Document:

Exhibit 10.27

 

CUSIP Number 86770DAA6

 

$250,000,000
REVOLVING CREDIT FACILITY

 

$175,000,000
TERM LOAN FACILITY

 

SECOND AMENDED
AND RESTATED CREDIT AGREEMENT

 

by
and among

 

SUNRISE
COAL, LLC

 

and

 

THE GUARANTORS
PARTY HERETO

 

and

 

THE LENDERS
PARTY HERETO

 

and

 

PNC BANK,
NATIONAL ASSOCIATION, as Administrative Agent

 

and

 

THE HUNTINGTON
NATIONAL BANK and BRANCH BANKING AND TRUST COMPANY, as
Co-Syndication Agents

 

and

 

REGIONS
Bank and umb Bank, n.a., as Co-Documentation Agents

 

and

 

THE HUNTINGTON
NATIONAL BANK and BRANCH BANKING AND TRUST COMPANY, as Joint Lead Arrangers 

 

and

 

PNC CAPITAL
MARKETS LLC, as Joint Lead Arranger and Sole Bookrunner

 

Dated
as of August 29, 2014

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	1.	 	CERTAIN DEFINITIONS	1
	 	1.1	Certain Definitions	1
	 	1.2	Construction	29
	 	1.3	Accounting Principles; Changes in GAAP	29
	 	 	 	 
	2.	 	REVOLVING CREDIT AND SWING LOAN FACILITIES	29
	 	2.1	Revolving Credit Commitments	29
	 	 	2.1.1	Revolving Credit Loans	29
	 	 	2.1.2	Swing Loan Commitment	30
	 	2.2	Nature of Lenders' Obligations with Respect to Revolving Credit Loans	30
	 	2.3	Commitment Fees	30
	 	2.4	Reduction or Termination of Revolving Credit Commitments	30
	 	2.5	Revolving Credit Loan Requests; Swing Loan Requests	31
	 	 	2.5.1	Revolving Credit Loan Requests	31
	 	 	2.5.2	Swing Loan Requests	31
	 	2.6	Making Revolving Credit Loans and Swing Loans; Presumptions by the Administrative
    Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans	31
	 	 	2.6.1	Making Revolving Credit Loans	31
	 	 	2.6.2	Presumptions by the Administrative Agent	31
	 	 	2.6.3	Making Swing Loans	32
	 	 	2.6.4	Repayment of Revolving Credit Loans	32
	 	 	2.6.5	Borrowings to Repay Swing Loans	32
	 	 	2.6.6	Swing Loans Under Cash Management Agreements	32
	 	2.7	Notes	32
	 	2.8	Use of Proceeds	32
	 	2.9	Letter of Credit Subfacility	33
	 	 	2.9.1	Issuance of Letters of Credit	33
	 	 	2.9.2	Letter of Credit Fees	34
	 	 	2.9.3	Disbursements, Reimbursement	34
	 	 	2.9.4	Repayment of Participation Advances	35
	 	 	2.9.5	Documentation	36
	 	 	2.9.6	Determinations to Honor Drawing Requests	36
	 	 	2.9.7	Nature of Participation and Reimbursement Obligations	36
	 	 	2.9.8	Indemnity	37
	 	 	2.9.9	Liability for Acts and Omissions	38
	 	 	2.9.10	Issuing Lender Reporting Requirements	38
	 	2.10	Defaulting Lenders	39
	 	2.11	Increase in Revolving Credit Commitments and Term Loans	40
	 	 	 	 	 
	3.	 	TERM LOANS	42
	 	3.1	Term Loan Commitments	42
	 	3.2	Nature of Lenders' Obligations with Respect to Term Loans; Repayment Terms	42
	 	3.3	Incremental Term Loans	43

 

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	4.	 	INTEREST RATES	43
	 	4.1	Interest Rate Options	43
	 	 	4.1.1	Revolving Credit Interest Rate Options; Swing Line Interest Rate	43
	 	 	4.1.2	Term Loan Interest Rate Options	43
	 	4.2	Rate Quotations	44
	 	4.3	Interest Periods	44
	 	 	4.3.1	Amount of Borrowing Tranche	44
	 	 	4.3.2	Renewals	44
	 	4.4	Interest After Default	44
	 	 	4.4.1	Letter of Credit Fees, Interest Rate	44
	 	 	4.4.2	Other Obligations	44
	 	 	4.4.3	Acknowledgment	44
	 	4.5	LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits	 
	 	 	Not Available	44
	 	 	4.5.1	Unascertainable	44
	 	 	4.5.2	Illegality; Increased Costs; Deposits Not Available	45
	 	 	4.5.3	Administrative Agent's and Lender's Rights	45
	 	4.6	Selection of Interest Rate Options	45
	 	 	 	 	 
	5.	 	PAYMENTS	46
	 	5.1	Payments	46
	 	5.2	Pro Rata Treatment of Lenders	46
	 	5.3	Sharing of Payments by Lenders	46
	 	5.4	Presumptions by Administrative Agent	47
	 	5.5	Interest Payment Dates	47
	 	5.6	Voluntary Prepayments	47
	 	 	5.6.1	Right to Prepay	47
	 	 	5.6.2	Replacement of a Lender	48
	 	 	5.6.3	Designation of a Different Lending Office	48
	 	5.7	Mandatory Prepayments	49
	 	 	5.7.1	Sale of Assets	49
	 	 	5.7.2	Excess Cash Flow	49
	 	 	5.7.3	Savoy Distributions	49
	 	 	5.7.4	Sale of Savoy	49
	 	 	5.7.5	Application Among Interest Rate Options	49
	 	5.8	Increased Costs	49
	 	 	5.8.1	Increased Costs Generally	49
	 	 	5.8.2	Capital Requirements	50
	 	 	5.8.3	Certificates for Reimbursement; Repayment of Outstanding Loans; Borrowing of
    New Loans	50
	 	 	5.8.4	Delay in Requests	50
	 	5.9	Taxes	50
	 	 	5.9.1	Issuing Lender	50
	 	 	5.9.2	Payments Free of Taxes	50
	 	 	5.9.3	Payment of Other Taxes by the Loan Parties	51
	 	 	5.9.4	Indemnification by the Loan Parties	51
	 	 	5.9.5	Indemnification by the Lenders	51

 

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	 	 	5.9.6	Evidence of Payments	51
	 	 	5.9.7	Status of Lenders	51
	 	 	5.9.8	Treatment of Certain Refunds	53
	 	 	5.9.9	Survival	53
	 	5.10	Indemnity	54
	 	5.11	Settlement Date Procedures	54
	 	 	 	 	
	6.	 	REPRESENTATIONS AND WARRANTIES	54
	 	6.1	Representations and Warranties.	54
	 	 	6.1.1	Organization and Qualification; Power and Authority; Compliance With Laws;
    Title to Properties; Event of Default	55
	 	 	6.1.2	Subsidiaries and Owners; Investment Companies	55
	 	 	6.1.3	Validity and Binding Effect	55
	 	 	6.1.4	No Conflict; Material Agreements; Consents	55
	 	 	6.1.5	Litigation	56
	 	 	6.1.6	Financial Statements	56
	 	 	6.1.7	Margin Stock	56
	 	 	6.1.8	Full Disclosure	56
	 	 	6.1.9	Taxes	57
	 	 	6.1.10	Patents, Trademarks, Copyrights, Licenses, Etc.	57
	 	 	6.1.11	Liens in the Collateral	57
	 	 	6.1.12	Insurance	57
	 	 	6.1.13	ERISA Compliance	57
	 	 	6.1.14	Environmental Matters	58
	 	 	6.1.15	Solvency	59
	 	 	6.1.16	Employment Matters	59
	 	 	6.1.17	Title to Properties	59
	 	 	6.1.18	Coal Act; Black Lung Act	59
	 	 	6.1.19	Bonding Capacity	60
	 	 	6.1.20	Permit Blockage	60
	 	 	6.1.21	Mining Property	60
	 	 	6.1.22	Anti-Terrorism Laws	60
	 	6.2	Updates to Schedules	60
	 	 	 	 	 
	7.	 	CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT	60
	 	7.1	First Loans and Letters of Credit	61
	 	 	7.1.1	Deliveries	61
	 	 	7.1.2	Payment of Fees	63
	 	7.2	Each Loan or Letter of Credit	63
	 	 	 	 
	8.	 	COVENANTS	63
	 	 	8.1	Affirmative Covenants	63
	 	 	8.1.1	Preservation of Existence, Etc.	63
	 	 	8.1.2	Payment of Liabilities, Including Taxes, Etc.	63
	 	 	8.1.3	Maintenance of Insurance	64
	 	 	8.1.4	Maintenance of Properties and Leases	64
	 	 	8.1.5	Visitation Rights	64

 

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	 	 	8.1.6	Keeping of Records and Books of Account	64
	 	 	8.1.7	Compliance with Laws; Use of Proceeds	64
	 	 	8.1.8	Further Assurances	64
	 	 	8.1.9	Anti-Terrorism Laws	65
	 	 	8.1.10	Keepwell	65
	 	 	8.1.11	Collateral and Additional Collateral; Execution and Delivery of Additional
    and Ancillary Security Documents	65
	 	 	8.1.12	Maintenance of Coal Supply Agreements and Material Contracts	66
	 	 	8.1.13	Maintenance of Licenses, Etc.	66
	 	 	8.1.14	Maintenance of Permits	66
	 	 	8.1.15	Required Interest Rate Hedge	66
	 	8.2	Negative Covenants	66
	 	 	8.2.1	Indebtedness	66
	 	 	8.2.2	Liens	67
	 	 	8.2.3	Guaranties	67
	 	 	8.2.4	Loans and Investments	68
	 	 	8.2.5	Dividends and Related Distributions; Hallador Subordinated Debt Payments	68
	 	 	8.2.6	Liquidations, Mergers, Consolidations, Acquisitions	69
	 	 	8.2.7	Dispositions of Assets or Subsidiaries	70
	 	 	8.2.8	Affiliate Transactions	70
	 	 	8.2.9	Subsidiaries, Partnerships and Joint Ventures	71
	 	 	8.2.10	Continuation of or Change in Business	71
	 	 	8.2.11	Fiscal Year	71
	 	 	8.2.12	Issuance of Stock	71
	 	 	8.2.13	Changes in Organizational Documents	71
	 	 	8.2.14	[Intentionally Omitted]	71
	 	 	8.2.15	Minimum Fixed Charge Coverage Ratio	71
	 	 	8.2.16	Maximum Leverage Ratio	71
	 	8.3	Reporting Requirements	71
	 	 	8.3.1	Quarterly Financial Statements	72
	 	 	8.3.2	Annual Financial Statements	72
	 	 	8.3.3	Certificates of the Borrower and Hallador	72
	 	 	8.3.4	Notices	72
	 	 	 	 	 
	9.	 	DEFAULT	73
	 	9.1	Events of Default	73
	 	 	9.1.1	Payments Under Loan Documents	73
	 	 	9.1.2	Breach of Warranty	73
	 	 	9.1.3	Anti-Terrorism Laws	73
	 	 	9.1.4	Breach of Negative Covenants or Visitation Rights	73
	 	 	9.1.5	Breach of Other Covenants	74
	 	 	9.1.6	Defaults in Other Agreements or Indebtedness	74
	 	 	9.1.7	Final Judgments or Orders	74
	 	 	9.1.8	Loan Document Unenforceable	74
	 	 	9.1.9	Uninsured Losses; Proceedings Against Assets	74
	 	 	9.1.10	Events Relating to Plans and Benefit Arrangements	74

 

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	 	 	9.1.11	Change of Control	74
	 	 	9.1.12	Relief Proceedings	74
	 	9.2	Consequences of Event of Default	75
	 	 	9.2.1	Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings	75
	 	 	9.2.2	Bankruptcy, Insolvency or Reorganization Proceedings	75
	 	 	9.2.3	Set-off	75
	 	 	9.2.4	Application of Proceeds	75
	 	 	 	 	 
	10.	 	THE ADMINISTRATIVE AGENT	76
	 	10.1	Appointment and Authority	76
	 	10.2	Rights as a Lender	76
	 	10.3	Exculpatory Provisions	76
	 	10.4	Reliance by Administrative Agent	77
	 	10.5	Delegation of Duties	78
	 	10.6	Resignation of Administrative Agent	78
	 	10.7	Non-Reliance on Administrative Agent and Other Lenders	79
	 	10.8	No Other Duties, etc.	79
	 	10.9	Administrative Agent's Fee	79
	 	10.10	Authorization to Release Collateral and Guarantors	79
	 	10.11	No Reliance on Administrative Agent's Customer Identification Program	79
	 	 	 	 	 
	11.	 	MISCELLANEOUS	79
	 	11.1	Modifications, Amendments or Waivers	79
	 	 	11.1.1	Increase of Commitment	79
	 	 	11.1.2	Extension of Payment; Reduction of Principal Interest or Fees; Modification
    of Terms of Payment	79
	 	 	11.1.3	Release of Collateral or Guarantor	80
	 	 	11.1.4	Miscellaneous	80
	 	11.2	No Implied Waivers; Cumulative Remedies	80
	 	11.3	Expenses; Indemnity; Damage Waiver	80
	 	 	11.3.1	Costs and Expenses	80
	 	 	11.3.2	Indemnification by the Borrower	81
	 	 	11.3.3	Reimbursement by Lenders	81
	 	 	11.3.4	Waiver of Consequential Damages, Etc.	81
	 	 	11.3.5	Payments	82
	 	11.4	Holidays	82
	 	11.5	Notices; Effectiveness; Electronic Communication	82
	 	 	11.5.1	Notices Generally	82
	 	 	11.5.2	Electronic Communications	82
	 	 	11.5.3	Change of Address, Etc.	82
	 	11.6	Severability	82
	 	11.7	Duration; Survival	83
	 	11.8	Successors and Assigns	83
	 	 	11.8.1	Successors and Assigns Generally	83
	 	 	11.8.2	Assignments by Lenders	83
	 	 	11.8.3	Register	84

 

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	 	 	11.8.4	Participations	85
	 	 	11.8.5	Certain Pledges; Successors and Assigns Generally	86
	 	11.9	Confidentiality	86
	 	 	11.9.1	General	86
	 	 	11.9.2	Sharing Information With Affiliates of the Lenders	86
	 	11.10	Counterparts; Integration; Effectiveness	86
	 	 	11.10.1	Counterparts; Integration; Effectiveness	86
	 	11.11	CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF
    VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL	87
	 	 	11.11.1	Governing Law	87
	 	 	11.11.2	SUBMISSION TO JURISDICTION	87
	 	 	11.11.3	WAIVER OF VENUE	87
	 	 	11.11.4	SERVICE OF PROCESS	87
	 	 	11.11.5	WAIVER OF JURY TRIAL	88
	 	11.12	USA Patriot Act Notice	88
	 	11.13	Amendment and Restatement	88

 

LIST OF
SCHEDULES AND EXHIBITS

 

SCHEDULES

 

	SCHEDULE 1.1(A)	-	PRICING GRID
	SCHEDULE 1.1(B)	-	COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES
	SCHEDULE 1.1(P)	-	PERMITTED LIENS
	SCHEDULE 1.1(R)	-	REAL PROPERTY
	SCHEDULE 2.9	-	EXISTING LETTERS OF CREDIT
	SCHEDULE 6.1.1	-	QUALIFICATIONS TO DO BUSINESS
	SCHEDULE 6.1.2	-	SUBSIDIARIES
	SCHEDULE 6.1.4	-	NO CONFLICT; MATERIAL AGREEMENTS; CONSENTS
	SCHEDULE 6.1.14	-	ENVIRONMENTAL DISCLOSURES
	SCHEDULE 7.1.1	-	OPINION OF COUNSEL
	SCHEDULE 7.1.1(xvi)-	OTHER REAL PROPERTY - TITLE INSURANCE REQUIRED
	SCHEDULE 8.1.3	-	INSURANCE REQUIREMENTS RELATING TO COLLATERAL
	SCHEDULE 8.2.1	-	EXISTING INDEBTEDNESS
	 	 	 
	EXHIBITS	 	 
	 	 	 
	EXHIBIT 1.1(A)	-	ASSIGNMENT AND ASSUMPTION AGREEMENT
	EXHIBIT 1.1(C)	-	COLLATERAL ASSIGNMENT
	EXHIBIT 1.1(G)(1)	-	GUARANTOR JOINDER
	EXHIBIT 1.1(G)(2)	-	GUARANTY AGREEMENT
	EXHIBIT 1.1(H)	-	HALLADOR SUBORDINATION AGREEMENT
	EXHIBIT 1.1(I)(1)	-	INDEMNITY
	EXHIBIT 1.1(I)(2)	-	INTERCOMPANY SUBORDINATION AGREEMENT
	EXHIBIT 1.1(M)	-	MORTGAGE
	EXHIBIT 1.1(N)(1)	-	REVOLVING CREDIT NOTE
	EXHIBIT 1.1(N)(2)	-	SWING LOAN NOTE
	EXHIBIT 1.1(N)(3)	-	TERM NOTE
	EXHIBIT 1.1(P)	-	PLEDGE AGREEMENT
	EXHIBIT 1.1(S)	-	SECURITY AGREEMENT
	EXHIBIT 2.5.1	-	LOAN REQUEST

 

    	vi

    	 

    

 

	EXHIBIT 2.5.2	-	SWING LOAN REQUEST
	EXHIBIT 2.11	-	NEW LENDER JOINDER
	EXHIBIT 5.9.7(A)	-	U.S. TAX COMPLIANCE CERTIFICATE (For Foreign Lenders That Are Not Partnerships For U.S. Federal
    Income Tax Purposes)
	EXHIBIT 5.9.7(B)	-	U.S. TAX COMPLIANCE CERTIFICATE (For Foreign Participants That Are Not Partnerships For U.S.
    Federal Income Tax Purposes)
	EXHIBIT 5.9.7(C)	-	U.S. TAX COMPLIANCE CERTIFICATE (For Foreign Participants That Are Partnerships For U.S. Federal
    Income Tax Purposes)
	EXHIBIT 5.9.7(D)	-	U.S. TAX COMPLIANCE CERTIFICATE (For Foreign Lenders That Are Partnerships For U.S. Federal Income
    Tax Purposes)
	EXHIBIT 8.3.3	-	QUARTERLY COMPLIANCE CERTIFICATE

 

    	vii

    	 

    

 

 

SECOND AMENDED
AND RESTATED CREDIT AGREEMENT

 

THIS SECOND AMENDED
AND RESTATED CREDIT AGREEMENT (as hereafter amended, the "Agreement") is dated as of August 29, 2014 and
is made by and among SUNRISE COAL, LLC, an Indiana limited liability company (the "Borrower"), each of
THE GUARANTORS (as hereinafter defined), the LENDERS (as hereinafter defined), and PNC BANK, NATIONAL ASSOCIATION,
in its capacity as administrative agent for the Lenders under this Agreement (hereinafter referred to in such capacity as the
"Administrative Agent").

 

The Borrower has requested
the Lenders to provide (i) a revolving credit facility to the Borrower in an aggregate principal amount not to exceed $250,000,000
(subject to an increase pursuant to Section 2.11 [Increase in Revolving Credit Commitments and Term Loans]) and (ii) a term loan
facility to the Borrower in an aggregate principal amount not to exceed $175,000,000 (subject to an increase pursuant to Section
2.11 [Increase in Revolving Credit Commitments and Term Loans]). In consideration of their mutual covenants and agreements hereinafter
set forth and intending to be legally bound hereby, the parties hereto covenant and agree as follows:

 

1.          CERTAIN
DEFINITIONS

 

1.1       Certain
Definitions. In addition to words and terms defined elsewhere in this Agreement, the following words and terms shall
have the following meanings, respectively, unless the context hereof clearly requires otherwise:

 

2012 Credit Agreement
shall mean that certain Credit Agreement by and among the Borrower, certain guarantors party thereto, certain lenders party
thereto and PNC, as administrative agent, dated as of October 18, 2012, as amended.

 

Acquisition Documents
shall have the meaning specified in Section 7.1.1(xix).

 

Administrative Agent
shall mean PNC Bank, National Association, and its successors and assigns.

 

Administrative Agent's
Fee shall have the meaning specified in Section 10.9 [Administrative Agent's Fee].

 

Administrative Agent's
Letter shall have the meaning specified in Section 10.9 [Administrative Agent's Fee].

 

Affiliate as to any
Person any other Person (i) which directly or indirectly controls, is controlled by, or is under common control with such Person,
(ii) which beneficially owns or holds 5% or more of any class of the voting or other equity interests of such Person, or (iii)
5% or more of any class of voting interests or other equity interests of which is beneficially owned or held, directly or indirectly,
by such Person. For purposes of this definition, "control" of a Person means the power, directly or indirectly, to direct
or cause the direction of the management and policies of such Person, whether by contract or otherwise.

 

    	1

    	 

    

 

Ancillary Security Documents
shall mean all documents, instruments, environmental reports, agreements, endorsements, policies and certificates requested
by the Administrative Agent and customarily delivered by any property owner in connection with a mortgage financing. Without limiting
the generality of the foregoing, examples of Ancillary Security Documents would include insurance policies (other than title insurance)
or certificates regarding any collateral, lien searches, estoppel letters, flood insurance certifications, environmental audits
which shall meet the Administrative Agent's minimum requirements for phase I environmental assessments or phase II environmental
assessments, as applicable, opinions of counsel and the like.

 

Anti-Terrorism Laws
shall mean any Laws relating to terrorism, trade sanctions programs and embargoes, import/export licensing, money laundering or
bribery, and any regulation, order, or directive promulgated, issued or enforced pursuant to such Laws, all as amended, supplemented
or replaced from time to time.

 

Applicable Commitment
Fee Rate shall mean the percentage rate per annum based on the Leverage Ratio as of the most recent fiscal quarter ended according
to the pricing grid on Schedule 1.1(A) below the heading "Commitment Fee."

 

Applicable Letter of
Credit Fee Rate shall mean the percentage rate per annum based on the Leverage Ratio as of the most recent fiscal quarter
ended according to the pricing grid on Schedule 1.1(A) below the heading "Letter of Credit Fee."

 

Applicable Margin
shall mean, as applicable:

 

(A)         the
percentage spread to be added to the Base Rate applicable to Revolving Credit Loans under the Base Rate Option based on the Leverage
Ratio as of the most recent fiscal quarter ended according to the pricing grid on Schedule 1.1(A) below the heading "Revolving
Credit Base Rate Spread", or

 

(B)         the
percentage spread to be added to the Base Rate applicable to Term Loans under the Base Rate Option based on the Leverage Ratio
as of the most recent fiscal quarter ended according to the pricing grid on Schedule 1.1(A) below the heading "Term Loan
Base Rate Spread",

 

(C)         the
percentage spread to be added to the LIBOR Rate applicable to Revolving Credit Loans under the LIBOR Rate Option based on the
Leverage Ratio as of the most recent fiscal quarter ended according to the pricing grid on Schedule 1.1(A) below the heading "Revolving
Credit LIBOR Rate Spread", or

 

(D)         the
percentage spread to be added to the LIBOR Rate applicable to Term Loans under the LIBOR Rate Option based on the Leverage Ratio
as of the most recent fiscal quarter ended according to the pricing grid on Schedule 1.1(A) below the heading "Revolving
Credit LIBOR Rate Spread".

 

Approved Fund shall
mean any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar
extensions of credit in the ordinary course of business and that is administered or managed by (a) a Lender, (b) an Affiliate
of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

    	2

    	 

    

 

Assignment and Assumption
means an assignment and assumption entered into by a Lender and an assignee permitted under Section 11.8 [Successors and Assigns],
in substantially the form of Exhibit 1.1(A).

 

Authorized Officer
shall mean, with respect to any Loan Party, the Chief Executive Officer, President, Chief Financial Officer, Treasurer or Assistant
Treasurer of such Loan Party, any manager in the case of any Loan Party which is a limited liability company, or such other individuals,
designated by written notice to the Administrative Agent from the Borrower, authorized to execute notices, reports and other documents
on behalf of the Loan Parties required hereunder. The Borrower may amend such list of individuals from time to time by giving
written notice of such amendment to the Administrative Agent.

 

Availability shall
mean, as of the date of determination, an amount, which equals the sum of (i) the amount of cash or cash equivalents of the Loan
Parties as of such date that is not subject to any Lien or other restriction limiting the availability of such funds to repay
the Loans, and (ii) the difference (if a positive number) between the amount of the Revolving Credit Commitments as of such date,
less the Revolving Facility Usage as of such date, which may be borrowed at such time by the Borrower in accordance with Section
7.2 and will not result (on a pro forma basis) in a breach of a financial or other covenant contained in this Agreement.

 

Base Rate shall mean,
for any day, a fluctuating per annum rate of interest equal to the highest of (i) the Federal Funds Open Rate, plus 0.5%,
(ii) the Prime Rate, and (iii) the Daily LIBOR Rate, plus 100 basis points (1.0%). Any change in the Base Rate (or any
component thereof) shall take effect at the opening of business on the day such change occurs.

 

Base Rate Option
shall mean the option of the Borrower to have Loans bear interest at the rate and under the terms set forth in either Section
4.1.1(i) [Revolving Credit Base Rate Option] or Section 4.1.2(i) [Term Loan Base Rate Options], as applicable.

 

Black Lung Act shall
mean, collectively, the Black Lung Benefits Revenue Act of 1977, as amended and the Black Lung Benefits Reform Act of 1977, as
amended.

 

Borrower shall mean
Sunrise Coal, LLC, a limited liability company organized and existing under the laws of the State of Indiana.

 

Borrowing Date shall
mean, with respect to any Loan, the date for the making thereof or the renewal or conversion thereof at or to the same or a different
Interest Rate Option, which shall be a Business Day.

 

Borrowing Tranche
shall mean specified portions of Loans outstanding as follows: (i) any Loans to which a LIBOR Rate Option applies which become
subject to the same Interest Rate Option under the same Loan Request by the Borrower and which have the same Interest Period shall
constitute one Borrowing Tranche, and (ii) all Loans to which a Base Rate Option applies shall constitute one Borrowing Tranche.

 

Business Day shall
mean any day other than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required to be closed
for business in Pittsburgh, Pennsylvania and if the applicable Business Day relates to the request for, or the continuation or
conversion of, any Loan to which the LIBOR Rate Option applies, such day must also be a day on which dealings are carried on in
the London interbank market.

 

    	3

    	 

    

 

Cash Management Agreements
shall have the meaning specified in Section 2.6.6 [Swing Loans Under Cash Management Agreements].

 

CEA shall mean the
Commodity Exchange Act (7 U.S.C.§1 et seq.), as amended from time to time, and any successor statute.

 

CFTC shall mean the
Commodity Futures Trading Commission.

 

Change in Law shall
mean the occurrence, after the date of this Agreement, of any of the following: (i) the adoption or taking effect of any Law,
(ii) any change in any Law or in the administration, interpretation, implementation or application thereof by any Official Body
or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of Law) by any Official
Body; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, regulations, guidelines, interpretations or directives thereunder or issued in connection
therewith (whether or not having the force of Law) and (y) all requests, rules, regulations, guidelines, interpretations or directives
promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar
authority) or the United States or foreign regulatory authorities (whether or not having the force of Law), in each case pursuant
to Basel III, shall in each case be deemed to be a Change in Law regardless of the date enacted, adopted, issued, promulgated
or implemented.

 

CIP Regulations shall
have the meaning specified in Section 10.11 [No Reliance on Administrative Agent's Customer Identification Program].

 

Closing Date shall
mean the Business Day on which the first Loan shall be made, which shall be August 29, 2014.

 

Coal Act shall mean
the Coal Industry Retiree Health Benefits Act of 1992, as amended.

 

Code shall mean the
Internal Revenue Code of 1986, as the same may be amended or supplemented from time to time, and any successor statute of similar
import, and the rules and regulations thereunder, as from time to time in effect.

 

Collateral shall
mean the collateral under the (i) Security Agreement (ii) Pledge Agreement, (iii) Collateral Assignment or (iv) Mortgages, other
than the Excluded Collateral.

 

Collateral Assignment
shall mean the Collateral Assignment in the form of Exhibit 1.1(C).

 

Collateral Documents
shall have the meaning assigned to that term in Section 6.1.11 [Liens in Collateral].

 

    	4

    	 

    

 

Commitment shall
mean as to any Lender the aggregate of its Revolving Credit Commitment and Term Loan Commitment and, in the case of PNC, its Swing
Loan Commitment, and Commitments shall mean the aggregate of the Revolving Credit Commitments, Term Loan Commitments and
Swing Loan Commitment of all of the Lenders.

 

Commitment Fee shall
have the meaning specified in Section 2.3 [Commitment Fees].

 

Compliance Certificate
shall have the meaning specified in Section 8.3.3 [Certificates of Borrower and Hallador].

 

Connection Income Taxes
shall mean Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise
Taxes or branch profits Taxes.

 

Consideration shall
mean with respect to any Permitted Acquisition, the aggregate of (without duplication) (i) the cash paid by any of the Loan Parties,
directly or indirectly, to the seller in connection therewith, (ii) the Indebtedness incurred or assumed by any of the Loan Parties,
whether in favor of the seller or otherwise and whether fixed or contingent, (iii) any Guaranty given or incurred by any Loan
Party in connection therewith, and (iv) any other consideration given or obligation incurred by any of the Loan Parties in connection
therewith.

 

Consolidated EBIT
for any period of determination shall mean (i) the sum of net income (excluding the effect of non-cash compensation expenses related
to common stock and other equity securities issued to employees), non-cash charges to net income (other than depreciation and
amortization), interest expense, income tax expense, plus (ii) certain costs and fees incurred in connection with the Transaction
in an amount not to exceed $10,000,000, minus (iii) non-cash credits to net income, in each case of the Borrower and its
Subsidiaries for such period determined and consolidated in accordance with GAAP.

 

Consolidated EBITDA
for any period of determination shall mean (i) the sum of net income (excluding the effect of non-cash compensation expenses related
to common stock and other equity securities issued to employees), depreciation, depletion, amortization, other non-cash charges
to net income, interest expense, income tax expense, and the Prosperity Mine Add Back, plus (ii) certain costs and fees
incurred in connection with the Transaction in an amount not to exceed $10,000,000, minus (iii) non-cash credits to net
income, in each case of the Borrower and its Subsidiaries for such period determined and consolidated in accordance with GAAP.

 

Consolidated Funded Debt
shall mean, without duplication, total Indebtedness for Borrowed Money of the Loan Parties (other than Hallador) and their
Subsidiaries, determined and consolidated in accordance with GAAP.

 

Contamination shall
mean the presence or release or threat of release of Regulated Substances in, on, under or emanating to or from the Real Property,
which pursuant to Environmental Laws requires notification or reporting to an Official Body, or which pursuant to Environmental
Laws requires the investigation, cleanup, removal, remediation, containment, abatement of or other response action or which otherwise
constitutes a violation of Environmental Laws.

 

    	5

    	 

    

 

Covered Entity shall
mean (a) the Borrower, each of Borrower’s Subsidiaries, all Guarantors and all pledgors of Collateral, and (b) each Person
that, directly or indirectly, is in control of a Person described in clause (a) above. For purposes of this definition, control
of a Person shall mean the direct or indirect (x) ownership of, or power to vote, 50% or more of the issued and outstanding equity
interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions
for such Person, or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership
of equity interests, contract or otherwise.

 

Daily LIBOR Rate
shall mean, for any day, the rate per annum determined by the Administrative Agent by dividing (x) the Published Rate by (y) a
number equal to 1.00 minus the LIBOR Reserve Percentage on such day.

 

Defaulting Lender
shall mean any Lender that (a) has failed, within two Business Days of the date required to be funded or paid, to (i) fund any
portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or Swing Loans or (iii) pay over to the
Administrative Agent, the Issuing Lender, PNC Bank (as the Swing Loan Lender) or any Lender any other amount required to be paid
by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative Agent in writing that such failure
is the result of such Lender's good faith determination that a condition precedent to funding (specifically identified and including
the particular default, if any) has not been satisfied, (b) has notified the Borrower or the Administrative Agent in writing,
or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations
under this Agreement (unless such writing or public statement indicates that such position is based on such Lender's good faith
determination that a condition precedent (specifically identified and including the particular default, if any) to funding a loan
under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed,
within two Business Days after request by the Administrative Agent or the Borrower, acting in good faith, to provide a certification
in writing from an authorized officer of such Lender that it will comply with its obligations (and is financially able to meet
such obligations) to fund prospective Loans and participations in then outstanding Letters of Credit and Swing Loans under this
Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon the Administrative
Agent's or the Borrower's receipt of such certification in form and substance satisfactory to the Administrative Agent or the
Borrower, as the case may be, (d) has become the subject of a Bankruptcy Event or (e) has failed at any time to comply with the
provisions of Section 5.3 [Sharing of Payments by Lenders] with respect to purchasing participations from the other Lenders, whereby
such Lender's share of any payment received, whether by setoff or otherwise, is in excess of its Ratable Share of such payments
due and payable to all of the Lenders.

 

    	6

    	 

    

 

As used in this definition
and in Section 2.10 [Defaulting Lenders], the term "Bankruptcy Event" means, with respect to any Person, such Person
or such Person's direct or indirect parent company becoming the subject of a bankruptcy or insolvency proceeding, or having had
a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with
the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Administrative
Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding
or appointment, provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition
of any ownership interest, in such Person or such Person's direct or indirect parent company by an Official Body or instrumentality
thereof if, and only if, such ownership interest does not result in or provide such Person with immunity from the jurisdiction
of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Person
(or such Official Body or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such
Person.

 

Dollar, Dollars, U.S.
Dollars and the symbol $ shall mean lawful money of the United States of America.

 

Drawing Date shall
have the meaning specified in Section 2.9.3 [Disbursements, Reimbursement].

 

Effective Date means
the date indicated in a document or agreement to be the date on which such document or agreement becomes effective, or, if there
is no such indication, the date of execution of such document or agreement.

 

Eligible Contract Participant
shall mean an "eligible contract participant" as defined in the CEA and regulations thereunder.

 

Eligibility Date
shall mean, with respect to each Loan Party and each Swap, the date on which this Agreement or any other Loan Document becomes
effective with respect to such Swap (for the avoidance of doubt, the Eligibility Date shall be the Effective Date of such Swap
if this Agreement or any other Loan Document is then in effect with respect to such Loan Party, and otherwise it shall be the
Effective Date of this Agreement and/or such other Loan Document(s) to which such Loan Party is a party).

 

Environmental Complaint
shall mean any written complaint by any Person or Official Body setting forth a cause of action for personal injury or property
damage, natural resource damage, contribution or indemnity for response costs, civil or administrative penalties, criminal fines
or penalties, or declaratory or equitable relief arising under any Environmental Laws or any order, notice of violation, citation,
subpoena, request for information or other written notice or demand of any type issued by an Official Body pursuant to any Environmental
Laws.

 

Environmental Laws
shall mean all federal, state, local and foreign Laws and any consent decrees, settlement agreements, judgments, orders, directives
or policies or programs having the force and effect of law issued by or entered into with an Official Body pertaining or relating
to: (i) pollution or pollution control; (ii) protection of human health or the environment; (iii) employee safety in the workplace;
(iv) the presence, use, management, generation, manufacture, processing, extraction, treatment, recycling, refining, reclamation,
labeling, transport, storage, collection, distribution, disposal or release or threat of release of Regulated Substances; (v)
the presence of Contamination; (vi) the protection of endangered or threatened species and (vii) the protection of Environmentally
Sensitive Areas.

 

    	7

    	 

    

 

Environmentally Sensitive
Area shall mean (i) any wetland as defined by applicable Environmental Laws; (ii) any area designated as a coastal zone pursuant
to applicable Laws, including Environmental Laws; (iii) any area of historic or archeological significance or scenic area as defined
or designated by applicable Laws, including Environmental Laws; (iv) habitats of endangered species or threatened species as designated
by applicable Laws, including Environmental Laws or (v) a floodplain or other flood hazard area as defined pursuant to any applicable
Laws.

 

ERISA shall mean
the Employee Retirement Income Security Act of 1974, as the same may be amended or supplemented from time to time, and any successor
statute of similar import, and the rules and regulations thereunder, as from time to time in effect.

 

ERISA Affiliate shall
mean, at any time, any trade or business (whether or not incorporated) under common control with the Borrower and are treated
as a single employer under Section 414 of the Code.

 

ERISA Event means
(a) a reportable event (under Section 4043 of ERISA and regulations thereunder) with respect to a Plan; (b) a withdrawal by Borrower
or any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer
(as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that
a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment
as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Plan; (e)
an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee
to administer, any Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but
not delinquent under Section 4007 of ERISA, upon Borrower or any ERISA Affiliate.

 

ERISA Group shall
mean, at any time, the Borrower and all members of a controlled group of corporations and all trades or businesses (whether or
not incorporated) under common control and all other entities which, together with the Borrower, are treated as a single employer
under Section 414 of the Internal Revenue Code.

 

Eurocurrency Liabilities
shall have the meaning ascribed to such term in the definition of LIBOR Rate Reserve Percentage set forth herein.

 

Event of Default
shall mean any of the events described in Section 9.1 [Events of Default] and referred to therein as an "Event of Default."

 

Excess Cash Flow
shall be computed as of the close of each fiscal year by taking the difference between Consolidated EBIT of the Loan Parties for
such fiscal year and Fixed Charges for such fiscal year. All determinations of Excess Cash Flow shall be based on the immediately
preceding fiscal year and shall be made following the delivery by the Borrower to the Administrative Agent of the Borrower's audited
financial statements for such preceding year.

 

    	8

    	 

    

 

 

Excluded Collateral
shall mean the following:

 

(1)         any
lease, license, contract, property rights, equipment, joint venture interests, or agreement to which a Loan Party is a party or
any of its rights or interests thereunder if and for so long as the grant of a security interest therein shall constitute or result
in (A) the abandonment, invalidation or unenforceability of any right, title or interest of such Loan Party therein or (B) a breach
or termination pursuant to the terms of, or a default under, any such lease, license, contract, property rights or agreement (other
than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC
(or any successor provision or provisions) of any relevant jurisdiction or any other applicable law (including the Bankruptcy
Code) or principles of equity), provided however that, in the case of either (A) or (B) above, such security interest shall attach
immediately at such time as the condition causing such abandonment, invalidation or unenforceability shall be remedied and to
the extent severable, shall attach immediately to any portion of such lease, license, contract, property rights or agreement that
does not result in any of the consequences specified in (A) or (B) above,

 

(2)         any
of the outstanding capital stock of any Subsidiary not organized under the laws of the United States or any State or a political
subdivision thereof in excess of 65% of the voting power of all classes of capital stock of such Subsidiary entitled to vote,
or

 

(3)         assets
of the Loan Parties that the Administrative Agent reasonably determines that the benefits of obtaining such Collateral are outweighed
by the costs or burdens of providing the same.

 

Excluded Hedge Liability
or Liabilities shall mean, with respect to each Loan Party, each of its Swap Obligations if, and only to the extent
that, all or any portion of this Agreement or any other Loan Document that relates to such Swap Obligation is or becomes illegal
under the CEA, or any rule, regulation or order of the CFTC, solely by virtue of such Loan Party’s failure to qualify as
an Eligible Contract Participant on the Eligibility Date for such Swap. Notwithstanding anything to the contrary contained in
the foregoing or in any other provision of this Agreement or any other Loan Document, the foregoing is subject to the following
provisos: (a) if a Swap Obligation arises under a master agreement governing more than one Swap, this definition shall apply only
to the portion of such Swap Obligation that is attributable to Swaps for which such guaranty or security interest is or becomes
illegal under the CEA, or any rule, regulations or order of the CFTC, solely as a result of the failure by such Loan Party for
any reason to qualify as an Eligible Contract Participant on the Eligibility Date for such Swap, (b) if a guarantee of a Swap
Obligation would cause such obligation to be an Excluded Hedge Liability but the grant of a security interest would not cause
such obligation to be an Excluded Hedge Liability, such Swap Obligation shall constitute an Excluded Hedge Liability for purposes
of the guaranty but not for purposes of the grant of the security interest, and (c) if there is more than one Loan Party executing
this Agreement or the other Loan Documents and a Swap Obligation would be an Excluded Hedge Liability with respect to one or more
of such Persons, but not all of them, the definition of Excluded Hedge Liability or Liabilities with respect to each such Person
shall only be deemed applicable to (i) the particular Swap Obligations that constitute Excluded Hedge Liabilities with respect
to such Person, and (ii) the particular Person with respect to which such Swap Obligations constitute Excluded Hedge Liabilities.

 

    	9

    	 

    

 

Excluded Taxes shall
mean any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment
to a Recipient, (i) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes,
in each case, (a) imposed as a result of such Recipient being organized under the laws of, or having its principal office or,
in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision
thereof) or (b) that are Other Connection Taxes, (ii) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts
payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law
in effect on the date on which (a) such Lender acquires such interest in such Loan or Commitment (other than pursuant to an assignment
request by the Borrower under Section 5.6.2 [Replacement of a Lender]) or (b) such Lender changes its lending office, except in
each case to the extent that, pursuant to Section 5.9.7 [Status of Lenders], amounts with respect to such Taxes were payable either
to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed
its lending office, (iii) Taxes attributable to such Recipient's failure to comply with Section 5.9.7 [Status of Lenders], and
(iv) any U.S. federal withholding Taxes imposed under FATCA (except to the extent imposed due to the failure of the Borrower to
provide documentation or information to the IRS).

 

Executive Order No. 13224
shall mean the Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, as the same has been, or shall
hereafter be, renewed, extended, amended or replaced.

 

Expiration Date shall
mean August 29, 2019.

 

Existing Letters of Credit
shall have the meaning assigned to that term in Section 2.9 [Letter of Credit Subfacility].

 

FATCA shall mean
Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof
and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

Federal Funds Effective
Rate for any day shall mean the rate per annum (based on a year of 360 days and actual days elapsed and rounded upward to
the nearest 1/100 of 1%) announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted
average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as
computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve
Bank computes and announces the weighted average it refers to as the "Federal Funds Effective Rate" as of the date of
this Agreement; provided, if such Federal Reserve Bank (or its successor) does not announce such rate on any day, the "Federal
Funds Effective Rate" for such day shall be the Federal Funds Effective Rate for the last day on which such rate was announced.

 

    	10

    	 

    

 

Federal Funds Open Rate
for any day shall mean the rate per annum (based on a year of 360 days and actual days elapsed) which is the daily federal
funds open rate as quoted by ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for that day
opposite the caption "OPEN" (or on such other substitute Bloomberg Screen that displays such rate), or as set forth
on such other recognized electronic source used for the purpose of displaying such rate as selected by the Administrative Agent
(for the purpose of this definition, an "Alternate Source") (or if such rate for such day does not appear on
the Bloomberg Screen BTMM (or any substitute screen) or on any Alternate Source, or if there shall at any time, for any reason,
no longer exist a Bloomberg Screen BTMM (or any substitute screen) or any Alternate Source, a comparable replacement rate determined
by the Administrative Agent at such time (which determination shall be conclusive absent manifest error); provided however, that
if such day is not a Business Day, the Federal Funds Open Rate for such day shall be the "open" rate on the immediately
preceding Business Day. If and when the Federal Funds Open Rate changes, the rate of interest with respect to any advance to which
the Federal Funds Open Rate applies will change automatically without notice to the Borrower, effective on the date of any such
change.

 

Fixed Charge Coverage
Ratio shall mean the ratio of (i) Consolidated EBIT to (ii) Fixed Charges.

 

Fixed Charges shall
mean for any period of determination the sum of interest expense, income taxes due and payable and scheduled principal installments
on Indebtedness (as adjusted for prepayments), in each case of the Borrower and its Subsidiaries for such period determined and
consolidated in accordance with GAAP.

 

Flood Laws shall
mean all applicable Laws relating to policies and procedures that address requirements placed on federally regulated lenders under
the National Flood Insurance Reform Act of 1994 and other Laws related thereto.

 

Foreign Lender shall
mean (i) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (ii) if the Borrower is not a U.S. Person,
a Lender that is resident or organized under the Laws of a jurisdiction other than that in which the Borrower is resident for
tax purposes. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall
be deemed to constitute a single jurisdiction.

 

Foreign Subsidiaries
shall mean, for any Person, each Subsidiary of such Person that is incorporated or organized under the laws of any jurisdiction
other than the United States of America or any state or territory thereof.

 

GAAP shall mean generally
accepted accounting principles as are in effect from time to time, subject to the provisions of Section 1.3 [Accounting Principles;
Changes in GAAP], and applied on a consistent basis both as to classification of items and amounts.

 

    	11

    	 

    

 

Guarantor shall mean
each of the parties to this Agreement which is designated as a "Guarantor" on the signature page hereof and each other
Person which joins this Agreement as a Guarantor after the date hereof.

 

Guarantor Joinder
shall mean a joinder by a Person as a Guarantor under the Loan Documents in the form of Exhibit 1.1(G)(1).

 

Guaranty of any Person
shall mean any obligation of such Person guaranteeing or in effect guaranteeing any liability or obligation of any other Person
in any manner, whether directly or indirectly, including any agreement to indemnify or hold harmless any other Person, any performance
bond or other suretyship arrangement and any other form of assurance against loss, except endorsement of negotiable or other instruments
for deposit or collection in the ordinary course of business.

 

Guaranty Agreement
shall mean the Continuing Agreement of Guaranty and Suretyship in substantially the form of Exhibit 1.1(G)(2) executed
and delivered by each of the Guarantors.

 

Hallador shall mean
Hallador Energy Company, a corporation organized and existing under the laws of the State of Colorado.

 

Hallador Subordinated
Debt shall mean Indebtedness as of the Closing Date of the Borrower to Hallador which is subordinated pursuant to the Hallador
Subordination Agreement.

 

Hallador Subordination
Agreement shall mean the Hallador Subordination Agreement and Assignment of Note in substantially the form of Exhibit 1.1(H)
executed by each of Hallador and the Administrative Agent.

 

Hedge Liabilities
shall mean the Interest Rate Hedge Liabilities.

 

Increasing Lender
shall have the meaning assigned to that term in Section 2.11 [Increase in Commitments].

 

Incremental Loan
shall have the meaning assigned to that term in Section 2.11 [Increase in Commitments]. 

 

Indebtedness shall
mean, as to any Person at any time, any and all indebtedness, obligations or liabilities (whether matured or unmatured, liquidated
or unliquidated, direct or indirect, absolute or contingent, or joint or several) of such Person for or in respect of: (i) borrowed
money, (ii) amounts raised under or liabilities in respect of any note purchase or acceptance credit facility, (iii) reimbursement
obligations (contingent or otherwise) under any letter of credit agreement, (iv) obligations under any currency swap agreement,
interest rate swap, cap, collar or floor agreement or other interest rate management device, (v) any other transaction (including
forward sale or purchase agreements, capitalized leases and conditional sales agreements) having the commercial effect of a borrowing
of money entered into by such Person to finance its operations or capital requirements (but not including trade payables and accrued
expenses incurred in the ordinary course of business which are not represented by a promissory note or other evidence of indebtedness
and which are not more than thirty (30) days past due), or (vi) any Guaranty of Indebtedness for borrowed money.

 

    	12

    	 

    

 

Indebtedness for Borrowed
Money shall mean, as to any Person at any time, any and all indebtedness, obligations or liabilities (whether matured or unmatured,
liquidated or unliquidated, direct or indirect, absolute or contingent, or joint or several) of such Person for or in respect
of: (i) borrowed money, (ii) amounts raised under or liabilities in respect of any note purchase or acceptance credit facility,
(iii) the unreimbursed amount of all drafts drawn under letters of credit issued for the account of such Person and the undrawn
stated amount of all letters of credit issued for the account of such Person, (iv) obligations with respect to capitalized leases,
or (v) any Guaranty of Indebtedness of the type described in clauses (i) through (iv) above.

 

Indemnified Taxes
shall mean (i) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation
of any Loan Party under any Loan Document, and (ii) to the extent not otherwise described in the preceding clause (i), Other Taxes.

 

Indemnitee shall
have the meaning specified in Section 11.3.2 [Indemnification by the Borrower].

 

Indemnity shall mean
the Indemnity Agreement in the form of Exhibit 1.1(I)(1) relating to possible environmental liabilities associated with any of
the owned or leased real property of the Loan Parties (other than Hallador) or their Subsidiaries.

 

Information shall
mean all information received from the Loan Parties or any of their Subsidiaries relating to the Loan Parties or any of such Subsidiaries
or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender
or the Issuing Lender on a non-confidential basis prior to disclosure by the Loan Parties or any of their Subsidiaries.

 

Initial Term Loans
shall have the meaning ascribed to such term in Section 2.11(e) herein.

 

Insolvency Proceeding
shall mean, with respect to any Person, (a) a case, action or proceeding with respect to such Person (i) before any court
or any other Official Body under any bankruptcy, insolvency, reorganization or other similar Law now or hereafter in effect, or
(ii) for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator (or similar official)
of any Loan Party or otherwise relating to the liquidation, dissolution, winding-up or relief of such Person, or (b) any general
assignment for the benefit of creditors, composition, marshaling of assets for creditors, or other, similar arrangement in respect
of such Person's creditors generally or any substantial portion of its creditors; undertaken under any Law.

 

Intercompany Subordination
Agreement shall mean a Subordination Agreement among the Loan Parties in the form attached hereto as Exhibit 1.1(I)(2).

 

    	13

    	 

    

 

Interest Period shall
mean the period of time selected by the Borrower in connection with (and to apply to) any election permitted hereunder by the
Borrower to have Loans bear interest under the LIBOR Rate Option. Subject to the last sentence of this definition, such period
shall be one, two, three or six Months, as selected by the Borrower. Such Interest Period shall commence on the effective date
of such Interest Rate Option, which shall be (i) the Borrowing Date if the Borrower is requesting new Loans, or (ii) the date
of renewal of or conversion to the LIBOR Rate Option if the Borrower is renewing or converting to the LIBOR Rate Option applicable
to outstanding Loans. Notwithstanding the second sentence hereof: (A) any Interest Period which would otherwise end on a date
which is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day, and (B) the Borrower shall not select,
convert to or renew an Interest Period for any portion of the Loans that would end after the Expiration Date or Maturity Date.

 

Interest Rate Hedge
shall mean an interest rate exchange, collar, cap, swap, adjustable strike cap, adjustable strike corridor or similar agreements
entered into by the Loan Parties (other than Hallador) or their Subsidiaries in order to provide protection to, or minimize the
impact upon, the Borrower, the Guarantor and/or their Subsidiaries of increasing floating rates of interest applicable to Indebtedness.

 

Interest Rate Hedge Liabilities
shall have the meaning ascribed to such term in the definition of Lender Provided Interest Rate Hedge.

 

Interest Rate Option
shall mean any LIBOR Rate Option or Base Rate Option.

 

IRS shall mean the
United States Internal Revenue Service.

 

ISP98 shall have
the meaning specified in Section 11.11.1 [Governing Law].

 

Issuing Lender means
PNC Bank, in its individual capacity as issuer of Letters of Credit hereunder, Old National Bank and any other Lender that Borrower,
Administrative Agent and such other Lender may agree may from time to time issue Letters of Credit hereunder.

 

Joint Venture shall
mean a corporation, partnership, limited liability company or other entities in which any Person other than the Loan Parties (other
than Hallador) and their Subsidiaries holds, directly or indirectly, an equity interest.

 

Law shall mean any
law(s) (including common law), constitution, statute, treaty, regulation, rule, ordinance, opinion, issued guidance, release,
ruling, order, executive order, injunction, writ, decree, bond, judgment, authorization or approval, lien or award of or any settlement
arrangement, by agreement, consent or otherwise, with any Official Body, foreign or domestic.

 

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Lender Provided Interest
Rate Hedge shall mean an Interest Rate Hedge which is provided by any Lender or its Affiliate and with respect to which such
Lender confirms to Administrative Agent in writing prior to the execution thereof that it: (a) is documented in a standard International
Swaps and Derivatives Association Master Agreement or another reasonable and customary manner, (b) provides for the method of
calculating the reimbursable amount of the provider's credit exposure in a reasonable and customary manner, and (c) is entered
into for hedging (rather than speculative) purposes. The liabilities owing to the provider of any Lender Provided Interest Rate
Hedge (the "Interest Rate Hedge Liabilities") by any Loan Party that is party to such Lender Provided Interest
Rate Hedge shall, for purposes of this Agreement and all other Loan Documents be "Obligations" of such Person and of
each other Loan Party, be guaranteed obligations under any Guaranty Agreement and secured obligations under any other Loan Document,
as applicable, and otherwise treated as Obligations for purposes of the other Loan Documents, except to the extent constituting
Excluded Hedge Liabilities of such Person. The Liens securing the Hedge Liabilities shall be pari passu with the Liens securing
all other Obligations under this Agreement and the other Loan Documents, subject to the express provisions of Section 9.2.4 [Application
of Proceeds].

 

Lenders shall mean
the financial institutions named on Schedule 1.1(B) and their respective successors and assigns as permitted hereunder,
each of which is referred to herein as a Lender. For the purpose of any Loan Document which provides for the granting of a security
interest or other Lien to the Lenders or to the Administrative Agent for the benefit of the Lenders as security for the Obligations,
"Lenders" shall include any Affiliate of a Lender to which such Obligation is owed.

 

Lessor Consents shall
have the meaning specified in Section 7.1.1(viii) [Deliveries].

 

Letter of Credit
shall have the meaning specified in Section 2.9.1 [Issuance of Letters of Credit].

 

Letter of Credit Borrowing
shall have the meaning specified in Section 2.9.3 [Disbursements, Reimbursement].

 

Letter of Credit Fee
shall have the meaning specified in Section 2.9.2 [Letter of Credit Fees].

 

Letter of Credit Obligation
means, as of any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit
on such date (if any Letter of Credit shall increase in amount automatically in the future, such aggregate amount available to
be drawn shall currently give effect to any such future increase) plus the aggregate Reimbursement Obligations and Letter
of Credit Borrowings on such date.

 

Letter of Credit Sublimit
shall have the meaning specified in Section 2.9.1 [Issuance of Letters of Credit].

 

Leverage Ratio shall
mean, as of the end of any date of determination, the ratio of (A) Consolidated Funded Debt of Borrower and its Subsidiaries on
such date to (B) Consolidated EBITDA (i) for the four fiscal quarters then ending if such date is a fiscal quarter end or (ii)
for the four fiscal quarters most recently ended if such date is not a fiscal quarter end.

 

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LIBOR Rate shall
mean, with respect to the Loans comprising any Borrowing Tranche to which the LIBOR Rate Option applies for any Interest Period,
the interest rate per annum determined by the Administrative Agent by dividing (the resulting quotient rounded upwards, if necessary,
to the nearest 1/100th of 1% per annum) (i) the rate which appears on the Bloomberg Page BBAM1 (or on such other substitute Bloomberg
page that displays rates at which US dollar deposits are offered by leading banks in the London interbank deposit market), or
the rate which is quoted by another source selected by the Administrative Agent which has been approved by the British Bankers'
Association as an authorized information vendor for the purpose of displaying rates at which US dollar deposits are offered by
leading banks in the London interbank deposit market (a "LIBOR Alternate Source"), at approximately 11:00 a.m., London
time, two (2) Business Days prior to the commencement of such Interest Period as the London interbank offered rate for U.S. Dollars
for an amount comparable to such Borrowing Tranche and having a borrowing date and a maturity comparable to such Interest Period
(or if there shall at any time, for any reason, no longer exist a Bloomberg Page BBAM1 (or any substitute page) or any LIBOR Alternate
Source, a comparable replacement rate determined by the Administrative Agent at such time (which determination shall be conclusive
absent manifest error)), by (ii) a number equal to 1.00 minus the LIBOR Reserve Percentage. LIBOR may also be expressed by the
following formula:

 

Average of London interbank offered rates
quoted

by Bloomberg or appropriate successor as shown on

	LIBOR =	Bloomberg Page BBAM1
	 	1.00 - LIBOR Reserve Percentage

 

The LIBOR Rate shall be
adjusted with respect to any Loan to which the LIBOR Rate Option applies that is outstanding on the effective date of any change
in the LIBOR Rate Reserve Percentage as of such effective date. The Administrative Agent shall give prompt notice to the Borrower
of the LIBOR Rate as determined or adjusted in accordance herewith, which determination shall be conclusive absent manifest error.

 

LIBOR Rate Option
shall mean the option of the Borrower to have Loans bear interest at the rate and under the terms set forth in Section 4.1.1(ii)
[Revolving Credit LIBOR Rate Option] or Section 4.1.2(ii) [Term Loan LIBOR Rate Option], as applicable.

 

LIBOR Rate Reserve Percentage
shall mean as of any day the maximum percentage in effect on such day, as prescribed by the Board of Governors of the Federal
Reserve System (or any successor) for determining the reserve requirements (including supplemental, marginal and emergency reserve
requirements) with respect to Eurocurrency funding (currently referred to as "Eurocurrency Liabilities").

 

Lien shall mean any
mortgage, deed of trust, pledge, lien, security interest, charge or other encumbrance or security arrangement of any nature whatsoever,
whether voluntarily or involuntarily given, including any conditional sale or title retention arrangement, and any assignment,
deposit arrangement or lease intended as, or having the effect of, security and any filed financing statement or other notice
of any of the foregoing (whether or not a lien or other encumbrance is created or exists at the time of the filing).

 

Loan Documents shall
mean this Agreement, the Administrative Agent's Letter, the Collateral Assignment, the Guaranty Agreement, the Hallador Subordination
Agreement, the Indemnity, the Intercompany Subordination Agreement, the Mortgages, the Notes, the Pledge Agreement, the Security
Agreement, and any other instruments, certificates or documents delivered in connection herewith or therewith.

 

    	16

    	 

    

 

Loan Parties shall
mean the Borrower and the Guarantors.

 

Loan Request shall
have the meaning specified in Section 2.5 [Revolving Credit Loan Requests; Swing Loan Requests].

 

Loans shall mean
collectively and Loan shall mean separately all Revolving Credit Loans, Swing Loans and the Term Loans or any Revolving Credit
Loan, Swing Loan or the Term Loan.

 

Material Adverse Change
shall mean any set of circumstances or events which (a) has or could reasonably be expected to have any material adverse effect
whatsoever upon the validity or enforceability of this Agreement or any other Loan Document, (b) is or could reasonably be expected
to be material and adverse to the business, properties, assets, financial condition, results of operations of the Loan Parties
taken as a whole, (c) impairs materially or could reasonably be expected to impair materially the ability of the Loan Parties
taken as a whole to duly and punctually pay or perform its Indebtedness, or (d) impairs materially or could reasonably be expected
to impair materially the ability of the Administrative Agent or any of the Lenders, to the extent permitted, to enforce their
legal remedies pursuant to this Agreement or any other Loan Document.

 

Maturity Date shall
mean August 29, 2019.

 

Month, with respect
to an Interest Period under the LIBOR Rate Option, shall mean the interval between the days in consecutive calendar months numerically
corresponding to the first day of such Interest Period. If any LIBOR Rate Interest Period begins on a day of a calendar month
for which there is no numerically corresponding day in the month in which such Interest Period is to end, the final month of such
Interest Period shall be deemed to end on the last Business Day of such final month.

 

Mortgage or Mortgages
shall mean each Mortgage in substantially the form of Exhibit 1.1(M) executed and delivered by the Loan Parties
(other than Hallador) to the Administrative Agent for the benefit of the Lenders with respect to the Real Property that is owned
by any of the Loan Parties (other than Hallador), or with respect to the Real Property that is leased by any of the Loan Parties
(other than Hallador) and that includes surface rights and significant facilities of any of the Loan Parties (other than Hallador),
but not including any leased office space.

 

Multiemployer Plan
shall mean any employee benefit plan which is a "multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA
and to which the Borrower or any member of the ERISA Group is then making or accruing an obligation to make contributions or,
within the preceding five Plan years, has made or had an obligation to make such contributions.

 

Net Cash Equity Infusion
from Savoy shall mean any and all cash dividends, distributions, or other payments from Savoy to Hallador or any Loan Party
except for such distributions paid with respect to tax liabilities that have accrued due to such party’s ownership of Savoy.

 

    	17

    	 

    

 

New Lender shall
have the meaning assigned to that term in Section 2.11 [Increase in Revolving Credit Commitments].

 

Non-Qualifying Party
shall mean any Loan Party that fails for any reason to qualify as an Eligible Contract Participant on the Effective Date of
the applicable Swap.

 

Notes shall mean,
collectively, and Note shall mean separately, the promissory notes in the form of Exhibit 1.1(N)(1) evidencing the
Revolving Credit Loans, in the form of Exhibit 1.1(N)(2) evidencing the Swing Loan, and in the form of Exhibit 1.1(N)(3)
evidencing the Term Loans.

 

Notices shall have
the meaning specified in Section 11.5 [Notices; Effectiveness; Electronic Communication].

 

Obligation shall
mean any obligation or liability of any of the Loan Parties, howsoever created, arising or evidenced, whether direct or indirect,
absolute or contingent, now or hereafter existing, or due or to become due, under or in connection with (i) this Agreement, the
Notes, the Letters of Credit, the Administrative Agent's Letter or any other Loan Document whether to the Administrative Agent,
any of the Lenders or their Affiliates or other persons provided for under such Loan Documents, (ii) any Lender Provided Interest
Rate Hedge, and (iii) any Other Lender Provided Financial Service Products. Notwithstanding anything to the contrary contained
in the foregoing, the Obligations shall not include any Excluded Hedge Liabilities.

 

Official Body shall
mean the government of the United States of America or any other nation, or of any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central Bank) and any group or body charged with setting financial
accounting or regulatory capital rules or standards (including, the Financial Accounting Standards Board, the Bank for International
Settlements or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing).

 

Order shall have
the meaning specified in Section 2.9.9 [Liability for Acts and Omissions].

 

Other Connection Taxes
shall mean, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient
(or an agent or affiliate thereof) and the jurisdiction imposing such Tax (other than connections arising solely from such Recipient
having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected
a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an
interest in any Loan or Loan Document).

 

Other Lender Provided
Financial Service Products shall mean agreements or other arrangements under which any Lender or Affiliate of a Lender provides
any of the following products or services to any of the Loan Parties: (a) credit cards, (b) credit card processing services, (c)
debit cards, (d) purchase cards, (e) ACH transactions, (f) cash management, including controlled disbursement, accounts or services,
or (g) foreign currency exchange.

 

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Other Taxes shall
mean all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment
made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security
interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed
with respect to an assignment (other than an assignment made pursuant to Section 5.6.2 [Replacement of a Lender]).

 

Participant has the
meaning specified in Section 11.8.4 [Participations].

 

Participant Register
shall have the meaning specified in Section 11.8.4 [Participations].

 

Participation Advance
shall have the meaning specified in Section 2.9.3 [Disbursements, Reimbursement].

 

Payment Date shall
mean the first day of each calendar quarter after the date hereof and on the Expiration Date, Maturity Date, or upon acceleration
of the Notes.

 

Payment In Full and
Paid In Full shall mean payment in full in cash of the Loans and other Obligations hereunder (other than Unasserted Obligations),
termination of the Commitments and expiration or termination of all Letters of Credit or cash collateralization of any unexpired
Letters of Credit.

 

PBGC shall mean the
Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA or any successor.

 

Permitted Acquisition
shall have the meaning assigned to that term in Section 8.2.6 [Liquidations, Mergers, Consolidations, Acquisitions].

 

Permitted Investments
shall mean:

 

(i)          direct
obligations of the United States of America or any agency or instrumentality thereof or obligations backed by the full faith and
credit of the United States of America maturing in twelve (12) months or less from the date of acquisition;

 

(ii)         commercial
paper maturing in 180 days or less rated not lower than A-1, by Standard & Poor's or P-1 by Moody's Investors Service, Inc.
on the date of acquisition;

 

(iii)        demand
deposits, time deposits or certificates of deposit maturing within one year in commercial banks whose obligations are rated A-1,
A or the equivalent or better by Standard & Poor's on the date of acquisition;

 

(iv)        money
market or mutual funds whose investments are limited to those types of investments described in clauses (i) (iii) above;

 

    	19

    	 

    

 

(v)         investments
made under the Cash Management Agreements or under cash management agreements with any other Lenders; and

 

(vi)        Permitted
Acquisitions.

 

Permitted Liens shall
mean:

 

(i)          Liens
for taxes, assessments, or similar charges, incurred in the ordinary course of business and which are not yet due and payable;

 

(ii)         Pledges
or deposits made in the ordinary course of business to secure payment of workmen's compensation, or to participate in any fund
in connection with workmen's compensation, unemployment insurance, old-age pensions or other social security programs;

 

(iii)        Liens
of mechanics, materialmen, warehousemen, carriers, or other like Liens, securing obligations incurred in the ordinary course of
business that are not yet due and payable and Liens of landlords securing obligations to pay lease payments that are not yet due
and payable or in default;

 

(iv)        Good-faith
pledges or deposits made in the ordinary course of business to secure performance of bids, tenders, contracts (other than for
the repayment of borrowed money) or leases, not in excess of the aggregate amount due thereunder, or to secure statutory obligations,
or surety, appeal, indemnity, performance or other similar bonds required in the ordinary course of business;

 

(v)         Encumbrances
consisting of zoning restrictions, easements or other restrictions on the use of real property, none of which materially impairs
the intended use of such property or the value thereof, and none of which is violated in any material respect by existing or proposed
structures or land use;

 

(vi)        Liens,
security interests and mortgages in favor of the Administrative Agent for the benefit of the Lenders and their Affiliates securing
the Obligations (including obligations in connection with Lender Provided Interest Rate Hedges and Other Lender Provided Financial
Service Products);

 

(vii)       Liens
on property leased by any Loan Party (other than Hallador) or Subsidiary of such Loan Party under capital and operating leases;

 

(viii)      Any
Lien existing on the date of this Agreement and described on Schedule 1.1(P), provided that the principal amount
secured thereby is not hereafter increased, and no additional assets become subject to such Lien;

 

(ix)         Purchase
Money Security Interests; provided that the aggregate amount of loans and deferred payments secured by such Purchase Money Security
Interests shall not exceed $5,000,000 (excluding for the purpose of this computation any loans or deferred payments secured by
Liens described on Schedule 1.1(P));

 

    	20

    	 

    

 

(x)        The
following, (A) if the validity or amount thereof is being contested in good faith by appropriate and lawful proceedings diligently
conducted so long as levy and execution thereon either has not commenced or have been stayed and continue to be stayed or (B)
if a final judgment is entered and such judgment is discharged within thirty (30) days of entry, and in either case they do not
in the aggregate, materially impair the ability of any Loan Party to perform its Obligations hereunder or under the other Loan
Documents:

 

(1)         Claims
or Liens for taxes, assessments or charges due and payable and subject to interest or penalty; provided that the applicable Loan
Party maintains such reserves or other appropriate provisions as shall be required by GAAP and pays all such taxes, assessments
or charges forthwith upon the commencement of proceedings to foreclose any such Lien;

 

(2)         Defects
of title to, real or personal property;

 

(3)         Claims
or Liens of mechanics, materialmen, warehousemen, carriers, or other statutory nonconsensual Liens incurred in the ordinary course
of business or the ordinary course of construction, and in either case such claims or liens do not result in a Material Adverse
Change; or

 

(4)         Liens
resulting from final judgments or orders described in Section 9.1.7 [Final Judgments or Orders];

 

(xi)       Judgment
Liens not constituting an Event of Default;

 

(xii)       Liens
securing Indebtedness that will be repaid with the first advances under this Agreement;

 

(xiii)       Liens
existing on any property prior to the acquisition thereof by a Loan Party or any Subsidiary thereof including pursuant to a Permitted
Acquisition; provided that (1) such Lien is not created in contemplation of or in connection with such acquisition
or such Permitted Acquisition, as applicable, (2) such Lien shall not apply to any other property of the Loan Parties or any Subsidiary
thereof and (3) such Lien secures only Indebtedness permitted under Sections 8.2.1(xiii) and 8.2.1(xiv) on the date of such acquisition
or Permitted Acquisition, as the case may be; and

 

(xiv)      Liens
that are replacements of Permitted Liens so long as the replacement Liens only encumber those assets that secured the original
Indebtedness.

 

Permitted Tax Distributions
shall mean any cash distributions made to any equity owners of Borrower, pursuant to Section 7.1 of the Sunrise Coal, LLC
Amended and Restated Operating Agreement dated July 31, 2006.

 

Person shall mean
any individual, corporation, partnership, limited liability company, association, joint-stock company, trust, unincorporated organization,
joint venture, government or political subdivision or agency thereof, or any other entity.

 

    	21

    	 

    

 

Plan shall mean at
any time an employee pension benefit plan (including a Multiple Employer Plan, but not a Multiemployer Plan) which is covered
by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code and either (i) is maintained
by any member of the ERISA Group for employees of any member of the ERISA Group or (ii) has at any time within the preceding five
years been maintained by any entity which was at such time a member of the ERISA Group for employees of any entity which was at
such time a member of the ERISA Group.

 

Pledge Agreement
shall mean the Pledge Agreement in substantially the form of Exhibit 1.1(P) executed and delivered by Hallador to
the Administrative Agent for the benefit of the Lenders.

 

PNC Bank shall mean
PNC Bank, National Association, its successors and assigns.

 

Potential Default
shall mean any event or condition which with notice or passage of time, or both, would constitute an Event of Default.

 

Prime Rate shall
mean the interest rate per annum announced from time to time by the Administrative Agent at its Principal Office as its then prime
rate, which rate may not be the lowest or most favorable rate then being charged commercial borrowers or others by the Administrative
Agent. Any change in the Prime Rate shall take effect at the opening of business on the day such change is announced.

 

Principal Office
shall mean the main banking office of the Administrative Agent in Pittsburgh, Pennsylvania.

 

Prior Security Interest
shall mean a valid and enforceable perfected first-priority security interest under the Uniform Commercial Code in the Collateral
which is subject only to statutory Liens for taxes not yet due and payable or Purchase Money Security Interests.

 

Pro Forma Basis and
Pro Forma Compliance means, for purposes of calculating compliance with the financial covenant set forth in ‎ Section
8.2.16 [Maximum Leverage Ratio] in respect of a Permitted Acquisition or a disposition of all or substantially all of the assets
or Equity Interests of any Subsidiary or of any division or product line or coal or other mine or mineral reserves (together with
a Permitted Acquisition, a “Specified Transaction”), that the following transactions in connection therewith
shall be deemed to have occurred as of the first day of the applicable period of measurement in such covenant: (a) income statement
items (whether positive or negative) attributable to the property or Person subject to such Specified Transaction, (i) in the
case of a disposition of all or substantially all of the assets or Equity Interests of any Subsidiary or of any division or product
line or coal or other mine or mineral reserves, the Person or property so disposed of shall be excluded, and (ii) in the case
of a Permitted Acquisition, the Person or property so acquired shall be included, (b) any retirement of Indebtedness and (c) any
incurrence or assumption of Indebtedness by any Loan Party in connection therewith (and if such Indebtedness has a floating or
formula rate, such Indebtedness shall have an implied rate of interest for the applicable period for purposes of this definition
determined by utilizing the rate which is or would be in effect with respect to such Indebtedness as at the relevant date of determination).

 

    	22

    	 

    

 

Prosperity Mine Add Back
shall mean, as of the Closing Date, an amount equal to $26,028,760.00 (the “Initial Addback Amount”). The
Initial Addback Amount shall be reduced by an amount that is 1/365 of the Initial Addback Amount for each day after the Closing
Date, for a period of one year after the Closing Date.

 

Published Rate shall
mean the rate of interest published each Business Day in The Wall Street Journal "Money Rates" listing
under the caption "London Interbank Offered Rates" for a one month period (or, if no such rate is published therein
for any reason, then the Published Rate shall be the rate at which U.S. dollar deposits are offered by leading banks in the London
interbank deposit market for a one month period as published in another publication selected by the Administrative Agent).

 

Purchase Money Security
Interest shall mean Liens upon tangible personal property securing loans (or capital leases) to any Loan Party (other than
Hallador) or Subsidiary of such Loan Party or deferred payments by such Loan Party or Subsidiary for the purchase of such tangible
personal property.

 

Qualified ECP Loan Party
shall mean each Loan Party that on the Eligibility Date is (a) a corporation, partnership, proprietorship, organization, trust,
or other entity other than a “commodity pool” as defined in Section 1a(10) of the CEA and CFTC regulations thereunder
that has total assets exceeding $10,000,000, or (b) an Eligible Contract Participant that can cause another person to qualify
as an Eligible Contract Participant on the Eligibility Date under Section 1a(18)(A)(v)(II) of the CEA by entering into or otherwise
providing a “letter of credit or keepwell, support, or other agreement” for purposes of Section 1a(18)(A)(v)(II) of
the CEA.

 

Ratable Share
shall mean:

 

(i)          with
respect to a Lender's obligation to make Revolving Credit Loans, participate in Letters of Credit and other Letter of Credit Obligations,
and receive payments, interest, and fees related thereto, the proportion that such Lender's Revolving Credit Commitment bears
to the Revolving Credit Commitments of all of the Lenders, provided however that if the Revolving Credit Commitments have terminated
or expired, the Ratable Shares for purposes of this clause shall be determined based upon the Revolving Credit Commitments most
recently in effect, giving effect to any assignments.

 

(ii)         with
respect to a Lender's obligation to make Term Loans and receive payments, interest, and fees related thereto, the proportion that
such Lender's Term Loans bears to the Term Loans of all of the Lenders.

 

(iii)        with
respect to all other matters as to a particular Lender, the percentage obtained by dividing (i) such Lender's Revolving Credit
Commitment plus Term Loan Commitment, by (ii) the sum of the aggregate amount of the Revolving Credit Commitments plus Term Loans
of all Lenders; provided however that if the Revolving Credit Commitments have terminated or expired, the computation in this
clause shall be determined based upon the Revolving Credit Commitments most recently in effect, giving effect to any assignments,
and not on the current amount of the Revolving Credit Commitments and provided further in the case of Section 2.10 [Defaulting
Lenders] when a Defaulting Lender shall exist, "Ratable Share" shall mean the percentage of the aggregate Commitments
(disregarding any Defaulting Lender's Commitment) represented by such Lender's Commitment.

 

    	23

    	 

    

 

Real Property shall
mean all interests in real property, both owned and leased, and the surface, coal, and mineral rights, interests, licenses, easements,
right of ways, water rights, coal leases, and other interests of each Loan Party (other than Hallador) associated with the properties
described on Schedule 1.1(R), which shall be encumbered by a Mortgage, as described on Schedule 1.1(R).

 

Recipient shall mean
(i) the Administrative Agent, (ii) any Lender and (iii) the Issuing Lender, as applicable.

 

Regulated Substances
shall mean, without limitation, any substance, material or waste, regardless of its form or nature, defined under Environmental
Laws as a "hazardous substance", "pollutant", "pollution", "contaminant", "hazardous
or toxic substance", "extremely hazardous substance", "toxic chemical", "toxic substance",
"toxic waste", "hazardous waste", "special handling waste", "industrial waste", "residual
waste", "solid waste", "municipal waste", "mixed waste", "infectious waste", "chemotherapeutic
waste", "medical waste", "regulated substance" or any other material, substance or waste, regardless
of its form or nature, which otherwise is regulated by Environmental Laws.

 

Reimbursement Obligation
shall have the meaning specified in Section 2.9.3 [Disbursements, Reimbursement].

 

Related Parties shall
mean, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents and advisors
of such Person and of such Person's Affiliates.

 

Relief Proceeding
shall mean any proceeding seeking a decree or order for relief in respect of any Loan Party or Subsidiary of a Loan Party in a
voluntary or involuntary case under any applicable bankruptcy, insolvency, reorganization or other similar law now or hereafter
in effect, or for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator (or similar
official) of any Loan Party or Subsidiary of a Loan Party for any substantial part of its property, or for the winding-up or liquidation
of its affairs, or an assignment for the benefit of its creditors.

 

Reportable Compliance
Event shall mean that any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal complaint or similar
charging instrument, arraigned, or custodially detained in connection with any Anti-Terrorism Law or any predicate crime to any
Anti-Terrorism Law, or has knowledge of facts or circumstances to the effect that it is reasonably likely that any aspect of its
operations is in actual or probable violation of any Anti-Terrorism Law.

 

Required Environmental
Notices shall mean all notices, reports, plans, forms or other filings which are required pursuant to Environmental Laws or
Required Environmental Permits to be submitted to an Official Body or which otherwise must be maintained.

 

    	24

    	 

    

 

Required Environmental
Permits shall mean all permits, licenses, bonds, consents, approvals or authorizations required under Environmental Laws to
own, occupy or maintain the Real Property.

 

Required Interest Rate
Hedge shall have the meaning ascribed to such term in Section 8.1.15 [Required Interest Rate Hedge] herein.

 

Required
Lenders shall mean

 

(A)         If
there exists fewer than three (3) Lenders, all Lenders (other than any Defaulting Lender), and

 

(B)         If
there exist three (3) or more Lenders, any group of Lenders (excluding any Defaulting Lender) if the sum of the Loans (excluding
the Swing Loans), Reimbursement Obligations and Letter of Credit Borrowings of such Lenders (excluding any Defaulting Lender)
then outstanding aggregates greater than 50% of the total principal amount of all of the Loans (excluding the Swing Loans), Reimbursement
Obligations and Letter of Credit Borrowings of all of the Lenders (excluding any Defaulting Lender) then outstanding.

 

Required Mining Permits
shall mean all permits, licenses, authorizations, plans, approvals and bonds necessary under the Environmental Laws for the
Loan Parties or any Subsidiary to continue to conduct coal mining and related operations on, in or under the Real Property, and
any and all other mining properties owned or leased by any such Loan Party or Subsidiary (collectively "Mining Property")
substantially in the manner as such operations had been authorized immediately prior to Borrower's or such Subsidiary's acquisition
of its interests in the Real Property and as may be necessary for Borrower or such Subsidiary to conduct coal mining and related
operations on, in or under the Mining Property as described in any plan of operation.

 

Required Share shall
have the meaning assigned to such term in Section 5.11 [Settlement Date Procedures].

 

Revolver Lenders
shall mean the financial institutions named on Schedule 1.1(B) and their respective successors and assigns as permitted hereunder
and designated as having a Revolving Credit Loan Commitment, each of which is referred to herein as a Revolver Lender.

 

Revolving Credit Commitment
shall mean, as to any Lender at any time, the amount initially set forth opposite its name on Schedule 1.1(B) in the
column labeled "Amount of Commitment for Revolving Credit Loans," as such Commitment is thereafter assigned or modified,
including any amounts by which such Lender agrees to increase its Commitment pursuant to Section 2.11 [Increase in Revolving Credit
Commitments] and Revolving Credit Commitments shall mean the aggregate Revolving Credit Commitments of all of the Lenders.

 

Revolving Credit Loans
shall mean collectively and Revolving Credit Loan shall mean separately all Revolving Credit Loans or any Revolving
Credit Loan made by the Lenders or one of the Lenders to the Borrower pursuant to Section 2.1 [Revolving Credit Commitments] or
2.9.3 [Disbursements, Reimbursement].

 

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Revolving Facility Usage
shall mean at any time the sum of the outstanding Revolving Credit Loans, Swing Loans and the Letter of Credit Obligations.

 

Sanctioned Country
shall mean a country subject to a sanctions program maintained under any Anti-Terrorism Law.

 

Sanctioned Person
shall mean any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated, prohibited,
sanctioned or debarred person, group, regime, entity or thing, or subject to any limitations or prohibitions (including but not
limited to the blocking of property or rejection of transactions), under any Anti-Terrorism Law.

 

Savoy shall mean
Savoy Energy, L.P.

 

Security Agreement
shall mean the Security Agreement in substantially the form of Exhibit 1.1(S) executed and delivered by each of the Loan
Parties (other than Hallador) to the Administrative Agent for the benefit of the Lenders.

 

Security Documents
shall mean the Security Agreement, the Pledge Agreement, the Collateral Assignment, the Mortgages, deeds of trust, and all other
documents, instruments, and agreements sufficient to provide the Administrative Agent for the benefit of the Lenders with a first
priority perfected Lien, subject only to Permitted Liens, on the Collateral.

 

Settlement Date shall
mean any Business Day on which the Administrative Agent elects to effect settlement pursuant to Section 5.11 [Settlement Date
Procedures].

 

Solvent shall mean,
with respect to any Person on a particular date, that on such date (i) the fair value of the property of such Person is greater
than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person, (ii) the present
fair saleable value of the assets of such Person is not less than the amount that will be required to pay the probable liability
of such Person on its debts as they become absolute and matured, (iii) such Person is able to realize upon its assets and pay
its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business,
(iv) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person's ability
to pay as such debts and liabilities mature, and (v) such Person is not engaged in business or a transaction, and is not about
to engage in business or a transaction, for which such Person's property would constitute unreasonably small capital after giving
due consideration to the prevailing practice in the industry in which such Person is engaged. In computing the amount of contingent
liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts
and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured
liability.

 

Standard & Poor's
shall mean Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc.

 

Statements shall
have the meaning specified in Section 6.1.6(i) [Historical Statements].

 

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Stock Purchase Agreement
shall mean that certain Stock Purchase Agreement dated as of June 30, 2014, by and among Borrower, Vectren Utility Services,
Inc., and Vectren pursuant to which Borrower is acquiring 100% of the stock of Vectren.

 

Subsidiary of any
Person at any time shall mean any corporation, trust, partnership, any limited liability company or other business entity (i)
of which 50% or more of the outstanding voting securities or other interests normally entitled to vote for the election of one
or more directors or trustees (regardless of any contingency which does or may suspend or dilute the voting rights) is at such
time owned directly or indirectly by such Person or one or more of such Person's Subsidiaries, or (ii) which is controlled or
capable of being controlled by such Person or one or more of such Person's Subsidiaries.

 

Subsidiary Equity Interests
shall have the meaning specified in Section 6.1.2 [Subsidiaries and Owners; Investment Companies].

 

Swap shall mean any
"swap" as defined in Section 1a(47) of the CEA and regulations thereunder, other than (a) a swap entered into, or subject
to the rules of, a board of trade designated as a contract market under Section 5 of the CEA, or (b) a commodity option entered
into pursuant to CFTC Regulation 32.3(a).

 

Swap Obligation shall
mean any obligation to pay or perform under any agreement, contract or transaction that constitutes a Swap which is also a Lender
Provided Interest Rate Hedge.

 

Swing Loan Commitment
shall mean PNC Bank's commitment to make Swing Loans to the Borrower pursuant to Section 2.1.2 [Swing Loan Commitment] hereof
in an aggregate principal amount up to $20,000,000.

 

Swing Loan Lender
shall mean PNC Bank, in its capacity as a lender of Swing Loans.

 

Swing Loan Note shall
mean the Swing Loan Note of the Borrower in the form of Exhibit 1.1(N)(2) evidencing the Swing Loans, together with all amendments,
extensions, renewals, replacements, refinancings or refundings thereof in whole or in part.

 

Swing Loan Request
shall mean a request for Swing Loans made in accordance with Section 2.5.2 [Swing Loan Request] hereof.

 

Swing Loans shall
mean collectively and Swing Loan shall mean separately all Swing Loans or any Swing Loan made by PNC Bank to the Borrower
pursuant to Section 2.1.2 [Swing Loan Commitment] hereof.

 

Taxes shall mean
all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholdings), assessments, fees
or other charges imposed by any Official Body, including any interest, additions to tax or penalties applicable thereto.

 

Term Loan shall have
the meaning specified in Section 3.1 [Term Loan Commitments]; Term Loans shall mean collectively all of the Term Loans.

 

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Term Loan Commitment
shall mean, as to any Lender at any time, the amount initially set forth opposite its name on Schedule 1.1(B) in the column
labeled "Amount of Commitment for Term Loans," as such Commitment is thereafter assigned or modified and Term Loan Commitments
shall mean the aggregate Term Loan Commitments of all of the Lenders.

 

Term Loan Lenders
shall mean the financial institutions named on Schedule 1.1 (B) (as amended or supplemented from time to time) and their respective
successors and assigns as permitted hereunder and designated as having a Term Loan Commitment, each of which is referred to herein
as a Term Loan Lender.

 

Transaction shall
mean the acquisition of 100% of the stock of Vectren pursuant to the terms and conditions contained in the Stock Purchase Agreement
and the other Acquisition Documents.

 

UCP shall have the
meaning specified in Section 11.11.1 [Governing Law].

 

Unasserted Obligations
shall mean contingent indemnification obligations (other than Letter of Credit Obligations) under the Loan Documents to the
extent no claim giving rise thereto has been asserted.

 

USA Patriot Act shall
mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Public Law 107-56, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.

 

U.S. Person shall
mean any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

 

U.S. Tax Compliance Certificate
shall have the meaning specified in Section 5.9.7 [Status of Lenders].

 

Vectren shall mean
Vectren Fuels, Inc., an Indiana corporation.

 

Weighted Average Life
to Maturity means, when applied to any Indebtedness on any date, the number of years obtained by dividing: (a) the sum of
the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other
required payments of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated
to the nearest one-twelfth) that will elapse between such date and the making of such payment; by (b) the then outstanding principal
amount of such Indebtedness. 

 

Withholding Agent
shall mean any Loan Party and the Administrative Agent.

 

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1.2           Construction. Unless
the context of this Agreement otherwise clearly requires, the following rules of construction shall apply to this Agreement and
each of the other Loan Documents: (i) references to the plural include the singular, the plural, the part and the whole and the
words "include," "includes" and "including" shall be deemed to be followed by the phrase "without
limitation"; (ii) the words "hereof," "herein," "hereunder," "hereto" and similar
terms in this Agreement or any other Loan Document refer to this Agreement or such other Loan Document as a whole; (iii) article,
section, subsection, clause, schedule and exhibit references are to this Agreement or other Loan Document, as the case may be,
unless otherwise specified; (iv) reference to any Person includes such Person's successors and assigns; (v) reference to any agreement,
including this Agreement and any other Loan Document together with the schedules and exhibits hereto or thereto, document or instrument
means such agreement, document or instrument as amended, modified, replaced, substituted for, superseded or restated; (vi) relative
to the determination of any period of time, "from" means "from and including," "to" means "to
but excluding," and "through" means "through and including"; (vii) the words "asset" and "property"
shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights, (viii) section headings herein and in each other Loan Document are included
for convenience and shall not affect the interpretation of this Agreement or such Loan Document, and (ix) unless otherwise specified,
all references herein to times of day shall be references to Eastern Standard Time or Eastern Daylight Time, as applicable.

 

1.3           Accounting
Principles; Changes in GAAP. Except as otherwise provided in this Agreement, all computations and determinations as to
accounting or financial matters and all financial statements to be delivered pursuant to this Agreement shall be made and prepared
in accordance with GAAP (including principles of consolidation where appropriate), and all accounting or financial terms shall
have the meanings ascribed to such terms by GAAP; provided, however, that all accounting terms used in Section 8.2
[Negative Covenants] (and all defined terms used in the definition of any accounting term used in Section 8.2 [Negative Covenants]
shall have the meaning given to such terms (and defined terms) under GAAP as in effect on the date hereof applied on a basis consistent
with those used in preparing Statements referred to in Section 6.1.6(i) [Historical Statements]. Notwithstanding the foregoing,
if the Borrower notifies the Administrative Agent in writing that the Borrower wishes to amend any financial covenant in Section
8.2 [Negative Covenants] of this Agreement, any related definition and/or the definition of the term Leverage Ratio for purposes
of interest and Letter of Credit Fee determinations to eliminate the effect of any change in GAAP occurring after the Closing
Date on the operation of such financial covenants and/or interest or Letter of Credit Fee determinations (or if the Administrative
Agent notifies the Borrower in writing that the Required Lenders wish to amend any financial covenant in Section 8.2 [Negative
Covenants], any related definition and/or the definition of the term Leverage Ratio for purposes of interest and Letter of Credit
Fee determinations to eliminate the effect of any such change in GAAP), then the Administrative Agent, the Lenders and the Borrower
shall negotiate in good faith to amend such ratios or requirements to preserve the original intent thereof in light of such change
in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, the Loan Parties' compliance with
such covenants and/or the definition of the term Leverage Ratio for purposes of interest and Letter of Credit Fee determinations
shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such covenants or definitions are amended in a manner satisfactory to the Borrower and the Required
Lenders, and the Loan Parties shall provide to the Administrative Agent, when they deliver their financial statements pursuant
to Sections 8.3.1 [Quarterly Financial Statements] and 8.3.2 [Annual Financial Statements] of this Agreement, such reconciliation
statements as shall be reasonably requested by the Administrative Agent.

 

2.       REVOLVING
CREDIT AND SWING LOAN FACILITIES

 

2.1       Revolving
Credit Commitments.

 

2.1.1           Revolving
Credit Loans. Subject to the terms and conditions hereof and relying upon the representations and warranties herein set
forth, each Lender severally agrees to make Revolving Credit Loans to the Borrower at any time or from time to time on or after
the date hereof to the Expiration Date; provided that after giving effect to such Loan (i) the aggregate amount of Revolving
Credit Loans from such Lender shall not exceed such Lender's Revolving Credit Commitment minus such Lender's Ratable Share of
the outstanding Swing Loans and Letter of Credit Obligations and (ii) the Revolving Facility Usage shall not exceed the Revolving
Credit Commitments. Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrower
may borrow, repay and reborrow pursuant to this Section 2.1.

 

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2.1.2           Swing
Loan Commitment. Subject to the terms and conditions hereof and relying upon the representations and warranties herein
set forth, and in order to facilitate loans and repayments between Settlement Dates, PNC Bank may, at its option, cancelable at
any time for any reason whatsoever, make swing loans (the "Swing Loans") to the Borrower at any time or from
time to time after the date hereof to, but not including, the Expiration Date, in an aggregate principal amount up to but not
in excess of the Swing Loan Commitment, provided that the aggregate principal amount of PNC Bank's Swing Loans and the Revolving
Credit Loans of all the Lenders at any one time outstanding shall not exceed the Revolving Credit Commitments of all the Lenders.
Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrower may borrow, repay and
reborrow pursuant to this Section 2.1.2.

 

2.2      Nature
of Lenders' Obligations with Respect to Revolving Credit Loans. Each Lender shall be obligated to participate in each
request for Revolving Credit Loans pursuant to Section 2.5 [Revolving Credit Loan Requests; Swing Loan Requests] in accordance
with its Ratable Share. The aggregate of each Lender's Revolving Credit Loans outstanding hereunder to the Borrower at any time
shall never exceed its Revolving Credit Commitment minus its Ratable Share of the outstanding Swing Loans and Letter of Credit
Obligations. The obligations of each Lender hereunder are several. The failure of any Lender to perform its obligations hereunder
shall not affect the Obligations of the Borrower to any other party nor shall any other party be liable for the failure of such
Lender to perform its obligations hereunder. The Lenders shall have no obligation to make Revolving Credit Loans hereunder on
or after the Expiration Date.

 

2.3      Commitment
Fees. Accruing from the date hereof until the Expiration Date, the Borrower agrees to pay to the Administrative Agent
for the account of each Lender according to its Ratable Share, a nonrefundable commitment fee (the "Commitment Fee")
equal to the Applicable Commitment Fee Rate (computed on the basis of a year of 365 or 366 days, as the case may be, and actual
days elapsed) times the average daily difference between the amount of (i) the Revolving Credit Commitments and (ii) the Revolving
Facility Usage (provided however, that solely in connection with determining the share of each Lender in the Commitment Fee, the
Revolving Facility Usage with respect to the portion of the Commitment Fee allocated to PNC shall include the full amount of the
outstanding Swing Loans, and with respect to the portion of the Commitment Fee allocated by the Administrative Agent to all of
the Lenders other than PNC, such portion of the Commitment Fee shall be calculated (according to each such Lender's Ratable Share)
as if the Revolving Facility Usage excludes the outstanding Swing Loans); provided, further, that any Commitment
Fee accrued with respect to the Revolving Credit Commitment of a Defaulting Lender during the period prior to the time such Lender
became a Defaulting Lender and unpaid at such time shall not be payable by the Borrower so long as such Lender shall be a Defaulting
Lender except to the extent that such Commitment Fee shall otherwise have been due and payable by the Borrower prior to such time;
and provided further that no Commitment Fee shall accrue with respect to the Revolving Credit Commitment of a Defaulting Lender
so long as such Lender shall be a Defaulting Lender. Subject to the proviso in the directly preceding sentence, all Commitment
Fees shall be payable in arrears on each Payment Date.

 

2.4      Reduction
or Termination of Revolving Credit Commitments. The Borrower shall have the right, upon not less than three (3) Business
Days' notice to the Administrative Agent, from time to time, to terminate or reduce the aggregate amount of the Revolving Credit
Commitments (ratably among the Lenders in proportion to their Ratable Shares); provided that no such reduction of Revolving Credit
Commitments shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Credit Loans made on the
effective date thereof, the Revolving Facility Usage would exceed the aggregate Revolving Credit Commitments of the Lenders. Any
such reduction shall be in an amount equal to $10,000,000, or a whole multiple thereof, and shall reduce permanently the Revolving
Credit Commitments then in effect. Any such termination or reduction shall be accompanied by prepayment of the Notes, together
with outstanding Commitment Fees, and the full amount of interest accrued on the principal sum to be prepaid (and all amounts
referred to in Section 5.10 [Indemnity] hereof) to the extent necessary to cause the aggregate Revolving Facility Usage after
giving effect to such prepayments to be equal to or less than the Revolving Credit Commitments as so reduced or terminated. Any
notice to terminate or reduce the Revolving Credit Commitments under this Section 2.4 shall be irrevocable.

 

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2.5      Revolving
Credit Loan Requests; Swing Loan Requests.

 

2.5.1           Revolving
Credit Loan Requests. Except as otherwise provided herein (and subject to Section 4.6 [Selection of Interest Rate Options]),
the Borrower may from time to time prior to the Expiration Date request the Lenders to make Revolving Credit Loans, or renew or
convert the Interest Rate Option applicable to existing Revolving Credit Loans pursuant to Section 4.3 [Interest Periods], by
delivering to the Administrative Agent, not later than 10:00 a.m., (i) three (3) Business Days prior to the proposed Borrowing
Date with respect to the making of Revolving Credit Loans to which the LIBOR Rate Option applies or the conversion to or the renewal
of the LIBOR Rate Option for any Loans; and (ii) one (1) Business Day prior to either the proposed Borrowing Date with respect
to the making of a Revolving Credit Loan to which the Base Rate Option applies or the last day of the preceding Interest Period
with respect to the conversion to the Base Rate Option for any Loan, of a duly completed request therefor substantially in the
form of Exhibit 2.5.1 or a request by telephone immediately confirmed in writing by letter, facsimile or telex in such
form (each, a "Loan Request"), it being understood that the Administrative Agent may rely on the authority of
any individual making such a telephonic request without the necessity of receipt of such written confirmation. Each Loan Request
shall be irrevocable and shall specify the aggregate amount of the proposed Loans comprising each Borrowing Tranche, and, if applicable,
the Interest Period, which amounts shall be in integral multiples of $500,000 and not less than $1,000,000 for each Borrowing
Tranche under the LIBOR Rate Option and in integral multiples of $100,000 and not less than the lesser of $500,000 or the maximum
amount available for Borrowing Tranches under the Base Rate Option.

 

2.5.2      Swing
Loan Requests. Except as otherwise provided herein, the Borrower may from time to time prior to the Expiration Date request
PNC Bank to make Swing Loans by delivery to PNC Bank not later than 12:00 p.m. Pittsburgh time on the proposed Borrowing Date
of a duly completed request therefor substantially in the form of Exhibit 2.5.2 hereto or a request by telephone immediately confirmed
in writing by letter, facsimile or telex (each, a "Swing Loan Request"), it being understood that the Administrative
Agent may rely on the authority of any individual making such a telephonic request without the necessity of receipt of such written
confirmation. Each Swing Loan Request shall be irrevocable and shall specify the proposed Borrowing Date and the principal amount
of such Swing Loan, which shall be not less than $100,000.

 

2.6      Making
Revolving Credit Loans and Swing Loans; Presumptions by the Administrative Agent; Repayment of Revolving Credit Loans; Borrowings
to Repay Swing Loans.

 

2.6.1      Making
Revolving Credit Loans. The Administrative Agent shall, promptly after receipt by it of a Loan Request pursuant to Section
2.5 [Revolving Credit Loan Requests; Swing Loan Requests], notify the Lenders of its receipt of such Loan Request specifying the
information provided by the Borrower and the apportionment among the Lenders of the requested Revolving Credit Loans as determined
by the Administrative Agent in accordance with Section 2.2 [Nature of Lenders' Obligations with Respect to Revolving Credit Loans].
Each Lender shall remit the principal amount of each Revolving Credit Loan to the Administrative Agent such that the Administrative
Agent is able to, and the Administrative Agent shall, to the extent the Lenders have made funds available to it for such purpose
and subject to Section 7.2 [Each Loan or Letter of Credit], fund such Revolving Credit Loans to the Borrower in U.S. Dollars and
immediately available funds at the Principal Office prior to 2:00 p.m., on the applicable Borrowing Date; provided that
if any Lender fails to remit such funds to the Administrative Agent in a timely manner, the Administrative Agent may elect in
its sole discretion to fund with its own funds the Revolving Credit Loans of such Lender on such Borrowing Date, and such Lender
shall be subject to the repayment obligation in Section 2.6.2 [Presumptions by the Administrative Agent].

 

2.6.2      Presumptions
by the Administrative Agent. Unless the Administrative Agent shall have received notice from a Lender prior to the proposed
date of any Loan that such Lender will not make available to the Administrative Agent such Lender's share of such Loan, the Administrative
Agent may assume that such Lender has made such share available on such date in accordance with Section 2.6.1 [Making Revolving
Credit Loans] and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event,
if a Lender has not in fact made its share of the applicable Loan available to the Administrative Agent, then the applicable Lender
and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest
thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment
to the Administrative Agent, at (i) in the case of a payment to be made by such Lender, the greater of the Federal Funds Effective
Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation and
(ii) in the case of a payment to be made by the Borrower, the interest rate applicable to Loans under the Base Rate Option. If
such Lender pays its share of the applicable Loan to the Administrative Agent, then the amount so paid shall constitute such Lender's
Loan. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have
failed to make such payment to the Administrative Agent.

 

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2.6.3      Making
Swing Loans. So long as PNC Bank elects to make Swing Loans, PNC Bank shall, after receipt by it of a Swing Loan Request
pursuant to Section 2.5.2, [Swing Loan Requests] fund such Swing Loan to the Borrower in U.S. Dollars and immediately available
funds at the Principal Office prior to 2:00 p.m. Pittsburgh time on the Borrowing Date.

 

2.6.4      Repayment
of Revolving Credit Loans. The Borrower shall repay the Revolving Credit Loans together with all outstanding interest
thereon on the Expiration Date.

 

2.6.5      Borrowings
to Repay Swing Loans. PNC Bank may, at its option, exercisable at any time for any reason whatsoever, demand repayment
of the Swing Loans, and each Lender shall make a Revolving Credit Loan in an amount equal to such Lenders' Ratable Share of the
aggregate principal amount of the outstanding Swing Loans, plus, if PNC Bank so requests, accrued interest thereon, provided
that no Lender shall be obligated in any event to make Revolving Credit Loans in excess of its Revolving Credit Commitment
minus its Ratable Share of Letter of Credit Obligations. Revolving Credit Loans made pursuant to the preceding sentence shall
bear interest at the Base Rate Option and shall be deemed to have been properly requested in accordance with Section 2.5.1 [Revolving
Credit Loan Requests] without regard to any of the requirements of that provision. PNC Bank shall provide notice to the Lenders
(which may be telephonic or written notice by letter, facsimile or telex) that such Revolving Credit Loans are to be made under
this Section 2.6.5 and of the apportionment among the Lenders, and the Lenders shall be unconditionally obligated to fund such
Revolving Credit Loans (whether or not the conditions specified in Section 2.5.1 [Revolving Credit Loan Requests] are then satisfied)
by the time PNC Bank so requests, which shall not be earlier than 3:00 p.m. Pittsburgh time on the Business Day next after the
date the Lenders receive such notice from PNC Bank.

 

2.6.6      Swing
Loans Under Cash Management Agreements. In addition to making Swing Loans pursuant to the foregoing provisions of Section
2.6.3 [Making Swing Loans], without the requirement for a specific request from the Borrower pursuant to Section 2.5.2 [Swing
Loan Requests], PNC Bank may make Swing Loans to the Borrower in accordance with the provisions of the agreements between the
Borrower and PNC Bank relating to the Borrower's deposit, sweep and other accounts at PNC Bank and related arrangements and agreements
regarding the management and investment of the Borrower's cash assets as in effect from time to time (the "Cash Management
Agreements") to the extent of the daily aggregate net negative balance in the Borrower's accounts which are subject to
the provisions of the Cash Management Agreements. Swing Loans made pursuant to this Section 2.6.6 in accordance with the provisions
of the Cash Management Agreements shall (i) be subject to the limitations as to aggregate amount set forth in Section 2.1.2 [Swing
Loan Commitment], (ii) not be subject to the limitations as to individual amount set forth in Section 2.5.2 [Swing Loan Requests],
(iii) be payable by the Borrower, both as to principal and interest, at the rates and times set forth in the Cash Management Agreements
(but in no event later than the Expiration Date), (iv) not be made at any time after PNC Bank has received written notice of the
occurrence of an Event of Default and so long as such Event of Default shall continue to exist, or, unless consented to by the
Required Lenders, a Potential Default and so long as such shall continue to exist, (v) if not repaid by the Borrower in accordance
with the provisions of the Cash Management Agreements, be subject to each Lender's obligation pursuant to Section 2.6.5 [Borrowings
to Repay Swing Loans], and (vi) except as provided in the foregoing subsections (i) through (v), be subject to all of the terms
and conditions of this Section 2.6.6.

 

2.7       Notes. The
Obligation of the Borrower to repay the aggregate unpaid principal amount of the Revolving Credit Loans and Swing Loans made to
it by each Lender, together with interest thereon, shall be evidenced by a revolving credit Note and a swing Note, dated the Closing
Date payable to the order of such Lender in a face amount equal to the Revolving Credit Commitment or Swing Loan Commitment, as
applicable, of such Lender.

 

2.8       Use
of Proceeds. The proceeds of the Loans shall be used to refinance existing Indebtedness, finance the Transaction, and
for general corporate purposes including ongoing working capital, capital expenditures, Permitted Acquisitions and to pay fees
and expenses related to the closing of this Agreement and the Transaction.

 

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2.9       Letter
of Credit Subfacility.

 

2.9.1      Issuance
of Letters of Credit. On the Closing Date, the outstanding letters of credit previously issued by any Lender under the
2012 Credit Agreement that are set forth on Schedule 2.9 (the "Existing Letters of Credit") will automatically,
without any action on the part of any Person, be deemed to be Letters of Credit issued hereunder for the account of the Borrower
for all purposes of this Agreement and the other Loan Documents. Borrower may at any time prior to the Expiration Date request
the issuance of a standby or trade letter of credit (each a "Letter of Credit") on behalf of itself or another
Loan Party (other than Hallador), or the amendment or extension of an existing Letter of Credit, by delivering or having such
other Loan Party deliver to the Issuing Lender (with a copy to the Administrative Agent) a completed application and agreement
for letters of credit, or request for such amendment or extension, as applicable, in such form as the Issuing Lender may specify
from time to time by no later than 10:00 a.m. at least five (5) Business Days, or such shorter period as may be agreed to by the
Issuing Lender, in advance of the proposed date of issuance. Promptly after receipt of any letter of credit application, the Issuing
Lender shall confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy
of such Letter of Credit application and if not, such Issuing Lender will provide Administrative Agent with a copy thereof.

 

Unless the Issuing Lender
has received notice from any Lender, Administrative Agent or any Loan Party (other than Hallador), at least one day prior to the
requested date of issuance, amendment or extension of the applicable Letter of Credit, that one or more applicable conditions
in Section 7 [Conditions of Lending and Issuance of Letters of Credit] is not satisfied, then, subject to the terms and conditions
hereof and in reliance on the agreements of the other Lenders set forth in this Section 2.9, the Issuing Lender or any of the
Issuing Lender's Affiliates will issue a Letter of Credit or agree to such amendment or extension, provided that each Letter of
Credit shall (A) have a maximum maturity of twelve (12) months from the date of issuance, and (B) in no event expire later than
the Expiration Date and provided further that in no event shall (i) the Letter of Credit Obligations exceed, at any one time,
$35,000,000 (the "Letter of Credit Sublimit") or (ii) the Revolving Facility Usage exceed, at any one time, the
Revolving Credit Commitments. Each request by the Borrower for the issuance, amendment or extension of a Letter of Credit shall
be deemed to be a representation by the Borrower that it shall be in compliance with the preceding sentence and with Section 7
[Conditions of Lending and Issuance of Letters of Credit] after giving effect to the requested issuance, amendment or extension
of such Letter of Credit. Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to the beneficiary
thereof, the applicable Issuing Lender will also deliver to Borrower and Administrative Agent a true and complete copy of such
Letter of Credit or amendment.

 

Notwithstanding Section
2.9.1, the Issuing Lender shall not be under any obligation to issue any Letter of Credit if (i) any order, judgment or decree
of any Official Body or arbitrator shall by its terms purport to enjoin or restrain the Issuing Lender from issuing the Letter
of Credit, or any Law applicable to the Issuing Lender or any request or directive (whether or not having the force of law) from
any Official Body with jurisdiction over the Issuing Lender shall prohibit, or request that the Issuing Lender refrain from, the
issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon the Issuing Lender with respect
to the Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Lender is not otherwise compensated
hereunder) not in effect on the Closing Date, or shall impose upon the Issuing Lender any unreimbursed loss, cost or expense which
was not applicable on the Closing Date and which the Issuing Lender in good faith deems material to it, or (ii) the issuance of
the Letter of Credit would violate one or more policies of the Issuing Lender applicable to letters of credit generally.

 

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2.9.2      Letter
of Credit Fees. The Borrower shall pay (i) to the Administrative Agent for the ratable account of the Lenders a fee (the
"Letter of Credit Fee") equal to the Applicable Letter of Credit Fee Rate, and (ii) to the Issuing Lender for
its own account a fronting fee equal to 0.25% per annum (in each case computed on the basis of a year of 360 days and actual days
elapsed), which fees shall be computed on the daily average Letter of Credit Obligations and shall be payable quarterly in arrears
on each Payment Date following issuance of each Letter of Credit. The Borrower shall also pay to the Issuing Lender for the Issuing
Lender's sole account the Issuing Lender's then in effect customary fees and administrative expenses payable with respect to the
Letters of Credit as the Issuing Lender may generally charge or incur from time to time in connection with the issuance, maintenance,
amendment (if any), assignment or transfer (if any), negotiation, and administration of Letters of Credit.

 

2.9.3      Disbursements,
Reimbursement. Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably
and unconditionally agrees to, purchase from the Issuing Lender a participation in such Letter of Credit (including the Existing
Letters of Credit) and each drawing thereunder in an amount equal to such Lender's Ratable Share of the maximum amount available
to be drawn under such Letter of Credit and the amount of such drawing, respectively.

 

2.9.3.1           In
the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee thereof, the Issuing Lender will
promptly notify the Borrower and the Administrative Agent thereof. Provided that it shall have received such notice, the Borrower
shall reimburse (such obligation to reimburse the Issuing Lender shall sometimes be referred to as a "Reimbursement Obligation")
the Issuing Lender prior to 12:00 noon, Pittsburgh time on each date that an amount is paid by the Issuing Lender under any Letter
of Credit (each such date, a "Drawing Date") by paying to the Administrative Agent for the account of the Issuing
Lender an amount equal to the amount so paid by the Issuing Lender. In the event the Borrower fails to reimburse the Issuing Lender
(through the Administrative Agent) for the full amount of any drawing under any Letter of Credit by 12:00 noon, Pittsburgh time,
on the Drawing Date, the Administrative Agent will promptly notify each Lender thereof, and the Borrower shall be deemed to have
requested that Revolving Credit Loans be made by the Lenders under the Base Rate Option to be disbursed on the Drawing Date under
such Letter of Credit, subject to the amount of the unutilized portion of the Revolving Credit Commitment and subject to the conditions
set forth in Section 7.2 [Each Loan or Letter of Credit] other than any notice requirements. Any notice given by the Administrative
Agent or Issuing Lender pursuant to this Section 2.9.3.1 may be oral if immediately confirmed in writing; provided that the lack
of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

 

2.9.3.2           Each
Lender shall upon any notice pursuant to Section 2.9.3.1 make available to the Administrative Agent for the account of the Issuing
Lender an amount in immediately available funds equal to its Ratable Share of the amount of the drawing, whereupon the participating
Lenders shall (subject to Section 2.9.3 [Disbursement; Reimbursement]) each be deemed to have made a Revolving Credit Loan under
the Base Rate Option to the Borrower in that amount. If any Lender so notified fails to make available to the Administrative Agent
for the account of the Issuing Lender the amount of such Lender's Ratable Share of such amount by no later than 2:00 p.m., Pittsburgh
time on the Drawing Date, then interest shall accrue on such Lender's obligation to make such payment, from the Drawing Date to
the date on which such Lender makes such payment (i) at a rate per annum equal to the Federal Funds Effective Rate during the
first three (3) days following the Drawing Date and (ii) at a rate per annum equal to the rate applicable to Loans under the Base
Rate Option on and after the fourth day following the Drawing Date. The Administrative Agent and the Issuing Lender will promptly
give notice (as described in Section 2.9.3.1 above) of the occurrence of the Drawing Date, but failure of the Administrative Agent
or the Issuing Lender to give any such notice on the Drawing Date or in sufficient time to enable any Lender to effect such payment
on such date shall not relieve such Lender from its obligation under this Section 2.9.3.2.

 

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2.9.3.3           With
respect to any unreimbursed drawing that is not converted into Revolving Credit Loans under the Base Rate Option to the Borrower
in whole or in part as contemplated by Section 2.9.3.1, because of the Borrower's failure to satisfy the conditions set forth
in Section 7.2 [Each Loan or Letter of Credit] other than any notice requirements, or for any other reason, the Borrower shall
be deemed to have incurred from the Issuing Lender a borrowing (each a "Letter of Credit Borrowing") in the amount
of such drawing. Such Letter of Credit Borrowing shall be due and payable on demand (together with interest) and shall bear interest
at the rate per annum applicable to the Revolving Credit Loans under the Base Rate Option. Each Lender's payment to the Administrative
Agent for the account of the Issuing Lender pursuant to Section 2.9.3 [Disbursements, Reimbursement] shall be deemed to be a payment
in respect of its participation in such Letter of Credit Borrowing (each a "Participation Advance") from such
Lender in satisfaction of its participation obligation under this Section 2.9.3.

 

2.9.4       Repayment
of Participation Advances.

 

2.9.4.1           Upon
(and only upon) receipt by the Administrative Agent for the account of the Issuing Lender of immediately available funds from
the Borrower (i) in reimbursement of any payment made by the Issuing Lender under the Letter of Credit with respect to which any
Lender has made a Participation Advance to the Administrative Agent, or (ii) in payment of interest on such a payment made by
the Issuing Lender under such a Letter of Credit, the Administrative Agent on behalf of the Issuing Lender will pay to each Lender,
in the same funds as those received by the Administrative Agent, the amount of such Lender's Ratable Share of such funds, except
the Administrative Agent shall retain for the account of the Issuing Lender the amount of the Ratable Share of such funds of any
Lender that did not make a Participation Advance in respect of such payment by the Issuing Lender.

 

2.9.4.2           If
the Administrative Agent is required at any time to return to any Loan Party, or to a trustee, receiver, liquidator, custodian,
or any official in any Insolvency Proceeding, any portion of any payment made by any Loan Party to the Administrative Agent for
the account of the Issuing Lender pursuant to this Section in reimbursement of a payment made under the Letter of Credit or interest
or fee thereon, each Lender shall, on demand of the Administrative Agent, forthwith return to the Administrative Agent for the
account of the Issuing Lender the amount of its Ratable Share of any amounts so returned by the Administrative Agent plus interest
thereon from the date such demand is made to the date such amounts are returned by such Lender to the Administrative Agent, at
a rate per annum equal to the Federal Funds Effective Rate in effect from time to time.

 

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2.9.5      Documentation. Each
Loan Party agrees to be bound by the terms of the Issuing Lender's application and agreement for letters of credit and the Issuing
Lender's written regulations and customary practices relating to letters of credit, though such interpretation may be different
from such Loan Party's own. In the event of a conflict between such application or agreement and this Agreement, this Agreement
shall govern. It is understood and agreed that, except in the case of gross negligence or willful misconduct, the Issuing Lender
shall not be liable for any error, negligence and/or mistakes, whether of omission or commission, in following any Loan Party's
instructions or those contained in the Letters of Credit or any modifications, amendments or supplements thereto.

 

2.9.6      Determinations
to Honor Drawing Requests. In determining whether to honor any request for drawing under any Letter of Credit by the
beneficiary thereof, the Issuing Lender shall be responsible only to determine that the documents and certificates required to
be delivered under such Letter of Credit have been delivered and that they comply on their face with the requirements of such
Letter of Credit.

 

2.9.7      Nature
of Participation and Reimbursement Obligations. Each Lender's obligation in accordance with this Agreement to make the
Revolving Credit Loans or Participation Advances, as contemplated by Section 2.9.3 [Disbursements, Reimbursement], as a result
of a drawing under a Letter of Credit, and the Obligations of the Borrower to reimburse the Issuing Lender upon a draw under a
Letter of Credit, shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms
of this Section 2.9 under all circumstances, including the following circumstances:

 

(i)         any
set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Issuing Lender or any of its
Affiliates, the Borrower or any other Person for any reason whatsoever, or which any Loan Party may have against the Issuing Lender
or any of its Affiliates, any Lender or any other Person for any reason whatsoever;

 

(ii)         the
failure of any Loan Party or any other Person to comply, in connection with a Letter of Credit Borrowing, with the conditions
set forth in Sections 2.1 [Revolving Credit Commitments], 2.5 [Revolving Credit Loan Requests; Swing Loan Requests], 2.6 [Making
Revolving Credit Loans and Swing Loans; Etc.] or 7.2 [Each Loan or Letter of Credit] or as otherwise set forth in this Agreement
for the making of a Revolving Credit Loan, it being acknowledged that such conditions are not required for the making of a Letter
of Credit Borrowing and the obligation of the Lenders to make Participation Advances under Section 2.9.3 [Disbursements, Reimbursement];

 

(iii)        any
lack of validity or enforceability of any Letter of Credit;

 

(iv)        any
claim of breach of warranty that might be made by any Loan Party or any Lender against any beneficiary of a Letter of Credit,
or the existence of any claim, set-off, recoupment, counterclaim, crossclaim, defense or other right which any Loan Party or any
Lender may have at any time against a beneficiary, successor beneficiary any transferee or assignee of any Letter of Credit or
the proceeds thereof (or any Persons for whom any such transferee may be acting), the Issuing Lender or its Affiliates or any
Lender or any other Person, whether in connection with this Agreement, the transactions contemplated herein or any unrelated transaction
(including any underlying transaction between any Loan Party or Subsidiaries of a Loan Party and the beneficiary for which any
Letter of Credit was procured);

 

(v)         the
lack of power or authority of any signer of (or any defect in or forgery of any signature or endorsement on) or the form of or
lack of validity, sufficiency, accuracy, enforceability or genuineness of any draft, demand, instrument, certificate or other
document presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in connection with any Letter
of Credit, or the transport of any property or provision of services relating to a Letter of Credit, in each case even if the
Issuing Lender or any of its Affiliates has been notified thereof;

 

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(vi)        payment
by the Issuing Lender or any of its Affiliates under any Letter of Credit against presentation of a demand, draft or certificate
or other document which does not comply with the terms of such Letter of Credit;

 

(vii)       the
solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit, or any other Person having a role in any transaction
or obligation relating to a Letter of Credit, or the existence, nature, quality, quantity, condition, value or other characteristic
of any property or services relating to a Letter of Credit;

 

(viii)      any
failure by the Issuing Lender or any of its Affiliates to issue any Letter of Credit in the form requested by any Loan Party,
unless the Issuing Lender has received written notice from such Loan Party of such failure within three Business Days after the
Issuing Lender shall have furnished such Loan Party and the Administrative Agent a copy of such Letter of Credit and such error
is material and no drawing has been made thereon prior to receipt of such notice;

 

(ix)         any
adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Loan Party
or Subsidiaries of a Loan Party;

 

(x)          any
breach of this Agreement or any other Loan Document by any party thereto;

 

(xi)         the
occurrence or continuance of an Insolvency Proceeding with respect to any Loan Party;

 

(xii)        the
fact that an Event of Default or a Potential Default shall have occurred and be continuing;

 

(xiii)       the
fact that the Expiration Date shall have passed or this Agreement or the Commitments hereunder shall have been terminated; and

 

(xiv)      any
other circumstance or happening whatsoever, whether or not similar to any of the foregoing.

 

2.9.8      Indemnity. The
Borrower hereby agrees to protect, indemnify, pay and save harmless the Issuing Lender and any of its Affiliates that has issued
a Letter of Credit from and against any and all claims, demands, liabilities, damages, taxes, penalties, interest, judgments,
losses, costs, charges and expenses (including reasonable fees, expenses and disbursements of counsel and allocated costs of internal
counsel) which the Issuing Lender or any of its Affiliates may incur or be subject to as a consequence, direct or indirect, of
the issuance of any Letter of Credit, other than as a result of (A) the gross negligence or willful misconduct of the Issuing
Lender as determined by a final non-appealable judgment of a court of competent jurisdiction or (B) the wrongful dishonor by the
Issuing Lender or any of Issuing Lender's Affiliates of a proper demand for payment made under any Letter of Credit, except if
such dishonor resulted from any act or omission, whether rightful or wrongful, of any present or future de jure or de facto government
or Official Body.

 

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2.9.9      Liability
for Acts and Omissions. As between any Loan Party and the Issuing Lender, or the Issuing Lender's Affiliates, such Loan
Party assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such
Letters of Credit. In furtherance and not in limitation of the foregoing, the Issuing Lender shall not be responsible for any
of the following, including any losses or damages to any Loan Party or other Person or property relating therefrom: (i) the form,
validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application
for an issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient,
inaccurate, fraudulent or forged (even if the Issuing Lender or its Affiliates shall have been notified thereof); (ii) the validity
or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason;
(iii) the failure of the beneficiary of any such Letter of Credit, or any other party to which such Letter of Credit may be transferred,
to comply fully with any conditions required in order to draw upon such Letter of Credit or any other claim of any Loan Party
against any beneficiary of such Letter of Credit, or any such transferee, or any dispute between or among any Loan Party and any
beneficiary of any Letter of Credit or any such transferee; (iv) errors, omissions, interruptions or delays in transmission or
delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation
of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of
Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond the control
of the Issuing Lender or the its Affiliates, as applicable, including any act or omission of any Official Body, and none of the
above shall affect or impair, or prevent the vesting of, any of the Issuing Lender's or its Affiliates rights or powers hereunder.
Nothing in the preceding sentence shall relieve the Issuing Lender from liability for the Issuing Lender's gross negligence or
willful misconduct in connection with actions or omissions described in such clauses (i) through (viii) of such sentence. In no
event shall the Issuing Lender or its Affiliates be liable to any Loan Party for any indirect, consequential, incidental, punitive,
exemplary or special damages or expenses (including without limitation attorneys' fees), or for any damages resulting from any
change in the value of any property relating to a Letter of Credit.

 

Without limiting the generality
of the foregoing, the Issuing Lender and each of its Affiliates (i) may rely on any oral or other communication believed in good
faith by the Issuing Lender or such Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of
Credit, (ii) may honor any presentation if the documents presented appear on their face substantially to comply with the terms
and conditions of the relevant Letter of Credit; (iii) may honor a previously dishonored presentation under a Letter of Credit,
whether such dishonor was pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise, and
shall be entitled to reimbursement to the same extent as if such presentation had initially been honored, together with any interest
paid by the Issuing Lender or its Affiliate; (iv) may honor any drawing that is payable upon presentation of a statement advising
negotiation or payment, upon receipt of such statement (even if such statement indicates that a draft or other document is being
delivered separately), and shall not be liable for any failure of any such draft or other document to arrive, or to conform in
any way with the relevant Letter of Credit; (v) may pay any paying or negotiating bank claiming that it rightfully honored under
the laws or practices of the place where such bank is located; and (vi) may settle or adjust any claim or demand made on the Issuing
Lender or its Affiliate in any way related to any order issued at the applicant's request to an air carrier, a letter of guarantee
or of indemnity issued to a carrier or any similar document (each an "Order") and honor any drawing in connection
with any Letter of Credit that is the subject of such Order, notwithstanding that any drafts or other documents presented in connection
with such Letter of Credit fail to conform in any way with such Letter of Credit.

 

In furtherance and extension
and not in limitation of the specific provisions set forth above, any action taken or omitted by the Issuing Lender or its Affiliates
under or in connection with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken
or omitted in good faith, shall not put the Issuing Lender or its Affiliates under any resulting liability to the Borrower or
any Lender.

 

2.9.10         Issuing
Lender Reporting Requirements. Each Issuing Lender shall, on the first Business Day of each month, provide to Administrative
Agent and Borrower a schedule of the Letters of Credit issued by it, in form and substance satisfactory to Administrative Agent,
showing the date of issuance of each Letter of Credit, the account party, the original face amount (if any), and the expiration
date of any Letter of Credit outstanding at any time during the preceding month, and any other information relating to such Letter
of Credit that the Administrative Agent may request.

 

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2.10         Defaulting
Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender,
then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

(i)         fees
shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.3 [Commitment
Fees];

 

(ii)        the
Commitment and outstanding Loans of such Defaulting Lender shall not be included in determining whether the Required Lenders have
taken or may take any action hereunder (including any consent to any amendment, waiver or other modification pursuant to Section
11.1 [Modifications, Amendments or Waivers]); provided, that this clause (ii) shall not apply to the vote of a Defaulting Lender
in the case of an amendment, waiver or other modification requiring the consent of such Lender or each Lender directly affected
thereby;

 

(iii)       if
any Swing Loans are outstanding or any Letter of Credit Obligations exist at the time such Lender becomes a Defaulting Lender,
then:

 

(a)          all
or any part of the outstanding Swing Loans and Letter of Credit Obligations of such Defaulting Lender shall be reallocated among
the non-Defaulting Lenders in accordance with their respective Ratable Shares but only to the extent that (x) the Revolving Facility
Usage does not exceed the total of all non-Defaulting Lenders' Revolving Credit Commitments, and (y) no Potential Default or Event
of Default has occurred and is continuing at such time;

 

(b)          if
the reallocation described in clause (a) above cannot, or can only partially, be effected, the Borrower shall within one Business
Day following notice by the Administrative Agent (x) first, prepay such outstanding Swing Loans, and (y) second, cash collateralize
for the benefit of the Issuing Lender the Borrower's obligations corresponding to such Defaulting Lender's Letter of Credit Obligations
(after giving effect to any partial reallocation pursuant to clause (a) above) in a deposit account held at the Administrative
Agent for so long as such Letter of Credit Obligations are outstanding;

 

(c)          if
the Borrower cash collateralizes any portion of such Defaulting Lender's Letter of Credit Obligations pursuant to clause (b) above,
the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.9.2 [Letter of Credit Fees]
with respect to such Defaulting Lender's Letter of Credit Obligations during the period such Defaulting Lender's Letter of Credit
Obligations are cash collateralized;

 

(d)          if
the Letter of Credit Obligations of the non-Defaulting Lenders are reallocated pursuant to clause (a) above, then the fees payable
to the Lenders pursuant to Section 2.9.2 [Letter of Credit Fees] shall be adjusted in accordance with such non-Defaulting Lenders'
Ratable Share; and

 

(e)          if
all or any portion of such Defaulting Lender's Letter of Credit Obligations are neither reallocated nor cash collateralized pursuant
to clause (a) or (b) above, then, without prejudice to any rights or remedies of the Issuing Lender or any other Lender hereunder,
all Letter of Credit Fees payable under Section 2.9.2 [Letter of Credit Fees] with respect to such Defaulting Lender's Letter
of Credit Obligations shall be payable to the Issuing Lender (and not to such Defaulting Lender) until and to the extent that
such Letter of Credit Obligations are reallocated and/or cash collateralized; and

 

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(iv)        so
long as such Lender is a Defaulting Lender, PNC Bank shall not be required to fund any Swing Loans and the Issuing Lender shall
not be required to issue, amend or increase any Letter of Credit, unless the Issuing Lender is satisfied that the related exposure
and the Defaulting Lender's then outstanding Letter of Credit Obligations will be 100% covered by the Revolving Credit Commitments
of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 2.10(iii), and
participating interests in any newly made Swing Loan or any newly issued or increased Letter of Credit shall be allocated among
non-Defaulting Lenders in a manner consistent with Section 2.10(iii)(a) (and such Defaulting Lender shall not participate therein).

 

If (i) a Bankruptcy Event with respect to
a parent company of any Lender shall occur following the date hereof and for so long as such event shall continue, or (ii) PNC
Bank or the Issuing Lender has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more
other agreements in which such Lender commits to extend credit, PNC Bank shall not be required to fund any Swing Loan and the
Issuing Lender shall not be required to issue, amend or increase any Letter of Credit, unless PNC Bank or the Issuing Lender,
as the case may be, shall have entered into arrangements with the Borrower or such Lender, satisfactory to PNC Bank or the Issuing
Lender, as the case may be, to defease any risk to it in respect of such Lender hereunder.

 

In the event that the Administrative Agent,
the Borrower, PNC Bank and the Issuing Lender agree in writing that a Defaulting Lender has adequately remedied all matters that
caused such Lender to be a Defaulting Lender, then the Administrative Agent will so notify the parties hereto, and the Ratable
Share of the Swing Loans and Letter of Credit Obligations of the Lenders shall be readjusted to reflect the inclusion of such
Lender's Commitment, and on such date such Lender shall purchase at par such of the Loans of the other Lenders (other than Swing
Loans) as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance
with its Ratable Share.

 

2.11     Increase
in Revolving Credit Commitments and Term Loans.

 

(i)          Increasing
Lenders and New Lenders. The Borrower may make a one-time request that (1) the current Lenders increase their Revolving Credit
Commitments or provide one or more additional tranches of Term Loans (each an "Incremental
Term Loan" and, collectively, the "Incremental Term Loans"), or
(2) one or more new lenders (each a "New Lender") join this Agreement and provide
a Commitment hereunder, in each case subject to the following terms and conditions (any current Revolver Lender or Term Loan Lender
which elects to increase its Revolving Credit Commitment or Term Loan Commitment, as applicable, shall be referred to as an "Increasing
Lender"):

 

(a)          No
Obligation to Increase. No Lender shall be obligated to (x) increase its Revolving Credit Commitment and/or Term Loan Commitment
and any increase in the Revolving Credit Commitment and/or Term Loan Commitment by any current Lender shall be in the sole discretion
of such Lender or (y) provide an Incremental Term Loan and any Incremental Term Loan provided by any Lender shall be in the sole
discretion of such Lender. 

 

(b)          Defaults.
There shall exist no Event of Default or Potential Default on the effective date of such increase after giving effect to such
increase.

 

(c)          Compliance.
The Borrower shall certify: (a) that it shall be in Pro Forma Compliance with the covenants contained in Section 8.2.15 [Minimum
Fixed Charge Coverage Ratio] and Section 8.2.16 [Maximum Leverage Ratio] by delivering at least five (5) Business Days prior to
the issuance of any new Loans or increase in Commitments, a calculation evidencing such compliance.

 

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(d)         Aggregate
Commitments. The increase in the Commitments shall not be more than $50,000,000 in the aggregate, and after giving effect
to such increase, the total Commitments shall not exceed $475,000,000.

 

(e)         Terms
of Incremental Term Loans. (i) The Incremental Term Loans (A) shall rank pari passu in right of payment and of security with
the initial Term Loans incurred on the Closing Date (the "Initial Term Loans"), (B) shall not mature earlier
than the Initial Term Loans, and (C) shall not have a shorter Weighted Average Life to Maturity than the Initial Term Loans.

 

(f)          Minimum
Commitments. The minimum amount of the increase in the Revolving Credit Commitments and Term Loan Commitments shall be $5,000,000.

 

(g)         Resolutions;
Opinion. The Loan Parties shall deliver to the Administrative Agent on or before the effective date of such increase the following
documents in a form reasonably acceptable to the Administrative Agent: (1) certifications of their corporate secretaries with
attached resolutions certifying that the increase in the Commitments has been approved by such Loan Parties, and (2) an opinion
of counsel addressed to the Administrative Agent and the Lenders addressing the authorization and execution of the Loan Documents
by, and enforceability of the Loan Documents against, the Loan Parties.

 

(h)          Notes.
The Borrower shall execute and deliver (1) to each Increasing Lender a replacement revolving credit Note and/or term Note reflecting
the new amount of such Increasing Lender's Commitment after giving effect to the increase (and the prior Note issued to such Increasing
Lender shall be deemed to be terminated and returned to the Borrower as soon as possible) and (2) to each New Lender a revolving
credit Note and/or term Note reflecting the amount of such New Lender's Commitments.

 

(i)          Approval
of New Lenders. Any New Lender shall be subject to the approval of the Administrative Agent (such approval not to be unreasonably
withheld or delayed).

 

(j)          Increasing
Lenders. Each Increasing Lender shall confirm its agreement to increase its Commitments pursuant to an acknowledgement in
a form acceptable to the Administrative Agent, signed by it and the Borrower and delivered to the Administrative Agent at least
five (5) days before the effective date of such increase.

 

(k)          New
Lenders—Joinder. Each New Lender shall execute a lender joinder in substantially the form of Exhibit 2.11 pursuant
to which such New Lender shall join and become a party to this Agreement and the other Loan Documents with a Commitment in the
amount set forth in such lender joinder.

 

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(l)          Amendment.
Incremental Term Loans shall be effected by an amendment to this Agreement setting forth the terms of the Incremental Term Loans
executed by (x) the Administrative Agent, (y) each Lender or New Lender agreeing to provide any portion of such Incremental Term
Loan and (z) the Loan Parties, and reaffirmations of the Loan Documents executed by the Loan Parties, in each case in form and
substance reasonably satisfactory to the Administrative Agent. Such amendment may, without the consent of any other Lenders, effect
such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of
the Administrative Agent and the Borrower, to effect the provisions of this Section 2.11.

 

(ii)        Treatment
of Outstanding Loans and Letters of Credit.

 

(a)          Repayment
of Outstanding Loans; Borrowing of New Loans. On the effective date of such increase, the Borrower shall repay all Revolving
Credit Loans then outstanding, subject to the Borrower's indemnity obligations under Section 5.10 [Indemnity]; provided that it
may borrow new Revolving Credit Loans with a Borrowing Date on such date. Each of the Lenders shall participate in any new Revolving
Credit Loans made on or after such date in accordance with their respective Ratable Shares after giving effect to the increase
in Revolving Credit Commitments contemplated by this Section 2.11.

 

(b)          Outstanding
Letters of Credit. Repayment of Outstanding Loans; Borrowing of New Loans. On the effective date of such increase, each Increasing
Lender and each New Lender (i) will be deemed to have purchased a participation in each then outstanding Letter of Credit equal
to its Ratable Share of such Letter of Credit and the participation of each other Lender in such Letter of Credit shall be adjusted
accordingly and (ii) will acquire its Ratable Share of all outstanding Participation Advances.

 

3.          TERM
LOANS

 

3.1           Term
Loan Commitments. Subject to the terms and conditions hereof, and relying upon the representations and warranties herein
set forth, each Lender severally agrees to make a term loan (the "Term Loan") to the Borrower on the Closing
Date in such principal amount as the Borrower shall request up to, but not exceeding such Lender's Term Loan Commitment.

 

3.2           Nature
of Lenders' Obligations with Respect to Term Loans; Repayment Terms. The obligations of each Lender to make a Term Loan
to the Borrower shall be in the proportion that such Lender's Term Loan Commitment bears to the Term Loan Commitments of all Lenders
to the Borrower, but each Lender's Term Loan to the Borrower shall never exceed its Term Loan Commitment. The failure of any Lender
to make a Term Loan shall not relieve any other Lender of its obligations to make a Term Loan nor shall it impose any additional
liability on any other Lender hereunder. The Lenders shall have no obligation to make Term Loans hereunder after the Closing Date.
The Term Loan Commitments are not revolving credit commitments, and the Borrower shall not have the right to borrow, repay and
reborrow under Section 3.1 [Term Loan Commitments]. The Term Loans shall be payable as follows:

 

	Fiscal Quarters Ending	 	Amount Equal to the Applicable Percentage Set Forth Below of the Initial Term
    Loan
	 	 	 
	September 30, 2014 through June 30, 2015	 	2.5%
	 	 	 
	September 30, 2015 through June 30, 2017	 	3.75%
	 	 	 
	September 30, 2017 through June 30, 2019	 	5.00%
	 	 	 
	Maturity Date	 	Any and all outstanding principal and interest

 

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3.3       Incremental
Term Loans. In the event that the Borrower exercises its option to increase the Term Loans or incur Incremental Term
Loans pursuant to Section 2.11 [Increase in Commitments], the repayment amounts shall be increased to reflect the repayment of
any new Term Loans or Incremental Term Loans.

 

4.          INTEREST
RATES

 

4.1       Interest
Rate Options. The Borrower shall pay interest in respect of the outstanding unpaid principal amount of the Loans as selected
by it from the Base Rate Option or LIBOR Rate Option set forth below applicable to the Loans, it being understood that, subject
to the provisions of this Agreement, the Borrower may select different Interest Rate Options and different Interest Periods to
apply simultaneously to the Loans comprising different Borrowing Tranches and may convert to or renew one or more Interest Rate
Options with respect to all or any portion of the Loans comprising any Borrowing Tranche; provided that there shall not
be at any one time outstanding more than five (5) Borrowing Tranches in the aggregate among all of the Loans and provided
further that if an Event of Default or Potential Default exists and is continuing, the Borrower may not request, convert
to, or renew the LIBOR Rate Option for any Loans and the Required Lenders may demand that all existing Borrowing Tranches bearing
interest under the LIBOR Rate Option shall be converted immediately to the Base Rate Option, subject to the obligation of the
Borrower to pay any indemnity under Section 5.10 [Indemnity] in connection with such conversion. If at any time the designated
rate applicable to any Loan made by any Lender exceeds such Lender's highest lawful rate, the rate of interest on such Lender's
Loan shall be limited to such Lender's highest lawful rate.

 

4.1.1      Revolving
Credit Interest Rate Options; Swing Line Interest Rate. The Borrower shall have the right to select from the following
Interest Rate Options applicable to the Revolving Credit Loans:

 

(i)          Revolving
Credit Base Rate Option: A fluctuating rate per annum (computed on the basis of a year of 365 or 366 days, as the case may
be, and actual days elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate to change automatically from
time to time effective as of the effective date of each change in the Base Rate; or

 

(ii)         Revolving
Credit LIBOR Rate Option: A rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to
the LIBOR Rate as determined for each applicable Interest Period plus the Applicable Margin.

 

Subject to Section 4.4 [Interest After Default],
only the Base Rate Option applicable to Revolving Credit Loans shall apply to the Swing Loans.

 

4.1.2      Term
Loan Interest Rate Options. The Borrower shall have the right to select from the following Interest Rate Options applicable
to the Term Loans:

 

(i)          Term
Loan Base Rate Option: A fluctuating rate per annum (computed on the basis of a year of 365 or 366 days, as the case may be, and
actual days elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate to change automatically from time to
time effective as of the effective date of each change in the Base Rate; or

 

(ii)         Term
Loan LIBOR Rate Option: A rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to the LIBOR
Rate as determined for each applicable Interest Period plus the Applicable Margin.

 

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4.2       Rate
Quotations. The Borrower may call the Administrative Agent on or before the date on which a Loan Request is to be delivered
to receive an indication of the rates then in effect, but it is acknowledged that such projection shall not be binding on the
Administrative Agent or the Lenders nor affect the rate of interest which thereafter is actually in effect when the election is
made.

 

4.3       Interest
Periods. At any time when the Borrower shall select, convert to or renew a LIBOR Rate Option, the Borrower shall notify
the Administrative Agent thereof at least three (3) Business Days prior to the effective date of such LIBOR Rate Option by delivering
a Loan Request. The notice shall specify an Interest Period during which such Interest Rate Option shall apply. Notwithstanding
the preceding sentence, the following provisions shall apply to any selection of, renewal of, or conversion to a LIBOR Rate Option:

 

4.3.1      Amount
of Borrowing Tranche. Each Borrowing Tranche of Loans under the LIBOR Rate Option shall be in integral multiples of $500,000
and not less than $1,000,000; and

 

4.3.2      Renewals. In
the case of the renewal of a LIBOR Rate Option at the end of an Interest Period, the first day of the new Interest Period shall
be the last day of the preceding Interest Period, without duplication in payment of interest for such day.

 

4.4       Interest
After Default. To the extent permitted by Law, upon the occurrence of an Event of Default and until such time such Event
of Default shall have been cured or waived, at the discretion of the Administrative Agent or upon written demand by the Required
Lenders to the Administrative Agent:

 

4.4.1   
  Letter of Credit Fees, Interest Rate. The Letter of Credit Fees and the rate of interest for each
Loan otherwise applicable pursuant to Section 2.9.2 [Letter of Credit Fees] or Section 4.1 [Interest Rate Options],
respectively, shall be increased by 2.0% per annum;

 

4.4.2      Other
Obligations. Each other Obligation hereunder if not paid when due shall bear interest at a rate per annum equal to the
sum of the rate of interest applicable under the Base Rate Option plus an additional 2.0% per annum from the time such Obligation
becomes due and payable and until it is Paid In Full; and

 

4.4.3      Acknowledgment. The
Borrower acknowledges that the increase in rates referred to in this Section 4.4 reflects, among other things, the fact that such
Loans or other amounts have become a substantially greater risk given their default status and that the Lenders are entitled to
additional compensation for such risk; and all such interest shall be payable by Borrower upon demand by Administrative Agent.

 

4.5       LIBOR
Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available.

 

4.5.1           Unascertainable. If
on any date on which a LIBOR Rate would otherwise be determined, the Administrative Agent shall have determined that:

 

(i)          adequate
and reasonable means do not exist for ascertaining such LIBOR Rate, or

 

(ii)         a
contingency has occurred which materially and adversely affects the London interbank market relating to the establishment of the
LIBOR Rate,

 

then the Administrative Agent shall have
the rights specified in Section 4.5.3 [Administrative Agent's and Lender's Rights].

 

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4.5.2           Illegality;
Increased Costs; Deposits Not Available. If at any time any Lender shall have determined that:

 

(i)         the
making, maintenance or funding of any Loan to which a LIBOR Rate Option applies has been made impracticable or unlawful by compliance
by such Lender in good faith with any Law or any interpretation or application thereof by any Official Body or with any request
or directive of any such Official Body (whether or not having the force of Law), or

 

(ii)         such
LIBOR Rate Option will not adequately and fairly reflect the cost to such Lender of the establishment or maintenance of any such
Loan, or

 

(iii)        after
making all reasonable efforts, deposits of the relevant amount in Dollars for the relevant Interest Period for a Loan, or to banks
generally, to which a LIBOR Rate Option applies, respectively, are not available to such Lender with respect to such Loan, or
to banks generally, in the interbank Eurodollar market,

 

then the Administrative Agent shall have the
rights specified in Section 4.5.3 [Administrative Agent's and Lender's Rights].

 

4.5.3           Administrative
Agent's and Lender's Rights. In the case of any event specified in Section 4.5.1 [Unascertainable] above, the Administrative
Agent shall promptly so notify the Lenders and the Borrower thereof, and in the case of an event specified in Section 4.5.2 [Illegality;
Increased Costs; Deposits Not Available] above, such Lender shall promptly so notify the Administrative Agent and endorse a certificate
to such notice as to the specific circumstances of such notice, and the Administrative Agent shall promptly send copies of such
notice and certificate to the other Lenders and the Borrower. Upon such date as shall be specified in such notice (which shall
not be earlier than the date such notice is given), the obligation of (A) the Lenders, in the case of such notice given by the
Administrative Agent, or (B) such Lender, in the case of such notice given by such Lender, to allow the Borrower to select, convert
to or renew a LIBOR Rate Option shall be suspended until the Administrative Agent shall have later notified the Borrower, or such
Lender shall have later notified the Administrative Agent, of the Administrative Agent's or such Lender's, as the case may be,
determination that the circumstances giving rise to such previous determination no longer exist. If at any time the Administrative
Agent makes a determination under Section 4.5.1 [Unascertainable] and the Borrower has previously notified the Administrative
Agent of its selection of, conversion to or renewal of a LIBOR Rate Option and such Interest Rate Option has not yet gone into
effect, such notification shall be deemed to provide for selection of, conversion to or renewal of the Base Rate Option otherwise
available with respect to such Loans. If any Lender notifies the Administrative Agent of a determination under Section 4.5.2 [Illegality;
Increased Costs; Deposits Not Available], the Borrower shall, subject to the Borrower's indemnification Obligations under Section
5.10 [Indemnity], as to any Loan of the Lender to which a LIBOR Rate Option applies, on the date specified in such notice either
convert such Loan to the Base Rate Option otherwise available with respect to such Loan or prepay such Loan in accordance with
Section 5.6 [Voluntary Prepayments]. Absent due notice from the Borrower of conversion or prepayment, such Loan shall automatically
be converted to the Base Rate Option otherwise available with respect to such Loan upon such specified date.

 

4.6           Selection
of Interest Rate Options. If the Borrower fails to select a new Interest Period to apply to any Borrowing Tranche of
Loans under the LIBOR Rate Option at the expiration of an existing Interest Period applicable to such Borrowing Tranche in accordance
with the provisions of Section 4.3 [Interest Periods], the Borrower shall be deemed to have converted such Borrowing Tranche to
the Base Rate Option, as applicable to Revolving Credit Loans or Term Loans as the case may be, commencing upon the last day of
the existing Interest Period.

 

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5.          PAYMENTS

 

5.1       Payments. All
payments and prepayments to be made in respect of principal, interest, Commitment Fees, Letter of Credit Fees, Administrative
Agent's Fee or other fees or amounts due from the Borrower hereunder shall be payable prior to 1:00 p.m. on the date when due
without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the Borrower, and without
set-off, counterclaim or other deduction of any nature, and an action therefor shall immediately accrue. Such payments shall be
made to the Administrative Agent at the Principal Office for the account of PNC Bank with respect to the Swing Loans and for the
ratable accounts of the Lenders with respect to the Revolving Credit Loans or Term Loans in U.S. Dollars and in immediately available
funds, and the Administrative Agent shall promptly distribute such amounts to the Lenders in immediately available funds; provided
that in the event payments are received by 1:00 p.m. by the Administrative Agent with respect to the Loans and such payments are
not distributed to the Lenders on the same day received by the Administrative Agent, the Administrative Agent shall pay the Lenders
interest at the Federal Funds Effective Rate with respect to the amount of such payments for each day held by the Administrative
Agent and not distributed to the Lenders. The Administrative Agent's and each Lender's statement of account, ledger or other relevant
record shall, in the absence of manifest error, be conclusive as the statement of the amount of principal of and interest on the
Loans and other amounts owing under this Agreement and shall be deemed an "account stated".

 

5.2       Pro
Rata Treatment of Lenders. Each borrowing of Revolving Credit Loans shall be allocated to each Lender according to its
Ratable Share, and each selection of, conversion to or renewal of any Interest Rate Option and each payment or prepayment by the
Borrower with respect to principal, interest, Commitment Fees, Letter of Credit Fees, or other fees (except for the Administrative
Agent's Fee and the Issuing Lender's fronting fee) shall (except as otherwise may be provided with respect to a Defaulting Lender
and except as provided in Section 4.5.3 [Administrative Agent's and Lender's Rights] in the case of an event specified in Sections
4.5 [LIBOR Rate Unascertainable; Etc.], 5.6.2 [Replacement of a Lender] or 5.8 [Increased Costs]) be payable ratably among the
Lenders entitled to such payment in accordance with the amount of principal, interest, Commitment Fees and Letter of Credit Fees,
as set forth in this Agreement. Notwithstanding any of the foregoing, each borrowing or payment or prepayment by the Borrower
of principal, interest, fees or other amounts from the Borrower with respect to Swing Loans shall be made by or to PNC Bank according
to Section 2.6.5 [Borrowings to Repay Swing Loans].

 

5.3       Sharing
of Payments by Lenders. If any Lender shall, by exercising any right of setoff, counterclaim or banker's lien, by receipt
of voluntary payment, by realization upon security, or by any other non-pro rata source, obtain payment in respect of any principal
of or interest on any of its Loans or other obligations hereunder resulting in such Lender's receiving payment of a proportion
of the aggregate amount of its Loans and accrued interest thereon or other such obligations greater than the pro rata share of
the amount such Lender is entitled thereto, then the Lender receiving such greater proportion shall (a) notify the Administrative
Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other
Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other
amounts owing them, provided that:

 

(i)          if
any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations
shall be rescinded and the purchase price restored to the extent of such recovery, together with interest or other amounts, if
any, required by Law (including court order) to be paid by the Lender or the holder making such purchase; and

 

(ii)         the
provisions of this Section 5.3 shall not be construed to apply to (x) any payment made by the Loan Parties pursuant to and in
accordance with the express terms of the Loan Documents or (y) any payment obtained by a Lender as consideration for the assignment
of or sale of a participation in any of its Loans or Participation Advances to any assignee or participant, other than to the
Borrower or any Subsidiary thereof (as to which the provisions of this Section 5.3 shall apply).

 

Each Loan Party consents to the foregoing
and agrees, to the extent it may effectively do so under applicable Law, that any Lender acquiring a participation pursuant to
the foregoing arrangements may exercise against each Loan Party rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of each Loan Party in the amount of such participation.

 

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5.4       Presumptions
by Administrative Agent. Unless the Administrative Agent shall have received notice from the Borrower prior to the date
on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Lender hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date
in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Lender, as the case
may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing
Lender, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed
to such Lender or the Issuing Lender, with interest thereon, for each day from and including the date such amount is distributed
to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and
a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

 

5.5       Interest
Payment Dates. Interest on Loans to which the Base Rate Option applies shall be due and payable in arrears on each Payment
Date. Interest on Loans to which the LIBOR Rate Option applies shall be due and payable on the last day of each Interest Period
for those Loans and, if such Interest Period is longer than three (3) Months, also on the 90th day of such Interest Period. Interest
on mandatory prepayments of principal under Section 5.7 [Mandatory Prepayments] shall be due on the date such mandatory prepayment
is due. Interest on the principal amount of each Loan or other monetary Obligation shall be due and payable on demand after such
principal amount or other monetary Obligation becomes due and payable (whether on the stated Expiration Date, Maturity Date, upon
acceleration or otherwise).

 

5.6       Voluntary
Prepayments.

 

5.6.1      Right
to Prepay. The Borrower shall have the right at its option from time to time to prepay the Loans in whole or part without
premium or penalty (except as provided in Section 5.6.2 [Replacement of a Lender] below, in Section 5.8 [Increased Costs] and
Section 5.10 [Indemnity]). Whenever the Borrower desires to prepay any part of the Loans, it shall provide a prepayment notice
to the Administrative Agent by 1:00 p.m. at least one (1) Business Day prior to the date of prepayment of the Revolving Credit
Loans or Term Loans or no later than 1:00 p.m., Pittsburgh time, on the date of prepayment of Swing Loans, setting forth the following
information:

 

(i)        the
date, which shall be a Business Day, on which the proposed prepayment is to be made;

 

(a)          a
statement indicating the application of the prepayment between the Revolving Credit Loans, Term Loans and Swing Loans;

 

(b)          with
respect to any prepayment of any Loans subject to the LIBOR Rate Option, a statement indicating the application of the prepayment
between the LIBOR Rate Option tranches; and

 

(c)          the
total principal amount of such prepayment, which shall not be less than: (i) $100,000 for any Swing Loan, or (ii) $100,000 for
any Revolving Credit Loan.

 

All prepayment notices shall
be irrevocable. The principal amount of the Loans for which a prepayment notice is given, together with interest on such principal
amount except with respect to Loans to which the Base Rate Option applies, shall be due and payable on the date specified in such
prepayment notice as the date on which the proposed prepayment is to be made. All Term Loan prepayments permitted pursuant to
this Section 5.6.1 [Right to Prepay] shall be applied to the unpaid installments of principal of the Term Loans in the inverse
order of scheduled maturities. Except as provided in Section 4.5.3 [Administrative Agent's and Lender's Rights], if the Borrower
prepays a Loan but fails to specify the applicable Borrowing Tranche which the Borrower is prepaying, the prepayment shall be
applied first to Loans to which the Base Rate Option applies, then to Loans to which the LIBOR Rate Option applies. Any prepayment
hereunder shall be subject to the Borrower's Obligation to indemnify the Lenders under Section 5.10 [Indemnity].

 

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5.6.2      Replacement
of a Lender. In the event any Lender (i) gives notice under Section 4.5 [LIBOR Rate Unascertainable, Etc.], (ii) requests
compensation under Section 5.8 [Increased Costs], or requires the Borrower to pay any Indemnified Taxes or additional amount to
any Lender or any Official Body for the account of any Lender pursuant to Section 5.9 [Taxes], (iii) is a Defaulting Lender, (iv)
becomes subject to the control of an Official Body (other than normal and customary supervision), or (v) is a Non-Consenting Lender
referred to in Section 11.1 [Modifications, Amendments or Waivers] then in any such event the Borrower may, at its sole expense,
upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section 11.8 [Successors and Assigns]), all of its
interests, rights (other than existing rights to payment pursuant to Sections 5.8 [Increased Costs] or 5.9 [Taxes]) and obligations
under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment), provided that:

 

(i)          the
Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 11.8 [Successors and Assigns];

 

(ii)         such
Lender shall have received payment of an amount equal to the outstanding principal of its Loans and Participation Advances, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any
amounts under Section 5.10 [Indemnity]) from the assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts);

 

(iii)        in
the case of any such assignment resulting from a claim for compensation under Section 5.8.1 [Increased Costs Generally] or payments
required to be made pursuant to Section 5.9 [Taxes], such assignment will result in a reduction in such compensation or payments
thereafter; and

 

(iv)        such
assignment does not conflict with applicable Law.

 

A Lender shall not be required to make
any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling
the Borrower to require such assignment and delegation cease to apply.

 

5.6.3      Designation
of a Different Lending Office. If any Lender requests compensation under Section 5.8 [Increased Costs], or the Borrower
is or will be required to pay any Indemnified Taxes or additional amounts to any Lender or any Official Body for the account of
any Lender pursuant to Section 5.9 [Taxes], then such Lender shall (at the request of the Borrower) use reasonable efforts to
designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the reasonable judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 5.8 [Increased Costs] or Section 5.9 [Taxes], as the case may
be, in the future, and (ii) would not subject such Lender to any material unreimbursed cost or expense and would not otherwise
be materially disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by
any Lender in connection with any such designation or assignment.

 

    	48

    	 

    

 

5.7        Mandatory
Prepayments.

 

5.7.1      Sale
of Assets. Within five (5) Business Days of any sale of assets authorized by Section 8.2.7(v) [Dispositions of Assets or Subsidiaries]
with net proceeds (as estimated in good faith by the Borrower net
of (i) all Taxes payable by the Loan Parties in cash in respect of sale of assets; (ii) reasonable and customary costs and expenses
actually incurred in connection with the disposition, including legal fees and sales commissions; (iii) amounts applied to repayment
of Indebtedness secured by a Permitted Lien on the assets sold which is senior to the Lenders' Prior Security Interest; (iv) transfer
or similar taxes; and (v) as applicable, reserves for indemnities, until such reserves are no longer needed) greater than $10,000,000
in any single transaction or series of transactions, the Borrower shall make a mandatory prepayment of principal equal to the
net proceeds of such sale (as estimated in good faith by the Borrower
net of (i) all Taxes payable by the Loan Parties in cash in respect of sale of assets; (ii) reasonable and customary costs
and expenses actually incurred in connection with the disposition, including legal fees and sales commissions; (iii) amounts applied
to repayment of Indebtedness secured by a Permitted Lien on the assets sold which is senior to the Lenders' Prior Security Interest;
(iv) transfer or similar taxes; and (v) as applicable, reserves for indemnities, until such reserves are no longer needed), together
with accrued interest on such principal amount.

 

5.7.2      Excess
Cash Flow. Commencing with the 2015 fiscal year and at such times as when the Leverage Ratio as determined as of the end of
the most recent fiscal quarter is greater than or equal to 2.0 to 1.0, the Borrower shall make a mandatory prepayment of principal
equal to 50% of Excess Cash Flow for the immediately preceding fiscal year together with accrued interest on such principal amount
within ten (10) days of delivery of the Borrower's audited annual financial statements for the preceding fiscal year.

 

5.7.3      Savoy
Distributions. At any time when the Leverage Ratio as determined as of the end of the most recent fiscal quarter is greater
than or equal to 2.0 to 1.0, the Borrower shall make a mandatory prepayment of principal equal to 100% of the Net Cash Equity
Infusion from Savoy within ten (10) days of the receipt of such cash distributions and/or dividends.

 

5.7.4      Sale
of Savoy. The Borrower shall make a mandatory prepayment of principal equal to 100% of the after tax net cash proceeds received
by any Loan Party and/or Hallador in connection with the sale of such party’s interest in Savoy within 10 days of the receipt
of such proceeds.

 

5.7.5      Application
Among Interest Rate Options. All prepayments required pursuant to this Section 5.7 shall first be applied to the Term Loans
in inverse order to the scheduled principal payments and then to the Revolving Credit Loans. After giving effect to the first
sentence of this Section 5.7.5, all such prepayments shall next be applied among the Interest Rate Options to the principal amount
of the Loans subject to the Base Rate Option, then to Loans subject to a LIBOR Rate Option. In accordance with Section 5.10 [Indemnity],
the Borrower shall indemnify the Lenders for any loss or expense, incurred with respect to any such prepayments applied against
Loans subject to a LIBOR Rate Option on any day other than the last day of the applicable Interest Period.

 

5.8       Increased
Costs.

 

5.8.1     Increased
Costs Generally. If any Change in Law shall:

 

(i)          impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets
of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement
reflected in the LIBOR Rate) or the Issuing Lender;

 

(ii)         subject
any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (ii) through (iv) of the definition
of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations,
or its deposits, reserves, other liabilities or capital attributable thereto; or

 

(iii)        impose
on any Lender, the Issuing Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting
this Agreement or Loans made by such Lender or any Letter of Credit or participation therein;

 

    	49

    	 

    

 

and the result of any of the foregoing shall
be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or
of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Lender or such other
Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in
or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, the Issuing Lender
or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, the Issuing
Lender or other Recipient, the Borrower will pay to such Lender, the Issuing Lender or other Recipient, as the case may be, such
additional amount or amounts as will compensate such Lender or the Issuing Lender, as the case may be, for such additional costs
incurred or reduction suffered.

 

5.8.2      Capital
Requirements. If any Lender or the Issuing Lender determines that any Change in Law affecting such Lender or the Issuing
Lender or any lending office of such Lender or such Lender's or the Issuing Lender's holding company, if any, regarding capital
or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's or the Issuing Lender's
capital or on the capital of such Lender's or the Issuing Lender's holding company, if any, as a consequence of this Agreement,
the Commitments of such Lender or the Loans made by, or participations in Letters of Credit or Swing Loans held by, such Lender,
or the Letters of Credit issued by the Issuing Lender, to a level below that which such Lender or the Issuing Lender or such Lender's
or the Issuing Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's
or the Issuing Lender's policies and the policies of such Lender's or the Issuing Lender's holding company with respect to capital
adequacy), then from time to time the Borrower will pay to such Lender or the Issuing Lender, as the case may be, such additional
amount or amounts as will compensate such Lender or the Issuing Lender or such Lender's or the Issuing Lender's holding company
for any such reduction suffered.

 

5.8.3      Certificates
for Reimbursement; Repayment of Outstanding Loans; Borrowing of New Loans.  A certificate of a Lender or the Issuing
Lender setting forth the amount or amounts necessary to compensate such Lender or the Issuing Lender or its holding company, as
the case may be, as specified in Sections 5.8.1 [Increased Costs Generally] or 5.8.2 [Capital Requirements] and delivered to the
Borrower shall be conclusive absent manifest error. The Borrower shall pay such Lender or the Issuing Lender, as the case may
be, the amount shown as due on any such certificate within ten (10) days after receipt thereof.

 

5.8.4      Delay
in Requests. Failure or delay on the part of any Lender or the Issuing Lender to demand compensation pursuant to this
Section 5.8.4 shall not constitute a waiver of such Lender's or the Issuing Lender's right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender or the Issuing Lender pursuant to this Section 5.8.4 for any increased
costs incurred or reductions suffered more than nine months prior to the date that such Lender or the Issuing Lender, as the case
may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's or the
Issuing Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the nine (9) month period referred to above shall be extended to include the period of retroactive
effect thereof).

 

5.9      Taxes.

 

5.9.1      Issuing
Lender. For purposes of this Section 5.9, the term "Lender" includes the Issuing Lender and the term "applicable
Law" includes FATCA.

 

5.9.2      Payments
Free of Taxes. Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall
be without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined
in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such
payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding
and shall timely pay the full amount deducted or withheld to the relevant Official Body in accordance with applicable Law and,
if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after
such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable
under this Section 5.9) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction
or withholding been made.

 

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5.9.3      Payment
of Other Taxes by the Loan Parties. The Loan Parties shall timely pay to the relevant Official Body in accordance with
applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

 

5.9.4      Indemnification
by the Loan Parties. The Loan Parties shall jointly and severally indemnify each Recipient, within ten (10) days after
demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable
to amounts payable under this Section 5.9) payable or paid by such Recipient or required to be withheld or deducted from a payment
to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes
were correctly or legally imposed or asserted by the relevant Official Body. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its
own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

5.9.5      Indemnification
by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor,
for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified
the Administrative Agent for such Indemnified Taxes and without limiting the obligation of any of the Loan Parties to do so),
(ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 11.8.4 [Participations] relating
to the maintenance of a Participant Register, and (iii) any Excluded Taxes attributable to such Lender, in each case, that are
payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom
or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Official Body.
A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive
absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any
time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other
source against any amount due to the Administrative Agent under this Section 5.9.5.

 

5.9.6      Evidence
of Payments. As soon as practicable after any payment of Taxes by any Loan Party to an Official Body pursuant to this
Section 5.9, such Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by
such Official Body evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

 

5.9.7      Status
of Lenders.

 

(i)          Any
Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document
shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative
Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as
will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably
requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or
reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine
whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to
the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation
set forth in Sections 5.9.7(ii)(b)(A), (ii)(b)(B) and (ii)(b)(D) below) shall not be required if in the Lender's reasonable judgment
such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially
prejudice the legal or commercial position of such Lender.

 

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(ii)       Without
limiting the generality of the foregoing, in the event that the Borrower is a U.S. Borrower,

 

(a)        any
Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such
Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or
the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding
tax;

 

(b)        any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in
such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
whichever of the following is applicable:

 

(A)         in
the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect
to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN establishing an exemption from, or reduction
of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other
applicable payments under any Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding
Tax pursuant to the "business profits" or "other income" article of such tax treaty;

 

(B)         executed
originals of IRS Form W-8ECI;

 

(C)         in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x)
a certificate substantially in the form of Exhibit 5.9.7(A) to the effect that such Foreign Lender is not (A) a "bank"
within the meaning of Section 881(c)(3)(A) of the Code, (B) a "10 percent shareholder" of the Borrower within the meaning
of Section 881(c)(3)(B) of the Code, or (C) a "controlled foreign corporation" described in Section 881(c)(3)(C) of
the Code (a "U.S. Tax Compliance Certificate") and (y) executed originals of IRS Form W-8BEN; or

 

(D)         o
the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI,
IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit 5.9.7(B) or Exhibit 5.9.7(C),
IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign
Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest
exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit 5.9.7(D)
on behalf of each such direct and indirect partner;

 

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(c)          any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in
such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
executed originals of any other form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S.
federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable Law
to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

 

(d)          if
a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender
were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed
by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed
by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably
requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply
with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or
to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall
include any amendments made to FATCA after the date of this Agreement.

 

Each Lender agrees that
if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update
such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do
so.

 

5.9.8     Treatment
of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund
of any Taxes as to which it has been indemnified pursuant to this Section 5.9 (including by the payment of additional amounts
pursuant to this Section 5.9), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of
indemnity payments made under this Section 5.9 with respect to the Taxes giving rise to such refund), net of all out-of-pocket
expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Official
Body with respect to such refund). Such indemnifying party, upon the request of such indemnified party incurred in connection
with obtaining such refund, shall repay to such indemnified party the amount paid over pursuant to this Section 5.9.8 (plus any
penalties, interest or other charges imposed by the relevant Official Body) in the event that such indemnified party is required
to repay such refund to such Official Body. Notwithstanding anything to the contrary in this Section 5.9.8), in no event will
the indemnified party be required to pay any amount to an indemnifying party pursuant to this Section 5.9.8 the payment of which
would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if
the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the
indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed
to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems
confidential) to the indemnifying party or any other Person.

 

5.9.9     Survival. Each
party's obligations under this Section 5.9 shall survive the resignation of the Administrative Agent or any assignment of rights
by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all Obligations.

 

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5.10     Indemnity. In
addition to the compensation or payments required by Section 5.8 [Increased Costs] or Section 5.9 [Taxes], the Borrower shall
indemnify each Lender against all liabilities, losses or expenses (including loss of anticipated profits, any foreign exchange
losses and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan, from
fees payable to terminate the deposits from which such funds were obtained or from the performance of any foreign exchange contract)
which such Lender sustains or incurs as a consequence of any:

 

(i)          payment,
prepayment, conversion or renewal of any Loan to which a LIBOR Rate Option applies on a day other than the last day of the corresponding
Interest Period (whether or not such payment or prepayment is mandatory, voluntary or automatic and whether or not such payment
or prepayment is then due),

 

(ii)         attempt
by the Borrower to revoke (expressly, by later inconsistent notices or otherwise) in whole or part any Loan Requests under Section
2.5 [Revolving Credit Loan Requests; Swing Loan Requests] or Section 4.3 [Interest Periods] or notice relating to prepayments
under Section 5.6 [Voluntary Prepayments], or

 

(iii)        default
by the Borrower in the performance or observance of any covenant or condition contained in this Agreement or any other Loan Document,
including any failure of the Borrower to pay when due (by acceleration or otherwise) any principal, interest, Commitment Fee or
any other amount due hereunder.

 

If any Lender sustains or
incurs any such loss or expense, it shall from time to time notify the Borrower of the amount determined in good faith by such
Lender (which determination may include such assumptions, allocations of costs and expenses and averaging or attribution methods
as such Lender shall deem reasonable) to be necessary to indemnify such Lender for such loss or expense. Such notice shall set
forth in reasonable detail the basis for such determination. Such amount shall be due and payable by the Borrower to such Lender
ten (10) Business Days after such notice is given.

 

5.11     Settlement
Date Procedures. In order to minimize the transfer of funds between the Lenders and the Administrative Agent, the Borrower
may borrow, repay and reborrow Swing Loans and PNC Bank may make Swing Loans as provided in Section 2.1.2 [Swing Loan Commitments]
hereof during the period between Settlement Dates. The Administrative Agent shall notify each Lender of its Ratable Share of the
total of the Revolving Credit Loans and the Swing Loans (each a "Required Share"). On such Settlement Date, each
Lender shall pay to the Administrative Agent the amount equal to the difference between its Required Share and its Revolving Credit
Loans, and the Administrative Agent shall pay to each Lender its Ratable Share of all payments made by the Borrower to the Administrative
Agent with respect to the Revolving Credit Loans. The Administrative Agent shall also effect settlement in accordance with the
foregoing sentence on the proposed Borrowing Dates for Revolving Credit Loans and on any mandatory prepayment date as provided
for herein and may at its option effect settlement on any other Business Day. These settlement procedures are established solely
as a matter of administrative convenience, and nothing contained in this Section 5.11 shall relieve the Lenders of their obligations
to fund Revolving Credit Loans on dates other than a Settlement Date pursuant to Section 2.1.2 [Swing Loan Commitment]. The Administrative
Agent may at any time at its option for any reason whatsoever require each Lender to pay immediately to the Administrative Agent
such Lender's Ratable Share of the outstanding Revolving Credit Loans and each Lender may at any time require the Administrative
Agent to pay immediately to such Lender its Ratable Share of all payments made by the Borrower to the Administrative Agent with
respect to the Revolving Credit Loans.

 

6.          REPRESENTATIONS
AND WARRANTIES

 

6.1       Representations
and Warranties. The Loan Parties (other than Hallador), jointly and severally, represent and warrant to the Administrative
Agent and each of the Lenders as follows:

 

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6.1.1      Organization
and Qualification; Power and Authority; Compliance With Laws; Title to Properties; Event of Default.  Each Loan Party
(other than Hallador) and each Subsidiary of such Loan Party (i) is a corporation, partnership or limited liability company duly
organized, validly existing and in good standing under the laws of its jurisdiction of organization, (ii) has the lawful power
to own or lease its properties and to engage in the business it presently conducts or proposes to conduct, (iii) is duly licensed
or qualified and in good standing in each jurisdiction listed on Schedule 6.1.1 and in all other jurisdictions where the
property owned or leased by it or the nature of the business transacted by it or both makes such licensing or qualification necessary,
except where such failure would not constitute a Material Adverse Change (iv) has full power to enter into, execute, deliver and
carry out this Agreement and the other Loan Documents to which it is a party, to incur the Indebtedness contemplated by the Loan
Documents and to perform its Obligations under the Loan Documents to which it is a party, and all such actions have been duly
authorized by all necessary proceedings on its part, (v) is in compliance in all material respects with all applicable Laws (other
than Environmental Laws which are specifically addressed in Section 6.1.14 [Environmental Matters]) in all jurisdictions in which
such Loan Party or Subsidiary of any such Loan Party is presently or will be doing business except where the failure to do so
would not constitute a Material Adverse Change, and (vi) has good and marketable title to or valid leasehold interest in all material
properties, assets and other rights which it purports to own or lease or which are reflected as owned or leased on its books and
records, free and clear of all Liens and encumbrances except Permitted Liens. No Event of Default or Potential Default exists
or is continuing.

 

6.1.2      Subsidiaries
and Owners; Investment Companies. Schedule 6.1.2 states (i) the name of each of the Borrower's Subsidiaries, its
jurisdiction of organization and the amount, percentage and type of equity interests in such Subsidiary (the "Subsidiary
Equity Interests"), (ii) the name of each holder of an equity interest in the Borrower, the amount, percentage and type
of such equity interest (the "Borrower Equity Interests"), and (iii) any options, warrants or other rights outstanding
to purchase any such equity interests referred to in clause (i) or (ii) (collectively the "Equity Interests").
The Borrower and each Subsidiary of the Borrower has good and marketable title to all of the Subsidiary Equity Interests it purports
to own, free and clear in each case of any Lien and all such Subsidiary Equity Interests have been validly issued, fully paid
and nonassessable. None of the Loan Parties (other than Hallador) or Subsidiaries of such Loan Party is an "investment company"
registered or required to be registered under the Investment Company Act of 1940 or under the "control" of an "investment
company" as such terms are defined in the Investment Company Act of 1940 and shall not become such an "investment company"
or under such "control." None of the Loan Parties (other than Hallador) is a "holding company" or any "affiliate"
of a "holding company" or of a "subsidiary company" of a "holding company" within the meaning of
the Public Utility Holding Company Act of 2005, as amended. None of the Loan Parties (other than Hallador) is subject to any other
federal or state statute or regulation limiting its ability to incur Indebtedness for borrowed money.

 

6.1.3      Validity
and Binding Effect. This Agreement and each of the other Loan Documents (i) has been duly and validly executed and delivered
by each Loan Party (other than Hallador), and (ii) constitutes, or will constitute, legal, valid and binding obligations of each
such Loan Party which is or will be a party thereto, enforceable against such Loan Party in accordance with its terms, except
as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws in effect from time
to time relating to or affecting the enforcement of creditors' rights generally and by general principles of equity.

 

6.1.4      No
Conflict; Material Agreements; Consents. Neither the execution and delivery of this Agreement or the other Loan Documents
by any Loan Party (other than Hallador) nor the consummation of the transactions herein or therein contemplated or compliance
with the terms and provisions hereof or thereof by any of them will conflict with, constitute a default under or result in any
breach of (i) the terms and conditions of the certificate of incorporation, bylaws, certificate of limited partnership, partnership
agreement, certificate of formation, limited liability company agreement or other organizational documents of such Loan Party
or (ii) any Law or any material agreement or instrument or order, writ, judgment, injunction or decree to which such Loan Party
or any of its Subsidiaries is a party or by which it or any of its Subsidiaries is bound or to which it is subject, or result
in the creation or enforcement of any Lien, charge or encumbrance whatsoever upon any property (now or hereafter acquired) of
such Loan Party or any of its Subsidiaries (other than Liens granted under the Loan Documents). There is no default under such
material agreement (referred to above) and none of the Loan Parties (other than Hallador) or their Subsidiaries is bound by any
contractual obligation, or subject to any restriction in any organization document, or any requirement of Law which could result
in a Material Adverse Change. Except as set forth on Schedule 6.1.4, no consent, approval, exemption, order or authorization
of, or a registration or filing with, any Official Body or any other Person is required by any Law or any agreement in connection
with the execution, delivery and carrying out of this Agreement and the other Loan Documents.

 

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6.1.5      Litigation. There
are no actions, suits, proceedings or investigations pending or, to the knowledge of any Loan Party (other than Hallador), threatened
against such Loan Party or any Subsidiary of such Loan Party at law or in equity before any Official Body which individually or
in the aggregate may result in any Material Adverse Change. None of the Loan Parties (other than Hallador) or any Subsidiaries
of any such Loan Party is in violation of any order, writ, injunction or any decree of any Official Body which may result in any
Material Adverse Change.

 

6.1.6     Financial
Statements.

 

(i)          Historical
Statements. The Borrower has delivered to the Administrative Agent copies of its production reports, balance sheet, income
statement and cash flow statement for and as of the end of the fiscal year ended December 31, 2013. In addition, the Borrower
has delivered to the Administrative Agent copies of its interim production reports, income statement, balance sheet and cash flow
statement for the fiscal year to date and as of the end of the fiscal quarter ended [June 30, 2014] (all such annual and interim
statements being collectively referred to as the "Statements"). The Statements
were compiled from the books and records maintained by the Borrower's management, are correct and complete and fairly represent
the financial condition of the Borrower and its Subsidiaries as of the respective dates thereof and the results of operations
for the fiscal periods then ended and have been prepared in accordance with GAAP consistently applied, subject (in the case of
the interim statements) to normal year-end audit adjustments.

 

(ii)         Accuracy
of Financial Statements. Neither the Borrower nor any Subsidiary of the Borrower has any liabilities, contingent or otherwise,
or forward or long-term commitments that are not disclosed in the Statements or in the notes thereto, and except as disclosed
therein there are no unrealized or anticipated losses from any commitments of the Borrower or any Subsidiary of the Borrower which
may cause a Material Adverse Change. Since December 31, 2013, no Material Adverse Change has occurred.

 

6.1.7      Margin
Stock. None of the Loan Parties (other than Hallador) or any Subsidiaries of any such Loan Party engages or intends to
engage principally, or as one of its important activities, in the business of extending credit for the purpose, immediately, incidentally
or ultimately, of purchasing or carrying margin stock (within the meaning of Regulation U, T or X as promulgated by the Board
of Governors of the Federal Reserve System). No part of the proceeds of any Loan has been or will be used, immediately, incidentally
or ultimately, to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any
margin stock or which is inconsistent with the provisions of the regulations of the Board of Governors of the Federal Reserve
System. None of the Loan Parties (other than Hallador) or any Subsidiary of any such Loan Party holds or intends to hold margin
stock in such amounts that more than 25% of the reasonable value of the assets of any such Loan Party or Subsidiary of any such
Loan Party are or will be represented by margin stock.

 

6.1.8      Full
Disclosure. Neither this Agreement nor any other Loan Document, nor any certificate, statement, agreement or other documents
furnished to the Administrative Agent or any Lender in connection herewith or therewith, contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make the statements contained herein and therein, in light of the
circumstances under which they were made, not misleading. There is no fact known to any Loan Party (other than Hallador) which
materially adversely affects the business, property, assets, financial condition, or results of operations of any such Loan Party
or Subsidiary of any such Loan Party which has not been set forth in this Agreement or in the certificates, statements, agreements
or other documents furnished in writing to the Administrative Agent and the Lenders prior to or at the date hereof in connection
with the transactions contemplated hereby.

 

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6.1.9      Taxes. All
material federal, state, local and other tax returns required to have been filed with respect to each Loan Party (other than Hallador)
and each Subsidiary of each such Loan Party have been filed, and payment or adequate provision has been made for the payment of
all taxes, fees, assessments and other governmental charges which have or may become due pursuant to said returns or to assessments
received, except to the extent that such taxes, fees, assessments and other charges are being contested in good faith by appropriate
proceedings diligently conducted and for which such reserves or other appropriate provisions, if any, as shall be required by
GAAP shall have been made.

 

6.1.10    Patents,
Trademarks, Copyrights, Licenses, Etc. No Loan Party (other than Hallador) and no Subsidiary of each such Loan Party
owns or possesses any material patents, trademarks, service marks, trade names, or copyrights. Each Loan Party (other than Hallador)
owns or possesses all the material licenses, registrations, franchises, permits and rights necessary to own and operate its properties
and to carry on its business as presently conducted and planned to be conducted by such Loan Party or Subsidiary, without known
possible, alleged or actual conflict with the rights of others.

 

6.1.11    Liens
in the Collateral. The Liens in all material Collateral granted to the Administrative Agent for the benefit of the Lenders
pursuant to the Collateral Assignment, the Pledge Agreement, the Security Agreement and the Mortgages (collectively, the "Collateral
Documents") constitute and will continue to constitute first priority perfected Liens subject to Permitted Liens. All
filing fees and other expenses in connection with the perfection of such Liens have been or will be paid by the Borrower.

 

6.1.12    Insurance. The
properties of each Loan Party (other than Hallador) and each of its Subsidiaries are insured pursuant to policies and other bonds
which are valid and in full force and effect and which provide adequate coverage from reputable and financially sound insurers
in amounts sufficient to insure the assets and risks of each such Loan Party and Subsidiary in accordance with prudent business
practice in the industry of such Loan Parties and Subsidiaries. Each Loan Party (other than Hallador) has taken all actions required
under the Flood Laws and/or requested by the Administrative Agent to assist in ensuring that each Lender is in compliance with
the Flood Laws applicable to the Collateral, including, but not limited to, providing the Administrative Agent with the address
and/or GPS coordinates of each structure located upon any real property that will be subject to a mortgage in favor of the Administrative
Agent, for the benefit of the Lenders, and, to the extent required, obtaining flood insurance for such property, structures and
contents prior to such property, structures and contents becoming Collateral.

 

6.1.13    ERISA
Compliance.(i) (i) Each Plan is in compliance in all material respects
with the applicable provisions of ERISA, the Code and other federal or state Laws. To the best knowledge of Borrower, each Plan
that is intended to qualify under Section 401(a) of the Code has received a favorable determination or opinion letter from the
IRS or an application for such a letter will be submitted or is currently being processed by the IRS with respect thereto, and
nothing has occurred which would prevent, or cause the loss of, such qualification. Borrower and each ERISA Affiliate have made
all required contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension
of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.

 

(ii)         No
ERISA Event has occurred or is reasonably expected to occur; (a) no Plan has any unfunded pension liability (i.e. excess of benefit
liabilities over the current value of that Plan's assets, determined in accordance with the assumptions used for funding the Plan
for the applicable plan year); (b) neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability under Title IV of ERISA with respect to any Plan (other than premiums due and not delinquent under Section 4007 of ERISA);
(c) neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred
which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA
with respect to a Multiemployer Plan; and (d) neither Borrower nor any ERISA Affiliate has engaged in a transaction that could
be subject to Sections 4069 or 4212(c) of ERISA.

 

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6.1.14    Environmental
Matters. Except for those items described on Schedule 6.1.14, none of which items, individually or collectively,
could be reasonably expected to result in a Material Adverse Change:

 

(i)          None
of the Loan Parties (other than Hallador) has received any Environmental Complaint, whether directed or issued to any such Loan
Party or relating or pertaining to activities undertaken by any prior owner, operator or occupant of the Real Property, which
would result in a Material Adverse Change, and has no reason to believe that it might receive an Environmental Complaint that
would result in a Material Adverse Change.

 

(ii)         No
activity of any Loan Party (other than Hallador) at the Real Property is being conducted in violation of any Environmental Law
or Required Environmental Permit, which such activity would result in a Material Adverse Change, and to the knowledge of any such
Loan Party, no activity of any prior owner, operator or occupant of the Real Property has caused an on-going violation of any
Environmental Law, which such activity would result in a Material Adverse Change.

 

(iii)        There
are no Regulated Substances present on, in, under, or emanating from, or, to any such Loan Party's knowledge, emanating to, the
Real Property or any portion thereof which result in Contamination, which such Contamination would result in a Material Adverse
Change.

 

(iv)        Each
Loan Party (other than Hallador) has all Required Environmental Permits, the absence of which would result in a Material Adverse
Change, and all such Required Environmental Permits are in full force and effect.

 

(v)         Each
Loan Party (other than Hallador) has submitted to an Official Body and/or maintains, as appropriate, all Required Environmental
Notices where the failure to submit and/or maintain such Required Environmental Notices would result in a Material Adverse Change.

 

(vi)        No
structures, improvements, equipment, fixtures, impoundments, pits, lagoons or aboveground or underground storage tanks located
on the Real Property contain or use, except in compliance with Environmental Laws and Required Environmental Permits, Regulated
Substances or otherwise are operated or maintained except in compliance with Environmental Laws and Required Environmental Permits
where such failure to contain, or the use of, Regulated Substances or the noncompliance with Environmental Laws or Required Environmental
Permits, would result in a Material Adverse Change. To the knowledge of each Loan Party (other than Hallador), no structures,
improvements, equipment, fixtures, impoundments, pits, lagoons or aboveground or underground storage tanks of prior owners, operators
or occupants of the Real Property contained or used, except in compliance with Environmental Laws, Regulated Substances or otherwise
were operated or maintained by any such prior owner, operator or occupant except in compliance with Environmental Laws where such
failure to contain, or the use of, Regulated Substances or the noncompliance with Environmental Laws or Required Environmental
Permits, would result in a Material Adverse Change.

 

(vii)       To
the knowledge of each Loan Party (other than Hallador), no facility or site to which any such Loan Party, either directly or indirectly
by a third party, has sent Regulated Substances for storage, treatment, disposal or other management is identified in writing
or proposed in writing to be identified on any list of contaminated properties or other properties which pursuant to Environmental
Laws are the subject of an investigation, cleanup, removal, remediation or other response action by an Official Body where such
investigation, cleanup, removal, remediation or other response by an Official Body would result in a Material Adverse Change.

 

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(viii)      No
portion of the Real Property is identified in writing or, to the knowledge of any Loan Party (other than Hallador), proposed to
be identified in writing on any list of contaminated properties or other properties which pursuant to Environmental Laws are the
subject of an investigation or remediation action by an Official Body where such investigation or remediation action by an Official
Body would result in a Material Adverse Change, nor to the knowledge of any such Loan Party, is any property adjoining or in the
proximity of the Real Property so identified or proposed to be identified on any such list where such identification or proposed
identification would result in an investigation or remediation action by an Official Body that would result in a Material Adverse
Change.

 

(ix)        No
portion of the Real Property constitutes an Environmentally Sensitive Area where the inclusion of such portion of the Real Property
constituting an Environmentally Sensitive Area would result in a Material Adverse Change.

 

(x)         No
lien or other encumbrance authorized by Environmental Laws exists against the Real Property and none of the Loan Parties (other
than Hallador) has any reason to believe that such a lien or encumbrance may be imposed where such lien or encumbrance would result
in a Material Adverse Change.

 

6.1.15    Solvency. Each
Loan Party (other than Hallador) is Solvent. After giving effect to the transactions contemplated by the Loan Documents on the
Closing Date, including all Indebtedness incurred thereby, the Liens granted each such Loan Party in connection therewith and
the payment of all fees related thereto, each such Loan Party will be Solvent, determined as of the Closing Date.

 

6.1.16    Employment
Matters. Each of the Loan Parties (other than Hallador) is in compliance with all employment agreements, employment contracts,
collective bargaining agreements and other agreements among any such Loan Party and its employees (collectively, "Labor
Contracts") and all applicable federal, state and local labor and employment Laws including those related to equal employment
opportunity and affirmative action, labor relations, minimum wage, overtime, child labor, medical insurance continuation, worker
adjustment and relocation notices, immigration controls and worker and unemployment compensation, where the failure to comply
would constitute a Material Adverse Change. There are no outstanding grievances, arbitration awards or appeals therefrom arising
out of the Labor Contracts or current or threatened strikes, picketing, handbilling or other work stoppages or slowdowns at facilities
of any of such Loan Parties which in any case would constitute a Material Adverse Change.

 

6.1.17    Title
to Properties. A Lien on all Real Property owned by each Loan Party (other than Hallador) has been granted to the Administrative
Agent for the benefit of the Lenders pursuant to a Mortgage and other appropriate Security Documents, except for Real Property
acquired by a Loan Party (other than Hallador) in which a Mortgage and other appropriate Security Documents will be executed and
delivered by such Loan Party in favor of the Administrative Agent for the benefit of the Secured Parties within the time frames
provided in Section 8.1.11 [Collateral and Additional Collateral; Execution and Delivery of Additional Security Documents] or
Section 8.2.9 [Subsidiaries, Partnerships and Joint Ventures], as applicable. Each Loan Party (other than Hallador) and each Subsidiary
of such Loan Party has good and sufficient title to or valid leasehold interest in all material properties, assets and other rights
that are reflected as owned or leased on its most recent audited balance sheet, free and clear of all Liens except Permitted Liens,
and subject to the terms and conditions of the applicable leases. All leases of property are in full force and effect, except
for those leases of property where such failure would not result in a Material Adverse Change.

 

6.1.18         Coal
Act; Black Lung Act. To the extent applicable, the Borrower, its Subsidiaries and its "related persons" (as
defined in the Coal Act) are in compliance in all material respects with the Coal Act and none of the Borrower, its Subsidiaries
or its related persons has any liability under the Coal Act except with respect to premiums or other payments required thereunder
which have been paid when due and except to the extent that the liability thereunder would not reasonably be expected to result
in a Material Adverse Change. The Loan Parties (other than Hallador) are in compliance in all material respects with the Black
Lung Act, and none of the Loan Parties (other than Hallador) has any liability under the Black Lung Act except with respect to
premiums, contributions or other payments required thereunder which have been paid when due and except to the extent that the
liability thereunder would not reasonably be expected to result in a Material Adverse Change.

 

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6.1.19    Bonding
Capacity. After giving effect to the transactions contemplated by the Loan Documents, the Borrower has a sufficient mine
bonding capacity to conduct its operations as projected in accordance with the financial projections of the Borrower and its Subsidiaries
provided to the Administrative Agent.

 

6.1.20    Permit
Blockage. No Loan Party (other than Hallador) has been barred for a period in excess of fourteen (14) consecutive days
from receiving surface mining or underground mining permits pursuant to the permit block provisions of the Surface Mining Control
and Reclamation Act, 30 U.S.C. §§ 1201 et seq., and the regulations promulgated thereto, or any corresponding
state laws or regulations.

 

6.1.21    Mining
Property. The Borrower owns or has an interest in all Real Property (whether owned or leased) as necessary for the mining
operations and related operations and activities of the Borrower as currently conducted. Neither Borrower nor any of its Affiliates
will directly or indirectly enter into any transaction with Hallador or any of its Affiliates (other than the Loan Parties) with
respect to any Real Property (whether owned or leased) which is used or useful in the mining operations and related operations
and activities of the Borrower, except as may be entered into after the Closing Date and for transactions that are consistent
with the Borrower’s ordinary course of business and that are undertaken upon fair and reasonable terms fully disclosed to
the Administrative Agent and no less favorable than would be obtained in a comparable arms-length transaction with a non-Affiliate.

 

6.1.22    Anti-Terrorism
Laws. (i) No Covered Entity is a Sanctioned Person, and (ii) no Covered Entity, either in its own right or through any
third party, (a) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person
in violation of any Anti-Terrorism Law, (b) does business in or with, or derives any of its income from investments in or transactions
with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; or (c) engages in any dealings or transactions
prohibited by any Anti-Terrorism Law.

 

6.2           Updates
to Schedules. Should any of the information or disclosures provided on any of the Schedules attached hereto become outdated
or incorrect in any material respect, the Borrower shall promptly provide the Administrative Agent in writing with such revisions
or updates to such Schedule as may be necessary or appropriate to update or correct same; provided, however, that
(i) Schedules 1.1(R), 6.1.1, and 6.1.2 shall not be deemed to have been amended, modified or superseded by any such correction
or update, nor shall any breach of warranty or representation resulting from the inaccuracy or incompleteness of any such Schedule
be deemed to have been cured thereby, unless and until the Administrative Agent, in its sole and absolute discretion, shall have
accepted in writing such revisions or updates to such Schedules and (ii) all remaining Schedules shall not be deemed to have been
amended, modified or superseded by any such correction or update, nor shall any breach of warranty or representation resulting
from the inaccuracy or incompleteness of any such Schedule be deemed to have been cured thereby, unless and until the Required
Lenders, in their sole and absolute discretion, shall have accepted in writing such revisions or updates to such Schedule.

 

7.          CONDITIONS
OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

 

The obligation of each
Lender to make Loans and of the Issuing Lender to issue Letters of Credit hereunder is subject to the performance by each of the
Loan Parties of its Obligations to be performed hereunder at or prior to the making of any such Loans or issuance of such Letters
of Credit and to the satisfaction of the following further conditions:

 

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7.1        First
Loans and Letters of Credit.

 

7.1.1     Deliveries. On
the Closing Date, the Administrative Agent shall have received each of the following in form and substance satisfactory to the
Administrative Agent: A certificate of each of the Loan Parties signed by an Authorized Officer, dated the Closing Date stating
that such Loan Party is in compliance with each of its respective representations, warranties, covenants and conditions hereunder,
or in the case of Hallador, under this Agreement and the Guaranty, and no Event of Default or Potential Default exists and no
Material Adverse Change has occurred and no material litigation exists since December 31, 2013.

 

(ii)         A
certificate dated the Closing Date and signed by the Secretary or an Assistant Secretary of each of the Loan Parties, certifying
as appropriate as to: (a) all action taken by each Loan Party in connection with this Agreement and the other Loan Documents;
(b) the names of the Authorized Officers authorized to sign the Loan Documents and their true signatures; and (c) copies of its
organizational documents as in effect on the Closing Date certified by the appropriate state official where such documents are
filed in a state office together with certificates from the appropriate state officials as to the continued existence and good
standing of each Loan Party in each state where organized or qualified to do business.

 

(iii)        This
Agreement and each of the other Loan Documents signed by an Authorized Officer and all appropriate financing statements and appropriate
stock powers and certificates evidencing the pledged Collateral.

 

(iv)        A
written opinion of counsel for the Loan Parties, dated the Closing Date and as to the matters set forth in Schedule 7.1.1.

 

(v)         Evidence
that adequate insurance, including flood insurance, if applicable, required to be maintained under this Agreement is in full force
and effect, with additional insured, mortgagee and lender loss payable special endorsements attached thereto in form and substance
satisfactory to the Administrative Agent and its counsel naming the Administrative Agent as additional insured, mortgagee and
lender loss payee, and evidence that the Loan Parties have taken all actions required under the Flood Laws and/or requested by
the Administrative Agent to assist in ensuring that each Lender is in compliance with the Flood Laws applicable to the Collateral,
including, but not limited to, providing the Administrative Agent with the address and/or GPS coordinates of each structure on
any real property that will be subject to a mortgage in favor of the Administrative Agent, for the benefit of the Lenders, and,
to the extent required, obtaining flood insurance for such property, structures and contents prior to such property, structures
and contents becoming Collateral.

 

(vi)        A
duly completed closing date compliance certificate dated as of the Closing Date and giving Pro Forma Effect to the Transaction,
signed by an Authorized Officer of Borrower which includes satisfactory evidence that (1) the Leverage Ratio does not exceed 3.00
to 1.00 and (2) the aggregate amount of unrestricted cash on hand of the Borrower plus Availability is at least $30,000,000.

 

(vii)       All
material consents, approvals and licenses required to effectuate the transactions contemplated hereby.

 

(viii)      All
lessor consents allowing for, among other things, a Lien to be obtained upon any lease of the Borrower of the Real Property, from
the lessors of such lease, as required by the Administrative Agent, in its sole discretion, to have such consents, which such
consents shall be in form and substance acceptable to the Administrative Agent (the "Lessor
Consents").

 

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(ix)       (xiii)
To permit the refinancing by the Lenders of the loans outstanding under the 2012 Credit Agreement, (1) the Borrower shall request
Loans in an amount sufficient to refinance the loans under the 2012 Credit Agreement by delivering to the Administrative Agent
an appropriately completed irrevocable Loan Request not later than 11:00 a.m., on the first Borrowing Date (which shall be the
Closing Date) pursuant to which Loans (to which the Base Rate Option applies) are requested; and (2) contemporaneously with the
execution and effectiveness of this Agreement and utilizing a portion of the proceeds of the Loans, the Borrower shall pay in
full all amounts outstanding under the 2012 Credit Agreement, including all unpaid principal, interest, breakage fees and all
other fees and charges thereunder in order to accomplish the amendment and restatement thereof as of the Closing Date. Each Lender
that was a bank under the 2012 Credit Agreement, by execution of this Agreement, waives all notice of prepayment of loans and
all notice of termination of the commitments under the 2012 Credit Agreement, and consents to such termination and prepayment.
In the event that the Borrower submits a Loan Request hereunder, then the Borrower agrees to indemnify the Lenders for any and
all liabilities, losses, or expenses arising therefrom in accordance with the standards set forth in Section 5.10 [Indemnity],
regardless of whether this Agreement has become effective.

 

(x)         A
Lien search in acceptable scope and with acceptable results.

 

(xi)        Evidence
that after giving effect to the transactions contemplated by the Loan Documents, the Borrower has a sufficient mine bonding capacity
(or other security available for the issuance of permits, including without limitation, letters of credit) to conduct its operations
as contemplated in accordance with the financial projections of the Borrower and its Subsidiaries provided to the Administrative
Agent.

 

(xii)       Evidence
that all of Required Mining Permits are in full force and effect in accordance with their terms.

 

(xiii)      Audited
financial statements of Hallador for the fiscal year ended December 31, 2013, prepared in accordance with GAAP and consolidating
schedules for the balance sheet, statement of income, retained earnings and cash flow of the Borrower certified (subject to normal
year-end audit adjustments and without footnotes) by the Chief Executive Officer, President or Chief Financial Officer of the
Borrower as having been prepared in accordance with GAAP, all as more fully described in Section 8.3.2 [Annual Financial Statements].

 

(xiv)      Receipt
of Target's audited consolidated financial statements as well as its consolidating financial statements, prepared in accordance
with GAAP, for the 2011 through 2013 fiscal years ended, as well as any applicable interim financial statements;

 

(xv)       The
projected pro-forma financial projections (including balance sheets and statements of operations and cash flows) of the Borrower
and the Target for each fiscal year from 2014 through 2019, which shall be satisfactory to the Administrative Agent (including
all assumptions).

 

(xvi)      Receipt
of title insurance and/or title insurance endorsements with respect to (1) all Real Property for which a title insurance policy
has previously been issued in favor of the Administrative Agent and (2) all other Real Property that the Administrative Agent
requires to be covered by a title insurance policy, each in form and substance satisfactory to the Administrative Agent, as described
on Schedule 7.1.1(xvi).

 

(xvii)     Satisfactory
completion and receipt of all third-party due diligence items, including, but not limited to the John T. Boyd Company Reasonableness
Report and the Energy Ventures Market Study, each in form and substance satisfactory to the Administrative Agent.

 

(xviii)    The
Chief Executive Officer President or Chief Financial Officer of each Loan Party, acting in their capacities as such officers,
shall have delivered a certificate in form and substance satisfactory to the Administrative Agent as to the capital adequacy and
solvency of each Loan Party after giving effect to the transactions contemplated hereby.

 

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(xix)      A
certified copy of the Stock Purchase Agreement and any related acquisition document (collectively, the "Acquisition
Documents"), each in form and substance satisfactory to the Administrative Agent (including all amendments, supplements,
schedules and exhibits thereto.

 

(xx)       Consummation
of the Transaction on terms and conditions as set forth in the Acquisition Documents, without material waiver, amendment or post
closing conditions thereto unless consented to by the Administrative Agent.

 

(xxi)      A
review of the amount and nature of all tax, ERISA, employee retirement benefit, environmental and all other contingent liabilities
to which the Loan Parties may be subject.

 

(xxii)     Such
other documents in connection with such transactions as the Administrative Agent or its counsel may reasonably request.

 

7.1.2     Payment
of Fees. The Borrower shall have paid all fees and expenses payable on or before the Closing Date or arranged for funding
of such fees and expenses out of the proceeds of the initial Loans.

 

7.2      Each
Loan or Letter of Credit. At the time of making any Loans or issuing, extending or increasing any Letters of Credit and
after giving effect to the proposed extensions of credit: the representations, warranties and covenants of the Loan Parties shall
then be true and no Event of Default or Potential Default shall have occurred and be continuing; the making of the Loans or issuance,
extension or increase of such Letter of Credit shall not contravene any Law applicable to any Loan Party or Subsidiary of any
Loan Party or any of the Lenders; and the Borrower shall have delivered to the Administrative Agent a duly executed and completed
Loan Request or to the Issuing Lender an application for a Letter of Credit, as the case may be.

 

8.          COVENANTS

 

The Loan Parties, jointly
and severally, covenant and agree that until Payment In Full, the Loan Parties shall comply at all times with the following covenants:

 

8.1       Affirmative
Covenants.

 

8.1.1      Preservation
of Existence, Etc. Each Loan Party shall, and each Loan Party (other than Hallador) shall cause each of its Subsidiaries
to, maintain its legal existence as a corporation, limited partnership or limited liability company and its license or qualification
and good standing in each jurisdiction in which its ownership or lease of property or the nature of its business makes such license
or qualification necessary, except as otherwise expressly permitted in Section 8.2.6 [Liquidations, Mergers, Consolidations, Acquisitions]
or where failure to do so would not result in a Material Adverse Effect.

 

8.1.2      Payment
of Liabilities, Including Taxes, Etc. Each Loan Party shall, and each Loan Party (other than Hallador) shall cause each
of its Subsidiaries to, duly pay and discharge all liabilities to which it is subject or which are asserted against it, promptly
as and when the same shall become due and payable, including all taxes, assessments and governmental charges upon it or any of
its properties, assets, income or profits, prior to the date on which penalties attach thereto, except to the extent that such
liabilities, including taxes, assessments or charges, are being contested in good faith and by appropriate and lawful proceedings
diligently conducted and for which such reserve or other appropriate provisions, if any, as shall be required by GAAP shall have
been made.

 

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8.1.3      Maintenance
of Insurance. Each Loan Party shall, and each Loan Party (other than Hallador) shall cause each of its Subsidiaries to,
insure its properties and assets against loss or damage by fire and such other insurable hazards as such assets are commonly insured
(including fire, extended coverage, property damage, workers' compensation and public liability) and against other risks (including
errors and omissions) in such amounts as similar properties and assets are insured by prudent companies in similar circumstances
carrying on similar businesses, and with reputable and financially sound insurers, including self-insurance to the extent customary,
all as reasonably determined by the Administrative Agent. The Loan Parties shall comply with the covenants and provide the endorsement
set forth on Schedule 8.1.3 relating to property and related insurance policies covering the Collateral. Each Loan Party
shall take all actions required under the Flood Laws and/or requested by the Administrative Agent to assist in ensuring that each
Lender is in compliance with the Flood Laws applicable to the Collateral, including, but not limited to, providing the Administrative
Agent with the address and/or GPS coordinates of each structure on any real property that will be subject to a mortgage in favor
of the Administrative Agent, for the benefit of the Lenders, and, to the extent required, obtaining flood insurance for such property,
structures and contents prior to such property, structures and contents becoming Collateral, and thereafter maintaining such flood
insurance in full force and effect for so long as required by the Flood Laws.

 

8.1.4      Maintenance
of Properties and Leases. Each Loan Party shall, and each Loan Party (other than Hallador) shall cause each of its Subsidiaries
to, maintain in good repair, working order and condition (ordinary wear and tear excepted) in accordance with the general practice
of other businesses of similar character and size, all of those properties useful or necessary to its business, and from time
to time, such Loan Party will make or cause to be made all appropriate repairs, renewals or replacements thereof.

 

8.1.5      Visitation
Rights. Each Loan Party shall, and each Loan Party (other than Hallador) shall cause each of its Subsidiaries to, permit
any of the officers or authorized employees or representatives of the Administrative Agent or any of the Lenders to visit and
inspect any of its properties and to examine and make excerpts from its books and records and discuss its business affairs, finances
and accounts with its officers, all in such detail and at such times and as often as any of the Lenders may reasonably request,
provided that each Lender shall provide the Borrower and the Administrative Agent with reasonable notice prior to any visit
or inspection. In the event any Lender desires to conduct such visit or inspection of any Loan Party, such Lender shall make a
reasonable effort to conduct such visit or inspection contemporaneously with any audit to be performed by the Administrative Agent
and such visits or inspections shall be subject to customary safety procedures.

 

8.1.6      Keeping
of Records and Books of Account. The Borrower shall, and shall cause each Subsidiary of the Borrower to, maintain and
keep proper books of record and account which enable the Borrower and its Subsidiaries to issue financial statements in accordance
with GAAP and as otherwise required by applicable Laws of any Official Body having jurisdiction over the Borrower or any Subsidiary
of the Borrower, and in which full, true and correct entries shall be made in all material respects of all its dealings and business
and financial affairs.

 

8.1.7      Compliance
with Laws; Use of Proceeds. Each Loan Party shall, and each Loan Party (other than Hallador) shall cause each of its
Subsidiaries to, comply with all applicable Laws, including all Environmental Laws, in all material respects; provided
that it shall not be deemed to be a violation of this Section 8.1.7 if any failure to comply with any Law would not result in
fines, penalties, remediation costs, other similar liabilities or injunctive relief which in the aggregate would constitute a
Material Adverse Change. The Loan Parties will use the Letters of Credit and the proceeds of the Loans only in accordance with
Section 2.8 [Use of Proceeds] and as permitted by applicable Law. Without limiting the generality of the foregoing, the Loan Parties
shall maintain adequate allowances on its books in accordance with GAAP for (i) future costs associated with any lung disease
claim alleging pneumoconiosis or silicosis or arising out of exposure or alleged exposure to coal dust or the coal mining environment,
(ii) future costs associated with retiree and health care benefits, (iii) future costs associated with reclamation of disturbed
acreage, removal of facilities and other closing costs in connection with its mining activities and (iv) future costs associated
with other potential environmental liabilities.

 

8.1.8      Further
Assurances. Each Loan Party shall, from time to time, at its expense, faithfully preserve and protect the Administrative
Agent's Lien on and Prior Security Interest in the Collateral and all other real and personal property of the Loan Parties whether
now owned or hereafter acquired as a continuing first priority perfected Lien, subject only to Permitted Liens, and shall do such
other acts and things as the Administrative Agent in its sole discretion may deem necessary or advisable from time to time in
order to preserve, perfect and protect the Liens granted under the Loan Documents and to exercise and enforce its rights and remedies
thereunder with respect to the Collateral.

 

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8.1.9      Anti-Terrorism
Laws. (a) No Covered Entity will become a Sanctioned Person, (b) no Covered Entity, either in its own right or through
any third party, will (A) have any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned
Person in violation of any Anti-Terrorism Law; (B) do business in or with, or derive any of its income from investments in or
transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; (C) engage in any dealings
or transactions prohibited by any Anti-Terrorism Law or (D) use the Loans to fund any operations in, finance any investments or
activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law, (c)
the funds used to repay the Obligations will not be derived from any unlawful activity, (d) each Covered Entity shall comply with
all Anti-Terrorism Laws, and (e) the Borrower shall promptly notify the Agent in writing upon the occurrence of a Reportable Compliance
Event.

 

8.1.10    Keepwell.
Each Qualified ECP Loan Party jointly and severally (together with each other Qualified ECP Loan Party) hereby absolutely unconditionally
and irrevocably (a) guarantees the prompt payment and performance of all Swap Obligations owing by each Non-Qualifying Party (it
being understood and agreed that this guarantee is a guaranty of payment and not of collection), and (b) undertakes to provide
such funds or other support as may be needed from time to time by any Non-Qualifying Party to honor all of such Non Qualifying
Party's obligations under this Agreement or any other Loan Document in respect of Swap Obligations (provided, however, that each
Qualified ECP Loan Party shall only be liable under this Section 8.1.10 for the maximum amount of such liability that can be hereby
incurred without rendering its obligations under this Section 8.1.10, or otherwise under this Agreement or any other Loan Document,
voidable under applicable law, including applicable law relating to fraudulent conveyance or fraudulent transfer, and not for
any greater amount). The obligations of each Qualified ECP Loan Party under this Section 8.1.10 shall remain in full force and
effect until payment in full of the Obligations and termination of this Agreement and the other Loan Documents. Each Qualified
ECP Loan Party intends that this Section 8.1.10 constitute, and this Section 8.1.10 shall be deemed to constitute, a guarantee
of the obligations of, and a "keepwell, support, or other agreement" for the benefit of each other Loan Party for all
purposes of Section 1a(18(A)(v)(II) of the CEA.

 

8.1.11    Collateral
and Additional Collateral; Execution and Delivery of Additional and Ancillary Security Documents.

 

(i)          Pursuant
to the Loan Documents, the Loan Parties shall grant, or cause to be granted, to the Administrative Agent, for the benefit of the
Lenders, a first priority security interest in and lien on, subject only to Permitted Liens (A) all Collateral, including (i)
all capital stock and equity interests owned by the Loan Parties (other than Hallador), but only up to 65% of the capital stock
or equity interests of any Foreign Subsidiaries, (ii) Hallador's equity interest in the Borrower, and (iii) all of the other assets
of the Loan Parties (other than Hallador) including all accounts, inventory, as-extracted collateral, fixtures, equipment, investment
property, instruments, chattel paper, general intangibles, coal reserves, methane gas reserves, coal bed methane reserves, mineral
rights, owned and leased Real Property, leasehold interests, patents and trademarks of each such Loan Parties and (B) all other
assets of the Loan Parties (other than Hallador), whether owned on the Closing Date or subsequently acquired;

 

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(ii)         Without
limiting the generality of the foregoing, each applicable Loan Party (other than Hallador) which owns or leases any real property
shall promptly, but in any event within six months of acquiring or leasing such real property, (a) execute and deliver any and
all (1) Mortgages substantially in the form of Exhibit 1.1(M) hereof, and (2) other Security Documents and Ancillary Security
Documents reasonably requested by the Agent to grant a first priority Lien (subject only to Permitted Liens), (b) with respect
to any Real Property on which any Loan Party obtains title insurance, provide the Administrative Agent with notice that it is
receiving such title insurance, and, at the Administrative Agent’s request, have such title insurer provide the Lenders
with a lender’s title insurance policy in an equivalent amount on such Real Property, and (c) with respect to any leased
Real Property, any Lessor Consents that the Administrative Agent reasonably requests, in such Loan Party's interest in such real
property (other than Excluded Collateral), in favor of the Administrative Agent, for the ratable benefit of the Lenders, as security
for the Obligations. In furtherance of the foregoing, the Loan Parties shall diligently cooperate with and assist, at their own
expense, the Administrative Agent in procuring any and all Mortgages, Security Documents, Ancillary Security Documents and Lessor
Consents. Each Loan Party (other than Hallador) hereby appoints any officer or agent of the Administrative Agent as its true and
lawful attorney, for it and in its name, place and stead, to make, execute, deliver, and cause to be recorded or filed any or
all such Mortgages, deeds of trust, assignments, pledges, security interests, financing statements and additional documents and
agreements relating thereto, granting unto said attorney full power to do any and all things said attorney may consider reasonably
necessary or appropriate to be done with respect to the Mortgages as fully and effectively as such Loan Party might or could do,
and hereby ratifying and confirming all its said attorney shall lawfully do or cause to be done by virtue hereof. This power of
attorney is coupled with an interest and shall be irrevocable for the terms of this Agreement and all transactions hereunder.
All reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the exercise of the rights
under this Section 8.1.11(ii) shall be paid by the Loan Parties on demand of the Administrative Agent. The Loan Parties, the Lenders
and the Administrative Agent agree that without any further action on the part of any of them, upon execution and/or delivery,
the Mortgages, other Security Documents, the Ancillary Security Documents and Lessor Consents shall become Loan Documents and
the assets that are subject to the Mortgages and the other Security Documents shall become collateral for the Obligations.

 

8.1.12    Maintenance
of Coal Supply Agreements and Material Contracts. Each Loan Party shall maintain and materially comply with the terms
and conditions of all coal supply agreements and material agreement or contract, including, but not limited to the Acquisition
Documents, the nonperformance of which would reasonably be expected to result in a Material Adverse Change.

 

8.1.13    Maintenance
of Licenses, Etc. Each Loan Party shall maintain in full force and effect all licenses, franchises, permits and other
authorizations necessary for the ownership and operation of its properties and business if the failure so to maintain the same
would constitute a Material Adverse Change.

 

8.1.14    Maintenance
of Permits. Each Loan Party shall maintain all Required Mining Permits in full force and effect in accordance with their
terms.

 

8.1.15    Required
Interest Rate Hedge. The Borrower shall have in place one or more interest rate Swaps with a Lender or financial institution
reasonably acceptable to the Administrative Agent in an amount equal to at least fifty percent (50%) of the outstanding Term Loans
at any given time, and with such other terms and conditions as shall be reasonably acceptable to the Administrative Agent (the
"Required Interest Rate Hedge"), it being acknowledged and agreed that the existing Swaps are on terms and conditions
acceptable to the Administrative Agent. Documentation for the Required Interest Rate Hedge shall be in a standard International
Swap Dealer Association Agreement (with appropriate modifications), shall provide for the method of calculating the reimbursable
amount of the provider's credit exposure in a reasonable and customary manner, shall be reasonably satisfactory to the Administrative
Agent and, unless such Required Interest Rate Hedge is a Lender Provided Interest Rate Hedge, shall not require that any collateral
be provided as security for such agreement.

 

8.2      Negative
Covenants.

 

8.2.1      Indebtedness. Each
of the Loan Parties (other than Hallador) shall not, and shall not permit any of its Subsidiaries to, at any time create, incur,
assume or suffer to exist any Indebtedness, except:

 

(i)          Indebtedness
under the Loan Documents;

 

(ii)         Existing
Indebtedness as set forth on Schedule 8.2.1 (including any extensions or renewals thereof; provided there is no
increase in the amount thereof or other significant change in the terms thereof unless otherwise specified on Schedule 8.2.1;

 

(iii)        Capitalized
and operating leases;

 

(iv)        Other
than as set forth on Schedule 8.2.1, Indebtedness secured by Purchase Money Security Interests not exceeding $5,000,000
outstanding (in the aggregate) at any time;

 

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(v)         Indebtedness
of a Loan Party (other than Hallador) to another Loan Party which is subordinated pursuant to the Intercompany Subordination Agreement,
and Hallador Subordinated Debt; and

 

(vi)        Any
(i) Lender Provided Interest Rate Hedge, (ii) other Interest Rate Hedge approved by the Administrative Agent or (iii) Indebtedness
under any Other Lender Provided Financial Services Product;

 

(vii)       Guaranties
permitted under Section 8.2.3 [Guaranties];

 

(viii)      Indebtedness
representing deferred compensation to employees incurred in the ordinary course of business;

 

(ix)         Indebtedness
to current or former officers, directors, employees, their respective estates, spouses, or former spouses to finance the purchase
or redemption of equity interests in Hallador in aggregate amount not to exceed $500,000 outstanding in the aggregate at any time;

 

(x)          Indebtedness
in respect of netting services, automated clearinghouse arrangements, overdraft protections, and similar arrangements, in each
case in connection with deposit accounts incurred in the ordinary course;

 

(xi)         Indebtedness
consisting of the financing of insurance premiums arising in the ordinary course of business;

 

(xii)        Indebtedness
incurred in respect of warehouse receipts or similar instruments issued or created in the ordinary course of business;

 

(xiii)       [intentionally
omitted]

 

(xiv)      Indebtedness
incurred and/or assumed in connection with a Permitted Acquisition (other than the Transaction) in an amount not to exceed $5,000,000
for each such Permitted Acquisition and $15,000,000 in the aggregate for all such Permitted Acquisitions;

 

(xv)       Obligations
in respect of performance, bid, appeal, and surety bonds and performance and completion guarantees and similar obligations (including
without limitation, letters of credit posted in lieu of such bonds and obligations) provided by the Loan Parties; and

 

(xvi)      Other
unsecured Indebtedness or subordinated debt of the Loan Parties in an aggregate amount outstanding not to exceed $5,000,000.

 

8.2.2      Liens. Each
of the Loan Parties (other than Hallador) shall not, and shall not permit any of its Subsidiaries to, at any time create, incur,
assume or suffer to exist any Lien on any of its property or assets, tangible or intangible, now owned or hereafter acquired,
or agree or become liable to do so, except Permitted Liens.

 

8.2.3      Guaranties. Each
of the Loan Parties (other than Hallador) shall not, and shall not permit any of its Subsidiaries to, at any time, directly or
indirectly, become or be liable in respect of any Guaranty, or assume, guarantee, become surety for, endorse or otherwise agree,
become or remain directly or contingently liable upon or with respect to any obligation or liability of any other Person, except
for Guaranties of Indebtedness of the Loan Parties permitted hereunder.

 

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8.2.4      Loans
and Investments. Each of the Loan Parties (other than Hallador) shall not, and shall not permit any of its Subsidiaries
to, at any time make or suffer to remain outstanding any loan or advance to, or purchase, acquire or own any stock, bonds, notes
or securities of, or any partnership interest (whether general or limited) or limited liability company interest in, or any other
investment or interest in, or make any capital contribution to, any other Person, or agree, become or remain liable to do any
of the foregoing, except:

 

(i)          trade
credit extended on usual and customary terms in the ordinary course of business;

 

(ii)         advances
to employees to meet expenses incurred by such employees in the ordinary course of business;

 

(iii)        Permitted
Investments

 

(iv)        loans,
advances and investments in other Loan Parties (other than Hallador);

 

(v)         investments
consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit
in the ordinary course of business, and investments received in satisfaction or partial satisfaction thereof from financially
troubled account debtors and other credits to suppliers in the ordinary course of business;

 

(vi)        investments
not to exceed $5,000,000 at any time outstanding, consisting of promissory notes and other noncash consideration received in connection
with the disposition of property otherwise permitted under this Agreement;

 

(vii)       advances
of payroll payments to employees in the ordinary course of business; and

 

(viii)      other
investments made after the date of this Agreement in an aggregate amount not to exceed $2,500,000.

 

8.2.5      Dividends
and Related Distributions; Hallador Subordinated Debt Payments.  Each of the Loan Parties (other than Hallador) shall
not, and shall not permit any of its Subsidiaries to, make or pay, or agree to become or remain liable to make or pay, any dividend
or other distribution of any nature (whether in cash, property, securities or otherwise) on account of or in respect of its shares
of capital stock, partnership interests or limited liability company interests on account of the purchase, redemption, retirement
or acquisition of its shares of capital stock (or warrants, options or rights therefor), partnership interests or limited liability
company interests, except (i) dividends or other distributions payable to another Loan Party (other than Hallador), (ii) Permitted
Tax Distributions; provided that the Loan Parties provide the Administrative Agent with reasonable information setting forth the
amount of each such Permitted Tax Distribution, (iii) other dividends or distributions to the owners of the Borrower in the amount
of up to $3,100,000 payable in each fiscal year, provided, that prior to and immediately after making such dividends or distributions,
the Borrower shall certify: (a) that it shall be in Pro Forma Compliance with the covenant contained in Section 8.2.16 [Maximum
Leverage Ratio] by delivering at least five (5) Business Days prior to such dividend or distribution a calculation evidencing
such compliance, except that for the sole purpose of measuring such Pro Forma Compliance, the maximum ratio set forth in Section
8.2.16 [Maximum Leverage Ratio] shall be deemed to be reduced by 0.25, (b) that the amount of Availability shall not be less than
$30,000,000 and (c) there shall exist no Event of Default. The Borrower shall not make or pay any principal payments with respect
to the Hallador Subordinated Debt, except principal payments in an amount not to exceed $2,500,000 per calendar year, provided,
that prior to and immediately after making any such principal payment, the Borrower shall certify: (a) that it shall be in Pro
Forma Compliance with the covenant contained in Section 8.2.16 [Maximum Leverage Ratio] by delivering at least five (5) Business
Days prior to such payment of principal a calculation evidencing such compliance, except that for the sole purpose of measuring
such Pro Forma Compliance, the maximum ratio set forth in Section 8.2.16 [Maximum Leverage Ratio] shall be deemed to be reduced
by 0.25, (b) that the amount of Availability shall not be less than $30,000,000 and (c) there shall exist no Event of Default.

 

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8.2.6     Liquidations,
Mergers, Consolidations, Acquisitions. Each of the Loan Parties shall not, and each Loan Party (other than Hallador)
shall not permit any of its Subsidiaries to, dissolve, liquidate or wind-up its affairs, or become a party to any merger or consolidation,
or acquire by purchase, lease or otherwise all or substantially all of the assets or capital stock of any other Person; provided
that:

 

(1)         any
such Loan Party other than the Borrower may consolidate or merge into another Loan Party which is wholly-owned by one or more
of the other Loan Parties,

 

(2)         the
Borrower or any such Loan Party may acquire, whether by purchase or by merger, (A) all of the ownership interests of another Person
or (B) substantially all of assets of another Person or of a business or division of another Person (each, including the Transaction,
a "Permitted Acquisition"), provided that each of the following requirements is met for each Permitted Acquisition:

 

(i)          if
the Loan Parties are acquiring the ownership interests in such Person, such Person shall execute a Guarantor Joinder and join
this Agreement as a Guarantor pursuant to Section 8.2.9 [Subsidiaries, Partnerships and Joint Ventures] on or before the date
of such Permitted Acquisition;

 

(ii)         the
Loan Parties, such Person and its owners, as applicable, shall grant Liens in the assets of or acquired from and stock or other
ownership interests in such Person and otherwise comply with Section 8.2.9 [Subsidiaries, Partnerships and Joint Ventures] on
or before the date of such Permitted Acquisition;

 

(iii)        the
board of directors or other equivalent governing body of such Person shall have approved such Permitted Acquisition;

 

(iv)        the
business acquired, or the business conducted by the Person whose ownership interests are being acquired shall comply with Section
8.2.10 [Continuation of or Change in Business];

 

(v)         no
Potential Default or Event of Default shall exist immediately prior to and immediately after giving effect to such Permitted Acquisition;

 

(vi)        the
Borrower shall demonstrate that it will be in Pro Forma Compliance with the covenant contained in Section 8.2.16 [Maximum Leverage
Ratio] for the four quarter period immediately after giving effect to such Permitted Acquisition by delivering at least five (5)
Business Days prior to such Permitted Acquisition a calculation evidencing such compliance, except that for the sole purpose of
measuring such Pro Forma Compliance, the maximum ratio set forth in Section 8.2.16 [Maximum Leverage Ratio] shall be deemed to
be reduced by 0.25;

 

(vii)       the
Consideration paid by the Loan Parties for such Permitted Acquisition and all other Permitted Acquisitions made during the period
after the Closing Date and the date of such Permitted Acquisition, but excluding the Consideration paid for the Transaction, shall
not exceed $50,000,000;

 

(viii)      the
Borrower shall demonstrate that immediately after giving effect to such Permitted Acquisition that the amount of Availability
shall not be less than $30,000,000; and

 

(ix)         the
Loan Parties shall deliver to the Administrative Agent at least five (5) Business Days before such Permitted Acquisition copies
of any agreements entered into or proposed to be entered into by such Loan Parties in connection with such Permitted Acquisition
and shall deliver to the Administrative Agent such other information about such Person or its assets as the Administrative Agent
may reasonably require.

 

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8.2.7      Dispositions
of Assets or Subsidiaries. Each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, sell,
convey, assign, lease, abandon or otherwise transfer or dispose of, voluntarily or involuntarily, any of its properties or assets,
tangible or intangible (including sale, assignment, discount or other disposition of accounts, contract rights, chattel paper,
equipment or general intangibles with or without recourse or of capital stock, shares of beneficial interest, partnership interests
or limited liability company interests of a Subsidiary of such Loan Party) which are, or would become, Collateral under any of
the Loan Documents, except:

 

(i)          transactions
involving the sale of inventory in the ordinary course of business;

 

(ii)         any
sale, transfer or lease of assets in the ordinary course of business which are obsolete or no longer necessary or required in
the conduct of such Loan Party's or such Subsidiary's business, including the sale, transfer or exchange of any owned or leased
Real Property, or the election by the Borrower to terminate or to allow to expire the leases of any Real Property, that the Borrower
has determined is not necessary or feasible for use in its mining operations;

 

(iii)        any
sale, transfer or lease of assets in the ordinary course of business which are replaced by substitute assets acquired or leased;
provided such substitute assets are subject to the Lenders' Prior Security Interest (subject to Permitted Liens);

 

(iv)        any
sale, transfer or lease of assets in the ordinary course of business which are replaced by substitute assets acquired or leased;
provided such substitute assets are subject to the Lenders' Prior Security Interest (subject to Permitted Liens);

 

(v)         a
disposition of assets acquired in a Permitted Acquisition, within 270 days of such Permitted Acquisition, that are not necessary
or required in the conduct of such Loan Party’s business; or

 

(vi)        any
sale, transfer or lease of assets (other than Hallador's member or equity interest in the Borrower), the aggregate amount of which
does not exceed $10,000,000, other than those specifically excepted pursuant to clauses (i) through (v) above; or

 

(vii)       any
sale, transfer or lease of assets from one Loan Party to another Loan Party so long as the Loan Parties provide the Administrative
Agent with ten (10) days written notice prior to such sale, transfer or lease and, in the event that such assets are or would
become Collateral under any of the Loan Documents, the Loan Parties shall cooperate fully in ensuring that a Lien in such assets
shall be continued or granted, as applicable, in favor of the Administrative Agent for the benefit of the Lenders and such Loan
Party shall take such other steps as the Administrative Agent deems reasonably and/or necessary to faithfully preserve and protect
the Administrative Agent’s Lien on and Prior Security Interest in, such Collateral unless such Collateral may otherwise
be released pursuant to clauses (i) through (vi) of this Section 8.2.7.

 

8.2.8     Affiliate
Transactions. Each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, enter into or carry
out any transaction with any Affiliate of any Loan Party (including purchasing property or services from or selling property or
services to, any Affiliate of any Loan Party) unless such transaction is not otherwise prohibited by this Agreement, is entered
into in the ordinary course of business upon fair and reasonable arm's-length terms and conditions which are fully disclosed to
the Administrative Agent and is in accordance with all applicable Law.

 

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8.2.9      Subsidiaries,
Partnerships and Joint Ventures. Each of the Loan Parties (other than Hallador) shall not, and shall not permit any of
its Subsidiaries to own or create directly or indirectly any Subsidiaries other than (i) any Subsidiary which has joined this
Agreement as Guarantor on the Closing Date; and (ii) any Subsidiary formed or acquired (as permitted hereunder) after the Closing
Date which joins this Agreement as a Guarantor by delivering to the Administrative Agent (A) a signed Guarantor Joinder; (B) documents
in the forms described in Section 7.1 [First Loans and Letters of Credit] modified as appropriate; and (C) documents necessary
to grant and perfect Prior Security Interests (subject to Permitted Liens) to the Administrative Agent for the benefit of the
Lenders in the equity interests of, and Collateral held by, such Subsidiary. None of the Loan Parties (other than Hallador) shall
become or agree to become a party to a Joint Venture.

 

8.2.10    Continuation
of or Change in Business. Each of the Loan Parties (other than Hallador) shall not, and shall not permit any of its Subsidiaries
to, engage in any business other than the business that such Loan Party is currently engaged in and reasonable extensions thereof,
and such Loan Party or Subsidiary shall not permit any material change in such business.

 

8.2.11    Fiscal
Year. The Borrower shall not, and shall not permit any Subsidiary of the Borrower to, change its fiscal year from the
twelve-month period beginning January 1 and ending December 31, except with the written consent of the Administrative Agent, such
consent not to be unreasonably withheld.

 

8.2.12    Issuance
of Stock. Each of the Loan Parties (other than Hallador) shall not, and shall not permit any of its Subsidiaries to,
issue any additional shares of its capital stock or any options, warrants or other rights in respect thereof.

 

8.2.13    Changes
in Organizational Documents. Each of the Loan Parties shall not, and each Loan Party (other than Hallador) shall not
permit any of its Subsidiaries to, amend in any respect its certificate of incorporation (including any provisions or resolutions
relating to capital stock), by-laws, certificate of limited partnership, partnership agreement, certificate of formation, limited
liability company agreement or other organizational documents without providing at least ten (10) calendar days' prior written
notice to the Administrative Agent and the Lenders and, in the event such change would be adverse to the Lenders as determined
by the Administrative Agent in its reasonable discretion, obtaining the prior written consent of the Required Lenders.

 

8.2.14    [Intentionally
Omitted].

 

8.2.15    Minimum
Fixed Charge Coverage Ratio. The Loan Parties (other than Hallador) shall not permit the Fixed Charge Coverage Ratio,
calculated as of the end of each fiscal quarter for the four fiscal quarters then ended, to be less than 1.25 to 1.0.

 

8.2.16    Maximum
Leverage Ratio. The Loan Parties (other than Hallador) shall not at any time permit the Leverage Ratio, calculated as
of the end of each fiscal quarter for the four fiscal quarters then ended, to exceed the applicable amounts set forth below:

 

	Fiscal Periods Ending	 	Ratio
	 	 	 
	September 30,
2014 through March 31, 2015 
	 	3.25 to 1.00
	 	 	 
	June 30, 2015 through September
30, 2015 
	 	3.00 to 1.00
	 	 	 
	December 31, 2015 and equal fiscal
quarter thereafter 
	 	2.75 to 1.00

 

8.3       Reporting
Requirements. The Loan Parties will furnish or cause to be furnished to the Administrative Agent and each of the Lenders.

 

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8.3.1      Quarterly
Financial Statements. As soon as available and in any event within forty-five (45) calendar days after the end of each
fiscal quarter in each fiscal year, financial statements of Borrower, consisting of a consolidated balance sheet as of the end
of such fiscal quarter and related consolidated statements of income, retained earnings and cash flows for the fiscal quarter
then ended and the fiscal year through that date, all in reasonable detail and certified (subject to normal year-end audit adjustments
and without footnotes) by the Chief Executive Officer, President or Chief Financial Officer of Borrower as having been prepared
in accordance with GAAP, consistently applied, and including comments on any positive or negative variations from the Borrower's
annual budget.

 

8.3.2      Annual
Financial Statements. Commencing with the fiscal year ending as of December 31, 2012, as soon as available and in any
event within one hundred twenty (120) calendar days after the end of each such fiscal year of Hallador, (i) audited financial
statements of Hallador consisting of a consolidated balance sheet as of the end of such fiscal year, and related consolidated
statements of income, retained earnings and cash flows for the fiscal year then ended, certified by independent certified public
accountants satisfactory to the Administrative Agent and (ii) consolidating schedules for the balance sheet, statement of income,
retained earnings and cash flow of Borrower that have been certified (subject to normal year-end audit adjustments and without
footnotes) by the Chief Executive Officer, President or Chief Financial Officer of Borrower as having been prepared in accordance
with GAAP, all in reasonable detail and setting forth in comparative form the financial statements as of the end of and for the
preceding fiscal year. The certificate or report of accountants shall be free of qualifications (other than any consistency qualification
that may result from a change in the method used to prepare the financial statements as to which such accountants concur) and
shall not indicate the occurrence or existence of any event, condition or contingency which would materially impair the prospect
of payment or performance of any covenant, agreement or duty of any Loan Party under any of the Loan Documents. The Loan Parties
shall deliver with such financial statements and certification by their accountants a letter of such accountants to the Administrative
Agent and the Lenders substantially to the effect that, based upon their ordinary and customary examination of the affairs of
the Loan Parties, performed in connection with the preparation of such consolidated financial statements, and in accordance with
GAAP, they are not aware of the existence of any condition or event which constitutes an Event of Default or Potential Default
or, if they are aware of such condition or event, stating the nature thereof.

 

8.3.3      Certificates
of the Borrower and Hallador. Concurrently with the quarterly and annual financial statements of Borrower and Hallador,
as applicable furnished to the Administrative Agent and to the Lenders pursuant to Sections 8.3.1 [Quarterly Financial Statements]
and 8.3.2 [Annual Financial Statements], a certificate (each a "Compliance Certificate") of Hallador signed by
the Chief Executive Officer, President or Chief Financial Officer of Hallador and of Borrower signed by the President or Chief
Financial Officer of Borrower, each in the form of Exhibit 8.3.3.

 

8.3.4      Notices.

 

8.3.4.1           Default. Promptly
after any officer of any Loan Party has learned of the occurrence of an Event of Default or Potential Default, a certificate signed
by an Authorized Officer setting forth the details of such Event of Default or Potential Default and the action which such Loan
Party proposes to take with respect thereto.

 

8.3.4.2           Litigation. Promptly
after the commencement thereof, notice of all actions, suits, proceedings or investigations before or by any Official Body or
any other Person against any Loan Party or Subsidiary of any Loan Party which relate to the Collateral, involve a claim or series
of claims in excess of $2,500,000 or which if adversely determined would constitute a Material Adverse Change.

 

8.3.4.3           Organizational
Documents. Within the time limits set forth in Section 8.2.13 [Changes in Organizational Documents], any amendment to
the organizational documents of any Loan Party.

 

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8.3.4.4           Erroneous
Financial Information.  Immediately in the event that the Borrower or its accountants conclude or advise that any previously
issued financial statement, audit report or interim review should no longer be relied upon or that disclosure should be made or
action should be taken to prevent future reliance, notice in writing setting forth the details thereof and the action which the
Borrower proposes to take with respect thereto.

 

8.3.4.5           ERISA
Event. Immediately upon the occurrence of any ERISA Event, notice in writing setting forth the details thereof and the
action which the Borrower proposes to take with respect thereto.

 

8.3.4.6           Acquisition
Documents. Immediately upon the receipt thereof, notice of any claims made or defaults under any of the Acquisition Documents,
in writing setting forth the details thereof and the action which the Borrower proposes to take with respect thereto.

 

8.3.4.7           Other
Reports.  Promptly upon their becoming available to the Borrower:

 

(i)        Annual
Budget. The annual budget and any forecasts or projections of the Borrower, to be supplied not later than the commencement
of the current fiscal year to which any of the foregoing may be applicable,

 

(ii)       Management
Letters. Any reports including management letters submitted to the Borrower by independent accountants in connection with
any annual, interim or special audit, and

 

(iii)      Other
Information. Such other reports and information as any of the Lenders may from time to time reasonably request.

 

9.          DEFAULT

 

9.1      Events
of Default. An Event of Default shall mean the occurrence or existence of any one or more of the following events or
conditions (whatever the reason therefor and whether voluntary, involuntary or effected by operation of Law):

 

9.1.1      Payments
Under Loan Documents. The Borrower shall fail to pay: (i) any principal of any Loan (including scheduled installments,
mandatory prepayments or the payment due at maturity), Reimbursement Obligation or Letter of Credit Obligation on the date on
which such payment becomes due in accordance with the terms hereof or thereof, or (ii) any interest on any Loan, Reimbursement
Obligation or Letter of Credit Obligation or any other amount owing hereunder or under the other Loan Documents within three (3)
Business Days of the date on which such interest or other amount becomes due in accordance with the terms hereof or thereof;

 

9.1.2      Breach
of Warranty. Any representation or warranty made at any time by any of the Loan Parties herein or by any of the Loan
Parties in any other Loan Document, or in any certificate, other instrument or statement furnished pursuant to the provisions
hereof or thereof, shall prove to have been false or misleading in any material respect as of the time it was made or furnished;

 

9.1.3      Anti-Terrorism
Laws. Any representation or warranty contained in Section 6.1.22 [Anti-Terrorism Laws] is or becomes false or misleading at
any time;

 

9.1.4      Breach
of Negative Covenants or Visitation Rights. Any of the Loan Parties shall default in the observance or performance of
any covenant contained in Section 8.1.5 [Visitation Rights] or Section 8.2 [Negative Covenants];

 

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9.1.5      Breach
of Other Covenants. Any of the Loan Parties shall default in the observance or performance of any other covenant, condition
or provision hereof or of any other Loan Document and such default shall continue unremedied for a period of thirty (30) days;

 

9.1.6      Defaults
in Other Agreements or Indebtedness. A default or event of default shall occur at any time under the terms of any other
agreement involving borrowed money or the extension of credit or any other Indebtedness under which any Loan Party or Subsidiary
of any Loan Party may be obligated as a borrower or guarantor in excess of $10,000,000 in the aggregate, and such breach, default
or event of default consists of the failure to pay (beyond any period of grace permitted with respect thereto, whether waived
or not) any Indebtedness when due (whether at stated maturity, by acceleration or otherwise) or if such breach or default permits
or causes the acceleration of any Indebtedness (whether or not such right shall have been waived) or the termination of any commitment
to lend;

 

9.1.7      Final
Judgments or Orders. Any final judgments or orders for the payment of money in excess of $10,000,000 in the aggregate
shall be entered against any Loan Party by a court having jurisdiction in the premises, which judgment is not discharged, vacated,
bonded or stayed pending appeal within a period of thirty (30) days from the date of entry;

 

9.1.8      Loan
Document Unenforceable. Any of the Loan Documents shall cease to be legal, valid and binding agreements enforceable against
the party executing the same or such party's successors and assigns (as permitted under the Loan Documents) in accordance with
the respective terms thereof or shall in any way be terminated (except in accordance with its terms) or become or be declared
ineffective or inoperative or shall in any way be challenged or contested or cease to give or provide the respective Liens, security
interests, rights, titles, interests, remedies, powers or privileges intended to be created thereby;

 

9.1.9      Uninsured
Losses; Proceedings Against Assets. There shall occur any material uninsured damage to or loss, theft or destruction
of any of the Collateral in excess of $3,500,000 or the Collateral or any other of the Loan Parties' or any of their Subsidiaries'
assets are attached, seized, levied upon or subjected to a writ or distress warrant; or such come within the possession of any
receiver, trustee, custodian or assignee for the benefit of creditors and the same is not cured within thirty (30) days thereafter;

 

9.1.10    Events
Relating to Plans and Benefit Arrangements. (i) An ERISA Event occurs with respect to a Plan which has resulted or could
reasonably be expected to result in liability of Borrower under Title IV of ERISA to the Plan or the PBGC in an aggregate amount
in excess of $2,500,000, or (ii) Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable
grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer
Plan in an aggregate amount in excess of $2,500,000;

 

9.1.11    Change
of Control. (i) Any person or group of persons (within the meaning of Sections 13(d) or 14(a) of the Securities Exchange
Act of 1934, as amended), other than Hallador, shall have acquired beneficial ownership of (within the meaning of Rule 13d-3 promulgated
by the Securities and Exchange Commission under said Act) 25% or more of the voting capital stock or equity interests of the Borrower;
or (ii) within a period of twelve (12) consecutive calendar months, individuals who were managers of the Borrower on the first
day of such period shall cease to constitute a majority of the managers of the Borrower.

 

9.1.12    Relief
Proceedings. (i) A Relief Proceeding shall have been instituted against any Loan Party or Subsidiary of a Loan Party
and such Relief Proceeding shall remain undismissed or unstayed and in effect for a period of sixty (60) consecutive days or such
court shall enter a decree or order granting any of the relief sought in such Relief Proceeding, (ii) any Loan Party or Subsidiary
of a Loan Party institutes, or takes any action in furtherance of, a Relief Proceeding, or (iii) any Loan Party or any Subsidiary
of a Loan Party ceases to be Solvent or admits in writing its inability to pay its debts as they mature.

 

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9.2      Consequences
of Event of Default.

 

9.2.1      Events
of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings. If an Event of Default specified under Sections
9.1.1 through 9.1.11 shall occur and be continuing, the Lenders and the Administrative Agent shall be under no further obligation
to make Loans and the Issuing Lender shall be under no obligation to issue Letters of Credit and the Administrative Agent may,
and upon the request of the Required Lenders, shall (i) by written notice to the Borrower, declare the unpaid principal amount
of the Notes then outstanding and all interest accrued thereon, any unpaid fees and all other Indebtedness of the Borrower to
the Lenders hereunder and thereunder to be forthwith due and payable, and the same shall thereupon become and be immediately due
and payable to the Administrative Agent for the benefit of each Lender without presentment, demand, protest or any other notice
of any kind, all of which are hereby expressly waived, and (ii) require the Borrower to, and the Borrower shall thereupon, deposit
in a non-interest-bearing account with the Administrative Agent, as cash collateral for its Obligations under the Loan Documents,
an amount equal to the maximum amount currently or at any time thereafter available to be drawn on all outstanding Letters of
Credit, and the Borrower hereby pledges to the Administrative Agent and the Lenders, and grants to the Administrative Agent and
the Lenders a security interest in, all such cash as security for such Obligations; and

 

9.2.2     Bankruptcy,
Insolvency or Reorganization Proceedings. If an Event of Default specified under Section 9.1.12 [Relief Proceedings]
shall occur and be continuing, the Lenders shall be under no further obligations to make Loans hereunder and the Issuing Lender
shall be under no obligation to issue Letters of Credit and the unpaid principal amount of the Loans then outstanding and all
interest accrued thereon, any unpaid fees and all other Indebtedness of the Borrower to the Lenders hereunder and thereunder shall
be immediately due and payable, without presentment, demand, protest or notice of any kind, all of which are hereby expressly
waived; and

 

9.2.3     Set-off. If
an Event of Default shall have occurred and be continuing, each Lender, the Issuing Lender, and each of their respective Affiliates
and any participant of such Lender or Affiliate which has agreed in writing to be bound by the provisions of Section 5.3 [Sharing
of Payments] is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable Law, to set
off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time
held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Lender or any such Affiliate or
participant to or for the credit or the account of any Loan Party against any and all of the Obligations of such Loan Party now
or hereafter existing under this Agreement or any other Loan Document to such Lender, the Issuing Lender, Affiliate or participant,
irrespective of whether or not such Lender, Issuing Lender, Affiliate or participant shall have made any demand under this Agreement
or any other Loan Document and although such Obligations of the Borrower or such Loan Party may be contingent or unmatured or
are owed to a branch or office of such Lender or the Issuing Lender different from the branch or office holding such deposit or
obligated on such Indebtedness. The rights of each Lender, the Issuing Lender and their respective Affiliates and participants
under this Section 9.2.3 are in addition to other rights and remedies (including other rights of setoff) that such Lender, the
Issuing Lender or their respective Affiliates and participants may have. Each Lender and the Issuing Lender agrees to notify the
Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice
shall not affect the validity of such setoff and application; and

 

9.2.4     Application
of Proceeds. From and after the date on which the Administrative Agent has taken any action pursuant to this Section
9.2 and until Payment In Full, any and all proceeds received by the Administrative Agent from any sale or other disposition of
the Collateral, or any part thereof, or the exercise of any other remedy by the Administrative Agent, shall be applied as follows:

 

(i)          First,
to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts, including attorney fees,
payable to the Administrative Agent in its capacity as such, the Issuing Lender in its capacity as such and the Swing Loan Lender
in its capacity as such, ratably among the Administrative Agent, the Issuing Lender and Swing Loan Lender in proportion to the
respective amounts described in this clause (i) payable to them;

 

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(ii)        Second,
to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest)
payable to the Lenders under the Loan Documents, including attorney fees, ratably among the Lenders in proportion to the respective
amounts described in this clause (ii) payable to them;

 

(iii)        Third,
to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and Reimbursement Obligations,
ratably among the Lenders in proportion to the respective amounts described in this clause (iii) payable to them;

 

(iv)        Fourth,
to payment of that portion of the Obligations constituting unpaid principal of the Loans, Reimbursement Obligations and payment
obligations then owing under Lender Provided Interest Rate Hedges, and Other Lender Provided Financial Service Products, ratably
among the Lenders, the Issuing Lender, and the Lenders or Affiliates of Lenders which provide Lender Provided Interest Rate Hedges,
and Other Lender Provided Financial Service Products, in proportion to the respective amounts described in this clause (iv) held
by them;

 

(v)         Fifth,
to the Administrative Agent for the account of the Issuing Lender, to cash collateralize any undrawn amounts under outstanding
Letters of Credit; and

 

(vi)        Last,
the balance, if any, to the Loan Parties or as required by Law.

 

Notwithstanding anything to the contrary in
this Section 9.2.4, no Swap Obligations of any Non-Qualifying Party shall be paid with amounts received from such Non-Qualifying
Party under its Guaranty Agreement (including sums received as a result of the exercise of remedies with respect to such Guaranty
Agreement) or from the proceeds of such Non-Qualifying Party's Collateral if such Swap Obligations would constitute Excluded Hedge
Liabilities; provided, however, that to the extent possible, appropriate adjustments shall be made by the Administrative Agent
with respect to the allocation of payments and/or the proceeds of Collateral from other Loan Parties that are Eligible Contract
Participants with respect to such Swap Obligations to preserve the ratable payment of the Obligations among the Lenders as contemplated
by Section 9.2.4(iv) after taking into account payments made by, or proceeds received from, any Non-Qualifying Party in respect
of the Obligations.

 

10.         THE
ADMINISTRATIVE AGENT

 

10.1     Appointment
and Authority. Each of the Lenders and the Issuing Lender hereby irrevocably appoints PNC Bank to act on its behalf as
the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions
on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together
with such actions and powers as are reasonably incidental thereto. The provisions of this Section 10 are solely for the benefit
of the Administrative Agent, the Lenders and the Issuing Lender, and neither the Borrower nor any other Loan Party shall have
rights as a third party beneficiary of any of such provisions.

 

10.2     Rights
as a Lender. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity
as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term "Lender"
or "Lenders" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person
serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from,
lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business
with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and
without any duty to account therefor to the Lenders.

 

10.3     Exculpatory
Provisions. The Administrative Agent shall not have any duties or obligations except those expressly set forth herein
and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent:

 

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(a)          shall
not be subject to any fiduciary or other implied duties, regardless of whether a Potential Default or Event of Default has occurred
and is continuing;

 

(b)          shall
not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed
in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein
or in the other Loan Documents); provided that the Administrative Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document
or applicable Law; and

 

(c)          shall
not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable
for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained
by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

 

The Administrative Agent
shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith
shall be necessary, under the circumstances as provided in Sections 11.1 [Modifications, Amendments or Waivers] and 9.2 [Consequences
of Event of Default]) or (ii) in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall
be deemed not to have knowledge of any Potential Default or Event of Default unless and until notice describing such Potential
Default or Event of Default is given to the Administrative Agent by the Borrower, a Lender or the Issuing Lender.

 

The Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made
in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document
delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein or the occurrence of any Potential Default or Event of Default,
(iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement,
instrument or document or (v) the satisfaction of any condition set forth in Section 7 [Conditions of Lending and Issuance of
Letters of Credit] or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative
Agent.

 

10.4    Reliance
by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or
by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.
In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by
its terms must be fulfilled to the satisfaction of a Lender or the Issuing Lender, the Administrative Agent may presume that such
condition is satisfactory to such Lender or the Issuing Lender unless the Administrative Agent shall have received notice to the
contrary from such Lender or the Issuing Lender prior to the making of such Loan or the issuance of such Letter of Credit. The
Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

 

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10.5     Delegation
of Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder
or under any other Loan Document by or through any one or more sub agents appointed by the Administrative Agent. The Administrative
Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through their respective
Related Parties. The exculpatory provisions of this Section 10 shall apply to any such sub agent and to the Related Parties of
the Administrative Agent and any such sub agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

 

10.6     Resignation
of Administrative Agent. The Administrative Agent may at any time give notice of its resignation to the Lenders, the
Issuing Lender and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, with
approval from the Borrower (so long as no Event of Default has occurred and is continuing), to appoint a successor, such approval
not to be unreasonably withheld or delayed. If no such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation,
then the retiring Administrative Agent may on behalf of the Lenders and the Issuing Lender, appoint a successor Administrative
Agent meeting the qualifications set forth above; provided that if the Administrative Agent shall notify the Borrower and the
Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance
with such notice and (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under
the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the
Lenders or the Issuing Lender under any of the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral
security until such time as a successor Administrative Agent is appointed) and (ii) all payments, communications and determinations
provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the Issuing Lender
directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section
10.6. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the
retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents
(if not already discharged therefrom as provided above in this Section 10.6). The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such
successor. After the retiring Administrative Agent's resignation hereunder and under the other Loan Documents, the provisions
of this Section 10 and Section 11.3 [Expenses; Indemnity; Damage Waiver] shall continue in effect for the benefit of such retiring
Administrative Agent, its sub agents and their respective Related Parties in respect of any actions taken or omitted to be taken
by any of them while the retiring Administrative Agent was acting as Administrative Agent.

 

If PNC Bank resigns as
Administrative Agent under this Section 10.6, PNC Bank shall also resign as an Issuing Lender. Upon the appointment of a successor
Administrative Agent hereunder, such successor shall (i) succeed to all of the rights, powers, privileges and duties of PNC Bank
as the retiring Issuing Lender and Administrative Agent and PNC Bank shall be discharged from all of its respective duties and
obligations as Issuing Lender and Administrative Agent under the Loan Documents, and (ii) issue letters of credit in substitution
for the Letters of Credit issued by PNC Bank, if any, outstanding at the time of such succession or make other arrangement satisfactory
to PNC Bank to effectively assume the obligations of PNC Bank with respect to such Letters of Credit.

 

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10.7     Non-Reliance
on Administrative Agent and Other Lenders. Each Lender and the Issuing Lender acknowledges that it has, independently
and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents
and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender
and the Issuing Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document
or any related agreement or any document furnished hereunder or thereunder.

 

10.8     No
Other Duties, etc. Anything herein to the contrary notwithstanding, none of the other Lenders listed on the cover page
hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its
capacity, as applicable, as the Administrative Agent, a Lender or the Issuing Lender hereunder.

 

10.9     Administrative
Agent's Fee. The Borrower shall pay to the Administrative Agent a nonrefundable fee (the "Administrative Agent's
Fee") under the terms of a letter (the "Administrative Agent's Letter") between the Borrower and Administrative
Agent, as amended from time to time.

 

10.10   Authorization
to Release Collateral and Guarantors. The Lenders and Issuing Lenders authorize the Administrative Agent to release (i)
any Collateral consisting of assets or equity interests sold or otherwise disposed of in a sale or other disposition or transfer
permitted under this Agreement, and (ii) any Guarantor from its obligations under the Guaranty Agreement if the ownership interests
of such Guarantor in the Borrower are sold or otherwise disposed of or transferred to persons other than Loan Parties or Subsidiaries
of the Loan Parties in a transaction permitted under this Agreement.

 

10.11   No
Reliance on Administrative Agent's Customer Identification Program. Each Lender acknowledges and agrees that neither
such Lender, nor any of its Affiliates, participants or assignees, may rely on the Administrative Agent to carry out such Lender's,
Affiliate's, participant's or assignee's customer identification program, or other obligations required or imposed under or pursuant
to the USA Patriot Act or the regulations thereunder, including the regulations contained in 31 CFR 103.121 (as hereafter amended
or replaced, the "CIP Regulations"), or any other Anti-Terrorism Law, including any programs involving any of
the following items relating to or in connection with any of the Loan Parties, their Affiliates or their agents, the Loan Documents
or the transactions hereunder or contemplated hereby: (i) any identity verification procedures, (ii) any recordkeeping, (iii)
comparisons with government lists, (iv) customer notices or (v) other procedures required under the CIP Regulations or such other
Laws.

 

11.         MISCELLANEOUS

 

11.1     Modifications,
Amendments or Waivers. With the written consent of the Required Lenders, the Administrative Agent, acting on behalf of
all the Lenders, and the Borrower, on behalf of the Loan Parties, may from time to time enter into written agreements amending
or changing any provision of this Agreement or any other Loan Document or the rights of the Lenders or the Loan Parties hereunder
or thereunder, or may grant written waivers or consents hereunder or thereunder. Any such agreement, waiver or consent made with
such written consent shall be effective to bind all the Lenders and the Loan Parties; provided, that no such agreement, waiver
or consent may be made which will:

 

11.1.1    Increase
of Commitment. Increase the amount of the Revolving Credit Commitment, Term Loan Commitment or Swing Loan Commitment
of any Lender hereunder without the consent of such Lender;

 

11.1.2    Extension
of Payment; Reduction of Principal Interest or Fees; Modification of Terms of Payment. Whether or not any Loans are outstanding,
extend the Expiration Date, Maturity Date, or the time for payment of principal or interest of any Loan (excluding the due date
of any mandatory prepayment of a Loan), the Commitment Fee or any other fee payable to any Lender, or reduce the principal amount
of or the rate of interest borne by any Loan or reduce the Commitment Fee or any other fee payable to any Lender, the Commitment
Fee or any other fee payable to any Lender, without the consent of each Lender directly affected thereby;

 

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11.1.3    Release
of Collateral or Guarantor. Except for sales or other dispositions of assets permitted by this Agreement, release all
or a majority of the Collateral or any Guarantor from its Obligations under the Guaranty Agreement without the consent of all
Lenders (other than Defaulting Lenders); or

 

11.1.4    Miscellaneous. Amend
Sections 5.2 [Pro Rata Treatment of Lenders], 10.3 [Exculpatory Provisions, Etc.] or 5.3 [Sharing of Payments by Lenders] or this
Section 11.1, alter any provision regarding the pro rata treatment of the Lenders or requiring all Lenders to authorize the taking
of any action or reduce any percentage specified in the definition of Required Lenders, in each case without the consent of all
of the Lenders (other than Defaulting Lenders);

 

provided that no agreement, waiver
or consent which would modify the interests, rights or obligations of the Administrative Agent, the Issuing Lender or PNC Bank
in its capacity as the Swing Loan lender may be made without the written consent of the Administrative Agent, the Issuing Lender
or PNC Bank, as applicable, and provided, further that, if in connection with any proposed waiver, amendment
or modification referred to in Sections 11.1.1 through 11.1.4 above, the consent of the Required Lenders is obtained but the consent
of one or more of such other Lenders whose consent is required is not obtained (each a "Non-Consenting Lender"),
then the Borrower shall have the right to replace any such Non-Consenting Lender with one or more replacement Lenders pursuant
to Section 5.6.2 [Replacement of a Lender]. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any
right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms
requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than
Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent
of such Lender, and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that
by its terms affects any Defaulting Lender disproportionately adversely relative to other affected Lenders shall require the consent
of such Defaulting Lender.

 

11.2     No
Implied Waivers; Cumulative Remedies. No course of dealing and no delay or failure of the Administrative Agent or any
Lender in exercising any right, power, remedy or privilege under this Agreement or any other Loan Document shall affect any other
or future exercise thereof or operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any further
exercise thereof or of any other right, power, remedy or privilege. The rights and remedies of the Administrative Agent and the
Lenders under this Agreement and any other Loan Documents are cumulative and not exclusive of any rights or remedies which they
would otherwise have.

 

11.3     Expenses;
Indemnity; Damage Waiver.

 

11.3.1           Costs
and Expenses. The Borrower shall pay (i) all reasonable out of pocket expenses incurred by the Administrative Agent and
its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), and shall pay
all fees and time charges and disbursements for attorneys who may be employees of the Administrative Agent, in connection with
the syndication of the credit facilities that have occurred on or prior to the Closing Date as provided for herein, the preparation,
negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications
or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated),
(ii) all reasonable out-of pocket expenses incurred by the Issuing Lender in connection with the issuance, amendment, renewal
or extension of any Letter of Credit or any demand for payment thereunder, (iii) all reasonable out-of pocket expenses incurred
by the Administrative Agent, any Lender or the Issuing Lender (including the fees, charges and disbursements of any counsel for
the Administrative Agent, any Lender or the Issuing Lender), and shall pay all fees and time charges for attorneys who may be
employees of the Administrative Agent, any Lender or the Issuing Lender, in connection with the enforcement or protection of its
rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in
connection with the Loans made or Letters of Credit issued hereunder, including all such reasonable out-of pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit, and (iv) all reasonable out-of-pocket
expenses of the Administrative Agent's regular employees and agents engaged periodically to perform audits of the Loan Parties'
books, records and business properties.

 

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11.3.2    Indemnification
by the Borrower. The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender and the
Issuing Lender, and each Related Party of any of the foregoing Persons (each such Person being called an "Indemnitee")
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including
the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee
from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee
or asserted against any Indemnitee by any third party or by the Borrower or any other Loan Party arising out of, in connection
with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance or nonperformance by the parties hereto of their respective obligations hereunder
or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the
use or proposed use of the proceeds therefrom (including any refusal by the Issuing Lender to honor a demand for payment under
a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter
of Credit), (iii) breach of representations, warranties or covenants of the Borrower under the Loan Documents, or (iv) any actual
or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, including any such items or losses
relating to or arising under Environmental Laws or pertaining to environmental matters, whether based on contract, tort or any
other theory, whether brought by a third party or by the Borrower or any other Loan Party, and regardless of whether 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 or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought
by the Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder
or under any other Loan Document, if the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor
on such claim as determined by a court of competent jurisdiction. This Section 11.3.2 [Indemnification by the Borrower] shall
not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

11.3.3    Reimbursement
by Lenders. To the extent that the Borrower for any reason fails to indefeasibly
pay any amount required under Sections 11.3.1 [Costs and Expenses] or 11.3.2 [Indemnification by the Borrower] to be paid by it
to the Administrative Agent (or any sub-agent thereof), the Issuing Lender or any Related Party of any of the foregoing, each
Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Issuing Lender or such Related Party,
as the case may be, such Lender's Ratable Share (determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability
or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or
the Issuing Lender in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative
Agent (or any such sub-agent) or Issuing Lender in connection with such capacity.

 

11.3.4    Waiver
of Consequential Damages, Etc. To the fullest extent permitted by applicable Law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other
Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or
Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in Section 11.3.2 [Indemnification by Borrower]
shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed
by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the
other Loan Documents or the transactions contemplated hereby or thereby.

 

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11.3.5    Payments. All
amounts due under this Section 11.3.5 shall be payable not later than ten (10) days after demand therefor.

 

11.4     Holidays. Whenever
payment of a Loan to be made or taken hereunder shall be due on a day which is not a Business Day such payment shall be due on
the next Business Day (except as provided in Section 4.3 [Interest Periods]) and such extension of time shall be included in computing
interest and fees, except that the Loans shall be due on the Business Day preceding the Expiration Date or Maturity Date if the
Expiration Date or Maturity Date is not a Business Day. Whenever any payment or action to be made or taken hereunder (other than
payment of the Loans) shall be stated to be due on a day which is not a Business Day, such payment or action shall be made or
taken on the next following Business Day, and such extension of time shall not be included in computing interest or fees, if any,
in connection with such payment or action.

 

11.5     Notices;
Effectiveness; Electronic Communication.

 

11.5.1    Notices
Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except
as provided in Section 11.5.2 [Electronic Communications]), all notices and other communications provided for herein shall be
in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier
(i) if to a Lender, to it at its address set forth in its administrative questionnaire, or (ii) if to any other Person, to it
at its address set forth on Schedule 1.1(B).

 

Notices sent by hand or overnight courier
service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by telecopier
shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall
be deemed to have been given at the opening of business on the next Business Day for the recipient). Notices delivered through
electronic communications to the extent provided in Section 11.5.2 [Electronic Communications], shall be effective as provided
in such Section.

11.5.2    Electronic
Communications. Notices and other communications to the Lenders and the Issuing Lender hereunder may be delivered or
furnished by electronic communication (including e mail and Internet or intranet websites) pursuant to procedures approved by
the Administrative Agent; provided that the foregoing shall not apply to notices to any Lender or the Issuing Lender if
such Lender or the Issuing Lender, as applicable, has notified the Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or communications. Unless the Administrative Agent otherwise
prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt
of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available,
return e-mail or other written acknowledgement); provided that if such notice or other communication is not sent during the normal
business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on
the next Business Day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be
deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i)
of notification that such notice or communication is available and identifying the website address therefor.

 

11.5.3    Change
of Address, Etc. Any party hereto may change its address, e mail address or telecopier number for notices and other communications
hereunder by notice to the other parties hereto.

 

11.6     Severability. The
provisions of this Agreement are intended to be severable. If any provision of this Agreement shall be held invalid or unenforceable
in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity
or unenforceability without in any manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining
provisions hereof in any jurisdiction.

 

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11.7     Duration;
Survival. All representations and warranties of the Loan Parties contained herein or made in connection herewith shall
survive the execution and delivery of this Agreement, the completion of the transactions hereunder and Payment In Full. All covenants
and agreements of the Borrower contained herein relating to the payment of principal, interest, premiums, additional compensation
or expenses and indemnification, including those set forth in the Notes, Section 5 [Payments] and Section 11.3 [Expenses; Indemnity;
Damage Waiver], shall survive Payment In Full. All other covenants and agreements of the Loan Parties shall continue in full force
and effect from and after the date hereof and until Payment In Full.

 

11.8     Successors
and Assigns.

 

11.8.1    Successors
and Assigns Generally. The provisions of this Agreement shall be binding upon, and inure to the benefit of, the parties
hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party
may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative
Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except: (i) to
an assignee in accordance with the provisions of Section 11.8.2 [Assignments by Lenders], (ii) by way of participation in accordance
with the provisions of Section 11.8.4 [Participations], or (iii) by way of pledge or assignment of a security interest subject
to the restrictions of Section 11.8.5 [Certain Pledges; Successors and Assigns Generally] (and any other attempted assignment
or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in Section 11.8.4 [Participations] and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this
Agreement.

 

11.8.2    Assignments
by Lenders. Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that any such
assignment shall be subject to the following conditions:

 

(i)          Minimum
Amounts.

 

(A)         in
the case of an assignment of the entire remaining amount of the assigning Lender's Commitment and the Loans at the time owing
to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned;
and

 

(B)         In
any case not described in clause (i)(A) of this Section 11.8.2, the aggregate amount of the Commitment (which for this purpose
includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance
of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption
Agreement with respect to such assignment is delivered to the Administrative Agent or, if "Trade Date" is specified
in the Assignment and Assumption Agreement, as of the Trade Date) shall not be less than $5,000,000 unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not
to be unreasonably withheld or delayed).

 

(ii)         Proportionate
Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights
and obligations under this Agreement with respect to the Loan or the Commitment assigned.

 

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(iii)        Required
Consents. No consent shall be required for any assignment except for the consent of the Administrative Agent (which shall
not be unreasonably withheld or delayed) and:

 

(A)         the
consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default
has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender
or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object
thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof; and

 

(B)         the
consent of the Issuing Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment that
increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding).

 

(iv)        Assignment
and Assumption Agreement. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment
and Assumption Agreement, together with a processing and recordation fee of $3,500, and the assignee, if it is not a Lender, shall
deliver to the Administrative Agent an administrative questionnaire provided by the Administrative Agent.

 

(v)         No
Assignment to Borrower. No such assignment shall be made to the Borrower or any of the Borrower's Affiliates or Subsidiaries.

 

(vi)        No
Assignment to Natural Persons. No such assignment shall be made to a natural person.

 

Subject to acceptance and
recording thereof by the Administrative Agent pursuant to Section 11.8.3 [Register], from and after the effective date specified
in each Assignment and Assumption Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption Agreement, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption Agreement,
be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption Agreement covering all
of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 4.5 [LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not
Available], 5.8 [Increased Costs], and 11.3 [Expenses, Indemnity; Damage Waiver] with respect to facts and circumstances occurring
prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this Section 11.8.2 shall be treated for purposes of this Agreement as a sale by such Lender of a participation
in such rights and obligations in accordance with Section 11.8.4 [Participations].

 

11.8.3    Register. The
Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain a record of the names and addresses
of the Lenders, and the Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the terms hereof
from time to time. Such register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each
Person whose name is in such register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary. Such register shall be available for inspection by the Borrower and any Lender, at any reasonable time
and from time to time upon reasonable prior notice.

 

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11.8.4    Participations. Any
Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to
any Person (other than a natural person or the Borrower or any of the Borrower's Affiliates or Subsidiaries) (each, a "Participant")
in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitment
and/or the Loans owing to it); provided that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower,
the Administrative Agent, the Lenders and the Issuing Lender shall continue to deal solely and directly with such Lender in connection
with such Lender's rights and obligations under this Agreement.

 

Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the Participant, agree (other than as is already provided
for herein) to any amendment, modification or waiver with respect to Sections 11.1.1 [Increase of Commitment], 11.1.2 [Extension
of Payment, Etc.], or 11.1.3 [Release of Collateral or Guarantor]) that affects such Participant. The Borrower agrees that each
Participant shall be entitled to the benefits of Sections 4.5 [Libor Rate Unascertainable, Etc.], 5.8 [Increased Costs], 5.10
[Indemnity] and 5.9 [Taxes] (subject to the requirements and limitations therein, including the requirements under Section 5.9.7
[Status of Lenders] (it being understood that the documentation required under Section 5.9.7 [Status of Lenders] shall be delivered
to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to
Section 11.8.2 [Assignments by Lenders]; provided that such Participant (A) agrees to be subject to the provisions of Section
5.6.2 [Replacement of a Lender] and Section 5.6.3 [Designation of a Different Lending Office] as if it were an assignee under
Section 11.8.2 [Assignments by Lenders]; and (B) shall not be entitled to receive any greater payment under Sections 5.8 [Increased
Costs] or 5.9 [Taxes], with respect to any participation, than its participating Lender would have been entitled to receive, except
to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired
the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable
efforts to cooperate with the Borrower to effectuate the provisions of Section 5.6.2 [Replacement of a Lender] and Section 5.6.3
[Designation of Different Lending Office] with respect to any Participant. To the extent permitted by law, each Participant also
shall be entitled to the benefits of Section 9.2.3 [Set-off] as though it were a Lender; provided that such Participant
agrees to be subject to Section 5.3 [Sharing of Payments by Lenders] as though it were a Lender. Each Lender that sells a participation
shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address
of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations
under the Loan Documents (the "Participant Register"); provided that no Lender shall have any obligation
to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating
to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to
any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or
other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the
Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded
in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to
the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility
for maintaining a Participant Register.

 

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11.8.5    Certain
Pledges; Successors and Assigns Generally. Any Lender may at any time pledge or assign a security interest in all or
any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

11.9     Confidentiality.

 

11.9.1           General. Each
of the Administrative Agent, the Lenders and the Issuing Lender agrees to maintain the confidentiality of the Information, except
that Information may be disclosed (i) to its Affiliates and to its and its Affiliates' respective partners, directors, officers,
employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will
be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the
extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority,
such as the National Association of Insurance Commissioners), (iii) to the extent required by applicable Laws or regulations or
by any subpoena or similar legal process, (iv) to any other party hereto, (v) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same as
those of this Section 11.9.1, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any
of its rights or obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors) to any swap
or derivative transaction relating to the Borrower and its obligations, (vii) with the consent of the Borrower or (viii) to the
extent such Information (Y) becomes publicly available other than as a result of a breach of this Section 11.9.1 or (Z) becomes
available to the Administrative Agent, any Lender, the Issuing Lender or any of their respective Affiliates on a non-confidential
basis from a source other than the Borrower or the other Loan Parties. Any Person required to maintain the confidentiality of
Information as provided in this Section 11.9.1 shall be considered to have complied with its obligation to do so if such Person
has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

 

11.9.2    Sharing
Information With Affiliates of the Lenders. Each Loan Party acknowledges that from time to time financial advisory, investment
banking and other services may be offered or provided to the Borrower or one or more of its Affiliates (in connection with this
Agreement or otherwise) by any Lender or by one or more Subsidiaries or Affiliates of such Lender and each of the Loan Parties
hereby authorizes each Lender to share any information delivered to such Lender by such Loan Party and its Subsidiaries pursuant
to this Agreement to any such Subsidiary or Affiliate subject to the provisions of Section 11.9.1 [General].

 

11.10   Counterparts;
Integration; Effectiveness.

 

11.10.1  Counterparts;
Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative
Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof including any prior confidentiality agreements
and commitments. Except as provided in Section 7 [Conditions Of Lending And Issuance Of Letters Of Credit], this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy or e mail shall be effective as delivery of a manually executed
counterpart of this Agreement.

 

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11.11   CHOICE
OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL.

 

11.11.1   Governing
Law. This Agreement shall be deemed to be a contract under the Laws of the Commonwealth of Pennsylvania without regard
to its conflict of laws principles. Each standby Letter of Credit issued under this Agreement shall be subject either to the rules
of the Uniform Customs and Practice for Documentary Credits, as most recently published by the International Chamber of Commerce
(the "ICC") at the time of issuance ("UCP") or the rules of the International Standby Practices
(ICC Publication Number 590) ("ISP98"), as determined by the Issuing Lender, and each trade Letter of Credit
shall be subject to UCP, and in each case to the extent not inconsistent therewith, the Laws of the Commonwealth of Pennsylvania
without regard to is conflict of laws principles.

 

11.11.2   SUBMISSION
TO JURISDICTION. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY,
TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE COMMONWEALTH OF PENNSYLVANIA SITTING IN ALLEGHENY COUNTY AND OF THE UNITED
STATES DISTRICT COURT OF THE WESTERN DISTRICT OF PENNSYLVANIA, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND
EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN SUCH PENNSYLVANIA STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL
COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN
ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE ISSUING LENDER MAY OTHERWISE HAVE
TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN
PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

11.11.3   WAIVER
OF VENUE. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN THIS SECTION 11.11. EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND AGREES NOT ASSERT ANY SUCH DEFENSE.

 

11.11.4   SERVICE
OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION
11.5.1 [NOTICES GENERALLY]. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY APPLICABLE LAW.

 

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11.11.5   WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, ADMINISTRATIVE AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.8.5.

 

11.12   USA
Patriot Act Notice. Each Lender that is subject to the USA Patriot Act and the Administrative Agent (for itself and not
on behalf of any Lender) hereby notifies Loan Parties that pursuant to the requirements of the USA Patriot Act, it is required
to obtain, verify and record information that identifies the Loan Parties, which information includes the name and address of
Loan Parties and other information that will allow such Lender or Administrative Agent, as applicable, to identify the Loan Parties
in accordance with the USA Patriot Act.

 

11.13   Amendment
and Restatement. This Agreement amends and restates in its entirety the 2012 Credit Agreement; and the Loan Parties confirm
that the 2012 Credit Agreement, the other Loan Documents and the Collateral for the Obligations thereunder (as all such capitalized
terms are defined in the 2012 Credit Agreement) have at all times, since the date of the execution and delivery of such documents,
remained in full force and effect and continued to secure such obligations which are continued as the Obligations hereunder as
amended hereby; and all such Collateral (as defined in the 2012 Credit Agreement) shall continue to secure the Obligations hereunder.
The Loans hereunder are a continuation of the Loans under (and as such terms are defined in) the 2012 Credit Agreement. The Loan
Parties, the Administrative Agent and the Lenders acknowledge and agree that the amendment and restatement of the 2012 Credit
Agreement by this Agreement is not intended to constitute, nor does it constitute, a novation, interruption, suspension of continuity,
satisfaction, discharge or termination of the obligations, loans, liabilities, or indebtedness under the 2012 Credit Agreement
and the other Loan Documents (as such term is defined therein) thereunder or the collateral security therefor and this Agreement
and the other Loan Documents are entitled to all rights and benefits originally pertaining to the 2012 Credit Agreement and the
other Loan Documents (as such term is defined therein).

 

[SIGNATURE PAGE FOLLOWS]

 

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[SIGNATURE
PAGE TO Second AMENDED AND RESTATED CREDIT AGREEMENT]

 

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

 

	 	BORROWER:
	 	 
	 	SUNRISE COAL, LLC
	 	 
	 	By:	/s/ Brent K. Bilsland
	 	 
	 	Name:  Brent K. Bilsland
	 	 
	 	Title:     President
	 	 
	 	GUARANTORS:
	 	 
	 	HALLADOR ENERGY COMPANY
	 	 	 
	 	By:	/s/ Brent K. Bilsland
	 	 
	 	Name:  Brent K. Bilsland
	 	 
	 	Title:    President
	 	 
	 	INFINITY FARMS, LLC
	 	 
	 	By:	/s/ Brent K. Bilsland
	 	 	 
	 	Name:  Brent K. Bilsland
	 	 
	 	Title:    President

 

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[SIGNATURE
PAGE TO Second AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	SFI COAL SALES, LLC
	 	 
	 	By:	/s/ Brent K. Bilsland
	 	 
	 	Name:  Brent K. Bilsland
	 	 
	 	Title:     President
	 	 
	 	PROSPERITY MINE, LLC
	 	 
	 	By:	/s/ Brent K. Bilsland
	 	 
	 	Name:  Brent K. Bilsland
	 	 
	 	Title:    President
	 	 
	 	OAKTOWN FUELS MINE NO. 1, LLC
	 	 
	 	By:	/s/ Brent K. Bilsland
	 	 
	 	Name:  Brent K. Bilsland
	 	 
	 	Title:    President
	 	 
	 	OAKTOWN FUELS MINE NO. 2, LLC
	 	 
	 	By:	/s/ Brent K. Bilsland
	 	 
	 	Name:  Brent K. Bilsland
	 	 
	 	Title:  President

 

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[SIGNATURE
PAGE TO Second AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	SYCAMORE COAL, INC.
	 	 
	 	By:	/s/ Brent K. Bilsland
	 	 
	 	Name:  Brent K. Bilsland
	 	 
	 	Title:  President

 

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[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	PNC BANK, NATIONAL ASSOCIATION, individually and as Administrative Agent
	 	 
	 	By:	/s/ James O’Brien
	 	Name:  James O'Brien
	 	Title:    Assistant Vice President

 

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[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	THE HUNTINGTON NATIONAL BANK
	 	 
	 	By:	/s/ Joshua D. Elsea
	 	 
	 	Name: Joshua D. Elsea
	 	 
	 	Title:   Vice President

 

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[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	BRANCH BANKING AND TRUST COMPANY
	 	 	 
	 	By:	/s/ Troy Weaver
	 	 	 
	 	Name: Troy Weaver
	 	 
	 	Title: Senior Vice President

 

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[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	REGIONS BANK
	 	 
	 	By:	/s/ Eric Harvey
	 	 
	 	Name: Eric Harvey
	 	 
	 	Title:   Vice President

 

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[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	UMB BANK, N.A.
	 	 
	 	By:	/s/ John J. Mastro
	 	 
	 	Name:  John J. Mastro
	 	 
	 	Title:    Senior Vice President

 

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[SIGNATURE
PAGE TO Second AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	KEYBANK, NATIONAL ASSOCIATION
	 	 	 
	 	By:	/s/ Brian D. Smith
	 	 	Brian D. Smith, Senior Vice President

 

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[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	OLD NATIONAL BANK
	 	 	 
	 	By:	/s/ James D. Anderson
	 	 	 
	 	Name:  James D. Anderson
	 	 
	 	Title:     Market President - Danville

 

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[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	CITIZENS BANK OF PENNSYLVANIA
	 	 
	 	By:	/s/ Philip R. Medsger
	 	 
	 	Name:   Philip R. Medsger
	 	 
	 	Title:     Senior Vice President

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[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	CAPITAL BANK, N.A.
	 	 	 
	 	By:	/s/ Brian Reeves
	 	 	 
	 	Name:  Brian Reeves
	 	 
	 	Title:    Market President

 

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[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	FIRST FINANCIAL, N.A.
	 	 
	 	By:	/s/ Steve Holliday
	 	 	 
	 	Name:  Steve Holliday
	 	 
	 	Title:     Chief Credit Officer

 

    	101

    	 

    

 

[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	TALMER BANK AND TRUST
	 	 	 
	 	By:	/s/ Matthew P. Tuohey
	 	 	 
	 	Name:   Matthew P. Tuohey
	 	 
	 	Title:    Managing Director

 

    	102

    	 

    

 

[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	FIRST MERCHANTS BANK, N.A.
	 	 	 
	 	By:	/s/ Adam Treibk
	 	 	 
	 	Name:   Adam Treibk
	 	 
	 	Title:     Vice President

 

    	103

    	 

    

 

[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	BOKF, NA dba Colorado State Bank and Trust
	 	 	 
	 	By:	/s/ Matthew J. Mason
	 	 	 
	 	Name:   Matthew J. Mason
	 	 
	 	Title:     Senior Vice President

 

    	104

    	 

    

 

[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	FIRST COMMONWEALTH BANK
	 	 
	 	By:	/s/ Stephen J. Orban
	 	 	 
	 	Name:   Stephen J. Orban
	 	 
	 	Title:     Senior Vice President

 

    	105

    	 

    

 

[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	COMMUNITY BANKS OF COLORADO, A DIVISION OF NBH BANK, N.A.
	 	 	 
	 	By	/s/ G. S. Todd Berryman
	 	 	 
	 	Name:	G. S. Todd Berryman
	 	 	 
	 	Title:	Managing Director

 

    	106

    	 

    

 

[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	FIRSTMERIT BANK, N.A.
	 	 	 
	 	By	/s/ Robert G. Morlan
	 	 
	 	Name:   Robert G. Morlan
	 	 
	 	Title:     Senior Vice President

 

    	107

    	 

    

 

[SIGNATURE
PAGE TO SEcond AMENDED AND RESTATED CREDIT AGREEMENT]

 

	 	IROQUOIS FEDERAL SAVINGS & LOAN ASSOCIATION
	 	 	 
	 	By:	/s/ Thomas J. Chamberlain
	 	 	 
	 	Name:   Thomas J. Chamberlain
	 	 
	 	Title:     Vice President and Chief Lending Officer

 

    	108Exhibit 4.18

 

Guided
Therapeutics, INC.

Common Stock Purchase Warrant

(Placement Agent Warrant)

	 	Warrant Terms	 
	 	Warrant No.	 	Warrant Shares	 	Exercise Price	 
	 	 	 	 	 	$               per share[1]	 
	 	Date of Issuance	 	 	 	Termination Date	 
	 	                   , 2014	 	 	 	                   , 2019	 

 

This Common Stock Purchase Warrant (this
“Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the one-year anniversary of the Date of Issuance listed on the table above (the “Initial Exercise Date”)
and on or prior to the close of business on the Termination Date listed on the table above[2]
(the “Termination Date”) but not thereafter, to subscribe for and purchase from GUIDED THERAPEUTICS, INC., a
Delaware corporation (the “Company”), up to that number of shares of the Company’s common stock, par value
$.001 per share (the “Common Stock”), listed in the table above (the “Warrant Shares”).

1.      
Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain
Securities Purchase Agreement, dated as of _______, 2014, between the Company and the purchasers identified on the signature pages
thereto (the “Purchase Agreement”).

2.      
Exercise.

(a)    
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part,
at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or
such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of
the Holder appearing on the books of the Company) of a duly executed facsimile copy of the attached Notice of Exercise Form (the
date such Notice of Exercise is received by the Company, the “Warrant Exercise Date”); and, within three days
of trading on the principal market or exchange on which the Common Stock trades (such market or exchange, the “Trading
Market” and each such day, a “Trading Day”) of the Warrant Exercise Date, receipt of payment by the
Company of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United
States bank or, if available, pursuant to the cashless exercise procedure specified in Section 2(c). Notwithstanding anything herein
to the contrary, the Holder will not be required to physically surrender this Warrant to the Company until the Holder has purchased
all of the Warrant Shares available hereunder and this Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancelation within three Trading Days of the date the final Notice of Exercise is delivered to
the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to
the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases. The Holder and any assignee, by acceptance of this Warrant, acknowledge and
agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder,
the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face
hereof.

(b)    
Exercise Price. The purchase price of one share of Common Stock under this Warrant shall be equal to the exercise
price listed in the table above, subject to adjustment as provided in this Warrant (the “Exercise Price”).

(c)    
Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or
the prospectus contained therein is not available for, the issuance of the Warrant Shares to the Holder, then this Warrant may
only be exercised, in whole or in part, at such time by means of a cashless exercise in which the Holder shall be entitled to receive
a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

(A) = the VWAP on the Trading Day immediately preceding
the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable
Notice of Exercise;

(B) = the Exercise Price of this Warrant, as adjusted hereunder;
and

(X) = the number of Warrant Shares that would be issuable
upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather
than a cashless exercise.

“VWAP” means, for
any security as of any date, the dollar volume-weighted average price for such security on a Trading Market (or, if a Trading Market
is not the principal trading market for such security, then on the principal securities exchange or securities market on which
such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York
time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing does not apply, the dollar
volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security
during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg,
or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest
closing bid price and the lowest closing ask price of any of the market makers for such security as reported by OTC Markets Group
Inc. If VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such
date will be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable
to agree upon the fair market value of such security, then the fair market value will be determined by an independent appraiser
selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to
the Company, the fees and expenses of which the Company shall pay. All such determinations will be appropriately adjusted for any
stock dividend, stock split, stock combination or other similar transaction during such period.

(d)    
Mechanics of Exercise.

(i)      
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Transfer Agent to transmit the Warrant Shares
purchased hereunder to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company
through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such
system and there is an effective registration statement permitting the issuance of the Warrant Shares to Holder, and otherwise
by physical delivery to the address specified by the Holder in the Notice of Exercise, by the date that is three Trading Days after
the Warrant Exercise Date (such date, the “Warrant Share Delivery Date”), provided that the Holder has paid
any required Exercise Price for the portion of this Warrant being exercised on or prior to such Warrant Share Delivery Date. This
Warrant will be deemed to have been exercised on the Warrant Exercise Date. The Warrant Shares will be deemed to have been issued,
and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares
for all purposes, as of the Warrant Exercise Date, once Holder has paid to the Company the Exercise Price (or paid via cashless
exercise, if permitted) and paid all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the
issuance of such shares.

(ii)    
Delivery of New Warrants Upon Exercise. If this Warrant is exercised in part, the Company shall, at the request of
the Holder and upon surrender of this Warrant, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant will
in all other respects be identical with this Warrant.

(iii)   
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares
pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then, the Holder will have the right to rescind such exercise.

(iv)  
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant
to an exercise on or before the Warrant Share Delivery Date and the Holder has paid any required Exercise Price for the portion
of this Warrant being exercised on or prior to such Warrant Share Delivery Date (including by cashless exercise, if permitted pursuant
to Section 2(c)), and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise)
or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder
of the Warrant Shares that the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company
shall, within five Trading Days, (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase
price (including reasonable brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount
obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with
the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B)
at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such
exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares
of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations. The Holder
shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request
of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies
available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive
relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required
pursuant to the terms hereof.

(v)    
No Fractional Shares or Scrip. The Company shall not issue fractional shares or scrip representing fractional shares
upon the exercise of this Warrant. As to any fraction of a share that the Holder would otherwise be entitled to purchase upon such
exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal
to such fraction multiplied by the Exercise Price or round up to the next whole share.

(vi)  
Charges, Taxes and Expenses. The Company shall not charge the Holder for any issue or transfer tax or other incidental
expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such
Warrant Shares shall be issued in the name of the Holder or, if permitted by applicable law, in such name or names as may be directed
by the Holder. If Warrant Shares are to be issued in a name other than the name of the Holder, then this Warrant when surrendered
for exercise must be accompanied by the attached Assignment Form duly executed by the Holder and the Company may require, as a
condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental to such assignment.

(vii) 
Closing of Books. The Company will not close its stockholder books or records in any manner that prevents the timely
exercise of this Warrant pursuant to its terms.

(e)    
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall
not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
“affiliates” (as such term is defined in Rule 405 under the Securities Act of 1933), and any other persons acting as
a “group” (as such term is defined in Regulation 13D/G under the Securities Exchange Act of 1934 (the “Exchange
Act”) together with the Holder or any of the Holder’s affiliates), would beneficially own in excess of the Beneficial
Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially
owned by the Holder and its affiliates will include the number of shares of Common Stock issuable upon exercise of this Warrant
with respect to which such determination is being made, but will exclude the number of shares of Common Stock that would be issuable
upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially owned by the Holder or any of its affiliates
and (ii) exercise or conversion of the unexercised or non-converted portion of any other securities of the Company (including,
without limitation, any other Common Stock Equivalents (as defined below)) subject to a limitation on conversion or exercise analogous
to the limitation contained in this Section 2(e) beneficially owned by the Holder or any of its affiliates, to the extent not being
converted or exercised at the time at which such determination is made. Except as set forth in the preceding sentence, for purposes
of this Section 2(e), beneficial ownership will be calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder, and the Holder acknowledges that the Company is not representing to the Holder that such
calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required
to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination
of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any affiliates) and of
which portion of this Warrant is exercisable will be in the sole discretion of the Holder, and the submission of a Notice of Exercise
will be deemed to be the Holder’s determination that this Warrant is exercisable (in relation to other securities owned by
the Holder together with any affiliates), to the extent to be exercise pursuant to such Notice of Exercise, in accordance with
the Beneficial Ownership Limitation, and the Company will have no obligation to verify or confirm the accuracy of such determination
and will have no liability for exercises of this Warrant that are in non-compliance with the Beneficial Ownership Limitation. In
addition, a determination as to any group status as contemplated above will be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number
of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A)
the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public
announcement by the Company, or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number
of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days
confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding as established by clauses (A),
(B), or (C), as applicable. In any case, the number of outstanding shares of Common Stock will be determined after giving effect
to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its affiliates since the date
as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice to the Company,
may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership
Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to
the issuance of shares of Common Stock upon exercise of this Warrant and the provisions of this Section 2(e) shall continue to
apply. Any such increase or decrease will not be effective until the 61st day after such notice
is delivered to the Company and shall only be effective with regard to such Holder. The provisions of this Section 2(e) will be
construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this section
(or any portion hereof) that may be defective or inconsistent with the intended Beneficial Ownership Limitation or to make changes
or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this Section 2(e)
will apply to a successor holder of this Warrant. “Common Stock Equivalents” means any securities of the Company
or the Subsidiaries that would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any
debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable
for, or otherwise entitles the holder thereof to receive, Common Stock.

3.      
Certain Adjustments.

(a)    
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, will not include any shares of Common Stock issued by the Company
upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price
will be adjusted to an amount equal to the Exercise Price immediately before such event multiplied by a fraction, the numerator
of which will be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event
and the denominator of which will be the number of shares of Common Stock outstanding immediately after such event, and the number
of shares issuable upon exercise of this Warrant will be proportionately adjusted such that the aggregate Exercise Price of this
Warrant will remain unchanged. Any adjustment made pursuant to this Section 3(a) will become effective immediately after the record
date for the determination of stockholders entitled to receive such dividend or distribution and will become effective immediately
after the effective date in the case of a subdivision, combination or re-classification.

(b)    
 [RESERVED]

(c)    
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a), if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be
entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights that the Holder could have
acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without
regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) 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 shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right
would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder will not be entitled to participate in
such Purchase Right to such extent (or in the beneficial ownership of such shares of Common Stock as a result of such Purchase
Right to such extent) and such Purchase Right to such extent will be held in abeyance for the Holder until such time, if ever,
as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

(d)    
Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company declares or makes any dividend
or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of
capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by
way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a
“Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder will be
entitled following partial or complete exercise of this Warrant to participate in such Distribution to the same extent that the
Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon such partial
or complete exercise of this Warrant, as applicable (without regard to any limitations on exercise hereof, including without limitation,
the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in
such Distribution (provided, however, to the extent that the Holder’s right to participate in any such Distribution
would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder will not be entitled to participate in
such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution
to such extent) and the portion of such Distribution will be held in abeyance for the benefit of the Holder until such time, if
ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). In addition, to the extent
that this Warrant has not been partially or completed exercised at the time of such Distribution, such portion of the Distribution
will be held in abeyance for the benefit of the Holder until the Holder has exercised this Warrant.

(e)    
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person (other than
for the purpose of changing the name of the Company or changing the Company’s jurisdiction of incorporation to another state
within the United States), (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance
or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or
indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which
holders of at least 50% or more of the outstanding Common Stock sell, tender or exchange their shares for other securities, cash
or property, (iv) the Company, directly or indirectly, in one or more related transactions, effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions
consummates a securities purchase or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than
50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons
making or party to, or associated or affiliated with the other Persons making or party to, such securities purchase or other business
combination) (each a “Fundamental Transaction”), then, subject to the agreement of any counterparty to the Fundamental
Transaction, upon any subsequent exercise of this Warrant, the Holder will have the right to receive, for each Warrant Share that
would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option
of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common
Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard
to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of
a Fundamental Transaction that is (1) an all cash transaction (meaning (x) all outstanding shares of Common Stock prior to the
Fundamental Transaction are converted into or exchanged or tendered for cash or (y) the Company, directly or indirectly, effects
any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one
or a series of related transactions for all cash consideration), (2) a “Rule 13e-3 transaction” as defined in Rule
13e-3 under the Exchange Act, or (3) a Fundamental Transaction involving a person or entity not traded on a national securities
exchange or other established trading market, including, but not limited to, the NYSE, the NYSE MKT, the Nasdaq Global Select Market,
the Nasdaq Global Market, the Nasdaq Capital Market, the OTC QX, the OTC QB or the Over-the-Counter Bulletin Board (a “Non-listed
Company”) in which all outstanding shares of Common Stock prior to the Fundamental Transaction are converted into or
exchanged or tendered for shares of such Non-listed Company, the Company or any Successor Entity (as defined below) shall, at the
Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental
Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of
the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction. “Black
Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the
“OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable
Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate
for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination
Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg
as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying
price per share used in such calculation shall be the sum of the price per share being offered in cash, if any, plus the value
of any non-cash consideration, if any, being offered in such Fundamental Transaction and (D) a remaining option time equal to the
time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The Company
shall use commercially reasonable efforts to cause any successor entity in a Fundamental Transaction in which the Company is not
the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Warrant in accordance with the provisions of this Section 3(e) and shall, at the option of the Holder, deliver to the Holder in
exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and
substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or
its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard
to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies
the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common
Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital
stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead
to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the
Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.

(f)     
Calculations. All calculations under this Section 3 will be made to the nearest cent or the nearest 1/100th of a
share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding
as of a given date will be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

(g)    
Notice to Holder.

(i)      
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3,
the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth
a brief statement of the facts requiring such adjustment.

(ii)    
Notice to Allow Exercise by Holder. If, during the term in which this Warrant is exercisable by Holder, (A) the Company
shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special
nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders
of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights,
(D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock,
any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of
the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or
(E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company,
then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant
Register of the Company, at least 10 calendar days prior to the applicable record or effective date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants,
or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure
to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required
to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission
pursuant to a current report on Form 8-K. The Holder will remain entitled to exercise this Warrant during the period commencing
on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth
herein.

4.      
Transfer of Warrant.

(a)    
Transferability; Compliance with FINRA. Holder agrees that, pursuant to the Lock-Up Period (as defined below) , it
will not (a) sell, transfer, assign, pledge, hypothecate or otherwise transfer this Warrant (including any Warrant Shares issued
or issuable hereunder) other than to a bona fide officer or partner of the Holder or any selected dealer in connection with the
offering contemplated by the Placement Agent Agreement, in each case in accordance with Financial Industry Regulatory Authority,
Inc. (“FINRA”) Conduct Rule 5110(g)(1), or (b) cause this Warrant or any Warrant Shares issued or issuable hereunder
to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition
of this Warrant or any Warrant Shares issued or issuable hereunder, except as provided for in FINRA Rule 5110(g)(2). As used herein,
the term “Lock-Up Period” means the period beginning on the date that the Registration Statement on Form S-1 (File
No. 333-198733) of the Company is declared effective by the Securities and Exchange Commission (the “Effective Date”)
and ending on the three hundred sixty day anniversary of the Effective Date. In addition, notwithstanding the other terms of this
Warrant or any agreement between the Company and the Holder, the Holder agrees that: (i) this Warrant may not be exercised more
than five years from the Effective Date; (ii) the Holder shall not have any registration rights and shall not at any time in the
future have more than one demand registration right at the Company’s expense; (iii) the Holder shall not have the right to
demand registration of this Warrant or the Warrant Shares and shall not at any time in the future have the right to demand registration
of this Warrant or the Warrant Shares more than five years from the earlier of the Effective Date or the commencement of sales
of the public offering contemplated by the Placement Agent Agreement; (iv) the Holder shall not have the right to piggyback registration
with respect to this Warrant or the Warrant Shares and shall not at any time in the future have the right to piggy back registration
of this Warrant or the Warrant Shares more than seven years from the earlier of the Effective Date or the commencement of sales
of the public offering contemplated by the Placement Agenct Agreement; (v) this Warrant may not have anti-dilution terms that allow
the Holder and related persons to receive more shares or to exercise at a lower price than originally agreed upon at the time of
the public offering, when the public stockholders have not been proportionally affected by a stock split, stock dividend, or other
similar event; and (vi) this Warrant may not have anti-dilution terms that allow the Holder and related persons to receive or accrue
cash dividends prior to the exercise or conversion of the security.

(b)    
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the principal
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges will be dated
the Initial Exercise Date set forth on the first page of this Warrant and will be identical with this Warrant except as to the
number of Warrant Shares issuable pursuant thereto.

(c)    
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may
deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

5.      
Miscellaneous.

(a)    
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends
or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly
set forth in Section 3.

(b)    
Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and
in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon surrender and cancelation
of such Warrant or stock certificate, if mutilated, the Company shall make and deliver a new Warrant or stock certificate of like
tenor, in lieu of such Warrant or stock certificate.

(c)    
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein is not a business day, then such action may be taken or such right may be exercised on the
next succeeding business day.

(d)    
Authorized Shares. During the period the Warrant is outstanding, the Company shall reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any
purchase rights under this Warrant. The Company’s issuance of this Warrant will constitute full authority to the Company’s
officers, who are charged with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon
the exercise of the purchase rights under this Warrant. The Company shall take all such reasonable action as may be necessary to
assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any
requirements of the Trading Market upon which the Common Stock may be listed. All Warrant Shares that may be issued upon the exercise
of this Warrant will, upon such exercise and payment for such Warrant Shares in accordance herewith, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

Except and to the extent as waived or
consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation
or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but shall at all times
in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate
to protect the rights of the Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing,
the Company shall (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately
prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof, as may be necessary to enable the Company to perform its obligations under this Warrant.

Before taking any action that would
result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company
shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

(e)    
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant
shall be determined in accordance with the provisions of the Purchase Agreement.

(f)     
Holder Representations, Warranties, Acknowledgements and Agreements. Upon any exercise or transfer of this Warrant
(in whole or part), the Holder shall confirm the accuracy in all respects of its representations and warranties set forth in the
Purchase Agreement as of the date of such exercise or transfer, and shall reaffirm its covenants set forth in the Purchase Agreement.

(g)    
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part
of a party will operate as a waiver of such right or otherwise prejudice the party’s rights, powers or remedies. Without
limiting any other provision of this Warrant or the Purchase Agreement, if a party willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the other party, the offending party shall pay to the offended
party such amounts as are sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’
fees, incurred by the offended party in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights,
powers or remedies hereunder.

(h)    
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the
Company must be delivered in accordance with the notice provisions of the Purchase Agreement.

(i)      
Limitation of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this
Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability
of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company.

(j)     
Remedies. The parties, in addition to being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to specific performance of its rights under this Warrant. The parties acknowledge that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby
agree to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

(k)    
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced
hereby will inure to the benefit of and be binding upon the successors and permitted assigns of the parties. The provisions of
this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and will be enforceable by the
Holder or holder of Warrant Shares.

(l)      
Amendment. This Warrant has been issued pursuant to Section 2(f) of the Placement Agent Agreement, dated as of August
__, 2014, by and between the Company and the Holder (the “Placement Agent Agreement”). Any term of this Warrant
may be amended or waived (including the adjustment provisions included in Section 3) upon the written consent of the Company and
the Holder.

(m)  
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

(n)    
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose,
be deemed a part of this Warrant.

[Signature Page Follows]

    	 

    	 

    

 

This Warrant is being signed as of the
date first stated above.

GUIDED THERAPEUTICS, INC.

 

By:_________________________________________

Name: Gene S. Cartwright

Title: President and Chief Executive Officer

 

 

 

 

 

 

 

    	 

    	 

    

 

NOTICE
OF EXERCISE

TO: GUIDED THERAPEUTICS, INC.

 

(1) The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only
if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.

 

(2) Payment
shall take the form of (check applicable box):

 

[ ] in lawful money of the United States; or

 

[ ] [if permitted] the cancelation of such number
of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect
to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3) Please
issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

 

 

The Warrant Shares shall be delivered to the following DWAC Account
Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

The undersigned hereby confirms, as of the date hereof, that each
of its representations and warranties set forth in the Purchase Agreement is true and correct in all respects as of the date hereof,
and reaffirms all of its covenants set forth in the Purchase Agreement.

 

[SIGNATURE OF HOLDER]

 

Name of Entity:

 

_____________________________________________

 

 

 

By: _________________________________________________

 

Name of Authorized Signatory: ____________________________

 

Title of Authorized Signatory: ____________________________

 

 

Date: ______________, ____

 

 

    	 

    	 

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, [____] all of or [_______]
shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

 

_______________________________________________ whose address is

 

_______________________________________________________________.

 

 

The undersigned hereby confirms, as of the date hereof, that each
of its representations and warranties set forth in the Purchase Agreement is true and correct in all respects as of the date hereof,
and reaffirms all of its covenants set forth in the Purchase Agreement.

 

[SIGNATURE OF HOLDER]

 

Name of Entity:

 

_____________________________________________

 

 

 

By: _________________________________________________

 

Name of Authorized Signatory: ____________________________

 

Title of Authorized Signatory: ____________________________

 

Date: ______________, ____

 

 

 

 

 

[1]
The Company has agreed to issue this Warrant to purchase Warrant Shares equal to an aggregate of up to 4.5% of the total shares
of common stock sold in the offering, at an exercise price of 125% of the public offering price. The calculation of the number
of Warrant Shares to be received hereunder will not be based on the number of shares of Common Stock which are underlying the warrants
to be issued in the offering contemplated by the Placement Agent Agreement.

[2]
Five-year anniversary of date of issuance.

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