Document:

exv10w11

Exhibit 10.11

Execution Version

	 	 	 

	WHEN RECORDED OR FILED,
	 	 
	PLEASE RETURN TO:
	 	 
	Vinson & Elkins L.L.P.
	 	 
	1001 Fannin Street, Suite 2500
	 	 
	Houston, Texas 77002
	 	 
	Attention: Linda Daugherty
	 	 
	 
	 	 
	 

	 	 
	 

	 	Space above for County Recorder’s Use

MORTGAGE, ASSIGNMENT OF LEASES,

SECURITY AGREEMENT, FIXTURE FILING

AND FINANCING STATEMENT

FROM

ENERGY CORPORATION OF AMERICA,

as MORTGAGOR

TO

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

AS TRUSTEE OF ECA MARCELLUS TRUST I,

as MORTGAGEE

Dated as of July 7, 2010

A CARBON, PHOTOGRAPHIC, FACSIMILE, OR OTHER REPRODUCTION OF THIS

INSTRUMENT IS SUFFICIENT AS A FINANCING STATEMENT.

 

 

THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS.

THIS INSTRUMENT SECURES PAYMENT OF FUTURE ADVANCES PURSUANT TO 42 PA.C.S. § 8144.

THIS INSTRUMENT COVERS PRODUCTS AND PROCEEDS OF THE MORTGAGED PROPERTIES.

THIS INSTRUMENT COVERS MINERALS AND OTHER SUBSTANCES OF VALUE WHICH MAY BE EXTRACTED FROM THE EARTH
(INCLUDING WITHOUT LIMITATION OIL AND GAS) AND THE ACCOUNTS RELATED THERETO, WHICH WILL BE FINANCED
AT THE WELLHEADS OF THE WELL OR WELLS LOCATED ON THE MORTGAGED PROPERTIES DESCRIBED HEREIN. THIS
FINANCING STATEMENT IS TO BE FILED OR FILED FOR RECORD, AMONG OTHER PLACES, IN THE REAL ESTATE
RECORDS OR SIMILAR RECORDS OF THE RECORDERS OF THE COUNTIES LISTED ON THE EXHIBITS HERETO. THE
MORTGAGOR HAS AN INTEREST OF RECORD IN THE REAL ESTATE AND IMMOVABLE PROPERTY CONCERNED, WHICH
INTEREST IS DESCRIBED IN THE EXHIBITS ATTACHED HERETO.

PORTIONS OF THE MORTGAGED PROPERTIES ARE GOODS WHICH ARE OR ARE TO BECOME AFFIXED TO OR FIXTURES ON
THE LAND DESCRIBED IN OR REFERRED TO IN THE EXHIBITS HERETO. THIS FINANCING STATEMENT IS TO BE
FILED FOR RECORD OR RECORDED, AMONG OTHER PLACES, IN THE REAL ESTATE RECORDS OR SIMILAR RECORDS OF
EACH COUNTY IN WHICH SAID LAND OR ANY PORTION THEREOF IS LOCATED. THE MORTGAGOR IS THE OWNER OF
RECORD INTEREST IN THE REAL ESTATE CONCERNED. THIS INSTRUMENT IS ALSO TO BE INDEXED IN THE INDEX
OF FINANCING STATEMENTS OR THE UCC RECORDS.

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MORTGAGE, ASSIGNMENT OF LEASES,

SECURITY AGREEMENT, FIXTURE FILING

AND FINANCING STATEMENT

     THIS MORTGAGE, ASSIGNMENT OF LEASES, SECURITY AGREEMENT, FIXTURE FILING AND FINANCING
STATEMENT (this “Mortgage”) is entered into as of July 7, 2010 by Energy Corporation of America, a
West Virginia corporation (herein called “Mortgagor”), whose address for notice is 4643 South
Ulster Street, Suite 1100, Denver, CO 80237, and The Bank of New York Mellon Trust Company, N.A.,
acting not in its individual capacity but solely as trustee of ECA Marcellus Trust I, a Delaware
statutory trust (the “Trust”), as mortgagee (“Mortgagee”) whose address for notice is c/o The Bank
of New York Mellon Trust Company, N.A., 919 Congress Avenue, Suite 500, Austin Texas 78701.

R E C I T A L S:

     A. By means of (1) a Term Overriding Royalty Interest Conveyance (PUD) dated as of July 7,
2010 (the “Term Conveyance (PUD)”) from Mortgagor to Eastern Marketing Corporation, a true and
correct copy of which is annexed hereto as Annex A-1 and made a part hereof, (2) a Term Overriding
Royalty Interest Conveyance (PDP) dated as of July 7, 2010 (the “Term Conveyance (PDP)” and
together with Term Conveyance (PUD) collectively the “Term Conveyances”) from Mortgagor to Eastern
Marketing Corporation, a true and correct copy of which is annexed hereto as Annex A-2 and made a
part hereof, (3) a Perpetual Overriding Royalty Interest Conveyance (PUD) dated as of July 7, 2010
(the “Perpetual Conveyance (PUD)”) from Mortgagor to Mortgagee, a true and correct copy of which is
annexed hereto as Annex A-3 and made a part hereof, and (4) a Perpetual Overriding Royalty Interest
Conveyance (PDP) dated as of July 7, 2010 (the “Perpetual Conveyance (PDP)” and together with the
Perpetual Conveyance (PUD) collectively the “Perpetual Conveyances”) from Mortgagor to Mortgagee, a
true and correct copy of which is annexed hereto as Annex A-4 and made a part hereof, Mortgagor has
conveyed and assigned to Mortgagee or Eastern Marketing Corporation, as applicable, the “Royalty
Interest”, as defined therein and herein so called. Each of the Term Conveyances and the Perpetual
Conveyances are hereinafter referred to each individually a “Conveyance,” and collectively
“Conveyances.” Reference is made to the Conveyances for the meaning of capitalized terms that are
defined therein (and not otherwise defined herein), which terms shall have the same meanings when
used herein.

     B. Eastern Marketing Corporation has assigned the Term Conveyances and all rights
thereunder to the Mortgagee, and consequently the Mortgagee holds all of the Royalty Interest
described above.

     C. Mortgagor is executing and delivering this Mortgage in order to provide protection to
the Trust, in the event of a bankruptcy of Mortgagor, against the risk that the Royalty Interests
created by the Conveyances to Mortgagee or Eastern Marketing Corporation, as applicable, were not
considered a real property interest.

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     D. Each Royalty Interest is carved out of the applicable Subject Interests. Mortgagor’s
interests in each of the Subject Interests (including Mortgagor’s reversionary interests therein),
after giving effect to the Conveyances, are herein called the “Retained Interests.”

     E. The Mortgaged Properties (as hereinafter defined) include (but are not limited to)
interests in the Subject Lands described on Exhibit A to each of the Conveyances attached hereto
and conveyed to Mortgagee or Eastern Marketing Corporation, as applicable, which Exhibits A are
incorporated herein by reference for all purposes. This Mortgage is to be recorded in Greene
County, Pennsylvania.

     F. Mortgagee has conditioned its execution and delivery of the Conveyances upon the execution
and delivery by Mortgagor of this Mortgage, and Mortgagor has agreed to enter into this Mortgage.

     NOW, THEREFORE, in order to comply with the terms and conditions of the Conveyances and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Mortgagor hereby agrees with Mortgagee as follows:

ARTICLE I.

Granting Clauses; Secured Obligations

     Section 1.1 Grant and Mortgage. Mortgagor, in order to secure the payment and
performance of the secured obligations hereinafter referred to and the performance of the
obligations, covenants, agreements, warranties and undertakings of Mortgagor hereinafter described,
does hereby GRANT, BARGAIN, SELL, ALIEN, CONVEY, TRANSFER, MORTGAGE, ASSIGN, WARRANT, PLEDGE,
HYPOTHECATE and CONFIRM to Mortgagee, its successors and assigns, for the benefit of Mortgagee,
with mortgage covenants, and upon the statutory mortgage condition for the breach of which this
Mortgage may be subject to foreclosure as provided by applicable law, all of the following
described rights, interests and properties, to the extent applicable and subject to the
Conveyances, which are located in Greene County, Pennsylvania (the “Mortgaged Properties”):

     (a) All of Mortgagor’s right, title, interest and estate, if any, in and to the Subject
Interests conveyed to Mortgagee or Eastern Marketing Corporation, as applicable, pursuant to
the Conveyances, including those certain oil, gas or other mineral leases (the “Gas Leases”)
in the Subject Lands more particularly described on Exhibit “A” to the Conveyances attached
hereto and Additional Leases within the Target Formation within the AMI Area, except the
Retained Interests (the “Mortgaged Interests”) and expressly limited to such Mortgaged
Interests pertaining to Gas in, under and that may be produced, saved or sold from the
Target Formation from the wellbores of the Wells or the Development Wells, sufficient to
cause the Trust to receive a volume of Trust Gas or Assignee Gas, as applicable, calculated
in accordance with the provisions of the Conveyances;

     (b) All rights, titles, interests and estates now owned or hereafter acquired by
Mortgagor in and to all Subject Gas, including all oil, gas, casinghead gas, condensate,

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distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined
therefrom and all other minerals (collectively called the “Hydrocarbons”) which may be
produced and saved from or are attributable to the Mortgaged Interests, including all oil in
tanks and all profits, proceeds, products, revenues and other income from or attributable to
the Hydrocarbons produced from the Mortgaged Interests, except the Retained Interests
(collectively the “Mortgaged Gas”) and expressly limited to such Mortgaged Gas pertaining to
Gas in, under and that may be produced, saved or sold from the Target Formation from the
wellbores of the Wells or the Development Wells, sufficient to cause the Trust to receive a
volume of Trust Gas or Assignee Gas, as applicable, calculated in accordance with the
provisions of the Conveyances;

     (c) All easements, servitudes, rights-of-way, surface leases and other surface rights
on and over the Subject Lands (the “Surface Rights”) which are now or hereafter used, or
held for use, in connection with the Mortgaged Interest;

     (d) All licenses, permits and other regulatory approvals held by Mortgagor to the
extent relating to the Mortgaged Interests;

     (e) All proceeds of all of the rights, titles and interests of Mortgagor described in
the foregoing paragraphs (a) through (d) whether such proceeds or payments are goods, money,
documents, instruments, chattel paper, securities, accounts, payment intangibles, general
intangibles, fixtures, real, personal or other assets; and

     (f) Any and all liens, security interests, financing statements or similar interests of
Mortgagor attributable to the Mortgaged Interests or the Mortgaged Gas and proceeds of runs
therefrom arising under or created by any statutory provision, judicial decision or
otherwise.

     TO HAVE AND TO HOLD the Mortgaged Properties unto Mortgagee, and Mortgagee’s successor and
assigns, for the benefit of the Mortgagee, upon the terms, provisions and conditions herein set
forth.

     Section 1.2 Grant of Security Interest; Fixture Filing. In order to further secure
the payment of the secured obligations hereinafter referred to and the performance of the
obligations, covenants, agreements, warranties, indemnities and undertakings of Mortgagor
hereinafter described, Mortgagor does hereby grant to Mortgagee a security interest in and to the
Mortgaged Properties (whether now owned or hereafter acquired by operation of law or otherwise)
insofar as the Mortgaged Properties consists of personal property of any kind or character defined
in and subject to the provisions of Article 9 of the Uniform Commercial Code as in effect from time
to time as part of the laws applicable to this Mortgage (the “Applicable UCC”), including the
proceeds and products from any and all of such personal property (such personal property and
proceeds and products therefrom being herein sometimes collectively called the “Collateral”).
Except as otherwise expressly provided in this Mortgage, all terms in this Mortgage relating to the
Mortgaged Properties and the grant of the foregoing security interest which are defined in the
Applicable UCC shall have the meanings assigned to them in Article 9 (or, absent definition in
Article 9, in any other Article) of the Applicable UCC, as those meanings may be amended,

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revised or replaced from time to time. Notwithstanding the foregoing, the parties intend that
the terms used herein which are defined in the Applicable UCC have, at all times, the broadest and
most inclusive meanings possible. If the Applicable UCC shall in the future be amended or held by
a court to define any term used herein more narrowly, or less inclusively, than the UCC in effect
on the date of this Mortgage, such amendment or holding shall be disregarded in defining terms used
in this Mortgage.

     This Mortgage constitutes a security agreement, fixture filing and financing statement as
those terms are used in the Uniform Commercial Code of the State in which the Mortgaged Property is
located (the “PA UCC”). For purposes of this Section 1.2, this Mortgage is to be filed and
recorded in, among other places, the real estate records of the County in which the Mortgaged
Properties are is located and the following information is included: (1) Mortgagor shall be deemed
the “Debtor” with the address set forth for Mortgagor on the first page of this Mortgage which
Mortgagor certifies is accurate; (2) Mortgagee shall be deemed to be the “Secured Party” with the
address set forth for Mortgagee on the first page of this Mortgage and shall have all of the rights
of a secured party under the PA UCC; (3) this Mortgage covers goods which are or are to become
fixtures; (4) the name of the record owner of the Mortgaged Properties is Energy Corporation of
America, the Debtor; (5) the organizational identification number of the Debtor is none; (6) the
Debtor is a corporation organized under the laws of the State of West Virginia; and (7) the legal
name of the Debtor is Energy Corporation of America. The Debtor hereby authorizes Mortgagee to
file any financing statements and terminations thereof or amendments or modifications thereto
without the signature of the Debtor, where permitted by law; provided, however, this authorization
does not release Mortgagor from its general duty under this Mortgage, or the Conveyances to take
all actions necessary to perfect and maintain the perfected interest of Mortgagee in the Mortgaged
Properties.

     Section 1.3 Assignment of Leases and Income.

     (a) This Mortgage is also an absolute and unconditional assignment to Mortgagee of the
Gas Leases, whether now in existence or hereafter arising, for the purpose of vesting in
Mortgagee, subject to the Permitted Encumbrances (as defined in the Conveyances attached
hereto as Annex A-1, Annex A-2, Annex A-3 and Annex A-4), a, perfected security interest in
the Gas Leases. Mortgagor hereby assigns, transfers and sets over to Mortgagee all of the
Gas Leases insofar and only insofar to the extent pertaining to the Mortgaged Interests.

     (b) So long as no default (as hereinafter defined) has occurred and is then continuing,
Mortgagor shall have a license, revocable at the will of Mortgagee following the occurrence
and continuation of a default, to enforce the Gas Leases and exercise Mortgagor’s rights
thereunder.

     (c) Notwithstanding any legal presumption to the contrary, Mortgagee shall not be
obligated by reason of its acceptance of this assignment to perform any obligation of
Mortgagor as lessee under any Gas Lease. The acceptance of this assignment shall not
constitute a waiver of any rights of Mortgagee under the Conveyances or constitute a cure of
any default by Mortgagor thereunder.

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     Section 1.4 Conveyances and Other Obligations. This Mortgage is made to secure and
enforce the payment and performance of the following, obligations, indebtedness and liabilities in
the event that the Mortgagor has filed for bankruptcy and the Royalty Interest is determined by a
bankruptcy court to be not a real property interest:

     (a) The full performance of all obligations, covenants, agreements and undertakings of
and by Mortgagor from time to time owing to Mortgagee under the Conveyances for the delivery
of such volume of Trust Gas or Assignee Gas, as applicable, calculated in accordance with
the provisions of the Conveyances;

     (b) Any sums advanced or expenses or costs incurred by the Mortgagee (or any receiver
appointed hereunder) which are made or incurred pursuant to, or permitted by, the terms
hereof, plus interest thereon at the Applicable Rate (as defined hereinafter) or otherwise
agreed upon, from the date of the advances or the incurring of such expenses or costs until
reimbursed; and

     (c) Without limiting the generality of the foregoing, all post-petition interest,
expenses, and other duties, damages and liabilities with respect to indebtedness or other
obligations described above in this Section 1.4, which would be owed but for the
fact that they are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization, or similar proceeding.

     Section 1.5 Secured Obligations. The obligations referred to in Section 1.4,
and all renewals, extensions and modifications thereof, and all substitutions therefor, in whole or
in part, are herein sometimes referred to as the “secured obligations” or the “obligations secured
hereby”. It is contemplated and acknowledged that the secured obligations may include obligations
hereafter arising and that this Mortgage shall have effect, as of the date hereof, to secure all
secured obligations, regardless of whether any amounts exist on the date hereof or arise on a later
date or, whether having arisen or been advanced, are later repaid in part or in whole and further
obligations arise or advances are made at a later date.

     Section 1.6 Maturity Date. The obligations, covenants, agreements and undertakings of
and by Mortgagor from time to time owing to Mortgagee are due to be performed on and before the
date that the Trust is terminated, such date of termination of the Trust shall be the maturity date
of this Mortgage.

ARTICLE II.

Covenants

     Section 2.1 Subject to the Conveyances, Mortgagor warrants, represents, covenants and agrees
that at the time of the execution of Conveyances to Mortgagee or Eastern Marketing Corporation, as
applicable, the Mortgaged Properties were free and clear of all liens, security interests and other
Encumbrances, subject only to the Permitted Encumbrances and the Drilling Support Lien, and that,
to Mortgagor’s knowledge, as of the date of the Conveyances, Mortgagor was lawfully seized of the
estates and interests granted to Mortgagor under the Gas Leases and any instruments evidencing
Surface Rights. Mortgagor has heretofore conveyed its interest in and to

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the Mortgaged Properties to Mortgagee or Eastern Marketing Corporation, as applicable, and
this Mortgage is only being granted to provide protection to the Trust in the event of bankruptcy
of Mortgagor against the risk that the Royalty Interests were not real property interests. This
Mortgage is subject to (but in no event shall this Mortgage be an assumption of) the Permitted
Encumbrances and the Drilling Support Lien, in each case to the extent and only for so long as the
same are valid and subsisting and affect title to the Mortgaged Properties; provided that, with the
exception of the Drilling Support Lien, the foregoing is not intended to, and shall not,
subordinate the first priority lien on the entire right, title and interest, if any, of the
Mortgagor in the Mortgaged Properties created hereby.

     Section 2.2 Mortgagor hereby covenants with the Mortgagee as follows:

     (a) Further Assurance. Mortgagor will, on request of Mortgagee, (i) promptly
correct any defect, error or omission which may be discovered in the contents of this
Mortgage, or in the execution or acknowledgment of this Mortgage; (ii) execute,
acknowledge, deliver and record or file such further instruments (including further
mortgages, security agreements, financing statements, continuation statements, and
assignments of accounts, funds, contract rights, and general intangibles) and do such
further acts as may be necessary, desirable or proper to carry out more effectively the
purposes of this Mortgage; and (iii) execute, acknowledge, deliver, and file or record any
document or instrument (including specifically any financing statement) reasonably requested
by Mortgagee to protect the lien or the security interest hereunder against the rights or
interests of third persons. Mortgagor shall pay all reasonable costs connected with any of
the foregoing.

     (b) Name and Place of Business. Mortgagor will not cause or permit any change
to be made in its name, identity, limited liability company structure, federal employer
identification number or state of organization (whether by merger or otherwise) unless
Mortgagor shall have notified Mortgagee of such change at least ten (10) days prior to the
effective date of such change, and shall have first taken all action required by Mortgagee
for the purpose of further perfecting or protecting the liens and security interests in the
Mortgaged Properties created hereby. Mortgagor’s exact name is the name set forth in this
Mortgage. Mortgagor is a corporation organized under the laws of the State of West
Virginia.

ARTICLE III.

Assignment of Production, Accounts, and Proceeds

     Section 3.1 Assignment of Production. Subject to the Conveyances, to further secure
the secured obligations, Mortgagor hereby assigns, transfers and conveys unto Mortgagee, its
successors and assigns, all of Mortgagor’s right, title and interests in and to the Hydrocarbons
attributable to the Trust Gas or Assignee Gas (but specifically excluding all Gas pertaining to the
Retained Interests) and the revenues and proceeds attributable to such Hydrocarbons and all
accounts arising therefrom or in connection therewith and all payments in lieu of such Hydrocarbons
such as “take or pay” payments or settlements (all of the foregoing, the “Production

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Proceeds”). Upon the occurrence and during the continuation of a default, Mortgagee is fully
authorized to receive and receipt for the Production Proceeds; to endorse and cash any and all
checks and drafts payable to the order of Mortgagor or Mortgagee for the account of Mortgagor
received from or in connection with the Production Proceeds; and to execute transfer and division
orders in the name of Mortgagor, or otherwise, with warranties binding Mortgagor. All Production
Proceeds received by Mortgagee pursuant to this Section 3.1 during the continuance of a
default, or otherwise from time to time in the possession of Mortgagee, shall be applied to the
secured obligations due hereunder and in the event no secured obligations are currently due or are
fully paid, any remaining Production Proceeds will be paid to Mortgagor. Mortgagee shall not be
liable for any delay, neglect or failure to effect collection of any Production Proceeds or to take
any other action in connection therewith or hereunder; but Mortgagee shall have the right,
exercisable at its election at any time after a default has occurred and is continuing, in the name
of Mortgagor or otherwise, to prosecute and defend any and all actions or legal proceedings deemed
advisable by Mortgagee in order to collect such funds and to protect the interests of Mortgagee or
Mortgagor, with all costs, expenses and attorneys’ fees incurred in connection therewith being paid
by Mortgagor and until so paid being a part of the secured obligations secured by this Mortgage.
Mortgagor agrees to perform all such acts, and to execute all such further assignments, transfer
orders and division orders, and other instruments as may be required or desired by Mortgagee or any
party in order to effectuate the provisions contained in this Section 3.1.

     Section 3.2 No Modification of Payment Obligations. Nothing herein contained shall
modify or otherwise alter, limit or modify the absolute obligation of Mortgagor to make prompt
payment of all secured obligations when and as the same become due regardless of whether the
Production Proceeds are sufficient to pay the same and the rights provided in accordance with the
foregoing assignment provision shall be cumulative of all other security of any and every character
now or hereafter existing to secure payment of the secured obligations.

     Section 3.3 Effectuating Payment of Production Proceeds to Mortgagee. If under any
existing sales agreements, other than division orders or transfer orders, any Production Proceeds
are required to be paid by the purchaser to Mortgagor so that under such existing agreements
payment cannot be made of such Production Proceeds to Mortgagee, Mortgagor’s interest in all
Production Proceeds under such sales agreements and in all other Production Proceeds which for any
reason may be paid to Mortgagor during the continuance of a default shall, when received by
Mortgagor, constitute trust funds in Mortgagor’s hands and shall be immediately paid over to
Mortgagee.

     Section 3.4 Release from Liability. Mortgagee and its successors and assigns are
hereby released and absolved from all liability for failure to enforce collection of the Production
Proceeds and from all other responsibility in connection therewith, except the responsibility of
each to account to Mortgagor for funds actually received by each.

ARTICLE IV.

Remedies Upon Default

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     Section 4.1 Default. The term “default” as used in this Mortgage means:

     (a) Mortgagor or its successor shall (i) voluntarily commence any proceeding or file
any petition seeking liquidation, reorganization or other relief under any federal or state
bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii)
consent to the institution of, or fail to contest within 60 days in an appropriate manner,
any involuntary bankruptcy, insolvency or receivership proceeding or petition commenced or
filed against Mortgagor (collectively, a “Bankruptcy Proceeding”) and the Mortgaged
Properties are in any way determined by the applicable bankruptcy court to be a part of the
Mortgagor’s bankruptcy estate; and

     (b) failure by the Mortgagor, within thirty (30) days after notice thereof from the
Mortgagee, to cure a breach of payment default occurring under the Conveyances existing at
the time of, or occurring after, such filing of the Bankruptcy Proceeding.

     Section 4.2 Remedies.

     (a) If a default shall occur and be continuing, to the extent provided by applicable
law, the Mortgagee shall have the right and option to (i) proceed with an action in mortgage
foreclosure and to sell all or any portion of such Mortgaged Properties at one or more
sales, as an entirety or in parcels, at such place or places in otherwise such manner and
upon such notice as may be required by law, or, in the absence of any such requirement, as
the Mortgagee may deem appropriate, and to make conveyance to the purchaser or purchasers;
or (ii) obtain a judgment for the secured obligations (including amounts advanced by
Mortgagee hereunder to protect the Mortgaged Properties or the liens and security interests
in the Mortgaged Properties created hereby, all costs and expenses of collection and suit,
including any bankruptcy or insolvency proceeding affecting Mortgagor, and reasonable
attorneys’ fees incurred in connection with the foregoing) together with interest on such
judgment until payment in full is received by Mortgagee. Mortgagee shall have the authority
while so in possession to insure (at Mortgagor’s expense) against all risks by reason of
having taken such possession and Mortgagor will transfer and deliver to the Mortgagee all
policies of insurance upon the Mortgaged Properties not theretofore transferred and
delivered to Mortgagee and Mortgagee shall have the right to obtain execution upon the
Mortgaged Properties on account of such judgment. Where the Mortgaged Properties are
situated in more than one jurisdiction, notice as above provided shall be posted and filed
in all such jurisdictions (if such notices are required by applicable law), and all such
Mortgaged Properties may be sold in any such jurisdiction and any such notice shall
designate the jurisdiction where such Mortgaged Properties are to be sold. Nothing
contained in this Section 4.2 shall be construed so as to limit in any way any
rights to sell the Mortgaged Properties or any portion thereof by private sale if and to the
extent that such private sale is permitted under the applicable law of the applicable
jurisdiction or by public or private sale after entry of a judgment by any court of
competent jurisdiction so ordering. The Mortgagor hereby irrevocably appoints, effective
upon the occurrence and during the continuance of a default, the Mortgagee, with full power
of substitution, to be the attorney-in-fact of the Mortgagor and in the name and on behalf
of the Mortgagor to execute and deliver any deeds, transfers, conveyances,

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assignments, assurances and notices which the Mortgagor ought to execute and deliver
and do and perform any and all such acts and things which the Mortgagor ought to do and
perform under the covenants herein contained and generally, to use the name of the Mortgagor
in the exercise of all or any of the powers hereby conferred on the Mortgagee. At any such
sale: (1) it shall not be necessary for the Mortgagee to have physical or constructive
possession of the Mortgaged Properties (the Mortgagor hereby covenanting and agreeing to
deliver any portion of the Mortgaged Properties not actually or constructively possessed by
the Mortgagee immediately upon the Mortgagee’s demand) and the title to and right of
possession of any such property shall pass to the purchaser thereof as completely as if the
same had been actually present and delivered to purchaser at such sale, (2) each instrument
of conveyance executed by the Mortgagee shall contain a special warranty of title, binding
upon the Mortgagor and its successors and assigns, (3) each and every recital contained in
any instrument of conveyance made by the Mortgagee shall conclusively establish the truth
and accuracy of the matters recited therein, including, without limitation, nonpayment or
nonperformance of the secured obligations, advertisement and conduct of such sale in
accordance with applicable law, (4) any and all prerequisites to the validity thereof shall
be conclusively presumed to have been performed, (5) the receipt of the Mortgagee or of such
other party or officer making the sale shall be a sufficient discharge to the purchaser or
purchasers for its purchase money and no such purchaser or purchasers, or its assigns or
personal representatives, shall thereafter be obligated to see to the application of such
purchase money, or be in any way answerable for any loss, misapplication or nonapplication
thereof, (6) to the fullest extent permitted by applicable law, the Mortgagor shall be
completely and irrevocably divested of all of its right, title, interest, claim and demand
whatsoever, either at law or in equity, in and to the Mortgaged Property sold and such sale
shall be a perpetual bar both at law and in equity against the Mortgagor, and against any
and all other persons claiming or to claim the property sold or any part thereof, by,
through or under the Mortgagor, and (7) to the extent and under such circumstances as are
permitted by law, the Mortgagee may be a purchaser at any such sale, and shall have the
right, after paying or accounting for all costs of said sale or sales, to credit the amount
of the bid upon the amount of the secured obligations (in the order of priority set forth in
Section 4.4) in lieu of cash payment.

     (b) If a default shall occur and be continuing, Mortgagee may exercise its rights of
enforcement with respect to the Collateral under the Applicable UCC, or under any other
statute in force in any state to the extent the same is applicable law. Cumulative of the
foregoing and the other provisions of this Section 4.2, to the extent permitted by
applicable law:

     (i) upon the occurrence and during the continuance of a default Mortgagee may
enter upon the Mortgaged Properties or otherwise upon Mortgagor’s premises to take
possession of, assemble and collect the Collateral or to render it unusable;

     (ii) upon the occurrence and during the continuance of a default Mortgagee may
require Mortgagor to assemble the Collateral and make it available

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at a place Mortgagee designates which is mutually convenient to allow Mortgagee
to take possession or dispose of the Collateral;

     (iii) written notice mailed to Mortgagor as provided herein at least ten (10)
days prior to the date of public sale of the Collateral or prior to the date after
which private sale of the Collateral will be made shall constitute reasonable
notice;

     (iv) in the event of a foreclosure of the liens, privileges or security
interests evidenced hereby, the Collateral, or any part thereof, and the Mortgaged
Properties, or any part thereof, may, at the option of Mortgagee, be sold, as a
whole or in parts, together or separately (including, without limitation, where a
portion of the Mortgaged Properties is sold, the Collateral related thereto may be
sold in connection therewith);

     (v) the expenses of sale provided for in clause FIRST of Section 4.4
shall include the reasonable expenses of retaking the Collateral, or any part
thereof, holding the same and preparing the same for sale or other disposition;

     (vi) should, under this subsection, the Collateral be disposed of other than by
sale, any proceeds of such disposition shall be treated as if the same were sales
proceeds; and

     (vii) upon the occurrence and during the continuance of a default, Mortgagee
may, to the extent permitted under applicable law, elect to treat the fixtures
included in the Collateral either as real property or as personal property, or both,
and proceed to exercise such rights as apply thereto. With respect to any sale of
real property included in the Mortgaged Properties made under the powers of sale
herein granted and conferred, Mortgagee may, to the extent permitted by applicable
law, include in such sale any personal property and fixtures included in the
Collateral and relating to such real property.

     (c) To the extent permitted by applicable law, the sale hereunder of less than the
whole of the Mortgaged Properties shall not exhaust the right to judicial foreclosure, and
one or more successive sales may be made until the whole of the Mortgaged Properties shall
be sold, and, if the proceeds of such sale of less than the whole of the Mortgaged
Properties shall be less than the aggregate of the obligations secured hereby and the
expense of conducting such sale, this Mortgage and the liens, privileges and security
interests hereof shall remain in full force and effect as to the unsold portion of the
Mortgaged Properties just as though no sale had been made; provided, however, that Mortgagor
shall never have any right to require the sale of less than the whole of the Mortgaged
Properties. In the event any sale hereunder is not completed or is defective in the opinion
of Mortgagee, such sale shall not exhaust the right to judicial foreclosure, and Mortgagee
shall have the right to cause a subsequent sale or sales to be made. Any sale may be
adjourned by announcement at the time and place appointed for such sale without further
notice except as may be required by applicable law. Any and all statements of fact or other
recitals made in any deed or deeds, or other instruments of transfer, given in

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connection with a sale as to nonpayment of the secured obligations or as to the
occurrence of any default, or as all of the secured obligations having been declared to be
due and payable, or as to the request to sell, or as to notice of time, place and terms of
sale and the properties to be sold having been duly given, or as to any other act or thing
having been duly done, shall be taken as rebuttably presumptive evidence of the truth of the
facts so stated and recited. Notwithstanding any reference herein to the Conveyances, all
persons dealing with the Mortgaged Properties shall be entitled to rely on any document, or
certificate, of Mortgagee as to the occurrence of an event, such as a default, and shall not
be charged with or forced to review any provision of any other document to determine the
accuracy thereof. With respect to any sale held in foreclosure of the liens or security
interests covered hereby, it shall not be necessary for the Mortgagee, any public officer
acting under execution or order of the court or any other party to have physically present
or constructively in his/her or its possession, either at the time of or prior to such sale,
the Mortgaged Properties or any part thereof.

     Section 4.3 Receiver. In addition to all other remedies herein provided for,
Mortgagor agrees that, during the continuance of a default, Mortgagee shall as a matter of right be
entitled to the appointment of a receiver or receivers for all or any part of the Mortgaged
Properties, whether such receivership be incident to a proposed sale (or sales) of such property or
otherwise, and without regard to the value of the Mortgaged Properties or the solvency of any
person or persons liable for the payment of the obligations secured hereby, and Mortgagor does
hereby consent to the appointment of such receiver or receivers, waives any and all defenses to
such appointment, and agrees not to oppose any application therefor by Mortgagee. Mortgagor
expressly waives the necessity for bond or an accounting by the receiver. Nothing herein is to be
construed to deprive Mortgagee of any other right, remedy or privilege it may now or hereafter have
under the law to have a receiver appointed. Any money advanced by Mortgagee in connection with any
such receivership shall be a demand obligation (which obligation Mortgagor hereby expressly
promises to pay) owing by Mortgagor to Mortgagee and shall bear interest (the “Applicable Rate”),
from the date of making such advancement by Mortgagee until paid, provided, however, that in no
instance will the Applicable Rate be greater than the highest rate of interest that Mortgagee may
charge to Mortgagor under applicable law.

     Section 4.4 Proceeds of Foreclosure. The proceeds of any sale held in foreclosure of
the liens or security interests evidenced hereby shall be applied as follows, except as otherwise
required by applicable law:

     FIRST, to the payment of all necessary costs and expenses incident to such
foreclosure sale, including but not limited to reasonable attorney’s fees, all court costs
and charges of every character in the event foreclosed by suit or any judicial proceeding,
if any;

     SECOND, to be applied to the secured obligations as described in Section
1.4(a); and

     THIRD, the remainder, if any there shall be, shall be paid to Mortgagor, or to
Mortgagor’s successors or assigns, or such other persons as may be entitled thereto by law.

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     Section 4.5 Foreclosure as to Matured Debt. If a default shall occur and be
continuing, Mortgagee shall have the right to proceed with foreclosure of the liens, privileges or
security interests evidenced hereby without any requirement that the entire secured obligations
have become due, and in such event, any such foreclosure sale may be made subject to the unmatured
part of the secured obligations, in which event such foreclosure sale shall not in any manner
affect the unmatured part of the secured obligations but, as to such unmatured part, this Mortgage
shall remain in full force and effect as though no sale had been made. The proceeds of such sale
shall be applied as provided in Section 4.4. Several sales may be made hereunder without
exhausting the right of sale for any unmatured part of the secured obligations.

     Section 4.6 Remedies Cumulative. All remedies herein provided for are cumulative of
each other and of all other remedies existing at law or in equity and are cumulative of any and all
other remedies provided for in the Conveyances, if any, and, in addition to the remedies herein
provided, there shall continue to be available all such other remedies as may now or hereafter
exist at law or in equity for the collection of the secured obligations and the enforcement of the
covenants herein and the foreclosure of the liens or security interests evidenced hereby, and the
resort to any remedy provided for hereunder or under the Conveyances, if any, or provided for by
applicable law shall not prevent the concurrent or subsequent employment of any other appropriate
remedy or remedies.

     Section 4.7 Discretion as to Security. Mortgagee may resort to any security given by
this Mortgage or to any guaranty of the obligations secured hereby, in whole or in part, and in
such portions and in such order as may seem best to Mortgagee in its sole and uncontrolled
discretion, and any such action shall not in any way be considered as a waiver of any of the
rights, benefits, liens or security interests evidenced by this Mortgage.

     Section 4.8 Mortgagor’s Waiver of Certain Rights. To the full extent Mortgagor may do
so, Mortgagor agrees that Mortgagor will not at any time insist upon, plead, claim or take the
benefit or advantage of any law now or hereafter in force providing for any appraisement,
valuation, stay, extension or redemption, and Mortgagor, for Mortgagor, Mortgagor’s successors and
assigns, and for any and all persons ever claiming any interest in the Mortgaged Properties, to the
extent permitted by applicable law, hereby waives and releases all rights of appraisement,
valuation, stay of execution, redemption, notice of intention to mature or declare due the whole of
the secured obligations, notice of election to mature or declare due the whole of the secured
obligations and all rights to a marshaling of assets of Mortgagor, including the Mortgaged
Properties, or to a sale in inverse order of alienation in the event of foreclosure of the liens or
security interests hereby created. Mortgagor shall not have or assert any right under any statute
or rule of law pertaining to the marshaling of assets, sale in inverse order of alienation, the
exemption of homestead, the administration of estates of decedents, or other matters whatever to
defeat, reduce or affect the right under the terms of this Mortgage to a sale of the Mortgaged
Properties for the collection of the secured obligations without any prior or different resort for
collection, or the right under the terms of this Mortgage to the payment of the secured obligations
out of the proceeds of sale of the Mortgaged Properties in preference to every other claimant
whatever. If any law referred to in this section and now in force, of which Mortgagor or
Mortgagor’s successors or assigns or any other persons claiming any interest in the Mortgaged
Properties or the Collateral

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might take advantage despite this section, shall hereafter be repealed or cease to be in
force, such law shall not thereafter be deemed to preclude the application of this section.

     Section 4.9 No Release of Obligations. Neither Mortgagor nor any other Person
hereafter obligated for payment of all or any part of the secured obligations shall be relieved of
such secured obligations by reason of (i) the failure of Mortgagee or any other Person so obligated
to foreclose the lien of this Mortgage or to enforce any provision hereunder; or (ii) the release,
regardless of consideration, of the Mortgaged Properties or any portion thereof or interest therein
or the addition of any other property to the Mortgaged Properties. Mortgagee may release,
regardless of consideration, any part of the Mortgaged Properties without, as to the remainder, in
any way impairing, affecting, subordinating or releasing the lien or security interest created in
or evidenced by this Mortgage or its stature as a first and prior lien and security interest in and
to the Mortgaged Properties, and without in any way releasing or diminishing the liability of any
person or entity liable for the repayment or performance of the secured obligations. For payment
of the secured obligations, Mortgagee may resort to any other security therefor held by Mortgagee
in such order and manner as Mortgagee may elect.

     Section 4.10 Discontinuance of Proceedings. In case Mortgagee shall have proceeded to
invoke any right, remedy or recourse permitted hereunder or under the Conveyances and shall
thereafter elect to discontinue or abandon same for any reason, Mortgagee shall have the
unqualified right to do so and, in such an event, Mortgagor and Mortgagee shall be restored to
their former positions with respect to the secured obligations, this Mortgage, the Conveyances, the
Mortgaged Properties and otherwise, and the rights, remedies, recourses and powers of Mortgagee
shall continue as if same had never been invoked.

ARTICLE V.

Miscellaneous

     Section 5.1 Effective as a Financing Statement. This Mortgage, among other things,
covers goods which are or are to become fixtures on the real property described herein and covers
as-extracted collateral related to the real property described herein. This Mortgage shall be
effective as a financing statement (i) filed as a fixture filing with respect to all fixtures
included within the Mortgaged Properties, (ii) covering all as-extracted collateral included within
the Mortgaged Properties (including all oil, gas, other minerals and other substances of value
which may be extracted from the earth at the wellhead or minehead) and (iii) covering all other
Mortgaged Properties. This Mortgage is to be filed for record in the real property records of each
county where any part of the Mortgaged Properties is situated and may also be filed in the offices
of the Bureau of Land Management or any relevant state agency (or any successor agencies). The
mailing address of Mortgagor is the address of Mortgagor set forth at the end of this Mortgage and
the address of Mortgagee from which information concerning the security interests hereunder may be
obtained is the address of Mortgagee set forth at the end of this Mortgage. Nothing contained in
this paragraph shall be construed to limit the scope of this Mortgage nor its effectiveness as a
financing statement covering any type of Mortgaged Properties.

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     Section 5.2 Reproduction of Mortgage as Financing Statement; Authorization to File. A
carbon, photographic, facsimile or other reproduction of this Mortgage or of any financing
statement relating to this Mortgage shall be sufficient as a financing statement for any of the
purposes referred to in Section 5.1. Without limiting any other provision herein,
Mortgagor hereby authorizes Mortgagee to file, in any filing or recording office, one or more
financing statements describing the Collateral and any renewal or continuation statements thereof.

     Section 5.3 Notice to Account Debtors. In addition to, but without limitation of, the
rights granted in Article IV hereof, Mortgagee may, at any time after a default has a occurred that
is continuing, notify the account debtors or obligors of any accounts, chattel paper, negotiable
instruments or other evidences of obligations included in the Collateral to pay Mortgagee directly.

     Section 5.4 Waivers. Mortgagee may at any time and from time to time in writing waive
compliance by Mortgagor with any covenant herein made by Mortgagor to the extent and in the manner
specified in such writing, or consent to Mortgagor’s doing any act which hereunder Mortgagor is
prohibited from doing, or to Mortgagor’s failing to do any act which hereunder Mortgagor is
required to do, to the extent and in the manner specified in such writing, or release any part of
the Mortgaged Properties or any interest therein or any Production Proceeds from the lien and
security interest of this Mortgage. Any party liable, either directly or indirectly, for the
secured obligations or for any covenant herein or in the Conveyances may be released from all or
any part of such obligations without impairing or releasing the liability of any other party. No
such act shall in any way impair any rights or powers hereunder except to the extent specifically
agreed to in such writing.

     Section 5.5 No Impairment of Security. To the extent allowed by applicable law, the
lien, privilege, security interest and other security rights hereunder shall not be impaired by any
indulgence, moratorium or release which may be granted including, but not limited to, any renewal,
extension or modification which may be granted with respect to any secured obligations, or any
surrender, compromise, release, renewal, extension, exchange or substitution which may be granted
in respect of the Mortgaged Properties (including Production Proceeds), or any part thereof or any
interest therein, or any release or indulgence granted to any endorser, guarantor or surety of any
secured obligations.

     Section 5.6 Acts Not Constituting Waiver. Any default may be waived without waiving
any other prior or subsequent default. Any default may be remedied without waiving the default
remedied. Neither failure to exercise, nor delay in exercising, any right, power or remedy upon
any default shall be construed as a waiver of such default or as a waiver of the right to exercise
any such right, power or remedy at a later date. No single or partial exercise of any right, power
or remedy hereunder shall exhaust the same or shall preclude any other or further exercise thereof,
and every such right, power or remedy hereunder may be exercised at any time and from time to time.
No modification or waiver of any provision hereof nor consent to any departure by Mortgagor
therefrom shall in any event be effective unless the same shall be in writing and signed by
Mortgagee and then such waiver or consent shall be effective only in the specific instances, for
the purpose for which given and to the extent therein specified. No notice nor demand on Mortgagor
in any case shall of itself entitle Mortgagor to any other or further notice or demand in similar
or other circumstances. Acceptance of any payment in an amount less than the amount

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then due on any secured obligations shall be deemed an acceptance on account only and shall
not in any way excuse the existence of a default hereunder.

     Section 5.7 Forbearance or Extension. No forbearance and no extension of the time for
the payment of the obligations secured hereby, shall operate to release, discharge, modify, change
or affect, in whole or in part, the liability of Mortgagor hereunder for the payment of the
obligations or performance of the obligations secured hereby, or the liability of any other person
hereunder or for the payment of the obligations secured hereby.

     Section 5.8 Place of Payment. All secured obligations which may be owing hereunder at
any time by Mortgagor shall be payable at the place designated in the Conveyances (or if no such
designation is made, at the address of Mortgagee indicated at the end of this Mortgage), or at such
other place as Mortgagee may designate in writing.

     Section 5.9 Application of Payments to Certain Obligations. If any part of the
secured obligations cannot be lawfully secured by this Mortgage or if any part of the Mortgaged
Properties cannot be lawfully subject to the lien, privilege and security interest hereof to the
full extent of such obligations, then all payments made shall be applied on said obligations first
in discharge of that portion thereof which is not secured by this Mortgage.

     Section 5.10 Compliance With Usury Laws. It is the intent of Mortgagor and Mortgagee
to contract in strict compliance with applicable usury law from time to time in effect. In
furtherance thereof, it is stipulated and agreed that none of the terms and provisions contained
herein, or in the Conveyances shall ever be construed to create a contract to pay, for the use,
forbearance or detention of money, interest in excess of the maximum amount of interest permitted
to be collected, charged, taken, reserved or received by applicable law from time to time in
effect.

     Section 5.11 Release of Mortgage. Upon the termination of the Trust, Mortgagee shall
promptly cause satisfaction, discharge and release of this Mortgage to be entered upon the record
at the expense of Mortgagor and shall execute and deliver or cause to be executed and delivered
such instruments of satisfaction, reassignment and/or release as may be appropriate.

     Section 5.12 Notice. All notices, requests, consents, demands and other
communications required or permitted hereunder shall be in writing and shall be deemed sufficiently
given or furnished if delivered by personal delivery, by telefacsimile, by delivery service with
proof of delivery, or by registered or certified United States mail, postage prepaid, at the
addresses specified at the end of this Mortgage (unless changed by similar notice in writing given
by the particular party whose address is to be changed). Any such notice or communication shall be
deemed to have been given (a) in the case of personal delivery or delivery service, as of the date
of first attempted delivery at the address and in the manner provided herein, (b) in the case of
telefacsimile, upon receipt, and (c) in the case of registered or certified United States mail,
three (3) days after deposit in the mail. Notwithstanding the foregoing, any notice given in
connection with a foreclosure of the liens or security interests created hereunder, or otherwise in
connection with the exercise by Mortgagee of its rights hereunder, which is given in a manner
permitted by applicable law shall constitute proper notice; without limitation of the foregoing,
notice given in a

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form required or permitted by statute shall (as to the portion of the Mortgaged Properties to
which such statute is applicable) constitute proper notice.

     Section 5.13 Invalidity of Certain Provisions. A determination that any provision of
this Mortgage is unenforceable or invalid shall not affect the enforceability or validity of any
other provision and the determination that the application of any provision of this Mortgage to any
person or circumstance is illegal or unenforceable shall not affect the enforceability or validity
of such provision as it may apply to other persons or circumstances.

     Section 5.14 Gender; Titles; Construction. All references in this Mortgage to
articles, sections, subsections and other subdivisions refer to corresponding articles, sections,
subsections and other subdivisions of this Mortgage unless expressly provided otherwise. Titles
appearing at the beginning of any of such subdivisions are for convenience only and shall not
constitute part of such subdivisions and shall be disregarded in construing the language contained
in such subdivisions. The words “this Mortgage”, “this instrument”, “herein”, “hereof”,
"hereunder"' and words of similar import refer to this Mortgage as a whole and not to any
particular subdivision unless expressly so limited. Unless the context otherwise requires:
"including” and its grammatical variations mean “including without limitation”; “or” is not
exclusive; words in the singular form shall be construed to include the plural and vice versa;
words in any gender include all other genders; references herein to any instrument or agreement
refer to such instrument or agreement as it may be from time to time amended or supplemented; and
references herein to any Person include such Person’s successors and assigns. All references in
this Mortgage to exhibits and schedules refer to exhibits and schedules to this Mortgage unless
expressly provided otherwise, and all such exhibits and schedules are hereby incorporated herein by
reference and made a part hereof for all purposes. This Mortgage has been drafted with the joint
participation of Mortgagor and Mortgagee and shall be construed neither against nor in favor of
either such party but rather in accordance with the fair meaning hereof.

     Section 5.15 Recording. Mortgagor will cause this Mortgage and all amendments and
supplements thereto and substitutions therefor and all financing statements and continuation
statements relating thereto to be recorded, filed, re-recorded and refiled in such manner and in
such places as Mortgagee shall reasonably request and will pay all such recording, filing,
re-recording and refiling taxes, fees and other charges.

     Section 5.16 Certain Obligations of Mortgagor. Without limiting Mortgagor’s
obligations hereunder, Mortgagor’s liability hereunder and the obligations secured hereby shall
extend to and include all post petition interest, expenses and other duties and liabilities with
respect to Mortgagor’s obligations hereunder which would be owed but for the fact that the same may
be unenforceable due to the existence of a bankruptcy, reorganization or similar proceeding.

     Section 5.17 Authority of Mortgagee. All persons shall be entitled to rely on the
releases, waivers, consents, approvals, notifications and other acts of Mortgagee without the
joinder of any party other than Mortgagee in such releases, waivers, consents, approvals,
notifications or other acts.

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     Section 5.18 Counterparts. This Mortgage may be executed in several counterparts, all
of which are identical, except that, to facilitate recordation, certain counterparts hereof may
include only that portion of the applicable Exhibit A to the Conveyances which contains
descriptions of the properties located in (or otherwise subject to the recording or filing
requirements or protections of the recording or filing acts or regulations of) the recording
jurisdiction in which the particular counterpart is to be recorded, and other portions of the
applicable Exhibit A to the Conveyances shall be included in such counterparts by reference only.
All of the counterparts hereof together shall constitute one and the same instrument. An executed
counterpart of this Mortgage containing the full text to the entire Exhibit is recorded in the real
property records of Greene County, Pennsylvania.

     Section 5.19 Successors and Assigns. The terms, provisions, covenants,
representations, indemnifications and conditions hereof shall be binding upon Mortgagor, and the
successors and assigns of Mortgagor, and shall inure to the benefit of Mortgagee and its respective
successors and assigns, and shall constitute covenants running with the Mortgaged Properties. All
references in this Mortgage to Mortgagor or Mortgagee shall be deemed to include all such
successors and assigns.

     Section 5.20 FINAL AGREEMENT OF THE PARTIES. THE WRITTEN TRANSACTION DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

     Section 5.21 CHOICE OF LAW. WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAW THAT MAY CAUSE THE APPLICATION OF LAWS OF ANY OTHER JURISDICTION, THIS MORTGAGE SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE COMMONWEALTH OF
PENNSYLVANIA.

     Section 5.22 Exculpation Provisions. EACH OF THE PARTIES HERETO
SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS MORTGAGE; AND AGREES THAT IT IS CHARGED WITH
NOTICE AND KNOWLEDGE OF THE TERMS OF THIS MORTGAGE; THAT IT HAS IN FACT READ THIS MORTGAGE AND IS
FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS
MORTGAGE; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE
NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS MORTGAGE; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY
IN ENTERING INTO THIS MORTGAGE; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS MORTGAGE
RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND
RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES AND
COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF
THIS MORTGAGE ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE
PROVISION IS NOT “CONSPICUOUS.”

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[Signature Page Follows]

- 18 -

 

     IN WITNESS WHEREOF, this Mortgage is executed by Mortgagor on the date set forth in the
acknowledgement below, to be effective simultaneously with the execution and delivery of the
Conveyances.

	 	 	 	 	 
	 	ENERGY CORPORATION OF AMERICA

 	 
	 	By:  	/s/
Donald C. Supcoe	 
	 	Name:  	Donald C. Supcoe 	 
	 	Title:  	Senior Vice President 	 
	 

The address of Mortgagor is:

Energy Corporation of America

4643 South Ulster Street

Suite 1100

Denver, Colorado 80237

Attention: Michael S. Fletcher

Facsimile No.: (303) 694-2763

With a copy to:

501 56th Street

Charleston, West Virginia 25304

Attention: Donald C. Supcoe

Facsimile No.: (304) 925-3285

With a copy to:

Vinson & Elkins L.L.P.

1001 Fannin Street, Suite 3500

Houston, Texas 77002

Attention: David P. Oelman

Facsimile No. (713) 615-5861

Prepared by:

Vinson & Elkins LLP

1001 Fannin Street

Suite 2500

Houston, TX 77002-6760

Attention: Thomas Herbert

Signature Page to Mortgage

 

 

CERTIFICATE OF RESIDENCE

I do hereby certify that the address of Mortgagee is:

The Bank of New York Mellon Trust Company, N.A.

919 Congress Avenue, Suite 500

Austin, Texas 78701

Attn: Michael J. Ulrich

ECA MARCELLUS TRUST I

By: The Bank of New York Mellon Trust Company, N.A.

	 	 	 	 	 
	 	 
	By:  	/s/ Michael J. Ulrich 	 
	Name:  	Michael J. Ulrich 	 
	Title:  	Authorized Signatory 	 
	 

Signature Page to Mortgage

 

 

	 	 	 

	THE STATE OF COLORADO

	 	§ 
	 

	 	§ 
	COUNTY OF DENVER

	 	 § 

     On
this, the 7th day of July, 2010, before me Julie Ann Kitano, a Notary public,
personally appeared Donald C. Supcoe, who acknowledged himself to be the Senior Vice President of
Energy Corporation of America, a West Virginia corporation, and that he as such Senior Vice
President, being authorized to do so, executed the foregoing instrument for the purposes therein
contained by signing the name of the corporation by himself as Senior Vice President.

     In witness whereof, I hereunto set my hand and official seal.

	 	 	 

	[SEAL]
	 	 
	 

	 	/s/ Julie Ann Kitano

My Commission Expires: 4-26-2014

Acknowledgment to Signature Page to Mortgage

 

 

ANNEX A-1

COPY OF TERM ROYALTY CONVEYANCE (PUD)

Annex A-1 to Mortgage

 

 

ANNEX A-2

COPY OF TERM ROYALTY CONVEYANCE (PDP)

Annex A-2 to Mortgage

 

 

ANNEX A-3

COPY OF PERPETUAL ROYALTY CONVEYANCE (PUD)

Annex A-3 to Mortgage

 

 

ANNEX A-4

COPY OF PERPETUAL ROYALTY CONVEYANCE (PDP)

Annex A-4 to Mortgageexv10w12

Exhibit 10.12

Execution Version

REGISTRATION RIGHTS AGREEMENT

BY AND BETWEEN

ENERGY CORPORATION OF AMERICA,

JOHN MORK,

JULIE MORK

AND

ECA MARCELLUS TRUST I

DATED AS OF July 7, 2010

 

 

     This REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of July
7, 2010, by and among ECA Marcellus Trust I, statutory trust formed under the laws of the State of
Delaware (the “Trust”), and Energy Corporation of America (“ECA”), a West Virginia corporation,
John Mork and Julie Mork (collectively with ECA and John Mork, the “Principal Unitholders”).

RECITALS:

     WHEREAS, in connection with the Initial Public Offering, the Trust has agreed to file a
registration statement or registration statements relating to the sales by the Principal
Unitholders and its Transferees (as defined below) of certain of the Trust Units.

     NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, it is agreed as follows:

     SECTION 1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

     “Affiliate” means with respect to a specified person, any person that directly or indirectly
controls, is controlled by, or is under common control with, the specified person. As used in this
definition, the term “control” (and the correlative terms “controlling,” “controlled by,” and
“under common control”) shall mean the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of a person, whether through ownership of
voting securities, by contract or otherwise.

     “Agreement” has the meaning set forth in the preamble hereof.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on
which banking institutions in The City of New York are authorized or obligated by law or executive
order to close.

     “Common Units” has the meaning set forth in the Trust Agreement.

     “Deferral Notice” has the meaning set forth in Section 3(j) hereof.

     “Deferral Period” has the meaning set forth in Section 3(j) hereof.

     “Demand Notice” has the meaning set forth in Section 2(a) hereof.

     “Demand Registration” has the meaning set forth in Section 2(a) hereof.

     “Demanding Qualified Holder(s)” shall mean, with respect to any Demand Registration, the
Qualified Holder(s) delivering the relevant Demand Notice.

     “ECA” has the meaning set forth in the preamble.

 

 

     “Effective Period” means the period commencing on the 180th day after the date
hereof and ending on the date that all Registrable Securities have ceased to be Registrable
Securities.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the SEC thereunder.

     “Expenses” has the meaning set forth in Section 6(a) hereof.

     “Indemnified Party” has the meaning set forth in Section 6(d) hereof.

     “Indemnifying Party” has the meaning set forth in Section 6(d) hereof.

     “Initial Public Offering” means the initial public offering of Common Units registered with
the SEC by a registration statement on Form S-1 (Registration No. 333-165833).

     “Material Event” has the meaning set forth in Section 3(j) hereof.

     “Notice” has the meaning set forth in Section 2(a) hereof.

     “person” shall mean any individual, partnership, limited liability company, corporation,
trust, unincorporated association, governmental agency, subdivision, or instrumentality, or other
entity or association.

     “Principal Unitholders” has the meaning set forth in the preamble.

     “Prospectus” means the prospectus included in any Registration Statement (including, without
limitation, a prospectus that discloses information previously omitted from a prospectus filed as
part of an effective registration statement in reliance upon Rule 430A, Rule 430B or Rule 430C
promulgated under the Securities Act), as amended or supplemented by any amendment, prospectus
supplement or free writing prospectus (as defined in Rule 405 promulgated under the Securities
Act), including post-effective amendments, and all materials incorporated by reference or
explicitly deemed to be incorporated by reference in such Prospectus.

     “Qualified Holder” shall mean the Principal Unitholders and any Transferee of a Principal
Unitholder to whom Registrable Securities are permitted to be transferred in accordance with the
terms of this Agreement, and, in each case, who continues to be entitled to the rights of a
Qualified Holder hereunder.

     “Registrable Securities” means the Trust Units held by the Qualified Holders and any
securities into or for which such Trust Units have been converted or exchanged, and any security
issued with respect thereto upon any dividend, split or similar event until, in the case of any
such security, the earliest of (i) its effective registration under the Securities Act and resale
in accordance with the Registration Statement covering it, (ii) its disposal pursuant to Rule 144
(or any similar provision then in force, but not Rule 144A) under the Securities Act, (iii) its
sale in a private transaction in which the transferor’s rights under this Agreement are not
assigned to the transferee of the securities, (iv) its being held by the Trust, (v) 10 years after
the Qualified Holder ceases to be an Affiliate of the Trust, or (vi) if such security has been sold
in a private

 

 

transaction in which the tranferor’s rights under this Agreement are assigned to the
transferee and such transferee is not an Affiliate of the Trust, the time that is two years
following the later of (a) if the security is a Subordinated Unit, the conversion of the
Subordinated Unit into a Common Unit and (b) the transfer of such security to such transferee.

     “Registration Statement” means any registration statement of the Trust, including any Shelf
Registration Statement, that covers any of the Registrable Securities pursuant to the provisions of
this Agreement, including the Prospectus, amendments and supplements to such registration
statement, including post-effective amendments, all exhibits and all materials incorporated by
reference or explicitly deemed to be incorporated by reference in such registration statement.

     “Required Information” has the meaning set forth in Section 4(a) hereof.

     “Rule 144” means Rule 144 under the Securities Act, as such Rule may be amended from time to
time, or any similar rule or regulation hereafter adopted by the SEC.

     “Rule 144A” means Rule 144A under the Securities Act, as such Rule may be amended from time to
time, or any similar rule or regulation hereafter adopted by the SEC.

     “SEC” means the Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated by the SEC thereunder.

     “Shelf Registration Statement” means a Registration Statement for an offering to be made on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act registering the resale of
Registrable Securities from time to time by Qualified Holders thereof.

     “Special Counsel” means Vinson & Elkins L.L.P. or such other successor counsel as shall be
specified in writing by the Qualified Holders holding a majority of all Registrable Securities.

     “Subordinated Units” has the meaning set forth in the Trust Agreement.

     “Transferee” has the meaning set forth in Section 9(d) hereof.

     “Trust” has the meaning set forth in the preamble hereof.

     “Trust Agreement” means that certain Amended and Restated Trust Agreement of the Trust, dated
as of the date hereof.

     “Trust Units” means Common Units, Subordinated Units, and Common Units issuable upon
conversion of the Subordinated Units pursuant to the terms of the Trust Agreement.

 

 

     SECTION 2. “Demand Registration Rights.

     (a) Commencing 180 days after the Initial Public Offering, a Qualified Holder shall have the
right by delivering a written notice to the Trust (the “Demand Notice”) to require the Trust to
register, pursuant to the terms of this Agreement under and in accordance with the provisions of
the Securities Act, the number of Registrable Securities requested to be so registered pursuant to
the terms and conditions set forth in this Agreement (a “Demand Registration”). Following receipt
of a Demand Notice for a Demand Registration, the Trust shall use its reasonable best efforts to
file a Registration Statement as promptly as practicable, but not later than 45 days after such
Demand Notice, and shall use its reasonable best efforts to cause such Registration Statement to be
declared effective under the Securities Act as promptly as practicable after the filing thereof.

          Each Principal Unitholder shall be entitled to a maximum of one Demand Registration, which, if
such Demand Registration has not been exercised, may be transferred to any of such Principal
Unitholder’s successors or assigns who becomes a Qualified Holder pursuant to Section 9(d);
provided, however, that no such succession or assignment shall have the effect of increasing the
number of Demand Registrations to be performed by the Trust with respect to the Registrable
Securities held by such Principal Unitholder. Notwithstanding any other provisions of this Section
2, in no event shall more than one Demand Registration occur during any six-month period (measured
from the effective date of the Registration Statement to the date of the next Demand Notice) or
within 120 days after the effective date of a Registration Statement filed by the Trust; provided
that no Demand Registration may be prohibited for such 120-day period more often than once in a
12-month period.

          No Demand Registration shall be deemed to have occurred for purposes of this Section 2(a) if
the Registration Statement relating thereto does not become effective or is not maintained
effective for the period required pursuant to this Section 2(a), in which case the Demanding
Qualified Holders shall be entitled to an additional Demand Registration in lieu thereof.

          Within ten (10) days after receipt by the Trust of a Demand Notice, the Trust shall give
written notice (the “Notice”) of such Demand Notice to all other Qualified Holders and shall,
subject to the provisions of Section 2(b) hereof, include in such registration all Registrable
Securities held by such Qualified Holders with respect to which the Trust received written requests
for inclusion therein within ten (10) days after such Notice is given by the Trust to such holders.

          All requests made pursuant to this Section 2 will specify the amount of Registrable Securities
to be registered and the intended methods of disposition thereof.

          The Trust shall be required to maintain the effectiveness of the Registration Statement with
respect to any Demand Registration for a period of ninety (90) days after the effective date
thereof or, in the case of a Shelf Registration Statement, the Effectiveness Period; provided,
however, that such period shall be extended for a period of time equal to the period the holders of
Registrable Securities refrain from selling any securities included in such registration at the
request of (i) an underwriter of the Trust or (ii) the Trust pursuant to this Agreement.

 

 

     (b) If any of the Registrable Securities registered pursuant to a Demand Registration are to
be sold in a firm commitment underwritten offering, and the managing underwriter or underwriters
advise the holders of such securities in writing that in its view the total amount of securities
proposed to be sold in such offering is such as to adversely affect the success of such offering
(including, without limitation, securities proposed to be included by other holders of securities
entitled to include securities in the Registration Statement pursuant to incidental or piggyback
registration rights), then the amount of securities to be offered (i) for the account of Demanding
Qualified Holders and (ii) for the account of all such other persons (other than the Demanding
Qualified Holders) shall be reduced to the extent necessary to reduce the total amount of
securities to be included in such offering to the amount recommended by such managing underwriter
or underwriters by first reducing, or eliminating if necessary, all securities of the Trust
requested to be included by such other persons and then, if necessary, reducing the Registrable
Securities requested to be included by the Demanding Qualified Holders, pro rata among such
security holders on the basis of the percentage of the Registrable Securities requested to be
included in such Registration Statement by such security holders. In connection with any Demand
Registration to which the provisions of this subsection (b) apply, no securities other than
Registrable Securities shall be covered by such Demand Registration except as provided in
subsection 2(b)(ii) hereof, and such registration shall not reduce the number of available
registrations with respect to the Qualified Holders under this Section 2 in the event that the
Registration Statement excludes more than 25% of the aggregate number of Registrable Securities
that the Demanding Qualified Holders requested be included.

     (c) The Trust shall be entitled to postpone (but not more than once in any 12-month period),
for a reasonable period of time not in excess of 90 days, the filing of a Registration Statement if
the Trust delivers to the Demanding Qualified Holders a certificate signed by the Trust certifying
that, in its good faith judgment, it would be detrimental to the Trust and its unitholders for such
Registration Statement to be filed and it is therefore beneficial to defer the filing of such
Registration Statement. If the Trust shall so postpone the filing of a Registration Statement, the
Demanding Qualified Holders shall have the right to withdraw the request for registration by giving
written notice to the Trust within 20 days of the anticipated termination date of the postponement
period, as provided in the certificate delivered thereto, and in the event of such withdrawal, such
request shall not reduce the number of available registrations with respect to the Qualified
Holders under this Section 2.

     (d) Whenever the Trust shall effect a Demand Registration pursuant to this Section 2 in
connection with an underwritten offering, no securities other than Registrable Securities shall be
included among the securities covered by such Demand Registration unless (i) the managing
underwriter of such offering shall have advised each holder of Registrable Securities requesting
such registration in writing that it believes that the inclusion of such other securities would not
adversely affect such offering or (ii) the inclusion of such other securities is approved by the
affirmative vote of the holders of at least a majority of the Registrable Securities included in
such Demand Registration by the Demanding Qualified Holders.

 

 

     SECTION 3. Registration Procedures. In connection with the registration obligations
of the Trust under Section 2 hereof, during the Effective Period, the Trust shall:

     (a) Prepare and file with the SEC a Registration Statement or Registration Statements,
including if so requested by the Qualified Holders a Shelf Registration Statement, on any
appropriate form under the Securities Act available for the sale of the Registrable Securities by
the holders thereof in accordance with the intended method or methods of distribution thereof, and
use commercially reasonable efforts to cause each such Registration Statement to become effective
and remain effective as provided herein; provided that before filing any Registration Statement or
Prospectus or any amendments or supplements thereto with the SEC (but excluding reports filed with
the SEC under the Exchange Act), furnish to the Qualified Holders, the Special Counsel and the
managing underwriter or underwriters, if any, copies of all such documents proposed to be filed at
least three (3) Business Days prior to the filing of such Registration Statement or amendment
thereto or Prospectus or supplement thereto.

     (b) Subject to Section 3(j), prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to keep such Registration Statement
continuously effective during the period provided herein with respect to the disposition of all
securities covered by such Registration Statement; cause the related Prospectus to be supplemented
by any required prospectus supplement or free writing prospectus, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and
use commercially reasonable efforts to comply with the provisions of the Securities Act applicable
to the Trust with respect to the disposition of all securities covered by such Registration
Statement during the period provided herein with respect to the disposition of all securities
covered by such Registration Statement in accordance with the intended methods of disposition by
the sellers thereof set forth in such Registration Statement as so amended or such Prospectus as so
supplemented.

     (c) Subject to Section 3(j), from and after the date a Registration Statement is declared
effective, the Trust shall, as promptly as practicable after the date the Required Information is
delivered pursuant to Section 4 hereof and in accordance with this Section 3(c):

     (i) if required by applicable law, file with the SEC a post-effective amendment to the
Registration Statement or prepare and, if required by applicable law, file a supplement to
the related Prospectus or a supplement or amendment to any document incorporated therein by
reference or file any other required document so that the Qualified Holder delivering such
Required Information is named as a selling securityholder in the Registration Statement and
the related Prospectus in such a manner as to permit such Qualified Holder to deliver such
Prospectus to purchasers of the Registrable Securities in accordance with applicable law
and, if the Trust shall file a post-effective amendment to the Registration Statement, use
commercially reasonable efforts to cause such post-effective amendment to be declared
effective under the Securities Act as promptly as is practicable; and

     (ii) provide such Qualified Holder copies of any documents filed pursuant to
Section 3(c)(i);

 

 

provided, that, if the Required Information is delivered during a Deferral Period, the Trust shall
so inform the Qualified Holder delivering such Required Information. The Trust shall notify such
Qualified Holder as promptly as practicable after the effectiveness under the Securities Act of any
post-effective amendment filed pursuant to Section 3(c)(i). Notwithstanding anything contained
herein to the contrary, the Trust shall be under no obligation to name any Qualified Holder that
has failed to deliver the Required Information in the manner set forth in Section 4 hereof as a
selling securityholder in any Registration Statement or related Prospectus.

     (d) As promptly as practicable give notice to the Qualified Holders, the Special Counsel and
the managing underwriter or underwriters, if any, (i) when any Prospectus, Registration Statement
or post-effective amendment to a Registration Statement has been filed with the SEC and, with
respect to a Registration Statement or any post-effective amendment thereto, when the same has been
declared effective, (ii) of any request, following the effectiveness of any Registration Statement
under the Securities Act, by the SEC or any other federal or state governmental authority for
amendments or supplements to any Registration Statement or related Prospectus, (iii) of the
issuance by the SEC or any other federal or state governmental authority of any stop order
suspending the effectiveness of any Registration Statement or the initiation or threatening of any
proceedings for that purpose, (iv) of the receipt by the Trust of any notification with respect to
the suspension of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such
purpose, (v) of the occurrence of, but not the nature of or details concerning, a Material Event
and (vi) of the determination by the Trust that a post-effective amendment to a Registration
Statement will be filed with the SEC, which notice may, at the discretion of the Trust (or as
required pursuant to Section 3(j)), state that it constitutes a Deferral Notice, in which event the
provisions of Section 3(j) shall apply.

     (e) Use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement or the lifting of any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction in
which they have been qualified for sale, in either case as promptly as practicable, and provide
prompt notice to each Qualified Holder of the withdrawal of any such order.

     (f) If requested by the managing underwriters, if any, or the Qualified Holders of the
Registrable Securities being sold in connection with an underwritten offering, promptly include in
a prospectus supplement or post-effective amendment such information as the managing underwriters,
if any, and such Qualified Holders may reasonably request in order to permit the intended method of
distribution of such securities and make all required filings of such prospectus supplement or such
post-effective amendment as soon as practicable after the Trust has received such request;
provided, however, that the Trust shall not be required to take any actions under this Section 3(f)
that are not, in the opinion of counsel for the Trust, in compliance with applicable law.

     (g) As promptly as practicable furnish to each Qualified Holder, the Special Counsel and each
managing underwriter, if any, upon request, at least one (1) conformed copy of the Registration
Statement and any amendment thereto, including exhibits and, if requested, all documents
incorporated or deemed to be incorporated therein by reference.

 

 

     (h) Deliver to each Qualified Holder, the Special Counsel and each managing underwriter, if
any, in connection with any sale of Registrable Securities pursuant to a Registration Statement as
many copies of the Prospectus relating to such Registrable Securities (including each preliminary
Prospectus) and any amendment or supplement thereto as such persons may reasonably request; and the
Trust hereby consents (except during such periods that a Deferral Notice is outstanding and has not
been revoked and subject to Section 3(j)(ii) hereof) to the use of such Prospectus or each
amendment or supplement thereto by each Qualified Holder and the underwriters, if any, in
connection with any offering and sale of the Registrable Securities covered by such Prospectus or
any amendment or supplement thereto in the manner set forth therein.

     (i) Prior to any public offering of the Registrable Securities pursuant to a Registration
Statement, use commercially reasonable efforts to register or qualify or cooperate with the
Qualified Holders, the Special Counsel and the underwriters, if any, in connection with the
registration or qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Qualified Holder or underwriter reasonably requests
in writing (which request may be included with the Required Information); prior to any public
offering of the Registrable Securities pursuant to the Registration Statement, use commercially
reasonable efforts to keep each such registration or qualification (or exemption therefrom)
effective during the period provided herein with respect to the disposition of all securities
covered by such Registration Statement in connection with such Qualified Holder’s offer and sale of
Registrable Securities pursuant to such registration or qualification (or exemption therefrom) and
do any and all other acts or things reasonably necessary or advisable to enable the disposition in
such jurisdictions of such Registrable Securities in the manner set forth in the relevant
Registration Statement and the related Prospectus; provided that neither the Trust nor the Trust
will be required to (i) qualify as a foreign entity or as a dealer in securities in any
jurisdiction where it would not otherwise be required to qualify but for this Agreement or
(ii) take any action that would subject it to general service of process or to taxation in any such
jurisdiction where it is not then so subject.

     (j) Upon (A) the issuance by the SEC of a stop order suspending the effectiveness of any
Registration Statement or the initiation of proceedings with respect to any Registration Statement
under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence
of any fact as a result of which (x) any Registration Statement shall contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, or (y) any Prospectus shall contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading
(each of subclauses (x) and (y) hereof, a “Material Event”), or (C) the occurrence or existence of
any pending corporate development of the Trust that, in the reasonable discretion of the Trust,
makes it appropriate to suspend the availability of any Registration Statement and the related
Prospectus, the Trust shall:

     (i) in the case of clause (B) above, subject to clause (ii) below, as promptly as
practicable prepare and file, if necessary pursuant to applicable law, a post-effective
amendment to such Registration Statement or a supplement to the related Prospectus or

 

 

any document incorporated therein by reference or file any other required document that
would be incorporated by reference into such Registration Statement and Prospectus so that
such Registration Statement does not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and such Prospectus does not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading, as thereafter delivered to the purchasers of the Registrable
Securities being sold thereunder, and, in the case of a post-effective amendment to a
Registration Statement, subject to clause (ii) below, use commercially reasonable efforts to
cause it to be declared effective as promptly as practicable; and

     (ii) give notice to the Qualified Holders and the Special Counsel, if any, that the
availability of any Registration Statement is suspended (a “Deferral Notice”) and, upon
receipt of any Deferral Notice, each Qualified Holder agrees not to sell any Registrable
Securities pursuant to the Registration Statement until such Qualified Holder’s receipt of
copies of the supplemented or amended Prospectus provided for in clause (i) above, or until
it is advised in writing by the Trust that the Prospectus may be used, and has received
copies of any additional or supplemental filings that are incorporated or deemed
incorporated by reference in such Prospectus, in which case such Qualified Holder will use
the Prospectus as so supplemented or amended in connection with any offering and sale of
Registrable Securities covered thereby.

The Trust shall use commercially reasonable efforts to ensure that the use of the Prospectus may be
resumed (x) in the case of clause (A) above, as promptly as is practicable, (y) in the case of
clause (B) above, as soon as, in the sole judgment of the Trust, public disclosure of such Material
Event would not be prejudicial to or contrary to the interests of the Trust or, if necessary to
avoid unreasonable burden or expense, as soon as practicable thereafter, and (z) in the case of
clause (C) above, as soon as, in the reasonable discretion of the Trust, such suspension is no
longer appropriate. The Trust shall be entitled to exercise its right under this Section 3(j) to
suspend the availability of any Registration Statement or any Prospectus (the “Deferral Period”)
for use by any Qualified Holder.

     (k) If reasonably requested by a Qualified Holder or any underwriter participating in any
disposition of Registrable Securities, if any, in writing in connection with a disposition by such
Qualified Holder of Registrable Securities pursuant to a Registration Statement, make reasonably
available for inspection during normal business hours by a representative for such Qualified
Holder(s) of such Registrable Securities, any broker-dealers, underwriters, attorneys and
accountants retained by such Qualified Holder(s), and any attorneys or other agents retained by a
broker-dealer or underwriter engaged by such Qualified Holder(s), all relevant financial and other
records and pertinent corporate documents and properties of the Trust, and cause the appropriate
officers, directors and employees of the Trust to make reasonably available for inspection during
normal business hours on reasonable notice all relevant information reasonably requested by such
representative for the Qualified Holder(s), or any such broker-dealers, underwriters, attorneys or
accountants in connection with such disposition, in each case as is customary for similar “due
diligence” examinations; provided that (i) the Trust shall not be obligated to make available for
inspection any information that, based on the reasonable advice

 

 

of counsel to the Trust, could subject the Trust to the loss of privilege with respect thereto
and (ii) such persons shall first agree in writing with the Trust that any information that is
reasonably designated by the Trust as confidential at the time of delivery of such information
shall be kept confidential by such persons and shall be used solely for the purposes of exercising
rights under this Agreement, unless (a) disclosure of such information is required by court or
administrative order or is necessary to respond to inquiries of regulatory authorities,
(b) disclosure of such information is required by law (including any disclosure requirements
pursuant to federal securities laws in connection with the filing of any Registration Statement or
the use of any Prospectus referred to in this Agreement) or (c) such information becomes generally
available to the public other than as a result of a disclosure or failure to safeguard by any such
person; and provided further that the foregoing inspection and information gathering shall, to the
greatest extent possible, be coordinated on behalf of all the Qualified Holders and the other
parties entitled thereto by Special Counsel, if any, or another representative selected by the
Qualified Holders holding a majority of Registrable Securities being registered pursuant to such
Registration Statement. Any person legally compelled or required by administrative or court order
or by a regulatory authority to disclose any such confidential information made available for
inspection shall provide the Trust with prompt prior written notice of such requirement so that the
Trust may seek a protective order or other appropriate remedy.

     (l) Use its best efforts to comply with all applicable rules and regulations of the SEC and
make generally available to the Trust’s securityholders earnings statements (which need not be
audited) satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder
(or any similar rule promulgated under the Securities Act) for a 12-month period commencing on the
first day of the first fiscal quarter of the Trust commencing after the effective date of a
Registration Statement, which statements shall be made available no later than the next succeeding
Business Day after such statements are required to be filed with the SEC.

     (m) Cooperate with each Qualified Holder and the managing underwriters, if any, to facilitate
the timely preparation and delivery of certificates representing Registrable Securities sold or to
be sold pursuant to a Registration Statement, which certificates shall not bear any restrictive
legends stating that the Registrable Securities evidenced by the certificates are “restricted
securities” (as defined by Rule 144), and cause such Registrable Securities to be registered in
such names as such Qualified Holder or the managing underwriters, if any, may request in writing at
least two (2) Business Days prior to any sale of such Registrable Securities.

     (n) Provide a CUSIP number for all Registrable Securities covered by each Registration
Statement not later than the effective date of such Registration Statement.

     (o) Cooperate with and assist each Qualified Holder, the Special Counsel and any underwriters
participating in any disposition of Registrable Securities in any filings required to be made with
the Financial Industry Regulatory Authority in connection with the filing or effectiveness of any
Registration Statement, any post-effective amendment thereto or any offer or sale of Registrable
Securities thereunder.

     (p) In the case of a proposed sale pursuant to a Registration Statement involving an
underwritten offering, the Trust shall enter into such customary agreements on behalf of he Trust
(including, if requested, an underwriting agreement in reasonably customary form) and take all

 

 

such other action, if any, as Qualified Holders holding a majority of the Registrable
Securities being sold or any managing underwriters reasonably shall request in order to facilitate
any disposition of the Registrable Securities pursuant to such Registration Statement, including,
without limitation, (i) using commercially reasonable efforts to cause its counsel to deliver an
opinion or opinions in reasonably customary form, (ii) using its reasonable best efforts to cause
its officers to execute and deliver all customary documents and certificates on behalf of the Trust
and (iii) using its reasonable best efforts to cause the Trust’s independent public accountants to
provide a comfort letter or letters in reasonably customary form.

     (q) Use its reasonable best efforts to support the marketing of the Registrable Securities
covered by the Registration Statement taking into account the Trust’s business needs.

     (r) Upon (i) the filing of any Registration Statement and (ii) the effectiveness of any
Registration Statement, announce the same, in each case by press release to Reuters Economic
Services and Bloomberg Business News.

     (s) Use commercially reasonable efforts to cause all such Registrable Securities to be listed
on each securities exchange on which similar securities issued by the Trust are listed or traded.

     SECTION 4. Qualified Holder’s Obligations.

     (a) Each Qualified Holder agrees that if such Qualified Holder wishes to sell Registrable
Securities pursuant to a Registration Statement and related Prospectus, it will do so only in
accordance with this Section 4 and Section 3(j) hereof. The Trust may require each seller of
Registrable Securities as to which any registration is being effected to furnish to the Trust in
writing such information required in connection with such registration regarding such seller and
the distribution of such Registrable Securities as the Trust may, from time to time, reasonably
request in writing (the “Required Information”) and the Trust may exclude from such registration
the Registrable Securities of any seller who unreasonably fails to furnish such information within
a reasonable time after receiving such request. In addition, following the date that a
Registration Statement is declared effective, each Qualified Holder wishing to sell Registrable
Securities pursuant to a Registration Statement and related Prospectus agrees to deliver, at least
seven (7) Business Days prior to any intended distribution of Registrable Securities under the
Registration Statement, to the Trust any additional Required Information as the Trust may
reasonably request so that the Trust may complete or amend the information required by any
Registration Statement.

     (b) Each Qualified Holder agrees, by acquisition of the Registrable Securities, that no
Qualified Holder shall be entitled to sell any of such Registrable Securities pursuant to a
Registration Statement or to receive a Prospectus relating thereto unless such Qualified Holder has
furnished the Trust with the Required Information as required pursuant to this Section 4 and the
information set forth in the next sentence. Each Qualified Holder agrees promptly to furnish to
the Trust all information required to be disclosed in order to make the information previously
furnished to the Trust by such Qualified Holder not misleading and any other information regarding
such Qualified Holder and the distribution of such Registrable Securities as the Trust may from
time to time reasonably request. Any sale of any Registrable Securities by any

 

 

Qualified Holder shall constitute a representation and warranty by such Qualified Holder that
the information relating to such Qualified Holder and its plan of distribution is as set forth in
the Prospectus delivered by such Qualified Holder in connection with such disposition, that such
Prospectus does not as of the time of such sale contain any untrue statement of a material fact
relating to or provided by such Qualified Holder or its plan of distribution and that such
Prospectus does not as of the time of such sale omit to state any material fact relating to or
provided by such Qualified Holder or its plan of distribution necessary in order to make the
statements in such Prospectus, in the light of the circumstances under which they were made, not
misleading.

     SECTION 5. Registration Expenses. The Company shall bear all out-of-pocket fees and
expenses incurred in connection with the performance by the Trust of its obligations under Sections
2 and 3 of this Agreement whether or not any Registration Statement is declared effective. Such
fees and expenses shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (x) with respect to filings required to be made
with the Financial Industry Regulatory Authority and (y) of compliance with federal and state
securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements of
the Special Counsel, if any, in connection with Blue Sky qualifications of the Registrable
Securities under the laws of such jurisdictions as Qualified Holders holding a majority of the
Registrable Securities being sold pursuant to a Registration Statement may designate)),
(ii) printing expenses (including, without limitation, expenses of printing certificates for
Registrable Securities in a form eligible for deposit with The Depository Trust Company),
(iii) duplication expenses relating to copies of any Registration Statement or Prospectus delivered
to any Qualified Holders hereunder, (iv) fees and disbursements of counsel for the Trust and the
Special Counsel, if any, in connection with any Registration Statement, (v) fees of accountants for
consents and cold comfort and (vi) the fees and expenses incurred in connection with the listing by
the Trust of the Registrable Securities on any securities exchange on which similar securities of
the Trust are then listed. However, the Trust shall pay the internal expenses of the Trust
(including, without limitation, all salaries and expenses of officers and employees performing
legal or accounting duties), the expense of any annual audit and the other fees and expenses of the
accountants for the Trust not covered by clause (v) of the preceding sentence, other than any
expense that would not have otherwise been incurred but for the fact of the filing of the
Registration Statement or the timing thereof, the fees and expenses of any person, including
special experts, retained by the Trust and the fees and expenses of any transfer agent for the
Registrable Securities. Notwithstanding the provisions of this Section 5, each seller of
Registrable Securities shall pay its own selling expenses, including any underwriting discount and
commissions, all registration expenses to the extent required by applicable law and, except as
otherwise provided herein, fees and expenses of counsel.

     SECTION 6. Indemnification and Contribution.

     (a) Indemnification by the Trust. The Trust shall indemnify and hold harmless ECA, each
Qualified Holder and each person, if any, who controls ECA or any Qualified Holder within the
meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any and all losses, claims, damages and liabilities (including, without limitation, any
reasonable legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) (“Expenses”) to which ECA, any Qualified Holder or

 

 

any controlling person of ECA or any Qualified Holder may become subject, under or with
respect to the Securities Act, the Exchange Act, any other federal or state securities law or
otherwise, insofar as such Expenses are caused by any untrue statement or alleged untrue statement
of a material fact contained in any Registration Statement at the date and time as of which such
Registration Statement was declared effective by the SEC, any preliminary Prospectus or the
Prospectus, or caused by any omission or alleged omission to state therein a material fact required
to be stated therein or necessary in order to make the statements therein (in the case of a
preliminary Prospectus or Prospectus, in light of the circumstances under which they were made),
not misleading, but in each case only with respect to written information relating to the Trust
furnished by or on behalf of the Trust specifically for inclusion in the documents referred to in
the foregoing indemnity. Subject to Section 6(e) of this Agreement, the Trust shall reimburse ECA,
the Qualified Holders and any controlling persons thereof for any legal or other expenses
reasonably incurred by ECA, the Qualified Holders or any controlling persons thereof in connection
with the investigation or defense of any Expenses with respect to which ECA and the Qualified
Holders or any controlling persons thereof is entitled to indemnity by the Trust under this
Agreement. In connection with any underwritten offering pursuant to Section 8, the Trust will also
agree to indemnify the underwriters, if any, their officers and directors and each person who
controls such underwriters (within the meaning of the Securities Act and the Exchange Act) on terms
and conditions similar to those set forth herein with respect to the indemnification of ECA and the
Qualified Holders, if requested in connection with any Registration Statement, such indemnification
to be set forth in any underwriting agreement to be entered into by the Trust with such
underwriter(s).

     (b) Indemnification by ECA. The Company shall indemnify and hold harmless each Qualified
Holder (other than ECA), the Trust and The Bank of New York Mellon Trust Company, N.A., as trustee
of the Trust (the “Trustee”) and any agents thereof, individually and as trustee, as the case may
be, and each person, if any, who controls such Qualified Holder, the Trust or the Trustee within
the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any Expenses (excluding, however, any taxes, fees and other charges payable by the Trust
on, based on or measured by any fees, commissions or compensation received by the Trust for its
services under this Agreement) to which such Qualified Holder, the Trust, the Trustee or any agent
thereof or any controlling person of such Qualified Holder, the Trust or the Trustee may become
subject, under or with respect to the Securities Act, the Exchange Act, any other federal or state
securities law or otherwise, insofar as such Expenses are caused by (i) an untrue statement or
alleged untrue statement of a material fact contained in any Registration Statement or an omission
or alleged omission to state a material fact required to be stated in or necessary to make the
statements therein not misleading at the date and time as of which such Registration Statement was
declared effective by the SEC, (ii) an untrue statement or alleged untrue statement of a material
fact contained in any preliminary Prospectus or any Prospectus or an omission or alleged omission
to state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading as of the date of such preliminary
Prospectus or Prospectus and as of the closing of the sale of Trust Units sold thereunder or (iii)
any untrue statement or alleged untrue statement of a material fact contained in any other filing,
report or other action taken with respect to the Securities Act, the Exchange Act or any other
Federal or state securities law, the listing of the Trust Units on the New York Stock Exchange or
another national securities exchange or any omission or alleged omission to state a material fact
required to be stated therein

 

 

or necessary to make the statements therein not misleading; provided, however, that ECA shall
not be liable to and shall not indemnify the Qualified Holders (other than ECA), the Trust or any
agents or controlling persons thereof, individually or as trustee, as the case may be, in any such
case under the preceding clauses (i) and (ii) of this Section 6(b) to the extent that any such
Expense arises out of, is based upon or is connected with information relating to (a) the Trust in
its individual capacity or (b) such Qualified Holder, in either case prepared or furnished by the
Trust or such Qualified Holder, as the case may be, expressly for use in any Registration
Statement, any preliminary Prospectus or any Prospectus; and provided, further, that ECA shall not
be liable to the Qualified Holders (other than ECA), the Trust or any agents or controlling persons
thereof, individually or as trustee, as the case may be, in any such case under the preceding
clause (iii) of this Section 6(b) to the extent that any such Expense arises out of, is based upon
or is connected with information relating to (a) the Trust in its individual capacity prepared or
furnished by the Trust and the Trust is found liable or (b) such Qualified Holder prepared or
furnished by such Qualified Holder and such Qualified Holder is found liable. Subject to Section
6(e) of this Agreement, ECA shall reimburse the Qualified Holders (other than ECA), the Trust and
the Trustee and any agents or controlling persons thereof for any legal or other expenses
reasonably incurred by the Qualified Holders (other than ECA), the Trust and the Trust or any agent
or controlling persons thereof in connection with the investigation or defense of any Expenses with
respect to which the Qualified Holders (other than ECA), the Trust and the Trustee or any agent or
controlling persons thereof is entitled to indemnity by ECA under this Agreement.

     (c) Indemnification by Certain of the Qualified Holders. Each Qualified Holder (other than
ECA), severally and not jointly, shall indemnify and hold harmless ECA, the Trust, the Trustee and
any agents thereof, individually and as trustee, and any other Qualified Holder and each person, if
any, who controls ECA, the Trust, the Trustee and any agents thereof, individually and as trustee,
or any other Qualified Holder within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act, from and against any and all Expenses to which ECA, the Trust, the
Trustee and any agents thereof, individually and as trustee, any other Qualified Holder or any
controlling person of ECA, the Trust, the Trustee and any agents thereof, individually and as
trustee, or any other Qualified Holder may become subject, under or with respect to the Securities
Act, the Exchange Act, any other federal or state securities law or otherwise, insofar as such
Expenses are caused by any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement at the date and time as of which such Registration
Statement was declared effective by the SEC, any preliminary Prospectus or the Prospectus, or
caused by any omission or alleged omission to state therein a material fact required to be stated
therein or necessary in order to make the statements therein (in the case of a preliminary
Prospectus or Prospectus, in light of the circumstances under which they were made), not
misleading, but in each case only with respect to written information relating to such Qualified
Holder (other than ECA) furnished by or on behalf of such Qualified Holder specifically for
inclusion in the documents referred to in the foregoing indemnity. Subject to Section 6(e) of this
Agreement, such Qualified Holder shall reimburse ECA, the Trust, the Trustee and any agents
thereof, individually and as trustee, the other Qualified Holders and any agents or controlling
persons thereof for any legal or other expenses reasonably incurred by ECA, the Trust, the Trustee
and any agents thereof, individually and as trustee, the other Qualified Holders or any agent or
controlling persons thereof in connection with the investigation or defense of any Expenses with
respect to which ECA, the Trust, the Trustee and

 

 

any agents thereof, individually and as trustee, and the other Qualified Holders or any agent
or controlling persons thereof is entitled to indemnity by such Qualified Holder under this
Agreement.

     (d) Conduct of Indemnification Proceedings. In case any proceeding (including any
governmental investigation) shall be instituted involving any person in respect of which indemnity
may be sought pursuant to Section 6(a), 6(b) or 6(c) hereof, such person (the “Indemnified Party”)
shall promptly notify the person against whom such indemnity may be sought (the “Indemnifying
Party”) in writing and the Indemnifying Party, upon request of the Indemnified Party, shall retain
counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party and any
others the Indemnifying Party may designate in such proceeding and shall pay the reasonable fees
and disbursements of such counsel related to such proceeding. In any such proceeding, any
Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the
Indemnified Party shall have mutually agreed to the retention of such counsel or (ii) the named
parties to any such proceeding (including any impleaded parties) include both the Indemnifying
Party and the Indemnified Party and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them, other than solely by
virtue of the rights and obligations of the Indemnifying Party and the Indemnified Party under this
Section 6. It is understood that the Indemnifying Party shall not, in respect of the legal
expenses of any Indemnified Party in connection with any proceeding or related proceedings in the
same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all such indemnified parties and that all such fees and expenses shall be
reimbursed as they are incurred. Such firm shall be designated in writing by, in the case of
parties indemnified pursuant to Section 6(a), the Qualified Holders holding a majority of the
Registrable Securities covered by the Registration Statement held by Qualified Holders that are
indemnified parties pursuant to Section 6(a) and, in the case of parties indemnified pursuant to
Section 6(b) or Section 6(c), the Trust. The Indemnifying Party shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with such consent
or if there be a final, non-appealable judgment for the plaintiff, the Indemnifying Party agrees to
indemnify the Indemnified Party from and against any Expenses by reason of such settlement or
judgment. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Party is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of such Indemnified
Party from all liability on claims that are the subject matter of such proceeding.

     (e) Contribution. To the extent that the indemnification provided for in Section 6(a),
6(b) or 6(c) is unavailable to an Indemnified Party or insufficient in respect of any Expenses
referred to therein, then each Indemnifying Party under such paragraph, in lieu of indemnifying
such Indemnified Party thereunder, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Expenses (i) in such proportion as is appropriate to reflect
the relative benefits received by the Indemnifying Party or Indemnifying Parties on the one hand
and the Indemnified Party or Indemnified Parties on the other hand or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above but also the

 

 

relative fault of the Indemnifying Party or Indemnifying Parties on the one hand and of the
Indemnified Party or Indemnified Parties on the other hand in connection with the statements or
omissions that resulted in such Expenses, as well as any other relevant equitable considerations.
The relative fault of ECA and the other Qualified Holders on the one hand and the Trust on the
other hand shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
required to be stated or necessary in order to make the statements (in the case of a preliminary
Prospectus or Prospectus, in light of the circumstances under which they were made) not misleading,
relates to information supplied by ECA, the other Qualified Holders or by the Trust, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Qualified Holders’ respective obligations to contribute pursuant
to this Section 6 are several in proportion to the respective number of Registrable Securities they
have sold pursuant to a Registration Statement, and not joint.

     The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 6(e) were determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Party as a result of the Expenses referred
to in the immediately preceding paragraph shall be deemed to include, subject to the limitations
set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in
connection with investigating or defending any such action or claim. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

     (f) The remedies provided for in this Section 6 are not exclusive and shall not limit any
rights or remedies which may otherwise be available to an Indemnified Party at law or in equity,
hereunder or otherwise.

     (g) The indemnity and contribution provisions contained in this Section 6 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of any Qualified Holder, any person controlling ECA or
any other Qualified Holder or any Affiliate of ECA or any other Qualified Holder or by or on behalf
of the Trust, its officers or directors or any person controlling the Trust and (iii) the sale of
any Registrable Securities by any Qualified Holder.

     SECTION 7. Information Requirements. The Trust covenants that, if at any time before
the end of the Effective Period the Trust is not subject to the reporting requirements of the
Exchange Act, it will cooperate with any Qualified Holder and take such further reasonable action
as any Qualified Holder may reasonably request in writing (including, without limitation, making
such reasonable representations as any such Qualified Holder may reasonably request), all to the
extent required from time to time to enable such Qualified Holder to sell Registrable Securities
without registration under the Securities Act within the limitation of the exemptions provided by
Rule 144 or Rule 144A under the Securities Act and customarily taken in connection with sales
pursuant to such exemptions. Upon the written request of any Qualified Holder, the Trust shall
deliver to such Qualified Holder a written statement as to whether the Trust has complied with such
filing requirements. Notwithstanding the foregoing, nothing in this

 

 

Section 7 shall be deemed to require the Trust to register any of the Trust’s securities under
any section of the Exchange Act.

     SECTION 8. Underwritten Registrations. The Qualified Holders of Registrable
Securities covered by any Registration Statement who desire to do so may sell such Registrable
Securities to an underwriter in an underwritten offering for reoffering to the public. If any of
the Registrable Securities covered by any Registration Statement are to be sold in an underwritten
offering, the investment banker or investment bankers and manager or managers that will administer
the offering will be selected by the Qualified Holders holding a majority of such Registrable
Securities included in such offering, subject to the consent of the Trust (which shall not be
unreasonably withheld or delayed), and such Qualified Holders shall be responsible for all
underwriting commissions and discounts and any transfer taxes in connection therewith. No person
may participate in any underwritten registration hereunder unless such person (i) agrees to sell
such person’s Registrable Securities on the basis reasonably provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such arrangements and
(ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such underwriting
arrangements.

     SECTION 9. Miscellaneous.

     (a) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, without the written consent of the Trust, ECA and the
Qualified Holders holding a majority of Registrable Securities. Notwithstanding the foregoing, a
waiver or consent to depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Qualified Holders whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the rights of other
Qualified Holders may be given by Qualified Holders of at least a majority of the Registrable
Securities being sold by such Qualified Holders pursuant to such Registration Statement; provided
that the provisions of this sentence may not be amended, modified or supplemented except in
accordance with the provisions of the immediately preceding sentence. Notwithstanding the
foregoing, this Agreement may be amended by written agreement signed by the Trust, without the
consent of the Qualified Holders of Registrable Securities, to cure any ambiguity or to correct or
supplement any provision contained herein that may be defective or inconsistent with any other
provision contained herein, or to make such other provisions in regard to matters or questions
arising under this Agreement that shall not adversely affect the interests of the Qualified Holders
of Registrable Securities. Each Qualified Holder of Registrable Securities outstanding at the time
of any such amendment, modification, supplement, waiver or consent or thereafter shall be bound by
any such amendment, modification, supplement, waiver or consent effected pursuant to this Section
9(a), whether or not any notice, writing or marking indicating such amendment, modification,
supplement, waiver or consent appears on the Registrable Securities or is delivered to such
Qualified Holder.

     (b) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand delivery, by facsimile, by courier guaranteeing overnight delivery or by
first-class mail, return receipt requested, and shall be deemed given

 

 

(i) when made, if made by hand delivery, (ii) upon confirmation, if made by facsimile,
(iii) one (1) Business Day after being deposited with such courier, if made by overnight courier or
(iv) on the date indicated on the notice of receipt, if made by first-class mail, to the parties as
follows:

       (i) if to a Qualified Holder other than ECA, at the most current address given by such
Qualified Holder to the Trust (initially such address being that which is included on the
signature page hereto with respect to such Qualified Holder other than ECA);

	 	 	 	 	 

	 

	 	(ii)
	 	if to the Trust or the Trust, to:
	 
	 	 	 	 
	 

	 	 	 	ECA Marcellus Trust I
	 

	 	 	 	c/o The Bank of New York Mellon Trust Company, N.A.
	 

	 	 	 	Institutional Trust Services
	 

	 	 	 	919 Congress Avenue, Suite 500
	 

	 	 	 	Austin, Texas 78701
	 

	 	 	 	Attention: Mike J. Ulrich
	 

	 	 	 	Fax: (512) 479-2553
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Bracewell & Giuliani LLP
	 

	 	 	 	111 Congress Avenue
	 

	 	 	 	Suite 2300
	 

	 	 	 	Austin, Texas 78701
	 

	 	 	 	Attention: Thomas W. Adkins
	 

	 	 	 	Fax: (512) 479-3940
	 
	 	 	 	 
	 

	 	(iii)
	 	if to ECA, to:
	 
	 	 	 	 
	 

	 	 	 	4643 South Ulster Street
	 

	 	 	 	Suite 1100
	 

	 	 	 	Denver, Colorado 80237
	 

	 	 	 	Attention: Michael S. Fletcher
	 

	 	 	 	Fax: (303) 694-2763
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	501 56th Street
	 

	 	 	 	Charleston, West Virginia 25304
	 

	 	 	 	Attention Donald C. Supcoe
	 

	 	 	 	Fax: (304) 925-3285
	 
	 	 	 	 
	 

	 	 	 	Vinson & Elkins L.L.P.
	 

	 	 	 	1001 Fannin, Suite 2500
	 

	 	 	 	Houston, Texas 77002
	 

	 	 	 	Attention: David P. Oelman
	 

	 	 	 	Fax: (713) 615-5861

 

 

or to such other address as such person may have furnished to the other persons identified in this
Section 9(b) in writing in accordance herewith.

     (c) Approval of Qualified Holders. Whenever the consent or approval of Qualified Holders of a
specified percentage of Registrable Securities is required hereunder, Registrable Securities held
by Affiliates (as such term is defined in Rule 405 under the Securities Act) of the Trust (other
than ECA or subsequent Qualified Holders if such Qualified Holders are deemed to be such Affiliates
solely by reason of their holdings of such Registrable Securities) shall not be counted in
determining whether such consent or approval was given by the Qualified Holders of such required
percentage.

     (d) Successors and Transferees. Any person or group of persons who purchases any Registrable
Securities from ECA or otherwise holds any Registrable Securities as a result of any sale,
liquidation, dividend or distribution by ECA or any of its Affiliates shall be deemed, for purposes
of this Agreement, to be a transferee of ECA, but if and only if such person or group (i) agrees to
be designated as a transferee, (ii) is specifically designated as a transferee in writing by ECA to
the Trust (iii) holds Registrable Securities representing at each one (1) million of the
then-outstanding Registrable Securities and (iv) in the case of a group such group shall
collectively constitute a Transferee for purposes of this Agreement (including without limitation,
for purposes of exercising any Demand Registration right transferred by ECA to such group) (a
“Transferee”). This Agreement shall inure to the benefit of and be binding upon such Transferees
and shall inure to the benefit of and be binding upon each such Transferees, provided that nothing
herein shall be deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms thereof. If ECA designates any person as a Transferee in
accordance with this Section 9(d), then the Registrable Securities acquired by such Transferee
shall be held subject to all of the terms of this Agreement, and by taking and holding such
Registrable Securities, such person shall be conclusively deemed to have agreed to be bound by and
to perform all of the terms and provisions of this Agreement and such person shall be entitled to
receive the benefits hereof.

     (e) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (f) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

     (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF DELAWARE.

     (h) Severability. If any term, provision, covenant or restriction of this Agreement is held
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants
and restrictions set forth herein shall remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, and the parties hereto shall use their reasonable best
efforts to find and employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or restriction, it being

 

 

intended that all of the rights and privileges of the parties shall be enforceable to the
fullest extent permitted by law.

     (i) Entire Agreement. This Agreement is intended by the parties as a final expression of
their agreement and is intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and the
registration rights granted by the Trust with respect to the Registrable Securities. There are no
restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein, with respect to the registration rights granted by the Trust with respect to the
Registrable Securities. This Agreement supersedes all prior agreements and undertakings among the
parties with respect to such registration rights. No party hereto shall have any rights, duties or
obligations other than those specifically set forth in this Agreement.

     (j) Termination. This Agreement and the obligations of the parties hereunder shall terminate
upon the end of the Effective Period, except for any liabilities or obligations under Section 4, 5
or 6 hereof, each of which shall remain in effect in accordance with its terms.

     (k) Specific Enforcement; Venue. The parties hereto acknowledge and agree that each would be
irreparably damaged if any of the provisions of this Agreement are not performed by the other in
accordance with their specific terms or are otherwise breached. It is accordingly agreed that each
party shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement
by the other and to enforce this Agreement and the terms and provisions hereof specifically against
the other, in addition to any other remedy to which such aggrieved party may be entitled at law or
in equity. Any action or proceeding seeking to enforce any provision of, or based on any rights
arising out of, this Agreement may be brought against any of the parties in the FEDERAL AND WEST
VIRGINIA STATE COURTS SITTING IN CHARLESTON, KANAWHA COUNTY, WEST VIRGINIA and the FEDERAL AND
TEXAS STATE COURTS SITTING IN AUSTIN, TRAVIS COUNTY, TEXAS and each of the parties consents to the
jurisdiction of such courts (and of the appropriate appellate courts) in any such action or
proceeding and waives any objection to venue laid therein. Process in any action or proceeding
referred to in the preceding sentence may be served on any party anywhere in the world.

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 

	 	 	ECA MARCELLUS TRUST I	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	The Bank of New York Mellon	 	 
	 

	 	 	 	Trust Company, N.A., as trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. Ulrich

	 	 
	 

	 	Name:
	 	
 Michael J. Ulrich
	 	 
	 

	 	Title:	 	Authorized Signatory	 	 

Signature Page to Registration Rights Agreement

 

 

	 	 	 	 	 	 	 

	 	 	ENERGY CORPORATION OF AMERICA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Mork 	 	 
	 

	 	Name:	 	John Mork 	 	 
	 

	 	Title:	 	President and Chief Executive Officer 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Mork 	 	 
	 

	 	Name:
	 	John Mork	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	4643 South Ulster Street 	 	 
	 

	 	 	 	Denver, Co 80237	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Julie Mork 	 	 
	 

	 	Name:
	 	Julie Mork	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	4643 South Ulster Street 	 	 
	 

	 	 	 	Denver, Co 80237 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Signature Page to Registration Rights Agreement

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