Document:

exv10w7

Exhibit 10.7

SIXTH AMENDMENT TO CREDIT AGREEMENT AND AMENDMENT TO PLEDGE

AGREEMENT (GUARANTORS)

     THIS SIXTH AMENDMENT TO CREDIT AGREEMENT AND AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS) (the
“Amendment”), dated as of November 24, 2010, is made by and among ARCH COAL, INC., a Delaware
corporation (the “Borrower”), the GUARANTORS (as defined in the Credit Agreement), the BANKS party
to the Credit Agreement (as hereinafter defined), CITICORP USA, INC., JPMORGAN CHASE BANK, N.A. and
WACHOVIA BANK, NATIONAL ASSOCIATION, each in its capacity as co-syndication agent, and BANK OF
AMERICA, N.A. (successor by merger to FLEET NATIONAL BANK), as documentation agent, and PNC BANK,
NATIONAL ASSOCIATION, in its capacity as administrative agent for the Banks.

     WHEREAS, the parties hereto are parties to that certain Credit Agreement dated as of December
22, 2004, as amended by that certain First Amendment to Credit Agreement dated as of June 23, 2006,
as amended by that certain Second Amendment to Credit Agreement dated as of October 3, 2006, as
amended by that certain Third Amendment to Credit Agreement dated as of March 6, 2009, as amended
by that certain Fourth Amendment to Credit Agreement and Amendment to Collateral Agency and Sharing
Agreement dated as of August 27, 2009, and as amended by that certain Fifth Amendment to Credit
Agreement dated as of March 19, 2010 (as so amended, the “Credit Agreement”), pursuant to which the
Banks provided a $800,000,000 revolving credit facility to the Borrower; and

     WHEREAS, the Borrower, the Banks and the Administrative Agent desire to amend the Credit
Agreement and the Pledge Agreement (Guarantors) as hereinafter provided.

     NOW, THEREFORE, the parties hereto, in consideration of their mutual covenants and agreements
hereinafter set forth and intending to be legally bound hereby, covenant and agree as follows:

     1. Definitions.

     Capitalized terms used herein unless otherwise defined herein shall have the meanings ascribed
to them in the Credit Agreement, as amended by this Amendment.

     2. Amendments to Credit Agreement.

     (a) Section 1.1 [Certain Definitions] of the Credit Agreement is hereby amended to insert
therein the following new definition:

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

     “Sixth Amendment Effective Date shall mean the effective date of the
Sixth Amendment to the Credit Agreement.”

 

 

     (b) The following definition contained in Section 1.1 [Certain Definitions] of the Credit
Agreement is hereby amended and restated in its entirety as follows:

     “Significant Subsidiary shall mean individually any Subsidiary of Borrower
other than the Excluded Subsidiaries, the Foreign Subsidiaries, each Bonding Subsidiary,
each Securitization Subsidiary and the Inactive Subsidiaries, and Significant
Subsidiaries shall mean collectively all Subsidiaries of Borrower other than the
Excluded Subsidiaries, the Foreign Subsidiaries, each Bonding Subsidiary, each
Securitization Subsidiary and the Inactive Subsidiaries.”

     (c) The first paragraph of Section 7.1.12 [Collateral; Further Assurances] of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

          “The Borrower shall and shall cause each of the Loan Parties to execute and deliver (subject
to Section 10.19 [Release of Collateral; Springing Collateral]) to the Collateral Agent for the
benefit of the Banks, the Collateral Documents necessary to grant first priority perfected liens
and security interests (subject only to Permitted Liens) in favor of the Banks in substantially all
of the assets of the Loan Parties, other than: (i) those assets which, in the discretion of the
Administrative Agent, the taking of Liens thereupon is impractical, prohibited by law or
commercially unreasonable, (ii) the equity interests in any Bonding Subsidiary (subject however to
the further provisions of this Section regarding a second position lien thereon), (iii) titled
vehicles, and (iv) all undeveloped land so long as such land is not used in connection with or
related to any Mining Operation of any Loan Party and no Loan Party has any logging or timber
rights with respect to such land; and provided, further, that with respect to deposit accounts of
any Loan Party, the Loan Parties will not be required to enter into any blocked account agreements
or control agreements with respect thereto unless requested by the Administrative Agent or the
Required Banks. Notwithstanding the foregoing, (i) the Borrower and each of the Loan Parties shall
only be required to pledge 65% of the capital stock or other equity interests of their Foreign
Subsidiaries and such requirement to pledge such capital stock and/or equity interests shall only
apply to such Foreign Subsidiaries that are wholly-owned directly by the Borrower or any Loan Party
and (ii) the Loan Parties shall work diligently with the Administrative Agent to confirm that all
documentation has been prepared, executed and recorded which is necessary to grant a Lien on all
Real Property, as-extracted minerals and fixtures of the Loan Parties (other than such assets as
described in clauses (i) or (iv) above) in favor of the Collateral Agent for the benefit of the
Banks within: (a) one hundred twenty (120) days for all such acquired Real Property, as-extracted
minerals and fixtures that have been acquired on or before the Third Amendment Effective Date, and
(b) ninety (90) days after the delivery of the certificate of Borrower pursuant to Section 7.3.3
[Certificate of Borrower] of this Agreement for all such Real Property, as-extracted minerals and
fixtures that have been acquired after the Third Amendment Effective Date.”

 

 

     (d) Section 10.19.2 [Springing Collateral] of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

          “10.19.2 Springing Collateral.

     In the event that following a Collateral Release Event the Corporate Credit
Rating is lowered to a rating of less than Ba1 from Moody’s or a rating of
less than BB+ from Standard & Poor’s (a “Negative Rating Change”), then, within
ninety (90) days following the date of the Negative Rating Change (or such longer
period that is reasonably acceptable to the Administrative Agent) the Loan Parties
shall be required to deliver Collateral Documents to the Collateral Agent for the
benefit of the Banks necessary to grant first priority perfected liens and security
interests (subject only to Permitted Liens) in favor of the Banks in substantially
all of the assets of the Loan Parties, other than: (i) those assets which, in the
discretion of the Administrative Agent, the taking of Liens thereupon is
impractical, prohibited by law or commercially unreasonable, (ii) the equity
interests in any Bonding Subsidiary (but only if such equity interests, prior to the
Collateral Release Event were not previously required to be pledged under Section
7.1.12), (iii) vehicles, (iv) the Marion 8200 dragline (serial number 23321), (v)
the capital stock or equity interest in the Loan Parties’ Foreign Subsidiaries in
excess of the amounts required to be pledged pursuant to Section 7.1.12 [Collateral;
Further Assurances] of this Agreement, and (vi) all undeveloped land so long as such
land is not used in connection with or related to any Mining Operation of any Loan
Party and no Loan Party has any logging or timber rights with respect to such land.”

     3. Amendment to the Pledge Agreement (Guarantors).

     (a) The following definition contained in Section 1 [Defined Terms] of the Pledge Agreement
(Guarantors) is hereby amended and restated in its entirety as follows:

     “Pledged Collateral” shall mean and include all of each Pledgor’s present and future
right, title and interest in and to the following: (i) all investment property, capital
stock, shares, securities, member interests, partnership interests, warrants, options, put
rights, call rights, similar rights, and all other ownership or participation interests in
any entity or business or in the revenue, income, or profits thereof (ii) all property of
each Pledgor in the Collateral Agent’s possession or in transit to or from, under the
custody or control of, or on deposit with, the Collateral Agent or any Affiliate thereof,
including deposit and other accounts, (iii) cash and cash equivalents (collectively referred
to herein as “Investments”), including all Investments listed on Schedule A attached
hereto and made a part hereof, and all rights and privileges pertaining thereto, including,
without limitation, all present and future Investments receivable in respect of or in
exchange for any Investments, and all rights under shareholder, member, partnership
agreements and other similar agreements relating to any Investments, all rights to subscribe
for Investments, whether or not incidental to or arising from ownership of any Investments,
(iv) all Investments hereafter pledged by any Pledgor to Collateral Agent to secure the
Secured Obligations, (v) together with all cash, interest, stock and other dividends or

 

 

distributions paid or payable on any of the foregoing, and all books and records
(whether paper, electronic or any other medium) pertaining to the foregoing, including,
without limitation, all stock record and transfer books, and together with whatever is
received when any of the foregoing is sold, exchanged, replaced or otherwise disposed of,
including all proceeds, as such term is defined in the Code, and all other investment
property and similar assets of any Pledgor; and (vi) all cash and non-cash proceeds
(including, without limitation, insurance proceeds) of any of the foregoing property, all
products thereof, and all additions and accessions thereto, substitutions therefor and
replacements thereof. Notwithstanding anything to the contrary contained in this Agreement,
the Pledged Collateral with respect to any one Foreign Subsidiary shall not exceed
sixty-five percent (65%) of the total combined voting power of all classes of capital stock
and other equity interests entitled to vote of such Foreign Subsidiary and this Agreement
shall not apply to any such capital stock, or other equity interests which are in excess of
such sixty five percent (65%) limitation. To the extent the Collateral Agent receives more
than sixty five percent (65%) of the total combined voting power of all classes of capital
stock and other equity interests entitled to vote of any Foreign Subsidiary, the Collateral
Agent shall return such excess capital stock and other equity interests upon the request of
a Pledgor.”

     (b) Subsection (b) of Section 4 [Representations and Warranties] of the Pledge Agreement
(Guarantors) is hereby amended and restated in its entirety to read as follows:

     ”(b) The capital stock shares, securities, member interests, partnership interests and
other ownership interests constituting the Pledged Collateral have been duly authorized and
validly issued to such Pledgor (as set forth on Schedule A hereto), are fully paid
and nonassessable and constitute one hundred percent (100%) of the issued and outstanding
capital stock, member interest, partnership interests of such Pledgor in each of the
Companies that are not Foreign Subsidiaries, and (ii) sixty five percent (65%) of the issued
and outstanding capital stock or other equity interests of each of the Foreign Subsidiaries
that are wholly owned directly by the Borrower or any Loan Party;”

     4. Conditions of Effectiveness of Amendments and Consent.

     The effectiveness of this Amendment is expressly conditioned upon satisfaction of each of the
following conditions precedent:

     (a) Execution and Delivery of Amendment. The Borrower, the other Loan Parties, the
Required Banks, and the Administrative Agent shall have executed and delivered this Amendment to
the Administrative Agent, and all other documentation necessary for effectiveness of this Amendment
shall have been executed and delivered all to the satisfaction of the Administrative Agent.

     (b) Material Adverse Change. Each of the Loan Parties represents and warrants to the
Administrative Agent and the Lenders that, by its execution and delivery hereof to the
Administrative Agent, after giving effect to this Amendment, no Material Adverse Change shall

 

 

have occurred with respect to the Borrower or any of the Loan Parties since the Closing Date
of the Credit Agreement.

     (c) Litigation. Each of the Loan Parties represents and warrants to the
Administrative Agent and the Lenders that, by its execution and delivery hereof to the
Administrative Agent, after giving effect to this Amendment, there are no actions, suits,
investigations, litigation or governmental proceedings pending or, to the Loans Parties’ knowledge,
threatened against any of the Loan Parties that could reasonably be expected to result in a
Material Adverse Change.

     (d) Representations and Warranties; No Event of Default. The representations and
warranties set forth in the Credit Agreement and this Amendment shall be true and correct on and as
of the date hereof with the same effect as though such representations and warranties had been made
on and as of such date (except representations and warranties which relate solely to an earlier
date or time, which representations and warranties shall be true and correct on and as of the
specific dates or times referred to therein), and no Potential Default or Event of Default shall
exist and be continuing under the Credit Agreement or any other Loan Document, as of the date
hereof.

     (e) No Actions or Proceedings.

     No action, proceeding, investigation, regulation or legislation shall have been instituted,
threatened or proposed before any court, governmental agency or legislative body to enjoin,
restrain or prohibit, or to obtain damages in respect of, this Amendment, the other Loan Documents
or the consummation of the transactions contemplated hereby or thereby or which, in the
Administrative Agent’s sole discretion, would make it inadvisable to consummate the transactions
contemplated by this Amendment or any of the other Loan Documents.

     (f) Payment of Fees.

     The Borrower shall pay or cause to be paid to the Administrative Agent for itself and for the
account of the Banks all fees, costs and expenses payable to the Administrative Agent or any Bank
or for which the Administrative Agent or any Bank is entitled to be reimbursed, including but not
limited to the fees and expenses of the Administrative Agent’s legal counsel.

     (g) Consents.

     All material consents required to effectuate the transactions contemplated by this Amendment
and the other Loan Documents and shall have been obtained.

     (h) Confirmation of Guaranty.

     Each of the Guarantors confirms that they have read and understand the Amendment. In order to
induce the Banks, the Administrative Agent and the other Agents to enter into the Amendment, each
of the Guarantors: (i) consents to the Amendment and the transactions contemplated thereby; (ii)
ratifies and confirms each of the Loan Documents to which it is a party; (iii) ratifies, agrees and
confirms that it has been a Guarantor and a Loan Party at all times since it became a Guarantor and
a Loan Party and from and after the date hereof, each Guarantor shall continue to be a Guarantor
and a Loan Party in accordance with the terms of the Loan

 

 

Documents, as the same may be amended in connection with the Amendment and the transactions
contemplated thereby; and (iv) hereby ratifies and confirms its obligations under each of the Loan
Documents (including all exhibits and schedules thereto), as the same may be amended in connection
with the Amendment and the transactions contemplated thereby, by signing below as indicated and
hereby acknowledges and agrees that nothing contained in any of such Loan Documents is intended to
create, nor shall it constitute an interruption, suspension of continuity, satisfaction, discharge
of prior duties, novation or termination of the indebtedness, loans, liabilities, expenses,
guaranty or obligations of any of the Loan Parties under the Credit Agreement, the Collateral
Agency and Sharing Agreement or any other such Loan Document.

     (i) Legal Details.

     All legal details and proceedings in connection with the transactions contemplated by this
Amendment and the other Loan Documents shall be in form and substance satisfactory to the
Administrative Agent and counsel for the Administrative Agent, and the Administrative Agent shall
have received all such other counterpart originals or certified or other copies of such documents
and proceedings in connection with such transactions, in form and substance satisfactory to the
Administrative Agent and its counsel, as the Administrative Agent or its counsel may reasonably
request.

     5. Force and Effect.

     Except as otherwise expressly modified by this Amendment, the Credit Agreement, the Collateral
Agency and Sharing Agreement and the other Loan Documents are hereby ratified and confirmed and
shall remain in full force and effect after the date hereof.

     6. Governing Law.

     This Amendment shall be deemed to be a contract under the Laws of the Commonwealth of
Pennsylvania and for all purposes shall be governed by and construed and enforced in accordance
with the internal laws of the Commonwealth of Pennsylvania without regard to its conflict of laws
principles.

     7. Effective Date.

     This Amendment shall be dated as of and shall be binding, effective and enforceable upon the
date of satisfaction of all conditions set forth in Section 4 hereof, and from and after such date
this Amendment shall be binding upon the Borrower, each Bank and the Agents, and their respective
successors and assigns permitted by the Credit Agreement.

     8. No Novation.

     This Amendment amends the Credit Agreement and the Collateral Agency and Sharing Agreement,
but is not intended to constitute, and does not constitute, a novation of the Obligations of the
Loan Parties under the Credit Agreement, Collateral Agency and Sharing Agreement or any other Loan
Document.

[Signature Page Follows]

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

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

	 	 	 	 	 
	 	ARCH COAL, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Treasurer 	 
	 
	 	ALLEGHENY LAND COMPANY

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	ARCH COAL SALES COMPANY, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	ARCH COAL TERMINAL, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	ARCH ENERGY RESOURCES, LLC

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	ARCH RECLAMATION SERVICES, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	ARK LAND COMPANY

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	ARK LAND KH, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	ARK LAND WR, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	ASHLAND TERMINAL, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	CATENARY COAL HOLDINGS, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	COAL-MAC, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	CUMBERLAND RIVER COAL COMPANY

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	LONE MOUNTAIN PROCESSING, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	MINGO LOGAN COAL COMPANY

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	MOUNTAIN GEM LAND, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	MOUNTAIN MINING, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	MOUNTAINEER LAND COMPANY

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	PRAIRIE HOLDINGS, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 
	 	WESTERN ENERGY RESOURCES, INC.

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name: James E. Florczak 	 
	 	Title: Vice President and Treasurer 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	BANK LEUMI USA

 	 
	 	By:  	/s/ Joung Hoo Hong
 	 
	 	Name: Joun Hoo Hong 	 
	 	Title: First Vice President 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

(as successor by merger to Fleet National Bank

and LaSalle Bank National Association),

individually and as Documentation Agent

 	 
	 	By:  	/s/ Adam H. Fey
 	 
	 	Name: Adam H. Fey 	 
	 	Title: Vice President 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	BANK OF MONTREAL

 	 
	 	By:  	/s/ Joseph W. Linder
 	 
	 	Name: Joseph W. Linder 	 
	 	Title: Vice President 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	CREDIT AGRICOLE CORPORATE AND

INVESTMENT BANK

 	 
	 	By:  	/s/ Joseph Philbin
 	 
	 	Name: Joseph Philbin 	 
	 	Title: Director 	 
	 
	 	 	 
	 	By:  	 /s/ Blake Wright
 	 
	 	Name: Blake Wright 	 
	 	Title: Managing Director 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	CITICORP USA, INC., individually and as

Syndication Agent

 	 
	 	By:  	/s/ Thomas W. Ng
 	 
	 	Name: Thomas W. Ng 	 
	 	Title: Vice President 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	COMMERCE BANK, N.A.

 	 
	 	By:  	/s/ Douglas P. Best
 	 
	 	Name: Douglas P. Best 	 
	 	Title: Vice President 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 	 	 

	 	 	JPMORGAN CHASE BANK, N.A., 

individually and as Syndication Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 	 	 

	 	 	MIZUHO CORPORATE BANK, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	MORGAN STANLEY BANK

 	 
	 	By:  	/s/ Scott Taylor
 	 
	 	Name: Scott Taylor 	 
	 	Title: Authorized Signatory 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 	 	 

	 	 	NATIXIS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, individually, as
Administrative Agent and as Collateral Agent

 	 
	 	By:  	/s/ Richard C. Munsick
 	 
	 	Name: Richard C. Munsick 	 
	 	Title: Senior Vice President 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	REGIONS BANK

 	 
	 	By:  	/s/ John Holland
 	 
	 	Name: John Holland 	 
	 	Title: Senior Vice President 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	SOVEREIGN BANK

 	 
	 	By:  	/s/ Robert D. Lanigan
 	 
	 	Name: Robert D. Lanigan 	 
	 	Title: SVP 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	M&I Marshall & Ilsley Bank, f/n/a

SOUTHWEST BANK, AN M&I BANK

 	 
	 	By:  	/s/ Roy C. Postel
 	 
	 	Name: Roy C. Postel 	 
	 	Title: Senior Vice President 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 	 	 

	 	 	THE BANK OF NEW YORK MELLON	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC

 	 
	 	By:  	/s/ Steve Ray
 	 
	 	Name: Steve Ray 	 
	 	Title: Director 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

 AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 	 	 

	 	 	UBS LOAN FINANCE LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 	 	 

	 	 	UMB BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	UNION BANK, N.A. (formerly known as 

Union Bank of California, N.A.)

 	 
	 	By:  	/s/ Hideyuki Okamoto
 	 
	 	Name: /s/ Hideyuki Okamoto 	 
	 	Title: Vice President 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND

AMENDMENT TO PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	US BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ John M. Eyerman
 	 
	 	Name: John M. Eyerman 	 
	 	Title: A.V.P. 	 
	 

 

 

[SIGNATURE PAGE TO SIXTH AMENDMENT TO CREDIT AGREEMENT AND
AMENDMENT TO
 PLEDGE AGREEMENT (GUARANTORS)]

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A., successor-in-interest by merger
to WACHOVIA BANK, NATIONAL ASSOCIATION, individually and
as Syndication Agent

 	 
	 	By:  	/s/ Jonathan R. Richardson
 	 
	 	Name: Jonathan R. Richardson 	 
	 	Title: Senior Vice Presidentexv10w40

Exhibit 10.40

INDEMNITY AGREEMENT

     INDEMNITY AGREEMENT, dated as of _____, _____, by and among Arch Coal, Inc., a Delaware corporation
(the “Company” or the “Indemnitor”), and ________________ (the “Indemnitee”).

RECITALS

     The Indemnitee is a director and/or officer of the Company and/or an Affiliate Indemnitee (as
hereinafter defined). Indemnitor and the Indemnitee recognize the increased risk of litigation and
other claims being asserted against directors and officers in today’s environment.

     The Bylaws of the Company require the Company to indemnify its directors and officers as
currently provided therein, and the Indemnitee is willing to serve as a director and/or officer of
the Company in part in reliance on such provisions. The Bylaws of the Indemnitor permit Indemnitor
to purchase and maintain insurance or to furnish similar protection or make other arrangements (any
such insurance, protection or arrangement, an “Indemnification Agreement”) on behalf of the
Indemnitee against personal liability (including, but not limited to, providing for Advanced
Amounts as hereinafter defined) asserted against the Indemnitee or incurred by or on behalf of the
Indemnitee in such capacity as a director or officer of such Indemnitor or as an Affiliate
Indemnitee, or arising out of the Indemnitee’s status as such, whether or not Indemnitor would have
the power to indemnify the Indemnitee against such liability under the provisions of this Agreement
or under the Delaware General Corporation Law (the “DGCL”), as it may then be in effect.

     In part to provide the Indemnitee with specific contractual assurance of substantial
protection against personal liability (regardless of, among other things, any amendment to or
revocation of the aforementioned provisions of any of the Indemnitor’s Bylaws or any change in the
composition of the Indemnitor’s Board of Director or control of such Indemnitor), the Indemnitor
desires to enter into this Agreement. DGCL Section 145(f) expressly recognizes that the
indemnification provisions of the DGCL are not exclusive of any other rights to which a person
seeking indemnification may be entitled under the Certificate of Incorporation or Bylaws of the
Indemnitor, or an agreement providing for indemnification, or a resolution of stockholders or
directors, or otherwise, and the Bylaws of the Indemnitor expressly recognize that the
indemnification provisions of such Bylaws shall not be deemed exclusive of, and shall not affect,
any other rights to which a person seeking indemnification may be entitled under any agreement, and
this Agreement is being entered into pursuant to the Bylaws of the Indemnitor, as permitted by the
DGCL.

     In order to induce the Indemnitee to serve as a director and/or officer of the Company and in
consideration of the Indemnitee’s so serving, the Indemnitor desires to hold harmless and indemnify
the Indemnitee and to make arrangements pursuant to which the Indemnitee may be advanced or
reimbursed expenses incurred by the Indemnitee in certain proceedings, in every case to the fullest
extent authorized or permitted by the DGCL, or any other applicable law, or by any amendment
thereof or other statutory provisions authorizing or permitting such indemnification which are
adopted after the date hereof (but, in the case of any such amendment,

 

 

only to the extent that such amendment permits the Indemnitor to provide broader indemnification
rights than the DGCL, or other applicable law, permitted Indemnitor to provide prior to such
amendment).

     NOW, THEREFORE, in consideration of the foregoing recitals and of the Indemnitee’s continuing
to serve the Company as a director and/or officer, the parties hereby agree as follows:

     1. Indemnification. To the fullest extent allowed by law, the Indemnitor shall hold
harmless and indemnify the Indemnitee, the Indemnitee’s executors, administrators or assigns
against any and all expenses, liabilities and losses (including, without limitation, investigation
expenses, expert witnesses’ and attorneys’ fees and expenses, judgments, penalties, fines, amounts
paid or to be paid in settlement, any interest, assessments, or other charges imposed thereon and
any federal, state, local or foreign taxes imposed as a result of actual or deemed receipt of any
payment hereunder) actually incurred by the Indemnitee (net of any related insurance proceeds or
other amounts received by the Indemnitee or paid by or on behalf of Indemnitor on the Indemnitee’s
behalf in compensation of such expenses, liabilities or losses) in connection with any actual or
threatened action, suit or proceeding, whether civil, criminal, administrative or investigative or
in arbitration, to which the Indemnitee is a party or participant or is threatened to be made a
party or participant (“Proceeding”), as a plaintiff, defendant, respondent, witness or otherwise,
based upon, arising from, relating to or by reason of the fact that the Indemnitee: (a) is, was,
shall be or shall have been a director and/or officer of the Company, or (b) is or was serving,
shall serve, or shall have served at the request of the Company as a director, officer, partner,
trustee, fiduciary, employee or agent (“Affiliate Indemnitee”) of another foreign or domestic
corporation or non-profit corporation, cooperative, partnership, joint venture, trust, employee
benefit plan, or other incorporated or unincorporated enterprise; or in any way arising from,
relating to or connected with any action or omission to act taken by the Indemnitee in any of the
foregoing capacities; provided, however, that, except as provided in Section 9(b) hereof,
Indemnitor shall indemnify the Indemnitee in connection with a Proceeding initiated by the
Indemnitee only if such Proceeding (or part thereof) was authorized by a two-thirds vote of the
Board of Directors of Indemnitor.

     The Indemnitee shall be presumed to be entitled to such indemnification under this Agreement
upon submission of a written claim pursuant to Section 4 hereof. Thereafter, the Indemnitor shall
have the burden of proof to overcome the presumption that the Indemnitee is so entitled. Such
presumption shall only be overcome by a judgment or other final adjudication, after all appeals and
all time for appeals has expired (“Final Determination”), which is adverse to the Indemnitee and
which establishes (i) that the Indemnitee’s acts were committed in bad faith, or were the result of
active and deliberate dishonesty, and were material to the cause of action so adjudicated and (ii)
that the Indemnitee in fact personally gained a financial profit or other advantage to which he was
not legally entitled. With respect to any claim, issue or matter in a Final Determination for
which such presumption is not overcome, the Indemnitor agrees to indemnify the Indemnitee to the
maximum extent permitted by law against all losses and expenses incurred by the Indemnitee in
connection with such resolved claim, issue or matter. Neither the failure of the Indemnitor
(including its Board of Directors, legal counsel or stockholders) to have made a determination
prior to the commencement of such Proceeding that indemnification of the Indemnitee is proper in
the circumstances because such person has met the applicable standard of conduct set forth in the
DGCL, nor an actual determination by

 

 

Indemnitor (including its Board of Directors, its legal counsel or its stockholders) that the
Indemnitee has not met the applicable standard of conduct, shall be a defense to any action or
create a presumption that the Indemnitee has not met the applicable standard of conduct. The
purchase, establishment or maintenance of any Indemnification Arrangement shall not in any way
diminish, restrict, limit or adversely affect the rights and obligations of the Indemnitor or of
the Indemnitee under this Agreement, except as expressly provided herein, and the execution and
delivery of this Agreement, by the Indemnitor and the Indemnitee shall not in any way diminish,
restrict, limit or adversely affect the Indemnitee’s right to indemnification from the Indemnitor
or any other party or parties under any other Indemnification Arrangement, the Certificate of
Incorporation or Bylaws of the Indemnitor, or the DGCL.

     2. Period of Limitations. No legal action shall be brought and no cause of action
shall be asserted by or on behalf of Indemnitor or any affiliate of Indemnitor against the
Indemnitee, Indemnitee’s spouse, heirs, executors, or personal or legal representatives after the
expiration of two years from the date of accrual of such cause of action, or such longer period as
may be required by applicable law under the circumstances. Any claims or cause of action of the
Indemnitor or its affiliate shall be extinguished and deemed released unless asserted by the timely
filing of a legal action within such period; provided, however, that if any shorter period of
limitations is otherwise applicable to any such cause of action the shorter period shall govern.

     3. Insurance. Subject only to the provisions of this Section 3, as long as the
Indemnitee shall continue to serve as a director and/or officer of Indemnitor (or shall continue at
the request of Indemnitor to serve as an Affiliate Indemnitee) and, thereafter, as long as the
Indemnitee shall be subject to any possible Proceeding by reason of the fact that the Indemnitee
was a director and/or officer of the Company (or served in any of said other capacities), the
Indemnitor shall, unless no such policies are available in any market, purchase and maintain in
effect for the benefit of the Indemnitee, one or more valid, binding and enforceable policies (the
“Insurance Policies”) of directors’ and officers’ liability insurance (“D&O Insurance”) providing
adequate liability coverage for the Indemnitee’s acts as a director and/or officer of the
Indemnitor or as an Affiliate Indemnitee. Indemnitor shall promptly notify the Indemnitee of any
lapse, amendment or failure to renew said policy or policies or any provision thereof relating to
the extent or nature of coverage provided thereunder. In the event the Indemnitor does not
purchase and maintain in effect said policy or policies of D&O Insurance pursuant to the provisions
of this Section 3, Indemnitor shall, in addition to and not in limitation of the other rights
granted the Indemnitee under this Agreement, hold harmless and indemnify the Indemnitee to the full
extent of coverage which would otherwise have been provided for the benefit of the Indemnitee
pursuant to the Insurance Policies.

     4. Claims for Payment. The Indemnitee shall have the right to receive from the
Indemnitor on demand or, at the Indemnitee’s option, to have the Indemnitor pay promptly on the
Indemnitee’s behalf, in advance of a Final Determination of a Proceeding, all amounts payable by
the Indemnitor pursuant to the terms of this Agreement as corresponding amounts are expended or
incurred by the Indemnitee in connection with any Proceeding or otherwise (such amounts so expended
or incurred being referred to as “Advanced Amounts”). In making any claim for payment by the
Indemnitor of any amount, including any Advanced Amount, pursuant to this Agreement, the Indemnitee
shall submit to the Indemnitor a written request for payment (a “Claim”) which includes a schedule
setting forth in reasonable detail the dollar amount expended

 

 

(or incurred or expected to be expended or incurred). Each item on such schedule shall be
supported by the bill, agreement, or other documentation relating thereto, a copy of which shall be
appended to the schedule as an exhibit.

     Where the Indemnitee is requesting Advanced Amounts, the Indemnitee must also provide an
undertaking to repay such Advanced Amounts if a Final Determination is made that the Indemnitee is
not entitled to indemnification hereunder.

     5. Section 16(b) Liability. Indemnitor shall not be liable under this Agreement to
make any payment in connection with any claim made against the Indemnitee for an accounting of
profits made from the purchase or sale by the Indemnitee of securities of Indemnitor within the
meaning of Section 16(b) of the Securities Exchange Act of 1934, and amendments thereof, or similar
provisions of any state statutory law or common law.

     6. Continuation of Indemnity. All agreements and obligations of the Indemnitor
contained herein shall continue during the period the Indemnitee is a director and/or officer of
Indemnitor (or is serving at the request of Indemnitor as an Affiliate Indemnitee) and shall
continue thereafter so long as the Indemnitee shall be subject to any possible Proceeding by reason
of the fact that the Indemnitee was a director or officer of Indemnitor or served as such an
Affiliate Indemnitee.

     7. Successors; Binding Agreement. This Agreement shall be binding on, and shall inure
to the benefit of and be enforceable by, the Indemnitor’s successors and assigns and by the
Indemnitee’s personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. Indemnitor shall require any successor or assignee (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of Indemnitor, by written agreement in form and substance reasonably
satisfactory to Indemnitor and to the Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that Idemnitor would be required to perform if
no such succession or assignment had taken place.

     8. Notification and Defense of Claims. Promptly after receipt by the Indemnitee of
notice of the commencement of any Proceeding, the Indemnitee shall, if a claim in respect thereof
is to be made against Indemnitor under this Agreement, notify Indemnitor of the commencement
thereof, but the failure to so notify Indemnitor will not relieve the Indemnitor from any liability
that it may have to the Indemnitee. With respect to any such Proceeding:

     (a) Indemnitor shall be entitled to participate therein at its own expense;

     (b) Except with prior written consent of the Indemnitee, the Indemnitor shall not be entitled
to assume the defense of any Proceeding; and

     (c) Indemnitor shall not settle any Proceeding in any manner that would impose any penalty or
limitation on, or in any way be adverse to, the Indemnitee without the Indemnitee’s prior written
consent.

     The Indemnitee shall not settle any Proceeding with respect to which the Indemnitee has
received indemnified amounts or Advanced Amounts without the Indemnitor’s prior written consent,
nor will the Indemnitee unreasonably withhold consent to any proposed settlement.

 

 

     9. Enforcement. (a) Indemnitor has entered into this Agreement and assumed the
obligations imposed on Indemnitor hereby in order to induce the Indemnitee to act as a director
and/or officer of the Company or as an Affiliate Indemnitee and acknowledges that the Indemnitee is
relying upon this Agreement in continuing in such capacity.

     (b) All expenses incurred by the Indemnitee in connection with the preparation and submission
of the Indemnitee’s request for indemnification hereunder shall be borne by the Indemnitor. In the
event the Indemnitee has requested payment for any amount under this Agreement and has not received
payment thereof within thirty (30) days of such request, the Indemnitee may bring any action to
enforce rights or collect moneys due under this Agreement, and, if the Indemnitee is successful in
such action, the Indemnitor shall reimburse the Indemnitee for all of the Indemnitee’s fees and
expenses in bringing and pursuing such action. If it is determined that the Indemnitee is entitled
to indemnification for part (but not all) of the indemnification so requested, expenses incurred in
seeking enforcement of such partial indemnification shall be reasonably prorated among the claims,
issues or matters for which the Indemnitee is entitled to indemnification and the claims, issues or
matters for which the Indemnitee is not so entitled. The Indemnitee shall be entitled to the
advancement of such amounts to the full extent contemplated by Section 4 hereof in connection with
such Proceeding.

     10. Separability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, all
portions of any sections or subsections of this Agreement containing any such provision held to be
invalid, illegal or unenforceable, that are not by themselves invalid, illegal or unenforceable)
shall not in any way be affected or impaired thereby, and (ii) to the fullest extent possible, the
provisions of any section or subsections of this Agreement containing any such provisions held to
be invalid, illegal or unenforceable shall be construed so as to give effect to the intent of the
parties that the Indemnitors (or any of them) provide protection to the Indemnitee to the fullest
extent enforceable.

     11. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such modification, waiver or discharge is agreed to in writing signed by the
Indemnitee and an officer of the Indemnitor designated by the Board of Directors of Indemnitor. No
waiver by either party at any time of any breach by the other party of, or of compliance with, any
condition or provision of this Agreement to be performed by such other party shall be deemed a
waiver of similar or dissimilar provisions or conditions at the same time or at any prior or
subsequent time. The validity, interpretation, construction and performance of this Agreement
shall be governed by the laws of the State of Delaware, without giving effect to the principles of
conflicts of law thereof. The Indemnitee may bring an action seeking resolution of disputes or
controversies arising under, or in any way related to, this Agreement in the state or federal court
jurisdiction in which the Indemnitee resides or in which the Indemnitee’s place of business is
located and in any related appellate courts, and the Indemnitor hereby consents to the jurisdiction
of such courts and to such venue. This Agreement amends and restates, in its entirety, any prior
indemnity agreement entered into between the Company and Indemnitee.

     12. Notices. For the purposes of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have

 

 

been duly given when delivered or mailed by United States certified or registered mail, return
receipt requested, postage prepaid, as follows:

	 	 	 

	If to the Indemnitee:

	 	At the address set below his signature hereto.
	 
	 	 
	If to the Company:

	 	Arch Coal, Inc.

Suite 300

One CityPlace Drive

St. Louis, Missouri 63141

or to such other address as either party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt.

     13. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together shall constitute one and the same
instrument.

 

 

     IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the day
and year first above written.

	 	 	 	 	 	 	 

	 	 	ARCH COAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Robert G. Jones
	 	 
	 

	 	Title:
	 	Senior Vice President-Law, General

Counsel and Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	INDEMNITEE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address:

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