Document:

EXHIBIT
      10.2

     

    FIFTH
      AMENDMENT TO SECOND AMENDED

    AND
      RESTATED FINANCING AGREEMENT

     

    THIS
      FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED FINANCING
      AGREEMENT
      (“this
      Agreement”)
      entered into on this 18th day of April, 2008, to be effective, unless another
      effective date is otherwise herein specified, as of the date hereof, is by
      and
      among The CIT Group/Business Credit, Inc. (“CIT”),
      SunTrust Bank (“SunTrust”),
      Wachovia Bank, N.A. (“Wachovia”)
      and
      PNC Bank National Association (“PNC”)
      (CIT,
      SunTrust, Wachovia and PNC being herein collectively referred to as the
“Lenders”),
      CIT
      as administrative and collateral agent (“Agent”),
      United Fuel & Energy Corporation, a Texas corporation (“United”),
      Three
      D Oil Co. of Kilgore, Inc., a Texas corporation (“Three
      D”)
      and
      Cardlock Fuels Systems, Inc. a California corporation (“Cardlock”)
      (United, Three D and Cardlock being herein individually referred to as a
“Company”
and
      collectively referred to as the “Companies”),
      and
      United Fuel & Energy Corporation, a Nevada corporation (“Parent”).

     

     

    RECITALS

     

    A. Companies,
      Agent and Lenders are the present parties to that certain Second Amended and
      Restated Financing Agreement, dated as of March 27, 2007, originally
      executed by United, Three D, Lenders and Agent, as amended from time to
      time, including, without limitation, as amended by that certain Forbearance
      Agreement and Third Amendment to Second Amended and Restated Financing
      Agreement, dated December 28, 2007, executed by Companies, Agent, and
      Parent (the “Forbearance
      Agreement”)
      (as
      amended from time to time, the “Financing
      Agreement”).

     

    B. Pursuant
      to the terms and conditions of this Agreement, each of Companies, Agent and
      Lenders are willing to amend the Financing Agreement, and certain of the other
      Loan Documents.

     

    NOW,
      THEREFORE,
      in
      consideration of the premises herein contained and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties, intending to be legally bound, agree as follows, as hereinafter set
      forth:

     

    ARTICLE
      I

    Definitions

     

    1.01 Capitalized
      terms used in this Agreement are defined in the Financing Agreement, as amended
      hereby, unless otherwise stated.

     

    ARTICLE
      II

    Agreements

     

    2.01 Amendment
      to Section 1 of Financing Agreement; Amendment and Restatement of
      Definition of “Borrowing Base”.
      Section 1
      of the
      Financing Agreement is hereby amended by amending and restating the definition
      of “Borrowing Base” to read in its entirety as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Borrowing
      Base
      shall
      mean as to Companies, the amount calculated as follows:

     

    (a) as
      long as the Revolving Line of Credit is $80,000,000 or less or the Temporary
      Line Increase Period is in effect, the lesser of
      (i) the Revolving Line of Credit or (ii) the
      amount calculated as follows:
      (A)
      eighty-five percent (85%) of Companies’ aggregate outstanding Eligible Accounts
      Receivable and Companies’ aggregate outstanding Eligible Unbilled Card-Lock
      Customer Accounts; provided,
      however,
      that if
      the then Dilution Percentage is greater than five percent (5.0%), then the
      rate
      of advance herein shall be reduced by the percentage points by which the
      Dilution Percentage exceeds five percent (5.0%), plus
      (B)
the
      sum of
      (x)
      sixty-five percent (65%) of the aggregate value of Companies’ Eligible
      Inventory, valued at the lower of cost or market, on an average cost basis,
      plus
      (y)
      sixty-five percent (65%) of the aggregate value of Companies’ Eligible Card-Lock
      Inventory, valued at the lower of cost or market, on an average cost basis,
      plus
      (C) the
      Eligible Equipment Based Amount, plus
      (D) one
      hundred percent (100%) of the aggregate Eligible Cash Surrender Value of
      Eligible Life Insurance Policy, plus
      (E) the
      lesser of
      (x) one
      hundred percent (100%) of the Dollar balance of the Eligible Cash Collateral
      or
      (y) $10,000,000, minus
      (F) the Availability Block, minus
      (G) any
      applicable Availability Reserves; or

     

    (b) as
      long as the Revolving Line of Credit during any period other than during the
      Temporary Line Increase Period is greater than $80,000,000, (i) the lesser
      of
      (A) the Revolving Line of Credit or (B) the
      amount calculated as follows:
      (u)
      eighty-five percent (85%) of Companies’ aggregate outstanding Eligible Accounts
      Receivable and Companies’ aggregate outstanding Eligible Unbilled Card-Lock
      Customer Accounts; provided,
      however,
      that if
      the then Dilution Percentage is greater than five percent (5.0%), then the
      rate
      of advance herein shall be reduced by the percentage points by which the
      Dilution Percentage exceeds five percent (5.0%), plus
      (v)
the
      sum of
      (I)
      sixty-five percent (65%) of the aggregate value of Companies’ Eligible
      Inventory, valued at the lower of cost or market, on an average cost basis,
      plus
      (II)
      sixty-five percent (65%) of the aggregate value of Companies’ Eligible Card-Lock
      Inventory, valued at the lower of cost or market, on an average cost basis,
      plus
      (w) the
      Eligible Equipment Based Amount, plus
      (x) one
      hundred percent (100%) of the aggregate Eligible Cash Surrender Value of
      Eligible Life Insurance Policy, plus
      (y) the
      lesser of
      (I) one
      hundred percent (100%) of the Dollar balance of the Eligible Cash Collateral
      or
      (II) $10,000,000, minus
      (z) the Availability Block, minus
      (ii) any applicable Availability Reserves.”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.02 Amendment
      to Section 1 of Financing Agreement; Amendment and Restatement of
      Definition of “Commitment”. Section 1
      of the
      Financing Agreement is hereby amended by amending and restating the definition
      of “Commitment” to read in its entirety as follows:

     

    “Commitment
      shall
      mean, as to any Lender, the amount of the commitment for such Lender set forth
      on the signature page to the Fifth Amendment or in the Assignment and Transfer
      Agreement to which such Lender is a party, as such amount may be reduced or
      increased in accordance with the provisions of Paragraph
      13.4(b)
      of
Section
      13
      or any
      other applicable provision of this Financing Agreement.”

     

    2.03 Amendment
      to Section 1 of Financing Agreement; Addition of New
      Definitions”. Section 1
      of the
      Financing Agreement is hereby amended by adding thereto the following new
      definitions to be inserted in their proper alphabetical order and to read in
      its
      entirety as follows:

     

    “Fifth
      Amendment
      shall
      mean that certain Fifth Amendment to Second Amended and Restated Financing
      Agreement executed by Agent, Lenders, Companies and Parent.

     

    Temporary
      Line Increase Period
      shall
      mean the period beginning on the date of execution of the Fifth Amendment and
      ending on the earlier to occur of (i) sixtieth day after the date of execution
      of the Fifth Amendment or (ii) the date of sale or liquidation of the Eligible
      Life Insurance Policy.”

     

    2.04 Amendment
      to Section 1 of Financing Agreement; Amendment and Restatement of
      Definition of “Line of Credit”. Section 1
      of the
      Financing Agreement is hereby amended by amending and restating the definition
      of “Line of Credit” to read in its entirety as follows:

     

    “Line
      of Credit
      shall
      mean the aggregate commitment of the Lenders to (i) make Revolving Loans
      pursuant to Section 3
      of this
      Financing Agreement, (ii) assist Companies in opening Letters of Credit
      pursuant to Section 5
      of this
      Financing Agreement and (iii) make the Term Loans pursuant to Section 4
      of this
      Financing Agreement in the aggregate amount equal to the aggregate Commitment
      for each Lender.”

     

    2.05 Amendment
      to Section 1 of Financing Agreement; Amendment and Restatement of
      Definition of “Revolving Line of Credit”. Section 1
      of the
      Financing Agreement is hereby amended by amending and restating the definition
      of “Revolving Line of Credit” to read in its entirely as follows:

     

    “Revolving
      Line of Credit
      shall
      mean the aggregate commitment of the Lenders to make loans and advances pursuant
      to Section 3
      and
      issue Letters of Credit Guaranties to the Companies in the aggregate amount
      equal to the aggregate Revolving Line of Credit Commitment for each Lender
      as
      set forth on the signature page of the Fifth Amendment or in the Assignment
      and
      Transfer Agreement to which such Lender is a party, as such amount may be
      reduced or increased in accordance with the provisions of Paragraph 13.4(b)
      of
Section 13
      or any
      other applicable provision of this Financing Agreement.”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.06 Additional
      Agreements.
      Notwithstanding any provision to the contrary in the Financing Agreement or
      any
      other Loan Document:

     

    (a) The
      parties hereto agree that during the Temporary Line Increase Period, the
      aggregate amount of the Commitments and the Revolving Line of Credit Commitments
      shall increase by $2,666,000, with the Commitment and Revolving Line of Credit
      Commitment of CIT and Wachovia increasing respectively by $1,333,000, and there
      being no increase during the Temporary Line Increase Period in the respective
      Commitment and Revolving Line of Credit Commitment of PNC and SunTrust. Agent
      and Lenders hereby waive any violation which might otherwise occur pursuant
      to
      the provisions of the Financing Agreement, including, without limitation, the
      provisions of Section 3.1(c)
      of the
      Financing Agreement, due to this $2,666,000 increase in the aggregate amount
      of
      the Commitments and Revolving Line of Credit Commitments during the Temporary
      Line Increase Period;

     

    (b) Lenders
      and Agent hereby agree that the Eligible Life Insurance Policy may be sold
      or
      liquidated, provided that the net cash proceeds received from such sale or
      liquidation equal at least $2,666,000 and all the net proceeds from such sale
      or
      liquidation are immediately paid to Agent to be applied to the Obligations
      as
      set forth below in Paragraph (c);
      and

     

    (c) The
      parties hereby agree that the net proceeds from such sale or liquidation of
      the
      Eligible Life Insurance Policy shall be applied first to the outstanding
      principal amount of the Revolving Loans and then to such other of the
      Obligations in such order as the Agent and Required Lenders shall determine,
      in
      their sole discretion, and such amount paid to Agent shall permanently decrease
      by such amount the Eligible Cash Surrender Value of Eligible Life Insurance
      Policy. The parties hereto further agree that the first $2,666,000 in such
      net
      proceeds shall be applied equally to the Revolving Loans respectively owing
      to
      CIT and Wachovia and shall reduce respectively by $1,333,000 the respective
      Commitment and Revolving Line of Credit Commitment of each of CIT and Wachovia
      until the respective Commitment and Revolving Line of Credit Commitment of
      CIT
      and Wachovia equals what it was immediately prior to the commencement of the
      Temporary Line of Increase Period, with any remaining net proceeds applied
      to
      the Revolving Loans of each Lender according to such Lender’s Pro Rata
      Percentage of the Revolving Line of Credit Commitment.

     

    2.07 Amendment
      to Amended and Restated Revolving Credit Notes.

     

    (a) As
      long
      as the Temporary Line Increase Period is in existence, the Amended and Restated
      Revolving Credit Note, dated October 30, 2007, executed by Companies, and
      payable to Wachovia, shall be deemed amended as follows:

     

    
      	 	
              (i)

            	
              Each
                reference to the dollar amount “$17,777,777.78” shall be deemed to be a
                reference to the dollar amount
“$19,110,777.78”.

            

    

     

    
      	 	
              (ii)

            	
              Each
                reference to the phrase “SEVENTEEN MILLION SEVEN HUNDRED SEVENTY-SEVEN
                THOUSAND SEVEN HUNDRED SEVENTY-SEVEN AND 78/100THS DOLLARS”, shall deemed
                to be a reference to the phrase “NINETEEN MILLION ONE HUNDRED TEN THOUSAND
                SEVEN HUNDRED SEVENTY-SEVEN AND 78/100THS DOLLARS”.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Upon
      the
      termination of the Temporary Line Increase Period, the Amended and Restated
      Revolving Credit Note shall be deemed to be amended so as to revert to the
      prior
      dollar amount and phrase.

     

    (b) As
      long
      as the Temporary Line Increase Period is in existence, the Amended and Restated
      Revolving Credit Note, dated October 30, 2007, executed by Companies and
      payable to the order of CIT, shall be deemed amended as follows:

     

    
      	 	
              (i)

            	
              Each
                reference to the dollar amount “$26,666,666.66” shall be deemed to be a
                reference to the dollar amount “$27,999,666.66”.

            

    

     

    
      	 	
              (ii)

            	
              Each
                reference to the phrase “TWENTY-SIX MILLION SIX HUNDRED SIXTY-SIX THOUSAND
                SIX HUNDRED SIXTY-SIX AND 66/100THS DOLLARS” shall deemed to be a
                reference to the phrase “TWENTY-SEVEN MILLION NINE HUNDRED NINETY-NINE
                THOUSAND SIX HUNDRED SIXTY-SIX AND 66/100THS DOLLARS”.

            

    

     

    Upon
      the
      termination of the Temporary Line Increase Period, the Amended and Restated
      Revolving Credit Note shall be deemed to be amended so as to revert to the
      prior
      dollar amount and phrase.

     

    2.08 Fees.
      In
      consideration for the agreements set forth herein, Companies shall pay to Agent
      an amendment fee of $70,000 ($25,000 of such fee to be respectively allocated
      to
      each of CIT and Wachovia, and $10,000 of such fee to be respectively allocated
      to each of PNC and SunTrust), which fee (i) shall be deemed fully earned on
      the date of execution of this Agreement, (ii) shall be non-refundable, and
      (iii) shall be due and payable in full on the date of execution of this
      Agreement.

     

    ARTICLE
      III

    No
      Waiver

     

    3.01 No
      Waivers.
      Except
      as otherwise expressly set forth in other sections of this Agreement, nothing
      contained herein shall be construed as a waiver by Agent or any Lender of any
      covenant or provision of the Financing Agreement, or any other Loan Document
      or
      any other contract or instrument between any Company and/or Parent and Agent
      and/or any Lender, and neither Agent’s nor any Lender’s failure at any time or
      times hereafter to require strict performance by any Company and/or Parent
      of
      any provision thereof shall waive, affect or diminish any right of Agent or
      any
      Lender thereafter to demand strict compliance therewith. Each of Agent and
      each
      Lender hereby reserves all rights granted under the Financing Agreement, and
      each other Loan Document and any other contract or instrument between any
      Company and/or Parent and Agent and/or any Lender.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      IV

    Conditions
      Precedent

     

    4.01 Conditions
      to Effectiveness.
      The
      effectiveness of this Agreement is subject to the satisfaction of the following
      conditions precedent, unless specifically waived in writing by
      Agent:

     

    (a) Agent
      shall have received all of the following, each in form and substance
      satisfactory to Agent (each of which shall be deemed to be a “Loan
      Document”
for
      purposes of the Financing Agreement):

     

    (i) This
      Agreement, duly executed by Companies, Parent and Lenders; and

     

    (ii) Such
      additional documents, instruments and information as Agent may
      request.

     

    (b) The
      representations and warranties contained herein and in the Financing Agreement,
      and the other Loan Documents, as each is amended hereby, shall be true and
      correct as of the date hereof, as if made on the date hereof.

     

    (c) No
      Default or Event of Default shall have occurred and be continuing, unless such
      Event of Default has been otherwise specifically waived in writing by Agent
      and
      Lenders.

     

    (d) All
      corporate proceedings taken in connection with the transactions contemplated
      by
      this Agreement and all documents, instruments and other legal matters incident
      thereto shall be satisfactory to Agent and its legal counsel.

     

    (e) Agent
      shall have received payment, in immediately available funds, of the fee
      described in Section 2.08
      hereof.

     

    ARTICLE
      V

    Ratifications,
      Representations and Warranties

     

    5.01 Ratifications.
      The
      terms and provisions set forth in this Agreement shall modify and supersede
      all
      inconsistent terms and provisions set forth in the Financing Agreement and
      the
      other Loan Documents, and, except as expressly modified and superseded by this
      Agreement, the terms and provisions of the Financing Agreement and the other
      Loan Documents are ratified and confirmed and shall continue in full force
      and
      effect. Each of the parties hereto agrees that the Financing Agreement and
      the
      other Loan Documents, as amended hereby, shall continue to be legal, valid,
      binding and enforceable in accordance with their respective terms.

     

    5.02 Representations
      and Warranties.
      Each of
      each Company and Parent hereby represents and warrants to Agent and each Lender
      that (a) the execution, delivery and performance of this Agreement and any
      and
      all other Loan Documents executed and/or delivered in connection herewith have
      been authorized by all requisite corporate action on the part of each of each
      Company and Parent and will not violate the Articles of Incorporation or Bylaws
      of any Company or Parent; (b) the representations and warranties contained
      in
      the Financing Agreement, as amended hereby, and any other Loan Document are
      true
      and correct on and as of the date hereof and on and as of the date of execution
      hereof as though made on and as of each such date; and (c) no Default or Event
      of Default under the Financing Agreement, as amended hereby, has occurred and
      is
      continuing, unless such Default or Event of Default has been specifically waived
      in writing by Agent and each Lender. Each of each Company and Parent hereby
      represents and warrants to Agent and each Lender that it is in full compliance
      with all covenants and agreements contained in the Financing Agreement, and
      the
      other Loan Documents, as amended hereby.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      VI

    Miscellaneous
      Provisions

     

    6.01 Survival
      of Representations and Warranties.
      All
      representations and warranties made in the Financing Agreement or any other
      Loan
      Document, including, without limitation, any document furnished in connection
      with this Agreement, shall survive the execution and delivery of this Agreement
      and the other Loan Documents, and no investigation by Agent or any Lender or
      any
      closing shall affect the representations and warranties or the right of Agent
      or
      any Lender to rely upon them.

     

    6.02 Reference
      to Financing Agreement.
      Each of
      the Financing Agreement and the other Loan Documents and any and all other
      agreements, documents or instruments now or hereafter executed and delivered
      pursuant to the terms hereof or pursuant to the terms of the Financing
      Agreement, as amended hereby, is hereby amended so that any reference in the
      Financing Agreement and such other Loan Documents to the Financing Agreement
      shall mean a reference to the Financing Agreement as amended
      hereby.

     

    6.03 Expenses
      of Agent.
      Each of
      each Company and Parent agrees to pay on demand all costs and expenses incurred
      by Agent in connection with the preparation, negotiation and execution of this
      Agreement and the other Loan Documents executed pursuant hereto, and any and
      all
      amendments, modifications, and supplements thereto, including, without
      limitation, the costs and fees of Agent’s legal counsel, and all costs and
      expenses incurred by Agent in connection with the enforcement or preservation
      of
      any rights under the Financing Agreement, as amended hereby, or any other Loan
      Document, including, without limitation, the costs and fees of Agent’s legal
      counsel.

     

    6.04 Severability.
      Any
      provision of this Agreement held by a court of competent jurisdiction to be
      invalid or unenforceable shall not impair or invalidate the remainder of this
      Amendment and the effect thereof shall be confined to the provision so held
      to
      be invalid or unenforceable.

     

    6.05 Successors
      and Assigns.
      This
      Agreement is binding upon and shall inure to the benefit of the parties hereto
      and their respective successors and assigns, except neither any Company nor
      Parent may assign or transfer any of its rights or obligations hereunder without
      the prior written consent of Agent and each Lender.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.06 Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which when so
      executed shall be deemed to be an original, but all of which when taken together
      shall constitute one and the same instrument.

     

    6.07 Effect
      of Waiver.
      No
      consent or waiver, express or implied, by Agent or any Lender to or for any
      breach of or deviation from any covenant or condition by any Company or Parent
      shall be deemed a consent to or waiver of any other breach of the same or any
      other covenant, condition or duty.

     

    6.08 Headings.
      The
      headings, captions, and arrangements used in this Agreement are for convenience
      only and shall not affect the interpretation of this Agreement

     

    6.09 Applicable
      Law.
      THIS AGREEMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED PURSUANT HERETO SHALL
      BE
      DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND SHALL BE GOVERNED BY
      AND
      CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
      TEXAS.

     

    6.10 Final
      Agreement.
      THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
      BETWEEN THE PARTIES, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
      CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE
      NO
      UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.11 Release.
      EACH OF EACH COMPANY AND PARENT HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE,
      COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE
      WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS
      LIABILITY TO REPAY THE “OBLIGATIONS” OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF
      ANY KIND OR NATURE FROM AGENT OR ANY LENDER. EACH OF EACH COMPANY AND PARENT
      HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES EACH OF AGENT
      AND EACH LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS,
      FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS,
      EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR
      UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL,
      AT
      LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS
      AGREEMENT IS EXECUTED, WHICH ANY COMPANY OR PARENT MAY NOW OR HEREAFTER HAVE
      AGAINST AGENT OR ANY LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS
      AND
      ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF
      CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING
      FROM
      ANY “LOANS”, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING,
      TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST
      LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE
      FINANCING AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION
      OF THIS AGREEMENT.

     

    [REMAINDER
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

    

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Executed
      on this 18th
      day of
      April, 2008, to be effective as of the respective date indicated
      above.

     

    
      	 	 	 
	 	 	
              COMPANIES:

               

               

              UNITED
                FUEL & ENERGY CORPORATION, 

              a
                Texas corporation

               

              By:
                /s/ Charles McArthur

              Name:
                Charles McArthur

              Title:
                President and Chief Executive Officer

               

               

              THREE
                D OIL CO. OF KILGORE, INC.,

              a
                Texas corporation

               

              By:
                /s/ Charles McArthur

              Name:
                Charles McArthur

              Title:
                President and Chief Executive Officer

               

               

              CARDLOCK
                FUELS SYSTEM, INC.,

              a
                California corporation

               

              By:
                /s/ Charles McArthur

              Name:
                Charles McArthur

              Title:
                President and Chief Executive Officer

               

               

              PARENT:

               

               

              UNITED
                FUEL & ENERGY CORPORATION,

              a
                Nevada corporation

               

              By:
                /s/ Charles McArthur

              Name:
                Charles McArthur

              Title:
                President and Chief Executive
                Officer

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              
                AGENT:

                 

                THE
                  CIT GROUP/BUSINESS CREDIT, INC.,

                as
                  Agent

                 

                By:
                  /s/ Alan R. Schnacke

                Name:
                  Alan R. Schnacke

                Title:
                  Vice President

                 

                 

                LENDERS:

                 

                THE
                  CIT GROUP/BUSINESS CREDIT, INC.,

                as
                  a Lender

                 

                By:
                  /s/ Alan R. Schnacke

                Name:
                  Alan R. Schnacke

                Title:
                  Vice President

              

            

    

     

    
      	 	 	 	 	 
	 	 	
              Amount
                of Commitment:

            	 	 
	 	 	(i) During
              Temporary Line:	 	$30,999,666.66
	 	 	     Increase
              Period	 	 
	 	 	
              (ii) At
                All Other Times:

            	 	$29,666,666.66
	 	 	 	 	 
	 	 	
              Amount
                of Revolving Line of
                Credit Commitment:

            	 	 
	 	 	
              (i) During
                Temporary Line:

            	 	$27,999,666.66
	 	 	
                  
                Increase Period

            	 	 
	 	 	 	 	 
	 	 	
              (ii) At
                All Other Times:

            	 	$26,666,666.66

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              SUNTRUST
                BANK,

              as
                a Lender

               

              By:
                /s/ Brian R. O’Fallon

              Name:
                Brian R. O’Fallon

              Title:
                Director

            
	 	 	 	 

    

     

    
      	 	 	Amount of Commitment:	 	$19,777,777.78
	 	 	 	 	 
	 	 	
              Amount
                of Revolving Line of
                Credit Commitment:

            	 	$17,777,777.78
	 	 	 	 	 

    

     

    
      	 	 	
              WACHOVIA
                BANK, N.A.,

              as
                a Lender

              
By:
                /s/ Thomas P. Floyd

              Name:
                Thomas P. Floyd

              Title:
                Vice President

            
	 	 	 	 

    

     

    
      	 	 	Amount of Commitment:	 	 
	 	 	(i) During
              Temporary Line:	 	$21,110,777.78
	 	 	     Increase
              Period	 	 
	 	 	 	 	 
	 	 	(ii) At
              All Other Times:	 	$19,777,777.78
	 	 	 	 	 
	 	 	
              
                Amount
                  of Revolving Line of
                  Credit Commitment:

              

            	 	 
	 	 	
              (i) During
                Temporary Line:

            	 	$19,110,777.78
	 	 	
                  
                Increase Period

            	 	 
	 	 	 	 	 
	 	 	
              (ii) At
                All Other Times:

            	 	$17,777,777.78

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	 	 	
              PNC
                BANK NATIONAL ASSOCIATION,

              as
                a Lender

               

              By:
                /s/ Ron Eckhoff

              Name:
                Ron Eckhoff

              Title:
                Vice President

            

    

     

    
      	 	 	
              
              

              Amount
                of Commitment:

            	 	$19,777,777.78
	 	 	
              Amount
                of Revolving Line of
                Credit Commitment:

            	 	$17,777,777.78Exhibit
      10.43

    

    SPECIALIZED
      HEALTH PRODUCTS INTERNATIONAL, INC.

    

    RESTRICTED
      STOCK AGREEMENT

    

    UNDER
      THE 2004 STOCK INCENTIVE PLAN

    

    THIS
      AGREEMENT (the “Agreement”) is made as of ____________, between Specialized
      Health Products International, Inc., a Delaware corporation (the “Company”), and
      __________ (“Holder”).

    

    THE
      PARTIES AGREE AS FOLLOWS:

    

    1.
       Award
      of Stock.
      The
      Company hereby agrees to issue to Holder, and Holder hereby agrees to receive
      from the Company, __________ (___________) shares of the Company’s common stock
      (the “Shares”).

    

    2.
       Shares
      Subject to the Plan.
      This
      Agreement, and the Shares issued to Holder hereunder, will be subject to the
      terms and conditions of the Company’s 2004 Stock Incentive Plan (the “Plan”), a
      copy of which is attached hereto and incorporated by reference. Where the
      provisions of this Agreement and of the Plan are inconsistent on any matter,
      this Agreement will govern; and where this Agreement is silent on a matter
      provided for in the Plan, the Plan will govern. Capitalized terms not
      specifically defined in this Agreement will have the meaning ascribed to them
      in
      the Plan. As used herein, the term “Shares” refers to and includes the shares
      issued to Holder pursuant to this Agreement, and to all securities received
      in
      addition thereto or in replacement thereof, pursuant to or in consequence of
      any
      stock dividend, stock split, recapitalization, merger, reorganization, exchange
      of shares or other similar event.

    

    3.
       Restrictions
      as to the Shares.
      Holder
      understands that the Plan includes important terms and conditions that apply
      to
      this Agreement and to the Shares, including (without limitation) important
      restrictions on the ability of Holder to transfer the Shares. Holder
      acknowledges that he or she has read the Plan, agrees to be bound by its terms,
      and makes each of the representations required to be made by Holder under
      it.

    

    3.1.
       Escrow.
      Pursuant
      to Section 9(b) of the Plan, Holder will deliver the certificate(s) representing
      the unvested Shares with a stock power executed by Holder and by Holder’s
      spouse, if required, in blank, to the Secretary of the Company, to hold the
      same
      in escrow to facilitate the restrictions as to the Shares set forth in the
      Plan.

    

    3.2
       Vesting.
      All of
      the Shares are unvested and will become vested for purposes of the Plan
over
      three years, with 33.3%
      of
      the Shares vesting in three equal installments on each subsequent annual
      anniversary of the date on which the Shares were granted. Notwithstanding the
      foregoing, 50% of the Shares will immediately vest in full upon a Change in
      Control of the Company.  In the case of Change in Control, the remaining
      50% of the Shares will vest according to the original vesting schedule, so
      long
      as the Holder continues to be employed by the Company or upon termination or
      constructive termination (whereby the Holder is not offered an equivalent
      position or is asked to move more than 75 miles for the equivalent position)
      within twelve months of the Change in Control event.

    

    3.3
       Voting.
      Except
      as otherwise expressly provided in this Agreement, Holder will have all of
      the
      rights and privileges of a stockholder of the Company with respect to vested
      and
      unvested Shares, including the right to vote the vested and unvested Shares,
      while the same are held in escrow. 

    

    3.4 Effect
      of Prohibited Transfer.
      Any
      prohibited transfer of Shares is void and of no effect. Should such a transfer
      purport to occur, the Company may refuse to carry out the transfer on its books,
      attempt to set aside the transfer, enforce any undertaking or right under this
      Agreement or the Plan, and/or exercise any other legal or equitable remedy.
      

    

    3.5 Required
      Undertaking.
      Any
      transfer that would otherwise be permitted under the terms of this Plan is
      prohibited unless the transferee executes such documents as the Company may
      reasonably require to ensure that the Company’s rights under a Restricted Stock
      Agreement and the Plan are adequately protected with respect to the Shares
      so
      transferred. Such documents may include, without limitation, an agreement by
      the
      transferee to be bound by all of the terms of the Plan and this Agreement,
      as if
      the transferee were the original holder of such Shares. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    4.
       Employment
      Status.
      Nothing
      contained herein or in the Plan will confer upon Holder any right with respect
      to the continuation of Holder’s status as an employee, consultant, independent
      contractor or director of the Company (or its subsidiaries) or interfere with
      the right of the Company at any time to terminate Holder’s employment by or
      service to the Company or to alter Holder’s rate of compensation in effect as of
      the date of this Agreement.

    

    5.
       Specific
      Performance.
      It is
      the intention of the parties that under those circumstances set forth herein
      or
      under the Plan in which the Company timely chooses to exercise its rights to
      repurchase the Shares as provided for herein or therein, the Company will be
      entitled to receive such Shares in order to have the same available for future
      issuance without dilution of the holdings of other stockholders of the Company.
      Holder and the Company hereby acknowledge and agree that money damages will
      be
      inadequate to compensate the Company and its stockholders if such a repurchase
      is not completed as contemplated hereunder and that the Company shall, in such
      case, be entitled to a decree of specific performance of the terms hereof or
      to
      an injunction restraining Holder (or Holder’s personal representative) from
      violating this Agreement, in addition to any other remedies that may be
      available to the Company at law or in equity.

    

    6.
       Miscellaneous.
      This
      Agreement (together with the Plan and any other agreement or other document
      evidencing and Award) sets forth the complete agreement of the parties
      concerning the subject matter hereof, superseding all prior agreements,
      negotiations and understandings. This Agreement will be governed by the
      substantive law of the State of Delaware and may be executed in
      counterparts.

     

    The
      parties hereby have entered into this Agreement as of the date set forth
      above.

     

    
      	
              SPECIALIZED
                HEALTH PRODUCTS INTERNATIONAL, INC.

            	 	 	
              HOLDER

            
	 	 	 	 
	By:	 	 	
            
	
              
                

              

              Jeffrey
                M. Soinski

              Its:
                President/CEO

            	 	 	
              

            

    

     

    
      
        
        

      

      
        2

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