Document:

Exhibit

Exhibit 10.1
EXECUTION VERSION

WAIVER AND AMENDMENT NO. 3 TO SUPERPRIORITY SECURED DEBTOR-IN-POSSESSION CREDIT AGREEMENT

AMENDMENT No. 3, dated as of November 2, 2015 (this “Amendment”), to that certain Superpriority Secured Debtor-In-Possession Credit Agreement dated as of August 6, 2015 (as previously amended, the “Existing Credit Agreement” and, as so amended hereby, the “Credit Agreement”) among, inter alios, ALPHA NATURAL RESOURCES, INC., a Delaware corporation and a debtor and debtor-in-possession in the Cases (the “Borrower”), the SUBSIDIARY GUARANTORS party thereto from time to time, each a debtor and debtor-in-possession in the Cases, the LENDERS party thereto from time to time, the ISSUING BANKS party thereto from time to time, CITIBANK, N.A., as Administrative Agent (the “Administrative Agent”), and the other agents party thereto.
W I T N E S S E T H :
WHEREAS, the parties hereto desire to amend the Existing Credit Agreement, and to provide certain waivers thereto, as set forth herein.
NOW, THEREFORE, the parties hereto agree as follows:
SECTION 1. Defined Terms; References.  Unless otherwise specifically defined herein, each term used herein that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement (or the Existing Credit Agreement, if context so requires). Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Existing Credit Agreement shall, after this Amendment becomes effective, refer to the Credit Agreement as amended hereby.  Each reference to the “Credit Agreement” or “thereunder”, “thereof” or “therein” in respect of the Existing Credit Agreement, and each other similar reference, contained in any other Loan Document shall, after this Amendment becomes effective, similarly refer to the Credit Agreement as amended hereby.
SECTION 2.  Amendments to the Existing Credit Agreement.
(a)    Section 1.01 of the Existing Credit Agreement is hereby amended to add the following defined terms in appropriate alphabetical order:
“Permitted Term L/C Cap Increase” shall have the meaning assigned to such term in the definition of “Term L/C Cap”.  
“PLR” shall mean the business conducted by Pennsylvania Land Resources, LLC, a Delaware limited liability company. 

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“Restructuring Support Agreement” shall have the meaning assigned to such term in Section 5.17(c).
(b)    The definition of “Agreed Business Plan” in Section 1.01 of the Existing Credit Agreement is hereby amended and restated to read as follows:
“Agreed Business Plan” shall mean a five-year business plan reasonably acceptable to the Required Lenders, which will include, without limitation, (w) a determination of significant assets to be sold, assigned, abandoned and otherwise disposed of in connection with the Borrower’s restructuring, (x) a determination of the assumption, rejection and/or assignment of significant executory contracts and leases, (y) an assessment of the financial impact of mines that management determines will cease operating or will be disposed of, and (z) final assumptions with respect to collective bargaining agreements and retiree benefits.
(c)    Section 2.23(b) of the Existing Credit Agreement is hereby amended and restated as follows:
“In connection with the effectiveness of a Future ABL Facility (the date of such effectiveness, the “Revolving Facility Effective Date”), this Agreement and the other Loan Documents shall be amended (the “Future ABL Amendment”) with the consent of the Borrower, the Required Lenders and the Administrative Agent to permit the inclusion of the Future ABL Facility under this Agreement and the other Loan Documents, including to provide for customary voting rights (including in respect of provisions with respect to the borrowing base and borrowing base reporting, cash management systems and ABL related inspection rights and field exams, as to which the Term Loan Lenders shall not have consent rights with respect to amendments and waivers), rights with respect to Collateral (including the lien priorities contemplated hereunder), the creation of (and reserves relating to) “designated hedging obligations”, such changes to the asset sale and mandatory prepayments provisions of this Agreement to the extent relating to assets included in the borrowing base as would be customary for an asset based revolving credit facility, and any other amendments related to any of the foregoing that are not adverse in any material respect to the interests of the Term Loan Lenders.  For the avoidance of doubt, and notwithstanding anything to the contrary herein, the incurrence of a Future ABL Facility shall require the consent of the Required Lenders.”
(d)    Section 5.04(b) of the Existing Credit Agreement is hereby amended to add the following proviso at the immediate end thereof:
“; provided, that with respect to the fiscal quarter ended September 30, 2015, so long as the Borrower shall have delivered to the Administrative Agent for distribution to all Lenders, on or prior to the date that is 45 days after the end of such fiscal quarter, a consolidated balance sheet and related statements of operations and cash flows that would otherwise satisfy the requirements of 

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this paragraph (b), except that such balance sheet and statements shall not have been prepared in accordance with GAAP (but shall have been prepared based on an accounting convention, properly disclosed), the Borrower shall have until March 31, 2016 to satisfy the requirements of this paragraph (b);”
(e)    Section 5.04(b) of the Existing Credit Agreement is hereby amended to delete and replace the words “normal year-end audit adjustments” with the words “impairment testing and normal quarterly and year-end audit adjustments”; and
(f)    Section 5.04(c) of the Existing Credit Agreement is hereby amended and restated as follows:
“within twenty (20) days after the end of each fiscal month, (i) the consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such month and a related statement of operations and a summarized and condensed statement of cash flows of the Borrower and its Subsidiaries for such month and for the period commencing at the end of the previous fiscal year and ending with the end of such month, (A) prepared in accordance with GAAP (or otherwise satisfactory to the Administrative Agent, with disclosed differences from GAAP; it being understood and agreed that the summarized and condensed statement of cash flows will not be prepared in accordance with GAAP) and (B) presenting fairly and accurately the consolidated financial condition and results of operations and cash flows of the Borrower and the Subsidiaries as of the dates and for the periods to which they relate, subject, in the case of clauses (A) and (B), to the absence of footnotes and to impairment testing and normal quarterly and year-end audit adjustments (provided, that the foregoing obligations shall be deemed satisfied by the filing of a “Monthly Operating Report” with the Bankruptcy Court for the applicable month, on or prior to the date specified for compliance in this Section 5.04(c) (in the form of the “Monthly Operating Report” so filed for the period ended September 30, 2015), but only to the extent such information is specifically included in such “Monthly Operating Report”), and (ii) a capital expenditures report (the “Capital Expenditures Report”) prepared by the Borrower in reasonable detail setting forth the amount of Capital Expenditures of the Borrower and its Subsidiaries made or became legally obligated to make in such fiscal month (together with a comparison to the amounts budgeted for such periods);”
(g)    Section 5.04(d) of the Existing Credit Agreement is hereby amended to: (i) delete “(x)” at the beginning thereof; (ii) insert the words “in the form attached hereto as Exhibit E,” immediately following the words “a certificate of a Financial Officer of the Borrower”; (iii) delete the word “and” immediately 

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following the words “Sections 6.10 and 6.14”; and (iv) delete clause (y) thereof in its entirety.
(h)    The form of “Compliance Certificate” attached hereto as Exhibit A is hereby added to the Existing Credit Agreement as a new Exhibit E thereto.
(i)    Section 5.13 of the Existing Credit Agreement is hereby amended and restated as follows:
“Weekly Meetings.  (a) Hold weekly meetings (whether in person, telephonic or otherwise) among the management of and professional advisors to the Loan Parties, the Lenders, the Administrative Agent and the professional advisors to the pre-petition Administrative Agent and (b) supply the Lenders and the professional advisors to the pre-petition Administrative Agent with information reasonably requested as necessary to analyze and value the Loan Parties’ assets and liabilities.” 
(j)    Section 5.17 of the Existing Credit Agreement is hereby amended as follows:
(i)  Clause (a) thereof is hereby amended and restated as follows:
“Deliver to the Administrative Agent (for distribution to the private-side Lenders) a mine-by-mine analysis, detailing, among other things, historical and projected financials, transportation methodologies, coal types, mining method, facilities, annual capacity and asset retirement obligation liabilities, (i) with respect to an initial set of mines (starting, to the extent possible, with the largest mines) by no later than November 10, 2015, and (ii) with respect to all mines not covered in the foregoing delivery, by no later than November 20, 2015.”
(ii)     The text of clause (b) thereof is hereby deleted and replaced with the following:
“No later than November 30, 2015, identify and add additional assets, reasonably acceptable to the Required Lenders (it being understood and agreed that the assets identified to Davis Polk & Wardwell, LLP (counsel for the Administrative Agent) in writing on or about the date of the Amendment No. 3 to Superpriority Secured Debtor-in-Possession Credit Agreement shall be deemed reasonably acceptable to the Required Lenders), to the pending asset sale process and populate one or more datarooms with information and finalize marketing materials to support the marketing process related thereto.”

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(iii)      Clause (c) thereof is hereby amended and restated as follows:
“No later than January 8, 2016: (i)  populate one or more datarooms and finalize related marketing materials to support the marketing processes for certain assets reasonably acceptable to the Required Lenders; (ii) deliver to the Administrative Agent (for distribution to the Lenders) the Agreed Business Plan; and (iii) the Borrower and Guarantors enter into a restructuring support agreement with the Required Lenders and the Administrative Agent, in form and substance satisfactory to the Required Lenders and the Administrative Agent, based on the Agreed Business Plan (the “Restructuring Support Agreement”).”
(k)    Section 6.10 of the Existing Credit Agreement is hereby amended and restated:
(i)    to specify that the “Maximum Capital Expenditures” for the period ended December 4, 2015 shall be $70,200,000 and for the period ended January 8, 2016 shall be $102,900,000, in each case without further reference to any cushion; and
(ii)  to add a new clause (c) at the end thereof that shall provide:  
“Make or become legally obligated to make any Capital Expenditure in respect of PLR or its related businesses, except for Capital Expenditures of PLR in the ordinary course of business not exceeding (i) for the period starting from November 1, 2015 and ending on January 8, 2016, $15,000,000 (in the aggregate) and (ii) for all periods ending after January 8, 2016, in amounts to be set forth in the Agreed Business Plan.” 
(l)    Section 6.14 of the Existing Credit Agreement is hereby amended and restated as follows:
“Permit, (i) Consolidated Liquidity, as of the close of business on any Business Day during the month of August 2015, September 2015 or October 2015 to be less than (x) in the case of August 2015, $1,280,700,000 (or, if such Business Day is prior to the second borrowing of Term Loans, $1,080,700,000), (y) in the case of September 2015, $1,238,100,000 (or, if such Business Day is prior to the second borrowing of Term Loans, $1,038,100,000) and (z) in the case of October 2015, $1,161,200,000; (ii) Consolidated Liquidity, as of the close of business on any Business Day after October 31, 2015 but on or before January 8, 2016, to be less than the amount specified in the table below; or (iii) Consolidated Liquidity, as of the close of business on any Business Day following the week ending 

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January 8, 2016 to be less than the amount agreed for such purposes in the Agreed Business Plan.
	
		
	Week Ended
	Minimum Liquidity

	November 6, 2015
	$1,301.2 million

	November 13, 2015
	$1,255.3 million

	November 20, 2015
	$1,248.5 million

	November 27, 2015
	$1,229.0 million

	December 4, 2015
	$1,229.4 million

	December 11, 2015
	$1,212.3 million

	December 18, 2015
	$1,208.3 million

	December 25, 2015
	$1,183.7 million

	January 1, 2016
	$1,181.1 million

	January 8, 2016
	$1,177.5 million

(m)    Section 8.01(m) of the Existing Credit Agreement is hereby amended and restated as follows:
“default shall be made in the due observance or performance by the Borrower or other Loan Parties of a covenant contained in Section 5.13, and such default shall continue unremedied for a period of five (5) Business Days;”
SECTION 3.  Additional Amendments to the Existing Credit Agreement.  
(a)    Section 1.01 of the Existing Credit Agreement is hereby amended to include the following new defined terms in appropriate alphabetical order:
“New Term L/C Conditions” means, with respect to any Term Facility Letter of Credit, (a) not less than five (5) Business Days prior to the date of issuance of such Term Facility Letter of Credit, the Borrower shall have provided the Administrative Agent, for distribution to the Lenders, a written statement setting forth: (i) the requested amount of such Term Facility Letter of Credit and (ii) a reasonably detailed summary of the stated purpose for such Term Facility Letter of Credit and (b) the Administrative Agent shall not have received written notice from Lenders representing the Required Lenders objecting to the issuance of such Term Facility Letter of Credit within five (5) Business Days following the posting of the written statement referred to in clause (a) to the Lender dataroom (it being understood that such five (5) Business Day period may be reduced by the Administrative Agent if the Administrative Agent shall have received written confirmation from Lenders representing the Required Lenders affirmatively consenting to the issuance of such Term Facility Letter 

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of Credit); provided, however, that the foregoing clause (b) shall not apply to the first $5,000,000 of new Term Facility Letters of Credit issued on or after November 1, 2015 (which may be issued without any notice to or consent of any of the Lenders).”
“Supplemental DIP Order” means the order entered by the Bankruptcy Court approving the increase of the Term L/C Cap from $108,000,000 to $138,000,000 and certain other amendments and modifications to this Agreement.
(b)    The definition of “Orders” in Section 1.01 of the Existing Credit Agreement is hereby amended by inserting the words “the Supplemental DIP Order and” immediately following the words “to the extent applicable,”.
(c)    The definition of “Term L/C Cap” in Section 1.01 of the Existing Credit Agreement is hereby amended and restated as follows:
““Term L/C Cap” shall mean $138,000,000; provided, however, that such amount may be increased as agreed by the Borrower and Administrative Agent (any such increase, a “Permitted Term L/C Cap Increase”) (but in no event to exceed $201,000,000 in the aggregate), on a temporary basis (not to exceed, with respect to the replacement of any letter of credit, 10 Business Days), solely to facilitate the replacement of any letter of credit that was backstopped by the Term Facility Letter of Credit issued on the Effective Date pursuant to the Collateral Substitution Agreement with a Term Facility Letter of Credit.”
(d)    Section 2.04(b)(ii) of the Existing Credit Agreement is hereby amended and restated as follows:
“Deposits in Term Facility Letter of Credit Account.  The Term Facility Letter of Credit Account will be funded by the Borrower from time to time (including with the proceeds of the first Borrowing of Term Loans) in an amount not to exceed 102% of the Term L/C Cap; provided, however, that the aggregate amount of all deposits held in the Term Facility Letter of Credit Account shall not exceed $140,760,000 (excluding deposits on account of any Permitted Term L/C Cap Increase that is then in effect).”
(e)    Section 2.04(b)(iii) of the Existing Credit Agreement is hereby amended (i) to delete the word “and” at the end of clause (A) thereof, (ii) to delete and replace the “.” at the end of clause (B) thereof with “; and”, and (iii) to insert a new clause (C) as follows:

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“(C) amounts deposited in the Term Facility Letter of Credit Account, to the extent deposited solely in connection with a Permitted Term L/C Cap Increase, shall be returned to the Borrower by the Term L/C Issuing Bank (and the Borrower hereby instructs the Term L/C Issuing Bank to return such amounts) reasonably promptly following satisfaction of the following conditions:  (i) the initial Term Facility Letter of Credit issued to the Receivables Agent shall have been reduced in a corresponding amount and the Term L/C Issuing Bank shall have received sufficient documentation to such effect and (ii) after giving effect to such withdrawal, the Term Facility Letter of Credit Deposit Amount would not be less than 102% of the Term L/C Exposure at such time.”
(f)    Clause (ii) of Section 2.05(b) of the Existing Credit Agreement is hereby amended and restated as follows:
“(ii) in the case of the Term Facility Letters of Credit, (A) the Term Facility Letter of Credit Deposit Amount shall not be less than 102% of the Term L/C Exposure, (B) the Term L/C Exposure shall not exceed the Term L/C Cap (in the case of each of the preceding clauses (A) and (B), after giving effect to any substantially simultaneous reduction in the Term L/C Exposure) and (C) except in connection with a Term Facility Letter of Credit issued pursuant to Permitted Term L/C Cap Increase, the New Term L/C Conditions shall have been satisfied,”  
(g)    Section 4.02(b) of the Existing Credit Agreement is hereby amended: (i) to insert the words “, and to the extent applicable, the Supplemental DIP Order,” immediately prior to the words “shall be in full force and effect” in the second proviso thereof and (ii) to insert the words “, or to the extent applicable, the Supplemental DIP Order,” immediately prior to the words “is the subject of a pending appeal”.
(h)    Section 8.01(q) of the Existing Credit Agreement is hereby amended: (i) in clause (ii) thereof by deleting and replacing the words “or the Final Order” with the words “, the Final Order or the Supplemental DIP Order” and (ii) in clause (iv) thereof, to insert the words “the Final Order or the Supplemental DIP Order shall cease” immediately prior to the words “to be in full force and effect”.
SECTION 4.  Limited Waiver.  The Required Lenders hereby waive any Defaults or Events of Default that have occurred solely on account of the Borrower’s failure to timely comply with the requirements of Sections 5.04(c) and 5.04(d) with respect to the months ended August 31, 2015 and September 30, 2015 and Section 5.17(a).  Except for the limited waiver expressly set forth in this Section 4, no other waiver shall be or be deemed provided hereunder.

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SECTION 5.  Governing Law.  This Amendment shall be construed in accordance with and governed by the laws of the State of New York and (to the extent applicable) the Bankruptcy Code. 
SECTION 6.  Counterparts.  This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
SECTION 7.  Severability.  Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and without affecting the validity or enforceability of any provision in any other jurisdiction.
SECTION 8.  Loan Document.  This Amendment shall constitute a Loan Document.
SECTION 9. Fees.  The Borrower shall, and hereby agrees to, pay all fees, costs and expenses due and payable incurred in connection with this Amendment, including (x) a consent fee to each Lender that executes and delivers to the Administrative Agent a counterpart hereof prior to 5:00 p.m., New York City time, on November 2, 2015, in an amount equal to 0.25% of the outstanding principal amount of each such Lender’s Term Loans and (y) all other fees, costs and expenses required to be paid by the Borrower in connection with this Amendment.  The fees, costs and expenses referred to in this Section 9 shall be earned upon the occurrence of the Amendment No. 3 Effective Date, and shall be due and payable on November 3, 2015.
SECTION 10.  Representations and Warranties.  The Borrower represents and warrants that after giving effect to this Amendment (i) the representations and warranties set forth in Article III of the Existing Credit Agreement are true and correct in all material respects (except to the extent any such representation and warranty itself is qualified by “materiality”, “Material Adverse Effect” or any similar qualifier, in which case they are true and correct in all respects) as of the date hereof and (ii) no Default or Event of Default has occurred and is continuing as of the date hereof. 
SECTION 11.  Effectiveness of this Amendment and Certain Amendments Set Forth in Section 2.  This Amendment (other than the amendments set forth in Section 2(a), (b), (j), (k), (l) and (m)  and Section 3 of this Amendment) shall become effective on the date when the Administrative Agent shall have received from each of the Borrower, the Guarantors, the Required Lenders and the Term L/C Issuing Bank a counterparty hereof signed by such party or facsimile or other written confirmation (in form satisfactory to the Administrative Agent) that such party has signed a counterpart hereof (such date, the “Amendment No. 3 Effective Date”).

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SECTION 12.  Effectiveness of Other Amendments Set Forth in Section 2.  Notwithstanding the occurrence of the Amendment No. 3 Effective Date, the amendments set forth in Section 2(a), (b), (j), (k), (l) and (m) of this Amendment shall only become effective on the date on which the following conditions shall have been satisfied:
(a)    the Amendment No. 3 Effective Date shall have occurred; and
(b)    notice has been provided to the Creditors’ Committee and the U.S. Trustee (each as defined in the Final Order) in accordance with Section 7(c)(ii) of the Final Order and seven (7) Business Days shall have passed since the delivery of such notice without receipt of an objection from the Creditors’ Committee or the U.S. Trustee to the amendments in Section 2(a), (b), (j), (k), (l) or (m) of this Amendment or, if any such objection shall have been made, the Bankruptcy Court shall have entered an order, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders, approving the amendments contained in Section 2(a), (b), (j), (k), (l) or (m) of this Amendment, which order shall have become a final and non-appealable order.
SECTION 13.  Effectiveness of the Amendments Set Forth in Section 3.  Notwithstanding the occurrence of the Amendment No. 3 Effective Date, the amendments contained in Section 3 of this Amendment shall only become effective on the date on which the following conditions shall have been satisfied:
(a)    the Amendment No. 3 Effective Date shall have occurred;
(b)    the Bankruptcy Court shall have entered an order, in form and substance reasonably satisfactory to the Administrative Agent and Term L/C Issuing Bank, approving the amendments contained in Section 3 of this Amendment and providing that any Term Facility Letters of Credit issued pursuant to the increased Term L/C Cap shall have all of the same rights and protections as the Term Facility Letter of Credit issued on the Effective Date (such order, together with the order described in Section 12(b) of this Amendment, if any and which may be the same order, collectively, the “Supplemental DIP Order”), and the Supplemental DIP Order shall have become a final and non-appealable order;
(c)    the Administrative Agent shall have received the opinion of Jones Day, special counsel for the Loan Parties, in form and substance reasonably satisfactory to the Administrative Agent; 
(d)    the Borrower shall have delivered to the Administrative Agent an Officer’s Certificate certifying the correctness of the matters set forth in Section 9; and

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(e)    the Borrower shall have paid all fees due and payable in respect of the amendments relating to the Term L/C Cap contemplated by Section 3 of this Amendment, and all out-of-pocket expenses incurred in connection therewith to the extent required to be paid hereunder or pursuant to the Credit Agreement.
SECTION 14.  Certain Other Consequences of Effectiveness; Reaffirmation.  
(a)    Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, the Collateral Agent, the other Loan Parties, any Guarantor, or any other party under the Existing Credit Agreement or any other Loan Documents, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Existing Credit Agreement or the other Loan Documents, all of which are ratified and affirmed in all respects and shall continue in full force and effect.
(b)    By signing this Amendment, each Loan Party hereby confirms and reaffirms that (i) the obligations of each of the Loan Party under the Loan Documents, as amended hereby, constitute “Obligations” (as defined in the Existing Credit Agreement) and are entitled to the benefit of the guarantees and the security interests set forth in the Security Documents or any other Loan Documents, (ii) the Loan Documents are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects, and (iii) all Liens granted, conveyed or assigned to the Collateral Agent by such Loan Party pursuant to each Loan Document to which it is party remain in full force and effect, are not released or reduced, and continue to secure full payment and performance of the Obligations as amended hereby.
[Remainder of this page left blank intentionally.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.
 
	
		
	ALPHA NATURAL RESOURCES,

	     INC., as the Borrower

	 
	 

	BY:
	/S/ Philip J. Cavatoni

	 
	NAME: Philip J. Cavatoni

	 
	TITLE: Executive Vice President & Chief Financial and

	 
	Strategy Officer

GUARANTORS:

ALPHA AMERICAN COAL COMPANY, LLC
THUNDER MINING COMPANY II, INC.
ALEX ENERGY, INC.
ALPHA AMERICAN COAL HOLDING, LLC
ALPHA APPALACHIA HOLDINGS, INC.
ALPHA APPALACHIA SERVICES, INC.
ALPHA COAL RESOURCES COMPANY, LLC
ALPHA COAL SALES CO., LLC
ALPHA COAL WEST, INC.
ALPHA EUROPEAN SALES, INC.
ALPHA INDIA, LLC
ALPHA LAND AND RESERVES, LLC
ALPHA MIDWEST HOLDING COMPANY
ALPHA NATURAL RESOURCES, LLC
ALPHA NATURAL RESOURCES INTERNATIONAL, LLC
ALPHA NATURAL RESOURCES SERVICES, LLC
ALPHA PA COAL TERMINAL, LLC
ALPHA SHIPPING AND CHARTERING, LLC
ALPHA SUB EIGHT, LLC
ALPHA SUB ELEVEN, INC.
ALPHA SUB NINE, LLC
ALPHA SUB ONE, LLC
ALPHA SUB TEN, INC.
ALPHA SUB TWO, LLC
ALPHA TERMINAL COMPANY, LLC
ALPHA WYOMING LAND COMPANY, LLC
AMFIRE, LLC
AMFIRE HOLDINGS, LLC
AMFIRE MINING COMPANY, LLC
APPALACHIA COAL SALES COMPANY, INC.
APPALACHIA HOLDING COMPANY
ARACOMA COAL COMPANY, INC.

[Signature Page to Amendment No. 3]

    

AXIOM EXCAVATING AND GRADING SERVICES, LLC
BANDMILL COAL CORPORATION
BANDYTOWN COAL COMPANY
BARBARA HOLDINGS INC.
BARNABUS LAND COMPANY
BELFRY COAL CORPORATION
BIG BEAR MINING COMPANY
BLACK CASTLE MINING COMPANY, INC.
BLACK KING MINE DEVELOPMENT CO.
BLACK MOUNTAIN CUMBERLAND RESOURCES, INC.
BOONE EAST DEVELOPMENT CO.
BROOKS RUN MINING COMPANY, LLC
COAL GAS RECOVERY II, LLC (
PENNSYLVANIA LAND RESOURCES, LLC
BROOKS RUN SOUTH MINING, LLC
BUCHANAN ENERGY COMPANY, LLC
CASTLE GATE HOLDING COMPANY
CLEAR FORK COAL COMPANY
CRYSTAL FUELS COMPANY
CUMBERLAND COAL RESOURCES, LP (By: Pennsylvania Services Corporation, as general partner) 
DEHUE COAL COMPANY
DELBARTON MINING COMPANY
DELTA MINE HOLDING COMPANY
DFDSTE CORP.
DICKENSON-RUSSELL COAL COMPANY, LLC
DICKENSON-RUSSELL LAND AND RESERVES, LLC
DRIH CORPORATION
DUCHESS COAL COMPANY
EAGLE ENERGY, INC.
ELK RUN COAL COMPANY, INC.
EMERALD COAL RESOURCES, LP (By: Pennsylvania Services Corporation, as general partner)
ENTERPRISE MINING COMPANY, LLC
ESPERANZA COAL CO., LLC
FOUNDATION MINING, LLC
FOUNDATION PA COAL COMPANY, LLC
FOUNDATION ROYALTY COMPANY
FREEPORT MINING, LLC
FREEPORT RESOURCES COMPANY, LLC
GOALS COAL COMPANY
GREEN VALLEY COAL COMPANY
GREYEAGLE COAL COMPANY
HARLAN RECLAMATION SERVICES LLC
HERNDON PROCESSING COMPANY, LLC
HIGHLAND MINING COMPANY

[Signature Page to Amendment No. 3]

    

HOPKINS CREEK COAL COMPANY
INDEPENDENCE COAL COMPANY, INC.
JACKS BRANCH COAL COMPANY
JAY CREEK HOLDING, LLC
KANAWHA ENERGY COMPANY
KEPLER PROCESSING COMPANY, LLC
KINGSTON MINING, INC.
KINGWOOD MINING COMPANY, LLC
KNOX CREEK COAL CORPORATION
LAUREN LAND COMPANY
LAXARE, INC.
LITWAR PROCESSING COMPANY, LLC
LOGAN COUNTY MINE SERVICES, INC.
LONG FORK COAL COMPANY
LYNN BRANCH COAL COMPANY, INC.
MAPLE MEADOW MINING COMPANY
MARFORK COAL COMPANY, INC.
MARTIN COUNTY COAL CORPORATION
MAXXIM REBUILD CO., LLC
MAXXIM SHARED SERVICES, LLC
MAXXUM CARBON RESOURCES, LLC
MCDOWELL-WYOMING COAL COMPANY, LLC
MILL BRANCH COAL CORPORATION
NEW RIDGE MINING COMPANY
NEW RIVER ENERGY CORPORATION
NEWEAGLE INDUSTRIES, INC.
NICEWONDER CONTRACTING, INC.
NORTH FORK COAL CORPORATION
OMAR MINING COMPANY
PARAMONT COAL COMPANY VIRGINIA, LLC
PAYNTER BRANCH MINING, INC.
PEERLESS EAGLE COAL CO.
PENNSYLVANIA LAND HOLDINGS COMPANY, LLC
PENNSYLVANIA LAND RESOURCES HOLDING COMPANY, LLC
PENNSYLVANIA SERVICES CORPORATION
PERFORMANCE COAL COMPANY
PETER CAVE MINING COMPANY
PIGEON CREEK PROCESSING CORPORATION
PILGRIM MINING COMPANY, INC.
PIONEER FUEL CORPORATION
PLATEAU MINING CORPORATION
POWER MOUNTAIN COAL COMPANY
PREMIUM ENERGY, LLC
RAWL SALES & PROCESSING CO.
REPUBLIC ENERGY, INC.
RESOURCE DEVELOPMENT LLC
RESOURCE LAND COMPANY LLC

[Signature Page to Amendment No. 3]

    

RIVER PROCESSING CORPORATION
RIVERSIDE ENERGY COMPANY, LLC
RIVERTON COAL PRODUCTION INC.
ROAD FORK DEVELOPMENT COMPANY, INC.
ROBINSON-PHILLIPS COAL COMPANY
ROCKSPRING DEVELOPMENT, INC.
ROSTRAVER ENERGY COMPANY
RUM CREEK COAL SALES, INC.
RUSSELL FORK COAL COMPANY
SHANNON-POCAHONTAS COAL CORPORATION
SHANNON-POCAHONTAS MINING COMPANY
SIDNEY COAL COMPANY, INC.
SPARTAN MINING COMPANY
STIRRAT COAL COMPANY
SYCAMORE FUELS, INC.
T. C. H. COAL CO.
TENNESSEE CONSOLIDATED COAL COMPANY
TRACE CREEK COAL COMPANY
TWIN STAR MINING, INC.
WABASH MINE HOLDING COMPANY
WARRICK HOLDING COMPANY
WEST KENTUCKY ENERGY COMPANY
WHITE BUCK COAL COMPANY
WILLIAMS MOUNTAIN COAL COMPANY 
WYOMAC COAL COMPANY, INC., each as a Guarantor

Executing this Agreement as an authorized officer of each of the foregoing persons on behalf of and so as to bind the persons named above under the caption “Guarantors”

By:    /s/  Richard H. Verheij _______________ 
Name: Richard H. Verheij 
Title: Secretary

[Signature Page to Amendment No. 3]

    

	
		
	CITIBANK, N.A., as Administrative

	     Agent, Collateral Agent and Term L/C

	     Issuing Bank

	 
	 

	By:
	/s/ Allister Chan

	 
	Name: Allister Chan

	 
	Title: Vice President

[Signature Page to Amendment No. 3]
    

Exhibit A

Form of Compliance Certificate

    

FORM OF COMPLIANCE CERTIFICATE
This Compliance Certificate is delivered to you pursuant to 5.04(d) of that Superpriority Secured Debtor-in-Possession Credit Agreement dated as of August 6, 2014 (as amended, restated, modified and/or supplemented from time to time, the “DIP Credit Agreement”), among Alpha Natural Resources, Inc., a Debtor and Debtor-in-Possession under Chapter 11 of the Bankruptcy Code (the “Borrower”), the Subsidiary Guarantors party thereto, various Lenders and Citibank, N.A., as Administrative Agent. Terms defined in the DIP Credit Agreement and not otherwise defined herein are used herein as therein defined.
		
	1.
	I am the duly elected [●] of the Borrower and a Responsible Officer of the Borrower;

		
	2.
	I have reviewed the terms of the DIP Credit Agreement and I have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and conditions of the Borrower and its subsidiaries, on a consolidated basis, during the applicable preceding [fiscal year][fiscal quarter][fiscal month];

		
	3.
	[The attached financial statements fairly present, in all material respects, in accordance with GAAP, the consolidated financial condition of the Borrower as at the dates indicated and its income and cash flows for the periods indicated[, subject to the absence of footnotes and changes resulting from impairment testing and normal quarterly and year-end audit adjustments]1.]2 

		
	4.
	[Except as described in the disclosure set forth below, the][The] examinations described in paragraph 2 did not disclose, and I have no knowledge of the existence of any condition or event which constitutes a Default or Event of Default that exists as of the date of this Compliance Certificate [and the disclosure set forth below specifies, in reasonable detail, the nature of any such condition or event and any action taken or proposed to be taken with respect thereto.]

		
	5.
	Attached as Schedule 1 hereto are calculations in reasonable detail demonstrating compliance with the covenants set forth in Sections 6.10 and 6.14 of the DIP Credit Agreement.

		
	6.
	[The description below sets forth the exceptions to paragraph 2 by listing, in reasonable detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

________________________________________________________________
________________________________________________________________
*         *         *

___________________________________________
1 Include only to the extent the relevant Compliance Certificate is delivered in connection with unaudited quarterly financials.

2 Include only to the extent the relevant Compliance Certificate is delivered in connection with unaudited quarterly financials or audited annual financials. 

The foregoing certifications, together with the information set forth in the Schedules hereto [and the financial statements delivered with this Compliance Certificate in support hereof,] are made and delivered as of the date first written above.

	
		
	ALPHA NATURAL RESOURCES, INC.

	By:
	 

	 
	Name:   

	 
	Title:   [Chief Financial Officer]

Calculation of Capital Expenditures and Minimum Liquidity3 
Capital Expenditures:  
[Cumulative Capital Expenditures:
Applicable Period:                __________________
Total Capital Expenditures:4                      __________________
Maximum Capital Expenditures Permitted:    __________________
Compliance with Section 6.10(a):                  Yes / No]5 
[Trailing Six Months Capital Expenditures:
Applicable Period:                __________________
Total Capital Expenditures:6            __________________
Maximum Capital Expenditures Permitted:    __________________
Compliance with Section 6.10(b):                  Yes / No]7 
Minimum Liquidity:
Applicable Period:                __________________
Calculation of Consolidated Liquidity:            
A.    Unrestricted cash 
and Permitted Investments:        ____________
B.    Bonding L/C Collateral:            ____________
C.    Term L/C Collateral:            ____________
D.    Collateral Substitution Deposit Amount:    ____________
E.    FMV of Rice Energy, Inc. Shares:    ____________
F.    Add-back for financing fees/OID:    ____________
Total Consolidated Liquidity:        __________________

___________________________________________
3[Formulas included for illustrative/convenience purposes only.  Terms and conditions of the DIP Credit Agreement shall govern all calculations.]
4[ Includes both Capital Expenditures made and legally obligated to make.]
5 [For periods ending on or prior to March 31, 2016.]
6[ Includes both Capital Expenditures made and legally obligated to make.]
7 [Commencing with the trailing six month period ending April 30, 2016.]
 

    

Required Minimum Liquidity:            __________________
   Compliance with Section 6.14:                        Yes / NoExhibit 4.1

 

 

 

NORTH
ATLANTIC HOLDING COMPANY, INC.

 

$11,000,000

 

7%
Senior Notes due December 31, 2023

 

 

 

Note
Purchase Agreement

 

 

 

Dated
January 21, 2014

 

 

 

    	 

    	 

    

 

Table
of Contents

	 	 	 	 	 	 
	Section	Heading                  	 	Page
	 	 	 	 	 	 
	Section
    1.	Authorization of Notes	 	1
	 	 	 	 	 	 
	Section
    2.	Sale and Purchase of Notes	 	1
	 	 	 	 	 	 
	Section
    3.	Closing	 	1
	 	 	 	 	 	 
	Section
    4.	Conditions to Closing	 	2
	 	 	 	 	 
	 	Section 4.1.	 	Representations and Warranties	 	2
	 	Section 4.2.	 	Performance; No Default	 	2
	 	Section 4.3.	 	Compliance Certificates	 	2
	 	Section 4.4.	 	Opinions of Counsel	 	2
	 	Section 4.5.	 	Purchase Permitted By Applicable Law, Etc	 	2
	 	Section 4.6.	 	Private Placement Number	 	2
	 	Section 4.7.	 	Proceedings and Documents	 	3
	 	 	 	 	 	 
	Section
    5.	Representations and Warranties
    of The Company	 	3
	 	 	 	 	 	 
	 	Section 5.1.	 	Organization; Power and Authority	 	3
	 	Section 5.2.	 	Authorization, Etc	 	3
	 	Section 5.3.	 	Disclosure	 	3
	 	Section 5.4.	 	Compliance with Laws, Other Instruments, Etc	 	3
	 	Section 5.5.	 	Governmental Authorizations, Etc	 	4
	 	Section 5.6.	 	Private Offering by the Company	 	4
	 	Section 5.7.	 	Use of Proceeds; Margin Regulations	 	4
	 	 	 	 	 
	Section
    6.	Representations of The
    Purchasers	 	4
	 	 	 	 	 	 
	Section
    7.	Payment and Prepayment
    of The Notes	 	5
	 	 	 	 	 
	 	Section 7.1.	 	Maturity	 	5
	 	Section 7.2.	 	Optional Prepayments	 	5
	 	Section 7.3.	 	Allocation of Partial Prepayments	 	5
	 	Section 7.4.	 	Maturity; Surrender, Etc	 	5
	 	Section 7.5.	 	Purchase of Notes	 	5
	 	 	 	 	 	 
	Section
    8.	Covenants	 	6
	 	 	 	 	 	 
	 	Section 8.1.	 	Transactions with Affiliates	 	6
	 	Section 8.2.	 	Dividends Redemption or Repurchase of Capital Stock	 	6

 

    	-i-

    	 

    

 

	Section
    9.	Events of Default	 	7
	 	 	 	 	 	 
	Section
    10.	Remedies on Default, Etc	 	8
	 	 	 	 	 
	 	Section 10.1.	 	Acceleration	 	8
	 	Section 10.2.	 	Other Remedies	 	8
	 	Section 10.3.	 	Rescission	 	8
	 	Section 10.4.	 	No Waivers or Election of Remedies, Expenses, Etc	 	9
	 	 	 	 	 	 
	Section 11.	Registration; Exchange;
    Substitution of Notes	 	9
	 	 	 	 	 	 
	 	Section 11.1.	 	Registration of Notes	 	9
	 	Section 11.2.	 	Transfer and Exchange of Notes	 	9
	 	Section 11.3.	 	Replacement of Notes	 	9
	 	Section 11.4.	 	Legends	 	10
	 	 	 	 	 	 
	Section 12.	Payments on Notes	 	10
	 	 	 	 	 	 
	 	Section 12.1.	 	Place of Payment	 	10
	 	Section 12.2.	 	Home Office Payment	 	11
	 	 	 	 	 	 
	Section 13.	Transaction Expenses	 	11
	 	 	 	 	 	 
	Section 14.	Survival of Representations
    and Warranties; Entire Agreement	 	11
	 	 	 	 	 	 
	Section 15.	Amendment and Waiver	 	11
	 	 	 	 	 
	 	Section 15.1.	 	Requirements	 	11
	 	Section 15.2.	 	Solicitation of Holders of Notes	 	12
	 	Section 15.3.	 	Binding Effect, Etc	 	12
	 	Section 15.4.	 	Notes Held by Company, Etc	 	12
	 	 	 	 	 	 
	Section 16.	Notices	 	12
	 	 	 	 	 	 
	Section 17.	Confidential Information	 	13
	 	 	 	 	 	 
	Section 18.	Miscellaneous	 	13
	 	 	 	 	 	 
	 	Section 18.1.	 	Successors and Assigns	 	13
	 	Section 18.2.	 	Payments Due on Non-Business Days	 	13
	 	Section 18.3.	 	Accounting Terms	 	14
	 	Section 18.4.	 	Severability	 	14
	 	Section 18.5.	 	Construction, Etc	 	14
	 	Section 18.6.	 	Counterparts	 	14
	 	Section 18.7.	 	Governing Law	 	14
	 	Section 18.8.	 	Jurisdiction and Process; Waiver of Jury Trial	 	14

 

    	-ii-

    	 

    

 

	 	 	 
	Schedule
    A	—	Information Relating to Purchasers
	 	 	 
	Schedule
    B	—	Defined Terms
	 	 	 
	Exhibit
    1	—	Form of 7% Senior Note due December 31, 2023

 

    	-iii-

    	 

    

  

 

7%
Senior Notes due December 31, 2023

 

January
21, 2014

 

	 	 
	To Each of The Purchasers Listed in	 
	Schedule
    A Hereto:	 

 

Ladies
and Gentlemen:

 

North
Atlantic Holding Company, Inc., a Delaware corporation (the “Company”), agrees with each of the
purchasers whose names appear at the end hereof (each, a “Purchaser” and, collectively, the “Purchasers”)
as follows:

 

Section
1.          Authorization
of Notes.

 

The
Company will authorize the issue and sale of $11,000,000 aggregate principal amount of its 7% Senior Notes due December 31, 2023
(the “Notes”, such term to include any such notes issued in substitution therefor pursuant to
Section 11). The Notes shall be substantially in the form set out in Exhibit 1. The outstanding principal amount of the Notes
may be increased if the Company elects to pay interest in kind as set forth in the Notes. Certain capitalized and other terms
used in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are,
unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

 

Section
2.          Sale and Purchase of Notes.

 

Subject
to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase
from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s
name in Schedule A at the purchase price of 100% of the principal amount thereof. The Purchasers’ obligations hereunder
are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance
of any obligation by any other Purchaser hereunder.

 

Section
3.          Closing.

 

The
sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Milbank, Tweed, Hadley & McCloy
LLP, 1 Chase Manhattan Plaza, New York, New York 10005, at 10:00 a.m., New York City time, at a closing (the “Closing”)
on a date to be determined by the Company following the consummation of the Rights Offering. At the Closing the Company will deliver
to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in
denominations of at least $10,000 as such Purchaser may request) dated the date of the Closing and registered in such Purchaser’s
name (or in the name of its nominee), against delivery by such Purchaser to the Company or its order of immediately available
funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company
to an account provided to each Purchaser by the Company. If at the Closing the Company shall fail to tender such Notes to any
Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to
such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this
Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment.

 

[SIGNATURE
PAGE TO NOTE PURCHASE AGREEMENT]

 

    	 

    	 

    

 

Section
4.          Conditions to Closing.

 

Each
Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment
to such Purchaser’s satisfaction, prior to or at the Closing, of the following conditions:

 

Section
4.1.     Representations and Warranties. The representations and warranties of the Company in this
Agreement shall be correct when made and at the time of the Closing.

 

Section
4.2.     Performance; No Default. The Company shall have performed and complied with all agreements
and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing and after
giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section 5.7)
no Default or Event of Default shall have occurred and be continuing.

 

Section
4.3.      Compliance Certificates.

 

(a)     Officer’s
Certificate. The Company shall have delivered to such Purchaser an Officer’s Certificate, dated the date of the Closing,
certifying that the conditions specified in Sections 4.1 and 4.2 have been fulfilled.

 

(b)     Secretary’s
Certificate. The Company shall have delivered to such Purchaser a certificate of its Secretary or Assistant Secretary, dated
the date of Closing, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization,
execution and delivery of the Notes and this Agreement.

 

Section
4.4.     Opinions of Counsel. Such Purchaser shall have received an opinion dated the date of the
Closing from Milbank, Tweed, Hadley & McCloy LLP, counsel for the Company.

 

Section
4.5.     Purchase Permitted By Applicable Law, Etc. On the date of the Closing such Purchaser’s
purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject,
(b) not violate any applicable law or regulation (including without limitation Regulation T or U of the Board of Governors of
the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable
law or regulation, which law or regulation was not in effect on the date hereof.

 

Section
4.6.     Private Placement Number. A Private Placement Number issued by Standard & Poor’s
CUSIP Service Bureau shall have been obtained for the Notes.

 

    	2

    	 

    

 

Section
4.7.     Proceedings and Documents. All corporate and other proceedings in connection with the transactions
contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser.

 

Section
5.          Representations and Warranties of The Company.

 

The
Company represents and warrants to each Purchaser as of the date of Closing (except to the extent such representations and warranties
expressly relate to an earlier date, in which case such representations and warranties are made as of such earlier date) that:

 

Section
5.1.     Organization; Power and Authority. The Company is a corporation duly organized, validly
existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation
and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as
to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. The Company has the corporate power and authority to own or hold under lease the properties
it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver
this Agreement and the Notes and to perform the provisions hereof and thereof.

 

Section
5.2.     Authorization, Etc. This Agreement and the Notes have been duly authorized by all necessary
corporate action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note
will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms,
except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

 

Section
5.3.     Disclosure. The Company has delivered to each Purchaser a copy of a Private Placement Memorandum,
dated November 14, 2013 (including any supplements thereto, the “Memorandum”), relating to the
rights offering by the Company consisting of (i) the Notes and (ii) warrants to purchase 11,000,000 units of membership interests
in Intrepid Brands, LLC (the “Right Offering”). This Agreement, the Memorandum and the documents, certificates
or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated
hereby (this Agreement, the Memorandum and such documents, certificates or other writings delivered to each Purchaser prior to
January 21, 2014 being referred to, collectively, as the “Disclosure Documents”), taken as a
whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements
therein not misleading in light of the circumstances under which they were made.

 

Section
5.4.     Compliance with Laws, Other Instruments, Etc. The execution, delivery and performance by
the Company of this Agreement and the Notes will not (i) contravene, result in any breach of, or constitute a default under, or
result in the creation of any Lien in respect of any property of the Company under, any indenture, mortgage, deed of trust, loan,
purchase or credit agreement, lease, corporate charter or by-laws, or any other Material agreement or instrument to which the
Company is bound or by which the Company or any of its properties may be bound or affected, (ii) conflict with or result in a
breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to the Company or (iii) violate any provision of any statute or other rule or regulation of any Governmental
Authority applicable to the Company, except with respect to each of clauses (i), (ii) and (iii) above that would not reasonably
be expected to have a Material Adverse Effect.

 

    	3

    	 

    

 

Section
5.5.     Governmental Authorizations, Etc. No consent, approval or authorization of, or registration,
filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by
the Company of this Agreement or the Notes.

 

Section
5.6.     Private Offering by the Company. Neither the Company nor anyone acting on its behalf has
offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached
or negotiated in respect thereof with, any person other than the Purchasers and the other owners of the Company, each of which
has been offered the Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or
will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the
Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

 

Section
5.7.     Use of Proceeds; Margin Regulations. No part of the proceeds from the sale of the Notes
hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation
U of the Board of Governors of the Federal Reserve System (12 CFR 221) or to involve any broker or dealer in a violation of Regulation
T of said Board (12 CFR 220). As used in this Section, the terms “margin stock” and “purpose
of buying or carrying” shall have the meanings assigned to them in said Regulation U.

 

Section
6.          Representations of The Purchasers.

 

(a)     Each
Purchaser severally represents to the Company that it is (i) a Qualified Institutional Buyer or (ii) an Accredited Investor and
is purchasing the Notes in the ordinary course of its business solely for its own account or for accounts of investors who are
Accredited Investors for whom such Purchaser acts as a duly authorized fiduciary or agent and as to which account such Purchaser
exercises sole investment discretion, in each case for the purpose of investment, without a view to the distribution or resale
of such Notes, but subject, in any event, to the disposition of the Notes being at all times within such Purchaser’s control.

 

(b)     Each
Purchaser severally represents to the Company that it has such knowledge and experience in financial and business matters that
it is capable of evaluating the merits and risks of a purchase of the Note for itself or, to the extent such Purchaser is purchasing
the Note other than from its own account, for each person for whose account such Purchaser is acquiring any Notes, and each Purchaser
has determined that the Note is a suitable investment for itself or, to the extent such Purchaser is purchasing the Note other
than from its own account, for each person for whose account such Purchaser is acquiring any Notes, both in the nature and the
principal amount of the Note being acquired. Each Purchaser acknowledges that it has received the information described in Section
5.3 concerning the Company and the Note and has been given the opportunity to ask questions of and receive answers from representatives
of the Company.

 

    	4

    	 

    

 

(c)     Each
Purchaser acknowledges that the Company is entering into this Note in reliance upon the representations, warranties and acknowledgements
of the Purchasers and agrees that its representations, warranties and acknowledgements shall survive the execution and delivery
of this Note and the date of the Closing.

 

(d)     Each
Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant
to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither
such registration nor such an exemption is required by law, and that the Company is not required to register the Notes.

 

Section
7.          Payment and Prepayment of
The Notes.

 

Section
7.1.     Maturity. As provided therein, the entire unpaid principal balance of the Notes shall be
due and payable on the stated maturity date thereof.

 

Section
7.2.     Optional Prepayments. The Company may, at its option, upon notice as provided below,
prepay at any time all, or from time to time any part of, the Notes, in an amount not less than 5% of the aggregate principal
amount of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid without
premium or penalty. The Company will give each holder of Notes written notice of each optional prepayment under this Section
7.2 not less than 5 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall
specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date,
the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 7.3) and the
interest to be paid on the prepayment date with respect to such principal amount being prepaid. 

 

Section
7.3.     Allocation of Partial Prepayments. In the case of each partial prepayment of the Notes,
the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion,
as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

 

Section
7.4.     Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to this Section
7, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment
(which shall be a Business Day), together with interest on such principal amount accrued to such date. From and after such date,
unless the Company shall fail to pay such principal amount when so due and payable, together with the interest as aforesaid, interest
on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled
and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.

 

Section
7.5.     Purchase of Notes. The Company or an Affiliate may purchase or otherwise acquire, directly
or indirectly, any of the outstanding Notes pursuant to an offer to purchase made by the Company or an Affiliate to any of the
current holders of the Notes, which offer shall be on the terms set by the Company in its sole discretion and may be accepted
by any holder in its sole discretion. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any
purchase of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such
Notes.

 

    	5

    	 

    

 

Section
8.          Covenants.

 

The
Company covenants that so long as any of the Notes are outstanding:

 

Section
8.1.     Transactions with Affiliates. Other than transactions permitted under Section 8.2, the Company
will not enter into directly or indirectly any Material transaction or Material group of related transactions (including without
limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate,
except upon fair and reasonable terms no less favorable to the Company than would be obtainable in a comparable arm’s-length
transaction with a Person not an Affiliate as determined by the Company’s Board of Directors.

 

Section
8.2.     Dividends; Redemption or Repurchase of Capital Stock. The Company will not declare or pay
any cash dividend (other than dividends payable solely in common stock of the Person making such dividend) on, nor will the Company
make any cash payment for the repurchase or redemption of, any Capital Stock of the Company, whether now or hereafter outstanding,
other than in each case listed below:

 

(a)
payments used to redeem capital stock held by officers, directors or employees of the Company (or their transferees, estates or
beneficiaries under their estates); provided that the aggregate cash consideration paid for all such redemptions shall
not exceed $1.0 million in the aggregate; and provided further that no payments may be made under this clause (a)
to redeem capital stock held by Thomas F. Helms, Jr. (or his transferees, estates or beneficiaries under his estate);

 

(b)
repurchases of capital stock deemed to occur upon exercise of stock options if such capital stock represents a portion of the
exercise prices of such options;

 

(c)
cash payments in lieu of the issuance of fractional shares in connection with the exercise of warrants, options or other securities
convertible into or exchangeable for capital stock of the Company; provided that any such cash payment shall not be for
the purpose of evading the limitations of this Section 8.2 (as determined in good faith by the Board of the Directors of the Company);

 

(d)
payments made to David Brunson contemplated under the NATC Debt Documents; and

 

(e)
the making of other such payments in an amount not to exceed $1.0 million in any calendar year          .

 

    	6

    	 

    

 

Section
9.     Events of Default.

 

An
“Event of Default” shall exist if any of the following conditions or events shall occur and be
continuing:

 

(a)     
the Company defaults in the payment of any principal on any Note when the same becomes due and payable, whether at maturity or
at a date fixed for prepayment or by declaration or otherwise; or

 

(b)     
the Company defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and
payable; or

 

(c)     
the Company defaults in the material performance of or material compliance with any term contained herein (other than those referred
to in Sections 9(a) and (b)) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining
actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any
such written notice to be identified as a “notice of default” and to refer specifically to this Section 9(c)); or

 

(d)     
any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement
or in any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in
any material respect on the date as of which made, and such failure either (i) is not susceptible of cure or (ii) continues for
a period of 30 days after a Responsible Officer obtains actual knowledge of such failure; or

 

(e)     
(i) the Company is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or
make-whole amount or interest on any indebtedness for borrowed money that is outstanding in an aggregate principal amount of at
least $5,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company is in default in the performance
of or compliance with any term of any evidence of any indebtedness for borrowed money in an aggregate outstanding principal amount
of at least $5,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as
a consequence of such default or condition such indebtedness has become or has been declared due and payable before its stated
maturity or before its regularly scheduled dates of payment; or

 

(f)     
the Company (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files,
or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any
other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or
other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment
of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part
of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of
the foregoing; or

 

    	7

    	 

    

 

(g)
     a court or Governmental Authority of competent jurisdiction enters an order appointing, without
consent by the Company, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect
to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization
or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction,
or ordering the dissolution, winding-up or liquidation of the Company or any such petition shall be filed against the Company
and such petition shall not be dismissed within 60 days; or

 

(h)
     a final judgment or judgments for the payment of money aggregating in excess of $5,000,000 are rendered
against one or more of the Company and which judgments are not (i) paid or fully covered by insurance or (ii) within 60 days after
entry thereof, bonded, discharged, vacated, satisfied or stayed pending appeal, or are not discharged within 60 days after the
expiration of such stay.

 

Section
10.     Remedies on Default, Etc.

 

Section
10.1.      Acceleration. (a) If an Event of Default with respect to the Company described in Section
9(f) or (g) (other than an Event of Default described in clause (i) of Section 9(f) or described in clause (vi) of Section 9(f)
by virtue of the fact that such clause encompasses clause (i) of Section 9(f)) has occurred, all the Notes then outstanding shall
automatically become immediately due and payable.

 

(b)
        If any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their option, by
notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable.

 

Upon
any Notes becoming due and payable under this Section 10.1, whether automatically or by declaration, such Notes will forthwith
mature and the entire unpaid principal amount of such Notes, plus all accrued and unpaid interest thereon (including without limitation
interest accrued thereon at the Default Rate) shall all be immediately due and payable, in each and every case without presentment,
demand, protest or further notice, all of which are hereby waived.

 

Section
10.2.      Other Remedies. If any Default or Event of Default has occurred and is continuing, and
irrespective of whether any Notes have become or have been declared immediately due and payable under Section 10.1, the holder
of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in
equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note,
or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted
hereby or thereby or by law or otherwise.

 

Section
10.3.      Rescission. At any time after any Notes have been declared due and payable pursuant to
Section 10.1(b), the Required Holders, by written notice to the Company, may rescind and annul any such declaration and its consequences.
No rescission and annulment under this Section 10.3 will extend to or affect any subsequent Event of Default or Default or impair
any right consequent thereon.

 

    	8

    	 

    

 

Section
10.4.      No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no delay on
the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice
such holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement or by any Note upon any
holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available
at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under Section 13, the Company will
pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder
incurred in any enforcement or collection under this Section 10, including without limitation reasonable attorneys’ fees,
expenses and disbursements.

 

Section
11.      Registration; Exchange; Substitution of Notes.

 

Section
11.1.      Registration of Notes. The Company shall keep at its principal executive office a register
for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer
thereof and the name and address of each transferee of one or more Notes shall be registered in such register. Prior to due presentment
for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and
holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary.

 

Section
11.2.      Transfer and Exchange of Notes. Upon surrender of any Note to the Company at the address
and to the attention of the designated officer (all as specified in Section 16(ii)), for registration of transfer or exchange
(and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by
the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant
name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter,
the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested
by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered
Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of
Exhibit 1. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered
Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of
a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not
be transferred in denominations of less than $10,000, provided that if necessary to enable the registration of transfer
by a holder of its entire holding of Notes, one Note may be in a denomination of less than $10,000. Any transferee, by its acceptance
of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representations set forth in Section
6.

 

Section
11.3.      Replacement of Notes. Upon receipt by the Company at the address and to the attention
of the designated officer (all as specified in Section 16(ii)) of written evidence satisfactory to it of the ownership of and
the loss, theft, destruction or mutilation of any Note, and

 

(a)
        in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note that is a Qualified
Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or

 

    	9

    	 

    

  

(b)
        in the case of mutilation, upon surrender and cancellation thereof,

 

within
ten Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and
bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated
the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

 

Section
11.4      Legend. Each Note issued on the date of Closing and each Note delivered pursuant to this
Section 11 shall bear a legend substantially as follows (until such time as the Company shall determine that such legend or any
portion thereof is no longer necessary or advisable):

 

“THIS
NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY OTHER APPLICABLE SECURITIES LAW AND, ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER, THE SECURITIES
ACT AND IN ACCORDANCE WITH ANY SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

 

THIS
NOTE MAY BE TRANSFERRED ONLY PURSUANT TO SECTION 11 OF THE NOTE PURCHASE AGREEMENT. A COMPLETE AND CORRECT CONFORMED COPY OF THE
NOTE PURCHASE AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY AND WILL BE FURNISHED TO
THE REGISTERED HOLDER OF THIS NOTE UPON WRITTEN REQUEST AND WITHOUT CHARGE.”

 

Section
12.      Payments on Notes.

 

Section
12.1.      Place of Payment. Subject to Section 12.2, payments of principal and interest becoming
due and payable on the Notes shall be made by check to each Purchaser at its address appearing on the books and records of the
Company or, if requested in writing by a Purchaser to the Company, by wire transfer to an account specified by such Purchaser.
The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place
of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust
company in such jurisdiction.

 

    	10

    	 

    

 

Section
12.2.      Home Office Payment. So long as any Purchaser or its nominee shall be the holder of
any Note, and notwithstanding anything contained in Section 12.1 or in such Note to the contrary, the Company will pay all
sums becoming due on such Note for principal and interest by the method and at such address as such Purchaser shall have from
time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the
making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly
after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably
promptly after any such request, to the Company at its principal executive office or at the place of payment most recently
designated by the Company pursuant to Section 12.1. Prior to any sale or other disposition of any Note held by a Purchaser or
its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last
date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes
pursuant to Section 11.2. The Company will afford the benefits of this Section 12.2 to any investor that is the direct or
indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating
to such Note as the Purchasers have made in this Section 12.2.

 

Section
13.      Transaction Expenses; Survival.

 

The
Company will pay all reasonable costs and expenses (including reasonable attorneys’ fees of only one special counsel and,
if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a
Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this
Agreement or the Notes and the costs and expenses incurred in enforcing or defending any rights under this Agreement or the Notes
or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement
or the Notes, or by reason of being a holder of any Note. The obligations of the Company under this Section 13 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the
termination of this Agreement.

 

Section
14.      Survival of Representations and Warranties; Entire Agreement.

 

All
representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the
purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may
be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser
or any other holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of the
Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement. Subject
to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between each Purchaser and
the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

 

Section
15.      Amendment and Waiver.

 

Section
15.1.      Requirements. This Agreement and the Notes may be amended, and the observance of any
term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent
of the Company and the Required Holders, except that (a) no amendment or waiver of any of the provisions of Section 1, 2, 3,
4, 5, 6 or 18 hereof, or any defined term  (as it is used therein), will be effective as to any Purchaser unless
consented to by such Purchaser in writing, and (b) no such amendment or waiver may, without the written consent of the holder
of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 10 relating to acceleration
or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time
of payment or method of computation of interest on, the Notes, (ii) change the percentage of the principal amount of the
Notes the holders of which are required to consent to any such amendment or waiver, or (iii) amend any of Sections 7, 9(a),
9(b), 10, 15 or 17.

 

    	11

    	 

    

 

Section
15.2.      Solicitation of Holders of Notes. The Company will provide each holder of the Notes (irrespective
of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required,
to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in
respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each
amendment, waiver or consent effected pursuant to the provisions of this Section 15 to each holder of outstanding Notes promptly
following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of
Notes.

 

Section
15.3.      Binding Effect, Etc. Any amendment or waiver consented to as provided in this Section
15 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company
without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend
to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right
consequent thereon. No course of dealing between the Company and the holder of any Note nor any delay in exercising any rights
hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note. As used herein, the term “this
Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented.

 

Section
15.4.      Notes Held by Company, Etc. Solely for the purpose of determining whether the holders
of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment,
waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or
in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes
then outstanding, Notes directly or indirectly owned by the Company shall be deemed not to be outstanding.

 

Section
16.      Notices.

 

All
notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends
a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified
mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid).
Any such notice must be sent (i) if to any holder of any Note, to such holder at such address as such holder shall have specified
to the Company in writing, or (ii) if to the Company, to the Company at such address as the Company shall have specified to the
holder of each Note in writing. Notices under this Section 16 will be deemed given only when actually received.

 

    	12

    	 

    

  

Section
17.      Confidential Information.

 

For
the purposes of this Section 17 “Confidential Information” means information delivered to any Purchaser by
or on behalf of the Company in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is
proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser
as being confidential information of the Company, provided that such term does not include information that (a) was publicly
known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through
no act or omission by such Purchaser or any person acting on such Purchaser’s behalf or (c) otherwise becomes known to such
Purchaser other than through disclosure by the Company. Each Purchaser will maintain the confidentiality of such Confidential
Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third
parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i)
its directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates
to the administration of the investment represented by its Notes), (ii) its financial advisors and other professional advisors
who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 17, (iii)
any other holder of any Note, (iv) any investor to which it sells or offers to sell such Note or any part thereof or any participation
therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions
of this Section 17), (v) any federal or state regulatory authority having jurisdiction over such Purchaser, or (vi) any other
Person to which such delivery or disclosure is necessary (x) to effect compliance with any law, rule, regulation or order applicable
to such Purchaser or (y) in response to any subpoena or other court order. Each holder of a Note, by its acceptance of a Note,
will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 17 as though it were a party to
this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required
to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement
or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 17.

 

Section
18.    Miscellaneous.

 

Section
18.1.      Successors and Assigns. All covenants and other agreements contained in this Agreement
by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including
without limitation any subsequent holder of a Note) whether so expressed or not.

 

Section
18.2.      Payments Due on Non-Business Days. Anything in this Agreement or the Notes to the contrary
notwithstanding (but without limiting the requirement in Section 7.4 that the notice of any optional prepayment specify a Business
Day as the date fixed for such prepayment), any payment of principal of or interest on any Note that is due on a date other than
a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation
of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date
other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and
shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

 

    	13

    	 

    

  

Section
18.3.      Accounting Terms. All accounting terms used herein which are not expressly defined in
this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided
herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements
shall be prepared in accordance with GAAP.

 

Section
18.4.      Severability. Any provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating
the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted
by law) not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section
18.5.      Construction, Etc. Each covenant contained herein shall be construed (absent express provision
to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall
not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein
refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable
whether such action is taken directly or indirectly by such Person.

 

For
the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a part hereof.

 

Section
18.6.      Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies
hereof, each signed by less than all, but together signed by all, of the parties hereto.

 

Section
18.7.      Governing Law. This Agreement shall be construed and enforced in accordance with, and
the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law
of such State that would permit the application of the laws of a jurisdiction other than such State.

 

Section
18.8.      Jurisdiction and Process; Waiver of Jury Trial. (a) The Company irrevocably submits to
the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York,
over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted
by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim
that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of
the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum.

 

    	14

    	 

    

 

(b)
     The Company consents to process being served by or on behalf of any holder of Notes in any suit,
action or proceeding of the nature referred to in Section 18.8(a) by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section
17 or at such other address of which such holder shall then have been notified pursuant to said Section. The Company agrees that
such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or
proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon
and personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished
by the United States Postal Service or any reputable commercial delivery service.

 

(c)
     Nothing in this Section 18.8 shall affect the right of any holder of a Note to serve process in
any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the
Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction
in any other jurisdiction.

 

(d)
     The parties hereto hereby waive trial by jury in any action
brought on or with respect to this agreement, the Notes or any other document executed in connection herewith or therewith.

 

* *
* * *

 

    	15

    	 

    

 

If you are
in agreement with the foregoing, please sign the form of agreement on a counterpart of this Agreement and return it to the Company,
whereupon this Agreement shall become a binding agreement between you and the Company.

	 	 	 
	 	Very truly yours,
	 	 	 
	 	NORTH ATLANTIC HOLDING COMPANY, INC.
	 	 	 
	 	By	/s/ Brian Harris
	 	 	Name: Brian Harris
	 	 	Title:   Senior Vice President and Chief Financial
    Officer
	 	 	 

[SIGNATURE
PAGE TO NOTE PURCHASE AGREEMENT]

 

    	 

    	 

    

 

	 	 	 	 	 
	 	INDIVIDUAL PURCHASER:	 
	 	 	 	 
	 	Daniel G. Fitzgerald 

	 
	 	(Print Name)	 
	 	 	 	 
	 	/s/ Daniel H. Fitzgerald 

	 
	 	(Signature)	 
	 	 	 	 
	 	PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY,
    TRUST, CUSTODIAL ACCOUNT, OTHER PURCHASER:
	 	 	 	 
	 	 	 
	 	(Print Name of Purchaser)	 
	 	 	 	 
	 	By:	 	 	 
	 	(Signature)	 
	 	 	 	 
	 	 	 
	 	(Print Name and Title)	 
	 	 	 	 
	 	Address for Notices:	 
	 	 	 
	 	 	 
	 	/s/ Dan Fitzgerald 

	 
	 	961 North
    ST	 
	 	Greenwich
    CT 06831	 
	 	Attn:	 	 
	 	Fax:	 	 
	 	E-mail:	fitz@pinewoodcapital.com 

	 

 

PURCHASER
SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT

 

    	 

    	 

    

 

	 	 	 	 	 
	 	INDIVIDUAL PURCHASER:	 
	 	 	 	 
	 	 	 
	 	(Print Name)	 
	 	 	 	 
	 	 	 
	 	(Signature)	 
	 	 	 	 
	 	PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY,
    TRUST, CUSTODIAL ACCOUNT, OTHER PURCHASER:
	 	 	 	 
	 	Helms Management
    Corp.	 
	 	(Print Name of Purchaser)	 
	 	 	 	 
	 	By:	/s/ Thomas Helms 

	 
	 	(Signature)	 
	 	 	 	 
	 	Thomas F.
    Helms, Jr., President	 
	 	(Print Name and Title)	 
	 	 	 	 
	 	Address for Notices:	 
	 	75 Woods Lane	 
	 	East Hampton,
    NY 11937	 
	 	 	 
	 	Attn:	Thomas
    F. Helms, Jr.	 
	 	Fax:	N/A	 
	 	E-mail:	thelmsjr@natcinc.net	 

 

PURCHASER
SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT

 

    	 

    	 

    

 

	 	 	 	 	 
	 	INDIVIDUAL PURCHASER:	 
	 	 	 	 
	 	Peter A. Parent	 
	 	(Print Name)	 
	 	 	 	 
	 	/s/ Peter A. Parent 

	 
	 	(Signature)	 
	 	 	 	 
	 	PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY,
    TRUST, CUSTODIAL ACCOUNT, OTHER PURCHASER:
	 	 	 	 
	 	 	 
	 	(Print Name of Purchaser)	 
	 	 	 	 
	 	By:	 	 
	 	(Signature)	 
	 	 	 	 
	 	 	 
	 	(Print Name and Title)	 
	 	 	 	 
	 	Address for Notices:	 
	 	190 Clapboard
    Ridgo Road	 
	 	Greenwich,
    CT 06831	 
	 	 	 
	 	Attn:	Peter
    Parent	 
	 	Fax:	203 861 - 7112	 
	 	E-mail:	peter.parent@nomura.com	 

 

PURCHASER
SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT

 

    	 

    	 

    

 

	 	 	 	 	 
	 	INDIVIDUAL PURCHASER:	 
	 	 	 	 
	 	Michael Terry	 
	 	(Print Name)	 
	 	 	 	 
	 	/s/ Michael Terry

	 
	 	(Signature)	 
	 	 	 	 
	 	PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY,
    TRUST, CUSTODIAL ACCOUNT, OTHER PURCHASER:
	 	 	 	 
	 	 	 
	 	(Print Name of Purchaser)	 
	 	 	 	 
	 	By:	 	 
	 	(Signature)	 
	 	 	 	 
	 	 	 
	 	(Print Name and Title)	 
	 	 	 	 
	 	Address for Notices:	 
	 	 	 
	 	 	 
	 	 	 
	 	Attn:	 	 
	 	Fax:	 	 
	 	E-mail:	 	 

 

PURCHASER
SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT

 

    	 

    	 

    

 

	 	 	 	 	 
	 	INDIVIDUAL PURCHASER:	 
	 	 	 	 
	 	Lawrence Wexler	 
	 	(Print Name)	 
	 	 	 	 
	 	/s/ Lawrence Wexler	 
	 	(Signature)	 
	 	 	 	 
	 	PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY,
    TRUST, CUSTODIAL ACCOUNT, OTHER PURCHASER:
	 	 	 	 
	 	 	 
	 	(Print Name of Purchaser)	 
	 	 	 	 
	 	By:	 	 
	 	(Signature)	 
	 	 	 	 
	 	 	 
	 	(Print Name and Title)	 
	 	 	 	 
	 	Address for Notices:	 
	 	 	 
	 	 	 
	 	 	 
	 	Attn:	 	 
	 	Fax:	 	 
	 	E-mail:	 	 

 

PURCHASER
SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT

 

    	 

    	 

    

 

	 	 	 	 	 
	 	INDIVIDUAL PURCHASER:	 
	 	 	 	 
	 	Charles H.
    Melander	 
	 	(Print Name)	 
	 	 	 	 
	 	/s/ Charles H.
    Melander	 
	 	(Signature)	 
	 	 	 	 
	 	PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY,
    TRUST, CUSTODIAL ACCOUNT, OTHER PURCHASER:
	 	 	 	 
	 	 	 
	 	(Print Name of Purchaser)	 
	 	 	 	 
	 	By:	 	 
	 	(Signature)	 
	 	 	 	 
	 	 	 
	 	(Print Name and Title)	 
	 	 	 	 
	 	Address for Notices:	 
	 	3682 Briarcliff
    Trace	 
	 	Owensboro,
    KY 42303	 
	 	 	 
	 	Attn:	Charles
    Melander	 
	 	Fax:	 	 
	 	E-mail:	cmelander@nationaltobacco.com 

	 

 

PURCHASER
SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT

 

    	 

    	 

    

 

	 	 	 	 	 
	 	INDIVIDUAL PURCHASER:	 
	 	 	 	 
	 	Graham
    Purry	 
	 	(Print Name)	 
	 	 	 	 
	 	/s/ Graham
    Purry	 
	 	(Signature)	 
	 	 	 	 
	 	PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY,
    TRUST, CUSTODIAL ACCOUNT, OTHER PURCHASER:
	 	 	 	 
	 	 	 
	 	(Print Name of Purchaser)	 
	 	 	 	 
	 	By:	 	 
	 	(Signature)	 
	 	 	 	 
	 	 	 
	 	(Print Name and Title)	 
	 	 	 	 
	 	Address for Notices:	 
	 	 	 
	 	 	 
	 	 	 
	 	Attn:	 	 
	 	Fax:	 	 
	 	E-mail:	 	 

 

PURCHASER
SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT

 

    	 

    	 

    

 

	 	 	 	 	 
	 	INDIVIDUAL PURCHASER:	 
	 	 	 	 
	 	James
    Dobbins	 
	 	(Print Name)	 
	 	 	 	 
	 	/s/ James
    Dobbins	 
	 	(Signature)	 
	 	 	 	 
	 	PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY,
    TRUST, CUSTODIAL ACCOUNT, OTHER PURCHASER:
	 	 	 	 
	 	 	 
	 	(Print Name of Purchaser)	 
	 	 	 	 
	 	By:	 	 
	 	(Signature)	 
	 	 	 	 
	 	 	 
	 	(Print Name and Title)	 
	 	 	 	 
	 	Address for Notices:	 
	 	 	 
	 	 	 
	 	 	 
	 	Attn:	 	 
	 	Fax:	 	 
	 	E-mail:	 	 

 

PURCHASER
SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT

 

    	 

    	 

    

 

North
Atlantic Holding Company, Inc. 

5201 Interchange Way 

Louisville, KY 40229

 

Information Relating To Purchasers 

	 	 	 	 	 	 
	 	 	Principal Amount of
	Name of Purchaser	 	Notes to Be Purchased
	Peter A. Parent	 	 	$	3,589.00	 
	James Dobbins	 	 	$	5,000.00	 
	Charles Melander	 	 	$	10,000.00	 
	Michael Terry	 	 	$	10,000.00	 
	Graham Purdy	 	 	$	10,000.00	 
	Daniel H. Fitzgerald	 	 	$	16,000.00	 
	Lawrence Wexler	 	 	$	180,000.00	 
	Helms Management Corp.	 	 	$	2,277,000.00	 

 

Schedule
A

(to Note Purchase Agreement)

 

    	 

    	 

    

 

Defined
Terms

 

As used herein, the
following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

 

“Accredited
Investor” means any Person who is an “accredited investor” within the meaning of such term as set
forth in Rule 501(a) under the Securities Act.

 

“Affiliate”
means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with, such first Person. As used in this definition, “Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or otherwise. Unless the context otherwise clearly requires,
any reference to an “Affiliate” is a reference to an Affiliate of the Company.

 

“Business
Day” means (a) for the purposes of Section 6.6 only, any day other than a Saturday, a Sunday or a day on which
commercial banks in New York City are required or authorized to be closed, and (b) for the purposes of any other provision of this
Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized
to be closed.

 

“Closing”
is defined in Section 3.

 

“Company”
means North Atlantic Holding Company, Inc., a Delaware corporation or any successor that becomes such in the manner prescribed
in Section 8.2.

 

“Confidential
Information” is defined in Section 17.

 

“Default”
means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both,
become an Event of Default.

 

“Default
Rate” means that rate of interest that is 2.00% per annum above the rate of interest stated in clause (a) of the
first paragraph of the Notes.

 

“Event
of Default” is defined in Section 9.

 

“GAAP”
means generally accepted accounting principles as in effect from time to time in the United States of America.

 

“Governmental
Authority” means

 

(a)           the government
of

 

(i)          the United
States of America or any State or other political subdivision thereof, or

 

    	B-2

    	 

    

 

(ii)          any other
jurisdiction in which the Company conducts all or any part of its business, or which asserts jurisdiction over any properties of
the Company, or

 

(b)           any entity
exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

 

“holder”
means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company pursuant
to Section 11.1.

 

“Material”
means material in relation to the business, operations, affairs, financial condition, assets or properties of the Company.

 

“Material
Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition,
assets or properties of the Company, (b) the ability of the Company to perform its obligations under this Agreement and the Notes
or (c) the validity or enforceability of this Agreement or the Notes.

 

“Memorandum”
is defined in Section 5.3.

 

“NATC Debt Documents”
means the ABL Credit Agreement dated as of January 13, 2014, the First Lien Term Loan Credit Agreement dated as of January 13,
2014 and the Second Lien Term Loan Credit Agreement dated as of January 13, 2014, in each case, as may be amended, extended, restated,
amended and restated, supplemented, replaced or otherwise modified from time to time.

 

“Notes”
is defined in Section 1.

 

“Officer’s
Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose responsibilities
extend to the subject matter of such certificate.

 

“Person”
means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business
entity or Governmental Authority.

 

“property”
or “properties” means, unless otherwise specifically limited, real or personal property of any
kind, tangible or intangible, choate or inchoate.

 

“Purchaser”
is defined in the first paragraph of this Agreement.

 

“Qualified
Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning
of such term as set forth in Rule 144A(a)(1) under the Securities Act.

 

“Required
Holders” means, at any time, the holders of a majority of the principal amount of the Notes at the time outstanding
(exclusive of Notes then owned by the Company).

 

“Responsible
Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration
of the relevant portion of this Agreement.

 

    	B-3

    	 

    

 

“SEC”
shall mean the Securities and Exchange Commission of the United States, or any successor thereto.

 

“Securities”
or “Security” shall have the meaning specified in Section 2(1) of the Securities Act.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated
thereunder from time to time in effect.

 

“Senior
Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of
the Company.

 

    	B-4

    	 

    

 

[Form of Note]

 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER APPLICABLE SECURITIES LAW AND,
ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER, OR IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER, THE SECURITIES ACT AND IN ACCORDANCE WITH ANY SECURITIES LAWS OF THE
STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. 

 

THIS NOTE MAY BE TRANSFERRED ONLY PURSUANT TO SECTION 11
OF THE NOTE PURCHASE AGREEMENT REFERRED TO BELOW. A COMPLETE AND CORRECT CONFORMED COPY OF THE NOTE PURCHASE AGREEMENT IS AVAILABLE
FOR INSPECTION AT THE PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY AND WILL BE FURNISHED TO THE REGISTERED HOLDER OF THIS NOTE UPON
WRITTEN REQUEST AND WITHOUT CHARGE. 

 

THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”)
FOR UNITED STATES FEDERAL INCOME TAX PURPOSES. THE ISSUE PRICE, AMOUNT OF OID, ISSUE DATE AND YIELD TO MATURITY OF THIS NOTE MAY
BE OBTAINED BY WRITING TO THE COMPANY (AS DEFINED BELOW) AT 5201 INTERCHANGE WAY LOUISVILLE, KY 40229.

 

North
Atlantic Holding Company, Inc.

 

7%Senior
Note Due December 31, 2023

 

 

	No. [_____]	[Date]
	$[_______]	PPN[______________]

                                                                                                                                                                                                               

 

                                                                                                                                                                                        

 

For
Value Received, the undersigned, NORTH ATLANTIC HOLDING COMPANY, INC. (herein called the “Company”),
a corporation organized and existing under the laws of the State of Delaware, hereby promises to pay to [____________], or registered
assigns, the principal sum of [_____________________] Dollars (or so much thereof
as shall not have been prepaid) on December 31, 2023, with interest (computed on the basis of a 360-day year of twelve 30-day
months) (a) on the unpaid balance hereof at the rate of 7% per annum from the date hereof, payable semiannually in cash, on the
last business day of June and December in each year, commencing with June 30, 2014, until the principal hereof shall have become
due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal
or any overdue payment of interest, payable semi-annually as aforesaid, at a rate per annum from time to time equal to the rate
provided in clause (a) above plus 2.00%; provided, in each case, that the Company may upon at least three business
days notice elect to pay on such interest payment date interest in kind through an increase in the principal amount of the Notes
(the “Additional PIK Principal”), which increase shall be evidenced by an amended and restated Note to the
extent requested by the applicable holder (but the holder shall not request an amended and restated Note any more frequently than
annually). The Additional PIK Principal shall bear interest at the same rate as the Notes and the Company shall pay the principal
amount of the Notes (including the Additional PIK Principal) when the Note comes due. Payments of principal of and interest on
this Note are to be made in lawful money of the United States of America at such place as provided in Section 12 of the Note Purchase
Agreement referred to below.

 

    	 

    	 

    

 

This Note is one of
a series of Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement,
dated as of January 21, 2014 (as from time to time amended, the “Note Purchase Agreement”), between the
Company and the respective Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be deemed,
by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 17 of the Note Purchase Agreement
and (ii) made the representations set forth in Section 6 of the Note Purchase Agreement. Unless otherwise indicated, capitalized
terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

 

This Note is a registered
Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, accompanied by
a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due
presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof
for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

 

This Note is subject
to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement,
but not otherwise.

 

If an Event of Default
occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the
price and with the effect provided in the Note Purchase Agreement.

 

This Note shall be
construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by, the
law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of
the laws of a jurisdiction other than such State. 

	 	 	 
	 	North Atlantic Holding Company, Inc.
	 	 
	 	By	 
	 	 	Authorized Officer

 

    	B-2

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