Document:

ex10-2.htm

    
      

    

    Exhibit
10.2

     

    SECOND
AMENDMENT TO REVOLVING CREDIT AGREEMENT

     

    THIS SECOND AMENDMENT TO REVOLVING CREDIT
AGREEMENT (this “Agreement”), is made and
entered into as of May 5, 2008 (the “Effective Date”), 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 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, identified on the signature pages hereof as Guarantors
(together, the Borrowers and Guarantors, the “Credit Parties”), the lenders
party hereto from time to time (the “Lenders”), General Electric
Capital Corporation (“GECC”), a corporation formed
under the laws of Delaware, as co-lead arranger and
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”), with
Morgan Stanley Senior Funding, Inc., having acted as co-lead arranger for the
Lenders with GECC.

    

    W I T N E S S E T
H:

     

    WHEREAS, the Borrowers, the
other Credit Parties signatory thereto, the Lenders and L/C Issuers party
thereto, and the Administrative Agent are parties to that certain Revolving
Credit Agreement, dated as of February 26, 2007 (as amended, restated,
supplemented and revised from time to time, the “Credit Agreement”), pursuant
to which the Lenders have committed to make certain loans and other extensions
of credit to the Borrowers upon the terms and conditions set forth therein;
and

     

    WHEREAS, the Borrowers have
requested that the Lenders make certain changes to the Credit Agreement and that
the Lenders consent to certain actions of the Borrowers; and

     

    WHEREAS, the Lenders are
willing, upon and subject to certain conditions, to amend the Credit Agreement
in certain respects, all in accordance with and subject to the terms and
conditions set forth herein.

     

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

     

    1.           Defined
Terms.  Capitalized terms used herein and not otherwise defined
herein shall have the meanings given to such terms in the Credit
Agreement.

     

    2.           Waiver. The Administrative Agent
and the undersigned Lenders, subject to the terms and conditions of this
Agreement, including without limitation the conditions to effectiveness
specified in Section
7 below, hereby waive any Default or Event of Default solely occurring by
reason of the Borrower’s failure to comply with (a) the Minimum Consolidated
EBITDA covenant set forth in Section 10.01 of the
Credit Agreement solely for the period ending March 31, 2008 and (b) the
Leverage Ratio covenant set forth in Section 10.02 solely
for the period ending March 31, 2008.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.           Amendments
to the Credit Agreement.  

     

    (a)           Section 1.01 of the
Credit Agreement, Definitions, is
hereby amended by adding the following definitions in the appropriate
alphabetical order:

     

    “Second Amendment
Date” means the effective date of the Waiver and Second Amendment to
Revolving Credit Agreement dated as of May 5, 2008.

    

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

     

    (b)           Section 1.01 of the
Credit Agreement, Definitions, is
hereby amended by deleting the definitions of “Consolidated EBITDA”
and “Leverage
Ratio” in their entirety and substituting in lieu thereof the
following:

     

    “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 the Agreement, the Term Credit Agreement and the Prior 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.

    

    “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; provided that, notwithstanding anything contained herein to the contrary,
for purposes of calculating the Leverage Ratio for the fiscal quarter ending as
of (i) June 30, 2008, the amount of Consolidated EBITDA required in clause (b)
of this definition shall be determined by taking the amount of Consolidated
EBITDA for the six months ended as of June 30, 2008 and multiplying that amount
by two (i.e. 6 months Consolidated EBITDA times 2) and (ii)
September 30, 2008, the amount of Consolidated EBITDA required in clause (b) of
this definition shall be determined by taking the amount of Consolidated EBITDA
for the nine months
ended as of September 30, 2008 and multiplying that amount by four and dividing
the result by three (i.e. 9 months Consolidated EBITDA times 4/3).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (c)           Section 9.05 of the
Credit Agreement, Limitation on Issuance of
Equity Interests, is hereby amended by deleting clause (e) in its
entirety and inserting the following in lieu thereof:

    

    “(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.”

     

    (d)           Section 10.01, Minimum Consolidated
EBITDA, of the Credit Agreement is hereby amended by deleting such
Section in its entirety and inserting the following in lieu
thereof:

     

    
             
“SECTION 10.01 Minimum Consolidated
EBITDA.  The Credit Parties shall not permit Consolidated
EBITDA for the indicated period ending on any date set forth in the table below
to be less than the amount set forth opposite such date:

    

     

    

    
      	 	
              Measurement Period
      Ending

            	 
      	
              Consolidated
      

              EBITDA

               

            
	 	
              June
      30, 2008

            	
              (6
      Months)

            	
              $8.6
      million

            
	 	
              September
      30, 2008

            	
              (9
      Months)

            	
              $27.5
      million

            
	 	
              December 31,
      2008

            	
              (12
      Months)

            	
              $41.0
      million

            
	 	
              March
      31, 2009

            	
              (12
      Months)

            	
              $54.1
      million

            
	 	
              June
      30, 2009

            	
              (12
      Months)

            	
              $61.3
      million

            
	 	
              September
      30, 2009

            	
              (12
      Months)

            	
              $72.2
      million

            
	 	
              December 31,
      2009

            	
              (12
      Months)

            	
              $78.9
      million

            
	 	
              March
      31, 2010

            	
              (12
      Months)

            	
              $78.9
      million

            
	 	
              June
      30, 2010

            	
              (12
      Months)

            	
              $78.1
      million

            
	 	
              September
      30, 2010

            	
              (12
      Months)

            	
              $76.5
      million

            
	 	
              December 31,
      2010

            	
              (12
      Months)

            	
              $78.8
      million

            

    

    

     

    (e)           Section 10.02, Leverage Ratio, of
the Credit Agreement is hereby amended by deleting such Section in its entirety
and inserting the following in lieu thereof:

     

     

           
“SECTION 10.02   Leverage
Ratio.  The Credit Parties shall not permit the Leverage Ratio
for the Credit Parties as of any date set forth in the table below to be greater
than the amount set forth opposite such date:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Measurement Period
      Ending

               

            	
              Leverage
      Ratio

            
	 	
              June
      30, 2008

            	
              5.0x

            
	 	
              September
      30, 2008

            	
              3.0x

            
	 	
              December 31,
      2008

            	
              2.6x

            
	 	
              March
      31, 2009

            	
              2.2x

            
	 	
              June
      30, 2009

            	
              1.7x

            
	 	
              September
      30, 2009

            	
              1.5x

            
	 	
              December 31,
      2009

            	
              1.5x

            
	 	
              March
      31, 2010

            	
              1.5x

            
	 	
              June
      30, 2010

            	
              1.5x

            
	 	
              September
      30, 2010

            	
              1.6x

            
	 	
              December 31,
      2010

            	
              1.5x

            

    

    

    4.           Affirmation
and Acknowledgment of the Borrowers.  The Borrowers
hereby ratify and confirm all of their Obligations to the Lenders, including,
without limitation, the Loans, and the Borrowers hereby affirm their absolute
and unconditional promise to pay to the Lenders all indebtedness, obligations
and liabilities in respect of the Loans, the Letters of Credit, and all other
amounts due under the Credit Agreement and the other Loan Documents as amended
hereby.  The Borrowers hereby confirm that the Obligations are and
remain secured pursuant to the Loan Documents and pursuant to all other
instruments and documents executed and delivered by the Borrowers as security
for the Obligations.

     

    5.           No Other
Waivers, Amendments or Consents.  Except for the
waiver in Section
2, the consents in Section 3 hereof and
the amendments expressly set forth and referred to in Section 4 hereof, the
Credit Agreement shall remain unchanged and in full force and
effect.  The waiver and consents contained herein shall not extend
beyond the terms expressly set forth herein for such waiver and consents, nor
impair any right or power accruing to the Administrative Agent or any Lender
with respect to any other Default or Event of Default or any Default or Event of
Default which occurs after the date hereof.  Nothing in this Agreement
is intended or shall be construed to be a novation of any Obligations or any
part of the Credit Agreement or any of the other Loan Documents or to affect,
modify or impair the continuity or perfection of the Administrative Agent’s
Liens under the Credit Agreement and Loan Documents.

     

    6.           Representations,
Warranties and Covenants.  To induce the undersigned Lenders to
enter into this Agreement, the Credit Parties hereby warrant, represent and
covenant to and with to the Lenders and the Administrative Agent that: (a) this Agreement
has been duly authorized, executed and delivered by the Credit Parties; (b) this
Agreement and the Credit Agreement as amended hereby constitute legal, valid and
binding obligations of the Credit Parties, enforceable in accordance with their
respective terms; (c) after giving effect to this Agreement, no Default or Event
of Default has occurred and is continuing as of this date; (d) no approval or
consent of, or filing with, any governmental agency or authority is required to
make valid and legally binding the execution, delivery or performance by the
Credit Parties of this Agreement or the Credit Agreement as amended hereby; and
(e) after giving effect to this Agreement, all of the representations and
warranties made by the Credit Parties in the Credit Agreement are true and
correct in all material respects on and as of the date of this Agreement (except
to the extent that any such representations or warranties expressly referred to
a specific prior date and except for changes therein expressly permitted or
expressly contemplated by the Credit Agreement or the other Loan
Documents).  Any breach by the Credit Parties of any of its
representations, warranties and covenants contained in this Section 7 shall be an
Event of Default under the Credit Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    7.           
Conditions
to Effectiveness.  This Agreement shall not become effective
unless and until the Administrative Agent has received (a) payment from the
Borrowers of an amendment fee in an amount equal to 0.25% times the
Commitments, (b) one or more counterparts of this Agreement, duly executed,
completed and delivered by the Borrowers, the other Credit Parties and the
Required Lenders and (c) a fully-executed amendment to the Term Credit
Agreement, in substantially the form attached hereto as Exhibit
A.

     

    8.           Reimbursement
of Expenses.  The Borrowers hereby agree to reimburse the
Administrative Agent on demand for all reasonable fees and reasonable
out-of-pocket costs and expenses (including without limitation the reasonable
and actual fees and expenses of its counsel) incurred by the Administrative
Agent in connection with the negotiation, documentation and consummation of this
Agreement and the other documents executed in connection herewith and the
transactions contemplated hereby.

     

    9.           Governing
Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK FOR CONTRACTS TO BE PERFORMED
ENTIRELY WITHIN SAID STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA.

     

    10.           Severability
of Provisions.  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 provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.  To the
extent permitted by applicable law, the Borrowers hereby waive any provision of
law that renders any provision hereof prohibited or unenforceable in any
respect.

     

    11.           Counterparts.  This
Agreement may be executed in any number of several counterparts, all of which
shall be deemed to constitute but one original and shall be binding upon all
parties, their successors and permitted assigns.  Delivery of an
executed signature page of this Agreement by facsimile transmission or
electronic transmission shall be as effective as delivery of a manually executed
counterpart hereof.

     

    12.           Entire
Agreement.  The Credit Agreement as amended through this
Agreement embodies the entire agreement between the parties hereto relating to
the subject matter thereof and supersedes all prior agreements, representations
and understandings, if any, relating to the subject matter thereof.

     

    13.           No Strict
Construction.  The parties hereto have participated jointly in
the negotiation and drafting of this Agreement.  In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties hereto and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    14.           No Third
Party Reliance.  This Agreement is solely for the benefit of
the parties signatory hereto, their successors and permitted
assigns.  No waiver, consent or amendment pursuant to this Agreement
may be relied upon by any third parties.

     

    15.           Release.  The
Credit Parties hereby remise, release, acquit, satisfy and forever discharge the
Lenders, the Administrative Agent, the Collateral Agent, and the L/C Issuer and
their respective agents, employees, officers, directors, predecessors, attorneys
and all others acting or purporting to act on behalf of or at the direction of
the Lenders, the Administrative Agent, the Collateral Agent, or the L/C Issuer
of and from any and all manner of actions, causes of action, suit, debts,
accounts, covenants, contracts, controversies, agreements, variances, damages,
judgments, claims and demands whatsoever, in law or in equity, which any of such
parties ever had or now has against the Lenders, the Administrative Agent, the
Collateral Agent, and the L/C Issuer their respective agents, employees,
officers, directors, attorneys and all persons acting or purporting to act on
behalf of or at the direction of the Lenders or the Administrative Agent (“Releasees”), for, upon or by
reason of any matter, cause or thing whatsoever arising from, in connection with
or in relation to the Credit Agreement or any of the other Loan Documents
(including this Agreement) through the date hereof.  Without limiting
the generality of the foregoing, the Credit Parties waive and affirmatively
agree not to allege or otherwise pursue any defenses, affirmative defenses,
counterclaims, claims, causes of action, setoffs or other rights they do, shall
or may have as of the date hereof, including, but not limited to, the rights to
contest any conduct of the Lenders, Administrative Agent or other Releasees on
or prior to the date hereof.

     

    

    [Remainder
of page intentionally blank; next page is signature page]

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    IN WITNESS WHEREOF, the
parties have caused this Second Amendment to Revolving Credit Agreement to be
duly executed by their respective officers or representatives thereunto duly
authorized, as of the date first above written.

     

    
      	 	BORROWERS:
	 	 	 
	 	JAMES
      RIVER COAL COMPANY
	 	
               

            	 
	 	 	 
	 	
              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	
              JAMES
      RIVER COAL SERVICE COMPANY

            
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	LEECO,
      INC.
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	TRIAD
      MINING, INC.
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	TRIAD
      UNDERGROUND MINING, LLC
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 

    

     

     

    
      
        JAMES
RIVER COAL COMPANY

        SECOND
AMENDMENT TO REVOLVING CREDIT AGREEMENT

        SIGNATURE
PAGE

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	 	 	 
	 	BLEDSOE
      COAL CORPORATION
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	JOHNS
      CREEK ELKHORN COAL CORPORATION
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	JAMES
      RIVER COAL SALES, INC.
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	BLEDSOE
      COAL LEASING COMPANY
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            

    

    
      	 	 	 
	 	 	 
	 	BLUE
      DIAMOND COAL COMPANY
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 

    

     

    
      
        JAMES
RIVER COAL COMPANY

        SECOND
AMENDMENT TO REVOLVING CREDIT AGREEMENT

        SIGNATURE
PAGE

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	MCCOY
      ELKHORN COAL CORPORATION
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	GUARANTORS:
	 	 	 
	 	 	 
	 	BDCC
      HOLDING COMPANY, INC.
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	EOLIA
      RESOURCES, INC.
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	SHAMROCK
      COAL COMPANY, INCORPORATED
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 
	 	 	 
	 	JOHNS
      CREEK COAL COMPANY
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 

    

     

    
      
        JAMES
RIVER COAL COMPANY

        SECOND
AMENDMENT TO REVOLVING CREDIT AGREEMENT

        SIGNATURE
PAGE

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	JOHNS
      CREEK PROCESSING COMPANY
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ Peter T. Socha

            
	 	 	
              Name:
      Peter T. Socha

            
	 	 	
              Title:
      Chief Executive Officer

            
	 	 	 

    

     

    
      
        JAMES
RIVER COAL COMPANY

        SECOND
AMENDMENT TO REVOLVING CREDIT AGREEMENT

        SIGNATURE
PAGE

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	 	
              LENDER, ADMINISTRATIVE
      AGENT AND COLLATERAL AGENT:

            
	 	 	 
	 	 	
              GENERAL
      ELECTRIC CAPITAL CORPORATION

            
	 	 	 
	 	 	 
	 	

              

              By:

            	
              /s/ James DeSantis

            
	 	 	
              Name:
      James DeSantis

            
	 	 	
              Title:
      Duly Authorized Signatory

            

    

     

    
      
        JAMES
RIVER COAL COMPANY

        SECOND
AMENDMENT TO REVOLVING CREDIT AGREEMENT

        SIGNATURE
PAGE

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
A

    

    [Term
Loan Credit Agreement Amendment]Loan Agreement dated May 2, 2008

 Finance 
 

 
 This Loan Agreement (the “Agreement”) is concluded
this 28th April, 2008, in Luxemburg by and between: 
 ARCELORMITTAL FINANCE, a Luxemburg société en commandite par actions, , with a share capital of Euros 300 000, having its registered office at 19, Avenue de la Liberté, registered with the Luxembourg
Register of Commerce and Companies under number B13.244, represented by two duly authorized signatories for the purpose hereof (the “Lender”), 
 and 
 Noble European Holdings B.V, a Dutch corporation, with a share capital of Euros 90.000 having its registered office at
Naritaweg 165, 1043 BW Amsterdam, the Netherlands, registered with the Company Register of Amsterdam under number 34274517 represented by David J. Fallon and Thomas L. Saeli, duly authorized for the purpose hereof (the “Borrower”)

 The Lender and the Borrower are also referred to in this Agreement as a “Party” and collectively as the
“Parties”. 
 Unless otherwise provided in this Agreement, all capitalised terms and definitions used herein shall have the same
meaning ascribed to them in a Facilities Agreement entered into between Noble European Holding BV, and BNP Paribas. on August 31, 2007 (the “Facilities Agreement”). 
 WHEREAS, On March 28, 2008, Noble European Holdings B.V. (“Noble BV”), a subsidiary of Noble International, Ltd. (the “Company”) entered
into a Letter Agreement (the “Letter Agreement”) with BNP Paribas (“BNP”) and ArcelorMittal S.A. with respect to the Facilities Agreement dated as of August 31, 2007 by and among Noble BV, certain of its subsidiaries

  

			
	ArcelorMittal Finance SCA	  	www.arcelormittal.com
	19, avenue de la Liberté	  	Trade register: Luxembourg B 13244
	L-2930 Luxembourg	  	
	G.D. of Luxembourg	  	

  

 1 

 
named therein and BNP as arranger, agent, security agent and lender. Pursuant to the Letter Agreement, the Lenders agreed to, among other things,
(i) waive breaches relating to the failure to timely deliver financial statements for 2007, an accompanying compliance certificate and an annual budget for 2008 and (ii) waive any breach of the Fixed Charge Cover Ratio and Leverage Ratio
for the period ending December 31, 2007. 
 The waivers provided by the Lenders is subject to several conditions, including, without limitation,
(i) that Noble BV provide a prepayment in the amount of 20,000,000 no later than May 2, 2008, which prepayment shall be funded by the proceeds of subordinated loan provided to Noble BV by ArcelorMittal or one of its affiliates. 

WHEREAS, ArcelorMittal S.A, in consideration of the waivers set out in the Letter Agreement granted by BNP to the Company has undertaken to BNP either to make
or procure that one of its affiliates makes, by no later than 2 May 2008, funding in an aggregate amount of 20,000,000 available by way of subordinated loan to the Company as described in the present Agreement and in accordance with paragraph
7(f) of the Letter Agreement. 
 WHEREAS, the Borrower wishes to obtain and ArcelorMittal Finance is willing to provide financing on the terms set
forth herein; 
 NOW, THEREFORE, the Parties have agreed as follows, it being understood that the provisions of the present Agreement shall be
subordinated to the respect of the provisions of (i) the Facilities Agreement and of (ii) the Letter Agreement. 
  

	1.	SUBJECT OF AGREEMENT AND PURPOSE OF THE LOAN 

  

	1.1.	Pursuant to the terms and conditions hereof, the Lender agrees to lend to the Borrower an amount in principal of € 20.000.000 (twenty million) (the “Loan”).

 The Loan is provided for the purposes of making a Voluntary Prepayment by the Borrower of Term Facility Loans granted by BNP
by an aggregate amount equal to € 20 000 000. 
  

	2.	TRANCHES AND CONDITIONS OF THE LOAN 

  

	2.1.	Tranches. The Lender shall grant the Loan in one (1) tranche. Tranche shall be provided to the Borrower not later than May 2, 2008 

  

	2.2	Disbursement. The Lender shall pay the drawing in €uros by bank transfer to the following BNP Paribas Amsterdam account in the name of Noble European Holdings BV.

     IBAN : NL66BNPA0227911520         BIC : BNPANL2A 

 

	2.3	Repayment. The Loan shall be repaid in €uros by bank transfer to the bank account of the Lender within 10 Business Days after the date when the Facilities are repaid in
full by the Borrower and all the Total Commitments are cancelled. Repayments shall be made available to such account of the Lender, as the Lender shall have previously notified to the Borrower 

  

 2 

	2.4.	Interest. Provided no Default is continuing at the time of payment or would occur as a result of making the payment (in each case, other than, for the avoidance of doubt, any
Default which has occurred as at the date of the Letter Agreement and which is waived under this Letter Agreement), interest shall accrue on the Loan at an annual rate of EURIBOR plus the Margin. The interest shall accrue from day to day, and be
computed for the actual number of days elapsed.; 

  

	2.5.	Default Interest. In the event of any delay in payment by the Borrower of any amount due hereunder, and if this delay is not due to the Subordination, the Borrower shall pay,
in addition to regular interest, without any notice from the Lender to this effect a default interest at a rate of 1 % per annum starting from the date following the respective due date of payment until the date of actual payment (inclusive).

  

	2.6	Capitalisation of Interest. Any default interest due hereunder shall be capitalized if it remains outstanding for a period exceeding 6 (six) months. Capitalized interests
will bear interest according the rate defined in 2.4. 

  

	2.7.	Payment of Interest and capitalised interest. The Borrower shall pay the interest on the amount of Loan and the capitalised interest every 6 (six) months, end of June and end
of December 

  

	2.8	Voluntary Prepayment of the Loan. Subject to the Repayment or Prepayment of the Facilities in full by the Borrower and to the cancellation of all the Total Commitments, the
Borrower may from time to time, upon not less than 3 days’ prior written notice to the Lender, prepay the whole or any part of the principal amount of the Loan then outstanding, together with the corresponding interest, without any additional
fee or penalty. 

  

	2.9.	Mandatory Repayment of the Loan. Subject to the Repayment or Prepayment of the Facilities in full by the Borrower and to the cancellation of all the Total Commitments the
Lender shall have the right to demand early repayment of all or any amounts due hereunder in the event of occurrence of any event of default set forth in Article 4 below (the “Event of Default”). In the event the Lender
decides to make such a demand, he shall send to the Borrower a written notice to this effect describing the Event of Default occurred and demanding immediate payment. 

  

	2.10.	Taxes. All payments to be made hereunder by the Borrower shall be made in full, free and clear and without any deduction or withholding for, or on account of, any taxes
imposed in Netherlands under applicable Dutch law, excluding income tax of the Lender, all taxes, bank cost and charges, connected with the transfer of funds, shall be paid by the Lender. 

 In the event that such deduction or withholding is required by Dutch law, the Borrower shall, on the date of the relevant payment, pay such additional
amounts as may be necessary to ensure that the Lender, receives an amount equal to the full amount which it would have received had there been no such deduction or withholding. 
 If the Dutch law does not allow implementation of the aforementioned mechanism, the Parties shall amend this Agreement to increase the amounts due by the
Borrower by such amount as is necessary to ensure that after the relevant deduction or withholding has been made by the Borrower, the Lender receives the full amount of the principal and interests specified herein as if no such deduction or
withholding had been required by Dutch law or made by the Borrower. 
  

 3 

	3.	RIGHTS AND OBLIGATIONS OF THE PARTIES 

  

	3.1.	The Borrower shall bear all expenses associated with repayment of the Loan to the Lender, and shall be obliged to assist the Lender, if necessary, in completing all formalities
prescribed by Dutch tax legislation for advance exemption of the Lender from payment of any taxes in respect of the amounts to be paid to the Lender under this Agreement. 

  

	3.2.	At any time prior to the Borrower’s full discharge of its obligations hereunder, the Lender shall have the right, by informing the Borrower in advance, to verify that the Loan
is being used for its intended purpose, and the Borrower shall be obliged to assist the Lender in the course of such verification. 

  

	3.3.	The Borrower’s obligation to repay the Loan and pay all other amounts due to the Lender hereunder shall be considered discharged only after the crediting of the funds to the
Lender bank’s correspondent account, which shall be confirmed by a statement of account issued by the Lender’s bank. 

  

	4.	EVENTS OF DEFAULT 

  

	4.1.	The Parties agree that any of the following shall constitute an Event of Default: 

  

	 	(i)	the Borrower fails to pay when due any amount payable by it hereunder, unless such failure is remedied within six (6) days from the due date; 

  

	 	(ii)	the Borrower fails to comply with any other provision of this Agreement, and where such failure is capable of remedy is not remedied within ten (10) days after receipt of
written notice from the Lender; 

  

	4.2.	In the event of occurrence of any Event of Default and provided the Facilities have been repaid or prepaid in full by the Borrower and the Total Commitments have been cancelled, the
Lender shall have the right, by notice to the Borrower, to declare all or any portion of the principal of, and accrued interest on, the Loan (together with any other amounts accrued or payable hereunder) to be, and the same shall thereupon become
(anything in this Agreement to the contrary notwithstanding) immediately due and payable without any further notice and without any presentment, demand or protest of any kind, and the Borrower shall, upon receipt of such notice from the Lender,
immediately make any payment required by the Lender in the notice. 

  

	5.	APPLICABLE LAW AND JURISDICTION 

 The rights and obligations of the
Parties under this Agreement shall be interpreted in accordance with the laws of Luxemburg, the courts of Luxemburg being competent to hear and rule on any dispute, objection or difficulty which might arise between the parties as regards the
interpretation of this Agreement. 
  

 4 

	6.	SET OFF 

 Provided the Facilities have been repaid
or prepaid in full by the Borrower and the Total Commitments have been cancelled, the Lender may, but shall not obliged to set-off against any obligation of the Borrower due and payable by it hereunder any money due by the Lender to the Borrower.

  

	7.	MISCELLANEOUS PROVISIONS 

  

	7.1.	All amendments to this Agreement shall be valid only when executed in writing and signed by duly authorised representatives of the Parties. 

  

	7.2.	All notices and communications under this Agreement must be drafted in writing and sent to the addresses of the Parties specified on the first page hereof and/or to the fax numbers
specified below. Either Party may change its address for receipt of notifications by sending a notification to the other Party. A notification shall be considered received: (a) on the day of its sending, if sent by fax and with electronic
confirmation of receipt; or (b) on the day of its delivery, if delivered in person or by international courier mail, which shall be confirmed by a receipt slip. 

 For the Lender: 
  

			
	Facsimile number:	  	+352 4792 2189
	Attention:	  	Mr. Armand Gobber/Alain Gilniat
	Address:	  	19, Avenue de la Liberté, L 2930 Luxemburg, Grand duchy of Luxemburg
	E-mail :	  	 armand.gobber@arcelormittal.com
 alain.gilniat@arcelormittal.com

 For Borrower: 
  

			
	Facsimile number:	  	F: +32 (0)9 210 03 70
	Attention:	  	Mrs Marijke Deleu
	Address:	  	Noble International Europe, Verlorenbroodstraat 122/b4, B- 9820 Merelbeke
	T:	  	+32 (0)9 210 03 49
	E-mail:	  	marijke.deleu@nobleintl.com

  

	7.3.	The Lender may at any time assign or otherwise transfer all or any part of its rights and obligations hereunder to ArcelorMittal Affiliates. 

  

 5 

			
	 ArcelorMittal Finance

		
	By:	 	 /s/ Armand Gobber

	Name:	 	Armand Gobber
	Title:	 	Vice President Finance & Funding
		
	By:	 	 /s/ Albert Rinnen

	Name:	 	Albert Rinnen
	Title:	 	Vice President Controlling

  

 6 

			
	 Noble European Holdings B.V

		
	By:	 	 /s/ Thomas L. Saeli

	Name:	 	Thomas L. Saeli
	Title:	 	
		
	By:	 	 /s/ David J. Fallon

	Name:	 	David J. Fallon
	Title:	 	

  

 7

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