Document:

Amended and Restated Guarantee and Collateral Agreement

 Exhibit 10.1 

 
  
 AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT 
 As Amended and Restated
as of June 1, 2011 
 Among 
 ALPHA NATURAL RESOURCES, INC., 
 as Borrower, 

CERTAIN SUBSIDIARIES OF THE BORROWER 
 IDENTIFIED HEREIN 
 and 

CITICORP NORTH AMERICA, INC., 
 as Collateral Agent, 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
		  	 ARTICLE I
 DEFINITIONS
	  			
			
	Section 1.01.	  	Credit Agreement.	  	 	2	  
			
	Section 1.02.	  	Other Defined Terms.	  	 	2	  
			
		  	 ARTICLE II
 GUARANTEE
	  			
			
	Section 2.01.	  	Guarantee.	  	 	6	  
			
	Section 2.02.	  	Guarantee of Payment.	  	 	6	  
			
	Section 2.03.	  	No Limitations, etc.	  	 	6	  
			
	Section 2.04.	  	Reinstatement.	  	 	8	  
			
	Section 2.05.	  	Agreement To Pay; Subrogation.	  	 	8	  
			
	Section 2.06.	  	Information.	  	 	8	  
			
	Section 2.07.	  	Maximum Liability.	  	 	8	  
			
		  	 ARTICLE III
 PLEDGE OF SECURITIES
	  			
			
	Section 3.01.	  	Pledge.	  	 	8	  
			
	Section 3.02.	  	Delivery of the Pledged Collateral.	  	 	9	  
			
	Section 3.03.	  	Representations, Warranties and Covenants.	  	 	10	  
			
	Section 3.04.	  	Certification of Limited Liability Company and Limited Partnership Interests.	  	 	11	  
			
	Section 3.05.	  	Registration in Nominee Name; Denominations.	  	 	11	  
			
	Section 3.06.	  	Voting Rights; Dividends and Interest, etc.	  	 	12	  
			
		  	 ARTICLE IV
 SECURITY INTERESTS IN PERSONAL PROPERTY
	  			
			
	Section 4.01.	  	Security Interest.	  	 	14	  
			
	Section 4.02.	  	Representations and Warranties.	  	 	15	  
			
	Section 4.03.	  	Covenants.	  	 	18	  
			
	Section 4.04.	  	Other Actions.	  	 	20	  
			
	Section 4.05.	  	Covenants Regarding Patent, Trademark and Copyright Collateral.	  	 	22	  

  
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 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
		  	 ARTICLE V
 REMEDIES
	  			
			
	Section 5.01.	  	Remedies Upon Default.	  	 	23	  
			
	Section 5.02.	  	Application of Proceeds.	  	 	25	  
			
	Section 5.03.	  	Grant of License To Use Intellectual Property.	  	 	26	  
			
	Section 5.04.	  	Securities Act, etc.	  	 	26	  
			
		  	 ARTICLE VI
 INDEMNITY, SUBROGATION AND SUBORDINATION
	  			
			
	Section 6.01.	  	Indemnity and Subrogation.	  	 	27	  
			
	Section 6.02.	  	Contribution and Subrogation.	  	 	27	  
			
	Section 6.03.	  	Subordination.	  	 	27	  
			
		  	 ARTICLE VII
 MISCELLANEOUS
	  			
			
	Section 7.01.	  	Notices.	  	 	28	  
			
	Section 7.02.	  	Security Interest Absolute.	  	 	28	  
			
	Section 7.03.	  	Binding Effect; Several Agreement.	  	 	28	  
			
	Section 7.04.	  	Successors and Assigns.	  	 	28	  
			
	Section 7.05.	  	Collateral Agent’s Fees and Expenses; Indemnification.	  	 	29	  
			
	Section 7.06.	  	Collateral Agent Appointed Attorney-in-Fact.	  	 	29	  
			
	Section 7.07.	  	Applicable Law; Jurisdiction; Consent to Service of Process; WAIVER OF JURY TRIAL.	  	 	30	  
			
	Section 7.08.	  	Waivers; Amendment.	  	 	30	  
			
	Section 7.09.	  	Severability.	  	 	30	  
			
	Section 7.10.	  	Counterparts.	  	 	31	  
			
	Section 7.11.	  	Headings.	  	 	31	  
			
	Section 7.12.	  	Termination or Release.	  	 	31	  
			
	Section 7.13.	  	Additional Subsidiaries.	  	 	32	  
			
	Section 7.14.	  	Right of Set-off.	  	 	32	  

  
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	Schedules	  	
		
	Schedule I	  	Guarantors
	Schedule II	  	Capital Stock; Debt Securities
	Schedule III	  	Intellectual Property
	Schedule IV	  	Limited Liability Company Interests
	Schedule V	  	Commercial Tort Claims
		
	Exhibits	  	
		
	Exhibit I	  	Form of Supplement to the Guarantee and Collateral Agreement
	Exhibit II	  	Form of Perfection Certificate
	Exhibit III	  	Form of Intercompany Note

 AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT, as amended and restated as of
June 1, 2011 (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), among ALPHA NATURAL RESOURCES, INC., a Delaware corporation (the “Borrower”) and each Wholly Owned
Domestic Subsidiary of the Borrower listed on the signature pages hereto and each future Wholly Owned Domestic Subsidiary that becomes a party hereto (each a “Guarantor” and together with the Borrower, individually an
“Obligor”, and collectively the “Obligors”) and CITICORP NORTH AMERICA, INC. (“CNAI”), in its capacity as collateral agent (together with any successor or assignee duly appointed to such capacity,
the “Collateral Agent”) for the Secured Parties. 
 RECITALS 

WHEREAS, this Agreement amends and restates that certain Guarantee and Collateral Agreement dated as of July 30, 2004 (the
“Original Closing Date”), between and among FC 2 Corp., a Delaware corporation (which subsequently merged with and into the Borrower), Foundation Coal Corporation, a Delaware corporation (which subsequently merged with and into the
Borrower), S2 Acquisition Corp. (which subsequently merged with and into Foundation PA Coal Company, LLC, a Delaware limited liability company, formerly known as Foundation PA Coal Company), certain Subsidiaries of the Borrower party thereto and the
Collateral Agent, as amended by Amendment No. 1 to Credit Agreement, dated as of May 22, 2009 (and effective July 31, 2009, the “Amendment No. 1 Effective Date”), and as supplemented by (i) Supplement
No. 1, dated as of September 2, 2005, (ii) Supplement No. 2, dated as of October 5, 2007, (iii) Supplement No. 3 dated as of July 31, 2009 and (iv) Supplement No. 4 dated as of February 2, 2011
(the “Existing Security Agreement”). 
 WHEREAS, pursuant to that certain Third Amended and Restated
Credit Agreement dated as of May 19, 2011 (as amended, modified, extended, renewed or replaced from time to time, the “Credit Agreement”) among the Borrower, the Lenders party thereto from time to time and CNAI, as
Administrative Agent and Collateral Agent, the Lenders have agreed to amend and restate the Second Amended and Restated Credit Agreement and make Loans and issue Letters of Credit upon the terms and subject to the conditions set forth therein;

 WHEREAS, certain Existing Obligations under the Second Amended and Restated Credit Agreement and the Existing Security
Documents are secured by certain Existing Collateral and are guaranteed or supported or otherwise benefited by the Existing Security Documents; 
 WHEREAS, the parties hereto intend that (a) any such Existing Obligations that remain unpaid and outstanding on and after the Third Amendment Effective Date shall continue to be secured by the
Existing Collateral and (b) the Existing Collateral and the Collateral shall secure the Existing Obligations and the Obligations of the Borrower and the other Loan Parties under this Agreement and the other Loan Documents; 

WHEREAS, it is a condition precedent to the effectiveness of the Credit Agreement and the obligations of the Lenders to make their
respective Loans and to issue (or 

  
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participate in) Letters of Credit under the Credit Agreement that the Obligors shall have executed and delivered this Agreement to the Collateral Agent for the benefit of the Lenders and the
other Secured Parties. 
 NOW, THEREFORE, in consideration of these premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I 

Definitions 
 SECTION 1.01. Credit Agreement. (a) Capitalized terms used in this Agreement and not otherwise defined herein have the respective meanings assigned thereto in the Credit Agreement. All terms
defined in the New York UCC (as defined herein) and not defined in this Agreement have the meanings specified therein. The term “instrument” shall have the meaning specified in Article 9 of the New York UCC. 

(b) The rules of construction specified in Section 1.02 of the Credit Agreement also apply to this Agreement.

 SECTION 1.02. Other Defined Terms. As used in this Agreement, the following terms have the meanings specified below:

 “Account Debtor” means any person who is or who may become obligated to any Obligor under, with respect to
or on account of an Account. 
 “Amendment No. 1 Effective Date” has the meaning assigned to such term in
the preliminary statement of this Agreement. 
 “Article 9 Collateral” has the meaning assigned to such
term in Section 4.01. 
 “Collateral” means Article 9 Collateral and Pledged Collateral. 

“Control Agreement” means any securities account control agreement or commodity account control agreement, as applicable
in form and substance reasonably satisfactory to the Collateral Agent establishing the Collateral Agent’s Control with respect to any Securities Accounts or Commodities Accounts, as applicable. 

“Copyright License” means any written agreement, now or hereafter in effect, granting any right to any third party under
any Copyright now or hereafter owned by any Obligor or that any Obligor otherwise has the right to license, or granting any right to any Obligor under any Copyright now or hereafter owned by any third party, and all rights of any Obligor under any
such agreement. 

  
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 “Copyrights” means all of the following now owned or hereafter acquired by
any Obligor: (a) all copyright rights in any work subject to the copyright laws of the United States or any other country, whether as author, assignee, transferee or otherwise; and (b) all registrations and applications for registration of
any such Copyright in the United States or any other country, including registrations, supplemental registrations and pending applications for registration in the United States Copyright Office, including those listed on Schedule III.

 “Credit Agreement” has the meaning assigned to such term in the preliminary statement of this Agreement.

 “Federal Securities Laws” has the meaning assigned to such term in Section 5.04. 

“General Intangibles” means all “General Intangibles” as defined in the New York UCC, including all choses in
action and causes of action and all other intangible personal property of any Obligor of every kind and nature (other than Accounts) now owned or hereafter acquired by any Obligor, including corporate or other business records, indemnification
claims, contract rights (including rights under leases, whether entered into as lessor or lessee, Swap Agreements and other agreements), Intellectual Property, goodwill, registrations, franchises, tax refund claims and any letter of credit,
guarantee, claim, security interest or other security held by or granted to any Obligor to secure payment by an Account Debtor of any of the Accounts. 
 “Guarantors” has the meaning assigned to such term in the preliminary statement of this Agreement. 
 “Intellectual Property” means all intellectual and similar property of every kind and nature now owned or hereafter acquired by any Obligor, including designs, Patents, Copyrights,
Trademarks, Patent Licenses, Copyright Licenses, Trademark Licenses, trade secrets, domain names, confidential or proprietary technical and business information or know-how. 
 “Intercompany Note” shall mean a promissory note substantially in the form of Exhibit III. 
 “Loan Document Obligations” means (a) the due and punctual payment (i) by the Borrower of the unpaid principal of and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans made to the Borrower, when and as due, whether at maturity, by acceleration, upon one or more dates
set for prepayment or otherwise, (ii) by the Borrower of each payment required to be made by the Borrower under the Credit Agreement in respect of any Letter of Credit, when and as due, including payments in respect of reimbursement of
disbursements, interest thereon (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) and obligations to provide cash
collateral and (iii) by the Borrower with respect to the Credit Agreement and by the applicable Loan Party with respect to any Loan Document of all monetary obligations to any of the Secured Parties,

  
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including obligations to pay fees, expense and reimbursement obligations and indemnification obligations, whether primary, secondary, direct, contingent, fixed or otherwise (including interest
incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) and (b) the due and punctual payment and performance of all other obligations
of each Loan Party under or pursuant to the Credit Agreement and each of the other Loan Documents (other than the Obligations referred to in clause (b) of the definition of “Obligations”) (including interest incurred during the
pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) and (c) the due and punctual payment and performance of all the obligations of each Loan Party
under or pursuant to this Agreement and each of the other Loan Documents. 
 “New York UCC” means the Uniform
Commercial Code as from time to time in effect in the State of New York. 
 “Obligations” means (a) the
Loan Document Obligations and (b) the due and punctual payment and performance of all obligations of each Loan Party under each Swap Agreement (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other
similar proceeding, regardless of whether allowed or allowable in such proceeding) that (i) is in effect on the Third Amendment Effective Date with a counterparty that is a Lender or an Affiliate of a Lender as of any of (x) the Original
Closing Date, (y) the Amendment No. 1 Effective Date or (z) the Third Amendment Effective Date, or (ii) is entered into after the Original Closing Date with any counterparty that is a Lender or an Affiliate of a Lender at the
time such Swap Agreement is entered into and (c) the due and punctual payment and performance of all obligations of Borrower and any of its subsidiaries in respect of overdrafts and related liabilities owed to a Lender or any of its Affiliates
and arising from cash management services (including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management arrangements) (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding). 

“Obligors” has the meaning assigned to such term in the preliminary statement of this Agreement. 

“Original Closing Date” has the meaning assigned to such term in the preliminary statement of this Agreement.

 “Patent License” means any written agreement, now or hereafter in effect, granting to any third party any
right to make, use or sell any invention covered by a Patent, now or hereafter owned by any Obligor or that any Obligor otherwise has the right to license or granting to any Obligor any right to make, use or sell any invention covered by a Patent,
now or hereafter owned by any third party. 
 “Patents” means all of the following now owned or hereafter
acquired by any Obligor: (a) all letters patent of the United States or the equivalent thereof in any other country, 

  
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and all applications for letters patent of the United States or the equivalent thereof in any other country, including those listed on Schedule III, and (b) all reissues,
continuations, divisions, continuations-in-part or extensions thereof, and the inventions disclosed or claimed therein, including the right to make, use and/or sell the inventions disclosed or claimed therein. 

“Perfection Certificate” means a certificate substantially in the form of Exhibit II, completed and
supplemented with the schedules and attachments contemplated thereby, and duly executed by a Financial Officer of the Borrower and the General Counsel of the Borrower. 
 “Pledged Collateral” has the meaning assigned to such term in Section 3.01. 
 “Pledged Debt” has the meaning assigned to such term in Section 3.01. 
 “Pledged Securities” means any promissory notes, stock certificates or other certificated securities now or hereafter included in the Pledged Collateral, including all certificates,
instruments or other documents representing or evidencing any Pledged Collateral. 
 “Pledged Stock” has the
meaning assigned to such term in Section 3.01. 
 “Secured Parties” means (a) the Lenders (and any
Affiliate of a Lender to which any obligation referred to in clause (c) of the definition of the term “Obligations” is owed), (b) the Administrative Agent, (c) the Collateral Agent (d) each Issuing Bank, (e) each
counterparty to any Swap Agreement entered into with a Loan Party the obligations under which constitute Obligations, (f) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document and (g) the
successors and permitted assigns of each of the foregoing. 
 “Security Interest” has the meaning assigned to
such term in Section 4.01. 
 “Trademark License” means any written agreement, now or hereafter in effect,
granting to any third party any right to use any Trademark now or hereafter owned by any Obligor or that any Obligor otherwise has the right to license, or granting to any Obligor any right to use any Trademark now or hereafter owned by any third
party. 
 “Trademarks” means all of the following now owned or hereafter acquired by any Obligor: (a) all
trademarks, service marks, corporate names, company names, business names, trade dress, logos, other source or business identifiers, designs and general intangibles of like nature, all registrations thereof (if any), and all applications filed in
connection therewith in the United States Patent and Trademark Office or any similar offices in any State of the United States or any other country or any political subdivision thereof, and all renewals thereof, including those listed on
Schedule III and (b) all goodwill associated therewith or symbolized thereby. 

  
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 ARTICLE II 
 Guarantee 
 SECTION 2.01. Guarantee. Each Guarantor
unconditionally guarantees, jointly and severally with the other Guarantors, the due and punctual payment and performance of the Obligations. Each Guarantor further agrees that the Obligations may be extended or renewed, in whole or in part, without
notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Obligation. Each Guarantor waives presentment to, demand of payment from and protest to the Borrower or any other
Loan Party of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment. 
 SECTION 2.02. Guarantee of Payment. Each Guarantor further agrees that its guarantee hereunder constitutes a guarantee of payment when due and not of collection, and waives any right to
require that any resort be had by the Collateral Agent or any other Secured Party to any security held for the payment of the Obligations or to any balance of any deposit account or credit on the books of the Collateral Agent or any other Secured
Party in favor of the Borrower or any other person. 
 SECTION 2.03. No Limitations, etc. (a) Except for
termination of a Guarantor’s obligations hereunder as expressly provided for in Section 7.12, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason,
including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the
Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by: 

(i) the failure of the Administrative Agent, the Collateral Agent or any other Secured Party to assert any claim or demand
or to exercise or enforce any right or remedy under the provisions of any Loan Document or otherwise; 
 (ii) any
rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under this Agreement; 

(iii) the failure to perfect any security interest in, or the exchange, substitution, release or any impairment of, any
security held by the Collateral Agent or any other Secured Party for the Obligations; 
 (iv) any default,
failure or delay, willful or otherwise, in the performance of the Obligations; 
 (v) any other act or omission
that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a 

  
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matter of law or equity (other than the indefeasible payment in full in cash of all the Obligations), 
 (vi) any illegality, lack of validity or enforceability of any Obligation, 
 (vii) any change in the corporate existence, structure or ownership of the Borrower, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Borrower or its assets or any
resulting release or discharge of any Obligation, 
 (viii) the existence of any claim, set-off or other rights
that the Guarantor may have at any time against the Borrower, the Collateral Agent, or any other corporation or person, whether in connection herewith or any unrelated transactions, provided that nothing herein will prevent the assertion of any such
claim by separate suit or compulsory counterclaim, 
 (ix) and any other circumstance (including without
limitation, any statute of limitations) or any existence of or reliance on any representation by the Collateral Agent that might otherwise constitute a defense to, or a legal or equitable discharge of, the Borrower or the Guarantor or any other
guarantor or surety. 
 Each Guarantor expressly authorizes the Secured Parties to take and hold security for the payment and performance of the
Obligations, to exchange, waive or release any or all such security (with or without consideration), to enforce or apply such security and direct the order and manner of any sale thereof in their sole discretion or to release or substitute any one
or more other guarantors or obligors upon or in respect of the Obligations, all without affecting the obligations of any Guarantor hereunder. 
 (b) To the fullest extent permitted by applicable law, each Guarantor waives any defense based on or arising out of any defense of the Borrower or any other Loan Party or the unenforceability of the
Obligations or any part thereof from any cause, or the cessation from any cause of the liability of the Borrower or any other Loan Party, other than the indefeasible payment in full in cash of all the Obligations. The Collateral Agent and the other
Secured Parties may, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the
Obligations, make any other accommodation with the Borrower or any other Loan Party or exercise any other right or remedy available to them against the Borrower or any other Loan Party, without affecting or impairing in any way the liability of any
Guarantor hereunder except to the extent the Obligations have been fully and indefeasibly paid in full in cash. To the fullest extent permitted by applicable law, each Guarantor waives any defense arising out of any such election even though such
election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against the Borrower or any other Loan Party, as the case may be, or any security.

  
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 SECTION 2.04. Reinstatement. Each Guarantor agrees that its guarantee hereunder
shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by the Administrative Agent or any other Secured Party upon the bankruptcy
or reorganization of the Borrower, any other Loan Party or otherwise. 
 SECTION 2.05. Agreement To Pay;
Subrogation. In furtherance of the foregoing and not in limitation of any other right that the Collateral Agent or any other Secured Party has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any
other Loan Party to pay any Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the
Collateral Agent for distribution to the applicable Secured Parties in cash the amount of such unpaid Obligation. Upon payment by any Guarantor of any sums to the Collateral Agent as provided above, all rights of such Guarantor against the Borrower,
or other Loan Party or any other Guarantor arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Article VI. 

SECTION 2.06. Information. Each Guarantor assumes all responsibility for being and keeping itself informed of the financial
condition and assets of the Borrower and each other Loan Party, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and
agrees that none of the Collateral Agent or the other Secured Parties will have any duty to advise such Guarantor of information known to it or any of them regarding such circumstances or risks. 

SECTION 2.07. Maximum Liability. Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor (other than Holdings and the Borrower) hereunder and under the other Loan Documents shall in no event exceed the amount which can be guaranteed by such Guarantor under applicable federal and state laws relating to the
insolvency of debtors (after giving effect to the right of contribution established in Section 6.02). 
 ARTICLE III

 Pledge of Securities 
 SECTION 3.01. Pledge. As security for the payment or performance, as the case may be, in full of the Obligations, each Obligor hereby assigns and pledges to the Collateral Agent, its
successors and assigns, for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, a security interest in all of such Obligor’s right, title and
interest in, to and under: (a) any Equity Interests owned by it as of the Third Amendment Effective Date (which shall be listed on Schedule II in accordance with and to the extent required by Section 3.03(a)) and any other Equity
Interests obtained in the future by such Obligor and any certificates representing all such Equity Interests 

  
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(the “Pledged Stock”); provided that the Pledged Stock shall not include (i) more than 65% of the issued and outstanding voting equity interests of any Foreign
Subsidiary, (ii) to the extent applicable law requires that a Subsidiary of such Obligor issue directors’ qualifying shares, such shares or nominee or other similar shares, or (iii) any Equity Interests of a person that is not
directly a Subsidiary of such Obligor; (b) (i) the debt securities held by such Obligor as of the Third Amendment Effective Date (which shall be listed on Schedule II in accordance with and to the extent required by
Section 3.03(a)), (ii) any debt securities in the future issued to such Obligor and (iii) any promissory notes and any other instruments, if any, held by such Obligor and evidencing Indebtedness of the Borrower or any Subsidiary
thereof, and (iv) the Intercompany Note (collectively, the “Pledged Debt”); (c) subject to Section 3.06, all payments of principal or interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of, in exchange for or upon the conversion of, and all other proceeds received in respect of, the securities referred to in clauses (a) and (b) above; (d) subject to
Section 3.06, all rights and privileges of such Obligor with respect to the securities and other property referred to in clauses (a), (b) and (c) above; and (e) all proceeds of any of the foregoing (the items referred to in
clauses (a) through (e) above being collectively referred to as the “Pledged Collateral”); provided, however, that Pledged Collateral and all of the components of Pledged Collateral including Pledged Stock,
Pledged Debt and the collateral specified in clauses (c) and (d) above shall not include Excluded Assets or any assets not required to be pledged pursuant to Section 5.10 of the Credit Agreement. 

TO HAVE AND TO HOLD the Pledged Collateral, together with all right, title, interest, powers, privileges and preferences pertaining or
incidental thereto, unto the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, forever; subject, however, to the terms, covenants and conditions hereinafter set forth. 

SECTION 3.02. Delivery of the Pledged Collateral 

(a) Each Obligor agrees promptly to deliver or cause to be delivered to the Collateral Agent, for the benefit of the
Secured Parties, any and all Pledged Stock and Pledged Debt (to the extent required by Section 3.02(b)) held by it. 
 (b) Each Obligor will cause any Indebtedness for borrowed money held by it having an aggregate principal amount in excess of $10,000,000 (other than intercompany current liabilities incurred in the
ordinary course of business in connection with the cash management operations of the Borrower and the Subsidiaries) owed to such Obligor by any person to be evidenced by a duly executed promissory note that is pledged and delivered to the Collateral
Agent, including the Intercompany Note, for the benefit of the Secured Parties, pursuant to the terms hereof. 

(c) Upon delivery to the Collateral Agent, (i) any Pledged Securities required to be delivered pursuant to the
foregoing paragraphs (a) and (b) of this Section 3.02 shall be accompanied by stock powers or note powers, as applicable, duly executed in blank or other instruments of transfer reasonably satisfactory to the Collateral Agent and by
such other instruments and documents as the Collateral Agent may reasonably request and 

  
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(ii) all other property composing part of the Pledged Collateral delivered pursuant to the terms of this Agreement shall be accompanied to the extent necessary to perfect the security
interest in or allow realization on the Pledged Collateral by proper instruments of assignment duly executed by the applicable Obligor and such other instruments or, if necessary documents (including issuer acknowledgments in respect of
uncertificated securities, if necessary) as the Collateral Agent may reasonably request. Each delivery of Pledged Securities shall be accompanied by a schedule describing the securities, which schedule shall be attached hereto as
Schedule II and made a part hereof; provided that failure to attach any such schedule hereto shall not affect the validity of such pledge of such Pledged Securities. Each schedule so delivered shall supplement any prior schedules
so delivered. 
 SECTION 3.03. Representations, Warranties and Covenants. The Borrower, and with respect to any of
its Collateral, each Guarantor, jointly and severally, represent, warrant and covenant to and with the Collateral Agent, for the benefit of the Secured Parties, that: 

(a) Schedule II correctly sets forth, as of the Third Amendment Effective Date, the percentage of the issued and
outstanding shares of each class of the Equity Interests of the issuer thereof represented by Pledged Stock and includes all Equity Interests, debt securities and promissory notes or instruments evidencing Indebtedness required to be pledged and
delivered under Section 3.02; 
 (b) the Pledged Stock and Pledged Debt (solely with respect to Pledged Debt
issued by a person that is not a Subsidiary of the Borrower or an Affiliate of any such subsidiary, to each Obligor’s knowledge) have been duly and validly authorized and issued by the issuers thereof and (i) in the case of Pledged Stock,
are fully paid and nonassessable and (ii) in the case of Pledged Debt (solely with respect to Pledged Debt issued by a person that is not a Subsidiary of the Borrower or an Affiliate of any such subsidiary, to each Obligor’s knowledge) are
legal, valid and binding obligations of the issuers thereof; 
 (c) except for the security interests granted
hereunder, each Obligor (i) is and, subject to any transfers made in compliance with the Credit Agreement, will continue to be the direct owner, beneficially and of record, of the Pledged Securities indicated on Schedule II as owned by
such Obligor, (ii) holds the same free and clear of all Liens, other than Liens permitted under Section 6.03 of the Credit Agreement, (iii) will make no assignment, pledge, hypothecation or transfer of, or create or permit to exist
any security interest in or other Lien on, the Pledged Collateral, other than pursuant to a transaction permitted by the Credit Agreement and other than Liens permitted under Section 6.03 of the Credit Agreement and (iv) subject to the
rights of such Obligor under the Loan Documents to dispose of Pledged Collateral, will defend its title or interest hereto or therein against any and all Liens (other than Liens permitted under Section 6.03 of the Credit Agreement), however
arising, of all persons; 

  
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 (d) except for restrictions and limitations imposed by the Loan Documents or
securities laws generally or otherwise permitted to exist pursuant to the terms of the Credit Agreement, the Pledged Collateral is and will continue to be freely transferable and assignable, and none of the Pledged Collateral is or will be subject
to any option, right of first refusal, shareholders agreement, charter or by-law provisions or contractual restriction of any nature that might prohibit, impair, delay or otherwise affect the pledge of such Pledged Collateral hereunder, the sale or
disposition thereof pursuant hereto or the exercise by the Collateral Agent of rights and remedies hereunder; 

(e) each Obligor has the power and authority to pledge the Pledged Collateral pledged by it hereunder in the manner hereby
done or contemplated; 
 (f) no consent or approval of any Governmental Authority, any securities exchange or any
other person was or is necessary to the validity of the pledge effected hereby (other than such as have been obtained and are in full force and effect); and 
 (g) under the laws of the State of New York, by virtue of the execution and delivery by the Obligors of this Agreement, when any Pledged Securities are delivered to the Collateral Agent, for the benefit
of the Secured Parties, in accordance with this Agreement, the Collateral Agent will obtain, for the benefit of the Secured Parties, a legal, valid and perfected first priority lien upon and security interest in such Pledged Securities as security
for the payment and performance, as the case may be, in full of the Obligations and the pledge effected hereby is effective to vest in the Collateral Agent, for the benefit of the Secured Parties, the rights of the Collateral Agent in the Pledged
Collateral as set forth herein. 
 SECTION 3.04. Certification of Limited Liability Company and Limited Partnership
Interests. Each interest in any limited liability company or limited partnership controlled by any Obligor and pledged hereunder shall be represented by a certificate, shall to the extent permitted by applicable laws be a “security”
within the meaning of Article 8 of the New York UCC and shall be governed by Article 8 of the New York UCC; provided, however, in the case of (a) the limited liability company interests set forth on Schedule IV, the
Borrower shall cause such interests to be represented by a certificate, to be a “security” within the meaning of Article 8 of the New York UCC and to be governed by Article 8 of the New York UCC, in each case not later than forty-five
(45) days after the Third Amendment Effective Date and (b) that any limited liability company or limited partnership that, in either case, is a Wholly Owned Subsidiary formed or acquired after the Third Amendment Effective Date, the
Borrower shall cause such interests to be represented by a certificate, to be a “security” within the meaning of Article 8 of the New York UCC and to be governed by Article 8 of the New York UCC, in each case not later than
forty-five (45) days after the date of formation or acquisition thereof, as applicable. 
 SECTION 3.05.
Registration in Nominee Name; Denominations. The Collateral Agent, on behalf of the Secured Parties, shall have the right (in its sole and absolute discretion) to hold the Pledged Securities in the name of the applicable Obligor, endorsed or

  
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assigned in blank or in favor of the Collateral Agent or, if an Event of Default shall have occurred and be continuing, in its own name as pledgee or the name of its nominee (as pledgee or as
sub-agent). Each Obligor will promptly give to the Collateral Agent copies of any notices or other communications received by it with respect to Pledged Securities registered in the name of such Obligor. If an Event of Default shall have occurred
and be continuing, the Collateral Agent shall have the right to exchange the certificates representing Pledged Securities for certificates of smaller or larger denominations for any purpose consistent with this Agreement. Each Obligor shall use its
commercially reasonable efforts to cause any Loan Party that is not a party to this Agreement to comply with a request by the Collateral Agent, pursuant to this Section 3.05, to exchange certificates representing Pledged Securities of such Loan
Party for certificates of smaller or larger denominations. 
 SECTION 3.06. Voting Rights; Dividends and Interest,
etc. (a) Unless and until an Event of Default shall have occurred and be continuing: 
 (i) Each Obligor
shall be entitled to exercise any and all voting and/or other consensual rights and powers inuring to an owner of Pledged Securities or any part thereof for any purpose consistent with the terms of this Agreement, the Credit Agreement and the other
Loan Documents; provided that such rights and powers shall not be exercised in any manner that materially and adversely affect the rights inuring to a holder of any Pledged Securities, the rights and remedies of any of the Collateral Agent or
the other Secured Parties under this Agreement, the Credit Agreement or any other Loan Document or the ability of the Secured Parties to exercise the same. 
 (ii) The Collateral Agent shall promptly execute and deliver to each Obligor, or cause to be executed and delivered to such Obligor, all such proxies, powers of attorney and other instruments as such
Obligor may reasonably request for the purpose of enabling such Obligor to exercise the voting and/or consensual rights and powers it is entitled to exercise pursuant to subparagraph (i) above. 

(iii) Each Obligor shall be entitled to receive and retain any and all dividends, interest, principal and other
distributions paid on or distributed in respect of the Pledged Securities to the extent and only to the extent that such dividends, interest, principal and other distributions are permitted by, and otherwise paid or distributed in accordance with,
the terms and conditions of the Credit Agreement, the other Loan Documents and applicable laws; provided that any noncash dividends, interest, principal or other distributions that would constitute Pledged Securities, whether resulting from a
subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged Securities or received in exchange for Pledged Securities or any part thereof, or in redemption thereof, or as a result of any merger,
consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be and become part of the Pledged Collateral, and, if received by any Obligor, shall be held in trust for the benefit of the Collateral
Agent, for the benefit of the Secured Parties, and, if such noncash distribution would be required to be delivered as Pledged Collateral under Section 3.02, shall be forthwith delivered to the Collateral Agent, for the

  
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benefit of the Secured Parties, in the same form as so received (and endorsed in a manner reasonably satisfactory to the Collateral Agent). 

(b) Upon the occurrence and during the continuance of an Event of Default and after notice by the Collateral Agent to the
relevant Obligors of the Collateral Agent’s intention to exercise its rights hereunder, all rights of any Obligor to dividends, interest, principal or other distributions that such Obligor is authorized to receive pursuant to
paragraph (a)(iii) of this Section 3.06 shall cease, and all such rights shall thereupon become vested, for the benefit of the Secured Parties, in the Collateral Agent which shall have the sole and exclusive right and authority to receive
and retain such dividends, interest, principal or other distributions. All dividends, interest, principal or other distributions received by any Obligor contrary to the provisions of this Section 3.06 shall not be commingled by such Obligor
with any of its other funds or property but shall be held separate and apart therefrom, shall be held in trust for the benefit of the Collateral Agent, for the benefit of the Secured Parties, and shall be forthwith delivered to the Collateral Agent,
for the benefit of the Secured Parties, in the same form as so received (and endorsed in a manner reasonably satisfactory to the Collateral Agent, as necessary). Any and all money and other property paid over to or received by the Collateral Agent
pursuant to the provisions of this paragraph (b) shall be retained by the Collateral Agent in an account to be established by the Collateral Agent upon receipt of such money or other property and shall be applied in accordance with the
provisions of Section 5.02. After all Events of Default have been cured or waived and the Borrower has delivered to the Collateral Agent a certificate to that effect, the Collateral Agent shall promptly repay to each Obligor (without interest)
all dividends, interest, principal or other distributions that such Obligor would otherwise be permitted to retain pursuant to the terms of paragraph (a)(iii) of this Section 2.06 and that remain in such account. 

(c) Upon the occurrence and during the continuance of an Event of Default and after notice by the Collateral Agent to the
relevant Obligors of the Collateral Agent’s intention to exercise its rights hereunder, all rights of any Obligor to exercise the voting and/or consensual rights and powers it is entitled to exercise pursuant to paragraph (a)(i) of this
Section 3.06, and the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 3.06, shall cease, and all such rights shall thereupon become vested in the Collateral Agent, for the benefit of the Secured Parties,
which shall have the sole and exclusive right and authority to exercise such voting and consensual rights and powers; provided that, unless otherwise directed by the Required Lenders, the Collateral Agent shall have the right from time to
time following and during the continuance of an Event of Default to permit the Obligors to exercise such rights. After all Events of Default have been cured or waived and the Borrower has delivered to the Collateral Agent a certificate to that
effect, each Obligor shall have the right to exercise the voting and/or consensual rights and powers that such Obligor would otherwise be entitled to exercise pursuant to the terms of paragraph (a)(i) above. 

  
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 ARTICLE IV 
 Security Interests in Personal Property 
 SECTION 4.01. Security
Interest. (a) As security for the payment or performance, as the case may be, in full of the Obligations, each Obligor hereby assigns and pledges to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties,
and hereby grants to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, a security interest (the “Security Interest”) in all right, title and interest in or to any and all of the following
assets and properties now owned or at any time hereafter acquired by such Obligor or in which such Obligor now has or at any time in the future may acquire any right, title or interest (collectively, the “Article 9
Collateral”): 
 (i) all Accounts; 

(ii) all As-Extracted Collateral; 
 (iii) all Chattel Paper; 
 (iv) all cash and Deposit Accounts;

 (v) all Documents; 
 (vi) all Equipment and Goods; 
 (vii) all Fixtures; 

(viii) all General Intangibles and Intellectual Property; 

(ix) all Instruments; 
 (x) all Inventory; 
 (xi) all Investment Property; 

(xii) all Letter-of-Credit Rights; 

(xiii) all Commercial Tort Claims described with specification on Schedule V hereto (as such Schedule may be
amended or supplemented from time to time); 
 (xiv) all books and records pertaining to the Article 9
Collateral; and 
 (xv) to the extent not otherwise included, all proceeds, Supporting Obligations and products
of any and all of the foregoing and all collateral security and guarantees given by any person with respect to any of the foregoing; 

  
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 provided, however, that the foregoing assignment, pledge and grant of a security interest
shall be deemed not to assign, pledge and grant a security interest in (a) any Letter of Credit Rights to the extent any Obligor is required by applicable law to apply the proceeds of a drawing of such Letter of Credit for a specified purpose,
(b) any United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark
applications under applicable federal law, or (c) motor vehicles the perfection of a security interest in which is excluded from the UCC in the relevant jurisdiction; provided further that the foregoing assignment, pledge and
grant of a security interest shall be deemed not to assign, pledge and grant a security interest in Excluded Assets or any assets not required to be pledged pursuant to Section 5.10 of the Credit Agreement. 

(b) Each Obligor hereby irrevocably authorizes the Collateral Agent at any time and from time to time to file in any
relevant jurisdiction any initial financing statements (including fixture filings), continuation statements, or other filings and recordings, and hereby ratifies any and all such filings made prior to the date hereof, with respect to the
Article 9 Collateral and any other collateral pledged hereunder or any part thereof and amendments thereto that contain the information required by Article 9 of the Uniform Commercial Code of each applicable jurisdiction for the filing of any
financing statement or amendment, or such other information as may be required under applicable law, including (i) whether such Obligor is an organization, the type of organization and any organizational identification number issued to such
Obligor, (ii) in the case of Fixtures and As-Extracted Collateral, a sufficient description of the real property to which such Article 9 Collateral relates, and (iii) a description of collateral that describes such property in any other
manner as the Collateral Agent may reasonably determine is necessary or advisable to ensure the perfection of the Security Interest in the Article 9 Collateral or other collateral granted under this Agreement, including describing such property as
“all assets” or “all property”. Each Obligor agrees to provide such information to the Collateral Agent promptly upon specific request therefor. 
 Each Obligor hereby further irrevocably authorizes the Collateral Agent to file with the United States Patent and Trademark Office or United States Copyright Office (or any successor office or any similar
office in any other country) such documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest granted by each Obligor without the signature of any Obligor, and
naming any Obligor or the Obligors as debtors and the Collateral Agent as secured party. 
 (c) The Security
Interest is granted as security only and shall not subject the Collateral Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of any Obligor with respect to or arising out of the Article 9 Collateral.

 SECTION 4.02. Representations and Warranties. The Borrower, and with respect to any of its Collateral, each
Guarantor, jointly and severally represent and warrant to the Collateral Agent and the Secured Parties that: 

  
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 (a) Each Obligor has good and valid rights in and title to the
Article 9 Collateral with respect to which it has purported to grant a Security Interest hereunder and has full power and authority to grant to the Collateral Agent the Security Interest in such Article 9 Collateral pursuant hereto and to
execute, deliver and perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other person other than any consent or approval that has been obtained and is in full force and effect. 

(b) The Perfection Certificate has been duly prepared, completed and executed and the information set forth therein,
including the exact legal name of each Obligor, is correct and complete, in all material respects, as of the Third Amendment Effective Date. 
 Uniform Commercial Code financing statements (including fixture filings, as applicable) or other appropriate filings, recordings or registrations containing a description of the Article 9 Collateral
based upon the information provided to the Collateral Agent in the Perfection Certificate for filing in each governmental, municipal or other office specified in Schedule 7 to the Perfection Certificate (or specified by notice from the
Borrower to the Collateral Agent after the Third Amendment Effective Date in the case of filings, recordings or registrations required by Section 5.10 of the Credit Agreement), constitute all the filings, recordings and registrations (other
than filings required to be made in the United States Patent and Trademark Office and the United States Copyright Office in order to perfect the Security Interest in Article 9 Collateral consisting of United States Patents, United States
registered Trademarks and United States registered Copyrights) that are necessary to publish notice of and protect the validity of and to establish a legal, valid and perfected security interest in favor of the Collateral Agent (for the benefit of
the Secured Parties) in respect of all Article 9 Collateral in which the Security Interest may be perfected by filing, recording or registration in the United States (or any political subdivision thereof) and its territories and possessions,
and no further or subsequent filing, refiling, recording, rerecording, registration or reregistration is necessary in any such jurisdiction, except as provided under applicable law with respect to the filing of continuation statements or amendments.

 A fully executed short form (which form shall be reasonably acceptable to the Collateral Agent and Borrower) containing a
description of all Article 9 Collateral consisting of Intellectual Property with respect to United States Patents (and Patents for which United States registration applications are pending), United States registered Trademarks (and Trademarks
for which United States registration applications are pending) and United States registered Copyrights (and Copyrights for which United States registration applications are pending) shall be delivered to the Collateral Agent for recording with the
United States Patent and Trademark Office and the United States Copyright Office pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C. § 205 and the regulations thereunder, as applicable,
as reasonably requested by the Collateral Agent, to protect the validity of and to establish a legal, valid and perfected security interest in favor of the Collateral Agent, for the benefit of the Secured Parties, in respect of all Article 9
Collateral consisting of such Intellectual Property in which a security interest may be perfected by recording with the United States Patent and Trademark Office and the United States 

  
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Copyright Office, and, other than the Uniform Commercial Code financing statements or other appropriate filings, recordings or registrations referenced above, no further or subsequent filing,
refiling, recording, rerecording, registration or reregistration is necessary (other than such actions as are necessary to perfect the Security Interest with respect to any Article 9 Collateral consisting of Patents, Trademarks and Copyrights
(or registration or application for registration thereof) acquired or developed after the date hereof). 
 (c)
The Security Interest constitutes (i) under the laws of the State of New York, a legal and valid security interest in all the Article 9 Collateral securing the payment or performance, as the case may be, in full of the Obligations,
(ii) subject to the filings described in Section 4.02(b), a perfected security interest in all Article 9 Collateral to the extent such a security interest may be perfected by filing, recording or registering a financing statement or
analogous document in the United States (or any political subdivision thereof) and its territories and possessions pursuant to the Uniform Commercial Code or other applicable law in such jurisdictions and (iii) a security interest that shall be
perfected in all Article 9 Collateral in which a security interest may be perfected upon the receipt and recording of this Agreement with the United States Patent and Trademark Office and the United States Copyright Office, as applicable. The
Security Interest is and shall be prior to any other Lien on any of the Article 9 Collateral, other than Liens expressly permitted pursuant to Section 6.03 of the Credit Agreement or arising by operation of law. 

(d) The Article 9 Collateral is owned by the Obligors free and clear of any Lien, other than Liens expressly
permitted pursuant to Section 6.03 of the Credit Agreement or arising by operation of law. None of the Obligors has filed or consented to the filing of (i) any financing statement or analogous document under the Uniform Commercial Code or
any other applicable laws covering any Article 9 Collateral, (ii) any assignment in which any Obligor assigns any Article 9 Collateral or any security agreement or similar instrument covering any Article 9 Collateral with the United
States Patent and Trademark Office or the United States Copyright Office or (iii) any assignment in which any Obligor assigns any Article 9 Collateral or any security agreement or similar instrument covering any Article 9 Collateral
with any foreign governmental, municipal or other office, which financing statement or analogous document, assignment, security agreement or similar instrument is still in effect, except, in the case of each clause (i), (ii) and
(iii) above, in respect of Liens expressly permitted pursuant to Section 6.03 of the Credit Agreement. 

(e) None of the Obligors holds any Commercial Tort Claim reasonably estimated in excess of $10,000,000 as of the Third
Amendment Effective Date except as indicated on Schedule V hereto, as such schedule may be updated or supplemented from time to time. 
 (f) All Accounts have been originated by the Obligors and all Inventory reasonably estimated in excess of $10,000,000 has been acquired by the Obligors in the ordinary course of business. 

  
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 SECTION 4.03. Covenants. (a) Each Obligor agrees promptly to notify the
Collateral Agent in writing of any change (i) in its corporate name, (ii) in its identity or type of organization or corporate structure, (iii) in its Federal Taxpayer Identification Number or organizational identification number,
(iv) in its jurisdiction of organization or (v) Chief Executive Office. Each Obligor agrees promptly to provide the Collateral Agent with certified organizational documents reflecting any of the changes applicable to it described in the
immediately preceding sentence upon the Collateral Agent’s request. Each Obligor agrees not to effect or permit any change referred to in the first sentence of this paragraph (a) unless all filings have been made under the Uniform
Commercial Code or otherwise that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected first priority security interest in all the Article 9 Collateral, for the
benefit of the Secured Parties. Each Obligor agrees promptly to notify the Collateral Agent if any material portion of the Article 9 Collateral owned or held by such Obligor is damaged or destroyed. 

(b) Subject to the rights of such Obligor under the Loan Documents to dispose of Collateral, each Obligor shall, at its
own expense, take any and all actions necessary to defend title to its Article 9 Collateral against all persons and to defend the Security Interest of the Collateral Agent, for the benefit of the Secured Parties, in its Article 9
Collateral and the priority thereof against any Lien not expressly permitted pursuant to Section 6.03 of the Credit Agreement. 
 (c) Each Obligor agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further instruments and documents and take all such actions as the Collateral Agent may
from time to time reasonably request to better assure, preserve, protect and perfect the Security Interest and the rights and remedies created hereby, including the payment of any fees and taxes required in connection with the execution and delivery
of this Agreement, the granting of the Security Interest and the filing of any financing statements (including fixture filings) or other documents in connection herewith or therewith. If any amount payable to any of the Obligors under or in
connection with any of the Article 9 Collateral that is in excess of $10,000,000 shall be or become evidenced by any promissory note or other instrument, such note or instrument shall be, promptly delivered to the Collateral Agent, for the
benefit of the Secured Parties, duly endorsed in a manner reasonably satisfactory to the Collateral Agent. 
 Without limiting
the generality of the foregoing, each Obligor hereby authorizes the Collateral Agent, with prompt notice thereof to the Obligors, to supplement this Agreement by supplementing Schedule III or adding additional schedules hereto to
specifically identify any of its assets or items that may constitute Copyrights, Patents, Trademarks, Copyright Licenses, Patent Licenses or Trademark Licenses; provided that any Obligor shall have the right, exercisable within 30 days
after it has been notified by the Collateral Agent of the specific identification of such Article 9 Collateral, to advise the Collateral Agent in writing of any inaccuracy of the representations and warranties made by such Obligor hereunder with
respect to such Article 9 Collateral. Each Obligor agrees that it will use its commercially reasonable efforts to take such action as shall be necessary in order that all representations and warranties hereunder shall be true and correct with
respect to such Article 9 Collateral within 30 days after 

  
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the date it has been notified by the Collateral Agent of the specific identification of such Article 9 Collateral. 

(d) After the occurrence of an Event of Default and during the continuance thereof, the Collateral Agent shall have the
right to verify under reasonable procedures the validity, amount, quality, quantity, value, condition and status of, or any other matter relating to, its Article 9 Collateral, including, in the case of its Accounts or Article 9 Collateral in
the possession of any third person, by contacting Account Debtors or the third person possessing such Article 9 Collateral for the purpose of making such a verification. The Collateral Agent shall have the right to share any information it
gains from such inspection or verification with any Secured Party. 
 (e) At its option, the Collateral Agent may
discharge past due taxes, assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Article 9 Collateral and not permitted pursuant to Section 6.03 of the Credit Agreement, and may pay
for the maintenance and preservation of the Article 9 Collateral to the extent any Obligor fails to do so as required by the Credit Agreement or this Agreement, and each Obligor jointly and severally agrees to reimburse the Collateral Agent on
demand for any reasonable payment made or any reasonable expense incurred by the Collateral Agent pursuant to the foregoing authorization; provided, however, that nothing in this Section 4.03(e) shall be interpreted as excusing
any Obligor from the performance of, or imposing any obligation on the Collateral Agent or any Secured Party to cure or perform, any covenants or other promises of any Obligor with respect to taxes, assessments, charges, fees, Liens, security
interests or other encumbrances and maintenance as set forth herein or in the other Loan Documents. 
 (f) Each
Obligor (rather than the Collateral Agent or any Secured Party) shall remain liable for the observance and performance of all the conditions and obligations to be observed and performed by it under each contract, agreement or instrument relating to
its Article 9 Collateral and each Obligor jointly and severally agrees to indemnify and hold harmless the Collateral Agent and the Secured Parties from and against any and all liability for such performance. 

(g) None of the Obligors shall make or permit to be made an assignment, pledge or hypothecation of its Article 9
Collateral or shall grant any other Lien in respect of its Article 9 Collateral, except as expressly permitted by the Credit Agreement. None of the Obligors shall make or permit to be made any transfer of its Article 9 Collateral and each Obligor
shall remain at all times in possession of the Article 9 Collateral owned by it, except as permitted by the Credit Agreement. 
 (h) None of the Obligors will, without the Collateral Agent’s prior written consent, grant any extension of the time of payment of any Accounts included in its Article 9 Collateral, compromise,
compound or settle the same for less than the full amount thereof, release, wholly or partly, any person liable for the payment thereof or allow any credit or discount whatsoever thereon, other than extensions, credits, discounts,

  
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compromises or settlements granted or made in the ordinary course of business and consistent with prudent business practices or as otherwise permitted by the Credit Agreement. 

(i) Each Obligor irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents
designated by the Collateral Agent) as such Obligor’s true and lawful agent (and attorney-in-fact) for the purpose, during the continuance of an Event of Default, of making, settling and adjusting claims in respect of its Article 9
Collateral under policies of insurance, endorsing the name of such Obligor on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect thereto.
In the event that any Obligor at any time or times shall fail to obtain or maintain any of the policies of insurance required hereby or to pay any premium in whole or part relating thereto, the Collateral Agent may, without waiving or releasing any
obligation or liability of the Obligors hereunder or any Event of Default, in its sole discretion, obtain and maintain such policies of insurance and pay such premium and take any other actions with respect thereto as the Collateral Agent reasonably
deems advisable. All sums disbursed by the Collateral Agent in connection with this Section 4.03(i), including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall be payable, upon demand, by the
Obligors to the Collateral Agent and shall be additional Obligations secured hereby. 
 SECTION 4.04. Other Actions.
In order to further ensure the attachment, perfection and priority of, and the ability of the Collateral Agent to enforce, for the benefit of the Secured Parties, the Collateral Agent’s security interest in the Article 9 Collateral, each
Obligor agrees, in each case at such Obligor’s own expense, to take the following actions with, respect to the following Article 9 Collateral: 
 (a) Instruments and Tangible Chattel Paper. If any Obligor shall at any time hold or acquire any Instruments or Tangible Chattel Paper evidencing an amount in excess of $10,000,000, such Obligor
shall forthwith endorse, assign and deliver the same to the Collateral Agent, accompanied by such instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time to time reasonably request. 

(b) Cash Accounts. No Obligor shall grant control of any deposit account to any Person other than the Collateral
Agent and the bank with which the deposit account is maintained. 
 (c) Investment Property. Except to the
extent otherwise provided in Article III: 
 (i) if any Investment Property, whether certificated or
uncertificated (other than uncertificated securities described in clause (ii) below), having an aggregate fair market value in excess of $10,000,000 now or hereafter acquired by any Obligor is held by such Obligor, such Obligor shall notify the
Collateral Agent thereof and either, at such 

  
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Obligor’s discretion, (A) cause such Investment Property (if it is a Certificated Security) to be endorsed, assigned and delivered to the Collateral Agent, accompanied by such
instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time to time reasonably specify, (B) cause such security or Investment Property to be held in a securities account that is then subject to a Control
Agreement, (C) cause any securities intermediary or commodity intermediary, as applicable, then holding such Investment Property to agree pursuant to a Control Agreement, in the case of a securities intermediary, to comply with entitlement
orders or other instructions from the Collateral Agent to such securities intermediary as to such securities or other Investment Property or, in the case of a commodity intermediary, to apply any value distributed on account of any commodity
contract as directed by the Collateral Agent to such commodity intermediary, in each case without further consent of any Obligor or such nominee, or (D) arrange for the Collateral Agent to become the entitlement holder with respect to such
Investment Property (if it is held through a securities intermediary), for the benefit of the Secured Parties, with such Obligor being permitted, only with the consent of the Collateral Agent, to exercise rights to withdraw or otherwise deal with
such Investment Property; and 
 (ii) if any security having a fair market value in excess of $10,000,000 and now
or hereafter acquired by any Obligor is uncertificated and is issued to such Obligor or its nominee directly by the issuer thereof, such Obligor shall promptly notify the Collateral Agent of such uncertificated securities and upon the Collateral
Agent’s request following the occurrence and during the continuation of an Event of Default, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, cause, or with respect to any issuer that is not a
Subsidiary of such Obligor, use best efforts to cause either (i) the issuer to agree to comply with instructions from the Collateral Agent as to such security, without further consent of any Obligor or such nominee, or (ii) the issuer to
register the Collateral Agent as the registered owner of such security. 
 The Collateral Agent agrees with each of the Obligors
that the Collateral Agent shall not give any entitlement orders, instructions or directions to any such issuer, securities intermediary or commodity intermediary described above, as applicable, and shall not withhold its consent to the exercise of
any withdrawal or dealing rights by any Obligor, as applicable, unless an Event of Default has occurred and is continuing or, after giving effect to any such withdrawal or dealing rights, would occur; provided, that the provisions of this paragraph
(c) shall not apply to any Financial Assets credited to a securities account for which the Collateral Agent is the securities intermediary. 
 (d) Commercial Tort Claims. If any Obligor shall at any time hold or acquire a Commercial Tort Claim in an amount reasonably estimated to exceed $10,000,000, such Obligor shall promptly notify the
Collateral Agent thereof in a writing signed by such Obligor, including a summary description of such claim, and grant to the Collateral Agent in writing a security interest therein and in the proceeds thereof, all upon the terms

  
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of this Agreement, with such writing to be in form and substance reasonably satisfactory to the Collateral Agent. 
 SECTION 4.05. Covenants Regarding Patent, Trademark and Copyright Collateral. (a) Each Obligor agrees that it will not knowingly do any act or knowingly omit to do any act (and will
exercise commercially reasonable efforts to prevent its licensees from doing any act or omitting to do any act) whereby any Patent that is material to the normal conduct of such Obligor’s business may become prematurely invalidated or dedicated
to the public. 
 (b) Each Obligor will use its commercially reasonable efforts to, for each material Trademark
necessary to the normal conduct of such Obligor’s business, (i) maintain such Trademark in full force free from any adjudication of abandonment or invalidity for non-use, (ii) maintain the quality of products and services offered
under such Trademark consistent with the quality of such products and services as of the date hereof, (iii) display such Trademark with notice of federal or foreign registration or claim of trademark or service mark as required under applicable
law and (iv) not knowingly use or knowingly permit its licensees’ use of such Trademark in violation of any third-party rights. 
 (c) Each Obligor will use its commercially reasonable efforts to, for each work covered by a material Copyright necessary to the normal conduct of such Obligor’s business that it publishes, displays
and distributes, use copyright notice as required under applicable copyright laws. 
 (d) Each Obligor shall
notify the Collateral Agent promptly if it knows that any Patent, Trademark or Copyright material to the normal conduct of such Obligor’s business may imminently become abandoned, lost or dedicated to the public other than by expiration, or of
any materially adverse determination or development, excluding office actions and similar determinations in the United States Patent and Trademark Office, United States Copyright Office, any court or any similar office of any country, regarding such
Obligor’s ownership of any such material Patent, Trademark or Copyright or its right to register or to maintain the same. 
 (e) Each Obligor, either itself or through any agent, employee, licensee or designee, shall (i) inform the Collateral Agent on a semi-annual basis of each application by itself, or through any agent,
employee, licensee or designee, for any Patent with the United States Patent and Trademark Office and each registration of any Trademark or Copyright with the United States Patent and Trademark Office, the United States Copyright Office or any
comparable office or agency in any other country filed during the preceding six-month period, and (ii) upon the reasonable request of the Collateral Agent, execute and deliver any and all agreements, instruments, documents and papers as the
Collateral Agent may reasonably request to evidence the Collateral Agent’s security interest in such Patent, Trademark or Copyright; provided for the avoidance of doubt, that all such Intellectual Property shall automatically constitute
Collateral herewith. 

  
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 (f) Each Obligor shall exercise its reasonable business judgment consistent
with its practice in any proceeding before the United States Patent and Trademark Office, the United States Copyright Office or any comparable office or agency in any other country (A) with respect to maintaining and pursuing each material
application relating to any Patent, Trademark and/or Copyright (and obtaining the relevant grant or registration) material to the normal conduct of such Obligor’s business and (B) to maintain (i) each issued Patent and (ii) the
registrations of each Trademark and each Copyright in each case that is material to the normal conduct of such Obligor’s business, including, when applicable and necessary in such Obligor’s reasonable business judgment, timely filings of
applications for renewal, affidavits of use, affidavits of incontestability and payment of maintenance fees, and, if any Obligor believes necessary in its reasonable business judgment, to initiate opposition, interference and cancellation
proceedings against third parties. 
 (g) In the event that any Obligor knows that any Article 9 Collateral
consisting of a Patent, Trademark or Copyright material to the normal conduct of its business has been or is about to be materially infringed, misappropriated or diluted by a third party, such Obligor shall, if such Obligor deems it necessary in its
reasonable business judgment, promptly contact such third party, and if necessary in its reasonable business judgment, sue and recover damages, or take such other actions as are reasonably appropriate under the circumstances. 

(h) Upon and during the continuance of an Event of Default, each Obligor shall use commercially reasonable efforts to
obtain all requisite consents or approvals from the licensor under each Copyright License, Patent License or Trademark License to effect the assignment of all such Obligor’s right, title and interest thereunder to (in the Collateral
Agent’s sole discretion) the designee of the Collateral Agent or the Collateral Agent. 
 ARTICLE V 

Remedies 

SECTION 5.01. Remedies Upon Default. Upon the occurrence and during the continuance of an Event of Default, each Obligor
agrees to deliver each item of its Collateral to the Collateral Agent on demand, and it is agreed that the Collateral Agent shall have the right to take any of or all the following actions at the same or different times: (a) with respect to any
Article 9 Collateral consisting of Intellectual Property, on demand, to cause the Security Interest to become an assignment, transfer and conveyance of any of or all such Article 9 Collateral by the applicable Obligors to the Collateral Agent
(provided, however, that with respect to Trademarks such assignment shall only be effective if such Trademarks are accompanied by the goodwill symbolized by such Trademarks) or to license or sublicense, whether general, special or
otherwise, and whether on an exclusive or a nonexclusive basis, any such Article 9 Collateral 

  
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throughout the world on such terms and conditions and in such manner as the Collateral Agent shall determine (other than in violation of any then-existing licensing arrangements to the extent
that waivers thereunder cannot be obtained) and (b) with or without legal process and with or without prior notice or demand for performance, to take possession of the Article 9 Collateral and without liability for trespass to enter any
premises where the Article 9 Collateral may be located for the purpose of taking possession of or removing the Article 9 Collateral and, generally, to exercise any and all rights afforded to a secured party under the applicable Uniform Commercial
Code or other applicable law. Without limiting the generality of the foregoing, each Obligor agrees that the Collateral Agent shall have the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose of all or any
part of the Collateral at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery as the Collateral Agent shall deem appropriate. The Collateral Agent shall be authorized in
connection with any sale of a security (if it deems it advisable to do so) pursuant to the foregoing to restrict the prospective bidders or purchasers to persons who represent and agree that they are purchasing such security for their own account,
for investment, and not with a view to the distribution or sale thereof. Upon consummation of any such sale of Collateral pursuant to this Section 5.01 the Collateral Agent shall have the right to assign, transfer and deliver to the purchaser
or purchasers thereof the Collateral so sold. Each such purchaser at any such sale shall hold the property sold absolutely, free from any claim or right on the part of any Obligor, and each Obligor hereby waives and releases (to the extent permitted
by law) all rights of redemption, stay, valuation and appraisal that such Obligor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. 

The Collateral Agent shall give the applicable Obligors 10 Business Days’ written notice (which each Obligor agrees is
reasonable notice within the meaning of Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of the Collateral Agent’s intention to make any sale of Collateral. Such notice, in the case of a public sale, shall
state the time and place for such sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the day on which the Collateral, or portion thereof, will
first be offered for sale at such board or exchange. Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Collateral Agent may fix and state in the notice (if any) of such sale.
At any such sale, the Collateral, or the portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute discretion) determine. The Collateral Agent shall not be
obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given. The Collateral Agent may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. In the case of any
sale of all or any part of the Collateral made on credit or for future delivery, the Collateral so sold may be retained by the Collateral Agent until the sale price is paid by the purchaser or purchasers thereof, but the Collateral Agent shall not
incur any liability in the event that any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in the case of any such failure, such Collateral may be sold again upon notice given in accordance with provisions
above. At any public (or, to the extent permitted by 

  
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law, private) sale made pursuant to this Section 5.01, any Secured Party may bid for or purchase for cash, free (to the extent permitted by law) from any right of redemption, stay, valuation
or appraisal on the part of any Obligor (all such rights being also hereby waived and released to the extent permitted by law), the Collateral or any part thereof offered for sale and such Secured Party may, upon compliance with the terms of sale,
hold, retain and dispose of such property in accordance with Section 5.02 hereof without further accountability to any Obligor therefor. For purposes hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated
as a sale thereof; the Collateral Agent shall be free to carry out such sale pursuant to such agreement and no Obligor shall be entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the
Collateral Agent shall have entered into such an agreement all Events of Default shall have been remedied and the Obligations paid in full. As an alternative to exercising the power of sale herein conferred upon it, the Collateral Agent may proceed
by a suit or suits at law or in equity to foreclose this Agreement and to sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed
receiver. Any sale pursuant to the provisions of this Section 5.01 shall be deemed to conform to the commercially reasonable standards as provided in Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions.

 SECTION 5.02. Application of Proceeds. The Collateral Agent shall promptly apply the proceeds, moneys or balances
of any collection or sale of Collateral, as well as any Collateral consisting of cash, as follows: 
 FIRST, to
the payment of all costs and expenses incurred by the Applicable Agent and the Collateral Agent in connection with such collection or sale or otherwise in connection with this Agreement, any other Loan Document or any of the Obligations, including
all court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by the Applicable Agent and the Collateral Agent hereunder or under any other Loan Document on behalf of any Obligor and any other costs or
expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document; 
 SECOND, to the payment in full of the Obligations (the amounts so applied to be distributed among the Secured Parties pro rata in accordance with the respective amounts of the Obligations
owed to them on the date of any such distribution); and 
 THIRD, to the Obligors, their successors or assigns,
or as a court of competent jurisdiction may otherwise direct. 
 The Collateral Agent shall have absolute discretion as to the time of
application of any such proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the
purchase money by the Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of
any part 

  
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of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof. 

SECTION 5.03. Grant of License To Use Intellectual Property. Solely for the purpose of enabling the Collateral Agent to
exercise rights and remedies under Article V of this Agreement at such time as the Collateral Agent shall be lawfully entitled, and to the extent necessary, to exercise such rights and remedies, each Obligor hereby grants to (in the Collateral
Agent’s sole discretion) a designee of the Collateral Agent or the Collateral Agent, for the benefit of the Secured Parties, a nonexclusive license (exercisable without payment of royalty or other compensation to any Obligor) to use, license or
sublicense any of its Article 9 Collateral consisting of Intellectual Property (excluding Trademarks) now owned or hereafter acquired by such Obligor, wherever the same may be located, and including, without limitation, in such license
reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof. The use of such license by the Collateral Agent (or its designee) may
be exercised, at the option of the Collateral Agent, solely upon the occurrence and during the continuation of an Event of Default; provided that any license, sublicense or other transaction entered into by the Collateral Agent in accordance
herewith shall be binding upon the Obligors notwithstanding any subsequent cure of an Event of Default. 
 SECTION 5.04.
Securities Act, etc. In view of the position of the Obligors in relation to the Pledged Collateral, or because of other current or future circumstances, a question may arise under the Securities Act of 1933, as now or hereafter in effect, or
any similar federal statute hereafter enacted analogous in purpose or effect (such Act and any such similar statute as from time to time in effect being called the “Federal Securities Laws”) with respect to any disposition of the
Pledged Collateral permitted hereunder. Each Obligor understands that compliance with the Federal Securities Laws might very strictly limit the course of conduct of the Collateral Agent if the Collateral Agent were to attempt to dispose of all or
any part of the Pledged Collateral, and might also limit the extent to which or the manner in which any subsequent transferee of any Pledged Collateral could dispose of the same. Similarly, there may be other legal restrictions or limitations
affecting the Collateral Agent in any attempt to dispose of all or part of the Pledged Collateral under applicable Blue Sky or other state securities laws or similar laws analogous in purpose or effect. Each Obligor acknowledges and agrees that in
light of such restrictions and limitations, the Collateral Agent, in its sole and absolute discretion, (a) may proceed to make such a sale whether or not a registration statement for the purpose of registering such Pledged Collateral or part
thereof shall have been filed under the Federal Securities Laws or, to the extent applicable, Blue Sky or other state securities laws and (b) may approach and negotiate with a single potential purchaser to effect such sale. Each Obligor
acknowledges and agrees that any such sale might result in prices and other terms less favorable to the seller than if such sale were a public sale without such restrictions. In the event of any such sale, the Collateral Agent shall incur no
responsibility or liability for selling all or any part of the Pledged Collateral at a price that the Collateral Agent, in its sole and absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility
that a substantially higher price might have been realized if the sale were deferred until after registration as aforesaid or if more than a single purchaser were approached. The provisions of

  
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this Section 5.04 will apply notwithstanding the existence of a public or private market upon which the quotations or sales prices may exceed substantially the price at which the Collateral
Agent sells. 
 ARTICLE VI 
 Indemnity, Subrogation and Subordination 
 SECTION 6.01. Indemnity
and Subrogation. In addition to all such rights of indemnity and subrogation as the Guarantors may have under applicable law (but subject to Section 6.03), the Borrower agrees that (a) in the event a payment shall be made by any
Guarantor under this Agreement in respect of any Obligation of the Borrower, the Borrower shall indemnify such Guarantor for the full amount of such payment and such Guarantor shall be subrogated to the rights of the person to whom such payment
shall have been made to the extent of such payment and (b) in the event any assets of any Guarantor shall be sold pursuant to this Agreement or any other Security Document to satisfy in whole or in part an Obligation of the Borrower, the
Borrower shall indemnify such Guarantor in an amount equal to the greater of the book value or the fair market value of the assets so sold. 
 SECTION 6.02. Contribution and Subrogation. Each Guarantor agrees (subject to Section 6.03) that, in the event a payment shall be made by any other Guarantor hereunder in respect of any
Obligation or assets of any other Guarantor shall be sold pursuant to any Security Document to satisfy any Obligation owed to any Secured Party and such other Guarantor (the “Claiming Guarantor”) shall not have been fully
indemnified by the Borrower as provided in Section 6.01, the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal to the amount of such payment or the greater of the book value or the fair market value of such
assets, as applicable, in each case multiplied by a fraction of which the numerator shall be the net worth of such Contributing Guarantor on the date hereof and the denominator shall be the aggregate net worth of all the Guarantors on the date
hereof (or, in the case of any Guarantor becoming a party hereto pursuant to Section 7.13, the date of the supplement hereto executed and delivered by such Guarantor). Any Contributing Guarantor making any payment to a Claiming Guarantor
pursuant to this Section 6.02 shall be subrogated to the rights of such Claiming Guarantor under Section 6.01 to the extent of such payment. 
 SECTION 6.03. Subordination. (a) Notwithstanding any provision of this Agreement to the contrary, all rights of the Obligors under Sections 6.01 and 6.02 and all other rights of
indemnity, contribution or subrogation of the Obligors under applicable law or otherwise shall be fully subordinated to the indefeasible payment in full in cash of the Obligations. No failure on the part of the Borrower or any Guarantor to make the
payments required by Sections 6.01 and 6.02 (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Obligor with respect to its obligations hereunder, and each Obligor
shall remain liable for the full amount of the obligations of such Obligor hereunder. 

  
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 (b) Each Guarantor hereby agrees that all Indebtedness and other monetary
obligations owed by it to any other Guarantor or any Subsidiary shall be fully subordinated to the indefeasible payment in full in cash of the Obligations. 
 ARTICLE VII 
 Miscellaneous 

SECTION 7.01. Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in
writing and given as provided in Section 9.01 of the Credit Agreement. All communications and notices hereunder to any Guarantor shall be given to it in care of the Borrower, with such notice to be given as provided in Section 9.01 of the
Credit Agreement. 
 SECTION 7.02. Security Interest Absolute. All rights of the Collateral Agent hereunder, the
Security Interest, the security interest in the Pledged Collateral and all obligations of each Obligor hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other
Loan Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document or any other agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other
collateral, or any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of the Obligations or (d) any other circumstance that might otherwise constitute a defense available to,
or a discharge of, any Obligor in respect of the Obligations or this Agreement. 
 SECTION 7.03. Binding Effect; Several
Agreement. This Agreement shall become binding when a counterpart hereof shall have been executed by the Borrower, the Guarantors and the Collateral Agent and when the Collateral Agent shall have received copies thereof which, when taken
together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of each of the parties hereto and the other Secured Parties and their respective permitted successors and assigns. This
Agreement shall be construed as a separate agreement with respect to each party and may be amended, modified, supplemented, waived or released with respect to any party without the approval of any other party and without affecting the obligations of
any other party hereunder. 
 SECTION 7.04. Successors and Assigns. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and registered assigns, except that no party shall have the right to assign or otherwise transfer any of its rights or obligations hereunder or any interest
herein or in the Collateral (and any such assignment or transfer shall be void) except as expressly contemplated by the Credit Agreement. 

  
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 SECTION 7.05. Collateral Agent’s Fees and Expenses; Indemnification.
(a) The parties hereto agree that the Collateral Agent shall be entitled to reimbursement of its expenses incurred hereunder as provided in Section 9.05 of the Credit Agreement. 

(b) Without limitation of its indemnification obligations under the other Loan Documents, each Obligor jointly and
severally agrees to indemnify the Collateral Agent and the other Indemnitees (as defined in Section 9.05 of the Credit Agreement) against, and to hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities, litigation,
investigations or proceedings and related expenses, including reasonable counsel fees, charges and disbursements, incurred by or asserted or brought against any Indemnitee arising out of, in any way connected with, or as a result of (i) the
execution or delivery of this Agreement or any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto and thereto of their respective obligations thereunder or the consummation of any
transactions contemplated hereby or (ii) any claim, litigation, investigation or proceeding relating to any of the foregoing, or to the Collateral, whether or not any Indemnitee is a party thereto; provided that such indemnity shall not,
as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities, litigation, investigations or proceedings or related expenses result primarily from the gross negligence or willful misconduct of such Indemnitee or any
of its Related Parties (any such Indemnitee and its Related Parties treated, for this purpose only, as a single Indemnitee). 
 (c) Any such amounts payable as provided hereunder shall be additional Obligations secured hereby and by the other Security Documents. Without prejudice to the survival of any other agreements contained
herein, the provisions of this Section 7.05 shall survive the payment in full of the principal and interest under the Credit Agreement, the expiration of the Letters of Credit, the termination of the Commitments and the termination of this
Agreement or any other Loan Document. All amounts due under this Section 7.05 shall be payable on written demand therefor. 

SECTION 7.06. Collateral Agent Appointed Attorney-in-Fact. Each Obligor hereby appoints the Collateral Agent the
attorney-in-fact of such Obligor for the purpose of carrying out the provisions of this Agreement and taking any action and executing any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes hereof, which
appointment is irrevocable and coupled with an interest. Without limiting the generality of the foregoing, the Collateral Agent shall have the right, upon the occurrence and during the continuance of an Event of Default, with full power of
substitution either in the Collateral Agent’s name or in the name of such Obligor, (a) to receive, endorse, assign or deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the
Collateral or any part thereof; (b) to demand, collect, receive payment of, give receipt for and give discharges and releases of all or any of the Collateral; (c) to ask for, demand, sue for, collect, receive and give acquittance for any
and all moneys due or to become due under and by virtue of any Collateral; (d) to sign the name of any Obligor on any invoice or bill of lading relating to any of the Collateral; (e) to send verifications of Accounts to any Account Debtor;
(f) to commence and prosecute any and all suits, actions or proceedings at law 

  
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or in equity in any court of competent jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of any Collateral; (g) to settle,
compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the Collateral; (h) to notify, or to require any Obligor to notify, Account Debtors to make payment directly to the Collateral Agent; and
(i) to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and things necessary to carry out the purposes of this Agreement, as fully and
completely as though the Collateral Agent were the absolute owner of the Collateral for all purposes; provided, that nothing herein contained shall be construed as requiring or obligating the Collateral Agent to make any commitment or to make
any inquiry as to the nature or sufficiency of any payment received by the Collateral Agent, or to present or file any claim or notice, or to take any action with respect to the Collateral or any part thereof or the moneys due or to become due in
respect thereof or any property covered thereby. The Collateral Agent and the other Secured Parties shall be accountable only for amounts actually received as a result of the exercise of the powers granted to them herein, and neither they nor their
officers, directors, employees or agents shall be responsible to any Obligor for any act or failure to act hereunder, except for their own gross negligence or wilful misconduct. 

SECTION 7.07. Applicable Law; Jurisdiction; Consent to Service of Process; WAIVER OF JURY TRIAL. The terms of Sections 9.07,
9.11 and 9.15 of the Credit Agreement are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms. 
 SECTION 7.08. Waivers; Amendment. (a) No failure or delay of the Agents, any Issuing Bank or any Lender in exercising any right or power hereunder or under any Loan Document shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Agents, each Issuing Bank and other Secured Parties hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver
of any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower or any other Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) below, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice or demand on the Borrower or any other Loan Party in any case shall entitle such person to any other or further notice or demand in
similar or other circumstances. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to an agreement or agreements in writing entered into by each party hereto and, to the extent required, consented to by the Required Lenders in accordance with Section 9.08 of the Credit Agreement. 

SECTION 7.09. Severability. In the event any one or more of the provisions contained in this Agreement or in any other Loan
Document should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions 

  
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contained herein and therein shall not in any way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
 SECTION 7.10. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which, when taken together, shall constitute but
one contract, and shall become effective as provided in Section 7.03. Delivery of an executed counterpart to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed original. 

SECTION 7.11. Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference
only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement. 
 SECTION 7.12. Termination or Release. (a) This Agreement shall remain in full force and effect until such time as the Obligations have been paid in full and the Commitments have expired
or been terminated, at which time this Agreement shall be automatically terminated and the Collateral Agent shall, upon the request and at the expense of the Obligors, forthwith release all of its liens and security interests hereunder and shall
promptly execute and deliver all UCC termination statements and/or other documents requested by the Obligors evidencing such termination. 
 (b) A Guarantor shall automatically be released from its obligations hereunder and the security interests in the Collateral of such Guarantor shall be automatically released upon the consummation of any
transaction permitted by the Credit Agreement as a result of which such Guarantor ceases to be a Restricted Subsidiary. 
 (c) Upon any sale or other transfer by any Obligor of any Collateral that is permitted under the Credit Agreement to any person that is not an Obligor, or upon the effectiveness of any written consent to
the release of the security interest granted hereby in any Collateral pursuant to Section 9.08 of the Credit Agreement, the security interest in such Collateral shall be automatically released; 

(d) In connection with any termination or release pursuant to paragraph (a), (b) or (c) of this
Section 7.12, the Collateral Agent shall promptly execute and deliver to any Obligor, at such Obligor’s, expense all documents that such Obligor shall request to evidence such termination or release subject, with respect to clauses
(b) and (c), to the Collateral Agent’s receipt of a certification by the Borrower and any applicable Loan Party state that such transaction, sale or other transfer, as applicable and the related release is permitted under the terms of the
Loan Documents. Any execution and delivery of documents pursuant to this Section 7.12 shall be without recourse to or warranty by the Collateral Agent. 

  
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 (e) Upon the occurrence of a Ratings Event, at the Borrower’s written
request, any Security Interest shall be released (the “Collateral Release”). In the event that any action is required to evidence the Collateral Release, the Lenders irrevocably authorize the Administrative Agent and the Collateral
Agent to take any such action, including the execution and delivery of such documents, as any Loan Party may reasonably request to evidence such release subject to the Collateral Agent’s receipt of a certification by the Borrower stating that a
Ratings Event has occurred. 
 (f) If, at any time after a Collateral Release for a period of twelve
(12) consecutive months, the Borrower’s corporate credit rating and corporate family rating are below either (A) both (x) BB+ (stable) from S&P and (y) Ba1 (stable) from Moody’s or (B) either (x) BB
(stable) from S&P or (y) Ba2 (stable) from Moody’s, at the request of the Administrative Agent, the Borrower shall, and shall cause any other Loan Party to, reinstate any Security Interest pursuant to the Collateral Release within
ninety (90) days or such longer period as the Administrative Agent may agree in its reasonable discretion. 

SECTION 7.13. Additional Subsidiaries. Upon execution and delivery by the Collateral Agent and any Wholly Owned Domestic
Subsidiary of the Borrower that is required to become a party hereto by Section 5.10 of the Credit Agreement of an instrument in the form of Exhibit I hereto, such subsidiary shall become a Guarantor hereunder with the same force
and effect as if originally named as a Guarantor herein. The execution and delivery of any such instrument shall not require the consent of any other party to this Agreement. The rights and obligations of each party to this Agreement shall remain in
full force and effect notwithstanding the addition of any new party to this Agreement. 
 SECTION 7.14. Right of
Set-off. If an Event of Default shall have occurred and be continuing, each Secured Party and each Issuing Bank is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to 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 Secured Party or such Issuing Bank to or for the credit or the account of any party to this Agreement against any
of and all the obligations of such party now or hereafter existing under this Agreement owed to such Secured Party or such Issuing Bank, irrespective of whether or not such Secured Party or such Issuing Bank shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each Secured Party and each Issuing Bank under this Section 7.14 are in addition to other rights and remedies (including other rights of set-off) that such Secured Party or
such Issuing Bank may have. 
 [Signature Page Follows] 

  
 -32-

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written. 
  

					
	 ALPHA NATURAL RESOURCES, INC.,
 as Borrower

		
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	Executive Vice President, General Counsel and Secretary

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
	
	ALPHA AMERICAN COAL COMPANY, LLC
	ALPHA AMERICAN COAL HOLDING, LLC
	ALPHA COAL RESOURCES COMPANY, LLC
	 ALPHA COAL SALES CO., LLC

ALPHA COAL WEST, INC.

	 ALPHA ENERGY SALES, LLC
 ALPHA
INDIA, LLC

	ALPHA MIDWEST HOLDING COMPANY
	ALPHA PA COAL TERMINAL, LLC
	ALPHA WYOMING LAND COMPANY, LLC
	BARBARA HOLDINGS INC.
	CASTLE GATE HOLDING COMPANY
	COAL GAS RECOVERY, LLC
	DELTA MINE HOLDING COMPANY
	DRY SYSTEMS TECHNOLOGIES, INC.
	ENERGY DEVELOPMENT CORPORATION
	 FOUNDATION MINING, LLC

FOUNDATION PA COAL COMPANY, LLC

	FOUNDATION ROYALTY COMPANY
	FREEPORT MINING, LLC
	 FREEPORT RESOURCES COMPANY, LLC

JAY CREEK HOLDING, LLC

	KINGSTON MINING, INC.
	KINGSTON PROCESSING, INC.
	KINGSTON RESOURCES, INC.
	LAUREL CREEK CO., INC.
	MAPLE MEADOW MINING COMPANY
	NEWEAGLE COAL SALES CORP.
	NEWEAGLE DEVELOPMENT CORP.
	NEWEAGLE INDUSTRIES, INC.
	NEWEAGLE MINING CORP.
	ODELL PROCESSING INC.
	PAYNTER BRANCH MINING, INC.
	 PENNSYLVANIA LAND HOLDINGS
COMPANY, LLC

	PENNSYLVANIA SERVICES CORPORATION
	PIONEER FUEL CORPORATION
	PIONEER MINING, INC.
	PLATEAU MINING CORPORATION
	RED ASH SALES COMPANY, INC.
	RIVER PROCESSING CORPORATION
	RIVEREAGLE CORP.
	RIVERTON COAL PRODUCTION INC.
	RIVERTON COAL SALES, INC.
	ROCKSPRING DEVELOPMENT, INC.
	RUHRKOHLE TRADING CORPORATION
	SIMMONS FORK MINING, INC.

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
					
	WABASH MINE HOLDING COMPANY
	WARRICK HOLDING COMPANY
		
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	Vice President and Secretary
	
	ALPHA SHIPPING AND CHARTERING, LLC
		
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	Vice President and Assistant Secretary
	
	ALPHA LAND AND RESERVES, LLC
		
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	President and Manager
	
	ALPHA NATURAL RESOURCES, LLC
	ALPHA NATURAL RESOURCES SERVICES, LLC
		
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	Executive Vice President, General Counsel and Assistant Secretary

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
	
	ALPHA TERMINAL COMPANY, LLC
	AMFIRE, LLC
	AMFIRE HOLDINGS, LLC
	 AMFIRE MINING COMPANY, LLC
 AXIOM EXCAVATING AND GRADING SERVICES, LLC

	BLACK DOG COAL, LLC
	BROOKS RUN MINING COMPANY, LLC
	BUCHANAN ENERGY COMPANY, LLC
	CALLAWAY LAND AND RESERVES, LLC
	COBRA NATURAL RESOURCES, LLC
	CORAL ENERGY SERVICES, LLC
	DICKENSON-RUSSELL COAL COMPANY, LLC
	 DICKENSON-RUSSELL LAND AND RESERVES, LLC

	ENTERPRISE LAND AND RESERVES, LLC
	ENTERPRISE MINING COMPANY, LLC
	ESPERANZA COAL CO., LLC
	HERNDON PROCESSING COMPANY, LLC
	KEPLER PROCESSING COMPANY, LLC
	KINGWOOD MINING COMPANY, LLC
	LITWAR PROCESSING COMPANY, LLC
	MAXXIM REBUILD CO., LLC
	MAXXIM SHARED SERVICES, LLC
	MAXXUM CARBON RESOURCES, LLC
	 MCDOWELL-WYOMING COAL COMPANY LLC

	NICEWONDER CONTRACTING, INC.
	PALLADIAN LIME, LLC
	PARAMONT COAL COMPANY VIRGINIA, LLC
	PREMIUM ENERGY, LLC
	RIVERSIDE ENERGY COMPANY, LLC
	SOLOMONS MINING COMPANY
	TWIN STAR MINING, INC.
	VIRGINIA ENERGY COMPANY, LLC
	WHITE FLAME ENERGY, INC.

  

					
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	Vice President

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
					
	AMFIRE WV, L.P.
		
	By:	 	 AMFIRE Holdings, LLC,
 as General Partner

		
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	Vice President
	
	CUMBERLAND COAL RESOURCES, LP
		
	By:	 	 Pennsylvania Services Corporation,
 as General Partner

		
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	Vice President and Secretary
	
	EMERALD COAL RESOURCES, LP
		
	By:	 	 Pennsylvania Services Corporation,
 as General Partner

		
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	Vice President and Secretary

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
	
	ALPHA AUSTRALIA, LLC
	ALPHA AUSTRALIA SERVICES, LLC
	ALPHA NATURAL RESOURCES INTERNATIONAL, LLC
	ALPHA SUB FIVE, LLC
	ALPHA SUB FOUR, LLC
	ALPHA SUB ONE, LLC
	ALPHA SUB THREE, LLC
	ALPHA SUB TWO, LLC

  

					
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	President, Manager and Secretary
	
	MOUNTAIN MERGER SUB, INC.
		
	By:	 	 /s/ Vaughn R. Groves

		 	Name:	 	Vaughn R. Groves
		 	Title:	 	Executive Vice President, General Counsel and Secretary

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
	
	A. T. MASSEY COAL COMPANY, INC.
	ALEX ENERGY, INC.
	ALLIANCE COAL CORPORATION
	ARACOMA COAL COMPANY, INC.
	BANDMILL COAL CORPORATION
	BANDYTOWN COAL COMPANY
	BARNABUS LAND COMPANY
	BELFRY COAL CORPORATION
	BEN CREEK COAL COMPANY
	BIG BEAR MINING COMPANY
	BIG LAUREL MINING CORPORATION
	BLACK KING MINE DEVELOPMENT CO.
	BLACK MOUNTAIN RESOURCES LLC
	BLUFF SPUR COAL CORPORATION
	BOONE EAST DEVELOPMENT CO.
	BOONE ENERGY COMPANY
	BOONE WEST DEVELOPMENT CO.
	BULL MOUNTAIN MINING CORPORATION
	CAVE SPUR COAL LLC
	CENTRAL PENN ENERGY COMPANY, INC.
	 CENTRAL WEST VIRGINIA ENERGY COMPANY

	CERES LAND COMPANY
	CLEAR FORK COAL COMPANY
	CLOVERLICK COAL COMPANY LLC
	CLOVERLICK MANAGEMENT LLC
	CRYSTAL FUELS COMPANY
	CUMBERLAND EQUIPMENT CORPORATION
	CUMBERLAND RESOURCES CORPORATION
	DEHUE COAL COMPANY
	DELBARTON MINING COMPANY
	DEMETER LAND COMPANY
	DORCHESTER ASSOCIATES LLC
	DORCHESTER ENTERPRISES, INCORPORATED
	 DOUGLAS POCAHONTAS COAL CORPORATION

	DRIH CORPORATION
	DUCHESS COAL COMPANY
	EAGLE ENERGY, INC.
	ELK RUN COAL COMPANY, INC.
	EN ROUTE LLC
	EXETER COAL CORPORATION
	FOGLESONG ENERGY COMPANY
	GOALS COAL COMPANY
	GREEN VALLEY COAL COMPANY
	GREYEAGLE COAL COMPANY
	GUEST MOUNTAIN MINING CORPORATION
	HADEN FARMS, INC.

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
	
	 HARLAN RECLAMATION SERVICES LLC

HAZY RIDGE COAL COMPANY
 HIGH SPLINT COAL
LLC
 HIGHLAND MINING COMPANY
 HOPKINS
CREEK COAL COMPANY
 INDEPENDENCE COAL COMPANY, INC.
 JACKS BRANCH COAL COMPANY
 JOBONER COAL COMPANY

JST LAND COMPANY
 JST MINING COMPANY

JST RESOURCES LLC
 KANAWHA ENERGY
COMPANY
 KNOX CREEK COAL CORPORATION

LAUREN LAND COMPANY
 LAXARE, INC.

LOGAN COUNTY MINE SERVICES, INC.
 LONG FORK COAL
COMPANY
 LYNN BRANCH COAL COMPANY, INC.

MAGGARD BRANCH COAL LLC
 MAJESTIC MINING,
INC.
 MARFORK COAL COMPANY, INC.

MARTIN COUNTY COAL CORPORATION
 MASSEY COAL SALES
COMPANY, INC.
 MASSEY COAL SERVICES, INC.
 MASSEY ENERGY COMPANY
 MASSEY EUROPEAN SALES, INC.

MASSEY GAS & OIL COMPANY
 MEADOW BRANCH
COAL LLC
 MEADOW BRANCH MINING CORPORATION
 MILL BRANCH COAL CORPORATION
 MOUNTAIN MANAGEMENT, INCORPORATED

NEW MARKET LAND COMPANY
 NEW RIDGE MINING
COMPANY
 NEW RIVER ENERGY CORPORATION

NICCO CORPORATION
 NICHOLAS ENERGY
COMPANY
 NINE MILE SPUR LLC
 NORTH FORK
COAL CORPORATION
 OMAR MINING COMPANY

OSAKA MINING CORPORATION
 PANTHER MINING
LLC
 PEERLESS EAGLE COAL CO.

PERFORMANCE COAL COMPANY
 PETER CAVE MINING
COMPANY
 PIGEON CREEK PROCESSING CORPORATION
 PILGRIM MINING COMPANY, INC.

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
	
	 POWELL RIVER RESOURCES CORPORATION
 POWER MOUNTAIN COAL COMPANY
 RAVEN RESOURCES, INC.

RAWL SALES & PROCESSING CO.
 RESOURCE
DEVELOPMENT LLC
 RESOURCE LAND COMPANY LLC
 ROAD FORK DEVELOPMENT COMPANY, INC.
 ROBINSON-PHILLIPS COAL COMPANY

RODA RESOURCES LLC
 ROSTRAVER ENERGY
COMPANY
 RUM CREEK COAL SALES, INC.

RUSSELL FORK COAL COMPANY
 SC COAL
CORPORATION
 SCARLET DEVELOPMENT COMPANY
 SHANNON-POCAHONTAS COAL CORPORATION
 SHENANDOAH CAPITAL
MANAGEMENT CORP.
 SIDNEY COAL COMPANY, INC.
 SPARTAN MINING COMPANY
 STILLHOUSE MINING LLC

STIRRAT COAL COMPANY
 STONE MINING
COMPANY
 SUPPORT MINING COMPANY

SYCAMORE FUELS, INC.
 T. C. H. COAL
CO.
 TALON LOADOUT COMPANY
 TENNESSEE CONSOLIDATED COAL COMPANY
 TENNESSEE ENERGY
CORP.
 THUNDER MINING COMPANY
 TOWN
CREEK COAL COMPANY
 TRACE CREEK COAL COMPANY
 VANTAGE MINING COMPANY
 WEST KENTUCKY ENERGY COMPANY

WHITE BUCK COAL COMPANY
 WILLIAMS MOUNTAIN COAL
COMPANY
 WINIFREDE COAL CORPORATION

WYOMAC COAL COMPANY, INC.

  

			
	By:	 	 /s/ Jeffrey M. Jarosinski

		 	 Jeffrey M. Jarosinski

Treasurer

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
					
	HANNA LAND COMPANY, LLC
	TUCSON LIMITED LIABILITY COMPANY
		
		 	By Their Sole Manager, ALEX ENERGY, INC.
			
		 	By:	 	 /s/ Jeffrey M. Jarosinski

		 		 	Jeffrey M. Jarosinski
		 		 	Treasurer
		
		 	By Their Sole Member, A. T. MASSEY COAL COMPANY, INC.
			
		 	By:	 	 /s/ Jeffrey M. Jarosinski

		 		 	 Jeffrey M. Jarosinski

Treasurer

  
 Signature
Page to 
 Amended and Restated Guarantee and Collateral Agreement 

 
			
	CITICORP NORTH AMERICA, INC.,
		 	as Collateral Agent
		
	By:	 	 /s/ Justin S. Tichauer

		 	Name: Justin S. Tichauer
		 	Title: Vice President

  
 1exhibit_10-1.htm

EXHIBIT 10.1

 

NEITHER THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE COMPANY UPON CONVERSION HEREOF (COLLECTIVELY, THE "SECURITIES") HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED: (i) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE SECURITIES LAWS; OR (ii) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT OR; (iii) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

CONVERTIBLE PROMISSORY NOTE

 

	$310,000.00 	May 24, 2011

 

 

 FOR VALUE RECEIVED, EVCARCO, INC., a Nevada corporation (hereinafter called the “Company”), hereby promises to pay to the order of CHARLES SCOTT O’NEAL, a individual, or registered assigns at 9013 Wild Horse Dr. North Richland Hills, TX 76182, (the “Holder”) the sum of $310,000.00 together with any interest as set forth herein, on February 28, 2012 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate of five percent (5%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. This Note may be prepaid in whole at any point. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Company by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. As used in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of Dallas, Texas are authorized or required by law or executive order to remain closed.

This Note relates to compensation accrued to the Holder, and payments of principal will constitute taxable compensation to the Holder.  This Note shall not be subject to preemptive rights or other similar rights of shareholders of the Company.

The following terms shall apply to this Note:

 

 

  

1

  

 

ARTICLE I. CONVERSION RIGHTS

 

1.0           Conversion Right:  The Holder shall have the right from time to time, and at any timefollowing the date of this Note and ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non- assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Company into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 9.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than 31 days’ prior notice to the Company, and the provisions of the conversion limitation shall continue to apply until such 31st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Company by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Company before 6:00 p.m. CST on such conversion date (the “Conversion Date”). The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Company’s option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Company’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

1.2           Conversion Price: (a) Calculation of Conversion Price. The conversion price (the “Conversion Price”) shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Company relating to the Company’s securities or the securities of any subsidiary of the Company, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The "Variable Conversion Price" shall mean 65% multiplied by the Market Price (as defined herein) (representing a discount rate of 35%). “Market Price” means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. “Trading Price” means, for any security as of any date, the closing bid price on the Over-the-Counter Bulletin Board, or applicable trading market (the “OTCBB”) as reported by a reliable reporting service (“Reporting Service”) mutually acceptable to Company and Holder (i.e. Bloomberg) or, if the OTCBB is not the principal trading market for such security, the closing price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no closing price of such security is available in any of the foregoing manners, the average of the closing prices of any market maker’s for such security that are listed in the “pink sheets” by the National Quotation Bureau, Inc. If the Trading Price cannot be calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined by the Company and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion Price of such Notes. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTCBB, or on the principal securities exchange or other securities market on which the Common Stock is then being traded.

 

 

  

2

  

 

 

(b) Conversion Price During Major Announcements. Notwithstanding anything contained in Section 1.2(a) to the contrary, in the event the Company (i) makes a public announcement that it intends to consolidate or merge with any other corporation (other than a merger in which the Company is the surviving or continuing corporation and its capital stock is unchanged) or sell or transfer all or substantially all of the assets of the Company or (ii) any person, group or entity (including the Company) publicly announces a tender offer to purchase 50% or more of the Company’s Common Stock (or any other takeover scheme) (the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the “Announcement Date”), then the Conversion Price shall, effective upon the Announcement Date and continuing through the Adjusted Conversion Price Termination Date (as defined below), be equal to the lower of (x) the Conversion Price which would have been applicable for a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in effect. From and after the Adjusted Conversion Price Termination Date, the Conversion Price shall be determined as set forth in this Section 1.2(a). For purposes hereof, “Adjusted Conversion Price Termination Date” shall mean, with respect to any proposed transaction or tender offer (or takeover scheme) for which a public announcement as contemplated by this Section 1.2(b) has been made, the date upon which the Company (in the case of clause (i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly announces the termination or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section 1.2(b) to become operative.

1.3           Authorized Shares:   The Company covenants that during the period the conversion right exists, the Company will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Company is required at all times to have authorized and reserved three times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Notes in effect from time to time) (the “Reserved Amount”). The Reserved Amount shall be increased from time to time upon written request from the Company. The Company represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Company shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Company shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes. The Company (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.

 

 

  

3

  

 

If, at any time the Company does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.

1.4            Method of Conversion:   (a) Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Company a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m. CST) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Company.

(b) Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless the entire unpaid principal amount of this Note is so converted. The Holder and the Company shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such records of the Company shall, prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.

(c) Payment of Taxes. The Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that of the Holder (or in street name), and the Company shall not be required to issue or deliver any such shares or other securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Company the amount of any such tax or shall have established to the satisfaction of the Company that such tax has been paid.

  

4

  

(d) Delivery of Common Stock upon Conversion. Upon receipt by the Company from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Company shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (but in any event the fifth (5th) business day being hereinafter referred to as the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement.

(e) Obligation of Company to Deliver Common Stock. Upon receipt by the Company of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Company defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Company’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Company to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Company, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Company before 6:00 p.m. CST, on such date.

(f) Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Company is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this Section 1.4, the Company shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

(g) Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in Section 1.3 above, which failure shall be governed by such Section) the Company shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Company fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Company by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Company agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, and interference with such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained in this Section 1.4(g) are justified.

 

 

 

  

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1.5           Concerning the Shares:  The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Company or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Company who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as otherwise provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

The legend set forth above shall be removed and the Company shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Company or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or (ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

 

 

  

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1.6           Effect of Certain Events:  (a) Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Company, the effectuation by the Company of a transaction or series of related transactions in which more than 50% of the voting power of the Company is disposed of, or the consolidation, merger or other business combination of the Company with or into any other Person (as defined below) or Persons when the Company is not the survivor shall either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Company shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

(b) Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Company shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Company or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Company other than in connection with a plan of complete liquidation of the Company, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Company shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Company) assumes by written instrument the obligations of this Section 1.6 (b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

(c) Adjustment Due to Distribution. If the Company shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Company’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.

 

 

  

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(d) Adjustment Due to Dilutive Issuance. If, at any time when any Notes are issued and outstanding, the Company issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a “Dilutive Issuance”), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to the amount of the consideration per share received by the Company in such Dilutive Issuance.

The Company shall be deemed to have issued or sold shares of Common Stock if the Company in any manner issues or grants any warrants, rights or options (not including employee stock option plans), whether or not immediately exercisable, to subscribe for or to purchase Common Stock or other securities convertible into or exchangeable for Common Stock (“Convertible Securities”) (such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as “Options”) and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the “price per share for which Common Stock is issuable upon the exercise of such Options” is determined by dividing (i) the total amount, if any, received or receivable by the Company as consideration for the issuance or granting of all such Options, plus the minimum aggregate amount of additional consideration, if any, payable to the Company upon the exercise of all such Options, plus, in the case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional consideration payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming full conversion of Convertible Securities, if applicable). No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities issuable upon exercise of such Options.

Additionally, the Company shall be deemed to have issued or sold shares of Common Stock if the Company in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than where the same are issuable upon the exercise of Options), and the price per share for which Common Stock is issuable upon such conversion or exchange is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share. For the purposes of the preceding sentence, the “price per share for which Common Stock is issuable upon such conversion or exchange” is determined by dividing (i) the total amount, if any, received or receivable by the Company as consideration for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities. No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities.

 

 

 

  

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(e) Purchase Rights. If, at any time when any Notes are issued and outstanding, the Company issues any convertible securities or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata to the record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

(f) Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Company, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder of a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon conversion of the Note.

1.7           Trading Market Limitations:  Unless permitted by the applicable rules and regulations of the principal securities market on which the Common Stock is then listed or traded, in no event shall the Company issue upon conversion of or otherwise pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum number of shares of Common Stock that the Company can issue pursuant to any rule of the principal United States securities market on which the Common Stock is then traded (the “Maximum Share Amount”), which shall be 9.99% of the total shares outstanding on the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits, stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date hereof. Once the Maximum Share Amount has been issued, if the Company fails to eliminate any prohibitions under applicable law or the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the Company or any of its securities on the Company’s ability to issue shares of Common Stock in excess of the Maximum Share Amount, in lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.3 of the Note.

1.8           Status as Shareholder:  Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure by the Company to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Company) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Company shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Company’s failure to convert this Note.

 

 

 

  

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ARTICLE II. CERTAIN COVENANTS

2.1           Distributions on Capital Stock:  So long as the Company shall have any obligation under this Note, the Company shall not without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Company’s disinterested directors.

2.2           Restriction on Stock Repurchases:  So long as the Company shall have any obligation under this Note, the Company shall not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Company or any warrants, rights or options to purchase or acquire any such shares.

2.3           Borrowings:   So long as the Company shall have any obligation under this Note, the Company shall not, without the Holder’s written consent, create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except (a) borrowings in existence or committed on the date hereof and of which the Company has informed Holder in writing prior to the date hereof, (b) indebtedness to trade creditors or financial institutions incurred in the ordinary course of business or (c) borrowings, the proceeds of which shall be used to repay this Note.

2.4           Sale of Assets:  So long as the Company shall have any obligation under this Note, the Company shall not, without the Holder’s written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

 

 

  

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2.5           Advances and Loans:  So long as the Company shall have any obligation under this Note, the Company shall not, without the Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Company, except loans, credits or advances (a) in existence or committed on the date hereof and which the Company has informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $100,000.

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur:

3.1           Failure to Pay Principal or Interest:  The Company fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise.

3.2           Conversion and the Shares:  The Company fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Company directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion.

3.3           Breach of Covenants:  The Company breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Promissory Note and such breach continues for a period of ten (10) days after written notice thereof to the Company from the Holder.

3.4           Breach of Representations and Warranties:  Any representation or warranty of the Company made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

  

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3.5           Receiver or Trustee:  The Company or any subsidiary of the Company shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed.

3.6           Judgments:  Any money judgment, writ or similar process shall be entered or filed against the Company or any subsidiary of the Company or any of its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

3.7           Bankruptcy:  Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company or any subsidiary of the Company.

3.8           Delisting of Common Stock:  The Company shall fail to maintain the listing of the Common Stock on at least one of the OTCBB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.

3.9           Failure to Comply with the Exchange Act:  The Company shall fail to comply with the reporting requirements of the Exchange Act; and/or the Company shall cease to be subject to the reporting requirements of the Exchange Act.

3.10           Liquidation:  Any dissolution, liquidation, or winding up of Company or any substantial portion of its business.

3.11           Cessation of Operations:  Any cessation of operations by Company or Company admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Company’s ability to continue as a “going concern” shall not be an admission that the Company cannot pay its debts as they become due.

3.12           Maintenance of Assets:  The failure by Company to maintain any material intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

If the Company fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right at any time, so long as the Company remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Company, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Company equal to the Default Amount divided by the Conversion Price then in effect.

 

 

  

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ARTICLE IV. MISCELLANEOUS

 

4.1           Failure or Indulgence Not Waiver:   No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

4.2           Notices:   All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

If to the Company, to:

EVCARCO, INC.

7703 Sand Street

Fort Worth, Texas 76118

Attn: NIKOLAY FROLOV, Chief Financial Officer

Facsimile: 817.595.0755

Email: Nikolay@evcarco.com

If to the Holder:

Charles Scott O’Neal

North Richland Hills, TX 

4.3           Amendments:  This Note and any provision hereof may only be amended by an instrument in writing signed by the Company and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.

4.4           Assignability:  This Note shall be binding upon the Company and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

 

 

  

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4.5           Cost of Collection:  If default is made in the payment of this Note, the Company shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.

4.6           Governing Law:   This Note shall be governed by and construed in accordance with the laws of the State of Texas without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Texas or in the federal courts located in the Tarrant county. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

4.7           Agreement:   By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Convertible Promissory Note.

4.8           Notice of Corporate Events:  Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Company shall provide the Holder with prior notification of any meeting of the Company’s shareholders (and copies of proxy materials and other information sent to shareholders). In the event of any taking by the Company of a record of its shareholders for the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Company or any proposed liquidation, dissolution or winding up of the Company, the Company shall mail a notice to the Holder, at least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event to the extent known at such time. The Company shall make a public announcement of any event requiring notification to the Holder hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section 4.8.

 

 

  

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4.9           Remedies:  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required.

IN WITNESS WHEREOF, Company has caused this Note to be signed in its name by its duly authorized officer this May 24, 2011.

COMPANY:

EVCARCO, INC.

By: /s/  Nikolay Frolov                                 

NIKOLAY FROLOV

Chief Financial Officer

HOLDER:

CHARLES SCOTT O’NEAL

By: /s/ Charles Scott O'Neal                          

Charles Scott O’Neal

 

 

  

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EXHIBIT A

NOTICE OF CONVERSION

The undersigned hereby elects to convert $_________________ principal amount of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of EVCARCO, INC., a Nevada corporation (the “Borrower”) according to the conditions of the convertible note of the Borrower dated as of May 24, 2011 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.

Box Checked as to applicable instructions:

[ ] The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).

Name of DTC Prime Broker:

Account Number:

[ ] The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:

Charles Scott O’Neal

9013 Wild Horse Dr

North Richland Hills, TX 76182

Attention: Mr. Charles Scott O’Neal

(817) 896-3300

Date of Conversion: _______________________

Applicable Conversion Price: $_________________

Number of Shares of Common Stock to be issued

pursuant to Conversion of the Note: ______________

Amount of Principal Balance due remaining

under the Note after this conversion: $_________________

Charles Scott O’Neal

By:_____________________________

Date: ______________

9013 Wild Horse Dr.

North Richland Hills, TX 76182

 

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