Document:

FIFTH AMENDMENT TO COAL SALES AGREEMENT

          THIS FIFTH AMENDMENT TO COAL SALES AGREEMENT ("Amendment") is made and entered into as of the first day of July, 2001 to amend that certain Coal Sales Agreement dated as of February 15, 1990, as amended by Amendments First, Second, Amendment and Clarification, and Fourth, among ELECTRIC FUELS CORPORATION, KENTUCKY MAY COAL COMPANY, INC. AND COGENTRIX OF RICHMOND, INC. ("Coal Sales Agreement"). 

WITNESSETH:

          WHEREAS, the parties to the Coal Sales Agreement have determined that certain terms and provisions of the Coal Sales Agreement should be amended; and 

          WHEREAS, the Coal Sales Agreement provides that it may be amended only by an instrument in writing signed by all parties. 

          NOW, THEREFORE, for good and valuable consideration including the mutual agreements contained herein, the parties to the Coal Sales Agreement do hereby agree as follows:

	
1.     Section 4.01 of the Coal Sales Agreement is hereby amended by deleting the second sentence thereof (set forth in the Fourth Amendment) and inserting in its place the following: 

	 	
"The "Base Price" per ton of coal supplied hereunder on and after July 1, 2001 shall be $[***] F.O.B. railroad cars at the Source Complex." 

	
2.     Section 4.02(a)(1) of the Coal Sales Agreement is hereby amended by deleting the third sentence thereof (set forth in the Fourth Amendment) and inserting in its place the following: 

	 	
"Notwithstanding the two preceding sentences, the BCP per ton of coal supplied on and after July 1,2001, shall be $[***] per net ton." 

	
3.     Section 4.02(a)(3) of the Coal Sales Agreement is hereby amended by deleting it in its entirety, and inserting in its place the following: 

	 	
"Base Solid Fuel Index ("BSFI") is the SFI for the first calendar quarter of 2001. BSFI is SFI(1,2001) and is equal to 155.68 cents per million BTU as of July 1,2001." 

	
          4.     Section 4.02(a)(4) of the Coal Sales Agreement is hereby amended by deleting it in its entirety, and inserting in its place the following: 

	 	
"Base Rail Price ("BRP") .per ton of coal supplied on or after July 1, 2001 shall be $[***] per net ton." 

[***] These portions of this exhibit have been omitted and filed separately with the Commission pursuant to a request for confidential treatment.

 

	
5.     Section 4.02(a)(6) of the Coal Sales Agreement is hereby amended by deleting it in its entirety, and inserting in its place the following: 

	 	
"Rail Adjustment Factor ("RAF") is the factor agreed upon by Virginia Power and CSX Transportation, Inc. as the methodology for escalating Railroad Transportation Master Contract ICC-CSXT-C-51997 between Virginia Power and CSX Transportation, Inc. ("Virginia Power Transportation Contract"). The RAF utilizes the GDPIPD, as hereinafter defined, as its primary component, and the methodology for computation of the RAF is contained in an amendment to the Virginia Power Transportation Contract. The Rail Adjustment Factor shall be abbreviated as RAF (q,y) where q is the calendar quarter and y is the year. If the net cost per ton (giving effect to rates, general contract provisions and other contract charges) to Virginia Power under Railroad Transportation Master Contract ICC-CSXT-C-51997, or any successor contract, changes in any respect, then the Rail Compensation Price under this Agreement shall be adjusted in the same manner and by the same percent effective as of the date of such change under such Master Contract, or such successor contract. 

Effective with this Fifth Amendment, all references to "RCAF-Adjusted" in the Coal Sales Agreement shall refer to RAF." 

	
6.     The Coal Sales Agreement is hereby amended by adding Section 4.02(a)(7) with the following text: 

	 	
"Adjusted Base Rail Price (" ABRP") is the result of adjusting the Base Rail Price commencing with the calculation of the Contract Price that will be effective during the fourth quarter of 2001 and each calendar quarter thereafter. The ABRP shall be abbreviated as ABRP (q,y) where q is the calendar quarter and y is the year." 

	
7.     The Coal Sales Agreement is hereby amended by adding Section 4.02(a)(8) with the following text: 

	 	
Gross Domestic Product Implicit Price Deflator (GDPIPD) indices are the Gross Domestic Product Implicit Price Deflator quarterly indices as last published by the U.S. Department of Commerce at least two (2) weeks prior to the beginning of the calendar quarter for which the Contract Price is being determined. The GDPIPD shall be expressed as GDPIPD (q,y) where q is the calendar quarter and y is the year. GDPIPD (q-2,y) and GDPIPD (q-3,y) represent the GDPIPD published for the second and third calendar quarters prior to the calendar quarter (q,y) for which the Contract Price is being determined.

Should Cogentrix of Richmond, Inc. and Virginia Electric & Power Company agree, pursuant to the terms of Section 10.3 of their Power Purchase and Operating Agreement dated as of January 24, 1989 as amended through and including Amendment No.2 dated as of July 1, 2001 (the "PPOA"), to replace the GDPIPD index specified in the PPOA (and also specified herein) with another index (the "Replacement Index"), the Replacement Index shall become effective for escalation of the Base Rail Price as adjusted hereunder as of the date of effectiveness of such modification under the PPOA.

Effective with this Fifth Amendment, the reference to "SFI" in paragraph 4.02(d) shall refer to both the SFI and the GDPIPD." 

	 
	
8.     Section 4.02(b) of the Coal Sales Agreement is hereby amended by deleting it in its entirety, and inserting in its place the following: 

	 	
"(b) At least two (2) weeks prior to the calendar quarter beginning October 1, 2001 and at least two (2) weeks prior to the beginning- of each subsequent calendar quarter thereafter, the Contract Price which will be effective during the next subsequent calendar quarter shall be calculated as follows: 

                    Contract Price (q,y) = BCP[ 1 + .75 (SFI(q-2,y) - BSFI)] 

                                                                                       BSFI 

                          + ABRP(q-l,y) [ 1 +.5 (GDPIPD(q-2,y) - GDPIPD(q-3,y))] 

                                                                            GDPIPD(q-3,y) 

                                            - [RCP(q-1,y) (RAF(q,y))] 

Thus if the Contract Price were being determined for the fourth calendar quarter of 2001, the variable SFI would be the SFI calculated for the second calendar quarter of 2001, the variable ABRP would be the BRP, or ABRP, as appropriate, calculated for the third calendar quarter of 2001, the variable GDPIPD indices would be the GDPIPD indices as published for the first and second calendar quarters of 2001, the variable RCP would be RCP calculated for third calendar quarter of 2001, and the variable RAF would be as calculated for the quarter for which the Contract Price is being determined. 

** The methodology for computing price escalations for the Virginia Power Transportation Contract is modified, then such modification shall become effective for escalation of the Rail Compensation Price hereunder as of the date of effectiveness of such modification under the Virginia Power Transportation Contract." 

 

	
9.     EXHIBIT III of the Coal Sales Agreement is hereby amended by deleting it in its entirety, and replacing it with the substitute "EXHIBIT III" appended to this Fifth Amendment 

	
10.     This Amendment is subject to and shall be effective only upon receipt of the approval of Buyer's lenders, which approval buyer shall immediately request and diligently pursue. If Buyer's lenders fail to approve this Amendment by October 31, 2001, either party may declare the Amendment null and void ab initio prior to receipt of said lender's consent 

	
11.     Upon Buyer receiving lenders' approval of this Amendment an adjustment payment for coal delivered to Buyer on and after July 1, 2001, to adjust for the change in Contract Price provided by this Agreement, shall be included with the next ordinary payment to Seller under the Coal Sales Agreement 

	
12.     Except as specifically provided in this Amendment, the terms and conditions set-forth in the Coal Sales Agreement shall remain in full force and effect 

          WITNESS the due execution hereof as of July 1, 2001. 

	
ELECTRIC FUELS CORPORATION

By:             /s/  Michael E. Wilson        

Title:   Vice President

	
KENTUCKY MAY COAL COMPANY, INC.

By:             /s/  Michael E. Wilson        

Title:   Vice President

	
COGENTRIX OF RICHMOND, INC.

By:             /s/  C. A. Halcomb        

Title:   Vice PresidentAFFILIATE PERFORMANCE AGREEMENT

     This AFFILIATE PERFORMANCE AGREEMENT (the "Performance Agreement") is made as of the 21st day of February , 2003, by and between Cogentrix Energy, Inc., a North Carolina corporation ("CEI") and Green Country Energy, LLC, a Delaware limited liability company ("GCE").  CEI and GCE are individually referred to herein as a "Party" and collectively as the "Parties."

RECITALS:

WHEREAS, GCE has entered into a Parts Sharing Agreement (the "PS Agreement") dated as of October 1, 2002 with Cogentrix Parts Company, Inc. ("Partsco");

WHEREAS, GCE has entered into a Long Term Service Agreement ("LTSA") dated as of October 1, 2002 with General Electric International, Inc. ("GE"), whereby GE will supply parts and perform maintenance on a combined cycle generating project near Jenks, Oklahoma owned by GCE;

WHEREAS, Partsco has entered into a Capital Parts Agreement (the "CP Agreement") with GE granting GE some rights to use parts from a pool of parts in the custody of Partsco for the benefit of GCE and other projects owned by other affiliates of GCE;

WHEREAS, pursuant to the PS Agreement, Partsco has certain obligations to GCE; and

WHEREAS, CEI as an affiliate of Partsco, is willing to enter into this Performance Agreement to satisfy a request of GCE.

NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the Parties hereto agree as follows:

1.     CEI unconditionally and irrevocably agrees that in the event of Partsco failing in any respect to perform or observe the terms and provisions of the PS Agreement, CEI shall immediately upon first demand in writing by GCE perform or take such steps as are necessary to achieve performance or observance of such terms and provisions to the extent of Partsco's liability under the PS Agreement.

2.     The liability of CEI hereunder shall not be reduced or discharged by any alteration in the relationship between Partsco and GCE which has been consented to by Partsco in writing (with or without the knowledge or consent of CEI), or by any forbearance or indulgence by GCE towards Partsco or CEI whether as to payment, time, performance, or otherwise.

3.     CEI agrees to make any payment due hereunder upon first written demand without any legal formality such as protest or notice of protest being necessary, and waives all privileges or rights which it may have as a co-obligor (under the PS Agreement as a result of entering into this Performance Agreement) to require GCE to claim payment or to exhaust remedies against Partsco or any other person.

4.     The obligations of CEI hereunder shall continue in full force and effect  until the earlier to occur of (a) all Partsco's obligations and liabilities under the PS Agreement have been fully discharged, or (b) the debt outstanding under financing with Bank of America as of the date of this Performance Agreement is fully repaid.

5.     This Performance Agreement and the undertakings herein contained shall be binding upon the successors and assigns of CEI and shall extend to and inure for the benefit of the successors or permitted assignees of GCE.  No person other than GCE is intended as a beneficiary of this Performance Agreement nor shall any such person have any rights hereunder.  CEI may not  assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of GCE, such consent to not be unreasonably withheld.

6.     Notwithstanding anything to the contrary above, in the event of any claim under this Performance Agreement, CEI shall be entitled to assert any defense, set-off or counterclaim that Partsco could assert had such claim been made directly against any person under the PS Agreement.

7.     This Performance Agreement shall be governed by and construed in accordance with the laws of the State of New York, provided that any provision of such law invalidating any provision of this Performance Agreement or modifying the intent of the Parties as expressed in the terms of this Performance Agreement shall not apply.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective authorized representatives as of the date first written above.

	
COGENTRIX ENERGY, INC.

By:      s/ Paul F. Tegen                

Name:  Paul F. Tegen

Title:  Vice President, Operations

	
GREEN COUNTRY ENERGY, LLC

By:         s/ C. A. Halcomb                   

Name:  C. A. Halcomb

Title:  Vice President, Operations

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