize or effect any of
the actions set forth above in this 
SECTION
11.01(g).

     

    (h) Involuntary Bankruptcy
Proceeding.

     

    (i) An
involuntary case shall be commenced against any Credit Party or any Subsidiary
of a Credit Party and the petition shall not be dismissed, stayed, bonded or
discharged within sixty (60) days; or a court having jurisdiction in the
premises shall enter a decree or order for relief in respect of such Credit
Party or Subsidiary of a Credit Party in an involuntary case, under any
applicable bankruptcy, insolvency or other similar law now or hereinafter in
effect; or any other similar relief shall be granted under any applicable
federal, state, provincial, local or foreign law; or the board of directors of
such Credit Party or Subsidiary of a Credit Party (or any committee thereof)
adopts any resolution or otherwise authorizes any action to approve any of the
foregoing.

     

    (ii) A decree
or order of a court having jurisdiction in the premises for the appointment of a
receiver, liquidator, sequestrator, trustee, receiver and manager,
administrator, monitor, custodian or other officer having similar powers over
any Credit Party or any Subsidiary of a Credit Party or over all or a
substantial part of their respective assets shall be entered; or an interim
receiver, trustee or other custodian of any Credit Party or any Subsidiary of a
Credit Party or of all or a substantial part of their respective assets shall be
appointed or a warrant of attachment, execution or similar process against any
substantial part of their respective assets shall be issued and any such event
shall not be stayed, dismissed, bonded or discharged; or the board of directors
of any Credit Party or any Subsidiary of a Credit Party (or any committee
thereof) adopts any resolution or otherwise authorizes any action to approve any
of the foregoing.

     

    (i) Invalidity of
Documents.  A court of competent jurisdiction shall declare
that any material provision of any Loan Document shall at any time for any
reason (other than pursuant to the express terms thereof) cease to be valid and
binding on or enforceable against a Credit Party intended to be a party thereto;
or the validity or enforceability thereof shall be contested by any Credit Party
that is a party thereto; or a proceeding shall be commenced by a Credit Party or
any Governmental Authority having jurisdiction over any of them, seeking to
establish the invalidity or unenforceability thereof; or a Credit Party shall
deny in writing that it has any liability or obligation purported to be created
under any Loan Document.

     

    
      
        
        

      

      
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    (j) Loan Documents;
Impairment.  At any time, for any reason, (i) any Loan
Document shall for any reason (other than pursuant to the express terms hereof
or thereof) fail or cease to create a valid and perfected Lien on any Collateral
or the Liens intended to be created or perfected thereby are, or any Credit
Party seeks to render such Liens, invalid or unperfected with respect to any
Collateral except as otherwise contemplated hereby or thereby, or
(ii) Liens with respect to any Collateral in favor of the Collateral Agent
contemplated by the Loan Documents shall be invalidated or otherwise cease to be
in full force and effect, or such Liens shall be subordinated or shall not have
the priority contemplated hereby or by the other Loan Documents (subject to
Permitted Encumbrances and to the exceptions set forth in the applicable
Security Documents).

     

    (k) Judgments.  One
or more judgments or judicial or administrative orders for the payment of money
exceeding five million Dollars ($5,000,000) in the aggregate shall be rendered
against a Credit Party or any Subsidiary of a Credit Party and remain
unsatisfied, undischarged, unvacated or unbonded for thirty (30) or more days;
provided, however, that any
such judgment or order shall not give rise to an Event of Default under this 
SECTION 11.01(k) if
and to the extent that (i) the amount of such judgment or order is covered
by a valid and binding policy of insurance between the defendant and the insurer
covering full payment thereof, and (ii) such insurer has been notified, and
has not disputed the claim made for payment, of the amount of such judgment or
order.

     

    (l) Change of
Control.  A Change of Control shall have occurred.

     

    (m) ERISA.  With
respect to any Plan or Benefit Plan, as applicable, (i) a prohibited
transaction within the meaning of Section 4975 of the Code or
Section 406 of ERISA occurs which could reasonably be expected to result in
material liability to any Credit Party, (ii) any accumulated funding
deficiency (within the meaning of Section 412 of the Code and
Section 302 of ERISA), whether or not waived, shall exist with respect to
any Benefit Plan, or (iii) the occurrence of any ERISA Event; provided, however, that the
events listed in clauses (i) through
(iii) shall constitute Events of Default only if the liability or deficiency of
any Credit Party or ERISA Affiliate, would reasonably be expected to exceed two
million five hundred thousand Dollars ($2,500,000) in any Fiscal Year and five
million Dollars ($5,000,000) in the aggregate for all such events.

     

    (n) Failure of Guaranty.
Any Guaranty under the ARTICLE XII for any
reason shall cease to be in full force and effect (other than in accordance with
its terms), or any Guarantor shall deny in writing that it has any further
liability under its Guaranty (other than as a result of the discharge of such
Guarantor in accordance with the terms of the Loan Documents).

     

    (o) Lack of Security
Interest. Any Lien created under any Loan Document shall cease to be, or
shall be asserted by any Credit Party not to be, a valid, perfected and, with
respect to the Credit Parties, first priority (except as otherwise expressly
provided in this Agreement or the Intercreditor Agreement) Lien on any material
Collateral covered thereby, except to the extent that any such loss of
perfection or priority results from any action by Collateral Agent.

     

    
      
        
        

      

      
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    (p) Mandatory Repurchase of
Senior Convertible Notes.  Any event shall occur or other
condition shall exist under any Convertible Note Debt Document or otherwise, if
the effect thereof (with or without the giving of notice or lapse of time or
both) is to permit or require an acceleration, mandatory prepayment, redemption,
defeasance or other required repurchase or other payment of principal on account
of or in respect of all or any portion of the Convertible Note Debt, in each
case, in cash (other than the payment of cash in
lieu of the issuance of any fractional shares upon the conversion of any Senior
Convertible Note to the holder of such Senior Convertible Note, provided, that the
aggregate amount of all such payments of cash in lieu of the issuance of any
fractional shares shall not exceed $2,000,000 during the term of this Agreement)
or permit any holder of the Convertible Note Debt to accelerate the maturity of
the Convertible Note Debt or require the prepayment, redemption, defeasance or
other repurchase of all or any portion of the Convertible Note Debt, in each
case, in cash (other than the payment of cash in
lieu of the issuance of any fractional shares upon the conversion of any Senior
Convertible Note to the holder of such Senior Convertible Note, provided, that the
aggregate amount of all such payments of cash in lieu of the issuance of any
fractional shares shall not exceed $2,000,000 during the term of this
Agreement).

     

    (q) Failure to Terminate Term
Credit Agreement Obligations.  The Term Credit Agreement, any
commitment of any lender or agent thereunder, any Term Loan Obligation (other
than contingent indemnity obligations not yet due and payable), or “Term Letter
of Credit Obligation” (as defined in the Term Credit Agreement (other than
contingent indemnity obligations not yet due and payable)), any Rolling Letter
of Credit, any Lien securing any obligation in respect of any of the foregoing
shall remain in effect or remain outstanding, as applicable, at any time after
August 22, 2010.

     

    SECTION
11.02 Remedies.  If
any Event of Default specified in 
SECTION 11.01 shall
have occurred and be continuing, the Administrative Agent and the Collateral
Agent (at the direction of the Administrative Agent) may, and upon the written
request of Required Lenders shall, by written notice to the Administrative
Borrower, take any or all of the following actions, without prejudice to the
rights of any other Agent, any Lender or any L/C Issuer to enforce its claims
against any Credit Party:  (i) terminate or reduce the
Commitments, whereupon the Commitments shall immediately be terminated or
reduced, (ii) declare all or a portion of the Loans then outstanding to be
due and payable, whereupon all or such portion of the aggregate principal of
such Loans, all accrued and unpaid interest thereon, all fees and all other
amounts payable under this Agreement and all other Obligations shall become
immediately due and payable, without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by the Borrower,
and (iii) exercise any and all of its other rights and remedies hereunder,
under the other Loan Documents, under Applicable Law and otherwise; provided, however, that upon
the occurrence of any Event of Default described in SECTION 11.01(e)
or SECTION
11.01(f), the Commitments and shall automatically terminate and the Loans
then outstanding, together with all accrued and unpaid interest thereon, all
fees, all other amounts due under this Agreement or any other Loan Document and
all other Obligations shall become immediately due and payable automatically,
without presentment, demand, protest or notice of any kind, all of which are
expressly waived by the Credit Parties, and provided further that the
Collateral Agent shall pay and apply the proceeds of any sale or other
disposition of the Collateral, or any part thereof, resulting from the exercise
of the remedies as provided for in this 
SECTION 11.02 in
accordance with 
SECTION
2.09.

     

    
      
        
        

      

      
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    SECTION
11.03 Waivers by the Credit
Parties.  Except as otherwise provided for in this Agreement
and Applicable Law, the Credit Parties waive (i) presentment, demand,
protest, notice of presentment or dishonor, notice of intent to accelerate and
notice of acceleration, (ii) all rights to notice and a hearing prior to
the Lenders taking possession or control of, or to the Lenders’ replevin,
attachment or levy upon, any collateral securing the Obligations or any bond or
security which might be required by any court prior to allowing such Lenders to
exercise any of their remedies, (iii) the benefit of all valuation,
appraisal and exemption laws, and (iv) all rights of set-off against any
Lender as it applies to the payment of the Obligations.  The Credit
Parties acknowledge that they have been advised by counsel of their choice with
respect to this Agreement, the other Loan Documents and the transactions
evidenced by this Agreement and the other Loan Documents.

     

    ARTICLE
XII

    GUARANTY
OF OBLIGATIONS OF BORROWER

     

    SECTION
12.01 Guaranty.  In
order to induce the Agents and the Lenders to enter into this Agreement and to
make available the Loans hereunder, and in recognition of the direct benefits to
be received by each Guarantor from the proceeds of the Loans, each Guarantor
hereby agrees with the Administrative Agent and the Collateral Agent, for the
benefit of the Agents, the Lenders and the L/C Issuers, as
follows:  each Guarantor hereby jointly, severally, unconditionally
and irrevocably guarantees, as primary obligor and not merely as surety, the
full and prompt payment when due, whether upon maturity, acceleration or
otherwise, and the performance, of any and all of the Obligations of all other
Credit Parties (such Obligations, collectively, the “Guaranteed
Obligations”).  If any or all of the Obligations becomes due
and payable hereunder, each Guarantor irrevocably and unconditionally promises
to pay the Guaranteed Obligations to the Collateral Agent, for the benefit of
the Agents, the Lenders and the L/C Issuers.

     

    SECTION
12.02 Nature of
Liability.  The Guarantors agree that this Guaranty is a
guaranty of payment and performance and not of collection, and that their
obligations under this Guaranty shall be primary, absolute and unconditional,
irrespective of, and the liability of each Guarantor shall not be affected by,
nor shall this Guaranty be discharged or reduced by reason of:

     

    (a) the
genuineness, validity, regularity, enforceability or any future amendment of, or
change in this Guaranty, any other Loan Document or any other agreement,
document or instrument to which any Credit Party and/or Guarantors are or may
become a party;

     

    (b) the
absence of any action to enforce this Guaranty or any other Loan Document or the
waiver or consent by the Administrative Agent, the Collateral Agent, the L/C
Issuers and/or Lenders with respect to any of the provisions
thereof;

     

    
      
        
        

      

      
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    (c) any other
continuing or other guaranty, undertaking or maximum liability of a Guarantor or
of any other party as to the Guaranteed Obligations, or any payment on or in
reduction of any such other guaranty or undertaking;

     

    (d) the
incapacity or any change in the name, style or constitution of any Credit Party
or any other person liable;

     

    (e) any
dissolution, termination, increase, decrease or change in personnel by any
Borrower or any Credit Party;

     

    (f) the
Collateral Agent granting any time, indulgence or concession to, or compounding
with, discharging, releasing or varying the liability of, any Credit Party or
any other person liable or renewing, determining, varying or increasing any
accommodation, facility or transaction or otherwise dealing with the same in any
manner whatsoever or concurring in, accepting or varying any compromise,
arrangement or settlement or omitting to claim or enforce payment from any
Credit Party or any other person liable;

     

    (g) the
existence, value or condition of, or failure to perfect its Lien against, any
Collateral for the Guaranteed Obligations or any action, or the absence of any
action, by the Administrative Agent, the Collateral Agent or any Lender in
respect thereof (including, without limitation, the release of any such
Collateral);

     

    (h) the
insolvency of any Credit Party, or any payment made to any Agent, any Lender or
any L/C Issuer on the Guaranteed Obligations which any such Agent, Lender or L/C
Issuer repays to the Borrowers pursuant to a court order in any bankruptcy,
reorganization, arrangement, moratorium or other debtor relief proceeding, and
each Guarantor waives any right to the deferral or modification of its
obligations hereunder by reason of any such proceeding;

     

    (i) any act
or omission which would not have discharged or affected the liability of a
Guarantor had it been a principal debtor instead of a Guarantor or by anything
done or omitted which but for this provision might operate to exonerate or
discharge a Guarantor; or

     

    (j) any other
action or circumstances which might otherwise constitute a legal or equitable
discharge or defense of a surety or Guarantor.

     

    SECTION
12.03 Independent
Obligation.

     

    (a) The
obligations of each Guarantor hereunder are independent of the obligations of
any other Guarantor, any other party or any Borrower, and a separate action or
actions may be brought and prosecuted against each Guarantor whether or not
action is brought against any other Guarantor, any other party or any Borrower
and whether or not any other Guarantor, any other party or any Borrower be
joined in any such action or actions.

     

    
      
        
        

      

      
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    (b) Each
Guarantor shall be regarded, and shall be in the same position, as principal
debtor with respect to the Guaranteed Obligations.  Each Guarantor
agrees that any notice or directive given at any time to the Administrative
Agent that is inconsistent with the preceding paragraph shall be null and void
and may be ignored by the Administrative Agent, the Collateral Agent, the L/C
Issuers and the Lenders, and, in addition, may not be pleaded or introduced as
evidence in any litigation relating to this Guaranty for the reason that such
pleading or introduction would be at variance with the written terms of this
Guaranty, unless the Agents and the Lenders have specifically agreed otherwise
in writing.  It is agreed among each Guarantor, the Administrative
Agent, the Collateral Agent, the L/C Issuers and the Lenders that the foregoing
waivers are of the essence of the transaction contemplated by the Loan Documents
and that, but for this Guaranty and such waivers, the Agents, the L/C Issuers
and the Lenders  would decline to enter into this Agreement and the
other Loan Documents.

     

    SECTION
12.04 Demand by the Administrative
Agent or the Lenders.  In addition to the terms of the Guaranty
set forth in 
SECTION 12.01, and in
no manner imposing any limitation on such terms, it is expressly understood and
agreed that, if, at any time, the outstanding principal amount of the Guaranteed
Obligations under this Agreement (including all accrued interest thereon) is
declared to be immediately due and payable, then the Guarantors shall, without
demand, pay to the holders of the Guaranteed Obligations the entire outstanding
Guaranteed Obligations due and owing to such holders.  Payment by the
Guarantors shall be made to the Administrative Agent at the Administrative
Agent’s Account (or at any other account that may be specified in writing from
time to time by the Administrative Agent), and shall be made in Dollars and by
wire transfer or ACH transfer in immediately available funds, and shall be
credited and applied to the Guaranteed Obligations in the manner specified in
SECTION
2.09.

     

    SECTION
12.05 Enforcement of
Guaranty.  In no event shall any Agent or any Lender have any
obligation (although it is entitled, at its option) to proceed against any
Borrower or any other Credit Party or any Collateral pledged to secure
Guaranteed Obligations before seeking satisfaction from any or all of the
Guarantors, and the Administrative Agent may proceed, prior or subsequent to, or
simultaneously with, the enforcement of such Agent’s or such Lender’s rights
hereunder, to exercise any right or remedy it may have against any Collateral,
as a result of any Lien it may have as security for all or any portion of the
Guaranteed Obligations.

     

    SECTION
12.06 Waiver.  In
addition to the waivers contained in 
SECTION 11.03, the
Guarantors waive, and agree that they shall not at any time insist upon, plead
or in any manner claim or take the benefit or advantage of, any appraisal,
valuation, stay, extension, marshaling of assets or redemption law, or
exemption, whether now or at any time hereafter in force, which may delay,
prevent or otherwise affect the performance by the Guarantors of their
Guaranteed Obligations under, or the enforcement by the Collateral Agent, the
Administrative Agent or the Lenders of, the Guaranty.  The Guarantors
hereby waive diligence, presentment and demand (whether for non-payment or
protest or of acceptance, maturity, extension of time, change in nature or form
of the Guaranteed Obligations, acceptance of further Collateral, release of
further Collateral, composition or agreement arrived at as to the amount of, or
the terms of, the Guaranteed Obligations, notice of adverse change in the
Borrower’s financial condition or any other fact which might increase the risk
to the Guarantors) with respect to any of the Guaranteed Obligations or all
other demands whatsoever and waive the benefit of all provisions of law which
are or might be in conflict with the terms of the Guaranty.  The
Guarantors represent, warrant and jointly and severally agree that, as of the
date of this Agreement, their obligations under the Guaranty are not subject to
any offsets or defenses against the Administrative Agent, the Collateral Agent
or the Lenders or any Credit Party of any kind.  The Guarantors
further jointly and severally agree that their obligations under this Guaranty
shall not be subject to any counterclaims, offsets or defenses against the
Collateral Agent, the Administrative Agent, any Lender, any L/C Issuer or
against any Credit Party of any kind which may arise in the future.

     

    
      
        
        

      

      
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    SECTION
12.07 Benefit of
Guaranty.  The provisions of the Guaranty are for the benefit
of the Agents, the Lenders, the L/C Issuers and their respective permitted
successors, permitted transferees, endorsees and assigns, and nothing herein
contained shall impair, as between any Credit Party and the Agents, the Lenders
or the L/C Issuers, the obligations of any Credit Party under the Loan
Documents.  In the event all or any part of the Guaranteed Obligations
are transferred, endorsed or assigned by any Agent, any Lender or any L/C Issuer
to any Person or Persons in a manner permitted by this Agreement, any reference
to “the Administrative Agent”, “the Collateral Agent”, “the Agents”, “the L/C
Issuers” or “the Lenders” herein shall be deemed to refer equally to such Person
or Persons.

     

    SECTION
12.08 Modification of Guaranteed
Obligations, Etc.  Each Guarantor hereby acknowledges and
agrees that the Agents and the Lenders may at any time or from time to time,
with or without the consent of, or notice to, the Guarantors (in their capacity
as Guarantors):

     

    (a) change or
extend the manner, place or terms of payment of, or renew or alter all or any
portion of, the Guaranteed Obligations;

     

    (b) take any
action under or in respect of the Loan Documents in the exercise of any remedy,
power or privilege contained therein or available to it at law, equity or
otherwise, or waive or refrain from exercising any such remedies, powers or
privileges;

     

    (c) amend or
modify, in any manner whatsoever, the Loan Documents;

     

    (d) extend or
waive the time for any Credit Party’s performance of, or compliance with, any
term, covenant or agreement on its part to be performed or observed under the
Loan Documents, or waive such performance or compliance or consent to a failure
of, or departure from, such performance or compliance;

     

    (e) take and
hold Collateral for the payment of the Guaranteed Obligations guaranteed hereby
or sell, exchange, release, dispose of, or otherwise deal with, any property
pledged, mortgaged or conveyed, or in which the Agents or the Lenders have been
granted a Lien, to secure any Guaranteed Obligation;

     

    (f) release
anyone who may be liable in any manner for the payment of any amounts owed by
the Guarantors or any Credit Party to the Agents or any Secured
Creditor;

     

    (g) modify or
terminate the terms of any intercreditor or subordination agreement pursuant to
which claims of other creditors of any Guarantor or any Credit Party are
subordinated to the claims of the Agents, the Lenders and the L/C
Issuers;

     

    (h) apply any
sums by whomever paid or however realized to any amounts owing by any Guarantor
or any Credit Party to any Agent, any Lender or any L/C Issuer in such manner as
the Administrative Agent shall determine in its discretion; and/or

     

    
      
        
        

      

      
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    (i) the
Agents, the L/C Issuers and the Lenders shall not incur any liability to the
Guarantors as a result thereof, and no such action shall impair or release the
Guaranteed Obligations of the Guarantors or any of them under the
Guaranty.

     

    SECTION
12.09 Reinstatement.

     

    (a) The
Guaranty shall remain in full force and effect and continue to be effective
should any petition be filed by or against any Credit Party or any Guarantor for
liquidation or reorganization, should any Credit Party or any Guarantor become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of such Credit
Party’s or such Guarantor’s assets, and shall continue to be effective or be
reinstated, as the case may be, if at any time payment and performance of the
Guaranteed Obligations, or any part thereof, is, pursuant to Applicable Law,
rescinded or reduced in amount, or must otherwise be restored or returned by any
Agent, any Lender or any L/C Issuer, whether as a “voidable preference,”
“fraudulent conveyance,” or otherwise, all as though such payment or performance
had not been made.  In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Guaranteed Obligations
shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned.

     

    (b) If any
claim is ever made upon any Agent, any Lender or any L/C Issuer for repayment or
recovery of any amount or amounts received in payment or on account of any of
the Obligations and any of the aforesaid payees repays all or part of said
amount by reason of (i) any judgment, decree or order of any court or
administrative body having jurisdiction over such payee or any of its property,
or (ii) compliance by the Lenders, the L/C Issuers or the Agents with any
requirement of a Governmental Authority having jurisdiction over the Lenders,
the L/C Issuers or the Agents, then and in such event each Guarantor agrees that
any such judgment, decree or order shall be binding upon it, notwithstanding any
revocation of the Guaranty or other instrument evidencing any liability of the
Borrowers or any termination of this Agreement, and each Guarantor shall be and
remain liable to the aforesaid payees hereunder for the amount so repaid or
recovered to the same extent as if such amount had never originally been
received by any such payee.  In the event that any payment, or any
part thereof, is rescinded, reduced, restored or returned, the Guaranteed
Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

     

    SECTION
12.10 Waiver of Subrogation,
Etc.  Notwithstanding anything to the contrary in the Guaranty
or in any other Loan Document, each Guarantor hereby:

     

    (a) until the
payment and satisfaction in full in cash of the Guaranteed Obligations,
expressly waives, on behalf of itself and its successors and assigns (including
any surety), any and all rights at law or in equity to subrogation, to
reimbursement, to exoneration, to contribution, to indemnification, to set-off
or to any other rights that could accrue to a surety against a principal, to a
Guarantor against a principal, to a Guarantor against a maker or obligor, to an
accommodation party against the party accommodated, to a holder or transferee
against a maker, or to the holder of any claim against any Person, and which
such Guarantor may have or hereafter acquire against any Credit Party in
connection with or as a result of such Guarantor’s execution, delivery and/or
performance of this Agreement, or any other documents to which such Guarantor is
a party or otherwise; and

     

    
      
        
        

      

      
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    (b) acknowledges
and agrees (i) that this waiver is intended to benefit the Agents, the L/C
Issuers and the Lenders and shall not limit or otherwise effect any Guarantor’s
liability hereunder or the enforceability of the Guaranty, and (ii) that
the Agents, the L/C Issuers, the Lenders and their respective successors and
assigns are intended third-party beneficiaries of the waivers and agreements set
forth in this 
SECTION 12.10 and
their rights under this 
SECTION 12.10 shall
survive payment in full of the Guaranteed Obligations.

     

    SECTION
12.11 Election of
Remedies.  If any Agent may, under Applicable Law, proceed to
realize benefits under any of the Loan Documents giving the Agents, the L/C
Issuers and the Lenders a Lien upon any Collateral owned by any Credit Party,
either by judicial foreclosure or by non-judicial sale or enforcement, the
Collateral Agent may, at its sole option, determine which of such remedies or
rights it may pursue without affecting any of such rights and remedies under
this Guaranty.  If, in the exercise of any of its rights and remedies,
the Collateral Agent shall forfeit any of its rights or remedies, including its
right to enter a deficiency judgment against any Credit Party, whether because
of any Applicable Laws pertaining to “election of remedies” or the like, the
Guarantors hereby consent to such action by any Agent and waive any claim based
upon such action, even if such action by such Agent shall result in a full or
partial loss of any rights of subrogation which the Guarantors might otherwise
have had but for such action by such Agent.  Any election of remedies
that results in the denial or impairment of the right of any Agent to seek a
deficiency judgment against any Credit Party shall not impair each Guarantor’s
obligation to pay the full amount of the Guaranteed Obligations.  In
the event any Agent shall bid at any foreclosure or trustee’s sale or at any
private sale permitted by law or the Loan Documents, such Agent may bid all or
less than the amount of the Guaranteed Obligations and the amount of such bid
need not be paid by such Agent but shall be credited against the Guaranteed
Obligations.  The amount of the successful bid at any such sale shall
be conclusively deemed to be the fair market value of the Collateral and the
difference between such bid amount and the remaining balance of the Guaranteed
Obligations shall be conclusively deemed to be the amount of the Guaranteed
Obligations guaranteed under the Guaranty, notwithstanding that any present or
future law or court decision or ruling may have the effect of reducing the
amount of any deficiency claim to which the Agents, the L/C Issuers and the
Lenders might otherwise be entitled but for such bidding at any such
sale.

     

    SECTION
12.12 Further
Assurances.  Each Guarantor agrees, upon the written request of
the Administrative Agent, to execute and deliver to the Administrative Agent,
from time to time, any additional instruments or documents reasonably considered
necessary by the Administrative Agent to cause the Guaranty to be, become or
remain valid and effective in accordance with its terms.

     

    SECTION
12.13 Payments Free and Clear of
Taxes.  Except as set forth below, all payments required to be
made by each Guarantor hereunder shall be made to the Administrative Agent, for
the benefit of the Agents, the L/C Issuers and the Lenders, free and clear of,
and without deduction for, any and all present and future Taxes and other Taxes
(but not Excluded Taxes).  If any Guarantor shall be required by law
to deduct any Taxes from or in respect of any sum payable hereunder,
(a) the sum payable shall be increased as much as shall be necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this 
SECTION 12.13) the
Agents, the L/C 

     

    
      
        
        

      

      
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    Issuers
or the Lenders, as applicable, receive an amount equal to the sum they would
have received had no such deductions been made, (b) such Guarantor shall
make such deductions, and (c) such Guarantor shall pay the full amount
deducted to the relevant taxing or other authority in accordance with Applicable
Law.  Notwithstanding the foregoing, no Guarantor should be required
to pay any such additional amounts to an Agent, an L/C Issuer or a Lender with
respect to any Taxes in respect of which the Borrowers would not be required to
pay any additional amounts pursuant to 
SECTION 3.04 if such
Taxes were withheld or deducted by the Borrowers and the payment had been made
by the Borrowers instead of such Guarantor.  Within thirty (30) days
after the date of any payment of Taxes, each applicable Guarantor shall furnish
to the Administrative Agent the original or a certified copy of a receipt
evidencing payment thereof.  Except as set forth below, each Guarantor
shall jointly and severally indemnify and, within ten (10) days of receipt of
written demand therefor, pay the Administrative Agent, for the benefit of the
Agents, the L/C Issuers and the Lenders, for the full amount of Taxes (including
any Taxes imposed by any jurisdiction on amounts payable under this 

SECTION 12.13) paid
by any Agent, any L/C Issuer or any Lender, as appropriate, with respect to any
payment by or on account of any obligation of a Guarantor hereunder and any
penalties, interest and reasonable out-of-pocket expenses arising therefrom or
with respect thereto, whether or not such Taxes were correctly or legally
asserted.  Notwithstanding the foregoing, a Guarantor shall not be
required to indemnify an L/C Issuer, a Lender or an Agent with respect to any
Taxes in respect of which the Borrowers would not be required to indemnify such
L/C Issuer, Lender or Agent pursuant to 
SECTION 3.04 if the
payment had been made by the Borrowers and such Taxes arose with respect to any
payment by or on account of any obligation of the Borrowers. If an L/C Issuer, a
Lender or an Agent receives a refund in respect of Taxes or Other Tax as to
which it has been indemnified by the Guarantor, and which the Guarantors have
paid, pursuant to this 
SECTION 12.13, it
shall within thirty (30) days from the date of such receipt pay over such refund
to the Guarantor net of all out-of-pocket expenses of such L/C Issuer, Lender or
Agent, as applicable.

     

    SECTION
12.14 Limitation on Amount
Guarantied; Contribution by Guarantors.  Anything contained in
this 
ARTICLE XII to the
contrary notwithstanding, if any Fraudulent Transfer Law is determined by a
court of competent jurisdiction to be applicable to the obligations of any
Guarantor under this Agreement, such obligations of such Guarantor hereunder
shall be limited to a maximum aggregate amount equal to the largest amount that
would not render its obligations hereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of the Bankruptcy Code or any
applicable provisions of the Uniform Fraudulent Transfer Act, the Uniform
Fraudulent Conveyance Act or any other comparable state law (collectively, the
“Fraudulent Transfer
Laws”), in each case after giving effect to all other liabilities of such
Guarantor, contingent or otherwise, that are relevant under the Fraudulent
Transfer Laws (excluding, however, any liabilities of such Guarantor (a) in
respect of intercompany Indebtedness to the Borrowers or other Affiliates of the
Borrowers to the extent that such Indebtedness would be discharged in an amount
equal to the amount paid by such Guarantor hereunder, and (b) under any
guarantee of any subordinated Indebtedness which guarantee contains a limitation
as to maximum amount similar to that set forth in this 
SECTION 12.14,
pursuant to which the liability of such Guarantor hereunder is included in the
liabilities taken into account in determining such maximum amount).

     

     

    
      
        
        

      

      
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    ARTICLE
XIII

    THE
AGENTS

     

    SECTION
13.01 Appointment Powers and
Immunities; Delegation of Duties; Liability of Agents.

     

    (a) Each
Lender and each L/C Issuer hereby irrevocably designates and appoints GENERAL
ELECTRIC CAPITAL CORPORATION as its Collateral Agent under this Agreement and
the other Loan Documents and GENERAL ELECTRIC CAPITAL CORPORATION as
Administrative Agent under this Agreement and the other Loan
Documents.  The provisions of this 
SECTION 13.01 are
solely for the benefit of the Agents, the L/C Issuers and Lenders and no Credit
Party nor any other Person, other than permitted sub-agents, shall have any
rights as a third-party beneficiary of any of the provisions
hereof.  In performing its functions and duties under this Agreement
and the other Loan Documents, each Agent shall act solely as an agent of Lenders
and the L/C Issuers and does not assume and shall not be deemed to have assumed
any obligation toward or relationship of agency or trust with or for any Credit
Party or any other Person.  No Agent shall have duties or
responsibilities except for those expressly set forth in this Agreement and the
other Loan Documents.  Unless otherwise provided, each Agent may
execute its functions and duties under this Agreement and the other Loan
Documents by or through agents, employees or attorneys-in-fact and shall be
entitled to the advice of counsel concerning all matters pertaining to such
functions and duties.  No Agent shall be responsible for the
negligence or misconduct of any agent or attorney-in-fact that it selects as
long as such selection was made without gross negligence or willful
misconduct.  The duties of each Agent shall be mechanical and
administrative in nature and no Agent shall have, or be deemed to have, by
reason of this Agreement, any other Loan Document or otherwise, a fiduciary
relationship in respect of any Lender or any L/C Issuer.  Except as
expressly set forth in this Agreement and the other Loan Documents, no Agent
shall have any duty to disclose, and shall not be liable for failure to
disclose, any information relating to any Credit Party or any of such Credit
Party’s Subsidiaries or any Account Debtor that is communicated to or obtained
any Agent or any of its Affiliates in any capacity.  No Agent nor any
Agent’s Affiliates nor any Agent’s respective officers, directors, employees,
agents or representatives shall be liable to any Lender or any L/C Issuer for
any action taken or omitted to be taken by it hereunder or under any other Loan
Document, or in connection herewith or therewith, except for damages caused by
its own gross negligence or willful misconduct.

     

    (b) If the
Administrative Agent or the Collateral Agent shall request instructions from the
Required Lenders or all affected Lenders with respect to any act or action
(including a failure to act) in connection with this Agreement or any other Loan
Document, then the Administrative Agent or the Collateral Agent, as the case may
be, shall be entitled to refrain from such act or taking such action unless and
until such Agent shall have received instructions from the Required Lenders or
all affected Lenders, as the case may be, and neither the Administrative Agent
nor the Collateral Agent shall incur liability to any Person by reason of so
refraining.  Each Agent shall be fully justified in failing or
refusing to take any action hereunder or under any other Loan Document
(i) if such action would, in the opinion of such Agent, be contrary to law
or the terms of this Agreement or any other Loan Document, (ii) if such
action would, in the opinion of such Agent, expose such Agent to Environmental
Liabilities and Costs or (iii) if such Agent shall not first be indemnified
to its satisfaction against any and all liability and expense which may be
incurred by it by reason of taking or continuing to take any such
action.  Without limiting the foregoing, no Lender nor L/C Issuer
shall have any right of action whatsoever against any Agent as a result of such
Agent acting or refraining from acting hereunder or under any other Loan
Document in accordance with the instructions of Required Lenders or all affected
Lenders, as applicable.

     

    
      
        
        

      

      
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    SECTION
13.02 Reliance by
Agents.  Each Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement or other document or conversation reasonably believed by it to be
genuine and correct and to have been signed, sent, or made by the proper Person,
and upon advice and statements of legal counsel (including counsel to the
Borrowers or counsel to any Lender), independent accountants and other experts
selected by such Agent.  Each Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan
Document unless it first shall receive such advice or concurrence of the Lenders
or the L/C Issuers as it deems appropriate and until such instructions are
received, such Agent shall act, or refrain from acting, as it deems
advisable.  If the Administrative Agent or the Collateral Agent so
requests, it first shall be indemnified to its reasonable satisfaction by the
Lenders against any and all liability and expense that may be incurred by it by
reason of taking or continuing to take any action under this Agreement or any
other Loan Document.  The Administrative Agent and the Collateral
Agent in all cases shall be fully protected in acting, or in refraining from
acting, under this Agreement or any other Loan Document in accordance with a
request or consent of the Required Lenders or the Lenders, as required under
this Agreement and any action taken or failure to act pursuant to such request
or consent shall be binding upon all Lenders and the L/C Issuers.

     

    SECTION
13.03 Defaults.  With
respect to its relationship with any of the Lenders and the L/C Issuers, no
Agent shall be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default, except with respect to defaults in the scheduled
payment of principal and interest required to be paid to such Agent for the
account of the Lenders and the L/C Issuers and except with respect to Events of
Default of which such Agent has actual knowledge due to receipt of a written
notice thereof from a Lender, an L/C Issuer or the Administrative Borrower
referring to this Agreement, describing such Default or Event of Default, and
stating that such notice is a “Notice of Default”.  Such Agent
promptly will notify the Lenders and the L/C Issuers of its receipt of any such
notice or of any Event of Default of which such Agent has actual
knowledge.  If any Lender or any L/C Issuer obtains actual knowledge
of any Event of Default, such Lender or such L/C Issuer promptly shall notify
the other Lenders and the other L/C Issuers and each Agent of such Event of
Default.  Each Lender shall be solely responsible for giving any
notices to its Participants, if any.  Subject to

SECTION 13.03 and 
SECTION 13.07, each
Agent shall take such action with respect to such Default or Event of Default as
may be requested by the Required Lenders in accordance with

ARTICLE XI; provided, however, that unless
and until such Agent has received any such request, such Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in its
sole discretion.

     

     

    
      
        
        

      

      
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    SECTION
13.04 Rights as a
Lender.

     

    (a) With
respect to its Commitments and the Loans made by it, the Administrative Agent
(and any successor acting as Administrative Agent, if any, as permitted by 
SECTION 13.08(a)) in
its capacity as a Lender under the Loan Documents shall have the same rights,
privileges and powers under the Loan Documents as any other Lender and may
exercise the same as though it were not acting as Administrative Agent, and the
term “Lender”
or “Lenders”
shall, unless the context otherwise indicates, include the Administrative Agent
in its individual capacity.  The Administrative Agent (and any
successor acting as Administrative Agent) and its Affiliates may (without having
to account for the same to any Lender) accept deposits from, lend money to, make
investments in and generally engage in any kind of banking, trust, principal
investment or other business with a Borrower (and any of their Subsidiaries or
Affiliates) as if it were not acting as Administrative Agent, and the
Administrative Agent (and its successors) and its Affiliates may accept fees and
other consideration from a Borrower (or any other Person) for services in
connection with this Agreement or otherwise without having to account for the
same to the Lenders.

     

    (b) With
respect to its Commitments and the Loans made by it, the Collateral Agent (and
any successor acting as the Collateral Agent, if any, as permitted by 
SECTION 13.08(b) in
its capacity as a Lender under the Loan Documents shall have the same rights,
privileges and powers under the Loan Documents as any other Lender and may
exercise the same as though it were not acting as the Collateral Agent, and the
term “Lender”
or “Lenders”
shall, unless the context otherwise indicates, include the Collateral Agent in
its individual capacity.  The Collateral Agent (and any successor
acting as the Collateral Agent) and its Affiliates may (without having to
account for the same to any Lender) accept deposits from, lend money to, make
investments in and generally engage in any kind of banking, trust, principal
investment or other business with a Borrower (and any of their Subsidiaries or
Affiliates) as if it were not acting as the Collateral Agent, and the Collateral
Agent (and its successors) and its Affiliates may accept fees and other
consideration from a Borrower (or any other Person) for services in connection
with this Agreement or otherwise without having to account for the same to the
Lenders.

     

    SECTION
13.05 Costs and Expenses;
Indemnification.  Each Agent may incur and pay fees, costs, and
expenses under the Loan Documents to the extent such Agent deems reasonably
necessary or appropriate for the performance and fulfillment of its functions,
powers, and obligations pursuant to the Loan Documents, including, without
limiting the generality of the foregoing, court costs, reasonable attorneys’
fees and expenses, costs of collection by outside collection agencies,
auctioneer fees, costs of security guards, insurance premiums, taxes, or other
amounts paid to protect or maintain the Collateral or to enhance the likelihood
of payment of the Obligations following Default, whether or not a Borrower is
obligated to reimburse the Lenders or the L/C Issuers for such expenses pursuant
to the Loan Agreement or otherwise (to the extent the Borrowers have not done so
and without limiting its obligation to do so).  Each Lender hereby
agrees that it is and shall be obligated to pay to or reimburse the
Administrative Agent and the Collateral Agent for the amount of such Lender’s
Pro Rata Share thereof.  Whether or not the transactions contemplated
hereby are consummated, the Lenders shall indemnify upon demand the
Agent-Related Persons 

     

    
      
        
        

      

      
        109

        
          

        

      

      
        
        

      

    

     

    (to the
extent the Borrowers have not done so and without limiting the obligation of the
Borrowers to do so), according to their Pro Rata Shares, from and against any
and all Indemnified Matters (including, without limitation, Indemnified Matters
arising under any Environmental Law as provided in 
SECTION 14.19); provided, however, that no
Lender shall be liable for the payment to the Agent-Related Persons of any
portion of such Indemnified Matters resulting solely from such Person’s gross
negligence or willful misconduct as determined in a final order by a court of
competent jurisdiction.  Without limitation of the foregoing, each
Lender shall reimburse the Administrative Agent or the Collateral Agent, as the
case may be, upon demand for such Lender’s ratable share of any costs or
out-of-pocket expenses (including reasonable attorneys’ fees and expenses)
incurred by such Agent in connection with the preparation, execution, delivery,
administration, modification, amendment, or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, any other Loan Document, or
any document contemplated by or referred to herein.  The undertaking
in this 
SECTION 13.05 shall
survive the payment of all Obligations hereunder and the resignation or
replacement of any Agent.

     

    SECTION
13.06 Non-Reliance on Agents and
Other Lenders.  Each Lender and each L/C Issuer acknowledges
that none of the Agent-Related Persons has made any representation or warranty
to it, and that no act by any Agent hereinafter taken, including any review of
the affairs or Property of any of the Credit Parties or their Subsidiaries,
shall be deemed to constitute any representation or warranty by any
Agent-Related Person to any Lender or any L/C Issuer.  Each Lender and
L/C Issuer represents to each Agent that it has, independently and without
reliance upon any Agent-Related Person and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, prospects, operations, property, financial and
other condition and creditworthiness of the Borrowers and any other Person
(other than the Lenders and L/C Issuers) party to a Loan Document, and all
applicable bank regulatory laws relating to the transactions contemplated
hereby, and made its own decision to enter into this Agreement and to extend
credit to the Borrowers.  Each Lender and L/C Issuer also represents
that it will, independently and without reliance upon any Agent-Related Person
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Borrowers and any other Person (other than the Lenders
and L/C Issuers) party to a Loan Document.  Except for notices,
reports and other documents expressly herein required to be furnished to the
Lenders by such Agent, no Agent shall have any duty or responsibility to provide
any Lender or any L/C Issuer with any credit or other information concerning the
business, prospects, operations, Property, financial and other condition or
creditworthiness of the Borrowers or of any other Person party to a Loan
Document that may come into the possession of any of the Agent-Related
Persons.

     

    SECTION
13.07 Failure to
Act.  Except for action expressly required of any Agent under
the Loan Documents, such Agent shall in all cases be fully justified in failing
or refusing to act under any Loan Document unless it shall receive further
assurances to its satisfaction from the Lenders of their indemnification
obligations under 
SECTION 13.05 against
any and all liability and expense that may be incurred by it by reason of taking
or continuing to take any such action.

     

    
      
        
        

      

      
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    SECTION
13.08 Resignation of
Agent.

     

    (a) Subject
to the appointment and acceptance of a successor Administrative Agent as
provided below, the Administrative Agent may resign at any time by notice to the
Lenders and the Administrative Borrower.  Upon any such resignation,
the Required Lenders with the consent of the Administrative Borrower (which
consent shall not be unreasonably withheld) shall have the right to appoint a
successor Administrative Agent.  If no successor Administrative Agent
shall have been appointed by the Required Lenders and consented to by the
Administrative Borrower and no successor Administrative Agent shall have
accepted such appointment within thirty (30) days after the retiring
Administrative Agent’s giving of notice of resignation, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent; provided, however, if the
failure to do so was not a result of the failure by the Administrative Borrower
to consent to any appointment, the Administrative Borrower shall retain the
right to consent; provided, further, that if the
failure to do so was not a result of the failure of the Required Lenders to
appoint such successor, the Required Lenders shall obtain the right to consent
to such successor.  Upon the acceptance of any appointment as the
Administrative Agent by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all the
rights, remedies, powers, privileges, duties and obligations of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged
from its duties and obligations, under the Loan Documents.  After any
retiring Administrative Agent’s resignation as Administrative Agent, the
provisions of this 
ARTICLE XIII shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as Administrative Agent.

     

    (b) Subject
to the appointment and acceptance of a successor Collateral Agent as provided
below, the Collateral Agent may resign upon thirty (30) days, prior written
notice to the Lenders and the Administrative Borrower.  Upon any such
resignation, the Required Lenders with the consent of the Administrative
Borrower (which consent shall not be unreasonably withheld or delayed) shall
have the right to appoint a successor Collateral Agent.  If no
successor Collateral Agent shall have been appointed by the Required Lenders and
consented to by the Administrative Borrower and no successor Collateral Agent
shall have accepted such appointment within thirty (30) days after the retiring
Collateral Agent’s giving of notice of resignation, then the retiring Collateral
Agent may, on behalf of the Lenders, appoint a successor Collateral Agent; provided, however, if the
failure to do so was not a result of the failure by the Administrative Borrower
to consent to any appointment, the Administrative Borrower shall retain the
right to consent.  Upon the acceptance of any appointment as
Collateral Agent by a successor Collateral Agent, such successor Collateral
Agent shall thereupon succeed to and become vested with all the rights,
remedies, powers, privileges, duties and obligations of the retiring Collateral
Agent, and the retiring Collateral Agent shall be discharged from its duties and
obligations, under the Loan Documents.  After any retiring Collateral
Agent’s resignation as the Collateral Agent, the provisions of this 
ARTICLE XIII shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as the Collateral Agent.

     

     

    
      
        
        

      

      
        111

        
          

        

      

      
        
        

      

       

    

    SECTION
13.09 Collateral
Sub-Agents.  Each Lender and L/C Issuer by its execution and
delivery of this Agreement (or any Assignment and Acceptance hereunder), agrees
that, in the event it shall hold any monies or other investments on account of
the Borrowers or any other Credit Party, such monies or other investments shall
be held in the name and under the control of the Collateral Agent, the
Administrative Agent, such L/C Issuer or such Lender, and the Collateral Agent,
the Administrative Agent, such L/C Issuer or such Lender shall hold such monies
or other investments as a collateral sub-agent for Administrative Agent and
Collateral Agent under this Agreement and the other Loan
Documents.  The Borrowers and each other Credit Party, by its
execution and delivery of this Agreement, hereby consents to the
foregoing.

     

    SECTION
13.10 Communications by the
Borrowers.  Except as otherwise provided in this Agreement, the
Borrowers’ communications with respect to the Loan Documents shall be with the
Administrative Agent or the Collateral Agent, as the case may be, and the
Borrowers shall be under no obligation to communicate directly with the Lenders
or the L/C Issuers.

     

    SECTION
13.11 Collateral
Matters.

     

    (a) The
Lenders and the L/C Issuers hereby irrevocably authorize the Collateral Agent,
at its option and in its sole discretion, to release any Lien on any Collateral
(i) upon the termination of the Commitments and payment and satisfaction in
full of all Obligations owed to the Agents, the Lenders and the L/C Issuers
(other than those contingent Obligations for reimbursement and indemnity that
expressly survive the termination of this Agreement); (ii) constituting
property being sold or disposed of if a release is required or desirable in
connection therewith and if the Administrative Borrower certifies in writing to
the Collateral Agent that the sale or disposition is permitted under this
Agreement or the other Loan Documents (and the Collateral Agent may rely
conclusively on any such certificate, without further inquiry);
(iii) constituting property in which the Borrowers owned no interest at the
time the security interest was granted or at any time thereafter;
(iv) constituting property leased to the Borrowers under a lease that has
expired or is terminated in a transaction permitted under this Agreement;
(v) constituting Equipment which, in the aggregate with all other
dispositions of Equipment covered by this clause (v), has
a fair market value or book value, whichever is less, of five million Dollars
($5,000,000) or less in any single fiscal year; or (vi) any other release
consented by the Required Lenders.  Upon request by the Collateral
Agent or the Borrowers at any time, the Administrative Agent and the Lenders
will confirm in writing the Collateral Agent’s authority to release any such
Liens on particular types or items of Collateral pursuant to this 
SECTION 13.11; provided, however, that
(A) the Collateral Agent shall not be required to execute any document
necessary to evidence such release on terms that, in the Collateral Agent’s
opinion, would expose the Collateral Agent to liability or create any obligation
or entail any consequence other than the release of such Lien without recourse,
representation, or warranty, and (B) such release shall not in any manner
discharge, affect, or impair the Obligations or any Liens (other than those
expressly being released) upon (or obligations of the Borrowers in respect of)
all interests retained by the Borrowers in any asset(s) transferred, including,
the proceeds of any sale, all of which shall continue to constitute part of the
Collateral.

     

    (b) Neither
the Administrative Agent not the Collateral Agent shall have any obligation
whatsoever to any other Lender or L/C Issuer to assure that the Collateral
exists or is owned by the applicable Credit Party or is cared for, protected, or
insured or has been encumbered, or that all or any portion of the Liens securing
the Obligations have been properly or sufficiently or lawfully created,
perfected, protected, or enforced or are entitled to any particular priority, or
to exercise at all or in any particular manner or under any duty of care,
disclosure or fidelity, or to continue exercising, any of the rights,
authorities and powers granted or available to the Administrative Agent or the
Collateral Agent pursuant to any 

     

    
      
        
        

      

      
        112

        
          

        

      

      
        
        

      

    

     

    of the
Loan Documents, it being understood and agreed that in respect of the
Collateral, or any act, omission or event related thereto, subject to the terms
and conditions contained herein, the Administrative Agent and the Collateral
Agent each may act in any manner it may deem appropriate, in its sole discretion
given its own interest in the Collateral and that neither the Administrative
Agent nor the Collateral Agent shall have any other duty or liability whatsoever
to any other Lender or L/C Issuer as to any of the foregoing, except as
otherwise expressly provided herein.

     

    SECTION
13.12 Restrictions on Actions by
the Agents and the Lenders; Sharing Payments.

     

    (a) The
Administrative Agent and each of the Lenders and L/C Issuers agrees that it
shall not, without the express consent of the Collateral Agent, and that it
shall, to the extent it is lawfully entitled to do so, upon the request of the
Administrative Agent and the Collateral Agent, set-off against the Obligations,
any amounts owing by such Lenders or L/C Issuers to the Credit Parties or any
accounts of the Credit Parties now or hereafter maintained with such Lenders or
L/C Issuers.  The Administrative Agent and each of the Lenders and the
L/C Issuers further agrees that it shall not, unless specifically requested to
do so by the Collateral Agent, take or cause to be taken any action, including
the commencement of any legal or equitable proceedings, to foreclose any Lien
on, or otherwise enforce any security interest in, any of the Collateral the
purpose of which is, or could be, to give such Lenders any preference or
priority against the other Lenders or L/C Issuers with respect to the
Collateral.

     

    (b) If, at
any time or times any Lender or L/C Issuer shall receive (i) by payment,
foreclosure, set-off or otherwise, any proceeds of Collateral or any payments
with respect to the Obligations arising under, or relating to, this Agreement or
the other Loan Documents, except for any such proceeds or payments received by
such Lender or L/C Issuer from the Administrative Agent pursuant to the terms of
this Agreement, or (ii) payments from the Administrative Agent in excess of
such Lender’s or such L/C Issuer’s ratable portion of all such distributions by
the Administrative Agent, such Lender or such L/C Issuer, as the case may be,
shall promptly turn the same over to the Administrative Agent, in kind, and with
such endorsements as may be required to negotiate the same to the Administrative
Agent, or in same-day funds, as applicable, for the account of the Agents, the
Lenders and the L/C Issuers and for apportionment and application to the
Obligations in accordance with 
SECTION 3.02
 (c) and 
SECTION
3.03(b).

     

    SECTION
13.13 Several Obligations; No
Liability.  Notwithstanding that certain of the Loan Documents
now or hereafter may have been or will be executed only by or in favor of an
Agent in its capacity as such, and not by or in favor of the Lenders or the L/C
Issuers, any and all obligations on the part of the Administrative Agent, if
any, to make any credit available hereunder shall constitute the several (and
not joint) obligations of the respective Lenders on a ratable basis, according
to their respective Commitments, to make an amount of such credit not to exceed,
in principal amount, at any one time outstanding, the amount of their respective
Commitments.  Nothing contained herein shall confer upon any Lender or
any L/C Issuer any interest in, or subject any Lender or L/C Issuer to any
liability for, or in respect of, the business, assets, profits, losses, or
liabilities of any other Lenders.  Each Lender shall be solely
responsible for notifying its Participants of any matters relating to the Loan
Documents to the extent any such notice may be required, and no 

     

    
      
        
        

      

      
        113

        
          

        

      

      
        
        

      

    

     

    Lender
shall have any obligation, duty, or liability to any Participant of any other
Lender.  Except as provided in 
SECTION 13.05, no
Agent, no L/C Issuer and no Lender shall have any liability for the acts of any
other Agent, any other L/C Issuer or any other Lender.  No Lender nor
any L/C Issuer shall be responsible to the Borrowers or any other Person for any
failure by any other Lender or any other L/C Issuer to fulfill its obligations
to make credit available hereunder, nor to advance for it or on its behalf in
connection with its Commitment, nor to take any other action on its behalf
hereunder, under any other Loan Document or in connection with the financing
contemplated herein.

     

    SECTION
13.14 No Other Duties,
Etc.  Anything herein to the contrary notwithstanding, none of
the Joint Lead Arrangers, the Joint Lead Bookrunners nor the Documentation Agent
listed on the cover page hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents, except
in its capacity, as applicable, as a Lender or an L/C Issuer
hereunder.

     

    ARTICLE
XIV

    MISCELLANEOUS

     

    SECTION
14.01 Notices, Etc.  All
notices and other communications provided for hereunder shall be in writing and
shall be mailed, certified mail return receipt requested, telecopied, emailed or
delivered by overnight delivery service or in person:

     

    
      
        	
                if to the Credit
      Parties, c/o the Administrative Borrower at the following
      address:

              
	 
	
                James
      River Coal Company

              
	
                901
      E. Byrd Street, Suite 1600

              
	
                Richmond,
      VA 23219

              
	
                Attn:
      Samuel M. Hopkins II

              
	 
      
	
                with a copy
      to:

              
	 
	
                Kilpatrick
      Stockton LLP

              
	
                1100
      Peachtree Street, Suite 2800

              
	
                Atlanta,
      GA 30309

              
	
                Attn:
      Hilary P. Jordan

              
	
                Telephone:
      404-815-6362

              
	
                Facsimile:
      404-541-3256

              
	 
      
	
                if to the
      Administrative Agent, at the following address:

              
	 
	
                General
      Electric Capital Corporation

              
	
                10
      Riverview Drive

              
	
                Danbury,
      CT 06810

              
	
                Facsimile:
      203-749-4307

              

      

       

      
        
          
          

        

        
          114

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Attn:  James
      River Account Manager

              
	 
	
                with a copy
      to:

              
	 
	
                Morgan,
      Lewis & Bockius LLP

              
	
                225
      Franklin Street

              
	
                Boston,
      MA  02110

              
	
                Facsimile:
      617-341-7701

              
	
                Attn:  Matthew
      F. Furlong

              
	 
      
	
                if to the Collateral
      Agent, at the following address:

              
	 
	
                General
      Electric Capital Corporation

              
	
                10
      Riverview Drive

              
	
                Danbury,
      CT 06810

              
	
                Facsimile:
      203-749-4307

              
	
                Attn:  James
      River Account Manager

              
	 
      
	
                with a copy
      to:

              
	 
	
                Morgan,
      Lewis & Bockius LLP

              
	
                225
      Franklin Street

              
	
                Boston,
      MA  02110

              
	
                Facsimile:
      617-341-7701

              
	
                Attn:  Matthew
      F. Furlong

              

      

    

    

    or, as to
each party, at such other address as shall be designated by such party in a
written notice to the other party complying as to delivery with the terms of
this 
SECTION
14.01.  All such notices and other communications shall be
effective, (i) if mailed, when received or five (5) days after deposited in
the mails as registered or certified (in each case with return receipt
requested) with postage pre-paid and properly addressed, whichever occurs first,
(ii) if telecopied, when transmitted and confirmation received, (iii) if
emailed, when transmitted and confirmation acknowledged by recipient, or
(iv) if delivered, upon delivery, except that notices to the Administrative
Agent pursuant to 
ARTICLE II shall not
be effective until received by the Administrative Agent.

     

    SECTION
14.02 Amendments, Etc.  No
amendment or waiver of any provision of this Agreement or any other Loan
Document, nor consent to any departure by any Credit Party therefrom, shall in
any event be effective unless the same shall be in writing and signed by the
Borrowers (or the Administrative Borrower) and the Required Lenders (or the
Supermajority Lenders with respect to any amendment or modification to the
definitions of “Eligible Accounts” or Eligible Inventory, in each case, in a
manner that would result in more credit being made available) or the
Administrative Agent at the request of the Required Lenders (or the
Supermajority Lenders, as applicable) and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no
amendment, waiver or consent shall, in each case, without the consent of the
Administrative Agent, the Borrowers and each Lender directly affected
thereby;

     

    
      
        
        

      

      
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    (a) increase
or extend any Commitment of such Lender;

     

    (b) reduce or
forgive the principal of, or interest on, any Loan made by such Lender, or
reduce or forgive any fees or other amounts payable hereunder to such Lender or
release or discharge the Borrowers from their obligations to make such
payments;

     

    (c) postpone
any date fixed for any scheduled payment of principal of, or interest on, any
Loan or any other monetary Obligations owed to such Lender;

     

    (d) other
than as expressly permitted hereunder or in the other Loan Documents, release
(or otherwise limit such Person’s liability with respect to its Obligations) any
Borrower or any Guarantor;

     

    (e) release,
or consent to the Credit Parties disposition of, all or substantially all of the
Collateral, or subordinate the right of the Collateral Agent and the Lenders
with respect to all or substantially all of the Collateral (except as expressly
permitted herein or in the other Loan Documents);

     

    (f) amend,
modify or waive 
SECTION 2.09, 
SECTION 3.03(a), 
SECTION 3.03(b) or 
SECTION 3.03(c), or
this 
SECTION 14.02 or the
definitions of “Pro Rata Share”; or

     

    (g) change
the percentage specified in the definition of Required Lenders or Supermajority
Lenders which shall be required for the Lenders or any of them to take any
action under this Agreement.

     

    Notwithstanding
the foregoing, (i) no amendment, waiver or consent in relation to any provision
of the Loan Documents shall affect the rights, duties or obligations of any
Agent or the L/C Issuer without obtaining the consent of such Agent or L/C
Issuer, as the case may be and (ii) no amendment or modification of the
definitions of Eligible Accounts or Eligible Inventory or Borrowing Base,
including any increase in the percentage advance rates in the definition of
Borrowing Base, which would increase the
availability of credit to the Borrowers hereunder shall be effective without
obtaining the consent of the Supermajority Lenders.

     

    SECTION
14.03 Non-Consenting
Lenders.

     

    
      
        
        

      

      
        116

        
          

        

      

      
        
        

      

    

     

    (a) If, in
connection with any proposed amendment, waiver or consent requiring consent of
“each Lender” or “each Lender affected thereby,” the consent of the Required
Lenders is obtained, but the consent of other necessary Lenders is not obtained
(any such Lender whose consent is necessary but not obtained being referred to
herein as a “Non-Consenting
Lender”), then so long as no Agent is a Non-Consenting Lender and no
Default or Event of Default has occurred and is continuing, the Borrowers may
elect to replace a Non-Consenting Lender as a Lender party to this Agreement,
provided that, concurrently
with such replacement, (a) another bank or other entity that is reasonably
satisfactory
to the Administrative Borrower and reasonably satisfactory to the Administrative
Agent, shall agree, as of such date, to purchase for cash the Loans and other
Obligations due to the Non-Consenting Lender pursuant to an Assignment and
Acceptance and to become a Lender for all purposes under this Agreement and to
assume all obligations of the Non-Consenting Lender to be terminated as of such
date and to comply with the requirements of 
SECTION 14.10, and
(b) the Borrowers shall pay to such Non-Consenting Lender in same day funds
on the day of such replacement (i) all principal, interest, fees and other
amounts then accrued but unpaid to such Non-Consenting Lender by the Borrowers
hereunder to and including the date of termination, including, without
limitation, payments due to such Non-Consenting Lender under 
SECTION 3.04, and
(ii) an amount, if any, equal to the payment which would have been due to
such Lender on the day of such replacement under this 
SECTION 14.03 had the
Loans of such Non-Consenting Lender been prepaid on such date rather than sold
to the replacement Lender, in each case other than the amount of the Applicable
Payment Fee and Applicable Reduction Fee.  Any processing or
recordation fees associated with the transfer of a Non-Consenting Lender’s Loans
shall be for the account of the Borrowers.

     

    (b) Non-Funding Lenders.  The
failure of any Non-Funding Lender to make any Revolving Advance, make any
payment on account of any Letter of Credit or any other payment required by it
hereunder, or to fund any purchase of any participation to be made or funded by
it on the date specified therefor shall not relieve any other Lender (each such
other Lender, an “Other Lender”) of its obligations to make such loan or fund
the purchase of any such participation on such date, but neither the
Administrative Agent nor, other than as expressly set forth herein, any Other
Lender shall be responsible for the failure of any Non-Funding Lender to make a
loan, fund the purchase of a participation or make any other payment required
hereunder.  Notwithstanding anything set forth herein to the contrary,
a Non-Funding Lender shall not have any voting or consent rights under or with
respect to any Loan Document or constitute a “Lender” (or be, or have its Loans
and Commitments, included in the determination of “Required Lenders” or “Lenders
directly affected” pursuant to Section 14.02) for
any voting or consent rights under or with respect to any Loan Document, except
that (x) the Commitment of such Non-Funding Lender may not be increased or
extended without the consent of such Lender and (y) any waiver, amendment or the
modification requiring the consent of all Lenders or each affected Lender that
by its terms affects any Non-Funding Lender more adversely than other affected
Lenders shall require the consent of such Non-Funding
Lender.  Moreover, for the purposes of determining Required Lenders,
the Loans and Commitments held by Non-Funding Lenders shall be excluded from the
total Loans and Commitments outstanding.  At the Administrative
Borrower’s request with the Administrative Agent’s consent and in the
Administrative Agent’s sole discretion, the Administrative Agent (or a Person
reasonably acceptable to the Administrative Agent) shall have the right (but
shall have no obligation) to purchase from any Non-Funding Lender, and each
Non-Funding Lender agrees that it shall, at Administrative Agent’s request, sell
and assign to Administrative Agent (or to such Person), all right, title and
interest of such Non-Funding under the Loan Documents for an amount equal
to the principal balance of all Loans held by such Non-Funding Lender and all
accrued interest and fees with respect thereto through the date of sale, such
purchase and sale to be consummated pursuant to an executed Assignment and
Acceptance.

     

    
      
        
        

      

      
        117

        
          

        

      

      
        
        

      

    

     

    SECTION
14.04 No Waiver; Remedies,
Etc.  No failure on the part of the Lenders or any Agent to
exercise, and no delay in exercising, any right hereunder or under any other
Loan Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any right under any Loan Document preclude any other or further
exercise thereof or the exercise of any other right.  The rights and
remedies of the Lenders and the Agents provided herein and in the other Loan
Documents are cumulative and are in addition to, and not exclusive of, any
rights or remedies provided by law.  The rights of the Lenders and the
Agents under any Loan Document against any party thereto are not conditional or
contingent on any attempt by the Lenders and the Agents to exercise any of their
rights under any other Loan Document against such party or against any other
Person.

     

    SECTION
14.05 Expenses; Taxes; Attorneys’
Fees.  The Borrowers will pay upon demand therefor, all of the
following fees, costs, expenses and other charges (the “Lender
Expenses”):

     

    (a) all
reasonable out-of-pocket fees, costs and expenses incurred by or on behalf of
any Agent, (including attorneys, consultants, advisors and agents retained by
such Agent) and miscellaneous disbursements, examination, and travel, lodging
and meals arising from or relating to or incurred in (i) the negotiation,
preparation, execution, delivery, performance, administration, monitoring,
amendment or termination of this Agreement, the other Loan Documents and all
other documents and agreements relating to the transactions contemplated hereby
or thereby (whether incurred before or after the date of this Agreement) or any
consents, amendments, waivers or other modifications thereof, whether or not
such documents become effective or are given, (ii) the preservation and
protection of any of the Agents’, L/C Issuers’ or Lenders’ rights under this
Agreement or the other Loan Documents, (iii) the filing of any petition,
complaint, answer, motion or other pleading by any Agent, any L/C Issuer or any
Lender, or the taking of any action in respect of the Collateral or other
security, in connection with this Agreement or any other Loan Document,
(iv) the protection, collection, lease, sale, taking possession,
liquidation or release of any Collateral or other security in connection with
this Agreement or any other Loan Document, (v) any attempt to create,
perfect, record, correct, release or enforce any Lien or security interest in
any Collateral or other security in connection with this Agreement or any other
Loan Document, (vi) any attempt to enhance the likelihood of repayment of
the Obligations or to collect any Obligations from any Credit Party, any
Collateral or any other source of repayment, (vii) all collateral audit,
appraisal and valuation fees and charges (including any expenses and allocated
costs of personnel employed by an Agent) and all financial advisor fees and
expenses, and (viii) otherwise in connection with the Lenders’ and L/C
Issuers’ transactions with the Credit Parties or their Subsidiaries, including
fees or charges for photocopying, notarization, couriers and messengers,
telecommunication, public record searches (including tax lien, litigation, and
UCC searches, searches with the patent and trademark office, the copyright
office or any other governmental or central registry), filing, recording,
publication, real estate surveys, title policies and endorsements, environmental
audits, insurance costs and any other out-of-pocket expenses necessary or
desirable to administer the Loan Documents or to create or perfect the liens in
favor of any Agent, L/C Issuer or Lenders or which the Borrowers are required to
pay hereunder,

     

    (b) all
reasonable fees, costs and expenses incurred in obtaining any advice regarding
any Credit Party, Loan Document or transaction contemplated hereby or thereby
from professionals (including, without limitation, the reasonable fees of
attorneys, auditors, accountants, advisors and consultants) for any Agent and,
during the continuance of an Event of Default, a single counsel for all Lenders
and L/C Issuers to the extent that such fees, costs and expenses are not
otherwise recoverable pursuant to any other provision of this Agreement or any
other Loan Document,

     

    
      
        
        

      

      
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    (c) all
liabilities and costs arising from or in connection with the past, present or
future operations of a Credit Party involving any damage to real or personal
Property or natural resources or harm or injury alleged to have resulted from
any Release of Hazardous Materials on, upon or into such Property,

     

    (d) all
Environmental Liabilities and Costs incurred in connection with any Collateral,
the Loan Documents or any Credit Party including any Remedial Action for any
Hazardous Materials present or arising out of the operations of any facility of
a Credit Party,

     

    (e) all
liabilities and costs incurred in connection with any Environmental
Lien,

     

    (f) all
stamp, document, transfer, recording or filing taxes or fees and similar
impositions now or hereafter determined by the Agent to be payable in connection
with this Agreement or any other Loan Document, and any and all present or
future claims, liabilities or losses with respect to or resulting from any
omission to pay or delay in paying any such taxes, fees or
impositions,

     

    (g) all
broker fees if any with respect to any broker retained by a Credit Party or any
Subsidiary of a Credit Party that may become due in the connection with the
transactions contemplated by this Agreement,

     

    (h) during
the continuance of an Event of Default, all amounts expended by the Agents, if
any, to correct a Credit Party’s failure to (i)  make any payments or
deposits with respect to any taxes of any kind or nature to the extent that such
payments or deposits are due and payable prior to delinquency, (ii)  make
any payments or deposits with respect to any other governmental assessment prior
to the time that any Lien may inure against any property of any Credit Party, or
(iii)  make any payments or deposits with respect to any insurance premiums
then due and payable or otherwise comply with 
SECTION 8.03, which
amounts the Administrative Agent or the Collateral Agent, each in its sole
discretion and without prior notice to the Borrowers, may but shall not be
required to make payment of the same or any part thereof, or, in the case of any
failure to comply with 
SECTION 8.03, make
payments to obtain and maintain insurance policies of the type described in 
SECTION
8.03;

     

    (i) all other
costs or expenses required to be paid by a Credit Party or its Subsidiaries
under any of the Loan Documents that are paid, advanced, or incurred by the
Lenders,

     

    (j) charges
paid or incurred by an Agent resulting from the dishonor of checks,

     

    (k) reasonable
expenditures made by any Agent in connection with the custody or preservation of
any of the Collateral or of the Liens in favor of any Agent, including payment
of any amounts to preserve rights of the Credit Parties under any Material
Contracts or other agreements necessary or desirable to maintain the value of
the Collateral,

     

    
      
        
        

      

      
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    (l) reasonable
costs and expenses paid or incurred by any Agent or one or more of the Lenders
or L/C Issuers in enforcing or defending the Loan Documents or in connection
with the transactions contemplated by the Loan Documents or the relationship of
any one or more of the Lenders or L/C Issuers with any Credit Party or any
Subsidiary of a Credit Party, and

     

    (m) each
Agent’s reasonable costs and expenses (including attorneys’, accountants’,
consultants’, and other advisors’ fees and expenses) and reasonable fees, costs
and expenses for one counsel to separately represent the Lenders and the L/C
Issuers, in each case, incurred after the occurrence of any Default or Event of
Default, including in any forbearance, workout or restructuring of the
Obligations, in any bankruptcy or insolvency case or proceeding or in
terminating, enforcing, or defending the Loan Documents, irrespective of whether
suit is brought, or in taking any Remedial Action concerning the
Collateral.

     

    SECTION
14.06 Right of Set-Off, Sharing of
Payments, Etc.

     

    (a) Upon the
occurrence and during the continuance of any Event of Default, and in addition
to (and without limitation of) any right of set-off, banker’s lien or
counterclaim any Agent, any Lender and any L/C Issuer may otherwise have, each
Agent, each Lender and each L/C Issuer may, and is hereby authorized by the
Credit Parties to, at any time and from time to time, without notice to the
Credit Parties (any such notice being expressly waived by the Credit Parties),
to the fullest extent permitted by law, set-off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Person to or for the credit or the
account of the Credit Parties against any and all Obligations now or hereafter
existing under any Loan Document, irrespective of whether or not such Agent,
Lender or L/C Issuer shall have made any demand hereunder or thereunder and
although such obligations may be contingent or unmatured.  During the
continuance of any Event of Default, each Agent, each Lender and each L/C Issuer
may, and are hereby authorized to, at any time and from time to time, without
notice to the Credit Parties (any such notice being expressly waived by the
Credit Parties), to the fullest extent permitted by law, set-off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Person to or for
the credit or the account of the Credit Parties against any and all Obligations
now or hereafter existing under any Loan Document, irrespective of whether or
not such Agent, Lender or L/C Issuer shall have made any demand hereunder or
thereunder.  Each Agent, each Lender and each L/C Issuer agrees to
notify the Administrative Borrower, the Collateral Agent and the Administrative
Agent promptly after any such set-off and application made by such Person, provided that the failure to
give such notice to the Administrative Borrower shall not affect the validity of
such set-off and application.  The rights of the Agents, the Lenders
and the L/C Issuers under this 
SECTION 14.06 are in
addition to other rights and remedies which such Person may have.

     

    (b) Nothing
contained in this 
SECTION 14.06 shall
require any Agent, Lender or L/C Issuer to exercise any such right or shall
affect the right of such Person to exercise, and retain the benefits of
exercising, any such right with respect to any other Indebtedness or Obligation
of the Credit Parties.  If, under any applicable bankruptcy,
insolvency or other similar law, any Agent, Lender or L/C Issuer receives a
secured claim in lieu of a set-off to which this 
SECTION 14.06
applies, such Person shall, to the extent practicable, exercise its rights in
respect of such secured claim in a manner consistent with the rights of the
Agents, Lenders and L/C Issuers entitled under 
SECTION 3.03(b) and
this 
SECTION 14.06 to
share in the benefits of any recovery on such secured claim.

     

    
      
        
        

      

      
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    SECTION
14.07 Severability.  Any
provision of this Agreement, which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions
hereof or affecting the validity or enforceability of such provision in any
other jurisdiction.

     

    SECTION
14.08 Replacement of
Lenders.  If (a) a Lender requests compensation under 
SECTION 3.04, 
SECTION 4.02, or 
SECTION 4.03, or if
the Credit Parties are required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to 
SECTION 3.04, and
such compensation or additional amount is not applicable to the Lenders
generally, or (b) if any Lender defaults in its obligation to fund Loans
hereunder, then in the case of either (a) or (b) of this

SECTION 14.08, the
Credit Parties may, at its sole expense, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in this 
SECTION 14.08), all
its interests, rights and obligations under this Agreement to an assignee that
shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment); provided that,
(i) the Credit Parties shall have received the prior written consent of the
Administrative Agent, which consent shall not unreasonably be withheld, and
(ii) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Credit Parties
(in the case of all other amounts).  A Lender shall not be required to
make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Credit
Parties to require such assignment and delegation cease to
apply.  Notwithstanding the foregoing, with respect to a Lender that
is a Non-Funding Lender or an Impacted Lender, the Borrowers or the
Administrative Agent may obtain a replacement lender and execute an assignment
on behalf of such Non-Funding Lender or an Impacted Lender at any time and
without prior notice to such Non-Funding Lender or an Impacted Lender and cause
its Loans and Commitments to be sold and assigned at par.  Upon any
such assignment and payment and compliance with the other provisions of SECTION 14.10, such
replaced Lender shall no longer constitute a “Lender” for purposes hereof;
provided, any rights of such replaced Lender to indemnification hereunder shall
survive.

     

    SECTION
14.09 Complete Agreement; Sale of
Interest.  The Loan Documents constitute the complete agreement
between the parties with respect to the subject matter hereof and thereof,
supersede any previous agreement or understanding between them relating hereto
or thereto and may not be modified, altered or amended except in accordance with

SECTION
14.02.  The Credit Parties may not sell, assign or transfer any
of the Loan Documents or any portion thereof, including their rights, title,
interests, remedies, powers and duties hereunder or thereunder.  The
Credit Parties hereby consent to any Lender’s sale of participations,
assignment, transfer or other disposition, at any time or times, of any of the
Loan Documents or of any portion thereof or interest therein, including such
Lender’s rights, title, interests, remedies, powers or duties thereunder,
subject, in the case of a participation, assignment, transfer or other
disposition, to the provisions of 
SECTION
14.10.

     

    
      
        
        

      

      
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    SECTION
14.10 Assignment;
Register.

     

    (a) The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby,
except that no Credit Party may assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of each Lender (and
any attempted assignment or transfer by any Credit Party without such consent
shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby and, to the
extent expressly contemplated hereby, the Affiliates of the Administrative
Agent) any legal or equitable right, remedy or claim under or by reason of this
Agreement.

     

    (b) Any
Lender may assign to one or more Eligible Assignees all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Loans at the time owing to it); provided that, (i) except
in the case of an assignment of the entire remaining outstanding amount of the
Loans at the time owing to it (determined as of the date the Assignment and
Acceptance with respect to such assignment is delivered to the Administrative
Agent) or an assignment to an entity described in clause (a), (b) or (c) of the
definition of Eligible Assignee, any such assignment shall not be less than
$1,000,000, unless the Administrative Agent otherwise consents (such consent not
to be unreasonably withheld or delayed), (ii) any assignment by Non-Funding
Lenders shall be subject to the Administrative Agent’s prior written consent in
all instances, (iii) such assignment shall be effective only upon the
acknowledgement in writing of such assignment by the Administrative Agent, and
(iv) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Acceptance and shall pay to the
Administrative Agent a $3500 assignment fee.  Subject to acceptance
and recording thereof by the Administrative Agent pursuant to paragraph (c)
of this 
SECTION 14.10, from
and after the Closing Date specified in each Assignment and Acceptance, the
Eligible Assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of 
SECTION 3.04, 
SECTION 4.02, 
SECTION 4.03 and 
SECTION 14.18 to the
extent any claim thereunder relates to an event arising or such Lender’s status
or activity as Lender prior to such assignment.

     

    (c) Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this 
SECTION 14.10 shall
be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with
paragraph (e) of this 
SECTION
14.10.

     

    
      
        
        

      

      
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    (d) The
Administrative Agent, acting solely for this purpose as an agent of the
Borrowers, shall maintain at the Administrative Agent’s Office a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitment of, and principal
amount of the Loan owing to, each Lender pursuant to the terms hereof from time
to time (the “Register”).  The
entries in the Register shall be conclusive, and the Borrowers, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the
contrary.  The Register shall be available for inspection by any
Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.  The Borrowers may request in writing a copy
of the Register from time to time and the Administrative Agent will promptly
deliver a copy of such Register to the Administrative Borrower promptly
thereafter.

     

    (e) Any
Lender may, without the consent of, or notice to, the Administrative Borrower or
the Administrative Agent, sell participations to one or more banks or other
entities (a “Participant”) in all
or a portion of such Lender’s rights and/or obligations under this Agreement
(including all or a portion of the Loans owing to it); provided that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, and (iii) the Borrowers, the Agents, the
Issuing Bank and the other Lenders shall continue to deal solely and directly
with such Lender in connection with such Lender’s rights and obligations under
this Agreement.  Any agreement or instrument pursuant to which a
Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement, provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in 
SECTION 14.02(a) that
affects such Participant.  Subject to paragraph (f) of this 
SECTION 14.10 the
Borrowers agree that each Participant shall be entitled to the benefits of 
SECTION 3.04, 
SECTION 4.02 and 
SECTION 4.03 to the
same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this 
SECTION
14.10.  To the extent permitted by law, each Participant also
shall be entitled to the benefits of 
SECTION 14.06 as
though it were a Lender, provided such Participant agrees to be subject to 
SECTION 3.03 as
though it were a Lender.

     

    (f) A
Participant shall not be entitled to receive any greater payment under 
SECTION 3.04 or 
ARTICLE IV than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Administrative Borrower’s prior written
consent.  A Participant shall be subject to 
SECTION 14.03 as
though it were a Lender.  A Participant that would be a Non-U.S.
Lender if it were a Lender shall not be entitled to the benefits of 
SECTION 3.04 unless
the Administrative Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrowers, to
comply with 
SECTION 3.04 and 
SECTION 12.14 as
though it were a Lender.

     

    (g) Any
Lender may, without the consent of the Borrowers or the Administrative Agent, at
any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Lender, including,
without limitation, (i) any pledge or assignment to secure obligations to a
Federal Reserve Bank, and (ii) in the case of any Lender that is a Fund,
any pledge or assignment of all or any portion of such Lender’s rights under
this Agreement to any holders of obligations owed, or securities issued, by such
Lender as security for such obligations or securities, or to any trustee for, or
any other representative of, such holders, and this 
SECTION 14.10(g)
shall not apply to any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

     

    
      
        
        

      

      
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    SECTION
14.11 Administrative
Borrower.

     

    (a) Each
Credit Party hereby irrevocably appoints JRCC as the borrowing agent and
attorney-in-fact for all Borrowers (the “Administrative
Borrower”) which appointment shall remain in full force and effect unless
and until Agent shall have received prior written notice signed by each Credit
Party that such appointment has been revoked and that another Borrower has been
appointed Administrative Borrower.

     

    (b) Each
Borrower and each other Credit Party hereby irrevocably appoints and authorizes
the Administrative Borrower (i) to provide the Administrative Agent with all
notices with respect to Advances and Letters of Credit obtained for the benefit
of any Borrower and all other notices and instructions under this Agreement, and
(ii) to take such action as the Administrative Borrower deems appropriate on its
behalf to obtain Revolving Advances and Letters of Credit under this Agreement,
and to exercise such other powers as are reasonably incidental thereto to carry
out the purposes of this Agreement.  It is understood that the
handling of the Loan Account and Collateral of Borrowers and the other Credit
Parties in a combined fashion, as more fully set forth herein, is done solely as
an accommodation to the Borrowers and the other Credit Parties in order to
utilize the collective borrowing powers of Borrowers in the most efficient and
economical manner and at their request, and that none of the Administrative
Agent, the Collateral Agent, any L/C Issuer or any Lender shall incur any
liability to any Borrower or any other Credit Party as a result
hereof.  Each Borrower and each other Credit Party expects to derive
benefit, directly or indirectly, from the handling of the Loan Account and the
Collateral in a combined fashion since the successful operation of each Borrower
the other Credit Parties is dependent on the continued successful performance of
the integrated group.  To induce the Administrative Agent, the
Collateral Agent, the L/C Issuers and the Lenders to do so, and in consideration
thereof, each Borrower and each other Credit Party hereby jointly and severally
agrees to indemnify the Administrative Agent, the Collateral Agent, each L/C
Issuer and each Lender and hold each harmless against any and all liability,
expense, loss or claim of damage or injury, made against any of them by any
Borrower, any other Credit Party or by any third party whosoever, arising from
or incurred by reason of (a) the handling of the Loan Account and Collateral of
Borrowers and the other Credit Parties as provided in this

SECTION 14.11 and (b)
the reliance by the Administrative Agent, the Collateral Agent, any L/C Issuer
or any Lender on any instructions of the Administrative Borrower, except that
Borrowers and the other Credit Parties will have no liability to the relevant
Agent-Related Person or Lender-Related Person under this

SECTION 14.11 with
respect to any liability that has been finally determined by a court of
competent jurisdiction to have resulted solely from the gross negligence or
willful misconduct of such Agent-Related Person or Lender-Related Person, as the
case may be.

     

    SECTION
14.12 Counterparts.  This
Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed to be an
original, but all of which taken together shall constitute one and the same
agreement.  Delivery of an executed counterpart of this Agreement or
any of the other Loan Documents by telecopy shall have the same force and effect
as the delivery of an original executed counterpart of this Agreement or any of
such other Loan Documents.  Any party delivering an executed
counterpart of any such agreement by telecopy shall also deliver an original
executed counterpart, but the failure to do so shall not affect the validity,
enforceability or binding effect of such agreement.

     

    
      
        
        

      

      
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    SECTION
14.13 GOVERNING
LAW.  THIS AGREEMENT, THE NOTES AND, EXCEPT TO THE EXTENT
OTHERWISE PROVIDED THEREIN, THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     

    SECTION
14.14 CONSENT TO JURISDICTION,
SERVICE OF PROCESS AND VENUE.  ANY LEGAL ACTION OR PROCEEDING
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT
EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK IN THE BOROUGH OF MANHATTAN,
COUNTY OF NEW YORK OR OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE
CREDIT PARTIES HEREBY IRREVOCABLY ACCEPT IN RESPECT OF ITS PROPERTY, GENERALLY
AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS.  THE
CREDIT PARTIES FURTHER IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS OUT OF ANY
OF THE AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING
OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE
CREDIT PARTIES AT THEIR ADDRESS FOR NOTICES SET FORTH IN

SECTION 14.01, SUCH
SERVICE TO BECOME EFFECTIVE FIVE (5) DAYS AFTER SUCH MAILING.  NOTHING
HEREIN SHALL AFFECT THE RIGHT OF THE LENDERS OR THE AGENTS TO SERVICE OF PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR
OTHERWISE PROCEED AGAINST THE CREDIT PARTIES IN ANY OTHER
JURISDICTION.  THE CREDIT PARTIES HEREBY EXPRESSLY AND IRREVOCABLY
WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     

    SECTION
14.15 WAIVER OF JURY TRIAL,
ETC.  THE CREDIT PARTIES, THE LENDERS AND THE AGENTS HEREBY
WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
CONCERNING ANY RIGHTS UNDER THIS AGREEMENT, THE NOTES OR OTHER LOAN DOCUMENTS,
OR UNDER ANY AMENDMENT, WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT
DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION THEREWITH, OR
ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH THIS
AGREEMENT, AND AGREE THAT ANY SUCH ACTION, PROCEEDING OR COUNTERCLAIM SHALL BE
TRIED BEFORE A COURT AND NOT BEFORE A JURY.  THE CREDIT PARTIES
CERTIFY THAT NO OFFICER, REPRESENTATIVE, AGENT OR ATTORNEY OF THE LENDERS OR THE
AGENTS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE LENDERS OR THE AGENTS
WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO
ENFORCE THE FOREGOING WAIVERS.  THE CREDIT PARTIES HEREBY ACKNOWLEDGE
THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDERS AND THE AGENTS
ENTERING INTO THIS AGREEMENT.

     

    
      
        
        

      

      
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    SECTION
14.16 Consent.  Except
as otherwise expressly set forth herein or in any other Loan Document to the
contrary, if the consent, approval, satisfaction, determination, judgment,
acceptance or similar action (an “Action”) of the
Lenders, the L/C Issuers or the Agents, shall be permitted or required pursuant
to any provision hereof or any provision of any other agreement to which the
Borrowers or any Guarantors are parties and to which the Lenders, the L/C
Issuers or the Agents have succeeded thereto, such Action shall be required to
be in writing and may be withheld or denied by the Lenders, the L/C Issuers or
the Agents with or without any reason in their discretion.

     

    SECTION
14.17 Interpretation.  Neither
this Agreement nor any uncertainty or ambiguity herein shall be construed or
resolved against the Lenders, the L/C Issuers, the Agents or the Borrower,
whether under any rule of construction or otherwise.  On the contrary,
this Agreement has been reviewed by all parties represented by counsel of their
choosing and shall be construed and interpreted according to the ordinary
meaning of the words used so as to accomplish fairly the purposes and intentions
of all parties hereto.

     

    SECTION
14.18 Reinstatement; Certain
Payments.  If any claim is ever made upon the Lenders, the L/C
Issuers or the Agents for repayment or recovery of any amount or amounts
received by the Lenders, the L/C Issuers or the Agents in payment or received on
account of any of the Obligations, the Lenders, the L/C Issuers or the Agents
shall give prompt notice of such claim to the Administrative Borrower, and if
the Lenders, the L/C Issuers or the Agents repay all or part of such amount by
reason of (a) any judgment, decree or order of any court of competent
jurisdiction or administrative body having jurisdiction over the Lenders, the
L/C Issuers or the Agents or any of their respective property, or
(b) compliance by the Lenders, the L/C Issuers or the Agents with any
requirement of a Governmental Authority having jurisdiction over the Lenders,
the L/C Issuers or the Agents, then and in such event the Credit Parties agree
that (i) any such judgment, decree or order shall be binding upon it
notwithstanding the cancellation of any instrument evidencing the Obligations or
the other Loan Documents or the termination of this Agreement or the other Loan
Documents, and (ii) it shall be and remain liable to the Lenders, the L/C
Issuers or the Agents hereunder for the amount so repaid or recovered to the
same extent as if such amount had never originally been received by the Lenders,
the L/C Issuers or the Agents.

     

    SECTION
14.19 Indemnification.  In
addition to the Credit Parties’ other Obligations under this Agreement, the
Credit Parties agree to defend, protect, indemnify and hold harmless the
Lenders, the L/C Issuers and each of their respective Affiliates and their
officers, directors, trustees, employees, agents and advisors, the
Administrative Agent, the Collateral Agent, the Agent-Related Persons and the
Lender-Related Persons (collectively called the “Indemnitees”) from
and against any and all claims, losses, demands, settlements, damages,
liabilities, obligations, penalties, fines, fees, reasonable costs and expenses
(including, without limitation, reasonable attorneys’ fees, costs and expenses,
but excluding income, franchise and similar taxes of an Indemnitee) incurred by
such Indemnitees (but not taxes, which shall be governed by

SECTION 3.04),
whether prior to or from and after the Closing Date, as a result of or arising
from or relating to or in connection with any of the
following:  (a) the Administrative Agent, the Collateral Agent,
the L/C Issuers or the Lenders 

     

    
      
        
        

      

      
        126

        
          

        

      

      
        
        

      

    

     

    furnishing
of funds to the Credit Parties under this Agreement, including, without
limitation, the management of any such Loans, (b) any matter relating to
the financing transactions contemplated by this Agreement or the other Loan
Documents or by any document executed in connection with the transactions
contemplated by this Agreement or the other Loan Documents, (c) any claim,
litigation, investigation or administrative or judicial proceeding in connection
with any transaction contemplated in, or consummated under, the Loan Documents,
or (d) any claim, litigation, investigation or proceeding relating to any
of the foregoing, whether or not any Indemnitee is a party thereto, including,
without limitation, claims, litigations, investigations or other proceedings
arising out of (i) the presence, disposal, Release of any Hazardous
Materials on, in, at, to, from or under any property at any time owned or
occupied by the Credit Parties (or any of their respective predecessors in
interest or title) or at any facility which received Hazardous Materials
generated by the Credit Parties or any of their respective predecessors in
interest in connection with the receipt of such Hazardous Materials,
(ii) any personal injury (including wrongful death) or property damage
(real or personal) arising out of or related to any Hazardous Materials
generated by the Credit Parties, (iii) any investigation, lawsuit brought
or threatened, settlement reached or government order relating to such Hazardous
Materials, (iv) any violation of any Environmental Law by the Credit
Parties or any of their respective predecessors in interest, and/or (v) any
Environmental Action (collectively, the “Indemnified
Matters”); provided, however, that the
Credit Parties shall not have any obligations to any Indemnitee under this 
SECTION 14.19 for any
Indemnified Matter to the extent resulting from the gross negligence or willful
misconduct of such Indemnitee; provided, however, that no
Credit Party shall be required to reimburse the legal fees and expenses of more
than one outside counsel (in addition to up to one local counsel in each
applicable local jurisdiction) for all Indemnitees under this 
SECTION 14.19 unless
on advice of outside counsel, representation of all such Indemnitees would be
inappropriate due to the existence of an actual or potential conflict of
interest.  Such indemnification for all of the foregoing losses,
damages, fees, costs and expenses of the Indemnitees shall be due and payable
promptly after demand therefor.  To the extent that the undertaking to
indemnify, pay and hold harmless set forth in this 
SECTION 14.19 may be
unenforceable because it is violative of any law or public policy, the Credit
Parties shall contribute the maximum portion which it is permitted to pay and
satisfy under Applicable Law, to the payment and satisfaction of all Indemnified
Matters incurred by the Indemnitees.  This Indemnity shall survive the
repayment of the Obligations and the discharge of the Liens granted under the
Loan Documents.

     

    SECTION
14.20 Records.  The
unpaid principal of, and interest on, the Obligations, the interest rate or
rates applicable to such unpaid principal and interest, the duration of such
applicability, the Commitment, and the accrued and unpaid fees payable pursuant
to 
SECTION 4.04, shall
at all times be ascertained from the records of the Lender, the L/C Issuers and
Agents, which shall be conclusive and binding absent manifest or demonstrable
error.

     

    
      
        
        

      

      
        127

        
          

        

      

      
        
        

      

    

     

    SECTION
14.21 Binding
Effect.  This Agreement shall be binding upon and inure to the
benefit of the Borrower, the Lenders, the L/C Issuers and the Agents, and their
respective successors and assigns, subject to 
SECTION
14.10.

     

    SECTION
14.22 Confidentiality.  The
Lenders, the L/C Issuers the Administrative Agent and the Collateral Agent each
agree (on behalf of itself and each of its Affiliates, directors, officers,
employees and representatives) (each, a “Recipient”) to hold
in confidence and not disclose, in accordance with its customary procedures for
handling confidential information of this nature and in accordance with safe and
sound practices of comparable commercial finance companies, any non-public
information supplied to it by the Credit Parties pursuant to this Agreement or
the other Loan Documents (and which at the time is not, and does not thereafter
become, publicly available or available to such Person from another source not
known to be subject to a confidentiality obligation to such Person not to
disclose such information), or available to such Person from another source not
known to be subject to a confidentiality obligation to such Person not to
disclose such information, provided that nothing
herein shall limit the disclosure of any such information (a) to the extent
required by Applicable Law or other statute, rule, regulation or judicial
process, (b) to any Lender, and Lender-Related Person, any L/C Issuer, any
Agent, any Agent-Related Person or to employees of or counsel, accountants,
auditors and other advisors for any of the foregoing, (it being understood that
the persons to whom such disclosure is made will be informed of the confidential
nature of such information and instructed to keep such information confidential
pursuant to the terms hereof), (c) to any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating to
the Borrowers or any of their Subsidiaries and their obligations so long as such
counterparty or prospective counterparty first agrees in writing to the
confidentiality provisions of this 
SECTION 14.22,
(d) to third-party examiners, auditors, accountants, regulators or members
of any self-regulatory organization for any Agent, L/C Issuer or Lender who are
advised of the confidential nature of such information, (e) to the extent
required by any court, governmental or administrative agency, pursuant to any
subpoena or other legal process, or by any law, statute, regulation or court
order, or in connection with any litigation to which any of the Agents, the L/C
Issuers or the Lenders are party, to cooperate, at the Borrower’s sole cost and
expense, with any protective order sought by the Borrower, (f) to any
assignee or participant (or prospective assignee or participant) and to any
potential successor Agent so long as such assignee or participant (or
prospective assignee or participant) or potential successor Agent first agrees
in writing to the confidentiality provisions of this 
SECTION 14.22,
(g) to any Person that is an investor or prospective investor in a
securitization that agrees that its access to information regarding the Credit
Parties and the Loans is solely for purposes of evaluating an investment in such
securitization, or (h) to a Person that is a trustee, collateral manager,
servicer, noteholder, rating agency or secured party in a securitization in
connection with the administration, servicing and reporting on the assets
serving as collateral for such securitization.

     

    SECTION
14.23 Lender
Advertising.  The Agents and the Lenders shall be entitled to
advertise the closing of the transactions contemplated by this Agreement in such
trade publications, business journals, newspapers of general circulation and
otherwise, as the Agents and the Lenders shall deem appropriate, including,
without limitation, the publication of a tombstone announcing the closing of
this transaction.

     

     

    
      
        
        

      

      
        128

        
          

        

      

      
        
        

      

    

     

    SECTION
14.24 Press
Releases.  The Credit Parties will not issue press releases
describing this Agreement or the transactions represented hereby or conducted
hereunder without the prior written consent of the Administrative
Agent.

     

    SECTION
14.25 Common
Enterprise.  The successful operation and condition of the
Borrowers is dependent on the continued successful performance of the functions
of the group of the Credit Parties as a whole and the successful operation of
each Borrower is dependent on the successful performance and operation of each
other Credit Party.  Each Credit Party expects to derive benefit (and
its board of directors or other governing body has determined that it may
reasonably be expected to derive benefit), directly and indirectly, from
(a) successful operations of each of the other Credit Parties, and
(b) the credit extended by the Agents, the Lenders and the L/C Issuers to
the Borrowers hereunder, both in their separate capacities and as members of the
group of companies.  Each Credit Party has determined that execution,
delivery and performance of this Agreement and any other Loan Documents to be
executed by such Credit Party is within its purpose, will be of direct and
indirect benefit to such Credit Party, and is in its best interest.

     

    SECTION
14.26 USA Patriot
Act.  Each Lender that is subject to the requirements of the
Patriot Act hereby notifies the Borrowers and each other Credit Party that
pursuant to the requirements of the Patriot Act, it is required to obtain,
verify and record information that identifies each Credit Party, which
information includes the name and address of the Credit Party and other
information that will allow such Lender to identify each Credit Party in
accordance with the Patriot Act.

     

    SECTION
14.27 Amendment and Restatement of
Existing Credit Agreement. On the Closing Date,
this Agreement shall amend, restate and supersede the Existing Credit Agreement
in its entirety, except as provided in this SECTION
14.27.  On the Closing Date, the rights and obligations of the
parties evidenced by the Existing Credit Agreement shall be evidenced by this
Agreement and the other Loan Documents and the grant of security interest in the
Collateral by the relevant Credit Parties under the Existing Credit Agreement
and the other “Loan Documents” (as defined in the Existing Credit Agreement)
shall continue under but as amended by this Agreement and the other Loan
Documents, and shall not in any event be terminated, extinguished or annulled
but shall hereafter be governed by this Agreement and the other Loan
Documents.  All references to the Existing Credit Agreement in any
Loan Document or other document or instrument delivered in connection therewith
shall be deemed to refer to this Agreement and the provisions
hereof.  Without limiting the generality of the foregoing and to the
extent necessary, the existing lenders, the Lenders and the Agents reserve all
of their rights under the Existing Credit Agreement and the other “Loan
Documents” (as defined in the Existing Credit Agreement) which by their express
terms survive the termination of the Existing Credit Agreement and each of the
Guarantors hereby obligates itself again in respect of all such present and
future “Guaranteed Obligations” (as defined in the Existing Credit
Agreement).  Nothing contained herein shall be construed as a novation
of the “Obligations” outstanding under and as defined in the Existing Credit
Agreement, which shall remain in full force and effect, except as modified
hereby.

     

    [Signature Page Follows]

     

    
      
        
        

      

      
        129

        
          

        

      

      
        
        

      

    

     

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

    
    

     

    
      	 	
              BORROWERS

              

              JAMES
      RIVER COAL COMPANY

              JAMES
      RIVER COAL SERVICE COMPANY

              LEECO,
      INC.

              TRIAD
      MINING, INC.

              TRIAD
      UNDERGROUND MINING, LLC

              BLEDSOE
      COAL CORPORATION

              JOHNS
      CREEK ELKHORN COAL CORPORATION

              BELL
      COUNTY COAL CORPORATION

              JAMES
      RIVER COAL SALES, INC.

              BLEDSOE
      COAL LEASING COMPANY

              BLUE
      DIAMOND COAL COMPANY

              MCCOY
      ELKHORN COAL CORPORATION

              

              

              By: /s/ Samuel M.
      Hopkins,
      II                                                              

              Name:
      Samuel M. Hopkins, II

              Title:
      Vice President on behalf of each of the above
  entities

            

    

     

     

     

    

     

    Signature
Page to Revolving Credit Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
    

     

    
      	 	
              GUARANTORS

              

              JOHNS
      CREEK PROCESSING COMPANY

              JOHNS
      CREEK COAL COMPANY

              SHAMROCK
      COAL COMPANY, INCORPORATED

              EOLIA
      RESOURCES, INC.

              BDCC
      HOLDING COMPANY, INC.

              

              

              By: /s/ Samuel M.
      Hopkins,
      II                                                         
                                      

              Name:
      Samuel M. Hopkins, II

              Title:
      Vice President on behalf of each of the above
  entities

            

    

     

     

     

     

     

     

    Signature
Page to Revolving Credit Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              ADMINISTRATIVE
      AGENT:

            
	 	 
	 	
              GENERAL
      ELECTRIC CAPITAL CORPORATION

            
	 	 
	 	 
	 	
              By:
      /s/ Daniel T.
      Eubanks                                                                           

            
	 	
              Name:
      Daniel T. Eubanks

            
	 	
              Title:
      Duly Authorized Signatory

            
	 	 
	 	 
	 	
              LENDERS:

            
	 	 
	 	
              GENERAL
      ELECTRIC CAPITAL CORPORATION

            
	 	 
	 	 
	 	
              By:
      /s/ Daniel T.
      Eubanks                                                                           

            
	 	
              Name:
      Daniel T. Eubanks

            
	 	
              Title:
      Duly Authorized Signatory

            
	 	 
	 	 
	 	
              GE
      CAPITAL COMMERCIAL INC.

            
	 	 
	 	 
	 	
              By:
      /s/ Karl
      Kieffer                                                                           

            
	 	
              Name:
      Karl Kieffer

            
	 	
              Title:
      Duly Authorized Signatory

            
	 	 
	 	 
	 	
              UBS
      LOAN FINANCE LLC

            
	 	 
	 	 
	 	
              By:
      /s/ Tina R.
      Osta                                                                           

            
	 	
              Name:
      Tina R. Osta

            
	 	
              Title:
      Associate Director Banking Products Services, US

            
	 	 
	 	 
	 	
              By:
      /s/ Marie
      Haddad                                                                           

            
	 	
              Name:
      Marie A. Haddad

            
	 	
              Title:
      Associate Director Banking Products Services,
US

            

    

     

     

    Signature
Page to Revolving Credit Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	 	
              L/C
      ISSUER:

            
	 	 
	 	
              UBS
      AG, STAMFORD BRANCH

            
	 	 
	 	 
	 	
              By:
      /s/ Tina R.
      Osta                                                                           

            
	 	
              Name:
      Tina R. Osta

            
	 	
              Title:
      Associate Director Banking Products Services, US

            
	 	 
	 	 
	 	
              By:
      /s/ Marie
      Haddad                                                                           

            
	 	
              Name:
      Marie A. Haddad

            
	 	
              Title:
      Associate Director Banking Products Services,
US

            

    

     

     

     

     

     

    Signature
Page to Revolving Credit Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      

      Schedule
E-1

      Existing
Debt

       

      Indebtedness
under the Senior Notes.

       

      Indebtedness
under the Senior Convertible Notes.

       

      

       

       

       

       

       

       

       

       

       

       

       

      

      
        
          
            
              Schedule
E-1 to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
M-1

      Material Contracts

       

       

      
        	
                (1)

              	
                Agreement
      for the Purchase and Sale of Coal, dated May 15, 2008, among Georgia Power
      Company, James River Coal Company and James River Coal Sales,
      Inc.

              

      

       

      
        	
                (2)

              	
                Agreement
      for the Purchase and Sale of Coal, dated March 1, 2004, among South
      Carolina Public Service Authority, James River Coal Company and James
      River Coal Sales, Inc.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Confirmation
      Letter, dated October 17, 2006.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                First
      Amendment, dated October 11, 2007.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Second
      Amendment, dated August 11, 2008.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Letter
      Agreement, dated April 7, 2009.

              

      

       

      
        	
                (3)

              	
                Coal
      Supply Agreement with Hoosier Energy Rural Electric Cooperative, Inc.,
      dated March 26, 2004.

              

      

       

      
        	
                (4)

              	
                Coal
      Supply Agreement with Indianapolis Power & Light Company, dated July
      1, 2007.

              

      

       

      
        	
                (5)

              	
                Coal
      Supply Agreement with Indianapolis Power & Light Company, dated
      September 23, 2009.

              

      

       

      
        	
                (6)

              	
                Coal
      Purchase Agreement with ALCOA Power Generating, Inc., dated January 1,
      2008.

              

      

       

      
        	
                (7)

              	
                Coal
      Supply Purchase Agreement with Richmond Power and Light, dated January 1,
      2007.

              

      

       

      
        	
                (8)

              	
                Indenture,
      dated as of May 31, 2005, between James River Coal Company and U.S. Bank
      National Association, as Trustee, for 9.375% Senior Notes due
      2012.

              

      

       

      
        	
                (9)

              	
                Indenture,
      dated as of November 20, 2009, between James River Coal Company and U.S.
      Bank National Association, as Trustee, for 4.50% Convertible Senior Notes
      Due 2015.

              

      

       

       

      
 

      
        
          
            
              Schedule M-1
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
P-2

      Permitted
Indebtedness

       

      Indebtedness
under the Senior Notes.

       

      

       

      

       

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      

      
        
          
            
              Schedule
P-2 to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      SCHEDULE
2.01(a)

      

      Lender
Commitments

      

      
        	
                Lender

              	
                Commitment

              
	
                General
      Electric Capital Corporation

              	
                $35,000,000

              
	
                GE
      Capital Commercial Inc.

              	
                $10,000,000

              
	
                UBS
      Loan Finance LLC

              	
                $20,000,000

              
	 
      	 
      
	
                Total:

              	
                $65,000,000

              

      

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
          
            
              Schedule
2.01(a) to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(e)

      Capitalization

       

      Capital
Stock of Credit Parties other than JRCC

      as
of December 31, 2009

       

      
        	
                Credit
      Party

              	
                Jurisdiction

                of

                Incorporation
      (Formation)

              	
                Authorized

                Shares

              	
                Shares

                Outstanding

              	
                Beneficial

                and Record
      Owner

              	
                %
      Owned

                Directly or
      Indirectly

                by
      Borrower

              
	
                BDCC
      Holding Company, Inc.

              	
                Delaware

              	
                1,000

              	
                100

              	
                James
      River Coal Company

              	
                100%

              
	
                Bell
      County Coal Corporation

              	
                Delaware

              	
                1,000

              	
                1,000

              	
                James
      River Coal Company

              	
                100%

              
	
                Bledsoe
      Coal Corporation

              	
                Kentucky

              	
                1,000

              	
                100

              	
                James
      River Coal Company

              	
                100%

              
	
                Bledsoe
      Coal Leasing Company

              	
                Delaware

              	
                10,000

              	
                100

              	
                James
      River Coal Service Company

              	
                100%

              
	
                Blue
      Diamond Coal Company

              	
                Delaware

              	
                1,000

              	
                100

              	
                James
      River Coal Company

              	
                100%

              
	
                Eolia
      Resources, Inc.

              	
                North
      Carolina

              	
                10,000

              	
                2,500

              	
                BDCC
      Holding Company, Inc.

              	
                100%

              
	
                James
      River Coal Sales, Inc.

              	
                Delaware

              	
                100

              	
                100

              	
                James
      River Coal Company

              	
                100%

              
	
                James
      River Coal Service Company

              	
                Kentucky

              	
                1,000

              	
                200

              	
                James
      River Coal Company

              	
                100%

              
	
                Johns
      Creek Coal Company

              	
                Tennessee

              	
                20,000

              	
                1,000

              	
                Johns
      Creek Elkhorn Coal Corporation

              	
                100%

              
	
                Johns
      Creek Elkhorn Coal Corporation

              	
                Delaware

              	
                1,000

              	
                600

              	
                James
      River Coal Company

              	
                100%

              
	
                Johns
      Creek Processing Company

              	
                Delaware

              	
                1,000

              	
                100

              	
                McCoy
      Elkhorn Coal Corporation

              	
                100%

              
	
                Leeco,
      Inc.

              	
                Kentucky

              	
                1,000

              	
                300

              	
                James
      River Coal Company

              	
                100%

              

      

      

      
        
          
            
              Schedule 6.01(e)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      

      
        	
                Credit
      Party

              	
                Jurisdiction

                of

                Incorporation
      (Formation)

              	
                Authorized

                Shares

              	
                Shares

                Outstanding

              	
                Beneficial

                and Record
      Owner

              	
                %
      Owned

                Directly or
      Indirectly

                by
      Borrower

              
	
                McCoy
      Elkhorn Coal Corporation

              	
                Kentucky

              	
                30,000

              	
                29,609

              	
                Johns
      Creek Elkhorn Coal Corporation

              	
                100%

              
	
                Shamrock
      Coal Company Incorporated

              	
                Delaware

              	
                1,000

              	
                1,000

              	
                Bledsoe
      Coal Corporation

              	
                100%

              
	
                Triad
      Mining, Inc.

              	
                Indiana

              	
                1,000

              	
                411.31

              	
                James
      River Coal Company

              	
                100%

              
	
                Triad
      Underground Mining, LLC

              	
                Indiana

              	
                N/A

              	
                N/A

              	
                Triad
      Mining, Inc.

              	
                100%

              

      

      

       

       

       

      Capital
Stock of JRCC

      as
of December 31, 2009

       

      
        	
                Companies

              	
                Jurisdiction of
      Incorporation

              	
                Authorized
      Shares

              	
                Shares
      Outstanding

              
	
                James
      River Coal Company

              	
                Virginia

              	
                Common:  100,000,000

              	
                Common:
      27,544,878

              
	
                Preferred:   10,000,000

              	
                Preferred:                0

              

      

      

       

      
        	
                 
      

              	
                Notes

              

      

       

      Notes
issued under the Indenture, dated as of November 20, 2009, between James River
Coal Company and U.S. Bank National Association, as Trustee, for 4.50%
Convertible Senior Notes Due 2015.

       

      

      
        
          
            
              Schedule 6.01(e)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(f)

      Litigation

       

      None.

       

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      

      
        
          
            
              Schedule 6.01(f)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(i)

      Employee Benefit
Plans

       

      None.

       

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
          
            
              Schedule 6.01(i)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(n)(i)

      Real Estate
Assets

       

      (1)           Those
Real Estate Assets listed on Exhibits A-1 through A-13 of Schedule M-2 to this
Agreement.

       

      (2)           With
respect to Indiana properties only, those Real Estate Assets listed as fee owned
property on Schedule M-2 to the Revolving Credit Agreement dated February 26,
2007, excluding those properties listed on Exhibit A-14 of Schedule M-2 to this
Agreement.

       

      

       

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
          
            
              Schedule 6.01(n)(i)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(n)(ii)

      Mines

       

      The
record owner of each mine is listed in the applicable exhibit of Schedule M-2
with respect to the county or counties in which such mine is
located.

       

      
        	
                Mine
      Name

              	
                Operating
      Company

              	
                Location

              
	
                Mine
      #68

              	
                Leeco,
      Inc.

              	
                Buckeye
      Creek, Perry County, KY

              
	
                Mine
      #78

              	
                Leeco,
      Inc.

              	
                Carr
      Creek, Perry & Letcher Counties, KY

              
	
                Buckeye
      Surface

              	
                Leeco,
      Inc.

              	
                Buckeye
      Creek, Perry County, KY

              
	
                Montgomery
      Creek

              	
                Leeco,
      Inc.

              	
                Montgomery
      Creek, Letcher County, KY

              
	
                Mine
      #74

              	
                Blue
      Diamond Coal Company

              	
                Beech
      Fork of Leatherwood Creek, Perry County, KY

              
	
                Mine
      #75

              	
                Blue
      Diamond Coal Company

              	
                Beech
      Fork of Leatherwood Creek, Perry County, KY

              
	
                Mine
      #77

              	
                Blue
      Diamond Coal Company

              	
                Stoney
      Fork of Leatherwood Creek, Perry County, KY

              
	
                Mine
      #81

              	
                Blue
      Diamond Coal Company

              	
                Polls
      Creek, Perry County, KY

              
	
                Bear
      Branch

              	
                Blue
      Diamond Coal Company

              	
                Middle
      Fork of Kentucky River, Perry County, KY

              
	
                Hog
      Trough

              	
                Blue
      Diamond Coal Company

              	
                Beech
      Fork, Perry County, KY

              
	
                Abner
      Branch

              	
                Bledsoe
      Coal Corporation

              	
                Greasy
      Creek, Leslie County, KY

              
	
                Tan
      Trough

              	
                Bledsoe
      Coal Corporation

              	
                Greasy
      Creek, Leslie County, KY

              
	
                Shamrock

              	
                Bledsoe
      Coal Corporation

              	
                Beech
      Fork, Leslie County, KY

              
	
                Beech
      Fork

              	
                Bledsoe
      Coal Corporation

              	
                Peters
      Branch of Beech Fork, Leslie County, KY

              
	
                Gabes
      Creek Strip

              	
                Bledsoe
      Coal Corporation

              	
                Gabes
      Creek of Greasy  Creek, Harlan County, KY

              
	
                Lewis
      Creek Strip

              	
                Bledsoe
      Coal Corporation

              	
                Lewis
      Creek of Greasy Creek, Leslie County, KY

              
	
                Mine
      #80

              	
                Bledsoe
      Coal Corporation

              	
                Oldhouse
      Branch of Beech Fork Creek, Leslie County, KY

              
	
                Mine
      #15

              	
                McCoy
      Elkhorn Coal Corporation

              	
                Johns
      Creek, Pike County, KY

              
	
                Mine
      #15A

              	
                McCoy
      Elkhorn Coal Corporation (Contractor-Idle)

              	
                Johns
      Creek, Pike County, KY

              
	
                Mine
      #16

              	
                McCoy
      Elkhorn Coal Corporation

              	
                Johns
      Creek, Pike County, KY

              
	
                Mine
      #23

              	
                McCoy
      Elkhorn Coal Corporation

              	
                Harmons
      Branch of Levisa Fork, Pike County, KY

              
	
                Mine
      #12

              	
                McCoy
      Elkhorn Coal Corporation

              	
                Long
      Fork of Johns Creek, Pike County,
KY

              

      

      

      
        
          
            
              Schedule 6.01(n)(ii)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      

      
        	
                Mine
      Name

              	
                Operating
      Company

              	
                Location

              
	
                Mine
      #29

              	
                McCoy
      Elkhorn Coal Corporation (Contractor-Idle)

              	
                Meat
      House of Johns Creek, Pike County, KY

              
	
                Lick
      Branch Surface

              	
                McCoy
      Elkhorn Coal Corporation

              	
                Johns
      Creek, Pike County, KY

              
	
                Coal
      Creek

              	
                Bell
      County Coal Corporation

              	
                Coal
      Creek, Bell County, KY

              
	
                Garmeda

              	
                Bell
      County Coal Corporation

              	
                Stoney
      Fork, Bell County, KY

              
	
                Jellico

              	
                Bell
      County Coal Corporation

              	
                Yellow
      Creek, Bell County, KY

              
	
                Augusta

              	
                Triad
      Mining, Inc.

              	
                Pike
      County, Indiana

              
	
                Freelandville

              	
                Triad
      Mining, Inc.

              	
                Knox
      County, Indiana

              
	
                Freelandville
      East

              	
                Triad
      Mining, Inc.

              	
                Knox
      County, Indiana

              
	
                Freelandville
      Underground

              	
                Triad
      Mining, Inc.

              	
                Knox
      County, Indiana

              
	
                Hurricane
      Creek

              	
                Triad
      Mining, Inc.

              	
                Pike
      County, Indiana

              
	
                Log
      Creek

              	
                Triad
      Mining, Inc.

              	
                Pike,
      Warrick & Gibson Counties,
Indiana

              

      

      

      
        
          
            
              Schedule 6.01(n)(ii)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(n)(iii)

      Leases

       

      (A)
Mining Leases

       

      All those
Leases set forth on Exhibits B-1 through B-13 to Schedule M-2 of this Agreement
are Mining Leases and, with respect to Indiana properties only, those Leases
listed on Schedule M-2 to the Revolving Credit Agreement dated February 26,
2007.

       

      (B)
Prep Plant Leases

       

      Those
Leases set forth on Exhibit B-1 through B-13 to Schedule M-2 of this Agreement
for which the Mortgaged Properties designated as having Prep Plants are
identified.

       

      (C)
Other Leases

       

      (1)           Richmond,
VA office lease: Lease to Premises, dated January 4, 1999, by and
between Boston Properties Limited Partnership and James River Coal
Company.

       

      (2)           London,
KY office lease: Lease Agreement, dated March 1, 2007, by and between WMK Summit
Square One Office Building Properties, LLC and James River Coal
Company.

       

      (3)           Lexington,
KY office lease: Sublease Agreement, dated August 16, 2004, by and
between Dealers’ Financial Service, LLC and James River Coal
Company.

       

      

      

       

      

      
        
          
            
              Schedule 6.01(n)(iii)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(p)

      Environmental
Matters

       

      None.

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      

      
        
          
            
              Schedule 6.01(p)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(r)

      Coal Supply
Agreements

       

      James
River Coal Company Term Coal Supply Agreements

       

      
        	
                (1)

              	
                Agreement
      for the Purchase and Sale of Coal, dated May 15, 2008, among Georgia Power
      Company, James River Coal Company and James River Coal Sales,
      Inc.

              

      

       

      
        	
                (2)

              	
                Agreement
      for the Purchase and Sale of Coal, dated March 1, 2004, among South
      Carolina Public Service Authority, James River Coal Company and James
      River Coal Sales, Inc.

              

      

       

      
        	
                 
      

              	
                (e)

              	
                Confirmation
      Letter, dated October 17, 2006.

              

      

       

      
        	
                 
      

              	
                (f)

              	
                First
      Amendment, dated October 11, 2007.

              

      

       

      
        	
                 
      

              	
                (g)

              	
                Second
      Amendment, dated August 11, 2008.

              

      

       

      
        	
                 
      

              	
                (h)

              	
                Letter
      Agreement dated, April 7, 2009.

              

      

       

      Triad
Mining, Inc. Coal Supply Agreements

       

      
        
          	
                  (1)

                	
                  Coal
      Supply Agreement with Hoosier Energy Rural Electric Cooperative, Inc.,
      dated March 26, 2004.

                

        

      

       

      
        
          	
                  (2)

                	
                  Coal
      Supply Agreement with Indianapolis Power & Light Company, dated July
      1, 2007.

                

        

      

       

      
        
          	
                  (3)

                	
                  Coal
      Supply Agreement with Indianapolis Power & Light Company, dated
      September 23, 2009.

                

        

      

       

      
        
          	
                  (4)

                	
                  Coal
      Purchase Agreement with ALCOA Power Generating, Inc., dated January 1,
      2008.

                

        

      

       

      
        
          	
                  (5)

                	
                  Coal
      Supply Purchase Agreement with Richmond Power and Light, dated January 1,
      2007.

                

        

      

       

      
        	
                (6) 

              	
                Coal
      Supply Purchase Agreement with Richmond Power and Light, dated January 1,
      2010.

              

      

       

      

       

      

       

      

      
        
          
            
              Schedule 6.1(r)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(w)

      Intellectual
Property

       

      Trademarks:

       

      1.           JAMES
RIVER COAL COMPANY, Trademark No. 78664299 – Filed on July 6, 2005

       

      2.           BONNY
BLUE, Trademark No. 71210339 – Filed on March 2, 1925

       

      Patents:

       

      1.           US
PATENT 4022286, App. No. 05/610,560 – Application filed September 5,
1975

       

      Copyrights:

       

      None.

       

      Trademark
Licenses:

       

      None.

       

      Patent
Licenses:

       

      None.

       

      Copyright
Licenses:

       

      None.

       

      Licensed
Material:

       

      In
addition to licenses for software which is generally available to the public the
Borrower licenses the following software applications from the providers set
forth below:

      
      

       

      
        	1.  	Assist Cornerstone
      Ltd.:  	
                Accounts
      Payable

                Purchase
      Order

                Inventory

                General
      Ledger

              
	 	 	 
	2. 	The Systems
      Specialists, Inc.: 	
                Payroll

                Human
      Resources

                Fixed
      Assets

                General
      Ledger

                Accounts
      Receivable

                Land
      Management

              

      

       

       

      
      

      

       

      

      
        
          
            
              Schedule 6.01(w)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Schedule
6.01(bb)—Commercial Tort Claims

       

      None

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
          
            
              Schedule 6.01(bb)
to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Final
Version

       

      SCHEDULE
8.21

      

      Post Closing
Matters

      

      (a)        
Mortgages.  As
soon as practicable, but in any event no later than February 28, 2010 (or such
later date as agreed to by the Collateral Agent in its reasonable discretion),
the Collateral Agent shall have received (i) a duly executed and effective
Mortgage, in form and substance satisfactory to the Collateral Agent, with
respect to each Mortgaged Property of the Credit Parties, (ii) a duly executed
and effective amendment, in form and substance satisfactory to the Collateral
Agent, with respect to each Mortgage existing as of the Closing Date, (iii)
evidence, reasonably satisfactory to the Collateral Agent, that all recording or
filing charges, taxes, fees and expenses due in connection with the recordation
and filing of each such Mortgage and any amendment thereto have been paid by the
Credit Parties, and (iv) such mortgagee title policies, surveys, environmental
assessment reports, assignments of leases, rents, estoppel letters, attornment
agreements, consents, waivers and releases as the Collateral Agent may require
with respect to the Mortgage Properties.

       

      (b)        
Local UCC
Financing Statements.  As soon as practicable, but in any event
no later than February 28, 2010 (or such later date as agreed to by the
Collateral Agent in its reasonable discretion), the Collateral Agent shall have
received evidence, reasonably satisfactory to the Collateral Agent, that (i) all
local UCC financing statements and amendments to existing local UCC financing
statements necessary to ensure that the Collateral Agent has a valid, perfected,
first-priority Lien on all Collateral (including, without limitation Collateral
consisting of as-extracted collateral of the Credit Parties) have been filed and
are effective and (ii) that all recording or filing charges, taxes, fees and
expenses due in connection with the recordation and filing of each such UCC
financing statements and amendments to such existing local UCC financing
statements have been paid by the Credit Parties.

       

      (c)        
Legal Opinions.  As soon as practicable, but in any event no
later than February 28, 2010 (or such later date as agreed to by the Agents in
their reasonable discretion), the Agents shall have received such written
opinions of counsel to the Credit Parties, in form and substance satisfactory to
the Agents, relating to the Mortgages, amendments to the existing Mortgages and
local UCC financing statements (including existing local financing statements)
and addressing such matters as the Agents may reasonably request.

       

      (d)        
Material
Contracts.  As soon as practicable, but in any event no later
than February 28, 2010 (or such later date as agreed to by the Agents in their
reasonable discretion), the Agents shall have received true, complete and
correct copies of each Material Contract set forth on Schedule M-1.

       

      (e)        
Schedule
M-2.  As soon as practicable, but in any event no later than
February 28, 2010 (or such later date as agreed to by the Agents in their
reasonable discretion), the Agents shall have received a revised Schedule M-2,
which shall be in form and substance satisfactory to the Agents, to be attached
to this Agreement.  Upon the acceptance of such Schedule M-2 by the
Agents, Schedule M-2 attached to this Agreement on the Closing Date shall be,
automatically and without any further action by the Credit Parties and the
Lender, amended and restated in its entirety by such revised Schedule
M-2.

       

      

      
        
          
            
              Schedule
8.21 to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      

      (f)        
Termination of
PNC Financing Statements.  As soon as practicable, but in any
event no later than February 28, 2010 (or such later date as agreed to by the
Collateral Agent in its reasonable discretion), the Collateral Agent shall have
received evidence, reasonably satisfactory to the Collateral Agent, that all UCC
financing statements filed by PNC Bank, National Association as secured party
and listing any Credit Party as debtor, as of the Closing Date, shall have been
terminated.

       

      (g)        
Termination of
First Union National Bank Financing Statements.  As soon as
practicable, but in any event no later than February 28, 2010 (or such later
date as agreed to by the Collateral Agent in its reasonable discretion), the
Collateral Agent shall have received evidence, reasonably satisfactory to the
Collateral Agent, that all UCC financing statements filed by First Union
National Bank, as secured party and listing any Credit Party as debtor, as of
the Closing Date, shall have been terminated.

       

      (h)        
Termination of
Community Trust Bank Inc. Financing Statements.  As soon as
practicable, but in any event no later than February 28, 2010 (or such later
date as agreed to by the Collateral Agent in its reasonable discretion), the
Collateral Agent shall have received evidence, reasonably satisfactory to the
Collateral Agent, that all UCC financing statements filed by Community Trust
Bank Inc., as secured party and listing any Credit Party as debtor, as of the
Closing Date, shall have been terminated.

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      

      
        
          
            
              Schedule
8.21 to Amended and Restated Revolving Credit Agreement

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

 

    

    ANNEX
A

     

    to

     

    CREDIT
AGREEMENT

     

    LETTERS OF
CREDIT

     

    (a) Conditions.  On
the terms and subject to the conditions contained in the Agreement and this
Annex A,
Borrower Representative may request that one or more L/C Issuers Issue, in
accordance with such L/C Issuers’ usual and customary business practices and for
the account of the Borrowers, Letters of Credit (denominated in Dollars) from
time to time on any Business Day during the period from the Closing Date through
the earlier of (x) the Maturity Date and (y) seven (7) days prior to the date
specified in clause
(a) of the definition of Maturity Date, and each L/C Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this paragraph (f) below,
to Issue Letters of Credit for the account of the Borrowers; provided, however, that no L/C
Issuer shall Issue any Letter of Credit upon the occurrence of any of the
following or, if after giving effect to such Issuance:

     

    (i) the
aggregate amount of all Letter of Credit Usage shall exceed the least of (i)
Sixty-Five Million Dollars ($65,000,000) (the “L/C Sublimit”),
(ii) the Maximum Amount less the outstanding Revolving Advances at such
time, or (iii) the Borrowing Base less the outstanding Revolving Advances
at such time;

     

    (ii) the
expiration date of such Letter of Credit (A) is not a Business Day, (B) is more
than one year after the date of issuance thereof or (C) is later than seven (7)
days prior to the date specified in clause (a) of the
definition of Maturity Date; provided, however, that any
Letter of Credit with a term not exceeding one year may provide for its renewal
for additional periods not exceeding one year as long as (x) each Borrower and
such L/C Issuer have the option to prevent such renewal before the expiration of
such term or any such period and (y) neither such L/C Issuer nor any Borrower
shall permit any such renewal to extend such expiration date beyond the date set
forth in clause
(C) above; or

     

    (iii) (A) any
fee due in connection with, and on or prior to, such Issuance has not been paid,
(B) such Letter of Credit is requested to be issued in a form that is not
acceptable to such L/C Issuer or (C) such L/C Issuer shall not have received,
each in form and substance reasonably acceptable to it and duly executed by the
Credit Parties or
the Borrower Representative on their behalf, the documents that such L/C Issuer
generally uses in the ordinary course of business for the Issuance of letters of
credit of the type of such Letter of Credit (collectively, the “L/C Reimbursement
Agreement”).

     

    Furthermore,
GE Capital, if it shall be an L/C Issuer hereunder, may elect only to issue
Letters of Credit in its own name and may only issue Letters of Credit to the
extent permitted by Requirements of Law, and such Letters of Credit may not be
accepted by certain beneficiaries such as insurance companies.  For
each Issuance, the applicable L/C Issuer may, but shall not be required to,
determine that, or take notice whether, the conditions precedent set forth in
the Agreement and this Annex A have been
satisfied or waived in connection with the Issuance of any Letter of Credit;
provided, however, that no
Letter of Credit shall be Issued during the period starting on the first
Business Day after the receipt by such L/C Issuer of notice from Administrative
Agent or the Required Lenders that any condition precedent contained in SECTION 5.02 is not
satisfied and ending on the date all such conditions are satisfied or duly
waived.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    If (i)
any Lender is a Non-Funding Lender or the Administrative Agent determines that
any of the Lenders is an Impacted Lender and (ii) the reallocation of that
Non-Funding Lender’s or Impacted Lender’s Letter of Credit Usage to the other
Lenders would reasonably be expected to cause the Letter of Credit Usage and
Loans of any Lender to exceed its Commitment, taking into account the amount of
outstanding Loans and expected advances of Loans as determined by the
Administrative Agent, then no Letters of Credit may be issued or renewed unless
the Non-Funding Lender or Impacted Lender has been replaced, the Letter of
Credit Usage of that Non-Funding Lender or Impacted Lender have been cash
collateralized, or the Commitments of the other Lenders have been increased by
an amount sufficient to satisfy the Administrative Agent that all future Letter
of Credit Usage will be covered by all Lenders who are not Non-Funding Lenders
or Impacted Lenders.

     

    (b) Notice of
Issuance.  The Borrower Representative shall give the relevant
L/C Issuer and the Administrative Agent a notice of any requested Issuance of
any Letter of Credit, which shall be effective only if received by such L/C
Issuer and the Administrative Agent not later than 11:00 a.m. on the third
Business Day prior to the date of such requested Issuance.  Such
notice shall be made in writing or electronic transmission acceptable to such
L/C Issuer (each such request, an “L/C
Request”).

     

    (c) Reporting Obligations of L/C
Issuers.  Each L/C Issuer agrees to provide the Administrative
Agent, in form and substance satisfactory to the Administrative Agent, each of
the following on the following dates: (A) (i) on or prior to any Issuance of any
Letter of Credit by such L/C Issuer, (ii) immediately after any drawing under
any such Letter of Credit or (iii) immediately after any payment (or failure to
pay when due) by the Borrowers of any related L/C Reimbursement Obligation,
notice thereof, which shall contain a reasonably detailed description of such
Issuance, drawing or payment, and the Administrative Agent shall provide copies
of such notices to each Lender reasonably promptly after receipt thereof; (B)
upon the request of the Administrative Agent (or any Lender through the
Administrative Agent), copies of any Letter of Credit Issued by such L/C Issuer
and any related L/C Reimbursement Agreement and such other documents and
information as may reasonably be requested by the Administrative Agent; and (C)
on the first Business Day of each calendar week, a schedule of the Letters of
Credit Issued by such L/C Issuer, in form and substance reasonably satisfactory
to the Administrative Agent, setting forth the Letter of Credit Usage for such
Letters of Credit outstanding on the last Business Day of the previous calendar
week.

     

    (d) Acquisition of
Participations.  Upon any Issuance of a Letter of Credit in
accordance with the terms of the Agreement and this Annex A resulting in
any increase in the Letter of Credit Usage, each Lender shall be deemed to have
acquired, without recourse or warranty, an undivided interest and participation
in such Letter of Credit and the related Letter of Credit Usage in an amount
equal to its Pro Rata Share of such Letter of Credit Usage.

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    (e) Reimbursement Obligations of
the Borrowers.  The Borrowers agree to pay to the L/C Issuer of
any Letter of Credit each L/C Reimbursement Obligation owing with respect to
such Letter of Credit no later than the first Business Day after the Borrowers
or the Borrower Representative receive notice from such L/C Issuer that payment
has been made under such Letter of Credit or that such L/C Reimbursement
Obligation is otherwise due (the “L/C Reimbursement
Date”) with interest thereon computed as set forth in clause (A)
below.  In the event that any L/C Issuer incurs any L/C Reimbursement
Obligation which is not repaid by the Borrowers as provided in this clause (v) (or any
such payment by the Borrowers is rescinded or set aside for any reason), such
L/C Issuer shall promptly notify the Administrative Agent of such failure (and,
upon receipt of such notice, the Administrative Agent shall notify each Lender)
and, irrespective of whether such notice is given, such L/C Reimbursement
Obligation shall be payable on demand by the Borrowers with interest thereon
computed (A) from the date on which such L/C Reimbursement Obligation arose to
the L/C Reimbursement Date, at the interest rate applicable during such period
to Loans that are Base Rate Loans and (B) thereafter until payment in full, at
the interest rate applicable during such period to past due Loans that are Base
Rate Loans.

     

    (f) Reimbursement Obligations of
the Lenders.  If no Lender is a Non-Funding Lender (or if the
only Non-Funding Lender is the L/C Issuer that issued such Letter of Credit),
upon receipt of the notice described in paragraph (e) above
from the Administrative Agent, each Lender shall pay to the Administrative Agent
for the account of such L/C Issuer its Pro Rata Share of such Letter of Credit
Usage.  If any Lender (other than the Lender that is the L/C Issuer
that issued such Letter of Credit) is a Non-Funding Lender, that Non-Funding
Lender’s Letter of Credit Usage shall be reallocated to and assumed by the other
Lenders pro rata in accordance with their Pro Rata Share of the Loan (calculated
as if the Non-Funding Lender’s Pro Rata Share was reduced to zero and each other
Lender’s Pro Rata Share had been increased proportionately).  If any
Lender (other than the Lender that is the L/C Issuer that issued such Letter of
Credit) is a Non-Funding Lender, upon receipt of the notice described in paragraph (e) above
from the Administrative Agent, each Lender that is not a Non-Funding Lender
shall pay to the Administrative Agent for the account of such L/C Issuer its
pro-rata share (increased as described above) of the Letter of Credit Usage that
from time to time remain outstanding (the aggregate amount required to be funded
pursuant to this sentence by such Lenders that are not Non-Funding Lenders in
excess of the amount such Lenders would have otherwise been required to fund in
accordance with the first sentence of this paragraph (f) in the
event there were no Non-Funding Lenders is referred to as the “Aggregate Excess Funding
Amount”); provided that no
Lender shall be required to fund any amount which would result in the sum of its
outstanding Loans and outstanding Letter of Credit Usage to exceed its
Commitment.  By making such payment (other than during the
continuation of an Event of Default under subsection 11.01(g)
or 7.1(h)),
such Lender shall be deemed to have made a Loan to the Borrowers, which, upon
receipt thereof by such L/C Issuer, the Borrowers shall be deemed to have used
in whole to repay such L/C Reimbursement Obligation.  Any such payment
that is not deemed a Loan shall be deemed a funding by such Lender of its
participation in the applicable Letter of Credit and the Letter of Credit Usage
in respect of the related L/C Reimbursement Obligations.  Such
participation shall not otherwise be required to be funded.  Following
receipt by any L/C Issuer of any payment from any Lender pursuant to this paragraph (f) with
respect to any portion of any L/C Reimbursement Obligation, such L/C Issuer
shall promptly pay over to such Lender all duplicate payments received from
Persons other than Lenders making payment on behalf of a Credit Party by such
L/C Issuer with respect to such portion of such L/C Reimbursement
Obligation.

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    (g) Obligations
Absolute.  The obligations of the Borrowers and the Lenders
pursuant to paragraphs
(d), (e)
and (f) above
shall be absolute, unconditional and irrevocable and performed strictly in
accordance with the terms of the Agreement and this Annex A irrespective
of (i) (A) the invalidity or unenforceability of any term or provision in any
Letter of Credit, any document transferring or purporting to transfer a Letter
of Credit, any Loan Document (including the sufficiency of any such instrument),
or any modification to any provision of any of the foregoing, (B) any document
presented under a Letter of Credit being forged, fraudulent, invalid,
insufficient or inaccurate in any respect or failing to comply with the terms of
such Letter of Credit or (C) any loss or delay, including in the transmission of
any document, (ii) the existence of any setoff, claim, abatement, recoupment,
defense or other right that any Person (including any Credit Party) may have
against the beneficiary of any Letter of Credit or any other Person, whether in
connection with any Loan Document or any other contractual obligation or
transaction, or the existence of any other withholding, abatement or reduction,
(iii) in the case of the obligations of any Lender, (A) the failure of any
condition precedent set forth in SECTION 5.02 to be satisfied
(each of which conditions precedent the Lenders hereby irrevocably waive) or (B)
any adverse change in the condition (financial or otherwise) of any Credit Party
and (iv) any other act or omission to act or delay of any kind of the
Administrative Agent, any Lender or any other Person or any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this paragraph (g),
constitute a legal or equitable discharge of any obligation of the Borrowers or
any Lender hereunder.  No provision hereof shall be deemed to waive or
limit the Borrowers’ right to seek repayment of any payment of any L/C
Reimbursement Obligations from the L/C Issuer under the terms of the applicable
L/C Reimbursement Agreement or applicable law.

     

    (h) Cash
Collateral.

     

    (i) If
Borrowers are required to provide cash collateral for all or any portion of the
aggregate Letter of Credit Usage pursuant to the Agreement, including after the
occurrence of an Event of Default, the Borrowers will pay to the Collateral
Agent for the ratable benefit of the Agents, the L/C Issuers and the Lenders
entitled thereto cash or cash equivalents acceptable to the Administrative Agent
(“Cash
Collateral”) in an amount equal to 105% of the amount of the aggregate
Letter of Credit Usage to be cash collateralized (and any Borrowing Base Cash
Collateral then posted with the Collateral Agent in accordance with the terms of
this Agreement shall thereafter (1) upon the request of the Administrative
Borrower, be deemed included in all such Cash Collateral and (2) to the extent
included in such Cash Collateral, shall cease to be Borrowing Base Cash
Collateral for all purposes of this Agreement and shall no longer be included in
the calculation of the Borrowing Base).  The parties agree that the
Collateral Agent is hereby authorized to transfer from the account(s) containing
Borrowing Base Cash Collateral to the Cash Collateral Account, any Borrowing
Base Cash Collateral that the Administrative Borrower shall request to be
included in Cash Collateral hereunder.  Such Cash Collateral shall be
held by the Collateral Agent and pledged to, and subject to the control of, the
Collateral Agent, for the benefit of the Agents, the Lenders and the L/C Issuers
entitled thereto, in a cash collateral account (the “Cash Collateral
Account”) maintained at a bank or financial institution acceptable to the
Administrative Agent.  The Borrowers hereby pledge and grant to the
Collateral Agent, on behalf of the Agents, the Lenders and the L/C Issuers, a
security interest in all such Cash Collateral and all proceeds thereof, as
security for the payment of all amounts due in respect of the Letter of Credit
Usage and other Obligations, whether or not then due.  The Agreement,
including this Annex
A, shall constitute a security agreement under applicable
law. 

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

    (ii) If any
Letters of Credit shall for any reason be outstanding on the Maturity Date, the
Borrowers shall do one or more of the following with respect to each such
outstanding Letter of Credit (A) provide Cash Collateral therefor in the manner
described above, (B) cause such Letter of Credit and all guaranties thereof, if
any, to be canceled and returned to each L/C Issuer, or (C) deliver to the
applicable L/C Issuer a stand-by letter (or letters) of credit (each, a “Backstop Letter of
Credit”) in guaranty of each outstanding Letter of Credit, which Backstop
Letter of Credit meets all of the following requirements:  (x) each
Backstop Letter of Credit shall have an expiry or termination date that is at
least thirty (30) additional days later than the expiry or termination date of
the corresponding Letter of Credit with respect to which the Backstop Letter of
Credit is issued, (y) each Backstop Letter of Credit shall be in an amount equal
to 105% of the maximum amount then available to be drawn under the outstanding
Letter of Credit with respect to which the Backstop Letter of Credit is issued,
(z) and each Backstop Letter of Credit shall be issued by a Person, and shall be
subject to such terms and conditions, as are satisfactory to the Administrative
Agent and the applicable L/C Issuer in their respective sole
discretion.

     

    (iii) From time
to time after funds are deposited as Cash Collateral by any Borrower, whether
before or after the Maturity Date, the Administrative Agent may apply such funds
then held by the Collateral Agent to the payment of any amounts, and in such
order as the Administrative Agent may elect, as shall be or shall become due and
payable by the Borrowers to the Agents, the Lenders and the L/C Issuers with
respect to the Letter of Credit Usage and, upon the repayment or expiration of
all amounts constituting Letter of Credit Usage, to any other Obligations of the
Borrowers then due and payable.

     

    (iv) No
Borrower nor any Person claiming on behalf of or through any Borrower shall have
any right to withdraw any of the Cash Collateral, except that upon the
termination or expiry of all Letters of Credit and the payment of all amounts
payable by the Borrowers to the Agents, the Lenders and the L/C Issuers in
respect thereof, any remaining Cash Collateral shall be applied to other
Obligations then due and owing and upon payment in full of such Obligations, any
remaining amount shall be paid to the Borrowers or as otherwise required by
law.  Interest earned on Cash Collateral shall be held as additional
collateral.

     

    (i) Fees and
Expenses.  Borrowers agree to pay to the Administrative Agent
for the benefit of Lenders, as compensation to such Lenders for the Letter of
Credit Usage hereunder, (i) all costs and expenses incurred by the Agents or any
Lender on account of each Letter of Credit, and (ii) the L/C Fee specified in 
SECTION 4.04 of the
Agreement.  Such fee shall be paid to the Administrative Agent for the
benefit of the Lenders in arrears, on the first day of each month and on the
Maturity Date.  In addition, the Borrowers shall pay to each L/C
Issuer directly, on demand and for its own account, a fronting fee equal to
0.25% of the maximum amount available to be drawn under each Letter of Credit
(or such higher amount as may be required by such L/C Issuer) plus such fees
(including all per annum fees), charges and expenses of such L/C Issuer in
respect of the issuance, negotiation, acceptance, amendment, transfer and
payment of a Letter of Credit or otherwise payable pursuant to the application
and related documentation under which such Letter of Credit is
issued.

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

     

    (j) Indemnification;
Nature of Lenders’ Duties.

     

    (i) In
addition to amounts payable as elsewhere provided in the Agreement, Borrowers
hereby agree to pay and to protect, indemnify, and save harmless the
Administrative Agent, the Collateral Agent, each L/C Issuer and each Lender from
and against any and all claims, demands, liabilities, damages, losses, costs,
charges and expenses (including reasonable attorneys’ fees and allocated costs
of internal counsel) that the Administrative Agent, the Collateral Agent, any
L/C Issuer or any Lender may incur or be subject to as a consequence, direct or
indirect, of (A) the issuance of any Letter of Credit or guaranty thereof, or
(B) the failure of the Administrative Agent, the Collateral Agent, any Lender or
L/C Issuer seeking indemnification or of any L/C Issuer to honor a demand for
payment under any Letter of Credit or guaranty thereof as a result of any act or
omission, whether rightful or wrongful, of any present or future de jure or de
facto government or Governmental Authority, in each case other than to the
extent solely as a result of the gross negligence or willful misconduct of such
indemnified person (as finally determined by a court of competent
jurisdiction).

     

    (ii) As
between the Administrative Agent, the Collateral Agent, any Lender and any L/C
Issuer on the one hand and, on the other hand, the Credit Parties, the Credit
Parties assume all risks of the acts and omissions of, or misuse of any Letter
of Credit by, beneficiaries of any Letter of Credit.  In furtherance
and not in limitation of the foregoing, to the fullest extent permitted by law,
neither the Administrative Agent, the Collateral Agent, any Lender nor any L/C
Issuer shall be responsible for:  (A) the form, validity, sufficiency,
accuracy, genuineness or legal effect of any document issued by any party in
connection with the application for and issuance of any Letter of Credit, even
if it should in fact prove to be in any or all respects invalid, insufficient,
inaccurate, fraudulent or forged, (B) the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign any
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, that may prove to be invalid or ineffective for any reason,
(C) failure of the beneficiary of any Letter of Credit to comply fully with
conditions required in order to demand payment under such Letter of Credit;
provided, that
in the case of any payment by any L/C Issuer under any Letter of Credit or
guaranty thereof, such L/C Issuer shall be liable to the extent such payment was
made solely as a result of its gross negligence or willful misconduct (as
finally determined by a court of competent jurisdiction) in determining that the
demand for payment under such Letter of Credit or guaranty thereof complies on
its face with any applicable requirements for a demand for payment under such
Letter of Credit or guaranty thereof, (D) errors, omissions, interruptions or
delays in transmission or delivery of any messages, by mail, cable, telegraph,
telex or otherwise, whether or not they may be in cipher, (E) errors in
interpretation of technical terms, (F) any loss or delay in the transmission or
otherwise of any document required in order to make a payment under any Letter
of Credit or guaranty thereof or of the proceeds thereof, (G) the credit of the
proceeds of any drawing under any Letter of Credit or guaranty thereof, and (H)
any consequences arising from causes beyond the control of the Administrative
Agent, the Collateral Agent, any Lender or any L/C Issuer.  None of
the above shall affect, impair, or prevent the vesting of any of the
Administrative Agent’s, the Collateral Agent’s, any Lender’s or any L/C Issuer’s
rights or powers hereunder or under the Agreement.

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

     

    (iii) Nothing
contained herein shall be deemed to limit or to expand any waivers, covenants or
indemnities made by Borrowers in favor of any L/C Issuer in any letter of credit
application, reimbursement agreement or similar document, instrument or
agreement between or among Borrowers and such L/C Issuer.

     

    (k) Letter of Credit
Amounts.  Unless otherwise specified herein, the amount of a
Letter of Credit at any time shall be deemed to be the stated amount of such
Letter of Credit as in effect at such time; provided, however, that with
respect to any Letter of Credit that, by its terms or the terms of any document
issued in connection with such Letter of Credit, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of
Credit shall be deemed to be the maximum stated amount of such Letter of Credit
after giving effect to all such increases, whether or not such maximum stated
amount is in effect at such time.

     

     

     

     

     

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

     

    ANNEX B
(Section 7.01(H))

     

    to

     

    REVOLVING CREDIT
AGREEMENT

     

    COLLATERAL
REPORTS

     

    Borrowers
shall deliver or cause to be delivered the following:

     

    a. To the
Agents, upon their request, and in any event no less frequently than
12:00 noon five (5) business days after the end of each fiscal month
(together with a copy of all or any part of the following reports requested by
any Lender in writing after the Closing Date), each of the following reports,
each of which shall be prepared by the Borrowers as of the last day of the
immediately preceding fiscal month or the date two (2) days prior to the date of
any such request:

     

    (i) a
Borrowing Base Certificate and collateral reports with respect to the Credit
Parties, including all additions and reductions (cash and non-cash) with respect
to Accounts of each Credit Party, in each case accompanied by such supporting
detail and documentation as shall be requested by the Collateral Agent in its
reasonable discretion;

     

    (ii) with
respect to each Credit Party, a summary of Inventory by location and type with a
supporting Inventory report, in each case accompanied by such supporting detail
and documentation as shall be requested by either Agent in its reasonable
discretion; and

     

    (iii) with
respect to each Credit Party, a monthly trial balance showing Accounts
outstanding aged from invoice date as follows:  1 to 30 days, 31 to 60
days, 61 to 90 days and 91 days or more, accompanied by such supporting detail
and documentation as shall be requested by Agent in its reasonable
discretion.

     

    Notwithstanding the foregoing, in the
event that at any time Borrowing Base Availability shall be less than
$15,000,000, each of the items described in clause (ii) above shall be delivered
no less frequently than on each Wednesday of each week, and shall be prepared by
the Borrowers as of the last day of the immediately preceding week.

    

    b. To the
Agents, at the time of delivery of each of the monthly financial statements
delivered pursuant to Article VII:

     

    (i) a
reconciliation of the Accounts trial balance of each Credit Party to such Credit
Party’s most recent Borrowing Base Certificate, general ledger and monthly
financial statements delivered pursuant to Article VII, in each case accompanied
by such supporting detail and documentation as shall be requested by either
Agent in its reasonable discretion;

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    (ii) a
reconciliation of the inventory by location of each Credit Party to such Credit
Party’s most recent Borrowing Base Certificate, general ledger and monthly
financial statements delivered pursuant to Article VII, in each case accompanied
by such supporting detail and documentation as shall be requested by either
Agent in its reasonable discretion;

     

    (iii) an aging
of accounts payable and a reconciliation of that accounts payable aging to each
Credit Party’s general ledger and monthly financial statements delivered
pursuant to Article VII, in each case accompanied by such supporting detail and
documentation as shall be requested by either Agent in its reasonable
discretion;

     

    (iv) a
reconciliation of the outstanding Loans as set forth in the monthly Loan Account
statement provided by the Administrative Agent to each Credit Party’s general
ledger and monthly financial statements delivered pursuant to Article VII, in
each case accompanied by such supporting detail and documentation as shall be
requested by either Agent in its reasonable discretion;

     

    c. To the
Agents, at the time of delivery of each of the quarterly or annual financial
statements delivered pursuant to Article VII, a listing of government contracts
of each Credit Party subject to the Federal Assignment of Claims Act of
1940.

     

    d. The
Borrowers, at their own expense, shall deliver to the Agents the results of each
physical verification, if any, that any Borrower or any of their Subsidiaries
may in their discretion have made, or caused any other Person to have made on
their behalf, of all or any portion of their Inventory (and, if a Default or an
Event of Default has occurred and is continuing, the Borrowers shall, upon the
request of either Agent, conduct, and deliver the results of, such physical
verifications as the Agents may require).

     

    e. Upon the
any Agent’s request, and at the expense of the Borrowers, from time to time, the
Credit Parties shall permit and enable the Agents to obtain appraisals in form
and substance and from appraisers reasonably satisfactory to Agent stating the
fair market value, or such other value as determined by such Agent (for example,
replacement cost for purposes of Flood Insurance), of any Real Estate Asset of
any Credit Party or any Subsidiary of any Credit Party, if and to the extent any
such appraisal is required to comply with FIRREA.

     

    f. Such
other reports, statements and reconciliations with respect to the Borrowing
Base, Collateral or Obligations of any or all Credit Parties as the Collateral
Agent shall from time to time request in its reasonable discretion.

     

    

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A-1

    TO
REVOLVING CREDIT AGREEMENT

     

    DEPOSIT
ACCOUNT OF ADMINISTRATIVE AGENT AND BORROWER

     

    FOR ADMINISTRATIVE
AGENT:

     

    Bank:         Deutsche
Bank Trust Company Americas

    ABA
Number:   021-001-033

    Acct
Number:  50279513

    Reference:    CFN8712
JAMES RIVER COAL COMPANY

     

    

     

    BORROWER FUNDING
ACCOUNT:

    Wachovia
Bank, N.A

    ABA
#:  051400549

    Account
#:  2000010101379

    Account
Name: James River Coal Company

     

     

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A-2

    TO
REVOLVING CREDIT AGREEMENT

     

    [FORM OF] ASSIGNMENT AND
ACCEPTANCE

     

    This
Assignment and Acceptance (the “Assignment”) is dated
as of the Effective Date set forth below and is entered into by and between
[Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Credit Agreement (as defined below), receipt of a copy of which is hereby
acknowledged by the Assignee.  The Standard Terms and Conditions set
forth in Annex A-1 attached hereto are hereby agreed to and incorporated herein
by reference and made a part of this Assignment as if set forth herein in
full.

     

    For an
agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the
Assignor, subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below, the interest in and to all of the
Assignor’s rights and obligations under the Credit Agreement and any other
documents or instruments delivered pursuant thereto that represent the amount
and percentage interest identified below of all of the Assignor’s outstanding
rights and obligations under the Loans (including Letters of Credit thereunder)
(the “Assigned
Interest”).  Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment and the Credit
Agreement, without representation or warranty by the Assignor.

     

    
      	
              1.           Assignor:

            	
              ______________________

            
	
              2.           Assignee:

            	
              ______________________

            
	
              3.           Borrowers:

            	
              James
      River Coal Company and certain of its Subsidiaries that are party as
      borrowers to the Credit Agreement

            
	
              4.           Administrative
      Agent:

            	
              General
      Electric Capital Corporation, as Administrative Agent under the Credit
      Agreement

            
	
              5.           Credit
      Agreement:

            	
              The
      Amended and Restated Revolving Credit Agreement, dated as of January 28,
      2010 (as it may be further amended, supplemented or otherwise modified,
      the “Credit
      Agreement”; the terms defined therein and not otherwise defined
      herein being used herein as therein defined), by and among JAMES RIVER COAL COMPANY
      and certain of its Subsidiaries identified as borrowers on
      the signature pages thereto (collectively, the
      “Borrowers”),
      and certain other Credit Parties party thereto from time to time, as
      Guarantors, the Lenders party thereto from time to time, and GENERAL ELECTRIC CAPITAL
      CORPORATION, as Administrative Agent, Collateral
    Agent.

            

       

      
        
          
          

        

        
          A-2-1

          
            

          

        

        
          
          

        

      

       

       

      	
              6.           Assigned
      Interest:

            	 
      

    

    

    
      	
              Aggregate
      Amount of

              Commitment/Loans

              for all
      Lenders

            	
              Amount
      of Commitment/Loans

              Assigned

            	
              Percentage
      Assigned of Commitment/Loans [1]

            
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    Effective
Date: ______________, 20__ [TO BE INSERTED BY
ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF
TRANSFER IN THE REGISTER THEREFOR.]

     

    7.           Notice
and Wire Instructions:

     

    
      	 
      	
              [NAME
      OF ASSIGNOR]

              Notices:

              _________________________

              _________________________

              _________________________

              Attention:

              Telecopy:

               

              with
      a copy to:

              _________________________

              _________________________

              _________________________

              Attention:

              Telecopy:

               

              Wire
      Instructions:

               

               

            	 
      	
              [NAME
      OF ASSIGNEE]

              Notices:

              _________________________

              _________________________

              _________________________

              Attention:

              Telecopy:

               

              with
      a copy to:

              _________________________

              _________________________

              _________________________

              Attention:

              Telecopy:

               

              Wire
      Instructions:

               

            

    

    

    
      	
               
      

            	
              The
      terms set forth in this Assignment are hereby agreed
  to:

            

    

     

    
    

     

    
      
        	 	ASSIGNOR
	 	[NAME OF ASSIGNOR]
	 	 
	 	 
	 	By:  ___________________
	 	Title: 

      

       

       

      
        
          
          

        

        
          A-2-2

          
            

          

        

        
          
          

        

      

       

      
        	 	ASSIGNEE
	 	[NAME OF ASSIGNEE]
	 	 
	 	 
	 	By:  ___________________ 
	 	Title:  

      

    

     

    1Consented to and
Accepted:

     

    GENERAL ELECTRIC CAPITAL
CORPORATION, as

    Administrative
Agent

     

    

    By: 
_________________________________

    Title:

     

     

    UBS AG, STAMFORD BRANCH,
as

    L/C
Issuer

     

    
       

      By: 
_________________________________

      Title:

    

    

     

    
      By: 
_________________________________

      Title:

    

    

      
      
        _____________________________________

        1
Insert as necessary, if required.

         

         

        
          
            
            

          

          
            A-2-3

            
              

            

          

          
            
            

          

        

         

      

      ANNEX
A-1

    

     

    STANDARD
TERMS AND CONDITIONS FOR

    ASSIGNMENT
AND ACCEPTANCE

     

    Representations and
Warranties.

     

    
      	
               
      

            	
              1.1

            	
              Assignor.  The
      Assignor (a) represents and warrants that (i) it is the legal and
      beneficial owner of the Assigned Interest, (ii) the Assigned Interest is
      free and clear of any lien, encumbrance or other adverse claim and (iii)
      it has full power and authority, and has taken all action necessary, to
      execute and deliver this Assignment and to consummate the transactions
      contemplated hereby; and (b) assumes no responsibility with respect to
      (i) any statements, warranties or representations made in or in
      connection with any Loan Document, (ii) the execution, legality, validity,
      enforceability, genuineness, sufficiency or value of the Credit Agreement
      or any other  instrument or document delivered pursuant thereto,
      other than this Assignment (herein collectively the “Credit
      Documents”), or any collateral thereunder, (iii) the financial
      condition of the Borrowers, any of their respective Subsidiaries or
      Affiliates or any other Person obligated in respect of any Credit Document
      or (iv) the performance or observance by the Borrowers, any of their
      respective Subsidiaries or Affiliates or any other Person of any of their
      respective obligations under any Credit
  Document.

            

    

     

    
      	
               
      

            	
              1.2

            	
              Assignee.  The
      Assignee (a) represents and warrants that (i) it has full power and
      authority, and has taken all action necessary, to execute and deliver this
      Assignment and to consummate the transactions contemplated hereby and to
      become a Lender under the Credit Agreement, (ii) it meets all requirements
      of an Eligible Assignee under the Credit Agreement, (iii) from and
      after the Effective Date, it shall be bound by the provisions of the
      Credit Agreement and, to the extent of the Assigned Interest, shall have
      the obligations of a Lender thereunder, (iv) it has received a copy of the
      Credit Agreement and such other documents and information as it has deemed
      appropriate to make its own credit analysis and decision to enter into
      this Assignment and to purchase the Assigned Interest on the basis of
      which it has made such analysis and decision, and (v) if it is a Lender
      not organized under the laws of the United States of America, any State
      thereof or the District of Columbia, attached to the Assignment is any
      documentation required to be delivered by it pursuant to the terms of the
      Credit Agreement, duly completed and executed by the Assignee; and (b)
      agrees that (i) it will, independently and without reliance on the
      Administrative Agent, the Assignor or any other Lender, and based on such
      documents and information as it shall deem appropriate at that time,
      continue to make its own credit decisions in taking or not taking action
      under the Loan Documents, and (ii) it will perform in accordance with
      their terms all of the obligations which by the terms of the Credit
      Documents are required to be performed by it as a
  Lender.

            

    

     

    
      
        
        

      

      
        ANNEX
A-1-1

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              Payments.  From
      and after the Effective Date, the Administrative  Agent shall
      make all payments in respect of the Assigned Interest (including payments
      of principal, interest, fees and other amounts) to the Assignor for
      amounts which have accrued to but excluding the Effective Date and to the
      Assignee for amounts which have accrued from and after the Effective
      Date.[2]

            

    

     

    
      	
               
      

            	
              General
      Provisions.  This Assignment shall be binding upon, and
      inure to the benefit of, the parties hereto and their respective
      successors and assigns.  This Assignment may be executed in any
      number of counterparts, which together shall constitute one
      instrument.  Delivery of an executed counterpart of a signature
      page of this Assignment by telecopy shall be effective as delivery of a
      manually executed counterpart of this Assignment.  This
      Assignment shall be governed by, and construed in accordance with, the
      internal laws of the State of New York without regard to conflict of laws
      principles thereof.

            

    

     

    
 

     

     

     

    __________________________

    

      
        	
                [2]

              	
                Or,
      if agreed among Administrative Agent, Assignor and
      Assignee:  “From and after the Effective Date, the
      Administrative Agent shall make all payments in respect of the Assigned
      Interest (including payments of principal, interest, fees and other
      amounts) to the Assignee whether such amounts have accrued prior to or on
      or after the Effective Date.  The Assignor and the Assignee
      shall make all appropriate adjustments in payments by the Administrative
      Agent for periods prior to the Effective Date or with respect to the
      making of this assignment directly between
  themselves.”

              

      

    

     

     

    
      
        
        

      

      
        ANNEX
A-1-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
B-1

    TO
REVOLVING CREDIT AGREEMENT

     

    [FORM OF] BORROWING
REQUEST

     

    Please
see attached Notice of Revolving Credit Advance.

     

     

    
 

    
      
        
        

      

      
        B-1-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
B-2

    TO
REVOLVING CREDIT AGREEMENT

     

    [FORM OF] BORROWING BASE
CERTIFICATE

     

    Please
see attached Borrowing Base Certificate.

     

     

     

     

     

    
      
        
        

      

      
        B-2-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
C-1

    TO
REVOLVING CREDIT AGREEMENT

     

    [FORM OF] COLLATERAL ACCESS
AGREEMENT

     

    This
COLLATERAL ACCESS AGREEMENT (this “Agreement”) is given
this _____ day of _______________, 20__, by ___________, a ___________ (“Landlord”) and
____________________a _________ (“Tenant”) in favor of
General Electric Capital Corporation, as collateral agent for the lenders under
the Credit Agreement described below (together with its successors and permitted
assigns, “Agent”), for the
benefit of the Agent and the other financial institutions from time to time
party to the Credit Agreement as lenders, letter of credit issuers and agents
(collectively, the “Lenders”).

     

    BACKGROUND

     

    A.           Landlord
and Tenant are parties to that certain __________ Lease dated ____________ (as
amended, supplemented or otherwise modified from time to time, the “Lease”).

     

    B.           Tenant
is a direct or indirect subsidiary entity of James River Coal Company (“Borrower”).

     

    C.           Borrower,
together with other related parties, is entering into or has entered into a
Credit Agreement (as the same may be amended, restated or refinanced from time
to time, the “Credit
Agreement”) with Agent and the Lenders.

     

    
      
        
        

      

      
        C-1-1

        
          

        

      

      
        
        

      

    

     

    D.           The
Credit Agreement requires that Tenant pledge and grant a security interest to
Agent in, among other things, all of Tenant’s accounts, inventory, general
intangibles, documents, chattel paper, instruments, machinery, equipment,
furniture and fixtures, including without limitation all tipples, conveyor belts
and systems, loading and coal washing facilities and railroad tracks and all
other surface or subsurface machinery, equipment, fixtures, facilities and other
property of whatsoever kind or nature now or hereafter located on or under any
of the premises under the Lease(the “Premises”) which are
used or useful for the mining, gathering, extraction, loading, production,
treatment, processing, storage or transportation of coal and other minerals,
together with all other tangible property of any kind or character, together
with all replacements thereof, together with all additions, accessions,
substitutions, replacements and improvements to, and proceeds of, the foregoing
(all of foregoing, the “Collateral”).

     

    Intending
to be legally bound, Landlord hereby covenants and agrees with Agent as
follows:

     

    1.           Lease.  The
Lease is in full force and effect. To the knowledge of Landlord, no default
exists under the Lease.  A true and correct copy of the Lease is
attached to this Agreement as Exhibit A.

     

    2.           Notices to
Agent.  If any default or event shall occur under the Lease
which would be grounds for Landlord to terminate the Lease, and Landlord sends a
written notice to Tenant, Landlord shall at the same time provide a copy of such
notice to Agent.

     

    3.           Waiver of
Liens.  Landlord waives any interest in the Collateral and
agrees not to distrain or levy upon any Collateral or to assert any lien, right
of distraint or other claim against the Collateral for any
reason.  Landlord agrees that the Collateral may be stored, utilized,
and/or installed at the Premises and shall not be deemed a fixture or part of
the real estate but shall at all times be considered personal property, whether
or not any Collateral becomes so related to the real estate that an interest
therein would otherwise arise under applicable law.

     

    
      
        
        

      

      
        B-2-2

        
          

        

      

      
        
        

      

    

     

    4.           Access and Opportunity to
Cure.  (a) Agent may, at any time or times hereafter,
without any fee or charge for rent or otherwise, enter upon the Premises to
inspect the Collateral and Tenant’s other assets located on the
Premises.  Agent shall have the right, but not the obligation, to cure
Tenant’s defaults under the Lease; provided, that Agent shall
have at least thirty (30) days following receipt of written notice of default to
cure such default (or to commence the cure thereof, as provided below) before
the Lease terminates or Landlord takes any action to terminate the Lease or
otherwise to exercise its rights and remedies under the Lease in respect of such
default.

     

    (b)           Landlord
will accept performance by or on behalf of Agent as if it were done by
Tenant.  During such cure period, the Agent shall have the right to
(i) notify Landlord of  Agent’s desire to cure Tenant’s default
and to nullify any notice of any such default, (ii) pay or cause to be paid
all amounts due and payable under the Lease (whether in the form of tonnage
royalties, minimum annual royalty or otherwise), and (iii) comply or in
good faith, with reasonable diligence, commence to remedy any Tenant default
under the Lease, which is reasonably susceptible of being remedied by
Agent.

     

    (c)           Agent
shall have the right to access the Premises and take possession of, sale and/or
remove Collateral securing Tenant’s obligations so long as (i) Agent pays
the rent and other charges payable under the Lease for such period during which
Agent remains on the Premises and Agent assumes Tenant’s responsibilities under
the Lease which arise during such period Agent remains on the Premises, and
(ii) Agent shall repair any damage to the Premises directly resulting from
its possession thereof.  Notwithstanding anything to the contrary
herein, Agent shall at no time have any obligation to remove the Collateral from
the Premises and nothing shall obligate Agent to pay any amounts due or perform
any obligations of Tenant under the Lease.

     

    
      
        
        

      

      
        B-2-3

        
          

        

      

      
        
        

      

    

     

    5.           Amendments to
Lease.  Landlord will promptly deliver to Agent a copy of any
amendment or other modification to the Lease.

     

    6.           Memorandum of
Lease.  Upon request from Tenant or Agent, Landlord shall
execute a Memorandum of Lease in form and substance reasonably acceptable to
Landlord and Agent and as otherwise sufficient for recordation in the county
real estate records where the property subject to the Lease is
located.

     

    7.           Remedies under Credit
Agreement.  Landlord understands that upon a default under the
Credit Agreement, the enforcement of the rights and legal remedies of Agent
under the Credit Agreement could result in the Lease being sold and assigned to
a third party chosen by Agent. Landlord confirms that such an assignment or
transfer of the Lease will not be a default under the Lease, including an
assignment or transfer of the Lease to Agent or any Lender, or any nominee of
Agent or a  Lender, in connection with any exercise of any judicial or
other remedies available to the Agent or the Lenders following a default under
the Loan, including without limitation the appointment by a court of a receiver
to assume possession and/or operation of the Premises and a transfer
resulting from an order given in a bankruptcy, reorganization, insolvency or
similar proceeding.

     

    8.           Reliance; Binding
Effect.  Agent and the Lenders and their respective successors
and assigns shall be permitted to rely upon and enforce this Agreement, which
shall not be amended, modified or revoked without Agent’s prior written consent
and shall be third-party beneficiaries hereof.  This Agreement will be
binding upon the successors and assigns of the parties.

     

    
      
        
        

      

      
        B-2-4

        
          

        

      

      
        
        

      

    

     

    9.           Notices.  Notices
to the Agent and any Lender shall be sent to the Agent by certified mail or
reputable overnight delivery service at Agent’s address on the first page
hereof, Attention: James River Account Manager (as such address may be changed
by notice to Landlord).

     

    10.           Governing
Jurisdiction.  This Agreement shall be governed by and shall be
construed and enforced in accordance with the internal laws of the state of
jurisdiction for the Lease.

     

    11.           Continuing
Obligation.  This Agreement shall continue until such time as
all of the obligations of Tenant with respect to the Loan have been paid and
performed in full, and all commitments of all Lenders under all loan documents
in connection with the Credit Agreement have been terminated and the Landlord
has been notified thereof in writing by Agent.

     

    12.           Counterparts and Facsimile
Signatures.  This Agreement may be executed in any number of
counterparts, by different parties hereto in separate counterparts and by
facsimile signature, each of which when so executed and delivered shall be
deemed to be an original and all of which taken together shall constitute but
one and the same agreement.

     

     

    [REMAINDER OF THIS PAGE IS
LEFT BLANK INTENTIONALLY]

     

     

     

    
      
        
        

      

      
        B-2-5

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, Landlord and Tenant have executed this Agreement, intending to
be legally bound, as of the date set forth above:

     

    
      
        	 	
                LANDLORD: 

                 

                 

                By: ________________________

                        Name:

                       
Title:

              

      

       

    

     

     

    Accepted:

     

    AGENT:

    GENERAL
ELECTRIC CAPITAL CORPORATION, as Agent

     

     

    
      By: ________________________

              Name:

              Title:

    

     

    
      
        
        

      

      
        B-2-6

        
          

        

      

      
        
        

      

    

    
ACKNOWLEDGEMENT

     

    STATE OF
__________       )

     

                                                      
)  ss.:

     

    COUNTY OF
_________     )

     

    On
____________________, before me, _________________________ __________, a notary
public, personally appeared ____________________________, personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the
instrument.

     

    WITNESS
my hand and official seal.

    

    

    __________________________________

    Notary
Public

    Print
Name:

    

    A
resident of ______________ County

    State
of  _____________

    

    

    My
commission expires:

    

    

    _________________________

    (Space
above for official notarial seal)

     

    
      
        
        

      

      
        C-1-7

        
          

        

      

      
        
        

      

    

    
ACKNOWLEDGEMENT

     

    
      STATE OF
__________       )

       

                                                        
)  ss.:

       

      COUNTY OF
_________     )

    

     

    On
____________________, before me, ____________________________ __________, a
notary public, personally appeared __________________________, personally known
to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

     

    WITNESS
my hand and official seal.

    

    

    __________________________________

    Notary
Public

    Print
Name:

    

    A
resident of ______________ County

    State
of  _____________

    

    

    My
commission expires:

    

    

    ________________________

    (Space
above for official notarial seal)

     

    
      
        
        

      

      
        C-1-8

        
          

        

      

      
        
        

      

    

    
EXHIBIT
C-2

    TO
REVOLVING CREDIT AGREEMENT

     

    [FORM OF] COMPLIANCE
CERTIFICATE

     

    [date]

     

    THE UNDERSIGNED HEREBY
CERTIFIES SOLELY IN HIS CAPACITY AS THE [CHIEF FINANCIAL OFFICER]/[CHIEF ACCOUNTING OFFICER] OF JAMES RIVER COAL
COMPANY AS
FOLLOWS:

     

     

    1.           I
am the [Chief Financial
Officer]/[Chief Accounting Officer] of JAMES RIVER COAL
COMPANY.

     

    2.           I
have reviewed the terms of that certain Amended and Restated Revolving Credit
Agreement, dated as of January 28, 2010 (as it may be further amended, restated,
supplemented or otherwise modified, the “Credit Agreement”;
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among JAMES RIVER COAL COMPANY and
certain of its Subsidiaries identified as borrowers on the signature pages
thereto (collectively, the
“Borrowers”),
and certain other Credit Parties party thereto from time to time, as Guarantors,
the Lenders party thereto from time to time, and GENERAL ELECTRIC CAPITAL
CORPORATION, as Administrative Agent, and the other Loan Documents
thereunder, and I have made, or have caused to be made under my supervision, a
review in reasonable detail of the transactions and consolidated financial
condition of the Borrowers and their respective Subsidiaries during the
accounting period covered by the attached financial statements.

     

    3.           The
attached financial statements for the Fiscal Month or Fiscal Quarter, as the
case may be, ended [mm/dd/yy] are prepared in
accordance with GAAP.  Attached as Annex C-2 is (a) a detailed listing
of all Asset Dispositions made pursuant to Section 9.04(j) of
the Credit Agreement, all Permitted Investments made pursuant to Section 9.07 of the
Credit Agreement, all Sales and Leasebacks made pursuant to Section 9.08 of the
Credit Agreement and all Restricted Payments made pursuant to Section 9.17 of the
Credit Agreement, together with cumulative calculations of the amount of all
such transactions since the Closing Date and (b) a calculation of compliance
with Sections
10.01, 10.02 and 10.03 of the Credit
Agreement (regardless of whether or not a Trigger Event Period is then in
existence), including a reconciliation of the applicable items to the financial
statements being delivered herewith.  The Credit Parties have paid all
premiums, contributions and other payments required to be made under the Coal
Act and the Black Lung Act (each as defined in the Credit Agreement) as and when
due, in each case except to the extent subject to a Permitted Protest (as
defined in the Credit Agreement).

     

    
      
        
        

      

      
        C-2-1

        
          

        

      

      
        
        

      

    

     

    The
foregoing certifications, together with the financial statements delivered with
this Certificate in support hereof, are made and delivered as of the date hereof
pursuant to Section 7.01(d)
of the Credit Agreement.

     

    
       

      
        	 	
                JAMES RIVER COAL
      COMPANY,

                as
      Administrative Borrower

                

                

                By:
      _____________________________

                Title:

              

      

       

    

     

     

     

    
      
        
        

      

      
        C-2-2

        
          

        

      

      
        
        

      

    

    
EXHIBIT
N-1

    TO
REVOLVING CREDIT AGREEMENT

     

    [FORM OF] NOTE

     

    New York,
New York

    
    

     

    
      	$___,___,____   	 _______ __,
      20__

    

     

    FOR VALUE
RECEIVED, each of the undersigned, JAMES RIVER COAL COMPANY (“JRCC”), and
certain of JRCC’s subsidiaries identified on the signature pages hereof, as
borrowers (such subsidiaries, together with JRCC, are referred to hereinafter
each individually as a “Borrower”, and collectively, jointly and severally, as
the “Borrowers”) HEREBY, JOINTLY AND SEVERALLY, PROMISE TO PAY to the order of
_______________________ (“Lender”), in accordance with the terms of the Credit
Agreement referred to below, in lawful money of the United States of America and
in immediately available funds, the amount of _______________________ DOLLARS
AND _______ CENTS ($___,___,___) or, if less, the aggregate unpaid amount of all
Revolving Advances made to the Borrowers under the Credit Agreement (as
hereinafter defined).  All capitalized terms used but not otherwise
defined herein have the meanings given to them in the Credit Agreement referred
to below.

     

    This Note
is one of the Notes issued pursuant to that certain Amended and Restated Credit
Agreement, dated as of January 28, 2010, by and among the Borrowers, the other
Persons named therein as Credit Parties, General Electric Capital Corporation,
as  administrative agent and collateral agent, and the other Persons
signatory thereto from time to time as Lenders (including all annexes, exhibits
and schedules thereto, and as from time to time further amended, restated,
supplemented or otherwise modified, the “Credit Agreement”), and is entitled to
the benefit and security of the Credit Agreement, the Security Agreement and all
of the other Loan Documents referred to therein.  Reference is hereby
made to the Credit Agreement for a statement of all of the terms and conditions
under which the Loans evidenced hereby are made and are to be
repaid.  The date and amount of each Revolving Advance made by Lenders
to the Borrowers, the rates of interest applicable thereto and each payment made
on account of the principal thereof, shall be recorded by the Administrative
Agent on its books; provided that the failure of the Administrative Agent to
make any such recordation shall not affect the obligations of the Borrowers to
make a payment when due of any amount owing under the Credit Agreement or this
Note in respect of the Revolving Advances made by Lender to the
Borrowers.

     

    The
principal amount of the indebtedness evidenced hereby shall be payable in the
amounts and on the dates specified in the Credit Agreement, the terms of which
are hereby incorporated herein by reference.  Interest thereon shall
be paid until such principal amount is paid in full at such interest rates and
at such times, and pursuant to such calculations, as are specified in the Credit
Agreement.

     

    
      
        
        

      

      
        N-1-1

        
          

        

      

      
        
        

      

    

     

    If any
payment on this Note becomes due and payable on a day other than a Business Day,
the maturity thereof shall be extended to the next succeeding Business Day and,
with respect to payments of principal, interest thereon shall be payable at the
then applicable rate during such extension.

     

    Upon and
after the occurrence of any Event of Default, this Note may, as provided in the
Credit Agreement, and without demand, notice or legal process of any kind, be
declared, and immediately shall become, due and payable.

     

    Time is
of the essence of this Note.  Demand, presentment, protest and notice
of nonpayment and protest are hereby waived by each of the
Borrowers.

     

    Except as
provided in the Credit Agreement, this Note may not be assigned by Lender to any
Person.

     

    THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT
STATE.

     

    [Remainder of page left
intentionally blank]

     

     

    
      
        
        

      

      
        N-1-2

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
Borrowers have caused this Note to be duly executed and delivered by its officer
thereunto duly authorized as of the date and at the place first written
above.

     

    
    

     

    
      	 	
              BORROWERS

              

              JAMES
      RIVER COAL SERVICE COMPANY

              LEECO,
      INC.

              TRIAD
      MINING, INC.

              TRIAD
      UNDERGROUND MINING, LLC

              BLEDSOE
      COAL CORPORATION

              JOHNS
      CREEK ELKHORN COAL CORPORATION

              BELL
      COUNTY COAL CORPORATION

              JAMES
      RIVER COAL SALES, INC.

              BLEDSOE
      COAL LEASING COMPANY

              BLUE
      DIAMOND COAL COMPANY

              MCCOY
      ELKHORN COAL CORPORATION

               

              

               

              By:
      ______________________________________________

              Name:

              Title:
      Vice President on behalf of each of the above
  entities

            

    

     

     

     

    
      
        
        

      

      
        N-1-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
N-2

    TO
REVOLVING CREDIT AGREEMENT

     

    [FORM OF] NOTICE OF
CONVERSION/CONTINUATION

     

    Reference
is made to the Amended and Restated Revolving Credit Agreement, dated as of
January 28, 2010 (as it may be further amended, restated, supplemented or
otherwise modified, the “Credit Agreement”;
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among JAMES RIVER COAL COMPANY and
certain of its Subsidiaries identified as borrowers on the signature pages
thereto (collectively, the
“Borrowers”),
and certain other Credit Parties party thereto from time to time, as Guarantors,
the Lenders party thereto from time to time, GENERAL ELECTRIC CAPITAL
CORPORATION, as Administrative Agent and Collateral Agent.

     

    Pursuant
to Section 4.01(d)
of the Credit Agreement, the Borrowers desire to convert or to continue the
following Loans, each such conversion and/or continuation to be effective as of
[mm/dd/yy]:

     

    
      	
              $[___,___,___]

            	 
      	
              LIBOR
      Rate Loans to be continued with LIBOR of ____ month(s)

            
	 
      	 
      	 
      
	
              $[___,___,___]

            	 
      	
              Base
      Rate Loans to be converted to LIBOR Rate Loans with LIBOR of ____
      month(s)

            
	 
      	 
      	 
      
	
              $[___,___,___]

            	 
      	
              LIBOR
      Rate Loans to be converted to Base Rate
Loans

            

    

     

    The
Administrative Borrower hereby certifies, on behalf of itself and the other
Credit Parties, that as of the date hereof, no event has occurred and is
continuing that would constitute an Event of Default or a Default.

     

    
      	
              Date:  [mm/dd/yy]

            	
              JAMES RIVER COAL
      COMPANY,

              as
      Administrative Borrower

               

              By:
      ____________________________

                    
      Title:

            

    

     

     

    
      
        
        

      

      
        N-2-1

        
          

        

      

      
        
        

      

    

    
EXHIBIT
O-1

    TO
REVOLVING CREDIT AGREEMENT

     

    [FORM OF] OFFICER’S
CERTIFICATE

     

    [DATE]

     

    THE
UNDERSIGNED HEREBY CERTIFIES SOLELY IN HIS CAPACITY AS AN AUTHORIZED OFFICER OF
JAMES RIVER COAL COMPANY AS FOLLOWS:

     

    1.           I
am the [Chief Financial
Officer]/[Chief Accounting Officer] of JAMES RIVER COAL
COMPANY.

     

    2.           I
have reviewed the terms of that certain Amended and Restated Revolving Credit
Agreement, dated as of January 28, 2010 (as it may be further amended,
supplemented or otherwise modified, the “Credit Agreement”;
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among JAMES RIVER COAL COMPANY and
certain of its Subsidiaries identified as borrowers on the signature pages
thereto (collectively, the
“Borrowers”),
and certain other Credit Parties party thereto from time to time, as Guarantors,
the Lenders party thereto from time to time, GENERAL ELECTRIC CAPITAL
CORPORATION, as Administrative Agent and Collateral Agent, and the other
Loan Documents thereunder, and I have made, or have caused to be made under my
supervision, a review in reasonable detail of the transactions and financial
condition of the Borrowers and their respective Subsidiaries during the
accounting period covered by the attached financial statements.

     

    3.           The
examination described in paragraph 2 above did not disclose, and I have no
knowledge of, the existence of any condition or event which constitutes, during
or at the end of the accounting period or Measurement Period covered by the
attached financial statements or as of the date of this Certificate, an Event of
Default or a continuing Default as of the date of this Certificate, except as
set forth in a separate attachment, if any, to this Certificate, describing in
detail, the nature of the condition or event, the period during which it has
existed and the action which the Borrowers and their respective Subsidiaries
have taken, are taking, and propose to take with respect to each such condition
or event.

     

    

     

    
      
        
        

      

      
        O-1-1

        
          

        

      

      
        
        

      

    

     

    The
foregoing certifications, together with the financial statements delivered with
this Certificate in support hereof, are made and delivered as of the date first
written above, pursuant to Section 7.01(d)
of the Credit Agreement.

     

    
      
         

        
          	 	
                  JAMES RIVER COAL
      COMPANY,

                  as
      Administrative Borrower

                  

                  

                  By:
      _____________________________

                  Title:

                

        

         

      

    

     

    
      
        
        

      

      
        O-1-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
O-2

    TO
REVOLVING CREDIT AGREEMENT

    

    

    [FORM OF] OFFICER’S
CERTIFICATE

    

    [DATE]

    

    THE
UNDERSIGNED HEREBY CERTIFIES SOLELY IN HIS CAPACITY AS AN AUTHORIZED OFFICER OF
EACH OF THE UNDERSIGNED CREDIT PARTIES AS FOLLOWS:

     

    1.           I
am the [Senior
Officer] of each of the
undersigned Credit Parties (each, a “Company”).

     

    2.           I
have reviewed the terms of that certain Amended and Restated Revolving Credit
Agreement, dated as of January 28, 2010 (as it may be further amended,
supplemented or otherwise modified, the “Credit Agreement”;
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among JAMES RIVER COAL COMPANY and
certain of its Subsidiaries identified as borrowers on the signature pages
thereto (collectively, the
“Borrowers”),
and certain other Credit Parties party thereto from time to time, as Guarantors,
the Lenders party thereto from time to time, GENERAL ELECTRIC CAPITAL
CORPORATION, as Administrative Agent and Collateral Agent, and the other
Loan Documents thereunder, and to my knowledge and on behalf of each Company,
all of the representations and warranties of each Company contained in the
Credit Agreement or in any of the other Loan Documents are true and correct in
all material respects on and as of the date hereof as if made on such date, that
no breach of any covenant contained in Article VIII, Article IX or Article X of
the Credit Agreement has occurred or would result from the execution, delivery
of and performance under the Credit Agreement and the transactions contemplated
thereunder; all of the conditions set forth in Section 5.01(p)(ii)
of the Credit Agreement have been satisfied on such date (or shall, to the
extent permitted by the Credit Agreement, be satisfied substantially
simultaneously with the incurrence of Loans on the date hereof); the Credit
Parties have an Availability as of the date hereof greater than or equal to
$25,000,000 after giving effect to the initial use of proceeds of the Loans;
there has been no repayment of Indebtedness that (i) would reduce the
$125,000,000 amount permitted for credit facilities under
Section 4.03(a)(1) of the Indenture, or (ii) would reduce the
$10,000,000 amount permitted for credit facilities under
Section 4.03(a)(10) of the Indenture, and there is no other Indebtedness
that would reduce the permitted Indebtedness under the Indenture (other than
Indebtedness that is subject to the Indenture Reserve).

     

     

    
      
        
        

      

      
        O-2-1

        
          

        

      

      
        
        

      

    

     

    The foregoing certifications, together
with the financial statements delivered with this Certificate in support hereof,
are made and delivered as of the date set forth above, pursuant to Section 5.01(p)(ii)
of the Credit Agreement.

     

    
      	 	
              ADMINISTRATIVE
      BORROWER

              

              JAMES RIVER COAL
      COMPANY

              

              

              By: 
      __________________________

              Title:  Vice
      President

            

    

     

    
 

     

     

    
      
        
        

      

      
        O-2-1

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              BORROWERS

              

              JAMES
      RIVER COAL SERVICE COMPANY

              LEECO,
      INC.

              TRIAD
      MINING, INC.

              TRIAD
      UNDERGROUND MINING, LLC

              BLEDSOE
      COAL CORPORATION

              JOHNS
      CREEK ELKHORN COAL CORPORATION

              BELL
      COUNTY COAL CORPORATION

              JAMES
      RIVER COAL SALES, INC.

              BLEDSOE
      COAL LEASING COMPANY

              BLUE
      DIAMOND COAL COMPANY

              MCCOY
      ELKHORN COAL CORPORATION

              

               

              By:____________________________________________

              Title:
      Vice President on behalf of each of the above
  entities

            

    

     

     

     

    
    

    
      
        
        

      

      
        O-2-2

        
          

        

      

      
        
        

      

    

     

    
    

     

    
      	 	
              GUARANTORS

              

              JOHNS
      CREEK PROCESSING COMPANY

              JOHNS
      CREEK COAL COMPANY

              SHAMROCK
      COAL COMPANY, INCORPORATED

              EOLIA
      RESOURCES, INC.

              BDCC
      HOLDING COMPANY, INC.

              

              

              By:____________________________________________

              Title:
      Vice President on behalf of each of the above
  entities

            

    

     

     

    

     

    
      
        
        

      

      
        O-2-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]