Document:

EXHIBIT 10.2

EXECUTION VERSION

 

SECOND AMENDMENT 
 TO RESTRUCTURING SUPPORT AGREEMENT

 

Second Amendment to Restructuring Support Agreement (this “Amendment”), dated as of March 28, 2016, to that certain Restructuring Support Agreement made and entered into as of January 10, 2016, as amended by the First Amendment to Restructuring Support Agreement, dated as of February 25, 2016 (the “Restructuring Support Agreement”), by and among (i) the parties signatory thereto which are lenders under the First Lien Credit Agreement (each such party a “Consenting Lender”, and collectively, the “Consenting Lenders”), (ii) Arch Coal, Inc., a Delaware corporation (“Arch Coal”), and (iii) each of the subsidiaries of Arch Coal signatory thereto (collectively with Arch Coal, the “Company”).  Capitalized terms used in this Amendment and not otherwise defined shall have the meanings set forth in the Restructuring Support Agreement.

 

RECITALS

 

WHEREAS, Arch Coal, the other guarantors party thereto, the lenders party thereto (including the Consenting Lenders) and Wilmington Trust, National Association, as successor term loan administrative agent and successor collateral agent under the First Lien Credit Agreement (the “First Lien Agent”) have entered into the First Lien Credit Agreement;

 

WHEREAS, pursuant to the Restructuring Support Agreement, the Parties thereto agreed to support a Restructuring that is to be implemented through the Plan;

 

WHEREAS, the Company has requested a limited waiver of certain Consenting Lender Termination Events under Section 5.02(g) of the Restructuring Support Agreement;

 

WHEREAS, the Company has requested an amendment to the Restructuring Support Agreement; and

 

WHEREAS, the parties hereto have agreed to (i) provide a limited waiver of such Consenting Lender Termination Events and (ii) amend the Restructuring Support Agreement, in each case, on the terms and conditions set forth in this Amendment.

 

AGREEMENT

 

NOW THEREFORE, for and in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.   Limited Waiver of Consenting Lender Termination Events. Effective as of the Amendment Effective Date (as defined below), the Consenting Lenders party hereto hereby waive the following:

 

(a)         Any Consenting Lender Termination Event set forth in Section 5.02(g)(iii) of the Restructuring Support Agreement solely to the extent arising out of the failure of the Company to obtain, prior to ninety (90) days after the Petition Date, entry of the RSA Assumption Order by the Bankruptcy Court; provided that it shall be a Consenting Lender

 

 

Termination Event if the Company fails to obtain, prior to May 13, 2016 or such later date as may be agreed to in writing by the Majority Consenting Lenders, entry of the RSA Assumption Order, in form and substance reasonably satisfactory to the Majority Consenting Lenders and otherwise in accordance with the Restructuring Support Agreement;

 

(b)         Any Consenting Lender Termination Event set forth in Section 5.02(g)(v) of the Restructuring Support Agreement solely to the extent arising out of the failure of the Company to deliver to the First Lien Lender Group, no later than sixty (60) days after the Petition Date, an updated business plan; provided that it shall be a Consenting Lender Termination Event if the Company fails to comply with or achieve the following deadlines: (i) no later than 5:00 P.M. Eastern Time on April 1, 2016 or such later date as may be agreed to in writing by the Majority Consenting Lenders, delivery to the First Lien Lender Group of an updated business plan, (ii) on or before April 8, 2016 or such later date as may be agreed to in writing by the Majority Consenting Lenders, obtaining confirmation from the First Lien Lender Group that the updated business plan is reasonably acceptable to the Majority Consenting Lenders, and (iii) no later than April 15, 2016 or such later date as may be agreed to in writing by the Majority Consenting Lenders, making publicly available the materials attached hereto as Exhibit A, which the Company believes, in its reasonable judgment, cleanses the Consenting Lenders of any material non-public information received in connection with Section 1(b)(i) hereof, either pursuant to the filing of the Disclosure Statement or a posting on the Securities and Exchange Commission’s website; provided that, after delivery of an updated business plan, the Company may replace the materials set forth in Exhibit A with corresponding materials from such updated business plan; and

 

(c)          Any Consenting Lender Termination Event set forth in Section 5.02(g)(vi) of the Restructuring Support Agreement solely to the extent arising out of the failure of the Company to file, no later than ninety (90) days after the Petition Date, the Plan and Disclosure Statement; provided that it shall be a Consenting Lender Termination Event if the Company fails to comply with or achieve the following deadlines: (i) no later than April 26, 2016 or such later date as may be agreed to in writing by the Majority Consenting Lenders, filing the Plan and Disclosure Statement, which Plan and Disclosure Statement shall provide for the consummation of the Restructuring provided for in the Term Sheet and each of which otherwise shall be in form and substance reasonably satisfactory to the Majority Consenting Lenders, and (ii) no later than June 10, 2016 or such later date as may be agreed to in writing by the Majority Consenting Lenders, obtaining Bankruptcy Court approval of the Disclosure Statement.

 

SECTION 2.   Amendment to Restructuring Support Agreement. Effective as of the Amendment Effective Date, the Company and the Consenting Lenders party hereto hereby amend footnote 5 appearing in Exhibit A to the Restructuring Support Agreement by deleting the reference to “the date that is 90 days after the Petition Date” appearing therein and replacing such reference with “April 22, 2016 or such other date as may be agreed to in writing by the Company and the Majority Consenting Lenders”.

 

SECTION 3.   Compliance with Restructuring Support Agreement.  As of the Amendment Effective Date, each of the parties hereto represents and warrants, severally and not jointly, to each other party that (i) it is in compliance with all of the terms and provisions set

 

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forth in the Restructuring Support Agreement (as amended by this Amendment) and (ii) no material breach has occurred and is continuing under the Restructuring Support Agreement.

 

SECTION 4.   Effect of Amendment on the Restructuring Support Agreement.  Except as specifically amended or waived hereby, the terms and provisions of the Restructuring Support Agreement are in all other respects ratified and confirmed and remain in full force and effect without modification or limitation.  No reference to this Amendment need be made in any notice, writing or other communication relating to the Restructuring Support Agreement, and any such reference to the Restructuring Support Agreement shall be deemed a reference thereto as amended by this Amendment.  This Amendment shall be limited precisely as written and, except as expressly provided herein, shall not be deemed or construed (i) to be a consent granted pursuant to, or a waiver (except for the specific waivers set forth above), modification or forbearance of, any term or condition of the Restructuring Support Agreement, any of the instruments or agreements referred to therein or a waiver of any breach under the Restructuring Support Agreement, whether or not known to the First Lien Agent or any of the Consenting Lenders, or (ii) to prejudice any right or remedy which the First Lien Agent, any Consenting Lender or the Company may now have or have in the future under or in connection with the Restructuring Support Agreement, or any of the instruments or agreements referred to therein, as applicable.

 

SECTION 5.   Effectiveness of This Amendment.  This Amendment shall become effective and binding on each Party on the date (such date, the “Amendment Effective Date”) counsel to the parties hereto have received signature pages hereto signed by the Company and the Consenting Lenders constituting Majority Consenting Lenders.

 

SECTION 6.   Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

SECTION 7.   Counterparts; Electronic Execution.  This Amendment may be executed and delivered in any number of counterparts, each of which, when executed and delivered, shall be deemed an original, and all of which together shall constitute the same agreement.  Delivery of an executed copy of this Amendment shall be deemed to be a certification by each person executing this Amendment on behalf of a party hereto that such person and party hereto has been duly authorized and empowered to execute and deliver this Amendment and each other party hereto may rely on such certification.  Delivery of any executed signature page of this Amendment by telecopier, facsimile or electronic mail shall be as effective as delivery of a manually executed signature page of this Amendment.

 

SECTION 8.   Reference to Restructuring Support Agreement.  All references to the “Restructuring Support Agreement”, “hereunder”, “hereof” or words of like import in the Restructuring Support Agreement shall mean and be a reference to the Restructuring Support

 

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Agreement as modified hereby and as may in the future be amended, restated, supplemented or modified from time to time.

 

SECTION 9.   Breach of Amendment.  This Amendment shall be part of the Restructuring Support Agreement and a breach of any representation, warranty or covenant herein shall constitute a breach under the Restructuring Support Agreement, without the giving of notice or the passage of time.

 

[Remainder of page intentionally left blank
 Signatures on next page].

 

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IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have executed and delivered this Second Amendment to Restructuring Support Agreement as of the date hereof.

 

	
 
    	
ARCH COAL INC., on behalf of   itself and each of the Guarantors
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert G. Jones
    
	
 
    	
Name:
    	
Robert G. Jones
    
	
 
    	
Title:
    	
Senior Vice President — Law, General
    
	
 
    	
 
    	
Counsel and Secretary
    

 

[Signature Page to Second Amendment to Restructuring Support Agreement]Exhibit 10.1

 

Rickard

 

AMENDMENT TO
 EMPLOYMENT AGREEMENT

 

THIS AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered into this 3rd day of May, 2016 by and between James D. Rickard (“Executive”), Your Community Bankshares, Inc., an Indiana corporation (“Seller”), Your Community Bank (“Seller Sub”), Wesbanco, Inc., a West Virginia corporation (“Wesbanco”) and Wesbanco Bank, Inc. (“Wesbanco Bank”).

 

WHEREAS, the Executive is a party to an Employment Agreement initially dated July 26, 2000 and as amended November 2, 2006, May 22, 2009, August 24, 2009 and April 16, 2014 with Seller (as amended, the “Employment Agreement”);

 

WHEREAS, Seller, Seller Sub, Wesbanco and Wesbanco Bank are parties to that certain Agreement and Plan of Merger by which Seller will be merged with and into Wesbanco and Seller Sub will be merged with and into Wesbanco Bank (the “Mergers”);

 

WHEREAS, if the Mergers occur, the Executive will have a termination of employment from his pre-Merger employer and Wesbanco and Wesbanco Bank seek to assure themselves of the services of the Executive under similar but not identical terms as set forth in the Employment Agreement from and after the date on which the Mergers are consummated (the “Merger Date”);

 

WHEREAS, the Executive, Seller, Seller Sub, Wesbanco and Wesbanco Bank hereby agree to amend the Employment Agreement to apply to the employment relationship of Executive with Wesbanco and Wesbanco Bank from and after the Merger Date and subject to the consummation of the above-referenced Mergers.

 

NOW, THEREFORE, in consideration of the mutual promises and other good and valuable consideration, and effective on the Merger Date, the parties agree as follows:

 

1.              Addition of Parties.  Effective on the Merger Date, Wesbanco and Wesbanco Bank shall be added as parties to the Employment Agreement and shall be included in the defined terms “Corporation” and “Employer”.

 

2.              Payments to Executive and Deferred Compensation Amendment on Merger Date.  On the Merger Date:

 

a.              Wesbanco will pay Executive $1,395,000 in a single cash payment;

 

b.              Except for Restricted Stock Units vesting on December 15, 2016 (the “December RSU”), all Restricted Stock Units shall be vested, converted to shares and the consideration to be paid in the Merger and delivered to the Executive in connection with the Mergers and the December RSU shall vest in accordance with its terms without regard to the consummation of the Mergers; and

 

c.               Executive’s Deferred Compensation Agreement shall be amended to provide that no contributions will be made by the Employer (or any of the entities defined as Employer in this Amendment) from and after the Merger Date.

 

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3.              Change in Title and Term.  Effective on the Merger Date, Section 2(a) of the Employment Agreement is amended to read in its entirety:

 

“(a)  The Employer hereby employs the Executive as Market President of the Business Line reporting to the individuals appointed by the Employer and its Board of Directors and Executive hereby accepts said employment to begin on the Merger Date and agrees to render such services to the Employer on the terms and conditions set forth in this Agreement.  The term of employment under this Agreement (the “Term”) shall be for two (2) years commencing on the Merger Date and conditioned upon the consummation of the Merger.  After the second anniversary of the Merger Date, this Agreement shall expire and the Executive shall become an employee at will of the Employer.

 

4.              Conforming Title and Reporting Change in Section 2(b).   Effective on the Merger Date, Section 2(b) of the Employment Agreement shall be amended to read:

 

“(b) During the Term of this Agreement, the Executive shall perform such executive services for the Employer as may be consistent with his title set forth in Section 2(a) above and from time to time assigned to him by the individuals appointed by the Employer and its Board of Directors to whom the Executive shall report, provided, however, such executive services shall not be changed from the Executive’s duties on the Merger Date without the Executive’s express written consent, which consent shall not be unreasonably withheld by the Executive.”

 

5.              Change in Base Salary.  Effective on the Merger Date, the annual Base Salary set forth in Section 3(a) shall be amended to be $230,000 and, notwithstanding any other provision of the Employment Agreement, Executive’s bonus opportunities and equity grants shall be determined under Wesbanco’s processes and procedures.

 

6.              Change in Severance Arrangement.  Effective on the Merger Date, Section 5(c)(A) of the Employment Agreement is amended to read as follows:

 

“(c) (A) pay to the Executive, in equal monthly installments beginning with the first business day of the month following the Date of Termination, a cash severance amount equal in aggregate to the Base Salary which the Executive would have earned over the shorter period of one (1) year or the then remaining Term of this Agreement (absent the Executive’s termination of employment).  In addition, in the event the Executive’s employment with the Employer terminates prior to the third anniversary of the Merger Date, the Employer will cause the Executive (or his spouse in the case of death of the Executive) to receive health and welfare benefits until the third anniversary of the Merger Date.”

 

7.              Elimination of Change in Control Provisions.  Effective on the Merger Date, Section 6 of the Employment Agreement is deleted in its entirety and all references to Section 6 in the Employment Agreement shall be of no force and effect.  After the Merger Date, no Change in Control payments are provided for under this Amended Agreement.

 

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8.              Change in Restrictive Covenants.  Effective on the Merger Date, Section 8 is amended as follows:

 

i.                  Introductory language is added before existing Subsection (a) to read as follows:

 

“The restrictive covenants contained in this Section 8, particularly, the covenant not to compete, not to raid customers or opportunities and not to solicit employees of the Employer set forth in subsections 8(b)(i), (ii) and (iii), respectively, are renewed, as amended hereby, including the addition of a non-disparagement clause at Subsection 8(b)(iv) (the “Restrictive Covenants”), effective as of the date of the Merger.  To the extent any provision of the Employment Agreement in effect prior to the Merger Date provides or could be read to provide that the Employer waived the Restrictive Covenants on a Change in Control or that the Restrictive Covenants as in effect prior to the Merger Date would not be enforceable after the Merger Date because the Merger effects a Change in Control, the parties agree, by the amendment to the Employment Agreement as of the Merger Date, to reinstate the Restrictive Covenants as amended, on the Merger Date.  The Restrictive Covenants shall be and remain in effect for the period during which the Executive is an employee of the Employer (and all direct and indirect subsidiaries) and for a period of one year after the Executive’s employment is terminated for any reason.   The Executive acknowledges that Executive has received sufficient consideration for the reinstatement of the Restrictive Covenants, including, but not limited to, a portion of the consideration set forth in Section 1 of this Amendment to the Employment Agreement as of the Merger Date and continued employment of the Executive and concomitant compensation opportunities.  The Executive further acknowledges that the Restrictive Covenants are reasonable in scope (including, the geographic and temporal limitations) and necessary to protect the business and goodwill of the Employer and that the Employer would be irreparably harmed if the Executive violates any one or more of the Restrictive Covenants.  Accordingly, in addition to any other remedy the Employer may have at law or in equity:

 

(i)            The Employer shall be entitled to an injunction, restraining order or other writ or order restraining the Executive from violating the Restrictive Covenants; and

(ii)           As liquidated damages, a sum equal to $100,000 as a claw back of a portion of the consideration provided to the Executive in consideration for the Restrictive Covenants, an amount the Executive recognizes as an equitable and fair amount in view of the Executive’s violation of one or more of the Restrictive Covenants.”

 

(ii)                                  Subsection 8(b) of the Employment Agreement is amended to read as follows:

 

“8(b)  The Executive agrees that, following the termination of his employment under this Agreement for any reason, he will not, for a period of time equal to the longer of one (1) year or what would have been the end of the Term absent his termination of employment, directly or indirectly and in any way, whether as a principal or as director, officer, employee consultant, agent, partner or shareholder of another entity (other than by the ownership of a passive investment interest of not more than 5% in a company with publically traded equity securities) (i) own, manage, operate, control, be employed by, participate in, or be connected in any manner with the ownership, management, operation or control of any

 

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business located within 75 miles of any operation or banking branch of the Employer or any of its direct or indirect subsidiaries that competes with any business of the Employer or its direct or indirect subsidiaries, (ii) interfere with, solicit on behalf of another or attempt to entice away from the Corporation any project, loan, arrangement, agreement, financing or customer of the Employer or any of its direct or indirect subsidiaries or any contract, agreement or arrangement that the Employer or any of its direct or indirect subsidiaries is actively negotiating with any other party, or any prospective business opportunity that the Employer has identified; (iii) for himself or another, hire, attempt to hire, or assist in or facilitate in any way the hiring of any employee of the Employer or any of its direct or indirect subsidiaries, or (iv) disparage the reputation or character, image or products or services of the Employer or its direct or indirect subsidiaries, its officers, directors, employees or suppliers, agent and servants.”

 

9.              Governing Law and Jurisdiction.  Effective on the Merger Date, Section 13 is amended to read:

 

“13.  Governing Law and Jurisdiction.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the United States where applicable and otherwise by the substantive laws of the State of West Virginia, without regard to its principles of conflicts of laws.   Any dispute arising out of this Employment Agreement shall be heard in a court of competent jurisdiction over cases and controversies arising in Wheeling, West Virginia.”

 

INTENDING TO BE legally bound, the parties hereto put their hands and seals on the date first written above:

 

 

	
Your Community   Bankshares, Inc.
    	
 
    	
James D. Rickard
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Paul Chrisco
    	
 
    	
/s/ James D. Rickard
    
	
By: Paul Chrisco
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Your Community Bank
    	
 
    	
Wesbanco, Inc.
    
	
 
    	
 
    	
 
    
	
/s/ Kevin J. Cecil
    	
 
    	
/s/ Todd F. Clossin
    
	
By: Kevin J. Cecil
    	
 
    	
By: Todd F. Clossin
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Wesbanco Bank, Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Todd F. Clossin
    	
 
    	
 
    
	
By: Todd F. Clossin
    	
 
    	
 
    

 

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