Document:

exh4-3_121614

Exhibit 4.3

CREDIT AGREEMENT
among
WESTMORELAND COAL COMPANY,
as the Borrower
VARIOUS LENDERS,
and
BANK OF MONTREAL,
as ADMINISTRATIVE AGENT
________________________________
Dated as of December 16, 2014
________________________________
BMO CAPITAL MARKETS CORP. and DEUTSCHE BANK SECURITIES INC.,
as JOINT LEAD ARRANGERS and JOINT BOOK-RUNNERS

Table of Contents

	
				
	 
	 
	 
	Page

	SECTION 1.
	 
	Definitions and Accounting Terms
	1

	1.01.
	 
	Defined Terms
	1

	1.02.
	 
	Other Definitional Provisions
	41

	SECTION 2.
	 
	Amount and Terms of Credit
	42

	2.01.
	 
	The Commitments
	42

	2.02.
	 
	Minimum Amount of Each Borrowing
	42

	2.03.
	 
	Notice of Borrowing
	42

	2.04.
	 
	Disbursement of Funds
	43

	2.05.
	 
	Notes
	43

	2.06.
	 
	Conversions/Continuations
	44

	2.07.
	 
	Pro Rata Borrowings
	44

	2.08.
	 
	Interest
	44

	2.09.
	 
	Interest Periods
	45

	2.10.
	 
	Increased Costs, Illegality, etc.
	46

	2.11.
	 
	Compensation
	48

	2.12.
	 
	Change of Lending Office
	48

	2.13.
	 
	Replacement of Lenders
	49

	2.14.
	 
	Incremental Credit Extensions
	50

	2.15.
	 
	Reverse Dutch Auction Repurchases
	51

	2.16.
	 
	Extensions of Term Loans
	53

	SECTION 3.
	 
	[Reserved]
	55

	SECTION 4.
	 
	Fees
	55

	4.01.
	 
	Fees
	55

	4.02.
	 
	Termination of Commitments
	55

	SECTION 5.
	 
	Prepayments; Payments; Taxes
	55

	5.01.
	 
	Voluntary Prepayments
	55

	5.02.
	 
	Mandatory Repayments
	56

	5.03.
	 
	Method and Place of Payment
	59

	5.04.
	 
	Net Payments
	59

	SECTION 6.
	 
	Conditions Precedent to Credit Events on the Initial Borrowing Date
	61

	6.01.
	 
	Effective Date; Notes
	61

	6.02.
	 
	Representations and Warranties
	61

	6.03.
	 
	Officer’s Certificate
	62

	6.04.
	 
	Opinions of Counsel
	62

	6.05.
	 
	Company Documents; Proceedings; etc.
	62

	6.06.
	 
	Consummation of the Refinancing
	62

	6.07.
	 
	Approvals
	63

	6.08.
	 
	Guaranty and Collateral Agreement; Intercreditor
	63

	6.09.
	 
	Mortgage; Title Insurance; Landlord Waivers; etc.
	64

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	6.10.
	 
	Financial Statements; Pro Forma Balance Sheet; Projections
	65
	

	6.11.
	 
	Solvency Certificate; Insurance Certificates, etc.
	66
	

	6.12.
	 
	Fees, etc.
	66
	

	6.13.
	 
	Patriot Act
	66
	

	6.14.
	 
	Credit Documentation
	66
	

	SECTION 7.
	 
	Conditions Precedent to All Credit Events
	66
	

	7.01.
	 
	No Default; Representations and Warranties
	66
	

	7.02.
	 
	Notice of Borrowing
	67
	

	SECTION 8.
	 
	Representations, Warranties and Agreements
	67
	

	8.01.
	 
	Organization; Powers
	67
	

	8.02.
	 
	Authorization; Enforceability
	67
	

	8.03.
	 
	No Violation
	67
	

	8.04.
	 
	Approvals
	68
	

	8.05.
	 
	Financial Statements; Financial Condition; Undisclosed Liabilities; Projections
	68
	

	8.06.
	 
	Litigation
	69
	

	8.07.
	 
	Disclosure
	69
	

	8.08.
	 
	Use of Proceeds; Margin Regulations
	69
	

	8.09.
	 
	Tax Returns and Payments
	70
	

	8.10.
	 
	Compliance with ERISA and Other Benefits Laws
	70
	

	8.11.
	 
	Security Documents
	71
	

	8.12.
	 
	Properties
	71
	

	8.13.
	 
	Subsidiaries
	72
	

	8.14.
	 
	Compliance with Statutes, etc.
	72
	

	8.15.
	 
	Investment Company Act
	72
	

	8.16.
	 
	Environmental Matters
	72
	

	8.17.
	 
	Employment and Labor Relations
	72
	

	8.18.
	 
	Intellectual Property, etc.
	73
	

	8.19.
	 
	Foreign Assets Control Regulations, Etc.
	73
	

	SECTION 9.
	 
	Affirmative Covenants
	73
	

	9.01.
	 
	Information Covenants
	73
	

	9.02.
	 
	Books, Records and Inspections
	75
	

	9.03.
	 
	Maintenance of Property; Insurance
	76
	

	9.04.
	 
	Existence; Franchises
	76
	

	9.05.
	 
	Compliance with Statutes, etc.
	76
	

	9.06.
	 
	Compliance with Environmental Laws
	77
	

	9.07.
	 
	ERISA
	77
	

	9.08.
	 
	End of Fiscal Years; Fiscal Quarters
	77
	

	9.09.
	 
	Payment of Taxes
	78
	

	9.10.
	 
	Use of Proceeds
	78
	

	9.11.
	 
	Additional Security; Further Assurances; etc.
	78
	

	9.12.
	 
	Interest Rate Protection
	79
	

	9.13.
	 
	Ratings
	79
	

	SECTION 10.
	 
	Negative Covenants
	80
	

	10.01.
	 
	Liens
	80
	

	10.02.
	 
	Consolidation, Merger, Amalgamation, Purchase or Sale of Assets, etc.
	83
	

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	10.03.
	 
	Dividends
	87
	

	10.04.
	 
	Indebtedness
	89
	

	10.05.
	 
	Advances, Investments and Loans
	91
	

	10.06.
	 
	Transactions with Affiliates
	94
	

	10.07.
	 
	Limitation on Certain Restrictions on Subsidiaries
	95
	

	10.08.
	 
	Business; etc.
	96
	

	10.09.
	 
	Optional Payments and Modifications of Certain Debt Instruments
	96
	

	SECTION 11.
	 
	Events of Default
	96
	

	11.01.
	 
	Payments
	96
	

	11.02.
	 
	Representations, etc.
	96
	

	11.03.
	 
	Covenants
	96
	

	11.04.
	 
	Default Under Other Agreements
	96
	

	11.05.
	 
	Bankruptcy, etc.
	97
	

	11.06.
	 
	ERISA
	97
	

	11.07.
	 
	Security Documents
	97
	

	11.08.
	 
	Guaranties
	98
	

	11.09.
	 
	Judgments
	98
	

	11.10.
	 
	Change of Control
	98
	

	11.11.
	 
	Limitation on Activities of Absaloka
	98
	

	11.12.
	 
	Limitation on Activities of Westmoreland Canada LLC
	98
	

	SECTION 12.
	 
	The Administrative Agent
	99
	

	12.01.
	 
	Appointment
	99
	

	12.02.
	 
	Nature of Duties
	99
	

	12.03.
	 
	Lack of Reliance on the Administrative Agent
	99
	

	12.04.
	 
	Certain Rights of the Administrative Agent
	100
	

	12.05.
	 
	Reliance
	100
	

	12.06.
	 
	Indemnification
	100
	

	12.07.
	 
	The Administrative Agent in its Individual Capacity
	100
	

	12.08.
	 
	Holders
	100
	

	12.09.
	 
	Resignation by the Administrative Agent
	101
	

	12.10.
	 
	Collateral Matters
	101
	

	12.11.
	 
	Delivery of Information
	102
	

	SECTION 13.
	 
	Miscellaneous
	103
	

	13.01.
	 
	Payment of Expenses, etc.
	103
	

	13.02.
	 
	Right of Setoff
	104
	

	13.03.
	 
	Notices
	104
	

	13.04.
	 
	Benefit of Agreement; Assignments; Participations
	105
	

	13.05.
	 
	No Waiver; Remedies Cumulative
	107
	

	13.06.
	 
	Payments Pro Rata
	107
	

	13.07.
	 
	Calculations; Computations
	108
	

	13.08.
	 
	GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL
	108
	

	13.09.
	 
	Counterparts
	109
	

	13.10.
	 
	Effectiveness
	109
	

	13.11.
	 
	Headings Descriptive
	109
	

	13.12.
	 
	Amendment or Waiver; etc.
	109
	

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	13.13.
	 
	Survival
	112
	

	13.14.
	 
	Domicile of Loans
	112
	

	13.15.
	 
	Register
	112
	

	13.16.
	 
	Confidentiality
	112
	

	13.17.
	 
	Patriot Act
	113
	

	13.18.
	 
	Interest Rate Limitation
	113
	

	13.19.
	 
	Judgment Currency
	113
	

	13.20.
	 
	No Fiduciary Duty
	114
	

	13.21.
	 
	Intercreditor Agreements
	114
	

	
			
	SECHEDULE 1.01(a)
	 
	Commitments 

	SECHEDULE 1.01(b)
	 
	Lender Addresses 

	SECHEDULE 1.01(c)
	 
	Excluded Real Property

	SECHEDULE 1.01(d)
	 
	Permitted Sale Leaseback

	SECHEDULE 2.15
	 
	Reverse Dutch Auction Procedures

	SECHEDULE 8.11(a)
	 
	Financing Statements 

	SECHEDULE 8.12
	 
	Real Property 

	SECHEDULE 8.13
	 
	Subsidiaries

	SECHEDULE 8.16
	 
	Environmental Matters 

	SECHEDULE 8.17
	 
	Labor Matters

	SECHEDULE 10.01
	 
	Existing Liens

	SECHEDULE 10.02
	 
	Subsidiaries and Investments

	SECHEDULE 10.02(v)
	 
	Dispositions 

	SECHEDULE 10.03(v)
	 
	Dividends 

	SECHEDULE 10.04
	 
	Existing Indebtedness 

	SECHEDULE 10.05
	 
	Existing Investments 

	SECHEDULE 10.05(xv)
	 
	Joint Ventures

	SECHEDULE 10.05(xvi)
	 
	Intercompany Indebtedness 

	SECHEDULE 10.05(xvii)
	 
	Investments in newly formed Foreign Subsidiaries

	SECHEDULE 10.07
	 
	Existing Restrictions  

	 
	 
	 

	EXHIBIT A-1
	 
	Form of Notice of Borrowing

	EXHIBIT A-2
	 
	Form of Notice of Conversion/Continuation

	EXHIBIT B
	 
	Form of Promissory Note

	EXHIBIT C
	 
	[Reserved]

	EXHIBIT D
	 
	Form of Section 5.04(b)(ii) Certificate

	EXHIBIT E
	 
	Form of Opinion of counsel to the Credit Parties

	EXHIBIT F
	 
	Form of Officers’ Certificate

	EXHIBIT G
	 
	Form of Guaranty and Collateral Agreement

	EXHIBIT H
	 
	Form of Solvency Certificate

	EXHIBIT I
	 
	Form of Compliance Certificate

	EXHIBIT J
	 
	Form of Assignment and Assumption Agreement

	EXHIBIT K
	 
	Form of Intercompany Note

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CREDIT AGREEMENT, dated as of December 16, 2014, among Westmoreland Coal Company, a Delaware corporation, the Lenders party hereto from time to time and Bank of Montreal, as Administrative Agent.  All capitalized terms used herein and defined in Section 1.01 are used herein as therein defined.
W I T N E S S E T H:
WHEREAS, subject to and upon the terms and conditions set forth herein, the Lenders are willing to make available to the Borrower the respective credit facilities provided for herein;
NOW, THEREFORE, IT IS AGREED:
SECTION 1.     Definitions and Accounting Terms
1.01.     Defined Terms.  As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
“ABL Documents” shall mean any agreement or instrument governing or evidencing any Permitted ABL Indebtedness.
“ABL Facility” shall mean the Second Amended and Restated Loan and Security Agreement, dated as of December 16, 2014 among the Borrower, certain other Credit Parties, the lenders parties thereto and The PrivateBank and Trust Company, as administrative agent, as such agreement may be amended, restated, supplemented, refinanced, replaced, extended or otherwise modified from time to time.
“ABL Intercreditor Agreement” shall mean the Working Capital Intercreditor Agreement, dated as of the Effective Date, among the ABL Representative, the Notes Representative, the Administrative Agent, certain Credit Parties party thereto and the other parties thereto.
“ABL Priority Collateral” shall mean the “Working Capital Loan First Priority Collateral” as defined in the ABL Intercreditor Agreement.
“ABL Representative” shall mean the “Working Capital Agent” as defined in the ABL Intercreditor Agreement.
“Absaloka” shall mean Absaloka Coal, LLC.
“Accounting Change” shall have the meaning assigned to such term in the definition of GAAP.
“Acquired Entity or Business” shall mean either (x) the assets constituting a business, division or product line of any Person not already a Subsidiary of the Borrower or (y) 100% of the Equity Interests of any such Person, which Person shall, as a result of the acquisition of such Equity Interests, become a Subsidiary of the Borrower.
“Acquisition” shall mean the acquisition by the Borrower of 100% of the outstanding equity securities of Oxford GP and certain subordinated units and subordinated unit warrants of Oxford MLP, pursuant to the Acquisition Agreement.

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“Acquisition Agreement” shall mean the purchase agreement relating to the Acquisition, dated as of October 16, 2014, among the Sellers and the Borrower, together with all exhibits and schedules thereto.
“Acquisition Documents” shall mean the Acquisition Agreement and all other agreements and documents relating to the Acquisition, as the same may be amended, modified and/or supplemented from time to time in accordance with the terms hereof and thereof.
“Additional Lender” shall have the meaning provided in Section 2.14(d).
“Additional Security Documents” shall have the meaning provided in Section 9.11(b).
“Adjusted Consolidated Net Income” shall mean, for any period, Consolidated Net Income for such period plus the sum of the amount of all net Non-Cash Charges (including, without limitation, depreciation, amortization, deferred tax expense and non-cash interest expense) and net non-cash losses which were included in arriving at Consolidated Net Income for such period, less the amount of all net non-cash gains and non-cash credits which were included in arriving at Consolidated Net Income for such period.
“Adjusted Consolidated Working Capital” shall mean, at any time, Consolidated Current Assets (but excluding therefrom all cash and Cash Equivalents) less Consolidated Current Liabilities at such time.  For purposes of calculating Adjusted Consolidated Working Capital for any period in which a Permitted Acquisition occurs, the “consolidated current assets” and “consolidated current liabilities” of any Acquired Entity or Business (determined on a basis consistent with the corresponding definitions herein, with appropriate reference changes) as of the date such Permitted Acquisition is consummated shall be added to Consolidated Current Assets or Consolidated Current Liabilities, as the case may be, as of the first day of the applicable period.
“Administrative Agent” shall mean Bank of Montreal, in its capacity as Administrative Agent for the Lenders hereunder and under the other Credit Documents, and shall include any successor to the Administrative Agent appointed pursuant to Section 12.09.
“Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling (including, but not limited to, all directors and officers of such Person), controlled by, or under direct or indirect common control with, such Person.  A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such other Person, whether through the ownership of voting securities, by contract or otherwise; provided, however, that none of the Administrative Agent, any Lender or any of their respective Affiliates shall be considered an Affiliate of the Borrower or any Subsidiary thereof.
“Agreement” shall mean this Credit Agreement, as modified, supplemented, amended, restated (including any amendment and restatement hereof), extended or renewed from time to time.
“Applicable Excess Cash Flow Percentage” shall mean, with respect to any Excess Cash Payment Date, 75%; provided that if on the last day of the relevant Excess Cash Payment Period, the Total Leverage Ratio for the Test Period then most recently ended (as set forth in the officer’s certificate delivered (or required to be delivered) with respect to such Test Period pursuant to Section 9.01(e)) is (i) (a) less than 3.00:1.00 and (b) greater than or equal to 2.50:1.00, then the Applicable Excess Cash Flow Percentage shall instead be 50%, (ii) (a) less than 2.50:1.00 and (b) greater than or equal to 2.00:1.00, then the Applicable Excess Cash Flow Percentage shall instead be 25% or (ii) less than 2.00:1.00, then the Applicable Excess Cash Flow Percentage shall instead be 0%.

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“Applicable Margin” initially shall mean a percentage per annum equal to, in the case of Term Loans maintained as (A) Base Rate Loans, 5.50% and (B) LIBOR Loans, 6.50%.
“Approved Fund” shall mean with respect to any Lender which is a fund that invests in loans, any other fund that invests in loans that is managed by the same investment advisor as such Lender or by an Affiliate of such Lender or such investment advisor.
“As-Extracted Collateral” shall mean (a) oil, gas or other minerals that are subject to a security interest that (i) is created by a debtor having an interest in the minerals before extraction and (ii) attaches to the minerals as extracted; or (b) accounts arising out of the sale at the wellhead or minehead of oil, gas, or other minerals in which the debtor had an interest before extraction.
“As-Extracted Collateral Filing” shall mean a financing statement covering As-Extracted Collateral filed in the office designated for the filing or recording of a record of a mortgage on the related Real Property.
“Asset Sale” shall mean any sale, transfer or other disposition by the Borrower or any of its Subsidiaries to any Person (including by way of redemption by such Person) other than to the Borrower or a Wholly-Owned Subsidiary of the Borrower of any asset (including, without limitation, any capital stock or other securities of, or Equity Interests in, another Person), but excluding (a) sales of assets pursuant to Sections 10.02(ii), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiv), (xv), (xix) and (xx) and (b) any other sale, transfer or disposition (for such purpose, treating any series of related sales, transfers or dispositions as a single such transaction) that generates gross proceeds of less than $10,000,000.
“Assignment and Assumption Agreement” shall mean an Assignment and Assumption Agreement substantially in the form of Exhibit J (appropriately completed).
“Auction” shall have the meaning set forth in Section 2.15(a).
“Auction Manager” shall have the meaning set forth in Section 2.15(a).
“Auction Notice” shall mean the notification provided to the Auction Manager (for distribution to the Lenders of the Term Loans) by the Borrower in connection with each Auction in accordance with Section 2.15 and Schedule 2.15.
“Authorized Officer” shall mean, with respect to (i) delivering Notices of Borrowing, Notices of Conversion/Continuation and similar notices, any person or persons that has or have been authorized by the board of directors of the Borrower to deliver such notices pursuant to this Agreement, (ii) delivering financial information and officer’s certificates pursuant to this Agreement, the chief executive officer, president, chief financial officer, chief legal officer, senior vice president, treasurer, assistant treasurer, controller or principal accounting officer of the Borrower, and (iii) any other matter in connection with this Agreement or any other Credit Document, any officer (or a person or persons so designated by any officer described in clauses (i) or (ii) immediately above) of the Borrower.
“Bankruptcy Code” shall have the meaning provided in Section 11.05.
“Base Rate” shall mean, at any time, the highest of (i) the Prime Lending Rate at such time, (ii) 1/2 of 1% per annum in excess of the overnight Federal Funds Rate at such time and (iii) the LIBO Rate for a LIBOR Loan denominated in dollars with a one-month interest period commencing on such day plus 1.00%. For purposes of this definition, the LIBO Rate shall be determined using the LIBO Rate as otherwise determined by the Administrative Agent in accordance with the definition of LIBO 

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Rate, except that (x) if a given day is a Business Day, such determination shall be made on such day (rather than two Business Days prior to the commencement of an Interest Period) or (y) if a given day is not a Business Day, the LIBO Rate for such day shall be the rate determined by the Administrative Agent pursuant to preceding clause (x) for the most recent Business Day preceding such day.  Any change in the Base Rate due to a change in the Prime Lending Rate, the Federal Funds Rate or such LIBO Rate shall be effective as of the opening of business on the day of such change in the Prime Lending Rate, the Federal Funds Rate or such LIBO Rate, respectively.
“Base Rate Loan” shall mean each Loan designated or deemed designated as such by the Borrower at the time of the incurrence thereof or conversion thereto.
“Borrower” shall mean Westmoreland Coal Company.
“Borrower Common Stock” shall mean the authorized common stock of the Borrower.
“Borrowing” shall mean the borrowing of one Type of Loan of a single Tranche by the Borrower from all the Lenders having Commitments of the respective Tranche on a given date (or resulting from a conversion or continuation on such date) having in the case of LIBOR Loans the same Interest Period, provided that Base Rate Loans incurred pursuant to Section 2.10(b) shall be considered part of the related Borrowing of LIBOR Loans.
“Business Day” shall mean any day except Saturday, Sunday and any day which shall be in New York, New York, a day on which banking institutions are authorized or required by law or other government action to close.
“Calculation Date” shall have the meaning provided in the definition of Fixed Charge Coverage Ratio.
“Calculation Period” shall mean, with respect to any Permitted Acquisition or any other event expressly required to be calculated on a Pro Forma Basis pursuant to the terms of this Agreement, the Test Period most recently ended prior to the date of such Permitted Acquisition or other event for which financial statements have been delivered to the Lenders pursuant to Section 9.01(a) or (b), as applicable.
“Capital Expenditures” shall mean, with respect to any Person, all expenditures by such Person which should be capitalized in accordance with GAAP and, without duplication, the amount of all Capitalized Lease Obligations incurred by such Person.
“Capitalized Lease Obligations” shall mean, with respect to any Person, all rental obligations of such Person which, under GAAP, are or will be required to be capitalized on the books of such Person, in each case taken at the amount thereof accounted for as indebtedness in accordance with such principles, provided that notwithstanding the foregoing, in no event will any obligation in respect of a lease that would have been categorized as an operating lease in accordance with GAAP on the Effective Date be considered a Capitalized Lease Obligation.
“Cash Equivalents” shall mean, as to any Person,
(a)    United States dollars or any other currencies held from time to time in the ordinary course of business;

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(b)    securities issued by the United States or Canadian government or any agency or instrumentality of the United States government having maturities of not more than two years from the date of acquisition;
(c)    certificates of deposit, time deposits, money market deposits and eurodollar time deposits with maturities of two years or less from the date of acquisition, bankers’ acceptances with maturities of two years or less and overnight bank deposits, in each case with any Lender or with any domestic commercial bank having capital and surplus in excess of $500 million;
(d)    repurchase obligations for underlying securities of the types described in clauses (b), (c) and (f) entered into with any financial institution meeting the qualifications specified in clause (c) above;
(e)     commercial paper rated at least P-2 by Moody’s or at least A-2 by S&P and, in each case, maturing within two years after the date of acquisition;
(f)    securities issued or fully guaranteed by any state or commonwealth of the United States, or by any political subdivision or taxing authority thereof, and rated at least Baa3 by Moody’s or BBB- by S&P and, in each case, maturing within two years after the date of acquisition;
(g)    mutual funds whose investment guidelines restrict 90% of such funds’ investments to those satisfying the provisions of clauses (a) through (f) above;
(h)    money market funds that (i) comply with the criteria set forth in Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $500 million;
(i)    time deposit accounts, certificates of deposit and money market deposits with maturities of one year or less from the date of acquisition, in each case with any commercial bank having capital and surplus of not less than $250.0 million in the case of U.S. banks and $100.0 million (or the U.S. dollar equivalent as of the date of determination) in the case of foreign banks; and
(j) Indebtedness or preferred stock issued by Persons rated at least A-2 by Moody’s or A by S&P.
“Change of Control” shall mean (i) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Borrower and its Subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d) of the Exchange Act), (ii) the adoption of a plan relating to the liquidation or dissolution of the Borrower or (iii) the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any “person” (as defined above) becomes the beneficial owner, directly or indirectly, of more than 50% of the voting stock of the Borrower measured by voting power rather than number of shares.
“Claims” shall have the meaning provided in the definition of “Environmental Claims.”
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder.

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“Collateral” shall mean all property (whether real or personal) with respect to which any security interests have been granted (or purported to be granted) pursuant to any Security Document, including, without limitation, all GCA Collateral, all Mortgaged Properties and all cash and Cash Equivalents delivered as collateral, which will not include in any case the ICTC Excluded Collateral or the Excluded Property.
“Collateral Agent” shall mean the Administrative Agent acting as collateral agent for the Secured Creditors pursuant to the Security Documents.
“Commitment” shall mean any of the commitments of any Lender, i.e., a Term Loan Commitment.
“Commodity Exchange Act” shall mean the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Company” shall mean any corporation, limited liability company, partnership or other business entity (or the adjectival form thereof, where appropriate).
“Company Material Adverse Effect” shall mean “Company Material Adverse Effect” as defined in the Acquisition Agreement.
“Confidential Information Memorandum” shall mean the Confidential Information Memorandum and supplemental documents thereto, dated November 2014 and furnished to certain Lenders.
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however determined) or that are franchise Taxes or branch profits Taxes. 
“Consolidated Current Assets” shall mean, at any time, the consolidated current assets of the Borrower and its Subsidiaries at such time.
“Consolidated Current Liabilities” shall mean, at any time, the consolidated current liabilities of the Borrower and its Subsidiaries at such time, but excluding the current portion of any Indebtedness under this Agreement and the current portion of any other long-term Indebtedness that would otherwise be included therein.
“Consolidated EBITDA” shall mean, for any period, the Consolidated Net Income of the Borrower and its Subsidiaries for such period (A) plus, without duplication, to the extent the same was deducted in calculating Consolidated Net Income:
(a)    provision for taxes based on income, profits or capital, including without limitation state, franchise and similar taxes, of the Borrower and its Subsidiaries for such period; plus
(b)    the Fixed Charges of such the Borrower and its Subsidiaries for such period; plus
(c)    depreciation, depletion, amortization (including amortization of intangibles, deferred financing fees and any amortization included in pension, OPEB or other employee benefit expenses, but excluding amortization of prepaid cash expenses that were paid in a prior period) and other non-cash expenses (including without limitation write-downs and impairment of property, plant, equipment and intangibles and other long-lived assets and the impact of purchase accounting, but excluding any such non-cash expense to the extent that it represents an accrual of or reserve for cash expenses in 

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any future period or amortization of a prepaid cash expense that was paid in a prior period) of the Borrower and its Subsidiaries for such period; plus
(d)    the amount of any unusual or non-recurring losses or charges, business optimization expenses and other restructuring charges (which, for the avoidance of doubt, shall include retention, severance, systems establishment cost or excess pension, OPEB, black lung settlement, curtailment or other excess charges and fees, expenses, charges or premiums related to any offering or modification of Indebtedness of such person permitted to be incurred) of the Borrower and its Subsidiaries for such period; plus
(e)    the non-cash portion of “straight-line” rent expense of the Borrower and its Subsidiaries for such period; plus
(f)    the income of the Borrower and its Subsidiaries for such period attributable to the minority equity interests of third parties in any Non-Wholly Owned Subsidiary in such period or any prior period, except to the extent of dividends declared or paid on Equity Interests held by third parties; plus
(g)    any net loss (or minus any net gain) of the Borrower and its Subsidiaries for such period attributable to the early extinguishment of Indebtedness, including, without limitation, any premiums or similar charges related to any refinancing transaction or any amendment or modification of any Indebtedness; plus
(h)    accretion expense associated with asset retirement obligations of the Borrower and its Subsidiaries for such period; plus
(i)    costs and expenses incurred in connection with the Transactions; plus
(j)    an amount equal to the cash actually received by the Borrower and its Subsidiaries for such period under (A) the contract in effect on the Effective Date relating to the Genessee mine and (B) any similar arrangement entered into after the Effective Date, in each case which under GAAP is required to be accounted for as a finance lease in accordance with ASC 840-10-15 Leases; minus
(k)    the aggregate amount of (1) non-cash items to the extent such items increased Consolidated Net Income for such period, other than any items which represent the reversal of any accrual of, or cash reserve for, anticipated charges in any prior period where such accrual or reserve is no longer required, (2) the losses attributable to the minority equity interests of third parties in any Non-Wholly Owned Subsidiary, in each case, on a consolidated basis and determined in accordance with GAAP and (3) the cash portion of “straight-line” rent expense which exceeds the amount expensed in respect of such rent expense.
“Consolidated Net Income” shall mean, for any period, aggregate of the Net Income of such the Borrower and its Subsidiaries for such period, on a consolidated basis, determined in accordance with GAAP; provided that:
(a)    any net after-tax extraordinary, unusual or nonrecurring gains or losses or income or expense or charges (including, without limitation, income, expenses and charges from litigation and arbitration settlements, severance, retention, relocation and other restructuring costs), less all fees and expenses relating thereto, shall be excluded;
(b)    fees, expenses or charges related to any Disposition (including the fees, expenses and charges related to the Initial Oxford Dropdown or any subsequent MLP Asset Transfer), any Permitted

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Acquisition (or any similar transaction or transactions, including the fees, expenses and charges related to the Oxford Acquisition), any incurrence or repayment of Indebtedness, including any refinancing transaction or any amendment or modification of any Indebtedness, or the issuance of any Equity Interests and including any such transaction occurring on, prior to or after the Effective Date (in each case, whether or not successful) shall be excluded;
(c)    any net after-tax income or loss from discontinued operations and any net after-tax gain or loss on disposal of discontinued operations shall be excluded;
(d)    any net after-tax gains or losses (less all fees and expenses or charges relating thereto) attributable to business dispositions or asset dispositions other than in the ordinary course of business (as determined in good faith by the board of directors of the Borrower) shall be excluded;
(e)    any net after-tax income or loss (less all fees and expenses or charges relating thereto) attributable to the early extinguishment of indebtedness, Hedging Obligations or other derivative instruments shall be excluded;
(f)    (i) the Net Income for such period of any Person that is not a Subsidiary of the Borrower, or that is accounted for by the equity method of accounting, shall be included only to the extent of the amount of dividends or distributions or other payments in respect of equity that are actually paid in cash (or to the extent converted into cash) by such Person to the Borrower or a Subsidiary thereof in respect of such period and (ii) the Net Income for such period shall include any dividend, distribution or other payments in respect of equity paid in cash by such Person to the Borrower or a Subsidiary thereof in excess of the amount included in clause (i) immediately above;
(g)    any increase in depreciation, depletion or amortization or any one-time Non-Cash Charges (such as purchased in-process research and development or capitalized manufacturing profit in inventory) resulting from purchase accounting in connection with any acquisition that is consummated prior to or after the date of the Indenture shall be excluded;
(h)    any non-cash impairment charges resulting from the application of FASB ASC 350 Intangibles- Goodwill and Other and FASB ASC 360 Property, Plant and Equipment and the amortization of intangibles pursuant to FASB ASC 805 Business Combinations shall be excluded;
(i)    any long-term incentive plan accruals and any non-cash compensation expense realized from grants of stock appreciation or similar rights, stock options or other rights to officers, directors and employees of the Borrower or any of its Subsidiaries shall be excluded;
(j)    (i) any net unrealized gain or loss (after any offset) resulting in such period from obligations under any Hedging Obligations and the application of ASC 815 Derivatives and Hedging and (ii) gains and losses due solely to fluctuations in currency values and the related tax effects according to GAAP shall be excluded;
(k)    the cumulative effect of a change in accounting principles will be excluded; and
(l)    any gain or loss, together with any related provision for taxes on such gain or loss, realized in connection with (i) any Asset Sale (including, without limitation, dispositions pursuant to sale and leaseback transactions) or (ii) the disposition of any securities by such Person or any of its Subsidiaries or the extinguishment of any Indebtedness of such Person or any of its Subsidiaries shall be excluded.
“Consolidated Total Assets” shall mean the total consolidated assets of the Borrower and its Subsidiaries determined on a consolidated basis determined in accordance with GAAP.

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“Contingent Obligation” shall mean, as to any Person, any obligation of such Person guaranteeing any leases, dividends or other obligations that do not constitute Indebtedness (the “primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (x) for the purchase or payment of any such primary obligation or (y) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided, however, that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business.  The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith.
“Contract Consideration” shall have the meaning provided in the definition of “Excess Cash Flow.”
“Contribution Agreement” shall mean the Contribution Agreement, dated as of October 16, 2014 between the Borrower and Oxford MLP relating to the Initial Oxford Dropdown.
“Controlled Group” shall mean the controlled group of the Borrower, as determined under section 52(a) of the Code and any regulatory guidance promulgated thereunder.
“Credit Documents” shall mean this Agreement, the Guaranty and Collateral Agreement, the First Lien Intercreditor Agreement, the ABL Intercreditor Agreement and, after the execution and delivery thereof pursuant to the terms of this Agreement, each Note and each other Security Document.
“Credit Event” shall mean the making of any Loan.
“Credit Party” shall mean the Borrower and each Guarantor.
“Cumulative Retained Consolidated Net Income” shall mean 50% of the Consolidated Net Income of the Borrower for the period (taken as one accounting period) from the beginning of the first fiscal quarter commencing after the Effective Date to the end of the Borrower’s most recently ended fiscal quarter for which internal financial statements are then available (or, if such Consolidated Net Income for such period is a deficit, less 100% of such deficit).
“Default” shall mean any event, act or condition that with notice or lapse of time, or both, would constitute an Event of Default.
“Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in effect.
“Deferred Net Sale Proceeds Payment Date” shall have the meaning provided in the definition of Net Sale Proceeds.
“Designated Non-Cash Consideration” shall mean the Fair Market Value of non-cash consideration received by the Borrower or any Subsidiary in connection with a Disposition pursuant to 

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Section 10.02 that is so designated as “Designated Non-cash Consideration” pursuant to a certificate of an Authorized Officer of the Borrower, setting forth the basis of such valuation.
“Disposition” shall have the meaning provided in Section 10.02(iv).
“Disqualified Stock” shall mean, with respect to any Person, any Equity Interest of such Person which, by its terms or by the terms of any security into which it is convertible or for which it is putable or exchangeable, or upon the happening of any event, matures or is mandatorily redeemable (other than solely for an Equity Interest that is not Disqualified Stock), pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, in each case on or prior to the date that is ninety-one days after the Maturity Date hereunder, provided that (a) any class of Equity Interests of such Person that, by its terms, authorizes such Person to satisfy in full its obligations with respect to the payment of dividends or upon maturity, redemption (pursuant to a sinking fund or otherwise) or repurchase thereof or otherwise by the delivery of Equity Interests that are not Disqualified Stock, and that is not convertible, putable or exchangeable for Disqualified Stock or Indebtedness, will not be deemed to be Disqualified Stock so long as such Person satisfies its obligations with respect thereto solely by the delivery of Equity Interests that are not Disqualified Stock, (b) any Equity Interests that would constitute Disqualified Stock solely because the holders of the Equity Interests have the right to require the Borrower or the Subsidiary that issued the Equity Interests to repurchase such Equity Interests upon the occurrence of a change of control or an asset sale will not constitute Disqualified Stock, and (c) if such Equity Interests are issued to any plan for the benefit of employees of the Borrower or its Subsidiaries or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Stock solely because they may be required to be repurchased by the Borrower or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations; provided, further, that any Equity Interests held by any future, present or former employee, director, manager or consultant of the Borrower or a Subsidiary or any other entity in which the Borrower or any of its Subsidiaries has an Investment and is designated in good faith as an “affiliate” by the board of directors of the Borrower, in each case pursuant to any stockholders’ agreement, equity plan or stock incentive plan or any other management, director or employee benefit plan or agreement shall not constitute Disqualified Stock solely because it may be required to be repurchased by the Borrower or its Subsidiaries.
“Dividend” shall mean, with respect to any Person, a declaration or payment by a Person of a dividend (other than dividends payable solely in its Qualified Equity Interests), or a distribution or a return of any equity capital to such Person’s stockholders, partners or members or making of any other distribution, payment or delivery of property (other than common Equity Interests of such Person) or cash to such Person’s stock-holders, partners or members in their capacity as such, or a redemption, retirement or making of or an acquisition of, directly or indirectly, for consideration any shares of any class of its capital stock or any other Equity Interests outstanding on or after the Effective Date (or any options or warrants issued by such Person with respect to its capital stock or other Equity Interests).  Without limiting the foregoing, “Dividends” with respect to any Person shall also include all payments made or required to be made by such Person with respect to any stock appreciation rights, plans, equity incentive or achievement plans or any similar plans or setting aside of any funds for the foregoing purposes.
“Documents” shall mean, collectively, (i) the Credit Documents, (ii) the Acquisition Documents, and (iii) the Refinancing Documents.
“Dollars” and the sign “$” shall each mean freely transferable lawful money of the United States.
“Domestic Subsidiary” of any Person shall mean any Subsidiary of such Person incorporated or organized in the United States or any State thereof or the District of Columbia; provided that no 

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Subsidiary of a Foreign Subsidiary shall be deemed to be a Domestic Subsidiary; provided further that any Subsidiary that would otherwise constitute a Domestic Subsidiary and is a holding company which owns Equity Interests in one or more Foreign Subsidiaries, but owns no other material assets and does not engage in any trade or business (other than acting as a holding company for such Equity Interests in Foreign Subsidiaries) shall not constitute a Domestic Subsidiary hereunder.
“Effective Date” shall have the meaning provided in Section 13.10.
“Eligible Transferee” shall mean and include a commercial bank, an insurance company, a finance company, a financial institution, any fund that invests in loans or any other “accredited investor” (as defined in Regulation D of the Securities Act), but in any event excluding the Borrower except with respect to the transactions allowed pursuant to Section 2.15.
“Environmental Claims” shall mean any and all administrative, regulatory or judicial actions, suits, demands, demand letters, directives, claims, liens, notices of non-compliance or violation, investigations and/or proceedings (hereafter, “Claims”) relating in any way to any noncompliance with, or liability arising under, Environmental Law or to any permit issued, or any approval given, under any Environmental Law or regarding any environmental condition, including, (a) any and all Claims by any Governmental Authority for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any Environmental Law, and (b) any and all Claims by any third party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief arising out of or relating to an alleged injury or threat of injury to human health, safety or the environment due to the presence of Hazardous Materials.
“Environmental Law” shall mean any Federal, state, provincial, local or foreign law (including principles of common law), rule, regulation, ordinance, code, directive, judgment, order or agreement, formerly, now or hereafter in effect and in each case as amended, and any legally binding judicial or administrative interpretation thereof, relating to the protection of the environment, or of human health (as it relates to the exposure to environmental hazards).
“Environmental Permits” shall mean any and all permits, licenses, approvals, registrations, notifications, exemptions and any other authorization pursuant to or required under any Environmental Law.
“Equity Interests” of any Person shall mean any and all shares, interests, rights to purchase or receive, warrants, options, participation or other equivalents of or interest in (however designated) equity of such Person, including any common stock, preferred stock, any limited or general partnership interest and any limited liability company membership interest.
“ERISA” shall mean the U.S. Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder.
“ERISA Affiliate” shall mean (a) any entity, whether or not incorporated, that is under common control with the Borrower or one of its Subsidiaries within the meaning of Section 4001(a)(14) of ERISA; (b) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Code of which the Borrower or one of its Subsidiaries is a member; (c) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Code of which the Borrower or one of its Subsidiaries is a member; and (d) with respect to the Borrower or one of its Subsidiaries, any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Code of which that the Borrower or one of its Subsidiaries, any corporation described in clause (b) above or any trade or business 

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described in clause (c) above is a member.  Any former ERISA Affiliate of the Borrower or one of its Subsidiaries shall continue to be considered an ERISA Affiliate of the Borrower or one of its Subsidiaries within the meaning of this definition with respect to the period such entity was an ERISA Affiliate of the Borrower or one of its Subsidiaries and with respect to liabilities arising after such period for which the Borrower or one of its Subsidiaries would be liable under the Code or ERISA.
“ERISA Event” shall mean any one or more of the following:
(a)    any Reportable Event;
(b)    (1) the filing of a notice of intent to terminate any Plan, if such termination would require material additional contributions in order to be considered a standard termination within the meaning of Section 4041(b) of ERISA, (2) the filing under Section 4041(c) of ERISA of a notice of intent to terminate any Plan or (3) the termination of any Plan under Section 4041(c) of ERISA;
(c)    the institution of proceedings, or the occurrence of an event or condition which constitutes grounds for the institution of proceedings, by the PBGC under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan;
(d)    the failure to make a required contribution to any Plan that would result in the imposition of a lien or other encumbrance or the provision of security under Section 430(k) of the Code or Section 303(k) or 4068 of ERISA, or the arising of such a lien or encumbrance; or any failure by any Plan to satisfy the minimum funding standards (within the meaning of Section 412 of the Code or Section 302 of ERISA) applicable to such Plan, whether or not waived; or the filing of any request for or receipt of a minimum funding waiver under Section 412 of the Code with respect to any Plan, or a determination that any Plan is, or is expected to be, in “at risk” status (within the meaning of Section 430 of the Code or Section 303 of ERISA);
(e)    engaging in a non-exempt prohibited transaction within the meaning of Section 4975 of the Code or Section 406 of ERISA that would reasonably be expected to have a Material Adverse Effect;
(f)    the failure by the Borrower or any of its ERISA Affiliates to make any required contribution to a Multiemployer Plan pursuant to Sections 431 or 432 of the Code or the incurrence by the Borrower or any ERISA Affiliate of any liability with respect to the withdrawal or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan, the Reorganization or Insolvency of any Multiemployer Plan; or the receipt by the Borrower or any ERISA Affiliate, of any notice, or a determination that a Multiemployer Plan is, or is expected to be, Insolvent, in Reorganization, in “endangered” or “critical” status (within the meaning of Sections 431 or 432 of the Code or Sections 304 or 305 of ERISA), or terminated (within the meaning of Section 4041A of ERISA) or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA;
(g)    the Borrower or an ERISA Affiliate incurring any liability under Title IV of ERISA with respect to any Plan (other than premiums due and not delinquent under Section 4007 of ERISA);
(h)    the withdrawal by the Borrower or any of its ERISA Affiliates from any Plan with two or more contributing sponsors or the termination of any such Plan resulting in liability to 

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the Borrower or any of its ERISA Affiliates pursuant to Section 4063 or 4064 of ERISA, respectively;
(i)    the imposition of liability on the Borrower or any of its ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; or
(j)    the occurrence of an act or omission which would give rise to the imposition on the Borrower or any of its ERISA Affiliates of fines, penalties, taxes or related charges under Chapter 43 of the Code or under Section 409, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any Plan.
“Event of Default” shall have the meaning provided in Section 11.
“Excess Cash Flow” shall mean, for any period, the remainder of:
(a)    the sum of, without duplication:
(i)    Adjusted Consolidated Net Income for such period; 
(ii)    the decrease, if any, in Adjusted Consolidated Working Capital from the first day to the last day of such period (other than any such decreases arising from acquisitions by the Borrower and its Subsidiaries completed during such period or the application of purchase accounting); and
(iii)    an amount equal to the cash actually received by the Borrower and its Subsidiaries for such period under (A) the contract in effect on the Effective Date relating to the Genessee mine and (B) any similar arrangement entered into after the Effective Date, in each case which under GAAP is required to be accounted for as a finance lease in accordance with ASC 840-10-15 Leases,
minus
(b)    the sum of, without duplication:
(i)    the aggregate amount of all Capital Expenditures made by the Borrower and its Subsidiaries during such period (other than Capital Expenditures to the extent financed with equity proceeds, Equity Interests, capital contributions, asset sale proceeds, insurance proceeds or Indebtedness),
(ii)    the aggregate amount of all principal payments of Indebtedness of the Borrower and its Subsidiaries (including (A) the principal component of payments in respect of Capitalized Lease Obligations, (B) the amount of any repayment of Term Loans pursuant to Section 5.01 (other than such repayments which are funded by Permitted Refinancing Indebtedness) and (C) the amount of a mandatory prepayment of Term Loans pursuant to Sections 5.02(a), 5.02(b) and 5.02(c) to the extent required due to a Disposition that resulted in an increase to Consolidated Net Income and not in excess of the amount of such increase but excluding all other prepayments of Term Loans) made during such period (other than in respect of any revolving credit facility to the extent there is not an equivalent permanent reduction in commitments thereunder), except to the extent financed with the proceeds of other Indebtedness of the Borrower or its Subsidiaries,

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(iii)    an amount equal to the aggregate net non-cash gain on Dispositions by the Borrower and its Subsidiaries during such period (other than Dispositions in the ordinary course of business) to the extent included in arriving at such Adjusted Consolidated Net Income,
(iv)    increases in Adjusted Consolidated Working Capital for such period (other than any such increases arising from acquisitions by the Borrower and its Subsidiaries completed during such period or the application of purchase accounting),
(v)    payments by the Borrower and its Subsidiaries during such period in respect of long-term liabilities (and similar obligations with respect to post-retirement medical and heritage costs, pension plans and asset reclamation) of the Borrower and its Subsidiaries other than Indebtedness, to the extent not already deducted from Adjusted Consolidated Net Income,
(vi)    without duplication of amounts deducted pursuant to clause (x) below in prior fiscal years, the aggregate amount of cash consideration paid by the Borrower and its Subsidiaries (on a consolidated basis) in connection with Investments (including Permitted Acquisitions and excluding Investments in cash and Cash Equivalents) made during such period pursuant to Section 10.05 to the extent that such Investments were financed with internally generated cash flow of the Borrower and its Subsidiaries,
(vii)    the amount of dividends paid during such period (on a consolidated basis) by the Borrower and its Subsidiaries pursuant to Section 10.03, to the extent such dividends were financed with internally generated cash flow of the Borrower and its Subsidiaries,
(viii)    the aggregate amount of expenditures actually made by the Borrower and its Subsidiaries in cash during such period (including expenditures for the payment of financing fees) to the extent that such expenditures are not expensed during such period and are not deducted in calculating Adjusted Consolidated Net Income,
(ix)    the aggregate amount of any premium, make-whole or penalty payments actually paid in cash by the Borrower and its Subsidiaries during such period that are made in connection with any prepayment of Indebtedness to the extent that such payments are not deducted in calculating Adjusted Consolidated Net Income,
(x)    without duplication of amounts deducted from Excess Cash Flow in prior periods, the aggregate consideration required to be paid in cash by the Borrower or any of its Subsidiaries pursuant to binding contracts (the “Contract Consideration”) entered into prior to or during such period (including Permitted Acquisitions), Capital Expenditures or acquisitions of intellectual property to be consummated or made during the period, provided that to the extent the aggregate amount of internally generated cash actually utilized to finance such Permitted Acquisitions, Capital Expenditures or acquisitions of intellectual property during such period of four consecutive fiscal quarters is less than the Contract Consideration, the amount of such shortfall shall be added to the calculation of Excess Cash Flow at the end of such period of four consecutive fiscal quarters, and
(xi)    the amount of taxes (including penalties and interest) paid in cash or tax reserves set aside or payable (without duplication) in such period to the extent they exceed the amount of tax expense deducted in determining Adjusted Consolidated Net Income for such period.

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“Excess Cash Payment Date” shall mean the date occurring 125 days after the last day of each Fiscal Year of the Borrower (commencing with the Fiscal Year of the Borrower ending December 31, 2015).
“Excess Cash Payment Period” shall mean (i) with respect to the repayment required on the first Excess Cash Payment Date, the period from the Effective Date to the last day of the Borrower’s Fiscal Quarter ending December 31, 2015 (taken as one accounting period), and (ii) with respect to the repayment required on each successive Excess Cash Payment Date, the immediately preceding Fiscal Year of the Borrower.
“Excluded Contributions” shall mean the net cash proceeds received by the Borrower after the Effective Date from (a) contributions to its common equity capital and (b) the sale (other than to a Subsidiary of the Borrower) of Capital Stock (other than Disqualified Stock) of the Borrower, in each case designated as “Excluded Contributions” pursuant to an officer’s certificate delivered to the Administrative Agent.
“Excluded Information” shall have the meaning set forth in Section 2.15(d).
“Excluded Property” shall mean (i) Equity Interests entitled to vote (within the meaning of Treasury Regulation Section 1.956-2(c)(2)) in any direct Subsidiary of the Borrower or any Guarantor that is (a) a “controlled foreign corporation” (as defined in Section 957(a) of the Code), or (b) “disregarded as an entity separate from its owner” (as that phrase is used in Treasury Regulation Section 301.7701-3) if substantially all of such Subsidiary’s assets consists of Equity Interests of a Subsidiary that is such a “controlled foreign corporation” and cash or Cash Equivalents received from or otherwise reasonably related to the investment in such “controlled foreign corporation,” that are, in the case of (a) and (b) in excess of 65% of all of the issued and outstanding Equity Interests in such Subsidiary entitled to vote (within the meaning of Treasury Regulation Section 1.956-2(c)(2)); (ii) 100% of the Equity Interests in any other Subsidiary of the Borrower that is a “controlled foreign corporation” as defined above; (iii) 100% of the assets of any Subsidiary of the Borrower that is a “controlled foreign corporation”; (iv) all Excluded Real Property; (v) all Excluded TWCC Personal Property; (vi) all Excluded TWCC Equity and (vii) any right, title or interest in any permit, lease, capital lease, license, contract, agreement, account receivable, inventory or equipment held by the Borrower, any Guarantor or to which any of the Borrower or any Guarantor is a party or any of its right, title or interest thereunder to the extent, but only to the extent, that the creation of a security interest would, under the terms of such permit, lease, capital lease, license, contract, agreement, account receivable, inventory or equipment, or as a matter of law, result in a breach of the terms of, or constitute a default under, any permit, lease, capital lease, license, contract, agreement, account receivable, inventory or equipment held by the Borrower or any Guarantor or to which any of the Borrower or any Guarantor is a party or render void the security interest therein (other than to the extent that any such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions); provided, that immediately upon any such Subsidiary in clauses (i), (ii) or (iii) above no longer being a “controlled foreign corporation,” such Equity Interests or assets shall cease to be an “Excluded Property” and, provided, further, that immediately upon the ineffectiveness, lapse or termination of any such provision or upon obtaining a required consent to cure any potential breach, such right, title or interest in such permit, lease, capital lease, license, contract, agreement, account receivable, inventory or equipment shall cease to be an “Excluded Property.” For the avoidance of doubt, “Excluded Property” shall not include any right to receive any payment of money or the proceeds, substitutions or replacements of any Excluded Property (unless such proceeds, substitutions or replacements would constitute an Excluded Property).
“Excluded Real Property” shall mean all right, title and interest of the Borrower and its Subsidiaries in Real Property that is described on Schedule 1.01(c), which lists (a) certain properties that 

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are not suitable for mining and that the Borrower or a Subsidiary is considering selling or otherwise disposing of, and (b) Real Property that is subject to the Deed of Trust, Security Agreement, Fixture Filing, Assignment of As-Extracted Collateral and Assignment of Rents to Secure Performance dated as of June 26, 2008, of TWCC to Glenn Pinkerton, as trustee, for the benefit of NRGT, as amended from time to time. 
“Excluded Swap Obligation” shall mean with respect to any Guarantor, any Swap Obligation if, and to the extent that, and only for so long as, all or a portion of the guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, as applicable, such Swap Obligation (or any guarantee thereof) is or becomes illegal or is not permitted under the Commodity Exchange Act or any rule, regulation, or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure to constitute an “eligible contract participant,” as defined in the Commodity Exchange Act and the regulations thereunder, at the time the guarantee of (or grant of such security interest by, as applicable) such Guarantor becomes or would become effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one Swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Swaps for which such guarantee is or becomes illegal.
“Excluded Taxes” shall mean any of the following Taxes imposed on or with respect to any Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes; (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.13) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 5.04, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in a Loan or Commitment, or to such Lender immediately before it changed its lending office; (c) Taxes attributable to such Recipient’s failure to comply with Section 5.04(b); and (d) any U.S. federal withholding Taxes imposed pursuant to FATCA.
“Excluded TWCC Equity” shall mean all right, title and interest of Westmoreland Mining LLC in the Capital Stock of TWCC, which has been pledged to NRGT pursuant to the Pledge Agreement dated as of June 26, 2008 between Westmoreland Mining LLC and NRGT, as amended from time to time.
“Excluded TWCC Personal Property” shall mean all right, title and interest of TWCC in the property in which TWCC has granted a security interest to NRGT pursuant to the TWCC Security Agreement, which property shall not include the TWCC Supply Agreement Assets.
“Extended Term Loans” shall have the meaning provided in Section 2.16(a).
“Extending Term Lender” shall have the meaning provided in Section 2.16(a).
“Extension” shall have the meaning provided in Section 2.16(a).
“Extension Offer” shall have the meaning provided in Section 2.16(a).

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“Fair Market Value” shall mean the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving distress or necessity of either party, determined in good faith by (i) the board of directors of the Borrower for transactions valued at less than $50.0 million and (ii) an Independent Financial Advisor for transactions valued at, or in excess of $50.0 million.
“FATCA” shall mean Sections 1471 through 1474 of the Code, as of the Effective Date (and any amended or successor versions thereof that are substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Sections 1471(b)(1) of the Code.
“Federal Funds Rate” shall mean, for any period, a fluctuating interest rate equal for each day during such period to the weighted average of the rates on overnight Federal Funds transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three Federal Funds brokers of recognized standing selected by the Administrative Agent.
“Fees” shall mean all amounts payable pursuant to or referred to in Section 4.01.
“Financing Transaction” shall mean, collectively, (i) the consummation of the Refinancing (ii) the execution, delivery and performance by each Credit Party of the Credit Documents to which it is a party, the incurrence of Loans on the Initial Borrowing Date and the use of proceeds thereof and (iii) the payment of all fees and expenses in connection with the foregoing.
“First Lien Intercreditor Agreement” shall mean the Intercreditor Agreement, dated as of the Effective Date, among the Notes Representative, the Administrative Agent, certain Credit Parties party thereto and the other parties thereto, if any.
“Fiscal Quarter” shall mean, for any Fiscal Year, (i) the fiscal period commencing on January 1 of such Fiscal Year and ending on March 31 of such Fiscal Year, (ii) the fiscal period commencing on April 1 of such Fiscal Year and ending on June 30 of such Fiscal Year, (iii) the fiscal period commencing on July 1 of such Fiscal Year and ending on September 30 of such Fiscal Year and (iv) the fiscal period commencing on October 1 of such Fiscal Year and ending on December 31 of such Fiscal Year.
“Fiscal Year” shall mean the fiscal year of the Borrower and its Subsidiaries ending on December 31 of each calendar year.
“Fixed Charge Coverage Ratio” shall mean the ratio of the Consolidated EBITDA of the Borrower for any Test Period to the Fixed Charges of the Borrower for such Test Period.  If the Borrower or any of its Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or otherwise discharges any Indebtedness (other than (i) ordinary working capital borrowings and (ii) in the case of revolving credit borrowings or revolving advances under any Qualified Receivables Financing, in which case interest expense will be computed based upon the average daily balance of such Indebtedness during the applicable period) or issues, repurchases or redeems preferred equity or Disqualified Stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated and on or prior to the date on which the event for which the calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio will be calculated giving pro forma effect to such incurrence, assumption, guarantee, repayment, repurchase, redemption, defeasance or other discharge of Indebtedness, or such issuance, repurchase or redemption of preferred equity or Disqualified 

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Stock, and the use of the proceeds therefrom, as if the same had occurred at the beginning of the applicable Test Period.
In addition, for purposes of calculating the Fixed Charge Coverage Ratio, Permitted Acquisitions, dispositions, mergers, consolidations and discontinued operations (as determined in accordance with GAAP), and any related financing transactions, that the Borrower or any of its Subsidiaries has made after the Effective Date and during the applicable Test Period and on or prior to or simultaneously with the Calculation Date shall be calculated on a Pro Forma Basis assuming that all such Permitted Acquisitions, dispositions, mergers, consolidations and discontinued operations (and the change of any associated Fixed Charges and the change in Consolidated EBITDA resulting therefrom) had occurred on the first day of the Test Period, including any pro forma expense and cost reductions and other operating improvements that have occurred or are reasonably expected to occur within the next 12 months, in the reasonable judgment of the chief financial officer of the Borrower (regardless of whether these cost savings or operating improvements could then be reflected in pro forma financial statements in accordance with Regulation S-X promulgated under the Securities Act or any other regulation or policy of the SEC related thereto). Any Person that is a Subsidiary on the Calculation Date will be deemed to have been a Subsidiary at all times during the related Test Period, and if, since the beginning of the Test Period, any Person that subsequently became a Subsidiary or was merged with or into the Borrower or any of its other Subsidiaries since the beginning of such Test Period shall have made any acquisition, Investment, disposition, merger, consolidation or discontinued operation, in each case with respect to an operating unit of a business, that would have required adjustment pursuant to this definition, then the Fixed Charge Coverage Ratio shall be adjusted giving pro forma effect thereto for such period as if such Permitted Acquisition, disposition, discontinued operation, merger or consolidation had occurred at the beginning of the applicable Test Period. Any Person that is not a Subsidiary on the Calculation Date will be deemed not to have been a Subsidiary at any time during such Test Period.
For purposes of this definition, whenever pro forma effect is to be given to any transaction, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Borrower. If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest on such Indebtedness shall be calculated as if the rate in effect on the Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligations applicable to such Indebtedness if such Hedging Obligation has a remaining term in excess of 12 months). Interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting officer of the Borrower to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP. Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rate, shall be deemed to have been based upon the rate actually chosen, or, if none, then based upon such optional rate chosen as the Borrower may designate. Any such pro forma calculation may include adjustments appropriate, in the reasonable determination of the Borrower as set forth in an officers’ certificate, to reflect operating expense reductions reasonably expected to result from any acquisition or merger.
“Fixed Charges” shall mean the sum, without duplication, of:
(a)    the consolidated interest expense of the Borrower and its Subsidiaries for such period, whether paid or accrued, excluding amortization of debt issuance costs, deferred financing fees, the expensing of any bridge or other financing fees, any non-cash interest payments attributable to the movement in the mark-to-market valuation of Hedging Obligations or other derivative instruments pursuant to GAAP and any non-cash interest expense imputed on any convertible debt securities in accordance with FASB APB 14-1, but including original issue discount, non-cash interest payments, the interest component of any deferred payment obligations (classified as Indebtedness under this Agreement), the 

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interest component of all payments associated with Capitalized Lease Obligations and net of the effect of all payments made or received pursuant to Hedging Obligations in respect of interest rates; plus
(b)    the consolidated interest expense of the Borrower and its Subsidiaries that was capitalized during such period; plus
(c)    all cash dividend payments or other cash distributions on any series of preferred equity of the Borrower and its Subsidiaries and all other dividend payments or other distributions on the Disqualified Stock of the Borrower and its Subsidiaries.
“Fixtures” means goods that have become so related to particular Real Property that an interest in them arises under real property law.
“Foreign Lender” shall have the meaning provided in Section 5.04(b).
“Foreign Pension Plan” shall mean any plan, fund (including, without limitation, any superannuation fund) or other similar program established or maintained outside the United States by the Borrower or any one or more of its Subsidiaries for the benefit of employees of the Borrower or such Subsidiaries residing outside the United States, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and which plan is not subject to ERISA or the Code, and does not include the Canada Pension Plan or the Québec Pension Plan as maintained by the Government of Canada or the Province of Québec, respectively.
“Foreign Subsidiary” of any Person shall mean any Subsidiary of such Person that is not a Domestic Subsidiary.
“GAAP” shall mean generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect on the Effective Date.  Each accounting term used in this Agreement, unless otherwise defined therein, has the meaning assigned to it under GAAP applied consistently throughout the relevant period and relevant prior periods.  If there occurs a change in generally accepted accounting principles, and such change would require disclosure under GAAP in the financial statements of the Borrower and would cause a change in the method of calculation of any covenant contained in Section 10, or in standards or terms as determined in good faith by the Borrower (an “Accounting Change”), then the Borrower may elect, as evidenced by a written notice of the Borrower to the Administrative Agent, that such financial covenants, standards or terms shall be calculated as if such Accounting Change had not occurred. Any such election with respect to such Accounting Change may not thereafter be changed.
“GCA Collateral” shall mean all “Collateral” as defined in the Guaranty and Collateral Agreement.
“Governmental Authority” shall mean the government of the United States of America, any other nation or any political subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.
“GP” shall mean the Person that is the general partner of an MLP.

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“GP Equity Transfer” shall mean the sale, conveyance, transfer or other disposition of any Equity Interest in an MLP GP in connection with, or following, the initial public offering of an MLP GP.
“Guarantor” shall mean each Wholly-Owned Domestic Subsidiary of the Borrower that is party to the Guaranty and Collateral Agreement, unless and until such time as the respective Subsidiary is released from all of its obligations under the Guaranty and Collateral Agreement in accordance with the terms and provisions thereof.
“Guaranty” shall mean the guaranty of the Guarantors pursuant to Article II of the Guaranty and Collateral Agreement.
“Guaranty and Collateral Agreement” shall have the meaning provided in Section 6.08.
“Hazardous Materials” shall mean any chemicals, materials, wastes, pollutants, contaminants or substances in any form that are prohibited, limited or regulated pursuant to or could give rise to liability under any Environmental Law including any petroleum or petroleum products, radioactive materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation, polychlorinated biphenyls, and radon gas.
“Hedging Obligations” shall mean with respect to any specified Person, the obligations of such Person under: (a) interest rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest rate collar agreements or other similar agreements or arrangements; (b) any commodity forward contract, commodity swap agreement, commodity option agreement or other similar agreement or arrangement; (c) any foreign exchange contract, currency swap agreement, futures contract, option agreement or other similar agreement or arrangement; or (d) other agreements or arrangements designed to protect such Person against fluctuations in interest rates, commodity prices or currency exchange rates.
“ICTC Excluded Collateral” shall mean (a) certain mineral rights and sales contracts of WRI that may be assigned or transferred to Absaloka in connection with Indian Coal Tax Credit Transactions, and the proceeds and products of such mineral rights (including the coal mined pursuant to such mineral rights) and sales contracts and (b) 100% of the Equity Interests in Absaloka.
“Immaterial Subsidiary” shall mean any Wholly-Owned Domestic Subsidiary in existence on the Effective Date (excluding Absaloka, Westmoreland Canada, LLC and Westmoreland Risk Management, Inc.) and whose total assets, as of the end of the most recent month for which internal financial statements are available, are less than $1,000,000 and whose total revenues for the most recent twelve-month period for which internal financial statements are available do not exceed $1,000,000; provided that a Wholly-Owned Domestic Subsidiary will not be considered to be an Immaterial Subsidiary if it, directly or indirectly, guarantees or otherwise provides direct credit support for any Indebtedness of the Borrower or incurs any other Indebtedness other than intercompany indebtedness as permitted under this Agreement.
“Incremental Amendment” shall have the meaning provided in Section 2.14(d).
“Incremental Facility Closing Date” shall have the meaning provided in Section 2.14(d).
“Incremental Term Loans” shall have the meaning provided in Section 2.14(a).

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“Indebtedness” shall mean, as to any Person, any indebtedness of such Person, whether or not contingent, (a) for borrowed money; (b) evidenced by bonds, notes, debentures or similar instruments evidencing obligations for borrowed money or letters of credit other than obligations in respect of asset reclamation obligations; (c) representing Capitalized Lease Obligations; (d) representing the balance deferred and unpaid of the purchase price of any property or services due more than one year after such property is acquired or such services are completed (except trade accounts payable and accrued expenses arising in the ordinary course of business); (e) representing the net obligations under any Hedging Obligations in the event of an early termination; or (f) to the extent not otherwise included, with respect to the Borrower and its Subsidiaries, the amount then outstanding (i.e., advanced, and received by, and available for use by, the Borrower or any of its Subsidiaries) under any Receivables Financing (as set forth in the books and records of the Borrower or any Subsidiary and confirmed by the agent, trustee or other representative of the institution or group providing such Receivables Financing), if and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes (i) all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person); provided, however, that the amount of such Indebtedness shall be the lesser of (x) the Fair Market Value of such asset at such date of determination and (y) the amount of such Indebtedness of such other Person; and (ii) to the extent not otherwise included, the guarantee by the specified Person of any Indebtedness of any other Person. “Indebtedness” shall not include (a) with respect to any equity-linked security, the equity credit reflected on the most recent balance sheet of the Borrower, (b) obligations not incurred in connection with borrowed money, except to the extent expressly provided above, and without limitation shall not include (i) bid bonds, performance bonds, completion bonds, surety bonds, appeal bonds and other similar bonds, guarantees or obligations, (ii) purchase price adjustments, earn outs or similar obligations incurred in connection with the disposition of any assets, (iii) reimbursement obligations, (iv) indemnification obligations or (v) letters of credit, bank guarantees or similar instruments to secure any of the foregoing, to the extent such letters of credit, bank guarantees or similar instruments have not been drawn upon or, if drawn upon, not reimbursed thereafter within 60 days, (c) any liabilities of the Borrower or any Subsidiary to the Borrower or any Subsidiary, (d) Contingent Obligations and (e) obligations of an MLP GP of an MLP with respect to Indebtedness of such MLP arising by operation of law due to such MLP GP’s position as a general partner of such MLP (or corresponding obligations of any general partner of such MLP GP arising by operation of law due to such entity’s position as a general partner of such GP); provided, however, that such obligations or Indebtedness are non-recourse to the Borrower or any of its Subsidiaries (other than such MLP GP and, if such MLP GP is a limited partnership, the general partner of such MLP GP, provided that (x) the sole business of such general partner of such MLP GP is to act as the general partner of such MLP GP and engage in activities ancillary thereto and (y) and such general partner of such MLP GP owns no assets (other than (i) ownership interests in such MLP GP or in the MLP of which such MLP GP is the MLP GP, (ii) temporarily holding assets to be transferred or distributed in connection with a Permitted MLP Transfer or a Permitted GP Transfer or distributions from an MLP or an MLP GP and (iii) current assets sufficient to satisfy its ordinary course operating expenses)).
“Indemnified Person” shall have the meaning provided in Section 13.01(a).
“Indemnified Taxes” means Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Credit Party under any Credit Document.
“Independent Financial Advisor” shall mean an accounting, appraisal or investment banking firm of nationally recognized standing that is, in the reasonable judgment of the Borrower’s 

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board of directors, qualified to perform the task for which it has been engaged and disinterested and independent with respect to the Borrower and its Affiliates.
“Indian Coal Tax Credit” shall mean that certain federal income tax credit under Section 45 of the Code, generated by the sale of “Indian coal” (as defined in such section).
“Indian Coal Tax Credit Transaction” shall mean a transaction or arrangement between WRI and/or Absaloka, on the one hand, and any unaffiliated third party, on the other hand, in respect of which Indian Coal Tax Credits will be generated by WRI and/or Absaloka and in respect of which the Borrower and/or a Subsidiary will receive cash payments from the unaffiliated third party, Absaloka or both (regardless of the nature of the underlying obligation with respect to such payments).
“Initial Borrowing Date” shall mean the Effective Date, on which the initial Borrowing of Loans occurs.
“Initial First Lien Notes” shall mean the Borrower’s 8.75% senior secured notes due 2022.
“Initial Oxford Dropdown” shall mean (a) the contribution of 100% of the Equity Interests of Westmoreland Kemmerer Fee Coal Holdings, LLC (“WKFCH”), which will hold specified fee simple interests in coal mine reserves at the Kemmerer Mine (the “Kemmerer Reserves”), to Oxford MLP in exchange for 4,512,500 common units of Oxford MLP pursuant to the Contribution Agreement and (ii) the related entry into a coal mining lease whereby Westmoreland Kemmerer, Inc. will mine the Kemmerer Reserves in exchange for a royalty payment to WKFCH, which will be Oxford MLP’s wholly owned subsidiary following the consummation of the transactions described herein in each case on the terms described in the Offering Memorandum in all material respects.
“Insolvent” shall mean with respect to any Multiemployer Plan, the condition that such plan is insolvent within the meaning of Section 4245 of ERISA.
“Intercompany Loans” shall have the meaning provided in Section 10.05(vii).
“Intercompany Note” shall mean a promissory note evidencing Intercompany Loans, duly executed and delivered substantially in the form of Exhibit K (or such other form as shall be satisfactory to the Administrative Agent in its reasonable discretion), with blanks completed in conformity herewith.
“Intercreditor Agreements” shall mean the First Lien Intercreditor Agreement, the ABL Intercreditor Agreement and each other intercreditor agreement entered into by the Administrative Agent pursuant to this Agreement.
“Interest Determination Date” shall mean, with respect to any LIBOR Loan, the second Business Day prior to the commencement of any Interest Period relating to such LIBOR Loan.
“Interest Period” shall have the meaning provided in Section 2.09.
“Interest Rate Protection Agreement” shall mean any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedging agreement or other similar agreement or arrangement.

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“Investments” shall have the meaning provided in Section 10.05.
“IP Rights” shall have the meaning set forth in Section 8.18.
“Judgment Currency” shall have the meaning set forth in Section 13.19.
“Junior Debt” shall mean any Indebtedness (other than revolving Indebtedness) of the Borrower or its Subsidiaries (i) which is unsecured or is contractually subordinated in right of payment to the Obligations or (ii) which is secured by the Collateral on a junior lien basis.
“Judgment Currency Conversion Date” shall have the meaning set forth in Section 13.19.
“Kemmerer Mine” means Chevron Mining, Inc.’s Kemmerer surface coal mine which the Borrower acquired on January 31, 2012.
“Kemmerer Reserves” shall have the meaning provided in the definition of “Initial Oxford Dropdown.”
“Lead Arrangers” shall mean BMO Capital Markets Corp. and Deutsche Bank Securities Inc. 
“Leaseholds” of any Person shall mean all the right, title and interest of such Person as lessee or licensee in, to and under leases or licenses of land, improvements and/or Fixtures.
“Lender” shall mean each financial institution listed on Schedule 1.01(a), as well as any Person that becomes a “Lender” hereunder pursuant to Section 2.13, 13.04(b) or an Incremental Amendment.
“Lender Default” shall mean, as to any Lender, (i) the failure of such Lender to make available its portion of any Borrowing within two Business Days after the date on which such portion of any Borrowing or payment is required to be made unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination in good faith that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, (ii) such Lender having, or having a direct or indirect parent company that has, (x) become the subject of a proceeding under the Bankruptcy Code or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding, (y) had appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such appointment of, a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, (iii) such Lender having notified either the Borrower, the Administrative Agent, any other Lender and/or any Credit Party (x) that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect or (y) of the events described in preceding clause (ii) immediately above or (iv) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder; provided that, no Lender Default shall be deemed to have occurred solely by virtue of the ownership or acquisition of an equity interest in such Lender or a parent company thereof by a Governmental Authority or an instrumentality thereof so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such 

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Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender Default has occurred under any one or more of clauses (i) through (iv) immediately above, and of the effective date of such status, shall be conclusive and binding absent manifest error, and the applicable Lender shall be deemed to be a Defaulting Lender as of the date established therefor by the Administrative Agent in a written notice of such determination, which shall be delivered by the Administrative Agent to the Borrower and each other Lender promptly following such determination.
“LIBO Rate” shall mean, with respect to any Borrowing of LIBOR Loans for any Interest Period, the higher of (i) (x) the rate per annum representing the London interbank offered rate as administered by the ICE Benchmark Administration (or on any successor to or substitute for such administration, or any successor to or substitute for such service, providing rate quotations comparable to those currently administered by the ICE Benchmark Administration, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Eurodollar Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period or (y) if the rate referred to in clause (x) is not available at such time for any reason, then the rate at which dollar deposits of the approximate amount of the Loan being made and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days before the beginning of such Interest Period and (ii) 1.00% per annum.
“LIBOR Loan” shall mean each Loan designated as such by the Borrower at the time of the incurrence thereof or conversion thereto.
“Lien” shall mean any mortgage, lien, pledge, charge, encumbrance of any kind, whether or not filed, recorded or otherwise perfected under applicable law, (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the UCC (or equivalent statutes) of any jurisdiction, except in connection with any Qualified Receivables Financing.
“Loan” shall mean each Term Loan (including any Incremental Term Loan).
“Majority Lenders” of any Tranche shall mean those Non-Defaulting Lenders which would constitute the Required Lenders under, and as defined in, this Agreement if all outstanding Obligations of the other Tranches under this Agreement were repaid in full.
“Make-Whole Premium” shall mean, with respect to any principal amount of Term Loans subject to a Repricing Event during the period commencing on the Effective Date through the date that is the first anniversary of the Effective Date (the “Make-Whole Termination Date”), the sum of (i) the present value on the date of such Repricing Event, computed using a discount rate equal to the Treasury Rate plus 50 basis points, of all interest that would accrue on the applicable Term Loans from the date of such Repricing Event to the Make-Whole Termination Date computed using the LIBO Rate for an Interest Period of three months commencing on and in effect on the date of such Repricing Event plus the Applicable Margin in effect on the date of such Repricing Event for Term Loans that are LIBOR Loans and (ii) a premium of 1.00% of the aggregate principal amount of such Term Loans.
“Margin Stock” shall have the meaning provided in Regulation U.

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“Material Adverse Effect” shall mean a material adverse effect on the business, operations, property, assets, liabilities or financial condition of the Borrower and its Subsidiaries taken as a whole that would, individually or in the aggregate, affect the rights or remedies of the Lenders, the Administrative Agent or the Collateral Agent hereunder or under any other Credit Document or the ability of the Credit Parties, taken as a whole, to perform their obligations to the Lenders, the Administrative Agent or the Collateral Agent hereunder or under any other Credit Document.
“Material Subsidiary” shall mean any Subsidiary that is not an Immaterial Subsidiary; provided that each Guarantor shall be deemed to be a Material Subsidiary.
“Maturity Date” shall mean the sixth anniversary of the Initial Borrowing Date.
“Maximum Rate” shall have the meaning provided in Section 13.18.
“Mineral Rights Mortgage” shall mean, individually or collectively as the context may indicate, those mortgages, leasehold mortgages, deeds of trust, leasehold deeds of trust, deeds to secure debt, leasehold deeds to secure debt, debentures and comparable real estate Lien documents delivered on or after the Initial Borrowing Date to the Administrative Agent with respect to any Mortgaged Coal Property.
“Minimum Borrowing Amount” shall mean $5,000,000.
“Minimum Extension Condition” shall have the meaning provided in Section 2.16(c).
“Minimum Tranche Amount” shall have the meaning provided in Section 2.16(c).
“MLP” shall mean any master limited partnership, including Oxford MLP.
“MLP Asset Transfer” shall mean the direct or indirect sale, conveyance, transfer or other disposition of property or assets (including any Equity Interests of any Person) by the Borrower or any Guarantor to one or more MLPs or such MLP’s or MLPs’ Subsidiaries.
“MLP Equity Transfer” shall mean the sale, conveyance, transfer or other disposition of any Equity Interest in an MLP (including by means of a dividend or other distribution of equity).
“MLP GP” means a GP that is a general partner of an MLP, including Oxford GP.
“Moody’s” shall mean Moody’s Investors Service, Inc.
“Mortgage” shall mean a mortgage, leasehold mortgage, deed of trust, leasehold deed of trust, deed to secure debt, leasehold deed to secure debt, debenture or similar document under which, in accordance with, and subject to, the terms of this Agreement, any Lien on Real Property owned or leased by the Borrower or any Guarantor is granted to secure any Obligations, or under which rights or remedies with respect to any such Liens are governed; provided that a Mineral Rights Mortgage shall constitute a Mortgage for purposes of this definition.
“Mortgage Policy” shall mean a Lender’s title insurance policy (Form 2006) or its equivalent.
“Mortgaged Coal Property” shall mean, collectively, the leasehold or other rights of the Borrower or any Guarantor, as applicable, to mine or otherwise extract coal on certain Real Property that 

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are mortgaged to the Administrative Agent on the Initial Borrowing Date or from time to time thereafter in accordance with, and subject to, the terms of this Agreement pursuant to a Mineral Rights Mortgage, it being understood that some parcels of Real Property may constitute both Mortgaged Coal Property and Mortgaged Property and that none of the ICTC Excluded Collateral or Excluded Property shall be deemed to be Mortgaged Coal Property.
“Mortgaged Coal Property Support Documents” shall mean, for each Mortgaged Coal Property, (i) the title searches pertaining thereto, if determined to be necessary by the Administrative Agent, (ii) such lessor's estoppel, waiver and consent certificates as the Administrative Agent may reasonably require and the Borrower is able to obtain using its commercially reasonable efforts (which shall not require the expenditure of cash or the making of any material concessions under the relevant lease) and subordination, nondisturbance and attornment agreements as the Administrative Agent may reasonably require and the Borrower is able to obtain using its commercially reasonable efforts (which shall not require the expenditure of cash or the making of any material concessions under the relevant lease), (iii) such opinions of local counsel with respect to the Mineral Rights Mortgages, as applicable, as the Administrative Agent may reasonably require, and (iv) such other documentation as the Administrative Agent may reasonably require, in each case as shall be in form and substance reasonably acceptable to the Administrative Agent.
“Mortgaged Property” shall mean any Real Property owned or leased by the Borrower or any Guarantor that is encumbered (or required to be encumbered) by a Mortgage pursuant to the terms hereof, it being understood that Mortgaged Property shall include Mortgaged Coal Property, but shall not include any Excluded Real Property or ICTC Excluded Collateral.
“Multiemployer Plan” shall mean any multiemployer plan as defined in Section 4001(a)(3) of ERISA, to which contributions are or within the immediately preceding five year period have been made (or have been required to be made) by the Borrower or any ERISA Affiliate.
“NAIC” shall mean the National Association of Insurance Commissioners.
“Net Cash Proceeds” shall mean for any event requiring a reduction of the repayment of Term Loans pursuant to Section 5.02, the gross cash proceeds (including any cash received by way of deferred payment pursuant to a promissory note, receivable or otherwise, but only as and when received) received from such event, net of reasonable transaction costs (including, as applicable, any underwriting, brokerage or other customary commissions and reasonable legal, advisory and other fees and expenses associated therewith) received from any such event; provided that, in the case of a Permitted MLP Transfer, Net Cash Proceeds shall not include any amounts required for the repayment of the ABL Facility in accordance with the terms thereof.
“Net Income” means, with respect to any Person for any period, the net income (loss) attributable to such Person for such period, determined in accordance with GAAP and before any reduction in respect of dividends on preferred interests.
“Net Sale Proceeds” shall mean for any Asset Sale, (a) the aggregate cash proceeds received by the Borrower or any Subsidiary, less (b) the sum of (i) the amount if any, of all taxes paid or estimated to be payable in connection with such Asset Sale, in each case, after taking into account any available tax credits or deductions and any tax sharing arrangements (ii) the direct costs relating to such Asset Sale, including, without limitation, title and recording tax expenses, legal, accounting and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Asset Sale; (iii) the amount of any reasonable reserve established in accordance with GAAP against any liabilities (other than any taxes deducted pursuant to clause (i) immediately above) (x) associated with the 

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assets that are the subject to such Asset Sale and (y) retained by the Borrower or any of its Subsidiaries (including against any adjustment in the sale price of such asset or assets or liabilities associated with any relevant Asset Sale and retained by the Borrower or any Subsidiary, as the case may be, after such Asset Sale, including pensions and other post‐employment benefit liabilities, liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale, all as reflected in an officer’s certificate delivered to the Administrative Agent), provided that the amount of any subsequent reduction of such reserve (other than in connection with a payment in respect of any such liability) shall be deemed to be Net Sale Proceeds of such Asset Sale occurring on the date of such reduction, provided further, that if any consideration for the Asset Sale is required to be held in escrow pending determination of whether or not a purchase price adjustment will be made, such consideration (or any portion thereof) shall become Net Sale Proceeds only at such time as it is released to the Borrower or any of its Subsidiaries from escrow; (iv) amounts required to be paid to any Person (other than the Borrower or any Subsidiary) owning a beneficial interest in the assets subject to the Asset Sale; (v) the amount of any Indebtedness (other than Indebtedness of the Lenders pursuant to this Agreement) secured by a Lien on the assets that are the subject of such Asset Sale to the extent that the instrument creating or evidencing such Indebtedness requires that such Indebtedness be repaid upon consummation of such Asset Sale, (vi) the amount of any proceeds of such Asset Sale that the Borrower or any of its Subsidiaries has reinvested (or intends to reinvest within the Reinvestment Period or has entered into a binding commitment prior to the last day of the Reinvestment Period to reinvest) in the business of the Borrower or any of its Material Subsidiaries, provided that any portion of such proceeds that has not been so reinvested within such Reinvestment Period (with respect to such Prepayment Event, the “Deferred Net Sale Proceeds”) shall, unless the Borrower or a Subsidiary has entered into a binding commitment prior to the last day of such Reinvestment Period to reinvest such proceeds, (x) be deemed to be Net Sale Proceeds of an Asset Sale occurring on the last day of such Reinvestment Period or, if later, 180 days after the date the Borrower or such Material Subsidiary has entered into such binding commitment, as applicable (such last day or 180th day, as applicable, the “Deferred Net Sale Proceeds Payment Date”), and (y) be applied to the repayment of Loans in accordance with Section 5.02(c), (vii) in the case of any Asset Sale by a non-wholly-owned U.S. Subsidiary, the pro rata portion of the Net Sale Proceeds thereof (calculated without regard to this clause (vii)) attributable to minority interests and not available for distribution to or for the account of the Borrower or a wholly-owned U.S. Subsidiary as a result thereof, (viii) and with respect solely to Asset Sales of Equity Interests in Absaloka in connection with an Indian Coal Tax Credit Transaction, such amounts as the purchaser of the Equity Interests requires that (a) Absaloka retain (if Absaloka issues the Equity Interests to such purchaser) or (b) WRI contribute to Absaloka (if WRI sells the Equity Interests to such purchaser) to ensure in either case that Absaloka complies with its obligations under its governing documents, including those with respect to cash distributions; and (ix) reasonable and customary fees paid by the Borrower or any of its Subsidiaries in connection with any of the foregoing, in each case only to the extent not already deducted in arriving at the amount referred to in clause (a) above.
“Non-Cash Charges” shall mean, without duplication, (a) losses on non-ordinary course asset sales, disposals or abandonments, (b) any impairment charge or asset write-off related to intangible assets (including goodwill), long-lived assets, and investments in debt and equity securities pursuant to GAAP, (c) all losses from investments recorded using the equity method, (d) stock-based awards compensation expense, including any such charges arising from stock options, restricted stock grants or other equity incentive grants, and any cash compensation charges associated with the rollover or acceleration of stock-based awards or payment of stock options in connection with the Acquisition, and (e) other non-cash charges (provided that (x) if any non-cash charges referred to in this clause (e) represent an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from Consolidated EBITDA to such extent and (y) the amortization of a prepaid current asset item that was paid in a prior period shall not be included in Non-Cash Charges).

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“Non-Defaulting Lender” and shall mean and include each Lender other than a Defaulting Lender.
“Non-Recourse Debt” shall mean Indebtedness (i) as to which neither the Borrower nor any of its Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness) other than a pledge of the Equity Interests of any Unrestricted Subsidiaries, (b) is directly or indirectly liable (as a guarantor or otherwise) other than by virtue of a pledge of the Equity Interests of any Unrestricted Subsidiaries, or (c) constitutes the lender; and (ii) no default with respect to which (including any rights that the holders of the Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would permit, upon notice, lapse of time or both, any holder of any other Indebtedness (other than the Initial First Lien Notes) of the Borrower or any of its Subsidiaries to declare a default on such other Indebtedness or cause the payment of the Indebtedness to be accelerated or payable prior to its stated maturity.
“Non-Wholly Owned Subsidiary” shall mean, as to any Person, each Subsidiary of such Person that is not a Wholly-Owned Subsidiary of such Person.
“Note” shall have the meaning provided in Section 2.05(a).
“Notes Representative” shall mean the collateral agent appointed by and acting as the Collateral Agent pursuant to the documentation governing the Permitted First Lien Notes.
“Notice of Borrowing” shall have the meaning provided in Section 2.03(a).
“Notice of Conversion/Continuation” shall have the meaning provided in Section 2.06.
“Notice Office” shall mean the office of the Administrative Agent located at 115 S. LaSalle Street, 25th Floor West, Chicago, IL 60603, Attention: Thomas Hasenauer (Corporate Banking) or such other office or person as the Administrative Agent may hereafter designate in writing as such to the other parties hereto.
“NRGT” means NRG Texas Power LLC, a Delaware limited liability company. 
“Obligation Currency” shall have the meaning provided in Section 13.19.
“Obligations” shall mean all amounts owing to the Administrative Agent, the Collateral Agent or any Lender pursuant to the terms of this Agreement or any other Credit Document (including all interest that accrues after the commencement of any case or proceeding in bankruptcy after the insolvency of, or for the reorganization of the Borrower or any of its Subsidiaries, whether or not allowed in such case or proceeding).
“Offering Memorandum” shall mean the final offering memorandum, dated December 8, 2014, relating to the offering of the Initial First Lien Notes.
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan or Credit Document).

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“Other Hedging Agreements” shall mean any foreign exchange contracts, currency swap agreements, commodity agreements or other similar arrangements, or arrangements designed to protect against fluctuations in currency values or commodity prices.
“Other Taxes” shall mean all present or future stamp, court, documentary, intangible, recording, filing or similar taxes or any other excise or property taxes, charges or similar levies arising from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.13).
“Oxford GP” shall mean Oxford Resources GP, LLC a Delaware limited liability company and the general partner of Oxford MLP, which is expected to be renamed Westmoreland Resource GP, LLC following closing of the Oxford Acquisition.
“Oxford MLP” shall mean Oxford Resource Partners, LP, a Delaware limited partnership, which is expected to be renamed Westmoreland Resource Partners, LP following the closing of the Oxford Acquisition.
“Participant Register” shall have the meaning provided in Section 13.04(a).
“Patriot Act” shall have the meaning provided in Section 13.17.
“Payment Office” shall mean the office of the Administrative Agent located at 115 S. LaSalle Street, 25th Floor West, Chicago, IL 60603, Attention: Tihana Mesic (Agency Services) or such other office as the Administrative Agent may hereafter designate in writing as such to the other parties hereto.
“PBGC” shall mean the U.S. Pension Benefit Guaranty Corporation.
“Permitted ABL Indebtedness” shall have the meaning provided in Section 10.09.
“Permitted Acquired Debt” shall mean Indebtedness acquired by the Borrower or a Subsidiary of the Borrower pursuant to a Permitted Acquisition or other permitted Investment (or Indebtedness assumed at the time of a Permitted Acquisition or other permitted Investment of an asset securing such Indebtedness) and any Permitted Refinancing Indebtedness in respect thereof, provided that (x) such Indebtedness was not incurred in connection with, or in anticipation or contemplation of, such Permitted Acquisition or other permitted Investment and (y) the aggregate principal amount of all such Indebtedness acquired by all Subsidiaries of the Borrower that are not Guarantors shall not exceed the greater of (x) $15,000,000 and (y) 1.0% of Consolidated Total Assets at any one time outstanding.
“Permitted Acquisition” shall mean the acquisition by the Borrower or any Subsidiary of the Borrower of an Acquired Entity or Business, provided that (in each case) (A) in the case of the acquisition of 100% of the Equity Interests of any Acquired Entity or Business (including by way of merger), such Acquired Entity or Business shall own no Equity Interests of any other Person unless either (x) such other Person is a Wholly-Owned Subsidiary of such Acquired Entity or Business or (y) if such Acquired Entity or Business owns Equity Interests in any other Person that is not a Wholly Owned Subsidiary of such Acquired Entity or Business, (1) such other Person shall not have been created or established in contemplation of, or for purposes of consummating, such Permitted Acquisition and (2) such Acquired Entity or Business and/or its Wholly-Owned Subsidiaries own at least 70% of the Consolidated Total Assets of such Acquired Entity or Business and its subsidiaries and joint ventures (for purposes of such 

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determination, excluding the value of the Equity Interests of Persons that are not Wholly-Owned Subsidiaries and which are held by such Acquired Entity or Business and its Wholly-Owned Subsidiaries), (B) the Acquired Entity or Business acquired pursuant to the respective Permitted Acquisition is in a business permitted by Section 10.08, (C) all requirements of Section 9.11 applicable to Permitted Acquisitions are satisfied, (D) both immediately before and after giving effect to such acquisition, no Default or Event of Default shall have occurred and be continuing and (E) the aggregate Fair Market Value (as determined in good faith by the Borrower) of all Investments funded or financed in any Persons that do not become Guarantors in connection with all such acquisitions following the Effective Date in reliance on Section 10.05(xi) shall not exceed the greater of (x) $15.0 million and (y) 1.0% of Consolidated Total Assets (it being understood that additional Investments in Persons that are not Credit Parties may be made in connection with Permitted Acquisitions in reliance on any exception in Section 10.05 other than clause (xi) thereof).  Notwithstanding anything to the contrary contained in the immediately preceding sentence, an acquisition that does not otherwise meet the requirements set forth above in the definition of “Permitted Acquisition” shall constitute a Permitted Acquisition if, and to the extent, the Required Lenders agree in writing, prior to the consummation thereof, that such acquisition shall constitute a Permitted Acquisition for purposes of this Agreement.
“Permitted Business” shall have the meaning provided in Section 10.08.
“Permitted Encumbrance” shall mean, with respect to any Mortgaged Property, (i) such exceptions to title as are set forth in the Mortgage Policy delivered with respect thereto, all of which exceptions with respect to Mortgaged Properties located in the United States must be acceptable to the Administrative Agent in its reasonable discretion and (ii) Liens permitted by clauses (i), (ii), (v), (viii), (xi), (xxiv) and (xxvi) of Section 10.01.
“Permitted First Lien Notes” shall mean secured Indebtedness incurred by the Borrower and issued under an indenture or similar governing instrument in a registered public offering or a Rule 144A or other private placement transaction or other transaction not subject to registration under the Securities Act in the form of one or more series of first lien secured notes permitted under the indenture governing the Initial First Lien Notes; provided that (i) such Indebtedness may only be secured by Collateral on a first lien, pari passu basis to the Obligations, and shall not be secured by any property or assets of the Borrower or any of its Subsidiaries other than the Collateral; (ii) such Indebtedness does not mature or have scheduled amortization or other required payments of principal prior to the date that is one year after the Maturity Date at the time such Indebtedness is incurred (except with respect to customary offers to purchase upon a change of control or with the excess proceeds from assets sales), (iii) the security agreements relating to such Indebtedness are substantially the same as the Security Documents (with such differences as are reasonably satisfactory to the Administrative Agent), (iv) such Indebtedness is not guaranteed by any Person other than the Credit Parties, (v) such Indebtedness and the indenture or other governing instrument applicable thereto does not contain covenants, events of default, or other terms and conditions that, when taken as a whole, are materially more restrictive to the Credit Parties than the terms of this Agreement (it being understood that the limitations on indebtedness covenant contained therein may take into account permanent repayments of Indebtedness which have occurred after the Effective Date), and (vi) the holders of such Indebtedness pursuant to the indenture or other instrument governing such Indebtedness (or a trustee, agent or other representative on their behalf) shall have become party to an intercreditor agreement with the Collateral Agent on terms reasonably satisfactory to the Collateral Agent and the Administrative Agent.
“Permitted GP Transfer” shall mean any GP Equity Transfer that complies with Section 10.02. 
“Permitted Liens” shall have the meaning provided in Section 10.01.

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“Permitted MLP Asset Transfer” shall mean any MLP Asset Transfer that complies with Section 10.02(iv).
“Permitted MLP Equity Transfer” shall mean any MLP Equity Transfer that complies with Section 10.02.
“Permitted MLP Transfer” shall mean, collectively, any Permitted MLP Asset Transfer and any Permitted MLP Equity Transfer.
“Permitted Refinancing Indebtedness” shall mean any Indebtedness of the Borrower or any of its Subsidiaries issued or given in exchange for, or the net proceeds of which are used to, extend, refinance, renew, replace, refund, defease or discharge any Loans hereunder, Indebtedness listed on Schedule 10.04, Permitted Acquired Debt, or any Indebtedness issued to so extend, refinance, renew, replace, substitute or refund any such Indebtedness, so long as (a) such Indebtedness has a Weighted Average Life to Maturity greater than or equal to the Weighted Average Life to Maturity of the Indebtedness being extended, refinanced, renewed, replaced, refunded, defeased or discharged, (b) such extension, refinancing, renewal, replacement refunding, defeasing or discharge does not (i) increase the amount of such Indebtedness outstanding immediately prior to such extension, refinancing, renewal, replacement, refunding, defeasing or discharge, plus an amount equal to the unpaid interest, premium or other payment thereon pursuant to the terms thereof plus any other reasonable fees and expenses of any Credit Party incurred in connection with such extension, refinancing, renewal, replacement, refunding, defeasing or discharge unless (for the avoidance of doubt) such increase is otherwise expressly permitted under a separate subclause of Section 10.04 or (ii) add guarantors, obligors or security from that which applied to such Indebtedness being extended, refinanced, renewed, replacement or refunding, and (c) such Indebtedness has substantially the same subordination provisions (or subordination provisions at least as favorable to the Lenders), if any, as applied to the Indebtedness being extended, renewed, refinanced, replaced, refunded, defeased or discharged.
“Permitted Sale Leaseback Transactions” shall mean any Sale Leaseback, (i) listed on Schedule 1.01(d), (ii) entered into with respect to any worn-out, inefficient or broken equipment with a repairer or restorer of equipment for the purpose of repairing or restoring such equipment and thereafter renting or leasing such equipment to use for substantially the same purpose or purposes, (iii) entered into with respect to equipment purchases in cash for the purpose of subsequently transferring title of such equipment back to the initial seller of said equipment and thereafter entering into a capital lease with such seller for such equipment within 45 days after the purchase thereof or (iv) other Sale Leaseback in an aggregate amount not to exceed $50,000,000 at any time.
“Permitted Second Lien Notes” shall mean secured Indebtedness incurred by the Borrower and issued under an indenture or similar governing instrument in a registered public offering or a Rule 144A or other private placement transaction or other transaction not subject to registration under the Securities Act in the form of one or more series of second lien secured notes; provided that (i) such Indebtedness may only be secured by Collateral on a second lien, subordinated basis to the Obligations, and shall not be secured by any property or assets of the Borrower or any of its Subsidiaries other than the Collateral; (ii) such Indebtedness does not mature or have scheduled amortization or other required payments of principal prior to the date that is one year after the Maturity Date at the time such Indebtedness is incurred, (iii) the security agreements relating to such Indebtedness are substantially the same as the Security Documents (with such differences as are reasonably satisfactory to the Administrative Agent), (iv) such Indebtedness is not guaranteed by any Person other than the Credit Parties, (v) such Indebtedness and the indenture or other governing instrument applicable thereto does not contain covenants, events of default, or other terms and conditions that, when taken as a whole, are materially more restrictive to the Credit Parties than the terms of this Agreement (it being understood that the limitations 

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on indebtedness covenant contained therein may take into account permanent repayments of Indebtedness which have occurred after the Effective Date), and (vi) the holders of such Indebtedness pursuant to the indenture or other instrument governing such Indebtedness (or a trustee, agent or other representative on their behalf) shall have become party to an intercreditor agreement with the Collateral Agent on terms satisfactory to the Collateral Agent and the Administrative Agent.
“Permitted Unsecured Notes” shall mean senior unsecured or unsecured subordinated Indebtedness incurred by the Borrower and issued under an indenture or similar governing instrument in a registered public offering or a Rule 144A or other private placement transaction or other transaction not subject to registration under the Securities Act in the form of one or more series of senior unsecured or unsecured subordinated notes; provided that (i) such Indebtedness does not mature or have scheduled amortization or other required payments of principal prior to the date that is one year after the Maturity Date at the time such Indebtedness is incurred, (ii) such Indebtedness is not guaranteed by any Person other than the Credit Parties, (iii) such Indebtedness and the indenture or other governing instrument applicable thereto does not contain covenants, events of default, or other terms and conditions that, when taken as a whole, are materially more restrictive to the Credit Parties than the terms of this Agreement (it being understood that the limitations on indebtedness covenant contained therein may take into account permanent repayments of Indebtedness which have occurred after the Effective Date) and (iv) such Indebtedness is not secured by any Lien on any property or assets of the Borrower or any of its Subsidiaries.
“Person” shall mean any individual, partnership, joint venture, firm, corporation, association, limited liability company, trust or other enterprise or any Governmental Authority.
“Plan” shall mean an “employee pension benefit plan” as defined in Section 3(2) of ERISA (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA maintained or contributed to by the Borrower or with respect to which the Borrower or an ERISA Affiliate has any actual or contingent liability.
“PPSA” shall mean the Personal Property Security Act (British Columbia) (or any successor statute) or similar legislation of any other Canadian jurisdiction, including the Civil Code of Québec, the laws of which are required by such legislation to be applied in connection with the issue, perfection, enforcement, opposability, priority, validity or effect of security interests in the Collateral.
“Prime Lending Rate” shall mean the rate of interest in effect for such day as publicly announced from time to time by the Administrative Agent as its “prime rate”.  The Prime Lending Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer by the Administrative Agent, which may make commercial loans or other loans at rates of interest at, above or below the Prime Lending Rate.
“Pro Forma Basis” shall mean, in connection with any calculation of compliance with any covenant or financial term, the calculation thereof after giving effect on a pro forma basis to (x) the incurrence of any Indebtedness (other than revolving Indebtedness, except to the extent same is incurred to refinance other outstanding Indebtedness or to finance a Permitted Acquisition) after the first day of the relevant Calculation Period or Test Period, as the case may be, as if such Indebtedness had been incurred (and the proceeds thereof applied) on the first day of such Test Period or Calculation Period, as the case may be and (y) the permanent repayment of any Indebtedness (other than revolving Indebtedness, except to the extent accompanied by a corresponding permanent commitment reduction) after the first day of the relevant Test Period or Calculation Period, as the case may be, as if such Indebtedness had been retired or repaid on the first day of such Test Period or Calculation Period, as the case may be, with the following rules to apply in connection therewith:

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(i)    all Indebtedness (x) (other than revolving Indebtedness, except to the extent same is incurred to refinance other outstanding Indebtedness or to finance Permitted Acquisitions) incurred or issued after the first day of the relevant Test Period or Calculation Period (whether incurred to finance a Permitted Acquisition, to refinance Indebtedness or otherwise) shall be deemed to have been incurred or issued (and the proceeds thereof applied) on the first day of such Test Period or Calculation Period, as the case may be, and remain outstanding through the date of determination and (y) (other than revolving Indebtedness, except to the extent accompanied by a corresponding permanent commitment reduction) permanently retired or redeemed after the first day of the relevant Test Period or Calculation Period, as the case may be, shall be deemed to have been retired or redeemed on the first day of such Test Period or Calculation Period, as the case may be, and remain retired through the date of determination;
(ii)    all Indebtedness assumed to be outstanding pursuant to preceding clause (i) shall be deemed to have borne interest at (x) the rate applicable thereto, in the case of fixed rate indebtedness, or (y) the rates which would have been applicable thereto during the respective period when same was deemed outstanding, in the case of floating rate Indebtedness (although interest expense with respect to any Indebtedness for periods while same was actually outstanding during the respective period shall be calculated using the actual rates applicable thereto while same was actually outstanding); provided that all Indebtedness (whether actually outstanding or deemed outstanding) bearing interest at a floating rate of interest shall be tested on the basis of the rates applicable at the time the determination is made pursuant to said provisions; and
(iii)    in making any determination of Consolidated EBITDA on a Pro Forma Basis, pro forma effect shall be given to any Permitted Acquisition if effected during the respective Calculation Period or Test Period (or thereafter, for purposes of determinations pursuant to the definition of “Permitted Acquisition” and the definition of “Applicable Margin” only) as if same had occurred on the first day of the respective Calculation Period or Test Period, as the case may be, taking into account, in the case of any Permitted Acquisition, factually supportable and identifiable cost savings and expenses that would otherwise be accounted for as an adjustment pursuant to Article 11 of Regulation S-X under the Securities Act, as if such cost savings or expenses were realized on the first day of the respective period but without taking into account any pro forma cost savings and expenses.
“Projections” shall mean the projections that are contained in the Confidential Information Memorandum and that were prepared by or on behalf of the Borrower in connection with the Transaction and delivered to the Administrative Agent and the Lenders prior to the Initial Borrowing Date.
“Purchase Money Note” shall mean a promissory note of a Receivables Subsidiary evidencing a line of credit, which may be irrevocable, from the Borrower or any Subsidiary of the Borrower to a Receivables Subsidiary in connection with a Qualified Receivables Financing, which note is intended to finance that portion of the purchase price that is not paid by cash or a contribution of equity.
 “Qualified Equity Interest” shall mean any Equity Interest that does not constitute Disqualified Stock.
“Qualified Receivables Financing” shall mean any Receivables Financing of a Receivables Subsidiary that meets the following conditions:
(1)the board of directors of the Borrower will have determined in good faith that such Qualified Receivables Financing (including financing terms, covenants, termination events 

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and other provisions) is in the aggregate economically fair and reasonable to the Borrower and the Receivables Subsidiary;
(2)all sales of accounts receivable and related assets to the Receivables Subsidiary are made at Fair Market Value (as determined in good faith by the Borrower); and
(3)the financing terms, covenants, termination events and other provisions thereof will be market terms (as determined in good faith by the Borrower) and may include Standard Securitization Undertakings.
The grant of a security interest in any accounts receivable of the Borrower or any of its Subsidiaries (other than a Receivables Subsidiary) to secure the Obligations will not be deemed a Qualified Receivables Financing.
“Quarterly Payment Date” shall mean each March 31st, June 30th, September 30th and December 31st, commencing with March 31, 2015.
“Real Property” of any Person shall mean all the right, title and interest of such Person in and to land, improvements and Fixtures, including Leaseholds.
“Receivables Financing” shall mean any transaction or series of transactions that may be entered into by the Borrower or any of its Subsidiaries (including its Unrestricted Subsidiaries) pursuant to which the Borrower or any of its Subsidiaries (including its Unrestricted Subsidiaries) may sell, convey or otherwise transfer to (a) a Receivables Subsidiary (in the case of a transfer by the Borrower or any of its Subsidiaries (including its Unrestricted Subsidiaries)), and (b) any other Person (in the case of a transfer by a Receivables Subsidiary), or may grant a security interest in, any accounts receivable (whether now existing or arising in the future) of the Borrower or any of its Subsidiaries (including its Unrestricted Subsidiaries), or any interest therein, and any assets related thereto, including, without limitation, all collateral securing such accounts receivable, all contracts and all guarantees or other obligations in respect of such accounts receivable, proceeds of such accounts receivable and other assets which are customarily transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions involving accounts receivable and any Hedging Obligations entered into by the Borrower or any such Subsidiary in connection with such accounts receivable.
“Receivables Repurchase Obligation” means any obligation of a seller of receivables in a Qualified Receivables Financing to repurchase receivables arising as a result of a breach of a representation, warranty or covenant or otherwise, including as a result of a receivable or portion thereof becoming subject to any asserted defense, dispute, offset or counterclaim of any kind as a result of any action taken by, any failure to take action by or any other event relating to the seller.
“Receivables Subsidiary” shall mean a Subsidiary of the Borrower (or another Person formed for the purposes of engaging in a Qualified Receivables Financing with the Borrower in which the Borrower or any Subsidiary of the Borrower makes an Investment and to which the Borrower or any Subsidiary of the Borrower transfers accounts receivable and related assets) that engages in no activities other than in connection with the financing of accounts receivable, and in business related or ancillary thereto, of the Borrower and its Subsidiaries, all proceeds thereof and all rights (contractual or other), collateral and other assets relating thereto, and any business or activities incidental or related to such business, and which is designated by the board of directors of the Borrower (as provided below) as a Receivables Subsidiary and:

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(1)no portion of the Indebtedness or any other obligations (contingent or otherwise) of which (i) is guaranteed by the Borrower or any other Subsidiary of the Borrower (excluding guarantees of obligations (other than the principal of, and interest on, Indebtedness) pursuant to Standard Securitization Undertakings), (ii) is recourse to or obligates the Borrower or any other Subsidiary of the Borrower in any way other than pursuant to Standard Securitization Undertakings, or (iii) subjects any property or asset of the Borrower or any other Subsidiary of the Borrower, directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard Securitization Undertakings;
(2)with which neither the Borrower nor any other Subsidiary of the Borrower has any material contract, agreement, arrangement or understanding other than on terms which the Borrower reasonably believes to be no less favorable to the Borrower or such Subsidiary than those that might be obtained at the time from Persons that are not Affiliates of the Borrower; and
(3)to which neither the Borrower nor any other Subsidiary of the Borrower has any obligation to maintain or preserve such entity’s financial condition or cause such entity to achieve certain levels of operating results.
Any such designation by the board of directors of the Borrower shall be evidenced to the Administrative Agent by filing with the Administrative a certified copy of the resolution of the board of directors of the Borrower giving effect to such designation and an officer’s certificate certifying that such designation complied with the foregoing conditions.
“Recipient” means the Administrative Agent, the Collateral Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of any Credit Party hereunder.
“Recovery Event” shall mean any event that gives rise to the receipt by the Borrower or any of its Subsidiaries of any cash insurance proceeds or condemnation awards payable (i) by reason of theft, loss, physical destruction, damage, taking or any other similar event with respect to any property or assets of the Borrower or any of its Subsidiaries and (ii) under any policy of insurance required to be maintained under Section 9.03.
“Refinanced Term Loans” shall have the meaning provided in Section 13.12(d).
“Refinancing” shall mean the refinancing transactions described in Sections 6.06(a) and (b).
“Refinancing Documents” shall mean all pay-off letters, guaranty releases, Lien releases (including, without limitation, UCC termination statements) and other documents and agreements entered into in connection with the Refinancing.
“Register” shall have the meaning provided in Section 13.15.
“Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof establishing reserve requirements.
“Regulation T” shall mean Regulation T of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof.

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“Regulation U” shall mean Regulation U of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof.
“Reinvestment Period” shall mean 180 days following the date of receipt of Net Sale Proceeds of an Asset Sale by the Borrower or its Subsidiaries.
“Release” shall mean disposing, discharging, injecting, spilling, pumping, leaking, leaching, dumping, emitting, escaping, emptying, pouring, seeping, or migrating into, through or upon any land or water or air, or otherwise entering into the environment.
“Reorganization” shall mean with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section 4241 of ERISA.
“Replaced Lender” shall have the meaning provided in Section 2.13.
“Replacement Lender” shall have the meaning provided in Section 2.13.
“Replacement Term Loans” shall have the meaning provided in Section 13.12(d).
“Reportable Event” shall mean an event described in Section 4043(c) of ERISA with respect to a Plan that is subject to Title IV of ERISA other than those events as to which the 30-day notice period is waived under applicable regulations.
“Repricing Event” shall mean (a) the incurrence by the Borrower of any Indebtedness (including, without limitation, any new or additional Term Loans under this Agreement, whether incurred directly or by way of the conversion of the Term Loans into a new tranche of Replacement Term Loans under this Agreement) (i) having an “effective” interest rate margin or weighted average yield that is less than the applicable rate for or weighted average yield for the Term Loans of the respective Type (with the comparative determinations to be made in the reasonable judgment of the Administrative Agent consistent with generally accepted financial practices, after giving effect to, among other factors, margin, upfront or similar fee or “original issue discount” shared with all lenders or holders of such Indebtedness or Term Loans, as the case may be, but excluding the effect of any arrangement, structuring, syndication or other fees payable in connection therewith that are not shared with all lenders or holders of such Indebtedness or Term Loans, as the case may be, and without taking into account any fluctuations in the LIBO Rate) but excluding Indebtedness incurred in connection with a Change in Control, and (ii) the proceeds of which are used to prepay (or, in the case of a conversion, deemed to prepay or replace), in whole or in part, the outstanding principal of the Term Loans or (b) any effective reduction in the Applicable Margin or interest rate floor for the Term Loans (e.g., by way of amendment, waiver or otherwise) provided that the foregoing clauses (a) and (b) shall exclude any such transaction that would, if consummated, constitute a Transformative Acquisition.  Any such determination by the Administrative Agent as contemplated by preceding clauses (a) and (b) shall be conclusive and binding on all Lenders holding Term Loans.  Neither the Administrative Agent nor the Borrower shall have any liability to any Person with respect to such determination absent gross negligence, bad faith or willful misconduct by such Person.
“Required Lenders” shall mean, at any time, Non-Defaulting Lenders the sum of whose outstanding Term Loans at such time represents at least a majority of all outstanding Term Loans of Non-Defaulting Lenders.

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“Returns” shall have the meaning provided in Section 8.09.
“S&P” shall mean Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc.
“Sale Leaseback” shall mean any transactions or series of related transactions pursuant to which the Borrower or any of its Subsidiaries (a) sells, transfer or otherwise disposes of any property, real or personal, whether now owned or hereafter acquired, and (b) as part of such transaction, thereafter rents or leases such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold, transferred or disposed.
“Sanctioned Country” shall have the meaning provided in Section 8.19.
“Sanctions” shall have the meaning provided in Section 8.19.
“Scheduled Term Loan Repayment” shall have the meaning provided in Section 5.02(a).
“Scheduled Term Loan Repayment Date” shall have the meaning provided in Section 5.02(a).
“SEC” shall have the meaning provided in Section 9.01(g).
“Section 5.04(b)(ii) Certificate” shall have the meaning provided in Section 5.04(b)(ii).
“Secured Creditors” shall have the meaning assigned that term in the respective Security Documents.
“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
“Security Document” shall mean and include each of the Guaranty and Collateral Agreement, each Mortgage, the Intercreditor Agreements and, after the execution and delivery thereof, each Additional Security Document and all other security documents hereafter delivered to the Collateral Agent granting a Lien on any property of any Person for the benefit of the Secured Creditors.
“Sellers” shall mean AIM Oxford Holdings, LLC, C&T Coal, Inc., Jeffrey M. Gutman, Daniel M. Maher and the warrantholders that executed the Acquisition Agreement.
“Series A Preferred Stock” shall mean the 91,694 shares of Series A Convertible Exchangeable Preferred Stock of the Borrower outstanding on the Effective Date.
“Solvent” shall mean, with respect to any Person that, as of the Initial Borrowing Date, (i) the sum of such Person’s debt (including contingent liabilities) does not exceed the present fair saleable value of such Person’s present assets, (ii) such Person’s capital is not unreasonably small in relation to its business as contemplated on the Initial Borrowing Date, and (iii) such Person has not incurred and does not intend to incur, or believe that it will incur, debts including current obligations beyond its ability to pay such debts as they become due (whether at maturity or otherwise). For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Auditing Standard No. 5).

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“Specified Incremental Term Loans” shall mean any and all Incremental Term Loans that are incurred prior to the repayment in full of the Term Loans that are incurred on the Effective Date.
“Standard Securitization Undertakings” means representations, warranties, covenants, indemnities and guarantees of performance entered into by the Borrower or any Subsidiary of the Borrower which the Borrower has determined in good faith to be customary in all material respects in a Receivables Financing including, without limitation, those relating to the servicing of the assets of a Receivables Subsidiary, it being understood that any Receivables Repurchase Obligation shall be deemed to be a Standard Securitization Undertaking.
“Stock Certificates” means Collateral consisting of stock certificates representing capital stock of Oxford GP and its subsidiaries or the Borrower and its Subsidiaries required as Collateral pursuant to the Security Documents.
“Subsidiary” shall mean, as to any Person, (i) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person and/or one or more Subsidiaries of such Person and (ii) any partnership, limited liability company, association, joint venture or other entity in which such Person and/or one or more Subsidiaries of such Person has more than a 50% voting equity interest at the time.  Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.  Notwithstanding anything contained herein to the contrary, no Unrestricted Subsidiary shall be deemed to be a Subsidiary of the Borrower or of a Subsidiary of the Borrower for the purpose of this Agreement except as otherwise expressly provided herein.
“Successor Borrower” shall have the meaning provided in Section 10.02(x).
“Swap” shall mean any agreement, contract, or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.
“Swap Obligation” shall mean, with respect to any person, any obligation to pay or perform under any Swap.
“Taxes” shall mean any present or future taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein, including any interest, additions to tax or penalties applicable thereto.
“Term Loan” shall have the meaning provided in Section 2.01.
“Term Loan Commitment” shall mean, for each Lender, the amount set forth opposite such Lender’s name in Schedule 1.01(a) directly below the column entitled “Term Loan Commitment,” as the same may be terminated pursuant to Section 4.02.  The aggregate amount of the Term Loan Commitment is $350,000,000 on the Effective Date.
“Term Loan Lender” shall mean each Lender with outstanding Term Loans.
“Test Period” shall mean each period of four consecutive Fiscal Quarters of the Borrower for which the internal financial statements are then available, in each case taken as one accounting period; provided that in the case of any Test Period which includes any Fiscal Quarter ended on or prior to 

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December 31, 2015, the rules set forth in the immediately succeeding sentence shall apply; provided further, that in the case of determinations of the Total Leverage Ratio pursuant to this Agreement, such further adjustments (if any) as described in the proviso to the definition of “Total Leverage Ratio” contained herein shall be made to the extent applicable.  If the respective Test Period (i) includes the Fiscal Quarter of the Borrower ended March 31, 2014, Consolidated EBITDA for such Fiscal Quarter shall be deemed to be $71,797,000, (ii) includes the Fiscal Quarter of the Borrower ended June 30, 2014, Consolidated EBITDA for such Fiscal Quarter shall be deemed to be $43,432,000, and (iii) includes the Fiscal Quarter of the Borrower ended September 30, 2014, Consolidated EBITDA for such Fiscal Quarter shall be deemed to be $41,170,000; provided that further adjustments may be made on Pro Forma Basis to the amounts specified above to the extent provided herein.
“Total Commitment” shall mean, at any time, the sum of the Term Loan Commitments of each of the Lenders at such time.
“Total Leverage Ratio” shall mean, on any date of determination, the ratio of (x) the remainder of (A) Indebtedness of the Borrower and its Subsidiaries on such date less (B) Unrestricted cash and Cash Equivalents of the Borrower and each Guarantor on such date in an aggregate amount not to exceed $100,000,000 to (y) Consolidated EBITDA for the Test Period most recently ended on or prior to such date; provided that (i) for purposes of any calculation of the Total Leverage Ratio pursuant to this Agreement, Consolidated EBITDA shall be determined on a Pro Forma Basis in accordance with clause (iii) of the definition of “Pro Forma Basis” contained herein and (ii) for purposes of any calculation of the Total Leverage Ratio pursuant to the definition of “Permitted Acquisition” only, Indebtedness shall be determined on a Pro Forma Basis in accordance with the requirements of the definition of “Pro Forma Basis” contained herein.
“Tranche” shall mean the respective facility utilized in making Loans hereunder, i.e., Term Loans, Incremental Term Loans or Specified Incremental Term Loans.
“Transaction” shall mean, collectively, (i) the consummation of the Acquisition and the other transactions contemplated by the Acquisition Documents, including the refinancing of the current senior and second-lien indebtedness of Oxford and its affiliates that is a condition precedent to the Borrower’s consummation of the Acquisition (ii) the refinancing of the current senior debt of Oxford MLP, (iii) the execution of, and borrowings, if any, under the ABL Facility, (iv) the consummation of the Refinancing, (v) the execution, delivery and performance by each Credit Party of the Credit Documents to which it is a party, the incurrence of Loans on the Initial Borrowing Date and the use of proceeds thereof and (vi) the payment of all fees and expenses in connection with the foregoing.
“Transformative Acquisition” shall mean any acquisition, merger, amalgamation or similar transaction or series of transactions by the Borrower or any Restricted Subsidiary that is either (a) not permitted by the terms of this Agreement immediately prior to the consummation of such acquisition or (b) if permitted by the terms of this Agreement immediately prior to the consummation of such acquisition, would not provide the Borrower and its Subsidiaries with adequate flexibility under this Agreement for the continuation and/or expansion of their combined operations following such consummation, as determined by the Borrower acting in good faith. 
“Treasury Rate” shall mean, at any date, the yield to maturity as of such date of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days prior to such date (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from such date to the date which is one year following the Effective Date;  provided, that if the period from such date to the date which is one year 

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following the Effective Date is not equal to the constant maturity of a United States Treasury security, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year shall be used.
“TWCC” shall mean Texas Westmoreland Coal Company, a Montana corporation. 
“TWCC Security Agreement” shall mean the Security Agreement dated as of June 26, 2008 between TWCC and NRGT, as amended from time to time.
“TWCC Supply Agreement” shall mean the Amended and Restated Supply Agreement dated as of September 28, 2007 between TWCC, as seller, and NRGT, as purchaser, as amended from time to time.
“TWCC Supply Agreement Assets” shall mean all right, title and interest of TWCC in and to all receivables, payments, income, cash flow and revenues due, owing or paid to TWCC under the TWCC Supply Agreement, and any proceeds thereof, but only to the extent such receivables, payments, income, cash flow and revenues arise, or such amounts are paid prior to a Remedies Event, as defined in the TWCC Security Agreement.
“Type” shall mean the type of Loan determined with regard to the interest option applicable thereto, i.e., whether a Base Rate Loan or a LIBOR Loan.
“UCC” shall mean the Uniform Commercial Code as from time to time in effect in the relevant jurisdiction.
“UCC Financing Collateral” shall mean Collateral a security interest in which may be perfected by filing a UCC financing statement in the relevant UCC filing office.
“UCC Fixture Filing” shall mean a financing statement covering goods that are or are to become Fixtures filed in the office designated for the filing or recording of a record of a mortgage on the related Real Property. 
“Unfunded Pension Liability” shall mean the excess of a Plan’s benefit liabilities (as defined in Section 4001(a)(16) of ERISA) over the Fair Market Value of that Plan’s assets (excluding any accrued but unpaid contributions), determined in each case as of the beginning of the most recent plan year in accordance with the assumptions used under Accounting Standards Codification Topic No. 715-30 for such Plan year.
“United States” and “U.S.” shall each mean the United States of America.
“Unrestricted” shall mean, when referring to cash or Cash Equivalents of the Borrower or any of its Subsidiaries, that such cash or Cash Equivalents (i) does not appear (and is not required to appear) as “restricted” on a consolidated balance sheet of the Borrower or of any such Subsidiary (unless such appearance is related to the Credit Documents (or Liens created thereunder)) and (ii) are not subject to any Lien in favor of any Person (other than Liens (x) in favor of the Collateral Agent pursuant to the Security Documents, (y) in favor of the ABL Representative and the lenders under the ABL Facility, and (z) permitted by Section 10.01(xvii)).
“Unrestricted Subsidiary” shall mean (a) WKFCH, upon its formation whether on or after the Effective Date, and (b) upon the acquisition by the Borrower of the Oxford GP pursuant to the Acquisition Agreement on the terms described in the Offering Memorandum in all material respects, the 

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Oxford GP and its Subsidiaries, including Oxford MLP, (c) following the Effective Date, any Subsidiary of the Borrower that at the time of determination shall be designated an Unrestricted Subsidiary by the board of directors of the Borrower, (d) any Subsidiary of an Unrestricted Subsidiary, or (e) any Receivables Subsidiary; provided that any such Receivables Subsidiary of the Borrower that is an Unrestricted Subsidiary shall, upon the termination of any such Qualified Receivables Financing (other than as a result of an event of default thereunder unless and until the obligations thereunder are repaid in full), cease to be an Unrestricted Subsidiary; and provided that such Subsidiary:
(1)    has no Indebtedness other than Non-Recourse Debt;
(2)    is a Person with respect to which neither the Borrower nor any of its Subsidiaries has any direct or indirect obligation (x) to subscribe for additional Equity Interests or (y) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results; and
(3)    has not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Borrower or any of its Subsidiaries. 
“Waivable Mandatory Repayment” shall have the meaning set forth in Section 5.02(i).
“Weighted Average Life to Maturity” shall mean, when applied to any Indebtedness or Qualified Equity Interest, as the case may be, at any date, the quotient obtained by dividing (a) the sum of the products of the number of years from the date of determination to the date of each successive scheduled principal payment of such Indebtedness or redemption or similar payment with respect to such Qualified Equity Interest multiplied by the amount of such payment; by (b) the sum of all such payments.
“Wholly-Owned Domestic Subsidiary” shall mean, as to any Person, any Wholly-Owned Subsidiary of such Person that is a Domestic Subsidiary.
“Wholly-Owned Foreign Subsidiary” shall mean, as to any Person, any Wholly-Owned Subsidiary of such Person that is a Foreign Subsidiary.
“Wholly-Owned Subsidiary” shall mean, as to any Person, (i) any corporation 100% of whose capital stock is at the time owned by such Person and/or one or more Wholly-Owned Subsidiaries of such Person and (ii) any partnership, limited liability company, association, joint venture or other entity in which such Person and/or one or more Wholly-Owned Subsidiaries of such Person has a 100% equity interest at such time (other than, in the case of a Foreign Subsidiary of the Borrower with respect to the preceding clauses (i) and (ii), director’s qualifying shares and/or other nominal amount of shares required to be held by Persons other than the Borrower and its Subsidiaries under applicable law).
“WKFCH” shall have the meaning provided in the definition of “Initial Oxford Dropdown.”
“WRI” shall mean Westmoreland Resources, Inc.
“Yield Differential” shall have the meaning provided in Section 2.14(b).
1.02.     Other Definitional Provisions.  (a) Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used in the other Credit Documents or any certificate or other document made or delivered pursuant hereto or thereto.

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(b)As used herein and in the other Credit Documents, and any certificate or other document made or delivered pursuant hereto or thereto, (i) accounting terms not defined in Section 1.01 shall have the respective meanings given to them under GAAP, (ii) the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation,” (iii) the word “incur” shall be construed to mean incur, create, issue, assume, become liable in respect of or allow to exist (and the words “incurred” and “incurrence” shall have correlative meanings), (iv) unless the context otherwise requires, the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, Equity Interests, securities, revenues, accounts, leasehold interests and contract rights, (v) the word “will” shall be construed to have the same meaning and effect as the word “shall,” and (vi) unless the context otherwise requires, any reference herein (A) to any Person shall be construed to include such Person’s successors and assigns and (B) to the Borrower or any other Credit Party shall be construed to include the Borrower or such Credit Party as debtor and debtor-in-possession and any receiver or trustee for the Borrower or any other Credit Party, as the case may be, in any insolvency or liquidation proceeding.
(c)The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise specified.
(d)The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.
Section 2.     Amount and Terms of Credit.
2.01.     The Commitments.  Subject to and upon the terms and conditions set forth herein, each Lender with a Term Loan Commitment severally agrees to make a term loan or term loans (each, a “Term Loan” and, collectively, the “Term Loans”) to the Borrower, which Term Loans (i) shall be incurred pursuant to a single drawing on the Initial Borrowing Date, (ii) shall be denominated in Dollars, (iii) except as hereinafter provided, shall, at the option of the Borrower, be incurred and maintained as, and/or converted into, Base Rate Loans or LIBOR Loans, provided that except as otherwise specifically provided in Section 2.10(b), all Term Loans comprising the same Borrowing shall at all times be of the same Type, and (iv) shall be made by each such Lender in an aggregate principal amount that does not exceed the Term Loan Commitment of such Lender on the Initial Borrowing Date.  Once repaid, Term Loans incurred hereunder may not be reborrowed.
2.02.     Minimum Amount of Each Borrowing.  The aggregate principal amount of each Borrowing of Loans under a respective Tranche shall not be less than the Minimum Borrowing Amount applicable to such Tranche.  More than one Borrowing may occur on the same date, but at no time shall there be outstanding more than 10 Borrowings of LIBOR Loans in the aggregate for all Tranches of Loans.
2.03.     Notice of Borrowing.  (a) Whenever the Borrower desires to borrow (x) LIBOR Loans hereunder, the Borrower shall give the Administrative Agent at the Notice Office at least three Business Days’ prior notice of each LIBOR Loan to be incurred hereunder and (y) Base Rate Loans hereunder, the Borrower shall give the Administrative Agent at the Notice Office notice of each Base Rate Loan no later than the Business Day on which it desires to borrow the Base Rate Loan, provided that (in each case) any such notice shall be deemed to have been given on a certain day only if given before 11:00 a.m. CST on such day.  Any notice received after 11:00 a.m. CST on any day shall be deemed to have been given on the immediately succeeding Business Day.  Each such notice (each, a “Notice of Borrowing”), except as otherwise expressly provided in Section 2.10, shall be irrevocable and shall be in writing, 

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or by telephone promptly confirmed in writing, in the form of Exhibit A-1, appropriately completed to specify:  (i) the aggregate principal amount of the Loans to be incurred pursuant to such Borrowing, (ii) the date of such Borrowing (which shall be a Business Day) and (iii) whether the Loans being incurred pursuant to such Borrowing are to be initially maintained as Base Rate Loans or, to the extent permitted hereunder, LIBOR Loans and, if LIBOR Loans, the initial Interest Period to be applicable thereto.  The Administrative Agent shall promptly give each Lender that is required to make Loans of the Tranche specified in the respective Notice of Borrowing, notice of such proposed Borrowing, of such Lender’s proportionate share thereof and of the other matters required by the immediately preceding sentence to be specified in the Notice of Borrowing.
(b)Without in any way limiting the obligation of the Borrower to confirm in writing any telephonic notice of any Borrowing or prepayment of Loans, the Administrative Agent may act without liability upon the basis of telephonic notice of such Borrowing or prepayment, as the case may be, believed by the Administrative Agent in good faith to be from an Authorized Officer of the Borrower, prior to receipt of written confirmation.  In each such case, the Borrower hereby waives the right to dispute the Administrative Agent’s record of the terms of such telephonic notice of such Borrowing or prepayment of Loans, as the case may be, absent manifest error.
2.04.     Disbursement of Funds.  No later than 1:00 p.m. CST on the date specified in each Notice of Borrowing, each Lender with a Commitment of the respective Tranche will make available its pro rata portion (determined in accordance with Section 2.07) of each such Borrowing requested to be made on such date.  All such amounts will be made available in Dollars and in immediately available funds at the Payment Office, and the Administrative Agent will make available to the Borrower at the Payment Office the aggregate of the amounts so made available by the Lenders under the respective Tranche by wire transfer of such funds in accordance with instructions provided to the Administrative Agent by the Borrower.  Unless the Administrative Agent shall have been notified by any Lender prior to the date of Borrowing that such Lender does not intend to make available to the Administrative Agent such Lender’s portion of any Borrowing to be made on such date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date of Borrowing and the Administrative Agent may (but shall not be obligated to), in reliance upon such assumption, make available to the Borrower a corresponding amount.  If such corresponding amount has been made available to the Borrower by the Administrative Agent and is not in fact made available to the Administrative Agent by such Lender, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower and the Borrower shall immediately pay such corresponding amount to the Administrative Agent in the Dollars in immediately available funds at the Payment Office.  The Administrative Agent also shall be entitled to recover on demand from such Lender or the Borrower, as the case may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the Administrative Agent to the Borrower until the date such corresponding amount is recovered by the Administrative Agent, at a rate per annum equal to (i) if recovered from such Lender, the overnight Federal Funds Rate for the first three days and at the interest rate otherwise applicable to such Loans for each day thereafter and (ii) if recovered from the Borrower, the rate of interest applicable to the respective Borrowing, as determined pursuant to Section 2.08. Nothing in this Section 2.04 shall be deemed to relieve any Lender from its obligation to make Loans hereunder or to prejudice any rights which the Borrower may have against any Lender as a result of any failure by such Lender to make Loans hereunder.
2.05.     Notes.  (a) The Borrower’s obligation to pay the principal of, and interest on, the Loans made by each Lender shall be evidenced in the Register maintained by the Administrative Agent pursuant to Section 13.15 and shall, if requested by such Lender, also be evidenced by a promissory note 

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duly executed and delivered by the Borrower substantially in the form of Exhibit B, with blanks appropriately completed in conformity herewith (each, a “Note” and, collectively, the “Notes”).
(b)Each Lender will note on its internal records the amount of each Loan made by it and each payment in respect thereof and prior to any transfer of any of its Notes will endorse on the reverse side thereof the outstanding principal amount of Loans evidenced thereby.  Failure to make any such notation or any error in such notation shall not affect the Borrower’s obligations in respect of such Loans.
(c)Notwithstanding anything to the contrary contained above in this Section 2.05 or elsewhere in this Agreement, Notes shall only be delivered to Lenders that at any time specifically request the delivery of such Notes.  No failure of any Lender to request or obtain a Note evidencing its Loans to the Borrower shall affect or in any manner impair the obligations of the Borrower to pay the Loans (and all related Obligations) incurred by the Borrower that would otherwise be evidenced thereby in accordance with the requirements of this Agreement, and shall not in any way affect the security or guaranties therefor provided pursuant to the various Credit Documents.  Any Lender that does not have a Note evidencing its outstanding Loans shall in no event be required to make the notations otherwise described in preceding clause (b).  At any time when any Lender requests the delivery of a Note to evidence any of its Loans, the Borrower shall execute and deliver to the respective Lender the requested Note in the appropriate amount or amounts to evidence such Loans within three Business Days after the Borrower has received such request.
2.06.     Conversions/Continuations.  The Borrower shall have the option to convert, on any Business Day, all or a portion equal to at least the Minimum Borrowing Amount of the outstanding principal amount of Loans made pursuant to one or more Borrowings (so long as of the same Tranche) of one or more Types of Loans into a Borrowing (of the same Tranche) of another Type of Loan, provided that, (i) except as otherwise provided in Section 2.10(b), LIBOR Loans may be converted into Base Rate Loans only on the last day of an Interest Period applicable to the Loans being converted and no such partial conversion of LIBOR Loans shall reduce the outstanding principal amount of such LIBOR Loans made pursuant to a single Borrowing to less than the Minimum Borrowing Amount applicable thereto, (ii) unless the Required Lenders otherwise agree, Base Rate Loans may not be converted into LIBOR Loans if a Default or Event of Default is in existence on the date of the conversion and (iii) no conversion pursuant to this Section 2.06 shall result in a greater number of Borrowings of LIBOR Loans than is permitted under Section 2.02.  Each such conversion shall be effected by the Borrower by giving the Administrative Agent at the Notice Office prior to 1:00 p.m. CST at least (x) in the case of conversions of Base Rate Loans into LIBOR Loans, three Business Days’ prior notice and (y) in the case of conversions of LIBOR Loans into Base Rate Loans, one Business Day’s prior notice (each, a “Notice of Conversion/Continuation”), in each case in the form of Exhibit A-2, appropriately completed to specify the Loans to be so converted, the Borrowing or Borrowings pursuant to which such Loans were incurred and, if to be converted into LIBOR Loans, the Interest Period to be initially applicable thereto.  The Administrative Agent shall give each Lender prompt notice of any such proposed conversion affecting any of its Loans.
2.07.     Pro Rata Borrowings.  All Borrowings of Term Loans under this Agreement shall be made by the Lenders pro rata on the basis of their Term Loan Commitments.  No Lender shall be responsible for any default by any other Lender of its obligation to make Loans hereunder and each Lender shall be obligated to make the Loans provided to be made by it hereunder, regardless of the failure of any other Lender to make its Loans hereunder.
2.08.     Interest.  (a) The Borrower shall pay interest in respect of the unpaid principal amount of each of the Loans:

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(i)maintained as a Base Rate Loan, in each case, from the date of Borrowing thereof until the earlier of (i) the maturity thereof (whether by acceleration or otherwise) and (ii) the conversion of such Base Rate Loan to a LIBOR Loan pursuant to Section 2.06 or 2.09, as applicable, at a rate per annum that shall be equal to the sum of the relevant Applicable Margin plus the Base Rate, each as in effect from time to time.
(ii)maintained as a LIBOR Loan, in each case, from the date of Borrowing thereof until the earlier of (i) the maturity thereof (whether by acceleration or otherwise) and (ii) the conversion of such LIBOR Loan to a Base Rate Loan pursuant to Section 2.06, 2.09 or 2.10, as applicable, at a rate per annum that shall, during each Interest Period applicable thereto, be equal to the sum of the relevant Applicable Margin as in effect from time to time during such Interest Period plus the LIBO Rate for such Interest Period.
(b)During any Event of Default under Section 11.01, principal and, to the extent permitted by law, interest in respect of each Loan (in each case, subject to the applicable grace period) shall, in each case, bear interest at a rate per annum equal to the rate that is 2% in excess of the rate then borne by such Loans, and all other amounts (subject to any applicable grace period) payable hereunder and under any other Credit Document shall bear interest at a rate per annum equal to the rate that is 2% in excess of the rate applicable to Loans that are maintained as Base Rate Loans from the date of such non-payment to the date on which such amount is paid in full.  Interest that accrues under this Section 2.08(b) shall be payable on demand.
(c)Accrued (and theretofore unpaid) interest shall be payable (i) in respect of each Base Rate Loan, quarterly in arrears on each Quarterly Payment Date, (ii) in respect of each LIBOR Loan, on the last day of each Interest Period applicable thereto and, in the case of an Interest Period in excess of three months, on each date occurring at three month intervals after the first day of such Interest Period, and (iii) in respect of each Loan, (x) on the date of any repayment or prepayment thereof (on the amount prepaid or repaid) (except that repayments and prepayments of Base Rate Loans under a Tranche shall not be required to be accompanied by a payment of accrued, and theretofore unpaid, interest thereon, unless either all outstanding Loans of such Type under such Tranche are being repaid or prepaid) and (y) at maturity (whether by acceleration or otherwise) and, after such maturity, on demand.
(d)Upon each Interest Determination Date, the Administrative Agent shall determine the LIBO Rate for each Interest Period applicable to the respective LIBOR Loans and shall promptly notify the Borrower and the Lenders thereof.  Each such determination shall, absent manifest error, be final and conclusive and binding on all parties hereto.
2.09.     Interest Periods. (a) At the time a Borrower gives any Notice of Borrowing or Notice of Conversion/Continuation in respect of the making of, or conversion into, any LIBOR Loan (in the case of the initial Interest Period applicable thereto) or prior to 11:00 a.m. CST on the third Business Day prior to the expiration of an Interest Period applicable to such LIBOR Loan (in the case of any subsequent Interest Period), the Borrower shall have the right to elect the interest period (each, an “Interest Period”) applicable to such LIBOR Loan, which Interest Period shall, at the option of the Borrower, be (x) a one, two, three or six month period or (y) a seven, fourteen or twenty-one day period if agreed by the Administrative Agent in its sole discretion, provided that (in each case):
(i)all LIBOR Loans comprising a Borrowing shall at all times have the same Interest Period;
(ii)the initial Interest Period for any LIBOR Loan shall commence on the date of Borrowing of such LIBOR Loan (including the date of any conversion thereto from a Base Rate 

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Loan) and each Interest Period occurring thereafter in respect of such LIBOR Loan shall commence on the day on which the next preceding Interest Period applicable thereto expires;
(iii)if any Interest Period for a LIBOR Loan begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Business Day of such calendar month;
(iv)if any Interest Period for a LIBOR Loan would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided, however, that if any Interest Period for a LIBOR Loan would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the next preceding Business Day;
(v)unless the Required Lenders otherwise agree, no Interest Period may be selected at any time when a Default or an Event of Default is then in existence; and
(vi)no Interest Period in respect of any Borrowing of any Tranche of Loans shall be selected that extends beyond the Maturity Date.
If by 11:00 a.m. CST on the third Business Day prior to the expiration of any Interest Period applicable to a Borrowing of LIBOR Loans, the Borrower has failed to elect, or is not permitted to elect, a new Interest Period to be applicable to such LIBOR Loans as provided above, the Borrower shall be deemed to have elected to continue such LIBOR Loans into LIBOR Loans with a same Interest Period, effective as of the expiration date of such current Interest Period.
2.10.     Increased Costs, Illegality, etc.  (a) If in connection with any request for a LIBOR Loan or a conversion or continuation thereof, any Lender shall have determined (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto but, with respect to clause (i) below, shall be made only by the Administrative Agent):
(i)on any Interest Determination Date that, by reason of any changes arising after the Effective Date affecting the London interbank market, adequate and fair means do not exist for ascertaining the applicable interest rate on the basis provided for in the definition of LIBO Rate; or
(ii)at any time, that such Lender shall incur increased costs or reductions in the amounts received or receivable hereunder with respect to any LIBOR Loan because of any change since the Effective Date in any applicable law or governmental rule, regulation, order, guideline or request (whether or not having the force of law) or in the interpretation or administration thereof and including the introduction of any new law or governmental rule, regulation, order, guideline or request, such as, but not limited to:  (A) a change that shall subject any Lender or the Administrative Agent to any taxes on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto (except for taxes that are Indemnified Taxes, Connection Income Taxes or Taxes described in clauses (b) through (d) of the definition of “Excluded Taxes”), which taxes it had not been subject to prior to the change described above or (B) a change in official reserve or liquidity requirements that increases such reserve or liquidity requirements from the requirements on the Effective Date, but, in all events, excluding reserves required under Regulation D to the extent included in the computation of the LIBO Rate; or

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(iii)at any time, that the making or continuance of any LIBOR Loan has been made (x) unlawful by any law or governmental rule, regulation or order, (y) impossible by compliance by any Lender in good faith with any governmental request (whether or not having force of law) or (z) impracticable as a result of a contingency occurring after the Effective Date that materially and adversely affects the London interbank market;
then, and in any such event, such Lender (or the Administrative Agent, in the case of clause (i) above) shall promptly give notice (by telephone promptly confirmed in writing) to the Borrower and, except in the case of clause (i) above, to the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each of the other Lenders).  Thereafter (x) in the case of clause (i) above, LIBOR Loans shall no longer be available until such time as the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice by the Administrative Agent no longer exist, and any Notice of Borrowing or Notice of Conversion/Continuation given by the Borrower with respect to LIBOR Loans which have not yet been incurred (including by way of conversion) shall be deemed rescinded by the Borrower, (y) in the case of clause (ii) above, the Borrower agrees to pay to such Lender, upon such Lender’s written request therefor, such additional amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Lender in its sole discretion shall determine) as shall be required to compensate such Lender for such increased costs or reductions in amounts received or receivable hereunder (a written notice as to the additional amounts owed to such Lender, showing in reasonable detail the basis for the calculation thereof, submitted to the Borrower by such Lender shall, absent manifest error, be final and conclusive and binding on all the parties hereto) and (z) in the case of clause (iii) above, the Borrower shall take one of the actions specified in Section 2.10(b) as promptly as possible and, in any event, within the time period required by law.
(b)At any time that any LIBOR Loan is affected by the circumstances described in Section 2.10(a)(ii), the Borrower may, and in the case of a LIBOR Loan affected by the circumstances described in Section 2.10(a)(iii), the Borrower shall, either (x) if the affected LIBOR Loan is then being made initially or pursuant to a conversion, cancel such Borrowing by giving the Administrative Agent telephonic notice (confirmed in writing) on the same date that the Borrower was notified by the affected Lender or the Administrative Agent pursuant to Section 2.10(a)(ii) or (iii) if such notice had been given by the affected Lender or the Administrative Agent to the Borrower before 1:00 p.m. CST, or otherwise shall give the Administrative Agent such telephonic notice on the following day, or (y) if the affected LIBOR Loan is then outstanding, upon at least three Business Days’ written notice to the Administrative Agent, require the affected Lender to convert such LIBOR Loan into a Base Rate Loan, provided that, if more than one Lender is affected at any time, then all affected Lenders must be treated the same pursuant to this Section 2.10(b).
(c)If any Lender determines that after the Effective Date the introduction of or any change in any applicable law or governmental rule, regulation, order, guideline, directive or request (whether or not having the force of law) concerning capital adequacy or liquidity requirements, or any change in interpretation or administration thereof by the NAIC or any Governmental Authority, central bank or comparable agency, will have the effect of increasing the amount of capital required or expected to be maintained by such Lender or any corporation controlling such Lender based on the existence of such Lender’s Loans hereunder or its obligations hereunder, then the Borrower shall pay to such Lender, upon such Lender’s written request therefor, such additional amounts as shall be required to compensate such Lender or such other corporation for the increased cost to such Lender or such other corporation or the reduction in the rate of return to such Lender or such other corporation as a result of such increase of capital.  In determining such additional amounts, each Lender will act reasonably and in good faith and will use averaging and attribution methods that are reasonable, and a written notice as to such additional amounts owed to such Lender, showing in reasonable detail the basis for the calculation thereof, 

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submitted to the Borrower by the Lender shall, absent manifest error, be final and conclusive and binding on all the parties hereto.
(d)Notwithstanding anything in this Agreement to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder, issued in connection therewith or in implementation thereof and (ii) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall be deemed to be a change after the Effective Date in a requirement of law or government rule, regulation or order, regardless of the date enacted, adopted, issued or implemented (including for purposes of this Section 2.10).
(e)Failure or delay on the part of any Lender to demand compensation pursuant to this Section 2.10 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs or reductions incurred more than 180-days prior to the date that such Lender notifies the Borrower of the circumstances giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor; provided further that if the circumstances giving rise to such increased costs or reductions are retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.
2.11.     Compensation.  (a) The Borrower shall compensate each Lender upon such Lender’s written request (which request shall set forth in reasonable detail the basis for the calculation and amount of such compensation), for all losses, expenses and liabilities (including, without limitation, any loss, expense or liability incurred by reason of the liquidation or reemployment of deposits or other funds required by such Lender to fund its LIBOR Loans but excluding loss of anticipated profits) that such Lender has sustained:  (i) if for any reason (other than a default by such Lender or the Administrative Agent) a Borrowing of, or conversion from or into, LIBOR Loans does not occur on a date specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation (whether or not withdrawn by the Borrower or deemed withdrawn pursuant to Section 2.10(a)); (ii) if any prepayment or repayment (including any prepayment or repayment made pursuant to Section 5.01, Section 5.02 or as a result of an acceleration of the Loans pursuant to Section 11) or conversion of any of its LIBOR Loans occurs on a date that is not the last day of an Interest Period with respect thereto; (iii) if any prepayment of any of its LIBOR Loans is not made on any date specified in a notice of prepayment given by the Borrower; or (iv) as a consequence of (x) any other default by the Borrower to repay LIBOR Loans when required by the terms of this Agreement or any Note held by such Lender or (y) any election made pursuant to Section 2.10(b).
(b)Failure or delay on the part of any Lender to demand compensation pursuant to this Section 2.11 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any such compensation incurred more than 180-days prior to the date that such Lender notifies the Borrower of such Lender’s intention to claim compensation therefor.
2.12.     Change of Lending Office.  Each Lender agrees that on the occurrence of any event giving rise to the operation of Section 2.10(a)(ii) or (iii), Section 2.10(c) or Section 5.04 with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office for any Loans affected by such event, provided that such designation is made on such terms that such Lender and its lending office suffer no economic, legal or regulatory disadvantage, with the object of avoiding the consequence of the event 

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giving rise to the operation of such Section.  Nothing in this Section 2.12 shall affect or postpone any of the obligations of the Borrower or the right of any Lender provided in Sections 2.10 and 5.04.
2.13.     Replacement of Lenders.  (x) If any Lender becomes a Defaulting Lender, (y) upon the occurrence of any event giving rise to the operation of Section 2.10(a)(ii) or (iii), Section 2.10(c) or Section 5.04 with respect to any Lender that results in such Lender charging to the Borrower increased costs in excess of those being generally charged by the other Lenders or (z) in the case of a refusal by a Lender to consent to a proposed change, waiver, discharge or termination with respect to this Agreement that has been approved by the Required Lenders as (and to the extent) provided in Section 13.12(b), the Borrower shall have the right, in accordance with Section 13.04(b), to replace such Lender (the “Replaced Lender”) with one or more other Eligible Transferees, none of which shall constitute a Defaulting Lender at the time of such replacement (collectively, the “Replacement Lender”) and each of which shall be reasonably acceptable to the Administrative Agent or, in the case of a replacement as provided in Section 13.12(b) for which the consent of the respective Lender is required with respect to less than all Tranches of its Loans, to replace the outstanding Loans of such Lender in respect of each Tranche where the consent of such Lender would otherwise be individually required, with identical Loans of the respective Tranche provided by the Replacement Lender; provided that:
(i)at the time of any replacement pursuant to this Section 2.13, the Replacement Lender shall enter into one or more Assignment and Assumption Agreements pursuant to Section 13.04(b) (and with all fees payable pursuant to said Section 13.04(b) to be paid by the Replacement Lender and/or the Borrower (as may be agreed to at such time by and among the Borrower and the Replacement Lender)) pursuant to which the Replacement Lender shall acquire all of the outstanding Loans (or, in the case of the replacement of only the outstanding Term Loans of any Tranche, the outstanding Term Loans of the respective Tranche or Tranches with respect to which such Lender is being replaced) of the Replaced Lender and, in connection therewith, shall pay to the Replaced Lender in respect thereof an amount equal to the sum of (A) an amount equal to the principal of, and all accrued interest on, all outstanding Loans of the respective Replaced Lender under each Tranche with respect to which such Replaced Lender is being replaced and (B) an amount equal to all accrued, but theretofore unpaid, Fees (if any) owing to the Replaced Lender (but only with respect to the relevant Tranche, in the case of the replacement of less than all Tranches of Loans then held by the respective Replaced Lender) pursuant to Section 4.01; and
(ii)all obligations of the Borrower then owing to the Replaced Lender (other than those (a) specifically described in clause (i) above in respect of which the assignment purchase price has been, or is concurrently being, paid, but including all amounts, if any, owing under Section 2.11 or (b) relating to any Tranche of Loans of the respective Replaced Lender which will remain outstanding after giving effect to the respective replacement) shall be paid in full to such Replaced Lender concurrently with such replacement.
Upon receipt by the Replaced Lender of all amounts required to be paid to it pursuant to this Section 2.13, the Administrative Agent shall be entitled (but not obligated) and is authorized to execute an Assignment and Assumption Agreement on behalf of such Replaced Lender, and any such Assignment and Assumption Agreement so executed by the Administrative Agent and the Replacement Lender shall be effective for purposes of this Section 2.13 and Section 13.04; provided that in the case of a Defaulting Lender, such Lender shall be deemed to have consented to such assignment, notwithstanding execution of an Assignment and Assumption Agreement on such Lender’s behalf by the Administrative Agent.  Upon the execution of the respective Assignment and Assumption Agreement, the payment of amounts referred to in clauses (a) and (b) above, recordation of the assignment on the Register by the Administrative Agent pursuant to Section 13.15 and, if so requested by the Replacement Lender, delivery to the Replacement 

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Lender of the appropriate Note or Notes executed by the Borrower, the Replacement Lender shall become a Lender hereunder and, unless the respective Replaced Lender continues to have outstanding Term Loans hereunder, the Replaced Lender shall cease to constitute a Lender hereunder, except with respect to indemnification provisions under this Agreement (including, without limitation, Sections 2.10, 2.11, 5.04, 12.06, 13.01 and 13.06), which shall survive as to such Replaced Lender.
2.14.     Incremental Credit Extensions.
(a)The Borrower may at any time or from time to time after the Effective Date, by notice to the Administrative Agent, request one or more additional tranches or additions to Term Loans in an aggregate principal amount such that after giving effect to the incurrence thereof, the Fixed Charge Coverage Ratio for the Borrower’s most recently ended four full Fiscal Quarters for which internal financial statements are available immediately preceding the date on which such incurrence is consummated (but excluding the cash proceeds of such incurrence) would have been at least 2.00:1.00 determined on a Pro Forma Basis, as if the additional Indebtedness had been incurred at the beginning of such four-quarter period (such amount not to include loans which constitute Permitted Refinancing Indebtedness of the Loans hereunder), (the “Incremental Term Loans”), provided that (i) both at the time of any such request and upon the effectiveness of any Incremental Amendment referred to below, no Default or Event of Default shall exist and at the time that any such Incremental Term Loan is made (and after giving effect thereto) no Default or Event of Default shall exist, (ii) both at the time of any such request and upon the effectiveness of any Incremental Amendment referred to below, all of the representations and warranties of each Credit Party set forth in Section 8 and in each other Credit Document shall be true and correct in all material respects as of such time (except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date) and (iii) all Incremental Term Loans (and all interest, fees and other amounts payable thereon) shall be Obligations under this Agreement and the other applicable Credit Documents and shall be secured by the Security Documents, and guaranteed under the Guaranty, on a pari passu basis with all other Obligations of the Borrower under this Agreement secured by the Security Documents and guaranteed under the Guaranty.
(b)Incremental Term Loans that are added to the existing tranche of Term Loans shall have identical terms to such existing tranche of Term Loans.  All other Incremental Term Loans shall rank pari passu in right of payment and of security with the Term Loans; provided, however, that (i) the interest rate applicable to the Incremental Term Loans may differ from that applicable to the existing Term Loans, but, other than with respect to Specified Incremental Term Loans, if the “effective yield” applicable to a given tranche of Incremental Term Loans (which, for such purposes only, shall be deemed to take account of any interest rate benchmark floors, recurring fees and all upfront or similar fees or original issue discount (amortized over the shorter of (x) the weighted average life of such loans and (y) four years) payable to all Lenders providing such Incremental Term Loans and the effect of any LIBO Rate or Base Rate floors, in each case as determined in good faith by the Administrative Agent, but exclusive of any arrangement, structuring or other fees payable in connection therewith that are not shared with all Lenders providing such Incremental Term Loans) determined as of the initial funding date for such Incremental Term Loans exceeds the “effective yield” then applicable to any Loans or any other tranche of Incremental Term Loans (determined on the same basis as provided in the preceding parenthetical) by more than 0.50% (the amount of such excess being the “Yield Differential”), the Applicable Margin for such existing Loans subject to a Yield Differential shall automatically be increased by the Yield Differential effective upon the making of the applicable Incremental Term Loans, (ii) the final stated maturity date for a given tranche of Incremental Term Loans may be later (but not sooner) than the Maturity Date, (iii) the amortization requirements for a given tranche of Incremental Term Loans may differ, so long as the average weighted life to maturity of such Incremental Term Loans is no shorter than the average weighted life to maturity applicable to the then outstanding Term Loans, and (iv) the 

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other terms of a given tranche of Incremental Term Loans may differ if reasonably satisfactory to the Administrative Agent.
(c)Each tranche of Incremental Term Loans shall be in an aggregate principal amount that is not less than $25,000,000 (or such lesser amount as agreed to by the Administrative Agent) and shall be in an increment of $1,000,000 (provided that in each case such amount may be less if such amount represents all remaining availability under the limit set forth in the first sentence of Section 2.14(a)).
(d)Each notice from the Borrower pursuant to this Section 2.14 shall set forth the requested amount and proposed terms of the relevant Incremental Term Loans.  Incremental Term Loans may be made by any existing Lender (but no existing Lender will have an obligation to make a portion of any Incremental Term Loan) or by any other bank or other financial institution (any such other bank or other financial institution being called an “Additional Lender”), provided that the Administrative Agent shall have consented (such consent not to be unreasonably withheld) to such Lender’s or Additional Lender’s making such Incremental Term Loans if such consent would be required under Section 13.04 for an assignment of Loans, as applicable, to such Lender or Additional Lender.  Commitments in respect of Incremental Term Loans shall become Commitments under this Agreement pursuant to an amendment (an “Incremental Amendment”) to this Agreement and, as appropriate, the other Credit Documents, executed by the Borrower, each Lender agreeing to provide such Commitment, if any, each Additional Lender, if any, and the Administrative Agent.  The Incremental Amendment may, without the consent of Lenders, effect such amendments to this Agreement and the other Credit Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section 2.14.  The effectiveness of any Incremental Amendment shall be subject to the satisfaction on the date thereof (each, an “Incremental Facility Closing Date”) of each of the conditions set forth in Section 7 (it being understood that all references to “the date of such Credit Event” or similar language in such Section 7 shall be deemed to refer to the effective date of such Incremental Amendment) and such other conditions as the parties thereto shall agree.  The Borrower will use the proceeds of the Incremental Term Loans for any purpose not prohibited by this Agreement.  No Lender shall be obligated to provide any Incremental Term Loans unless it so agrees.
(e)This Section 2.14 shall supersede any provisions in Section 13.06 or 13.12 to the contrary.
2.15.     Reverse Dutch Auction Repurchases.  (a) Notwithstanding anything to the contrary contained in this Agreement or any other Credit Document, the Borrower may, at any time and from time to time after the Effective Date, conduct reverse Dutch auctions in order to purchase Term Loans (each, an “Auction”) (each such Auction to be managed exclusively by BMO Capital Markets Corp. or another investment bank of recognized standing selected by the Borrower following consultation with the Administrative Agent (in such capacity, the “Auction Manager”)); so long as the following conditions are satisfied:
(i)each Auction shall be conducted in accordance with the procedures, terms and conditions set forth in this Section 2.15 and Schedule 2.15;
(ii)no Default or Event of Default shall have occurred and be continuing on the date of the delivery of each Auction Notice and at the time of purchase of any Term Loans in connection with any Auction;

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(iii)the maximum principal amount (calculated on the face amount thereof) of all Term Loans that the Borrower offers to purchase in any such Auction shall be no less than $5,000,000 (unless another amount is agreed to by the Administrative Agent);
(iv)after giving effect to any purchase of Term Loans pursuant to this Section 2.15, the aggregate amount of all cash and Cash Equivalents of the Borrower and the other Credit Parties, shall not be less than $25,000,000;
(v)the aggregate principal amount (calculated on the face amount thereof) of all Term Loans so purchased by the Borrower shall automatically be cancelled and retired by the Borrower on the settlement date of the relevant purchase (and may not be resold);
(vi)no more than one Auction may be ongoing at any one time;
(vii)the aggregate principal amount of all Term Loans purchased pursuant to this Section 2.15 shall not exceed 15% of the aggregate principal amount of Term Loans funded on the Effective Date;
(viii)each Auction shall be open and offered to all Lenders of the relevant Tranche on a pro rata basis;
(ix)at the time of each purchase of Term Loans through an Auction, the Borrower shall have delivered to the Auction Manager an officer’s certificate of an Authorized Officer certifying as to compliance with preceding clauses (iv) and (vii); and
(x)any purchase of Term Loans pursuant to this Section 2.15 shall be made with internally generated cash flows and not with the proceeds of loans under the ABL Facility or any other revolving credit facility.
(b)The Borrower must terminate an Auction if it fails to satisfy one or more of the conditions set forth above that are required to be met at the time that otherwise would have been the time of purchase of Term Loans pursuant to the respective Auction.  If the Borrower commences any Auction (and all relevant requirements set forth above that are required to be satisfied at the time of the commencement of the respective Auction have in fact been satisfied), and if at such time of commencement the Borrower reasonably believes that all required conditions set forth above that are required to be satisfied at the time of the purchase of Term Loans pursuant to such Auction shall be satisfied, then the Borrower shall have no liability to any Lender for any termination of the respective Auction as a result of the Borrower’s failure to satisfy one or more of the conditions set forth above that are required to be met at the time which otherwise would have been the time of purchase of Term Loans pursuant to the respective Auction, and any such failure shall not result in any Default or Event of Default hereunder.  With respect to all purchases of Term Loans made by the Borrower pursuant to this Section 2.15, (x) the Borrower shall pay on the settlement date of each such purchase all accrued and unpaid interest (except to the extent otherwise set forth in the relevant offering documents), if any, on the purchased Term Loans up to the settlement date of such purchase and (y) such purchases (and the payments made by the Borrower and the cancellation of the purchased Term Loans, in each case in connection therewith) shall not constitute voluntary or mandatory payments or prepayments for purposes of Sections 5.01, 5.02 or 13.06.
(c)    The Administrative Agent and the Lenders hereby consent to the Auctions and the other transactions contemplated by this Section 2.15 (provided that no Lender shall have an obligation to participate in any such Auctions) and hereby waive the requirements of any provision of this Agreement (including, without limitation, Sections 5.01, 5.02 and 13.06 (it being understood and acknowledged 

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that purchases of the Term Loans by the Borrower contemplated by this Section 2.15 shall not constitute Investments by the Borrower)) or any other Credit Document that may otherwise prohibit any Auction or any other transaction contemplated by this Section 2.15.  The Auction Manager acting in its capacity as such hereunder shall be entitled to the benefits of the provisions of Section 12 and Section 13.01 mutatis mutandis as if each reference therein to the “Administrative Agent” were a reference to the Auction Manager, and the Administrative Agent shall cooperate with the Auction Manager as reasonably requested by the Auction Manager in order to enable it to perform its responsibilities and duties in connection with each Auction.
(d)    Each Lender participating in any Auction hereby acknowledges and agrees that in connection with such Auction, (1) the Borrower may have, and later may come into possession of, information regarding the Term Loans or the Credit Parties hereunder that is not known to such Lender and that may be material to a decision by such Lender to participate in such Auction (such information, the “Excluded Information”), (2) such Lender has independently, without reliance on the Borrower, any of its Subsidiaries, the Administrative Agent or any of their respective Affiliates, made its own analysis and determination to participate in such Auction notwithstanding such Lender’s lack of knowledge of the Excluded Information and (3) none of the Borrower, its Subsidiaries, the Administrative Agent or any of their respective Affiliates shall have any liability to such Lender, and such Lender hereby waives and releases, to the extent permitted by law, any claims such Lender may have against the Borrower, its Subsidiaries, the Administrative Agent, and their respective Affiliates, under applicable laws or otherwise, with respect to the nondisclosure of the Excluded Information.  Each Lender participating in any Auction further acknowledges that the Excluded Information may not be available to the Administrative Agent or the other Lenders.
2.16.     Extensions of Term Loans.
(a)Notwithstanding anything to the contrary in this Agreement, pursuant to one or more offers (each, an “Extension Offer”) made from time to time by the Borrower to all Lenders of Term Loans with a like maturity date on a pro rata basis (based on the aggregate outstanding principal amount of the respective Term Loans) and on the same terms to each such Lender, the Borrower may consummate from time to time transactions with individual Lenders that accept the terms contained in such Extension Offers to extend the maturity date of each such Lender’s Term Loans and otherwise modify the terms of such Term Loans pursuant to the terms of the relevant Extension Offer (including, without limitation, by increasing the interest rate or fees payable in respect of such Term Loans and/or modifying the amortization schedule in respect of such Lender’s Term Loans) (each, an “Extension,” and each group of Term Loans, in each case as so extended, as well as the original Term Loans (in each case not so extended), being a “tranche”; any Extended Term Loans shall constitute a separate tranche of Term Loans from the tranche of Term Loans from which they were converted), so long as the following terms are satisfied: (i) no Default or Event of Default shall have occurred and be continuing at the time the offering document in respect of an Extension Offer is delivered to the Lenders, (ii) except as to interest rates, fees, amortization, final maturity date, premium, required prepayment dates and participation in prepayments (which shall, subject to immediately succeeding clauses (iii), (iv) and (v), be determined between the Borrower and set forth in the relevant Extension Offer), the Term Loans of any Lender that agrees to an extension with respect to such Term Loans (an “Extending Term Lender”) extended pursuant to any Extension (“Extended Term Loans”) shall have the same terms as the tranche of Term Loans subject to such Extension Offer, (iii) the final maturity date of any Extended Term Loans shall be no earlier than the Maturity Date and the amortization schedule applicable to Term Loans pursuant to Section 5.02(a) for periods prior to the Maturity Date may not be increased, (iv) the Weighted Average Life to Maturity of any Extended Term Loans shall be no shorter than the remaining Weighted Average Life to Maturity of the Term Loans extended thereby, (v) any Extended Term Loans may participate on a pro rata basis or a less than pro rata basis (but not greater than a pro rata basis) in any voluntary or mandatory repayments or 

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prepayments hereunder, in each case as specified in the respective Extension Offer, (vi) if the aggregate principal amount of Term Loans (calculated on the face amount thereof) in respect of which Term Lenders shall have accepted the relevant Extension Offer shall exceed the maximum aggregate principal amount of Term Loans offered to be extended by the Borrower pursuant to such Extension Offer, then the Term Loans of such Term Lenders shall be extended ratably up to such maximum amount based on the respective principal amounts (but not to exceed actual holdings of record) with respect to which such Term Lenders have accepted such Extension Offer, (vii) all documentation in respect of such Extension shall be consistent with the foregoing, (viii) any applicable Minimum Extension Condition  shall be satisfied unless waived by the Borrower and (ix) the Minimum Tranche Amount shall be satisfied unless waived by the Administrative Agent.
(b)Notwithstanding the foregoing, if the interest rate margins (which, for such purposes only, shall be deemed to include all upfront or similar fees or original issue discount payable to all Lenders providing Extended Term Loans and any LIBOR  floor applicable to such Extended Term Loans) relating to any Extended Term Loan exceeds the Applicable Margin (which, for such purposes only, shall be deemed to include all upfront or similar fees or original issue discount payable to all Lenders providing the Term Loans and any LIBO or Base Rate floor applicable to the Term Loans) relating to the Term Loans immediately prior to the effectiveness of the Extension by more than 0.50%, the Applicable Margin relating to the Term Loans, as applicable, shall be adjusted to be equal to the interest rate margins (which, for such purposes only, shall be deemed to include all upfront or similar fees or original issue discount payable to all Lenders providing such Extended Term Loans and any LIBOR floor applicable to such Extended Term Loans) relating to such Extended Term Loans minus 0.50% and the Applicable Margin relating to any Incremental Term Loans (if any) (other than Specified Incremental Term Loans) and any Extended Term Loans which were extended pursuant to one or more prior Extensions (if any) shall be adjusted so that the difference between the Applicable Margin relating to the Term Loans (after giving effect to the foregoing adjustment) and the Applicable Margin relating to such Incremental Term Loans (other than Specified Incremental Term Loans) and prior Extended Term Loans remains the same as immediately prior to the Extension.
(c)With respect to all Extensions consummated by the Borrower pursuant to this Section, (i) such Extensions shall not constitute voluntary or mandatory payments or prepayments for purposes of Section 5.01 or 5.02 and (ii) no Extension Offer is required to be in any minimum amount or any minimum increment, provided that (x) the Borrower may at its election specify as a condition (a “Minimum Extension Condition”) to consummating any such Extension that a minimum amount (to be determined and specified in the relevant Extension Offer in the Borrower’s sole discretion and may be waived by the Borrower) of Term Loans of any or all applicable tranches be tendered and (y) no tranche of Extended Term Loans shall be in an amount of less than $100,000,000 (the “Minimum Tranche Amount”), unless such Minimum Tranche Amount is waived by the Administrative Agent.  The Administrative Agent and the Lenders hereby consent to the transactions contemplated by this Section (including, for the avoidance of doubt, payment of any interest, fees or premium in respect of any Extended Term Loans on the such terms as may be set forth in the relevant Extension Offer) and hereby waive the requirements of any provision of this Agreement (including, without limitation, Section 2.11) or any other Credit Document that may otherwise prohibit any such Extension or any other transaction contemplated by this Section.
(d)No consent of any Lender or the Administrative Agent shall be required to effectuate any Extension, other than the consent of each Lender agreeing to such Extension with respect to one or more of its Term Loans (or a portion thereof).  All Extended Term Loans and all obligations in respect thereof shall be Obligations under this Agreement and the other Credit Documents that are secured by the Collateral on a pari passu basis with all other applicable Obligations under this Agreement and the other Credit Documents.  The Lenders hereby irrevocably authorize the Administrative Agent to 

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enter into amendments to this Agreement and the other Credit Documents with the Borrower as may be necessary in order to establish new tranches or sub-tranches in respect of Term Loans so extended and such technical amendments as may be necessary or appropriate in the reasonable opinion of the Administrative Agent and the Borrower in connection with the establishment of such new tranches or sub-tranches, in each case on terms consistent with this Section 2.16.  Without limiting the foregoing, in connection with any Extensions the respective Credit Parties shall (at their expense) amend (and the Administrative Agent is hereby directed to amend) any Mortgage that has a maturity date prior to the then latest maturity date so that such maturity date is extended to the then latest maturity date (or such later date as may be advised by local counsel to the Administrative Agent).
(e)In connection with any Extension, the Borrower shall provide the Administrative Agent at least 5 Business Days’ (or such shorter period as may be agreed by the Administrative Agent) prior written notice thereof, and shall agree to such procedures (including, without limitation, regarding timing, rounding and other adjustments and to ensure reasonable administrative management of the credit facilities hereunder after such Extension), if any, as may be established by, or acceptable to, the Administrative Agent, in each case acting reasonably to accomplish the purposes of this Section.
SECTION 3.     [Reserved].
SECTION 4.     Fees.
4.01.     Fees.  (a) The Borrower agrees to pay to the Administrative Agent such fees as may be agreed to in writing from time to time by the Borrower or any of its Subsidiaries and the Administrative Agent.
(b)At the time of the effectiveness of any Repricing Event or mandatory or voluntary prepayment of Term Loans that is consummated prior to the first anniversary of the Effective Date, the Borrower shall pay to the Administrative Agent, for the ratable account of each Lender with Term Loans that are mandatorily or voluntarily prepaid or either prepaid, repaid, converted or subjected to a pricing reduction in connection with such Repricing Event (including each Lender that withholds its consent to such Repricing Event and is replaced as a Replaced Lender under Section 2.13), a fee in an amount equal to (x) in the case of a Repricing Event described in clause (a) of the definition thereof, the Make-Whole Premium times aggregate principal amount of all Term Loans prepaid (or converted) in connection with such Repricing Event, (y) in the case of a Repricing Event described in clause (b) of the definition thereof, the Make-Whole Premium times the aggregate principal amount of all Term Loans outstanding on such date that are subject to an effective pricing reduction pursuant to such Repricing Event and (z) in the case of any other mandatory or voluntary prepayment not made in connection with a Repricing Event, 1.0% of the aggregate principal amount of all Term Loans prepaid in connection with such prepayment.  Such premiums and fees shall be earned, due and payable upon the date of the effectiveness of such Repricing Event or such prepayment.
4.02.     Termination of Commitments.  The Total Commitment (and the Term Loan Commitment of each Lender) shall terminate in its entirety on the Initial Borrowing Date (after giving effect to the incurrence of Term Loans on such date).
SECTION 5.     Prepayments; Payments; Taxes.
5.01.     Voluntary Prepayments. (a)  The Borrower may prepay the Loans, without premium or penalty (other than as set forth in clause (iv) of this Section 5.01(a)), in whole or in part at any time and from time to time on the following terms and conditions:  (i) the Borrower shall give the Administrative Agent prior to 11:00 a.m. CST at the Notice Office (x) at least one Business Day’s prior 

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written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay Base Rate Loans and (y) at least three Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay LIBOR Loans, which notice (in each case) shall specify the amount of such prepayment and the Types of Loans to be prepaid and, in the case of LIBOR Loans, the specific Borrowing or Borrowings pursuant to which such LIBOR Loans were made, and which notice the Administrative Agent shall promptly transmit to each of the Lenders; (ii) each partial prepayment of Term Loans pursuant to this Section 5.01(a) shall be in an aggregate principal amount of at least $1,000,000 and whole multiples of $500,000 in excess thereof (or such lesser amount as is acceptable to the Administrative Agent in any given case), provided that if any partial prepayment of LIBOR Loans made pursuant to any Borrowing shall reduce the outstanding principal amount of LIBOR Loans made pursuant to such Borrowing to an amount less than the Minimum Borrowing Amount applicable thereto, then such Borrowing may not be continued as a Borrowing of LIBOR Loans (and same shall automatically be converted into a Borrowing of Base Rate Loans) and any election of an Interest Period with respect thereto given by the Borrower shall have no force or effect; (iii) each prepayment of Term Loans pursuant to this Section 5.01(a) shall reduce the then remaining Scheduled Term Loan Repayments of the respective Tranche of Term Loans as directed by the Borrower; and (iv) any Repricing Event or mandatory or voluntary prepayment of Term Loans made prior to the first anniversary date of the Effective Date shall be accompanied by the payment of the premiums and fees described in Section 4.01(b).
(b)If a Lender refuses to consent to proposed changes, waivers, discharges or terminations with respect to this Agreement that have been approved by the Required Lenders as (and to the extent) provided in Section 13.12(b), the Borrower may, upon at least three Business Days’ prior written notice to the Administrative Agent at the Notice Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders), repay all Loans of such Lender (including all amounts, if any, owing pursuant to Section 2.11), together with accrued and unpaid interest, Fees and all other amounts then owing to such Lender (or owing to such Lender with respect to each Tranche which gave rise to the need to obtain such Lender’s individual consent), without penalty or premium (other than, with respect to changes, waivers, discharges, terminations or other amendments contemplated by clause (b) of the definition of “Repricing Event,” as set forth in Section 4.01(b)), in accordance with, and subject to the requirements of, Section 13.12(b), so long as the consents, if any, required by Section 13.12(b) in connection with the repayment pursuant to this clause (b) shall have been obtained.  Each prepayment of Term Loans pursuant to this Section 5.01(b) shall reduce the then remaining Scheduled Term Loan Repayments of the respective Tranche of Term Loans on a pro rata basis (based upon the then remaining principal amount of each such Scheduled Term Loan Repayment of the respective Tranche after giving effect to all prior reductions thereto).
5.02.     Mandatory Repayments.  (a) In addition to any other mandatory repayments pursuant to this Section 5.02, (x) on each Quarterly Payment Date, beginning with the Quarterly Payment Date occurring on March 31, 2015, the Borrower shall be required to repay that principal amount of its Term Loans, to the extent then outstanding, as is equal to 1⁄4 of 1% of the aggregate initial principal amounts of all Term Loans theretofore borrowed by the Borrower pursuant to Section 2.01 of this Agreement, and (y) on the Maturity Date (the Maturity Date and each Quarterly Payment Date described in preceding clause (x), each a “Scheduled Term Loan Repayment Date”), the Borrower shall be required to repay in full the entire principal amount of its Term Loans then outstanding (with each such repayment pursuant to this Section 5.02(a), as the same may be reduced as provided in Section 5.01(a) or 5.02(f), a “Scheduled Term Loan Repayment”).
(b)In addition to any other mandatory repayments pursuant to this Section 5.02, on each date after the Initial Borrowing Date upon which the Borrower or any of its Subsidiaries receives any cash proceeds from any issuance or incurrence by the Borrower or any of its Subsidiaries of 

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Indebtedness (other than Indebtedness for borrowed money permitted to be incurred pursuant to Section 10.04), the Borrower shall be required to repay principal of outstanding Term Loans in an amount equal to 100% of the Net Cash Proceeds of the respective incurrence of Indebtedness shall be applied on such date as a mandatory repayment in accordance with the requirements of Sections 5.02(f) and (g).
(c)In addition to any other mandatory repayments pursuant to this Section 5.02, if the Borrower or any of its Subsidiaries receives the following, the Borrower shall be required to repay principal of outstanding Term Loans:
(i)with respect to any cash proceeds from any Asset Sale (including the Initial Oxford Dropdown but excluding all other Permitted MLP Transfers), an amount equal to 100% of the Net Sale Proceeds therefrom shall be applied within three Business Days after such date as a mandatory repayment in accordance with the requirements of Sections 5.02(f) and (g); provided, however, that such Net Sale Proceeds shall not be required to be so applied on such date so long as no Event of Default then exists and the Borrower has delivered a certificate to the Administrative Agent on such date stating that such Net Sale Proceeds shall be used to invest in or replace or restore any properties or assets in respect of which such Net Sale Proceeds were paid within 180 days following the date of the receipt of such Net Sale Proceeds (which certificate shall set forth the estimates of the Net Sale Proceeds to be so expended), and provided further, that if all or any portion of such Net Sale Proceeds not required to be so applied pursuant to the preceding proviso are not so used within 180 days after the date of the receipt of such Net Sale Proceeds (or such earlier date, if any, as the Borrower or the relevant Subsidiary determines not to reinvest the Net Sale Proceeds relating to such Asset Sale as set forth above), or, if later, within 180 days after the Borrower or such Subsidiary has entered into a binding commitment (prior to the end of the referenced 180-day period) to reinvest such proceeds, such remaining portion shall be applied on the last day of such period (or such earlier date, as the case may be) as provided above in this Section 5.02(c) without regard to the immediately preceding proviso; and
(ii)    with respect to any cash proceeds from any Permitted MLP Transfer, other than the Initial Oxford Dropdown, an amount equal to 100% of the Net Sale Proceeds therefrom shall be applied within three Business Days after such date as a mandatory repayment in accordance with the requirements of Sections 5.02(f) and (g).
(d)In addition to any other mandatory repayments pursuant to this Section 5.02, on each Excess Cash Payment Date, the Borrower shall be required to repay principal of outstanding Term Loans in an amount equal to the Applicable Excess Cash Flow Percentage of the Excess Cash Flow for the related Excess Cash Payment Period as a mandatory repayment in accordance with the requirements of Sections 5.02(f) and (g).
(e)In addition to any other mandatory repayments pursuant to this Section 5.02, within three Business Days after each date on or after the Initial Borrowing Date upon which the Borrower or any of its Subsidiaries receives any cash proceeds from any Recovery Event in excess of $5,000,000, the Borrower shall be required to repay principal of outstanding Term Loans in an amount equal to 100% of the Net Cash Proceeds from such Recovery Event as a mandatory repayment in accordance with the requirements of Sections 5.02(f) and (g); provided, however, that such Net Cash Proceeds shall not be required to be so applied on such date so long as no Event of Default then exists and the Borrower has delivered a certificate to the Administrative Agent on such date stating that such Net Cash Proceeds shall be used to replace or restore any properties or assets or reimbursements for business interruption expenses in respect of which such Net Cash Proceeds were paid within 180 days following the date of the receipt of such Net Cash Proceeds (which certificate shall set forth the estimates of the Net Cash Proceeds to be so expended), and provided further, that if all or any portion of such Net Cash 

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Proceeds not required to be so applied pursuant to the preceding proviso are not so used within 180 days after the date of the receipt of such Net Cash Proceeds (or such earlier date, if any, as the Borrower or the relevant Subsidiary determines not to reinvest the Net Cash Proceeds relating to such Recovery Event as set forth above), such remaining portion shall be applied on the last day of such period (or such earlier date, as the case may be) as provided above in this Section 5.02(e) without regard to the immediately preceding proviso.
(f)Each amount required to be applied pursuant to Sections 5.02(b), (c)(i), (d) and (e) in accordance with this Section 5.02(f) shall be applied to repay the outstanding principal amount of Term Loans.  The amount of each principal repayment of Term Loans made as required by Sections 5.02(b), (c)(i), (d) and (e) shall be applied (i) pro rata to each Tranche of Term Loans (based upon the then outstanding principal amounts of the respective Tranches of Term Loans) and (ii) to reduce the then remaining Scheduled Term Loan Repayments of the respective Tranche of Term Loans on a pro rata basis (based upon the then remaining principal amounts of the Scheduled Term Loan Repayments of such Tranche of Term Loans after giving effect to all prior reductions thereto).  The amount of each principal repayment of Term Loans made as required by Section 5.02(c)(ii) shall be applied (i) first to reduce the then remaining Scheduled Term Loan Repayments of the Term Loans incurred on the Effective Date (based upon the then remaining principal amounts of the Scheduled Term Loan Repayments of such Term Loans after giving effect to all prior reductions thereto), (ii) second to reduce the then remaining Scheduled Term Loan Repayments of Specified Incremental Term Loans (if any) (based upon the then remaining principal amounts of the Scheduled Term Loan Repayments of such Specified Incremental Term Loans after giving effect to all prior reductions thereto) and (iii) third to reduce the then remaining Scheduled Term Loan Repayments of Incremental Term Loans that are not Specified Incremental Term Loans (if any) (based upon the then remaining principal amounts of the Scheduled Term Loan Repayments of such Incremental Term Loans after giving effect to all prior reductions thereto).
(g)With respect to each repayment of Loans required by this Section 5.02, the Borrower may designate the Types of Loans of the respective Tranche which are to be repaid and, in the case of LIBOR Loans, the specific Borrowing or Borrowings of the respective Tranche pursuant to which such LIBOR Loans were made, provided that: (i) repayments of LIBOR Loans pursuant to this Section 5.02 may only be made on the last day of an Interest Period applicable thereto unless all LIBOR Loans of the respective Tranche with Interest Periods ending on such date of required repayment and all Base Rate Loans of the respective Tranche have been paid in full; (ii) if any repayment of LIBOR Loans made pursuant to a single Borrowing shall reduce the outstanding LIBOR Loans made pursuant to such Borrowing to an amount less than the Minimum Borrowing Amount applicable thereto, such Borrowing shall be automatically converted into a Borrowing of Base Rate Loans; and (iii) each repayment of any Loans made pursuant to a Borrowing shall be applied pro rata among such Loans.  In the absence of a designation by the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in its sole discretion.
(h)In addition to any other mandatory repayments pursuant to this Section 5.02, all then outstanding Loans of a respective Tranche shall be repaid in full on the Maturity Date for such Tranche of Loans.
(i)Notwithstanding anything to the contrary contained in this Section 5.02 or elsewhere in this Agreement (including, without limitation, in Section 13.12), each Term Loan Lender shall have the option, in its sole discretion (which election to waive prepayment shall be received by the Administrative Agent within two Business Days of Administrative Agent’s notice to the Term Loan Lenders of a Waivable Mandatory Repayment), to waive its pro rata share of a mandatory repayment of Term Loans which is to be made pursuant to Sections 5.02(b), (d) and/or (e) (each such repayment, a 

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“Waivable Mandatory Repayment”) upon the terms and provisions set forth in this Section 5.02(i).  Notwithstanding anything to the contrary contained above, if one or more Term Loan Lenders waives its right to receive all or any part of any Waivable Mandatory Repayment, but fewer than all the Term Loan Lenders waive in full their right to receive 100% of the total repayment otherwise required with respect to the Term Loans, then of the amount actually applied to the repayment of Term Loans of the Term Loan Lenders that have waived all or any of part their right to receive 100% of such repayment, such amount shall be applied to each then outstanding Borrowing of Term Loans on a pro rata basis (so that each Term Loan Lender shall, after giving effect to the application of the respective repayment, maintain the same percentage (as determined for such Term Loan Lender, but not the same percentage as the other Term Loan Lenders hold and not the same percentage held by such Term Loan Lender prior to repayment) of each Borrowing of Term Loans which remains outstanding after giving effect to such application).
5.03.     Method and Place of Payment.  Except as otherwise specifically provided herein, all payments under this Agreement and under any Note shall be made to the Administrative Agent for the account of the Lender or Lenders entitled thereto not later than 11:00 a.m. CST on the date when due and shall be made in Dollars in immediately available funds at the Payment Office.  Whenever any payment to be made hereunder or under any Note shall be stated to be due on a day which is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day and, with respect to payments of principal, interest shall be payable at the applicable rate during such extension.
5.04.     Net Payments.  (a) All payments made by the Borrower hereunder and under any Note will be made without setoff, counterclaim or other defense, unless so provided under this Agreement or any other Credit Document.  Except as required by applicable law or regulation or the administration or interpretation thereof, all payments made by the Borrower or any other Credit Party hereunder will be made free and clear of, and without deduction or withholding for, any Taxes.  If any Taxes are so levied or imposed in connection with any payment made by the Borrower or any other Credit Party hereunder or under any other Credit Document, the Borrower agrees to pay the full amount of such Taxes to the appropriate taxing authority, and if such Taxes are Indemnified Taxes or Other Taxes, the Borrower or such Credit Party shall pay to the Recipient such additional amounts as may be necessary so that such payment, after withholding or deduction for or on account of such Indemnified Taxes or Other Taxes (after taking into account any withholding or deduction payable pursuant to this sentence), will not be less than the amount such Recipient would have received absent such withholding or deduction.  The Borrower shall timely pay to the relevant taxing authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for, Other Taxes. As promptly as practicable after any payment of Taxes by any Credit Party to a taxing authority as provided in this Section 5.04(a), such Credit Party shall deliver to the Administrative Agent copies of tax receipts issued by the applicable taxing authority evidencing such payment by such Credit Party, if available, or such other evidence reasonably satisfactory to the Administrative Agent.  The Borrower shall indemnify and hold harmless each Lender and the Administrative Agent, within 10 Business Days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 5.04) payable or paid by such Lender or Administrative Agent or required to be withheld or deducted from a payment to such Lender or Administrative Agent and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability, showing in reasonable detail the basis for the calculation thereof, delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.
(b)Each Lender that is not a United States person (as such term is defined in Section 7701(a)(30) of the Code) (each, a “Foreign Lender”) for U.S. Federal income tax purposes agrees, to the extent it is legally entitled to do so, to deliver to the Borrower and the Administrative Agent on or 

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prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent) (i) two accurate and complete original signed copies of Internal Revenue Service Form W-8ECI or Internal Revenue Service Form W-8BEN or Form W-8BEN-E (claiming eligibility for benefits under an income tax treaty to which the United States is a party) (or successor forms) certifying to such Lender’s entitlement as of such date to a complete exemption from United States withholding tax with respect to payments to be made under any Credit Document, (ii) if the Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10-percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and is not delivering forms pursuant to clause (i) above, (x) a certificate substantially in the form of Exhibit D (any such certificate, a “Section 5.04(b)(ii) Certificate”) and (y) two accurate and complete original signed copies of Internal Revenue Service Form W 8BEN or Form W-BEN-E (with respect to the portfolio interest exemption) (or successor form) certifying to such Lender’s entitlement as of such date to a complete exemption from United States withholding tax with respect to payments of interest to be made under any Credit Document, or (iii) in the case of a Foreign Lender that is not the beneficial owner of payments made under any Credit Document (including a partnership or a participating Lender) (1) two accurate and complete original signed copies of Internal Revenue Service Form W-8IMY on behalf of itself and (2) the relevant forms prescribed in clauses (i) and (ii) above, or an Internal Revenue Service Form W-9, as applicable, that would be required of each such beneficial owner or partner of such partnership if such beneficial owner or partner were a Lender; provided, however, that if the Lender is a partnership and one or more of its partners are claiming the exemption for portfolio interest under Section 881(c) of the Code, such Lender may provide a Section 5.04(b)(ii) Certificate on behalf of such partners.  In addition, if a payment made to a Lender under any Credit Document would be subject to U.S. Federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) as may be necessary for the Borrower or Administrative Agent to determine that such Lender has or has not complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of the preceding sentence, “FATCA” shall include any amendments made to FATCA after the Effective Date. If a Lender is not a Foreign Lender, such Lender shall deliver to the Borrower and the Administrative Agent two accurate and complete original signed copies of Internal Revenue Service Form W-9 certifying that such Lender is exempt from U.S. Federal backup withholding tax.  Furthermore, any recipient that is entitled to an exemption from, or reduction of, any applicable non-United States withholding tax with respect to any payments under any Credit Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without, or at a reduced rate of, such non-United States withholding.  In addition, each Lender agrees that from time to time after the Effective Date, when a lapse in time or change in circumstances renders the previous certification obsolete or inaccurate in any material respect, such Lender will deliver to the Borrower and the Administrative Agent two new accurate and complete original signed copies of Internal Revenue Service Form W-8ECI, Form W-8BEN or Form W-8BEN-E, Form W-8IMY, Form W-9 and a Section 5.04(b)(ii) Certificate, as the case may be, and such other forms as may be required in order to confirm or establish the entitlement of such Lender to a continued exemption from or reduction in United States withholding tax with respect to payments under this Agreement, or such Lender shall immediately notify the Borrower and the Administrative Agent of its inability to deliver any such Form or Certificate, in which case such Lender shall not be required to deliver any such Form or Certificate pursuant to this Section 5.04(b).

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(c)Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Taxes attributable to such Lender (but only to the extent that any Credit Party has not already indemnified the Administrative Agent for such Taxes and without limiting the obligation of the Credit Parties to do so) and (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 13.04 relating to the maintenance of a Participant Register, in either case, that are payable or paid by the Administrative Agent in connection with any Credit Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (c).
(d)If the Administrative Agent, any Lender or any other Recipient of a payment under any Credit Document determines, in its sole discretion, that it has received a refund of any Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section, it shall pay to the Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of the relevant Recipient, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the Borrower, upon the request of the relevant Recipient, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Recipient in the event the Recipient is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (d), in no event will the indemnified party be required to pay any amount to the Borrower pursuant to this paragraph (d) the payment of which would place the indemnified party in a less favorable net after-tax position than the indemnified party would have been in if the Taxes subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Taxes had never been paid.  This subsection shall not be construed to require any such recipient to make available its tax returns (or any other information relating to its taxes that it deems confidential) to the Borrower or any other Person.
(e)Each party's obligations under this Section 5.04 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under the Credit Documents.
SECTION 6.      Conditions Precedent to Credit Events on the Initial Borrowing Date.
The obligation of each Lender to make Loans on the Initial Borrowing Date is subject at the time of the making of such Loans to the satisfaction of the following conditions:
6.01.     Effective Date; Notes.  On or prior to the Initial Borrowing Date, the Effective Date shall have occurred as provided in Section 13.10.
6.02.     Representations and Warranties.  At the time of each such Credit Event on the Initial Borrowing Date and also after giving effect thereto, all representations and warranties shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on the date of such Credit Event (it being understood and agreed that (x) any such representation 

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or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date and (y) any such representation or warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such date).
6.03.     Officer’s Certificate.  On the Initial Borrowing Date, the Administrative Agent shall have received a certificate, substantially in the form of Exhibit F, dated the Initial Borrowing Date and signed on behalf of the Borrower by an Authorized Officer of the Borrower, certifying on behalf of the Borrower that all of the conditions in Sections 6.06, 6.07 and 7.01 have been satisfied on such date.
6.04.     Opinions of Counsel.  On the Initial Borrowing Date, the Administrative Agent shall have received (i) from Holland & Hart LLP, special counsel to the Credit Parties, an opinion addressed to the Administrative Agent, the Collateral Agent and each of the Lenders and dated the Initial Borrowing Date covering the matters set forth in Exhibit E and such other matters incident to the transactions contemplated herein as the Administrative Agent may reasonably request, other than matters that are governed by New York law, which shall be covered by an opinion to be provided by Squire Patton Boggs (US) LLP, (ii) from local counsel in each state (other than Delaware) in which a Credit Party is organized, an opinion, in form and substance reasonably satisfactory to the Administrative Agent, addressed to the Administrative Agent and each of the Lenders and dated the Initial Borrowing Date covering such matters relative to such Credit Party incident to the transactions contemplated herein as the Administrative Agent may reasonably request, and (iii) from local counsel in each state or province in which a Mortgaged Property or Mortgaged Coal Property is located, an opinion in form and substance reasonably satisfactory to the Collateral Agent addressed to the Collateral Agent in its capacity as such, and each of the Lenders, dated the Initial Borrowing Date and covering such matters incident to the transactions contemplated herein as the Collateral Agent may reasonably request including but not limited to the enforceability of each Mortgage and Mineral Rights Mortgage.
6.05.     Company Documents; Proceedings; etc.  (a) On the Initial Borrowing Date, the Administrative Agent shall have received a certificate from each Credit Party, dated the Initial Borrowing Date, signed by the Secretary or any Assistant Secretary of such Credit Party, in the form of Exhibit F with appropriate insertions, together with copies of the certificate or articles of incorporation and by-laws (or other equivalent organizational documents), unanimous shareholder declarations or shareholder agreements, as applicable, of such Credit Party and the resolutions of such Credit Party referred to in such certificate, and each of the foregoing shall be in form and substance reasonably acceptable to the Administrative Agent.
(b)On the Initial Borrowing Date, all Company and legal proceedings and all instruments and agreements in connection with the transactions contemplated by this Agreement and the other Documents shall be reasonably satisfactory in form and substance to the Administrative Agent, and the Administrative Agent shall have received all information and copies of all documents and papers, including records of Company proceedings, governmental approvals, good standing certificates and bring-down documentation, if any, which the Administrative Agent reasonably may have requested in connection therewith, such documents and papers where appropriate to be certified by proper Company or Governmental Authorities.
6.06.      Consummation of the Refinancing.  (a) On or prior to the Initial Borrowing Date and concurrently with the incurrence of Loans, all Indebtedness (other than Indebtedness otherwise allowed pursuant to Section 10.04) of the Borrower in respect of its 10.75% senior secured notes due 2018 (including all fees and expenses incurred in connection therewith) shall have been repaid in full, together with all fees and other amounts owing thereon.

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(b)    On the Initial Borrowing Date and concurrently with the incurrence of Loans on such date, all security interests in respect of, and Liens securing, the Indebtedness to be refinanced pursuant to the Refinancing created pursuant to the security documentation relating thereto shall be terminated and released, and the Administrative Agent shall have received all such releases as may have been reasonably requested by the Administrative Agent, which releases shall be in form and substance reasonably satisfactory to the Administrative Agent.
(c)    The Administrative Agent shall have received evidence in form, scope and substance reasonably satisfactory to it that the matters set forth in this Section 6.06 have been satisfied on the Initial Borrowing Date.
6.07.     Approvals.  On or prior to the Initial Borrowing Date, all necessary governmental (domestic and foreign) and material third party approvals and/or consents in connection with the Financing Transaction, the other transactions contemplated hereby and the granting of Liens under the Credit Documents shall have been obtained and remain in effect, and all applicable waiting periods with respect thereto shall have expired without any action being taken by any competent authority which restrains, prevents or imposes materially adverse conditions upon the consummation of the Financing Transaction or the other transactions contemplated by the Documents or otherwise referred to herein or therein.
6.08.     Guaranty and Collateral Agreement; Intercreditor.  (a) On the Initial Borrowing Date, the Borrower and each Wholly-Owned Domestic Subsidiary of the Borrower (other than Immaterial Subsidiaries) shall have duly authorized, executed and delivered (a) a Guaranty and Collateral Agreement in the form of Exhibit G (as amended, modified, restated and/or supplemented from time to time, the “Guaranty and Collateral Agreement”) covering all of such Credit Party’s GCA Collateral, together with (subject to clause (b) below):
(i)the delivery of proper financing statements (Form UCC-1 or the equivalent) fully completed for filing under the UCC or other appropriate filing offices of each jurisdiction as are necessary to perfect the security interests purported to be created by the Guaranty and Collateral Agreement in such GCA Collateral in which a security interest may be perfected by such a filing;
(ii)to the extent required by the Guaranty and Collateral Agreement, (x) any certificates representing Pledged Stock (as defined in the Guaranty and Collateral Agreement), together with executed and undated endorsements of transfer and (y) any promissory notes for which the Borrower or any Subsidiary is a payee, together with executed and undated allonges;
(iii)copies (Form UCC-11) or equivalent reports as of a recent date, listing all effective financing statements that name any Credit Party as debtor and that are filed in the jurisdictions where the applicable financing statements referred to in clause (i) above will be filed; and
(iv)evidence of the completion of all other recordings and filings of, or with respect to, the Guaranty and Collateral Agreement as are necessary to perfect the security interests intended to be created by the Guaranty and Collateral Agreement.
(b)Notwithstanding anything to the contrary contained in this Section 6, to the extent any GCA Collateral is not provided (or any related required actions under Section 6.04, 6.08 or 6.09 are not taken) on the Initial Borrowing Date after the Credit Parties’ use of commercially reasonable efforts to do so or without undue burden or expense, the delivery of such GCA Collateral (and the taking of the related required actions) shall not constitute a condition precedent to the extensions of credit under 

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this Agreement on the Initial Borrowing Date but shall instead be required to be delivered (or taken) after the Initial Borrowing Date in accordance with the requirements of Section 9.11, except that (A) with respect to the perfection of security interests in UCC Financing Collateral, such Credit Party shall be obligated to deliver or cause to be delivered, necessary UCC financing statements to the Administrative Agent or to irrevocably authorize and to cause the applicable Credit Parties to irrevocably authorize, the Administrative Agent to file necessary UCC financing statements and (B) with respect to perfection of security interests in Stock Certificates, such Credit Party shall be obligated to use commercially reasonable efforts to deliver to the Administrative Agent Stock Certificates together with undated stock powers in blank.
(c)The Intercreditor Agreements shall have been executed and delivered, in form and substance reasonably satisfactory to the Administrative Agent, by the Administrative Agent, on behalf of the Lenders, the Borrower, the other Credit Parties party thereto (if applicable) and the Notes Representative (in the case of the First Lien Intercreditor Agreement) and the ABL Representative and Notes Representative (in the case of the ABL Intercreditor Agreement).
6.09.     Mortgage; Title Insurance; Landlord Waivers; etc.  (a) Subject to the provisions of Section 6.09(b) below, on the Initial Borrowing Date, the Collateral Agent shall have received:
(i)fully executed counterparts of Mortgages, and to the extent required by the Collateral Agent, corresponding UCC Fixture Filings and As-Extracted Collateral Filings (or, if UCC Fixture Filings and As-Extracted Collateral Filings are not available in the applicable jurisdiction, equivalent filings as available in such jurisdiction), and any similar filings as shall be required by local law, in form and substance reasonably satisfactory to the Collateral Agent, which Mortgages and UCC Fixture Filings (or, in the case of UCC Fixture Filings, any other equivalent filings, as available in each applicable jurisdiction) shall cover each Real Property owned or leased by the Borrower or any of its Subsidiaries and designated as a “Mortgaged Property” on Schedule 8.12 hereto, together with evidence that counterparts of such Mortgages and UCC Fixture Filings (or, in the case of UCC Fixture Filings, any other equivalent filings, as available in each applicable jurisdiction) and, if applicable, As-Extracted Collateral Filings (or, in the case of UCC Fixture Filings and As-Extracted Collateral Filings, any other equivalent filings, as available in each applicable jurisdiction) have been delivered to the title insurance company insuring the Lien of such Mortgage for recording;
(ii)at the request of the Administrative Agent, a Mortgage Policy relating to each Mortgage of the Mortgaged Property referred to above, issued by a title insurer reasonably satisfactory to the Collateral Agent, in an insured amount satisfactory to the Collateral Agent not to exceed 110% of the Fair Market Value of the Mortgaged Property and insuring the Collateral Agent that the Mortgage on each such Mortgaged Property is a valid and enforceable first priority mortgage lien on such Mortgaged Property, free and clear of all defects and encumbrances except Permitted Encumbrances, with each such Mortgage Policy (1) to be in form and substance reasonably satisfactory to the Collateral Agent, (2) to include, to the extent applicable or available in the applicable jurisdiction, supplemental endorsements (including, without limitation, endorsements relating to future advances under this Agreement and the Loans, usury, first loss, tax parcel, subdivision, zoning, contiguity, variable rate, doing business, public road access, environmental lien, mortgage tax and so-called comprehensive coverage over covenants and restrictions and for any other matters that the Collateral Agent in its discretion may reasonably request), (3) to not include the “standard” title exceptions, other than a survey exception, and (4) to provide for affirmative insurance and such reinsurance or coinsurance as the Collateral Agent in its discretion may reasonably request;

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(iii)to induce the title company to issue the Mortgage Policies referred to in subsection (ii) above, such affidavits, certificates, information and instruments of indemnification (including, without limitation, a so-called “gap” indemnification) as are customarily required by the Title Company, together with payment by the Borrower of all Mortgage Policy premiums, search and examination charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of such Mortgages and issuance of such Mortgage Policies;
(iv) to the extent obtainable on or prior to the Initial Borrowing Date, (i) fully executed landlord waivers and/or bailee agreements in respect of those Leaseholds of the Borrower or any of its Subsidiaries designated as “Leaseholds Subject to Landlord Waivers” on Schedule 8.12, each of which landlord waivers and/or bailee agreements shall be in form and substance reasonably satisfactory to the Collateral Agent and (ii) all Mortgaged Coal Property Support Documents as the Administrative Agent may request with respect to each lease or grant of mineral rights as to which the Borrower or any of its Subsidiaries is a lessee or grantee;
(v)to the extent requested by the Administrative Agent, copies of all leases in which Borrower or any of its Subsidiaries holds the lessor’s interest or other agreements relating to possessory interests, if any; provided that, to the extent any of the foregoing affect such Mortgaged Property, to the extent requested by the Administrative Agent, such agreements shall be subordinate to the Lien of the Mortgage to be recorded against such Mortgaged Property, either expressly by the terms of such agreements or pursuant to subordination, non-disturbance and attornment agreements (with any such agreements being reasonably acceptable to the Administrative Agent), but only to the extent that any amendments to such leases or agreements as are necessary to comply with such condition, or subordination, non-disturbance and attornment agreements are obtainable by the Borrower using its commercially reasonable efforts; and
(vi)a “life of loan” Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each Mortgaged Property that is subject to federal flood insurance laws and requirements, in form and substance acceptable to the Administrative Agent (together with notice about special flood hazard area status and flood disaster assistance, duly executed by the Borrower and any applicable Subsidiary and evidence of flood insurance, in the event any improved parcel of Mortgaged Property is located in a special flood hazard area).
(b)Notwithstanding anything to the contrary contained in this Section 6, to the extent any Mortgage or any other documentation set forth in this Section 6.09 (other than Section 6.09(a)(vi)) is not provided (or any related required actions under this Section 6.09 or Section 6.04 are not taken) on the Initial Borrowing Date, the delivery of such Mortgages and documentation (and the taking of the related required actions) shall not constitute a condition precedent to the extensions of credit under this Agreement on the Initial Borrowing Date but shall instead be required to be delivered (or taken) after the Initial Borrowing Date in accordance with the requirements  of Section 9.11 (including the deadlines for delivery of such Mortgages and other documentation and the taking of such actions), except that with respect to the perfection of security interests in UCC Fixture Filing collateral and As-Extracted Collateral, such Credit Party shall be obligated to deliver or cause to be delivered, UCC Fixture Filings and necessary As-Extracted Collateral Filings to the Administrative Agent or to irrevocably authorize and to cause the applicable Credit Parties to irrevocably authorize, the Administrative Agent to file necessary UCC Fixture Filings and As-Extracted Collateral Filings.
6.10.     Financial Statements; Pro Forma Balance Sheet; Projections.  On or prior to the Initial Borrowing Date, the Administrative Agent shall have received true and correct copies of the historical financial statements, the pro forma financial statements and the Projections referred to in Sections 8.05(a) and (d), which historical financial statements, pro forma financial statements and 

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Projections shall be in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders.
6.11.     Solvency Certificate; Insurance Certificates, etc.  On the Initial Borrowing Date, the Administrative Agent shall have received:
(i)a solvency certificate from the chief financial officer of the Borrower in the form of Exhibit H hereto; and
(ii)certificates of insurance complying with the requirements of Section 9.03 for the business and properties of the Borrower and its Subsidiaries.
6.12.     Fees, etc.  On the Initial Borrowing Date, the Borrower shall have paid (or shall make such payments from the proceeds of the Loans) to the Administrative Agent (and its relevant affiliates) and each Lender all costs, fees and expenses (including, without limitation, legal fees and expenses and the fees and expenses of any other advisors) and other compensation required to be paid to the Administrative Agent or such Lender to the extent then due.
6.13.     Patriot Act.  The Administrative Agent and the Lenders shall have received all documentation and other information requested by the Administrative Agent or the respective Lenders that is required by bank regulatory authorities under the applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act.
In determining the satisfaction of the conditions specified in this Section 6, to the extent any item is required to be satisfactory to any Lender, such item shall be deemed satisfactory to each Lender that has not notified the Administrative Agent in writing prior to the occurrence of the Initial Borrowing Date that the respective item or matter does not meet its satisfaction.  Upon the Administrative Agent’s good faith determination that the conditions specified in this Section 6 have been met (after giving effect to the preceding sentence), then the Initial Borrowing Date shall have been deemed to have occurred, regardless of any subsequent determination that one or more of the conditions thereto had not been met (although the occurrence of the Initial Borrowing Date shall not release the Borrower from any liability for failure to satisfy one or more of the applicable conditions contained in this Section 6).
6.14.     Credit Documentation.  Schedules and Exhibits to this Agreement shall be completed prior to the Initial Borrowing Date in form and substance satisfactory to the Administrative Agent.
SECTION 7.       Conditions Precedent to All Credit Events.
The obligation of each Lender to make Loans on any date occurring after the Initial Borrowing Date is subject, at the time of each such Credit Event (except as hereinafter indicated), to the satisfaction of the following conditions:
7.01.     No Default; Representations and Warranties.  At the time of each such Credit Event and also after giving effect thereto (i) there shall exist no Default or Event of Default and (ii) all representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on the date of such Credit Event (it being understood and agreed that (x) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date and (y) any representation or warranty that is qualified as 

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to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such date).
7.02.     Notice of Borrowing.  Prior to the making of each Loan, the Administrative Agent shall have received a Notice of Borrowing meeting the requirements of Section 2.03(a).  The acceptance of the benefits of each Credit Event shall constitute a representation and warranty by the Borrower to the Administrative Agent and each of the Lenders that all the conditions specified in Section 6 (with respect to Credit Events on the Initial Borrowing Date) and in this Section 7 (with respect to Credit Events on or after the Initial Borrowing Date) and applicable to such Credit Event are satisfied as of that time.  All of the certificates, legal opinions and other documents and papers referred to in Section 6 and in this Section 7, unless otherwise specified, shall be delivered to the Administrative Agent at the Notice Office for the account of each of the Lenders.
SECTION 8.     Representations, Warranties and Agreements.
To induce the Lenders to enter into this Agreement and to make the Loans, the Borrower makes the following representations, warranties and agreements, in each case after giving effect to the Financing Transaction, with the occurrence of each Credit Event on or after the Initial Borrowing Date being deemed to constitute a representation and warranty that the matters specified in this Section 8 are true and correct in all material respects on and as of the Initial Borrowing Date and on the date of each such other Credit Event (it being understood and agreed that (x) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date and (y) any representation or warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such date).
8.01.     Organization; Powers.  The Borrower and its Material Subsidiaries (i) are duly organized, validly existing and in good standing under the respective laws of the jurisdictions of their organization, (ii) have all requisite power and authority to own their respective property and assets and to transact the business in which they are engaged and presently propose to engage and (iii) are duly qualified and authorized to do business and are in good standing in each jurisdiction where the ownership, leasing or operation of their respective properties or the conduct of their businesses requires such qualifications, except for failures to be so qualified or authorized that, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.
8.02.     Authorization; Enforceability.  Each Credit Party has the Company power and authority to execute, deliver and perform the terms and provisions of each of the Documents to which it is party and has taken all necessary Company action to authorize its execution, delivery and performance of each of such Documents to which it is a party.  Each Credit Party has duly executed and delivered the Acquisition Agreement, the Credit Documents and the Refinancing Documents to which, in each case, it is party, and each of such Documents constitutes its legal, valid and binding obligation enforceable in accordance with its terms (provided, that, with respect to the creation and perfection of security interests with respect to Stock Certificates of Foreign Subsidiaries, only to the extent enforceability of such obligation with respect to which Stock Certificate of Foreign Subsidiaries is governed by the UCC or PPSA), except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).
8.03.     No Violation.  Neither the execution, delivery or performance by any Credit Party of the Documents to which it is a party, nor the consummation of the Financing Transaction, nor compliance by it with the terms and provisions thereof, will (i) contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court or Governmental Authority, 

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(ii) violate or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under any Lien (except Permitted Liens and Liens pursuant to the Security Documents) upon any of the property or assets of any Credit Party pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other material agreement, contract or instrument, in each case to which any Credit Party is a party or by which it or any of its property or assets is bound, (iii)  result in the creation or imposition of (or the obligation to create or impose) any Lien pursuant to the terms of the documents described in clause (ii) immediately above, or (iv) violate any provision of the certificate or articles of incorporation, certificate of formation, limited liability company agreement or by-laws (or equivalent organizational documents), as applicable, of any Credit Party except in each case referred to in clauses (i), (ii) and (iii) to the extent that any such violation or breach would not reasonably be expected to have a Material Adverse Effect.
8.04.     Approvals.  No order, consent, approval, license, authorization or validation of, or filing, recording or registration with (except for (x) those that have otherwise been obtained or made on or prior to the Initial Borrowing Date and which remain in full force and effect on the Initial Borrowing Date and (y) filings which are necessary to perfect the security interests created under the Security Documents), or exemption by, any Governmental Authority is required to be obtained or made by, or on behalf of, any Credit Party to authorize, or is required to be obtained or made by, or on behalf of, any Credit Party in connection with, (i) the execution, delivery and performance of any Credit Document or Refinancing Document or (ii) the legality, validity, binding effect or enforceability of any such Document.
8.05.     Financial Statements; Financial Condition; Undisclosed Liabilities; Projections.  (a) (i) The audited consolidated balance sheet of the Borrower for the Fiscal Years ending December 31, 2011, December 31, 2012, and December 31, 2013, and the related consolidated statements of income and cash flows and changes in shareholders’ equity of the Borrower for the Fiscal Years of the Borrower ended on such dates, in each case furnished to the Lenders prior to the Effective Date, present fairly in all material respects the consolidated financial position of the Borrower at the date of said financial statements and the results for the respective periods covered thereby and (ii) the unaudited consolidated balance sheet of the Borrower at September 30, 2014 and the related consolidated statements of income and cash flows and changes in shareholders’ equity of the Borrower for the three-month period ended on such date, furnished to the Lenders prior to the Effective Date, present fairly in all material respects the consolidated financial condition of the Borrower at the date of said financial statements and the results for the period covered thereby, subject to normal year-end adjustments.  All such financial statements have been prepared in accordance with GAAP consistently applied except to the extent provided in the notes to said financial statements and subject, in the case of the unaudited financial statements, to normal year-end audit adjustments (all of which are of a recurring nature and none of which, individually or in the aggregate, would be material) and the absence of footnotes.
(ii)    The pro forma consolidated financial statements of the Borrower and its Subsidiaries furnished to the Lenders prior to the Initial Borrowing Date, present a good faith estimate of both the pro forma consolidated financial position of the Borrower and its Subsidiaries as of such date and the pro forma consolidated results of operations of the Borrower and its Subsidiaries for the period covered thereby.
(b)On and as of the date of the Initial Borrowing Date, and after giving effect to the Financing Transaction and to all Indebtedness (including the Loans) being incurred or assumed on such date, the Borrower on a consolidated basis with its Subsidiaries will be Solvent.
(c)Except as fully disclosed in the financial statements delivered pursuant to Section 8.05(a), and except for the Indebtedness incurred under this Agreement, there were as of the Initial Borrowing Date no liabilities or obligations with respect to the Borrower or any of their respective 

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Subsidiaries of any nature whatsoever (whether absolute, accrued, contingent or otherwise and whether or not due) that, either individually or in the aggregate, would reasonably be expected to be material to the Borrower or any of its Subsidiaries.
(d)The Projections delivered to the Administrative Agent and the Lenders prior to the Effective Date were prepared in good faith and were based on assumptions believed by the Borrower to be reasonable at the time made in light of the conditions and the Borrower’s knowledge existing at the time of the preparation of the Projections.  On the Effective Date, the Borrower believes that the Projections are reasonable, it being recognized by the Lenders, however, that projections as to future events are not to be viewed as facts and that the actual results during the period or periods covered by the Projections may differ from the projected results included in such Projections.
(e)Since December 31, 2013, but for this purpose treating the Financing Transaction as if it had been consummated prior thereto, there has been no change in the business, assets, operations or financial condition of the Borrower and its Subsidiaries, taken as a whole, which would reasonably be expected to have a Material Adverse Effect.
(f)On the Initial Borrowing Date, the Borrower has not received notice from any party to the Acquisition Agreement that there has been a Company Material Adverse Effect.
8.06.     Litigation.  There are no actions, suits or proceedings pending or, to the knowledge of the Borrower, threatened (i) on the Initial Borrowing Date with respect to the Financing Transaction or any Credit Document or Refinancing Document or (ii) that has had, or would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.
8.07.     Disclosure.  No factual information (taken as a whole) furnished by the Borrower or its Affiliates in writing to the Administrative Agent or any Lender for purposes of, or in connection with, this Agreement, the other Credit Documents or the Financing (as modified by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided, it being understood and agreed that for purposes of this Section 8.07, such factual information shall not include the Projections, any estimates (including financial estimates, forecasts and other forward-looking information) any pro forma financial information or information of a general economic or general industry nature or any information regarding the Oxford MLP, the Oxford GP, their financial condition or businesses, it being understood that all information that the Borrower has furnished to the Administrative Agent or any Lender. regarding the Oxford MLP, the Oxford GP, their financial condition or businesses is information that the Borrower has received from the parties to the Acquisition Agreement, the Oxford MLP or the Oxford GP or their representatives.
8.08.     Use of Proceeds; Margin Regulations.  (a) All proceeds of the Term Loans will be used by the Borrower to finance the Refinancing, to pay fees and expenses incurred in connection with the Transaction, and for other corporate purposes (including, at the election of the Borrower, to finance the Acquisition).
(b)No part of any Credit Event (or the proceeds thereof) will be used to purchase or carry any Margin Stock or to extend credit for the purpose of purchasing or carrying any Margin Stock.  Neither the making of any Loan nor the use of the proceeds thereof nor the occurrence of any other Credit Event will violate the provisions of Regulation T, U or X of the Board of Governors of the Federal Reserve System.

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8.09.     Tax Returns and Payments.  The Borrower and each of its Subsidiaries has timely filed or caused to be timely filed with the appropriate taxing authority all U.S. Federal tax returns, and all other material returns, statements, forms and reports for taxes (the “Returns”) required to be filed by the Borrower and/or any of its Subsidiaries except filings the failure to make would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.  The Borrower and each of its Subsidiaries have paid all taxes and assessments payable by them which have become due, other than those that are being contested in good faith and by proper proceedings and for which adequate reserves are being maintained in accordance with GAAP.  On the Initial Borrowing Date no material action, suit, proceeding, investigation, audit or claims are now pending or, to the knowledge of the Borrower or any of its Subsidiaries, threatened by any authority regarding any Taxes relating to the Borrower or any of its Subsidiaries.
8.10.     Compliance with ERISA and Other Benefits Laws.  (a) Each Plan is in compliance in form and operation with its terms and with ERISA and the Code (including without limitation the Code provisions compliance with which is necessary for any intended favorable tax treatment) and all other applicable laws and regulations, except where any failure to comply would not reasonably be expected to have a Material Adverse Effect.  Except as would not reasonably be expected to result in a Material Adverse Effect, each Plan (and each related trust, if any) which is intended to be qualified under Section 401(a) of the Code (x) has received a favorable determination letter from the IRS to the effect that it meets the requirements of Sections 401(a) of the Code and that the applicable trust qualifies for exemption from taxation under Section 501(a) of the Code or an application for such a letter has been filed within the remedial amendment period and is currently being processed by the IRS with respect thereto, or (y) is comprised of a master or prototype plan that has received a favorable opinion letter from the IRS, and to the knowledge of the Borrower, nothing has occurred since the date of such determination that would reasonably be expected to adversely affect such determination (or, in the case of a Plan with no determination, to the knowledge of the Borrower, nothing has occurred that would reasonably be expected to materially adversely affect the issuance of a favorable determination letter or otherwise materially adversely affect such qualification).  No ERISA Event has occurred other than as would not, individually or in the aggregate, have a Material Adverse Effect.
(b)    There exists no Unfunded Pension Liability with respect to any Plan that would have a Material Adverse Effect.
(c)    To the knowledge of the Borrower, no Multiemployer Plan is Insolvent or in Reorganization.  None of the Borrower or any ERISA Affiliate has incurred any material liability with respect to a complete or partial withdrawal from any Multiemployer Plan, and, if the Borrower and each ERISA Affiliate were to withdraw in a complete withdrawal from any Multiemployer Plan as of the date this assurance is given or deemed given, the aggregate withdrawal liability that would be incurred would not reasonably be expected to result in a Material Adverse Effect.
(d)    To the knowledge of the Borrower, there are no actions, suits or claims pending against or involving a Plan (other than routine claims for benefits) or, which would reasonably be expected to be asserted successfully against any Plan and, if so asserted successfully, would reasonably be expected either singly or in the aggregate to have a Material Adverse Effect.
(e)    The Borrower and, to the knowledge of the Borrower, each ERISA Affiliate have made all material contributions to or under each Plan and Multiemployer Plan required by law within the applicable time limits prescribed thereby, the terms of such Plan or Multiemployer Plan, respectively, or any contract or agreement requiring contributions to a Plan or Multiemployer Plan save where any failure to comply, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

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(f)    Except as would not individually or in the aggregate have a Material Adverse Effect, (x) neither the Borrower nor any ERISA Affiliate has ceased operations at a facility so as to become subject to the provisions of Section 4062(e) of ERISA or withdrawn as a “substantial employer” (as defined in Section 4001(a)(2) of ERISA) from a Plan so as to become subject to the provisions of Section 4063 of ERISA, and (y) neither the Borrower nor any ERISA Affiliate has any liability under Section 4069 or 4212(c) of ERISA.
(g)    Except as would not, individually or in the aggregate, have a Material Adverse Effect, each Foreign Pension Plan has been maintained in compliance with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and orders and has been maintained, where required, in good standing with applicable regulatory authorities, and all contributions required to be made with respect to a Foreign Pension Plan have been timely made.
(h)    None of the Borrower nor any member of its respective Controlled Group has incurred, or reasonably expects to incur, any liability under the Coal Industry Retiree Health Benefit Act (other than contributions or premiums in the ordinary course and without default).
(i)    There is no pending audit or investigation by the IRS, the U.S. Department of Labor, the PBGC or any other governmental agency or any foreign regulatory agency with respect to any Plan that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
8.11.     Security Documents.  (a) The provisions of the Guaranty and Collateral Agreement are effective to create in favor of the Collateral Agent for the benefit of the Secured Creditors a legal, valid and enforceable security interest in all right, title and interest of the Credit Parties in the GCA Collateral described therein. In the case of pledged capital interest described in the Guaranty and Collateral Agreement, when Stock Certificates representing such pledged capital interest are delivered to the Collateral Agent, and in the case of the other Collateral described in the Guaranty and Collateral Agreement, when financing statements specified in Schedule 8.11(a) in appropriate form are filed in the offices specified in Schedule 8.11(a), the Collateral Agent, for the benefit of the Secured Creditors will have a fully perfected lien on, and security interest in, all right, title and interest in all of the UCC Financing Collateral, subject to no other Liens other than Permitted Liens (subject to the prior Lien of the ABL Representative with respect to ABL Priority Collateral and subject to the Liens of the Notes Representative under the First Lien Intercreditor Agreement).
(b)Each Mortgage, when executed and delivered and recorded or registered in the applicable recording or registration office, will create, as security for the obligations purported to be secured thereby, a valid and enforceable perfected security interest in and mortgage lien on the respective Mortgaged Property in favor of the Collateral Agent (or such other trustee as may be required or desired under local law) for the benefit of the Secured Creditors, superior and prior to any Person (except Permitted Encumbrances related thereto).
8.12.     Properties.  All Real Property (a) owned by the Borrower or its Subsidiaries as of the Initial Borrowing Date or (b) leased by the Borrower or its Subsidiaries as of the Initial Borrowing Date for which the aggregate annual rental payments are at least $1,000,000, and the nature of the interest therein, is described in Schedule 8.12.  The Borrower and each of its Subsidiaries has good and marketable title to or valid leasehold interests, as applicable, in (i) all personal property that is necessary or used in the ordinary course of business, free and clear of all Liens (other than Permitted Liens) and (ii) all Real Property listed on Schedule 8.12, free and clear of all Liens (other than Permitted Liens).

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8.13.     Subsidiaries.  On and as of the Initial Borrowing Date, the Borrower has no Subsidiaries other than those Subsidiaries listed on Schedule 8.13.  Schedule 8.13 sets forth, as of the Initial Borrowing Date, the percentage ownership (direct and indirect) of the Borrower in each class of capital stock or other Equity Interests of each of its Subsidiaries and also identifies the direct owner thereof.
8.14.     Compliance with Statutes, etc.  The Borrower and its Subsidiaries are in compliance with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all Governmental Authorities in respect of the conduct of their businesses and the ownership of their properties, except in such instances in which (a) the failure to comply therewith is being contested in good faith by appropriate proceedings diligently conducted or (b) such non-compliances as would not reasonably be expected to have a Material Adverse Effect.
8.15.     Investment Company Act.  Neither the Borrower nor any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.
8.16.     Environmental Matters.  Except as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and except as set forth on Schedule 8.16: (a) the Borrower and its Subsidiaries are in compliance with all applicable Environmental Laws and have obtained and are in compliance with the terms of any Environmental Permits required under such Environmental Laws, and are not aware of any reason any such Environmental Permits would reasonably be expected to be revoked, not renewed or adversely modified; (b) there are no Environmental Claims pending or to the knowledge of the Borrower, threatened, against or affecting the Borrower or any of its Subsidiaries or any Real Property of the Borrower or any of its Subsidiaries; (c) no Lien, other than a Permitted Lien, has been recorded or to the knowledge of the Borrower, threatened under any Environmental Law with respect to any Real Property owned, leased or operated by the Borrower or any of its Subsidiaries; (d) neither the Borrower nor any of its Subsidiaries has assumed or retained any liability of any other Person under any Environmental Law; and (e) there are no facts, circumstances, conditions or occurrences with respect to the past or present business, operations, properties or facilities of the Borrower or any of its Subsidiaries, or any of their respective predecessors, that would reasonably be expected to give rise to any Environmental Claim against the Borrower or its Subsidiaries r any liability of the Borrower or its Subsidiaries under any applicable Environmental Law.
8.17.     Employment and Labor Relations.  Neither the Borrower nor any of its Subsidiaries is engaged in any unfair labor practice that would reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect.  On the Initial Borrowing Date, except as disclosed on Schedule 8.17, there is (i) no unfair labor practice complaint pending against the Borrower or any of its Subsidiaries or, to the knowledge of the Borrower, threatened against any of them, before the National Labor Relations Board or similar agency or entity governing labor relations of any Subsidiary, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement is so pending against the Borrower and its Subsidiaries or, to the knowledge of the Borrower, threatened against any of them, (ii) no strike, labor dispute, slowdown or stoppage pending against the Borrower or any of its Subsidiaries or, to the knowledge of the Borrower, threatened against the Borrower or any of its Subsidiaries, (iii) to the knowledge of the Borrower, no union representation question exists with respect to the employees of the Borrower or any of its Subsidiaries, (iv) no equal employment opportunity charges or other claims of employment discrimination are pending or, to the Borrower’ knowledge, threatened against the Borrower or any of its Subsidiaries and (v) no wage and hour department investigation of the Borrower or any of its Subsidiaries is pending, except (with respect to any matter specified in clauses (i), (ii), (iv) or (v) above, either individually or in the aggregate) such as would not reasonably be expected to have a Material Adverse Effect.

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8.18.     Intellectual Property, etc.  The Borrower and its Subsidiaries own or have the right to use all the patents, trademarks, domain names, service marks, trade names, copyrights, inventions, trade secrets, proprietary information and know-how of any type, whether or not written (including, but not limited to, rights in computer programs and databases) and formulas, or rights with respect to the foregoing, (collectively, the “IP Rights”) that are necessary for the operation of their respective businesses without any conflict known to the Borrower with the IP Rights of any other Person, except to the extent any rights of others which, or the failure to so own or have which, as the case may be, would reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect.
8.19.     Foreign Assets Control Regulations, Etc.  Neither the Borrower nor any of its Subsidiaries, directors, officers or employees, nor, to the knowledge of the Borrower, any agent, or affiliate is currently the subject or the target of any sanctions administered or enforced by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”), nor is the Borrower or any of its Subsidiaries located, organized or resident in a country or territory that is the subject or the target of Sanctions, including, without limitation, Cuba, Burma (Myanmar), Iran, North Korea, Sudan and Syria (each, a “Sanctioned Country”).  Neither the Borrower nor any of its Subsidiaries, directors, officers or employees, nor, to the knowledge of the Borrower, any agent, affiliate, joint venture partner or other person associated with or acting on behalf of the Borrower or any of its Subsidiaries is engaging in activities sanctionable under the Iran Sanctions Act; the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010; the Iran Threat Reduction and Syria Human Rights Act of 2012; the National Defense Authorization Act for the Fiscal Year 2012; the National Defense Authorization Act for the Fiscal Year 2013, all as amended; under Executive Order Nos. 13628, 13622, and 13608; or under any other U.S. economic sanctions relating to Iran.  For the past five years, the Borrower and its Subsidiaries have not knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.
SECTION 9.     Affirmative Covenants.
The Borrower hereby covenants and agrees that on and after the Effective Date and until the Loans, Notes (in each case together with interest thereon), Fees and all other Obligations (other than indemnities described in Section 13.13 and reimbursement obligations under Section 13.01 which, in either case, are not then due and payable) incurred hereunder and thereunder, are paid in full:
9.01.     Information Covenants.  The Borrower will furnish to each Lender:
(a)    Quarterly Financial Statements.  Within 45 days after the close of each of the first three quarterly accounting periods in each Fiscal Year of the Borrower, (i) the consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such quarterly accounting period and the related consolidated statements of income and retained earnings and statement of cash flows for such quarterly accounting period and for the elapsed portion of the Fiscal Year ended with the last day of such quarterly accounting period, in each case setting forth comparative figures for the corresponding quarterly accounting period in the prior Fiscal Year, all of which shall be certified by the chief financial officer, treasurer, assistant treasurer, controller or other principal accounting officer of the Borrower as fairly presenting in all material respects in accordance with GAAP the financial condition of the Borrower and its Subsidiaries as of the dates indicated and the results of their operations for the periods indicated, subject to normal year-end audit adjustments and the absence of footnotes, and (ii) management’s discussion and analysis of the important operational and financial developments during such quarterly accounting period.

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(b)    Annual Financial Statements.  Within 90 days after the close of each Fiscal Year of the Borrower, the consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such Fiscal Year and the related consolidated statements of income and retained earnings and statement of cash flows for such Fiscal Year setting forth comparative figures for the preceding Fiscal Year and certified independent certified public accountants of recognized national standing reasonably acceptable to the Administrative Agent.
(c)    Management Letters.  Promptly after the Borrower’s or any of its Subsidiaries’ receipt thereof, a copy of any “management letter” received from its certified public accountants and management’s response thereto; provided that such delivery only shall be required to the extent allowed by the relevant certified public accountant’s policy and practice.
(d)    Budgets.  No later than 30 days following the first day of each Fiscal Year of the Borrower, a budget in form reasonably satisfactory to the Administrative Agent (including budgeted statements of income, sources and uses of cash and balance sheets for the Borrower and its Subsidiaries on a consolidated basis) for each of the twelve months of such Fiscal Year prepared in detail.
(e)    Officer’s Certificates.  At the time of the delivery of the financial statements provided for in Sections 9.01(a) and (b), a compliance certificate from the chief financial officer, treasurer, assistant treasurer, controller or principal accounting officer of the Borrower in the form of Exhibit I certifying on behalf of the Borrower that, to such officer’s knowledge after due inquiry, no Default or Event of Default has occurred and is continuing or, if any Default or Event of Default has occurred and is continuing, specifying the nature and extent thereof, which certificate shall (i) if delivered with the financial statements required by Section 9.01(b), set forth in reasonable detail the amount of (and the calculations required to establish the amount of) Excess Cash Flow for the respective Excess Cash Payment Period, and (ii) certify that there have been no changes to the Schedules of the Guaranty and Collateral Agreement to the extent required by each respective agreement.
(f)    Notice of Default, Litigation and Material Adverse Effect.  Promptly, and in any event within five Business Days after any Authorized Officer of the Borrower or of any of its Subsidiaries obtains knowledge thereof, notice of (i) the occurrence of any event that constitutes a Default or an Event of Default, or (ii) any litigation or governmental investigation or proceeding pending against the Borrower or any of its Subsidiaries which has had, or would reasonably be expected to have, a Material Adverse Effect.
(g)    Other Reports and Filings.  Promptly after the filing or delivery thereof, copies of all financial information, proxy materials and reports, if any, which the Borrower or any of its Subsidiaries has publicly filed with the Securities and Exchange Commission or any successor thereto (the “SEC”) or delivered to holders (or any trustee, agent or other representative therefor) of any of its material Indebtedness pursuant to the terms of the documentation governing the same.
(h)    Environmental Matters.  Promptly after any Authorized Officer of the Borrower or any of its Subsidiaries obtains actual knowledge thereof, notice of the following environmental matters to the extent that such environmental matters, either individually or when aggregated with all other such environmental matters, would reasonably be expected to have a Material Adverse Effect:

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(i)any pending or threatened Environmental Claim against the Borrower or any of its Subsidiaries or any Real Property owned, leased or operated by the Borrower or any of its Subsidiaries;
(ii)any condition or occurrence on or arising from any Real Property owned, leased or operated by the Borrower or any of its Subsidiaries that (a) results in noncompliance by the Borrower or any of its Subsidiaries with any applicable Environmental Law or (b) would reasonably be expected to result in an Environmental Claim against the Borrower or any of its Subsidiaries or any such Real Property;
(iii)any condition or occurrence on any Real Property owned, leased or operated by the Borrower or any of its Subsidiaries that would reasonably be expected to cause such Real Property to be subject to any restrictions on the ownership, lease, occupancy, use or transferability by the Borrower or any of its Subsidiaries of such Real Property under any applicable Environmental Law; or
(iv)the occurrence of any Release of Hazardous Materials required under applicable Environmental Law to be reported to any Governmental Authority, or the taking of any removal or remedial action to the extent required by any applicable Environmental Law or any Governmental Authority in response to the Release or threatened Release of any Hazardous Material for which the Borrower or any of its Subsidiaries would reasonably be expected to be responsible.
All such notices shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal or remedial action and the Borrower’s or such Subsidiary’s response thereto.
(i)    Other Information.  From time to time, such other information or documents (financial or otherwise) with respect to the business, financial or corporate affairs of the Borrower or any of its Subsidiaries as the Administrative Agent or any Lender (through the Administrative Agent) may reasonably request.
Documents required to be delivered pursuant to Section 9.01(a), (b) or (g) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet; or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that: (i) the Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender that requests the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (ii) the Borrower shall notify (which may be by facsimile or electronic mail) the Administrative Agent and each Lender of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.
9.02.     Books, Records and Inspections.  The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and accounts in which full, true and correct entries in conformity with GAAP and all requirements of law shall be made of all financial dealings and transactions in relation to its business and activities.  The Borrower will, and will cause each of its Subsidiaries to, permit officers and designated representatives of the Administrative Agent or any Lender to visit and inspect, under guidance of officers of the Borrower or such Subsidiary, any of the properties 

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of the Borrower or such Subsidiary, and to examine the books of account of the Borrower or such Subsidiary and discuss the affairs, finances and accounts of the Borrower or such Subsidiary with, and be advised as to the same by, its and their officers and independent accountants, all upon prior notice of no less than five Business days and at such reasonable times during normal business hours and intervals and to such reasonable extent as the Administrative Agent or any such Lender may reasonably request (and subject, in the case of any such meetings or advice from such independent accountants, to such accountants’ customary policies and procedures); provided that, excluding any such visits and inspections during the continuance of an Event of Default (a) only the Administrative Agent on behalf of the Required Lenders may exercise rights of the Administrative Agent and the Lenders under this Section 9.02 and (b) the Administrative Agent shall not exercise such rights more than twice in any calendar year.
9.03.     Maintenance of Property; Insurance.  (a) The Borrower will, and will cause each of its Subsidiaries to, (i) keep all property necessary to the business of the Borrower and its Material Subsidiaries in good working order and condition, ordinary wear and tear excepted and subject to the occurrence of casualty events, and other than property that has become worn-out, defective, obsolete or not used or useful in the business, (ii) maintain with financially sound and reputable insurance companies insurance on all such property and against all such risks as is consistent and in accordance with industry practice for companies similarly situated owning similar properties and engaged in similar businesses as the Borrower and its Subsidiaries, and (iii) furnish to the Administrative Agent, upon its request therefor, full information as to the insurance carried.  The provisions of this Section 9.03 shall be deemed supplemental to, but not duplicative of, the provisions of any Security Documents that require the maintenance of insurance.
(b)If at any time the improvements on a Mortgaged Property are located in an area identified as a special flood hazard area by the Federal Emergency Management Agency or any successor thereto or other applicable agency, the Borrower will, and will cause each of its Subsidiaries to, at all times keep and maintain flood insurance in an amount no less than the amount sufficient to comply with the rules and regulations promulgated under the National Flood Insurance Act of 1968 and Flood Disaster Protection Act of 1973, each as amended from time to time.
(c)The Borrower will, and will cause each of its Subsidiaries to, at all times keep its property insured in favor of the Collateral Agent, and all policies or certificates (or certified copies thereof) with respect to such insurance (and any other insurance maintained by the Borrower and/or such Subsidiaries) shall be endorsed to the Collateral Agent’s satisfaction for the benefit of the Collateral Agent (including, without limitation, by naming the Collateral Agent as loss payee and/or additional insured).
9.04.     Existence; Franchises.  The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done, all things necessary to preserve and keep in full force and effect its existence and its material rights, franchises, licenses, permits, copyrights, trademarks and patents that are necessary to the proper conduct of their business; provided, however, that nothing in this Section 9.04 shall prevent sales of assets and other transactions by the Borrower or any of its Subsidiaries in accordance with Section 10.02 and Section 10.05.
9.05.     Compliance with Statutes, etc.  The Borrower will, and will cause each of its Subsidiaries to, comply with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all Governmental Authorities in respect of the conduct of its business and the ownership of its property, except such non-compliances as would not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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9.06.     Compliance with Environmental Laws.  (a) (i) the Borrower will comply, and will cause each of its Subsidiaries to comply, in all material respects with all Environmental Laws applicable to, and Environmental Permits required in respect of, the conduct of its business or operations or by the ownership, lease or use of any Real Property now or hereafter owned, leased or operated by the Borrower or any of its Subsidiaries and (ii) to the extent required by applicable Environmental Law, will pay or cause to be paid all costs and expenses incurred in connection with such compliance, and will keep or cause to be kept all such Real Property free and clear of any Liens, other than Permitted Liens, imposed pursuant to such Environmental Laws.  Neither the Borrower nor any of its Subsidiaries will generate, use, treat, store, Release or dispose of, or permit the generation, use, treatment, storage, Release or disposal of Hazardous Materials on any Real Property now or hereafter owned, leased or operated by the Borrower or any of its Material Subsidiaries, or transport or permit the transportation of Hazardous Materials to or from any such Real Property, except for Hazardous Materials generated, used, treated, stored, Released or disposed of at any such Real Properties, or transported, in compliance in all material respects with all applicable Environmental Laws and as required in connection with the normal operation, use and maintenance of the business or operations of, and in a manner that would not reasonably be expected to result in any material liability of, the Borrower or any of its Subsidiaries.
(b)(i) After the receipt by the Administrative Agent or any Lender of any notice of the type described in Section 9.01(h), (ii) at any time that Borrower or any of its Subsidiaries is not in compliance with Section 9.06(a) or (iii) in the event that the Administrative Agent or the Lenders have exercised any of the remedies pursuant to Section 11, the Borrower will (in each case) provide, at the joint and several expense of the Borrower and as is reasonably requested by the Administrative Agent, an environmental site assessment report concerning any relevant Real Property owned, leased or operated by the Borrower or any of its Subsidiaries, prepared by an environmental consulting firm reasonably approved by the Administrative Agent, indicating compliance or noncompliance with applicable Environmental Laws at such Real Property and the presence or absence of Hazardous Materials and the potential cost of any required removal or remedial action in connection with such noncompliance on, or Hazardous Materials on or emanating from, such Real Property.  If the Borrower fails to provide the same within 30 days after such request was made, the Administrative Agent may order the same, the reasonable cost of which shall be borne by the Borrower, and the Borrower shall and hereby does grant to the Administrative Agent and the Lenders and their respective agents reasonable access to such Real Property, and specifically grants the Administrative Agent and the Lenders an irrevocable non-exclusive license, subject to the rights of tenants, to undertake such an assessment at any reasonable time upon reasonable notice to the Borrower, provided that such access and work shall not unreasonably interfere with normal operations of the Borrower or any of them, all at the joint and several expense of the Borrower.
9.07.     ERISA.  Promptly and in any event within 30 days after the Borrower knows that any ERISA Event has occurred that would reasonably be expected to result in material liability to the Borrower, the Borrower shall supply to the Administrative Agent (in sufficient copies for all Lenders, if the Administrative Agent so requests) a certificate of an authorized officer of the Borrower describing such ERISA Event and the action, if any, proposed to be taken with respect to such ERISA Event and a copy of any notice filed with the PBGC or the IRS pertaining to such ERISA Event and any notices received by the Borrower or ERISA Affiliate from the PBGC or any other governmental agency with respect thereto.
9.08.     End of Fiscal Years; Fiscal Quarters.  Borrower will cause (i) its and each of its Subsidiaries’ fiscal years to end on December 31 of each calendar year and (ii) its and each of its Subsidiaries’ fiscal quarters to end on the last day of each period described in the definition of “Fiscal Quarter.”

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9.09.     Payment of Taxes.  The Borrower will pay and discharge, and will cause each of its Subsidiaries to pay and discharge, all taxes, assessments and governmental charges or levies imposed upon it, prior to the date on which penalties attach thereto, and all lawful claims which, if unpaid, might become a Lien or charge upon any properties of the Borrower or any of its Subsidiaries not otherwise permitted under Section 10.01(i); provided that neither the Borrower nor any of its Subsidiaries shall be required to pay any such tax, assessment, charge, levy or claim that is being contested in good faith and by proper proceedings if it has maintained adequate reserves with respect thereto in accordance with GAAP.
9.10.     Use of Proceeds.  The Borrower will use the proceeds of the Loans only as provided in Section 8.08. The Borrower will not directly or indirectly use the proceeds from the transaction, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (A) to fund or facilitate any activities of or business with any person or entity that, at the time of such funding or facilitation, is the subject or the target of Sanctions, (B) to fund or facilitate any activities of or business in any Sanctioned Country, or (C) in any other manner that will result in a violation by any person or entity (including any person participating in the transaction, whether as lender, advisor, or otherwise) of Sanctions.
9.11.     Additional Security; Further Assurances; etc.  (a) The Borrower shall cause, and will cause each of the other Credit Parties to cause, each of its Wholly-Owned Domestic Subsidiaries (other than Immaterial Subsidiaries) formed or acquired (or which first becomes such a Wholly-Owned Domestic Subsidiary or ceases to be an Immaterial Subsidiary) after the Initial Borrowing Date to become a Credit Party (and a party to the Guaranty and Collateral Agreement by executing a supplement thereto in form reasonably satisfactory to the Administrative Agent) and to execute and deliver all other appropriate Security Documents, in each case, within thirty (30) days (or such longer time period if agreed to by the Administrative Agent in its sole discretion) after the formation or acquisition thereof or after the first date upon which the respective Subsidiary of such Person becomes a Wholly-Owned Domestic Subsidiary or ceases to be an Immaterial Subsidiary. Upon execution and delivery of the supplement to the Guaranty and Collateral Agreement, each such Person (i) shall become a Guarantor hereunder and thereupon shall have all of the rights, benefits, duties, and obligations in such capacity under the Credit Documents and (ii) shall grant Liens to the Administrative Agent, for the benefit of the Administrative Agent and the Lenders, in any property of such Credit Party that constitutes Collateral as set forth in, and in accordance with, the Security Documents. In addition, each new Wholly-Owned Subsidiary that is required to execute any Credit Document shall execute and deliver, or cause to be executed and delivered, all other relevant documentation (including opinions of counsel) of the type described in Section 6 as such new Subsidiary would have had to deliver if such new Subsidiary were a Credit Party on the Initial Borrowing Date. For the avoidance of doubt, if any Subsidiary that constitutes a Guarantor issues any capital stock or other Equity Interests (including by way of sales of treasury stock) or any options or warrants to purchase, or securities convertible into, capital stock or other Equity Interests (other than issuances that constitute a Disposition permitted pursuant to Section 10.02(iv)), such Subsidiary shall be required to remain a Guarantor after giving effect to such issuance.
(b)    The Borrower shall, and shall cause each other Credit Party to, grant to the Collateral Agent for the benefit of the Secured Creditors security interests and Mortgages in such assets and Real Property of the Borrower and such other Credit Party as are not covered by the original Security Documents (collectively, the “Additional Security Documents”).  All such security interests and Mortgages shall be granted pursuant to documentation reasonably satisfactory in form and substance to the Collateral Agent.  Notwithstanding the foregoing, this Section 9.11(b) shall not apply to (and the Borrower and its Subsidiaries shall not be required to grant a Mortgage in) (i) any Leasehold for which the aggregate annual rental payments are less than $1,000,000, (ii) any Leasehold with respect to which the respective Credit Party has not obtained (after using commercially reasonable efforts to obtain same) 

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the consent of the lessor to grant a mortgage in such Leasehold, (iii) any ICTC Excluded Collateral or (iv) any Excluded Property.  
(c)    The Borrower will, and will cause each of the other Credit Parties to, at the expense of the Borrower, make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such vouchers, invoices, schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements, powers of attorney, certificates, Real Property surveys, reports, landlord waivers, bailee agreements, control agreements and other assurances or instruments and take such further steps relating to the Collateral covered by any of the Security Documents as the Collateral Agent may reasonably require.  Furthermore, Borrower will, and will cause the other Credit Parties that are Subsidiaries of the Borrower to, deliver to the Collateral Agent such opinions of counsel, title insurance and other related documents as may be reasonably requested by the Administrative Agent to assure itself that this Section 9.11 has been complied with.
(d)If the Administrative Agent or the Required Lenders reasonably determine that they are required by law or regulation to have appraisals prepared in respect of any Real Property of the Borrower and the other Credit Parties constituting Collateral, the Borrower will, at its own expense, provide to the Administrative Agent appraisals that satisfy the applicable requirements of the Real Estate Appraisal Reform Amendments of the Financial Institution Reform, Recovery and Enforcement Act of 1989, as amended, and which shall otherwise be in form and substance reasonably satisfactory to the Administrative Agent.
(e)To the extent any action that would otherwise have been required to be taken pursuant to Sections 6.08 and 6.09 hereof have not been taken on or prior to the Initial Borrowing Date as permitted thereby, then the Borrower shall cause all such actions to be taken as promptly as practicable after the Initial Borrowing Date, provided that in any event such actions shall be required to be completed within (x) 60 days after the Initial Borrowing Date in the case of actions otherwise required under Section 6.08(a) and (y) 120 days after the Initial Borrowing Date in the case of actions required to be taken pursuant to Section 6.09(a), in each case as such dates may be extended (with respect to a given action or actions) at the reasonable discretion of the Administrative Agent.
(f)The Borrower shall complete each action required by clauses (b) through (d) of this Section 9.11 as soon as possible, but in no event later than 120 days after, such action is requested to be taken by the Administrative Agent or the Required Lenders (as such date me be extended at the sole discretion of the Administration Agent); provided that, in no event will Borrower or any of its Subsidiaries be required to take any action, other than using its commercially reasonable efforts, to obtain consents from third parties with respect to its compliance with this Section 9.11.
9.12.     Interest Rate Protection.  No later than 120 days following the Effective Date, the Borrower will enter one or more Interest Rate Protection Agreements mutually acceptable to the Borrower and the Administrative Agent, to the extent necessary to provide that at least 50% of the aggregate principal amount of the total funded debt of the Borrower as of the Effective Date is subject to either a fixed interest rate or interest rate for a period of not less than three years.
9.13.     Ratings.  The Borrower shall use commercially reasonable efforts to (i) obtain (x) a public corporate family rating of the Borrower and a rating of each Tranche of the Loans, in each case from Moody’s, and (y) a public corporate credit rating of the Borrower and a rating of each Tranche of the Loans, in each case from S&P and (ii) to have such ratings in effect at all times.

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SECTION 10.     Negative Covenants.
The Borrower hereby covenants and agrees that on and after the Effective Date and until the Loans, Notes, Fees (in each case, together with interest thereon) and all other Obligations (other than contingent obligations, including, without limitation, any indemnities described in Section 13.13 and reimbursement obligations under Section 13.01 which, in either case, are not then due and payable) incurred hereunder and thereunder, are paid in full:
10.01.     Liens.  The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets (real or personal, tangible or intangible) of the Borrower or any of its Subsidiaries, whether now owned or hereafter acquired, or sell any such property or assets subject to an understanding or agreement, contingent or otherwise, to repurchase such property or assets (including sales of accounts receivable with recourse to the Borrower or any of its Subsidiaries), or assign any right to receive income or permit the filing of any financing statement under the UCC or any other similar notice of Lien under any similar recording or notice statute; provided that the provisions of this Section 10.01 shall not prevent the creation, incurrence, assumption or existence of the following (Liens described below are herein referred to as “Permitted Liens”):
(i)Liens for Taxes or governmental charges not yet due or Liens for Taxes or governmental charges being contested in good faith and by appropriate proceedings for which adequate reserves have been established to the extent required by and in accordance with GAAP;
(ii)Liens in respect of property or assets of the Borrower or any of its Subsidiaries imposed by law, which were incurred in the ordinary course of business and do not secure Indebtedness for borrowed money, such as carriers’, warehousemen’s, materialmen’s and mechanics’ liens and other similar Liens arising in the ordinary course of business, in each case so long as such Liens do not individually or in the aggregate have a Material Adverse Effect;
(iii)Liens in existence on the Initial Borrowing Date that are listed, and the property subject thereto described, in Schedule 10.01, plus renewals, replacements and extensions of such Liens to the extent set forth on such Schedule 10.01, provided that (x) the aggregate principal amount of the Indebtedness, if any, secured by such Liens does not increase from that amount outstanding at the time of any such renewal, replacement or extension plus an amount equal to the unpaid interest, premium or other payment thereon pursuant to the terms thereof plus any other reasonable fees and expenses of any Credit Party incurred in connection with renewal, replacement or extension and (y) any such renewal, replacement or extension does not encumber any additional assets or properties of the Borrower or any of its Subsidiaries;
(iv)Liens created by or pursuant to this Agreement and the Security Documents and Liens on Collateral securing Initial First Lien Notes, the ABL Facility, Permitted Second Lien Notes and Permitted First Lien Notes permitted to be outstanding pursuant to Section 10.04(i)(B);
(v)(x) licenses, sublicenses, leases or subleases granted by the Borrower or any of its Subsidiaries to other Persons not materially interfering with the conduct of the business of the Borrower or any of its Subsidiaries taken as a whole and (y) any interest or title of a lessor, sublessor or licensor under any lease or license agreement permitted by this Agreement to which the Borrower or any of its Subsidiaries is a party;
(vi)Liens upon assets of the Borrower or any of its Subsidiaries subject to Capitalized Lease Obligations to the extent such Capitalized Lease Obligations are permitted by 

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Section 10.04(iv), provided that (x) such Liens only serve to secure the payment of Indebtedness arising under such Capitalized Lease Obligation and (y) the Lien encumbering the asset giving rise to the Capitalized Lease Obligation does not encumber any other asset of the Borrower or any Subsidiary of the Borrower;
(vii)Liens placed upon equipment or machinery acquired after the Effective Date and used in the ordinary course of business of the Borrower or any of its Subsidiaries and placed at the time of the acquisition thereof by the Borrower or such Subsidiary or within 270 days thereafter to secure Indebtedness incurred to pay all or a portion of the purchase price thereof or to secure Indebtedness incurred solely for the purpose of financing the acquisition of any such equipment or machinery or extensions, renewals or replacements of any of the foregoing for the same or a lesser amount, provided that (x) the Indebtedness secured by such Liens is permitted by Section 10.04(iv) and (y) in all events, the Lien encumbering the equipment or machinery so acquired does not encumber any other asset of the Borrower or such Subsidiary;
(viii)easements, rights-of-way, restrictions, zoning and other similar restrictions, encroachments and other similar charges or encumbrances, and minor title deficiencies, in each case not securing Indebtedness and that do not, in the aggregate, materially interfere with the conduct of the business of the Borrower and its Subsidiaries taken as a whole;
(ix)Liens arising from UCC or PPSA financing statement filings regarding operating leases entered into in the ordinary course of business;
(x)Liens arising out of the existence of judgments or awards to the extent such judgments do not trigger an Event of Default;
(xi)statutory and common law landlords’ liens under leases to which the Borrower or any of its Subsidiaries is a party;
(xii)Liens (other than Liens imposed under ERISA) incurred in the ordinary course of business in connection with workers compensation claims, unemployment insurance and social security benefits and Liens securing the performance of bids, tenders, leases and contracts in the ordinary course of business, statutory obligations, surety bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business (exclusive of obligations in respect of the payment for borrowed money);
(xiii)Permitted Encumbrances;
(xiv)Liens on property or assets acquired pursuant to a Permitted Acquisition or other permitted Investment, or on property or assets of a Subsidiary of the Borrower in existence at the time such Subsidiary is acquired pursuant to a Permitted Acquisition or other permitted Investment; provided that any Indebtedness that is secured by such Liens constitutes Permitted Acquired Debt;
(xv)Liens arising out of any conditional sale, title retention, consignment or other similar arrangements for the sale of goods entered into by the Borrower or any of its Subsidiaries in the ordinary course of business to the extent such Liens do not attach to any assets other than the goods subject to such arrangements;
(xvi)Liens (x) incurred in the ordinary course of business in connection with the purchase or shipping of goods or assets (or the related assets and proceeds thereof), which Liens 

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are in favor of the seller or shipper of such goods or assets and only attach to such goods or assets, and (y) in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods;
(xvii)bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to cash and Cash Equivalents on deposit in one or more bank, custodian, investment, customs and other accounts maintained by the Borrower or any Subsidiary, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are maintained, securing amounts owing to such bank or banks with respect to cash management and operating account arrangements;
(xviii)Liens on assets of Foreign Subsidiaries securing Indebtedness permitted to be incurred by such Foreign Subsidiaries pursuant to Section 10.04(xiii);
(xix)Liens granted in the ordinary course of business on the unearned portion of insurance premiums securing the financing of insurance premiums to the extent the financing is permitted under Section 10.04;
(xx)Liens on earnest money deposits made in connection with any agreement in respect of an anticipated Permitted Acquisition;
(xxi)additional Liens of the Borrower or any Subsidiary not otherwise permitted by this Section 10.01 that do not secure obligations in excess of $50,000,000 in the aggregate for all such Liens at any time;
(xxii)Liens arising under Capitalized Lease Obligations to the extent permitted pursuant to Section 10.04(iv) securing Permitted Sale Leaseback Transactions, provided that the Lien encumbering the asset giving rise to the Capitalized Lease Obligation does not encumber any other asset of the Borrower or any Subsidiary of the Borrower;
(xxiii)Liens granted to a Credit Party;
(xxiv)Liens in respect of royalty, production payment and other obligations under coal leases and similar agreements entered into in the ordinary course of business and to the extent such Liens do not secure any obligation for borrowed money;
(xxv)Liens in respect of supply, sales, surface use and other operational agreements entered into consistent with normal practices in the mining industry, in each case to the extent such agreements are entered into in the ordinary course of business and such Liens do not secure any obligation for borrowed money;
(xxvi)contract mining agreements and leases or subleases granted to others that do not materially interfere with the ordinary course of business of the Borrower or the Subsidiaries;
(xxvii)Liens on cash, Cash Equivalents or other property arising in connection with the defeasance, discharge or redemption of Indebtedness or other obligations in compliance with the indenture governing the Initial First Lien Notes or any indenture governing any Permitted First Lien Notes;

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(xxviii)licenses of intellectual property granted by the Borrower or any Subsidiary in the ordinary course of business and not interfering in any material respect with the ordinary course of business of the Borrower or the Subsidiaries; and 
(xxix)Liens on cash advances in favor of the seller of any property to be acquired in an Investment permitted pursuant to Section 10.05 to be applied against the purchase price for such Investment, solely to the extent such Investment would have been permitted on the date of the creation of such Lien.
In connection with the granting of Liens of the type described in clauses (iii), (vi), (vii), (ix), (xiv) of this Section 10.01 by the Borrower or any of its Subsidiaries, the Administrative Agent and the Collateral Agent shall be authorized to take any actions deemed appropriate by it in connection therewith (including, without limitation, by executing appropriate lien releases or lien subordination agreements in favor of the holder or holders of such Liens, in either case solely with respect to the item or items of equipment or other assets subject to such Liens).
10.02.     Consolidation, Merger, Amalgamation, Purchase or Sale of Assets, etc.  Borrower will not, and will not permit any of its Subsidiaries to, (a) wind up, liquidate or dissolve its affairs or (b) enter into any partnership, joint venture, or transaction of merger, amalgamation or consolidation, or (c) convey, sell, lease or otherwise dispose of all or any part of its property or assets (other than sales of inventory in the ordinary course of business), or (d) enter into any Sale Leaseback, or purchase or otherwise acquire (in one or a series of related transactions) any part of the property or assets (other than purchases or other acquisitions of inventory, materials, equipment, goods and services in the ordinary course of business) of any Person, except that:
(i)Capital Expenditures by the Borrower and its Subsidiaries shall be permitted to the extent not in violation of this Agreement;
(ii)the Borrower and its Subsidiaries may liquidate or otherwise dispose of obsolete surplus or worn-out property;
(iii)Investments may be made to the extent permitted by Section 10.05;
(iv)the Borrower and its Subsidiaries may convey, sell, contribute, lease or otherwise dispose of assets (other than the capital stock or other Equity Interests of any Wholly-Owned Subsidiary, unless (a) all of the capital stock or other Equity Interests of such Wholly-Owned Subsidiary are sold in accordance with this clause (iv) or (b) less than all of the capital stock or other Equity Interests of such Wholly-Owned Subsidiary are transferred in accordance with the terms and conditions of the immediately succeeding paragraph of this clause (iv)) (each of the foregoing, a “Disposition”), so long as (u) no Default or Event of Default then exists or would result therefrom, (v) the Borrower or the respective Subsidiary receives at least Fair Market Value for the assets sold in the Disposition, (w) the Net Sale Proceeds from Dispositions of assets covered by the definition of the term “Asset Sale” above are applied as required by Section 5.02(c), (x) with respect to any Disposition pursuant to this clause (iv) the Person making such Disposition shall receive not less than 75% of such consideration in the form of cash or Cash Equivalents; provided that for the purposes of this sub-clause (x) the following shall be deemed to be cash: (A) any liabilities (as shown on the Borrower’s or its Subsidiary’s most recent balance sheet provided hereunder or in the footnotes thereto) of the Borrower or such Subsidiary, other than liabilities that are by their terms subordinated to the payment in cash of the Obligations, that are assumed by the transferee with respect to the applicable Disposition and for which the Borrower and all of the Subsidiaries shall have been validly released by all applicable creditors in 

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writing, (B) any securities, notes, other obligations or assets received by the Person making such Disposition from the purchaser that are converted by such Person into cash or Cash Equivalents within 180 days following the receipt thereof, to the extent of the cash or Cash Equivalents received in that conversion and (C) any Designated Non-Cash Consideration received by the Person making such Disposition having an aggregate Fair Market Value, taken together with all other Designated Non-Cash Consideration received pursuant to this clause (iv), less the amount of Net Sale Proceeds previously realized in cash from the sale of previously received Designated Non-Cash Consideration, that is at that time outstanding, less than the greater of (x) $50,000,000 and (y) 3.0% of Consolidated Total Assets, with the Fair Market Value of each item of Designated Non-Cash Consideration being measured at the time received and without giving effect to subsequent changes in value, (y) any non-cash proceeds received are pledged to the Collateral Agent to the extent required under Section 9.11 and (z) the aggregate consideration for all Dispositions made pursuant to this clause (iv) shall not exceed 75% of Consolidated Total Assets since the Effective Date; provided that in the case of an MLP Asset Transfer, in lieu of the foregoing requirements of subclause (x), the Borrower, at its election, may meet the following requirements:  
After such MLP Asset Transfer and as a result thereof, (x) the Borrower and its Subsidiaries shall have received an amount of cash and Designated Non-Cash Consideration permitted by subclause (x) above attributable to such MLP Asset Transfer (as a result of (I) the receipt of cash proceeds and other consideration as all or a portion of the consideration for such MLP Asset Transfer or (II) the repayment of intercompany indebtedness, owed by a Subsidiary of the Borrower, transferred or assumed as part of such MLP Asset Transfer) at least equal to 50% of the Fair Market Value of (A) the assets and property transferred or (B) in the case of a transfer of any Equity Interests of a Person, such Person at the time of such MLP Asset Transfer (it being understood that, in the case of a transfer of less than all of the Equity Interests of a Person, the Fair Market Value of such Person shall be determined at the time of the first MLP Asset Transfer constituting part of such MLP Asset Transfer (as if all the Equity Interests in such Person were transferred at the time of such first MLP Asset Transfer, and the cash requirement set forth in this clause shall be satisfied on that basis in connection with such first MLP Asset Transfer) and there shall be no such additional cash attributable to such MLP Asset Transfer required for any subsequent transfer of Equity Interests of such Person constituting part of the MLP Asset Transfer) (in each case of the foregoing clauses (A) and (B), assuming such assets or Person, as applicable, operates as a going concern), with the balance of the consideration received by the Borrower and its Subsidiaries for such MLP Asset Transfer consisting solely of Equity Interests in the applicable MLP, (y) no Default or Event of Default shall have occurred, be continuing or result as a consequence of such transaction and (z) the Fixed Charge Coverage Ratio for the Borrower’s most recently ended four full Fiscal Quarters for which internal financial statements are available immediately preceding the date on which such MLP Asset Transfer is consummated would have been at least 2.00:1.00 determined on a Pro Forma Basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred at the beginning of such four-quarter period.  For purposes of calculating the Fair Market Value of (a) any Person or (b) any assets or property transferred to any Person and (c) any Equity Interests in a Person with respect to any MLP Asset Transfer, any Indebtedness that is owed by such Person to the Borrower or any Subsidiary shall be disregarded and shall not be reflected in such calculation to reduce the Fair Market Value of such assets or property, Person or Equity Interests in such Person, as the case may be.
(v)(a) the Borrower and the Domestic Subsidiaries may make Dispositions to the Borrower or any other Credit Party that is a Domestic Subsidiary of the Borrower, (b) any Subsidiary that is not a Credit Party may make Dispositions to the Borrower or any other Subsidiary, 

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and (c) without limiting the Dispositions that are permitted to be made pursuant to clauses (a) or (b) immediately above, the Borrower and its Subsidiaries may make the Dispositions listed on Schedule 10.02(v) to the Borrower or any Subsidiary thereof;
(vi)the Borrower and its Subsidiaries may lease (as lessee) or license (as licensee) real or personal property (so long as any such lease or license does not create a Capitalized Lease Obligation except to the extent permitted by Section 10.04(iv));
(vii)the Borrower and its Subsidiaries may sell or discount, in each case without recourse and in the ordinary course of business, accounts receivable arising in the ordinary course of business, but only in connection with the compromise or collection thereof and not as part of any financing transaction;
(viii)the Borrower and its Subsidiaries may lease, sublease, license or sublicense real, personal or intellectual property in the ordinary course of business;
(ix)the Borrower and its Subsidiaries may make Dispositions of property (including like-kind exchanges) to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition are applied to the purchase price of such replacement property, in each case under Section 1031 of the Code or otherwise, provided that any Disposition of property that is Collateral shall be replaced by property that becomes Collateral;
(x)any Subsidiary of the Borrower or any other Person may be merged, amalgamated or consolidated with or into the Borrower, provided that (a) no Default or Event of Default shall have occurred, be continuing or result therefrom, (b) all of the transactions contemplated by this Section 10.02(x), and the terms, conditions and documentation thereof shall be in form and substance reasonably satisfactory to the Administrative Agent, (c) at least 10 Business Days’ prior written notice of such transaction is given by the Borrower to the Administrative Agent, (d) any security interests granted to the Collateral Agent for the benefit of the Secured Creditors pursuant to the Security Documents in the assets of such Subsidiary or Person shall remain in full force and effect and perfected (to at least the same extent as in effect immediately prior to such merger, amalgamation or consolidation) and all actions required to maintain said perfected status have been taken and (e) (1) the Borrower shall be the continuing or surviving corporation, as applicable or (2) if the Person formed by surviving any such merger, amalgamation or consolidation is not the Borrower (such other Person, the “Successor Borrower”), (A) the Successor Borrower shall be an entity organized or existing under the laws of the United States, any state thereof, the District of Columbia or any territory thereof if the Successor Borrower to the Borrower, (B) the Successor Borrower shall expressly assume all Obligations of the Borrower under this Agreement and the other Credit Documents pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent, (C) all actions have been taken that are necessary or, in the reasonable opinion of the Administrative Agent desirable, to maintain the perfection and priority of the Liens created by the respective Security Documents in the assets so transferred or sold to such Successor Borrower, (D) the Successor Borrower shall execute and deliver, or cause to be executed and delivered, all other relevant documentation (including, without limitation, opinions of counsel, board of directors (or similar) resolutions and other documents and certificates) of the type described in Section 6 as such Successor Borrower would have had to deliver if such Successor Borrower were the Borrower on the Initial Borrowing Date, in each case, as may be requested by the Administrative Agent in connection with the transactions contemplated by this Section 10.02(x), with each of the foregoing to be in form and substance reasonably satisfactory to the Administrative Agent, (E) each Guarantor, unless it is the other 

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party to such merger or consolidation, shall have by an agreement in form and substance reasonably satisfactory to the Administrative Agent confirmed that its Guaranty under the Guaranty and Collateral Agreement shall apply to any Successor Borrower’s Obligations as required under this Agreement and the other Credit Documents, (F) each Guarantor, unless it is the other party to such merger or consolidation, shall have by a supplement to the applicable Security Documents in form and substance reasonably satisfactory to the Administrative Agent, affirmed that the security interests granted to the Collateral Agent for the benefit of the Secured Creditors pursuant to the Security Documents in the assets of such Guarantor shall remain in full force and effect and perfected and all actions required to maintain said perfected status have been taken, (G) each mortgagor of a Mortgaged Property, unless it is the other party to such merger or consolidation, shall have affirmed pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent that its obligations under the applicable Mortgage shall apply to its Guaranty as reaffirmed pursuant to clause (E) and (H) the Successor Borrower shall have delivered to the Administrative Agent (x) an officer’s certificate stating that such merger or consolidation and such supplements and other agreements preserve the enforceability of the Guaranty and the perfection and priority of the Liens under the applicable Security Documents and (y) if requested by the Administrative Agent, an opinion of counsel to the effect that such merger or consolidation does not violate this Agreement or any other Credit Document and that the provisions set forth in the preceding clauses (B) through (H) preserve the enforceability of the Guaranty and the perfection and priority of the Liens created under the applicable Security Documents (it being understood that if the foregoing are satisfied, the Successor Borrower will succeed to, and be substituted for, the Borrower under this Agreement);
(xi)any Subsidiary of the Borrower or any other Person may merge, amalgamate or consolidate with and into, or be dissolved, wound up or liquidated into the Borrower or any Wholly-Owned Domestic Subsidiary of the Borrower which is a Guarantor, so long as (a) in the case of any such merger, amalgamation, consolidation, dissolution, winding up or liquidation involving the Borrower, the Borrower is the surviving or continuing entity of any such merger, amalgamation, consolidation, dissolution, winding up or liquidation, (b) in all other cases, a Wholly-Owned Domestic Subsidiary of the Borrower which is a Guarantor is the surviving or continuing corporation of any such merger, consolidation, dissolution or liquidation, and (c) any security interests granted to the Collateral Agent for the benefit of the Secured Creditors pursuant to the Security Documents in the assets of such Subsidiary shall remain in full force and effect and perfected (to at least the same extent as in effect immediately prior to such merger, consolidation, dissolution or liquidation) and all actions required to maintain said perfected status have been taken;
(xii)any Foreign Subsidiary of the Borrower may be merged, consolidated or amalgamated with and into, or be dissolved, wound up or liquidated into, or transfer any of its assets to, any Wholly-Owned Foreign Subsidiary of the Borrower, so long as (a) such Wholly-Owned Foreign Subsidiary of the Borrower is the surviving or continuing entity of any such merger, consolidation, amalgamation, dissolution, winding-up or liquidation and (b) any security interests granted to the Collateral Agent for the benefit of the Secured Creditors pursuant to the Security Documents in the Equity Interests and/or assets of such Wholly-Owned Foreign Subsidiary and such Foreign Subsidiary shall remain in full force and effect and perfected and enforceable (to at least the same extent as in effect immediately prior to such merger, consolidation, amalgamation, dissolution, liquidation or transfer) and all actions required to maintain said perfected status have been taken;
(xiii)Permitted Acquisitions may be consummated;

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(xiv)the Borrower and its Subsidiaries may liquidate or otherwise dispose of Cash Equivalents in the ordinary course of business, in each case for cash at Fair Market Value ;
(xv)any Subsidiary may liquidate or dissolve if (i) the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders and (ii) to the extent such Subsidiary is a Credit Party, any assets or business of such Subsidiary not otherwise disposed of or transferred in accordance with this Section or Section 10.05 or, in the case of any such business, discontinued, shall be transferred to, or otherwise owned or conducted by, a Credit Party after giving effect to such liquidation or dissolution;
(xvi)to the extent that no Default or Event of Default would result from the consummation of such disposition or investment, the Borrower and its Subsidiaries may consummate a merger, dissolution, liquidation, consolidation, investment or disposition, the purpose of which is to effect a disposition permitted pursuant to this Section or an Investment permitted pursuant to Section 10.05;
(xvii)the Subsidiaries or Investments listed on Schedule 10.02 may be liquidated, dissolved or wound-down;
(xviii)Permitted Sale Leaseback Transactions; 
(xix)any sale, transfer or other disposition of any assets of (a) a Subsidiary to the Borrower or to a Guarantor or Guarantors or (b) the Borrower to a Guarantor or Guarantors;
(xx)the sale by WRI of 99.99% of the Equity Interests in Absaloka in connection with Indian Coal Tax Credit Transactions;
(xxi)the Acquisition, the Initial Oxford Dropdown and the other transactions described in the Acquisition Documents shall be permitted in accordance with the terms of the Acquisition Documents; and
(xxii)the Borrower and its Subsidiaries may make Dispositions in connection with Qualified Receivables Financings.
To the extent the Required Lenders waive the provisions of this Section 10.02 with respect to the sale of any Collateral, or any Collateral is sold as permitted by this Section 10.02 (other than to the Borrower or a Subsidiary thereof), such Collateral shall be sold free and clear of the Liens created by the Security Documents, and the Administrative Agent and the Collateral Agent shall be authorized to take any actions deemed appropriate in order to effect and/or evidence the foregoing.
10.03.     Dividends.  The Borrower will not, and will not permit any of its Subsidiaries to, authorize, declare or pay any Dividends with respect to the Borrower or any of its Subsidiaries, except that:
(i)any Subsidiary of the Borrower may pay cash Dividends to the Borrower or to any Wholly-Owned Domestic Subsidiary of the Borrower;
(ii)any Non-Wholly-Owned Subsidiary of the Borrower may pay cash Dividends to its shareholders, members or partners generally, so long as the Borrower or its respective Subsidiary that owns the Equity Interest in the Subsidiary paying such Dividends receives at least its 

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proportionate share thereof (based upon its relative holding of the Equity Interest in the Subsidiary paying such Dividends and taking into account the relative preferences, if any, of the various classes of Equity Interests of such Subsidiary);
(iii)the Borrower and any of its Subsidiaries may pay cash Dividends in an amount not to exceed the Cumulative Retained Consolidated Net Income as in effect immediately before the respective Dividend so long as no Default or Event of Default exists or would result therefrom;
(iv)the Borrower may pay cash Dividends on and repurchase the Borrower Common Stock or repurchase or redeem the Borrower’s Series A Preferred Stock in an aggregate amount not to exceed $10,000,000 in any calendar year with unused amounts in any calendar year being permitted to be carried over for the next succeeding calendar year up to a maximum of $20,000,000 in the aggregate in any calendar year); provided that no Default or Event of Default then exists or would result therefrom;
(v)the Dividends listed on Schedule 10.03(v);
(vi)the repurchase, redemption, defeasance or other acquisition or retirement for value of Indebtedness of the Borrower or any Subsidiary that is contractually subordinated to the Obligations with the net cash proceeds from an Asset Sale that are not otherwise required to be applied to prepay the Term Loans under Section 5.02 (including the reinvestment periods applicable thereto);
(vii)the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Borrower or any Subsidiary of the Borrower held by any current or former officer, director, consultant or employee of the Borrower or any of its Subsidiaries (or their transferees, estates or beneficiaries under their estates) pursuant to the requirements of any equity subscription agreement, stock option agreement, employment agreement, shareholders’ or members’ agreement or similar agreement, plan or arrangement or otherwise in the ordinary course of business, not to exceed $10.0 million in any calendar year;
(viii)the repurchase of Equity Interests deemed to occur upon the exercise of stock options or warrants to the extent such Equity Interests represent a portion of the exercise price of those stock options or warrants;
(ix)the declaration and payment of regularly scheduled or accrued dividends or distributions to holders of (a) the Series A Preferred Stock to the extent such dividends or distributions constitute “Fixed Charges” and (b) any class or series of Disqualified Stock of the Borrower or any of its Subsidiaries issued on or after the Effective Date, so long as in each case, the Fixed Charge Coverage Ratio for the Borrower’s most recently ended four full Fiscal Quarters for which internal financial statements are available immediately preceding the date of the payment of such dividends, after giving effect to such payments of dividends, would have been at least 2.00:1.00 determined on a Pro Forma Basis;
(x)Dividends arising as a result of Qualified Receivables Financing; 
(xi)cash payments in lieu of fractional shares issuable as dividends on preferred stock, upon the exercise of any warrants or options or upon the conversion of any convertible debt securities of the Borrower or any of its Subsidiaries;

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(xii)the distribution, as a dividend or otherwise, of shares of Capital Stock of, or Indebtedness owed to the Borrower or a Subsidiary by, Unrestricted Subsidiaries (other than distributions by or of an MLP or an MLP GP); and 
(xiii)the Borrower and any of its Subsidiaries may pay Dividends not otherwise permitted hereto in an aggregate amount not to exceed the greater of (a) $50,000,000 and (b) 3.0% of Consolidated Total Assets determined on the date of the Dividend since the Effective Date; provided that no Default or Event of Default then exists or would result therefrom.
10.04.     Indebtedness.  The Borrower will not, and will not permit any of its Subsidiaries to, contract, create, incur, assume or suffer to exist any Indebtedness, except:
(i)Indebtedness incurred pursuant to (A) this Agreement and the other Credit Documents (B) the Initial First Lien Notes, the ABL Facility, Permitted First Lien Notes, Permitted Second Lien Notes or Permitted Unsecured Notes, and (C) Permitted Refinancing Indebtedness incurred with respect to indebtedness outstanding pursuant to this clause (i); provided that Permitted Refinancing Indebtedness incurred pursuant to this clause (i) may only be pursuant to one or more issues of Permitted First Lien Notes, Permitted Second Lien Notes or Permitted Unsecured Notes or pursuant to the Initial First Lien Notes or the ABL Facility so long as the relevant agents, trustees or Lenders thereunder have entered intercreditor agreements with the Administrative Agent on terms no less advantageous to the Lenders than those in the First Lien Intercreditor Agreement or ABL Intercreditor Agreement, respectively;
(ii)Indebtedness outstanding on the Initial Borrowing Date and listed on Schedule 10.04 and any Permitted Refinancing Indebtedness in respect thereof;
(iii)Indebtedness of the Borrower and the other Credit Parties under (x) Interest Rate Protection Agreements entered into with respect to other Indebtedness permitted under this Section 10.04 and (y) Other Hedging Agreements entered into in the ordinary course of business and providing protection to the Borrower and its Subsidiaries against fluctuations in currency values or commodity prices in connection with the Borrower’s or any of its Subsidiaries’ operations, in either case so long as the entering into of such Interest Rate Protection Agreements or Other Hedging Agreements are bona fide hedging activities and are not for speculative purposes;
(iv)Indebtedness of the Borrower and its Subsidiaries evidenced by Capitalized Lease Obligations and purchase money Indebtedness described in Section 10.01(vi) and including Capitalized Lease Obligations arising from Permitted Sale Leaseback Transactions, provided that in no event shall the sum of the aggregate principal amount of all Capitalized Lease Obligations and purchase money Indebtedness permitted by this clause (iv) exceed at any time outstanding the greater of (x) $75,000,000 and (y) 5.0% of Consolidated Total Assets.
(v)Indebtedness constituting Intercompany Loans to the extent permitted by Section 10.05(vii);
(vi)Indebtedness consisting of unsecured guaranties (x) by the Borrower and the Wholly-Owned Domestic Subsidiaries of the Borrower that are Guarantors of each other’s Indebtedness and lease and other contractual obligations permitted under this Agreement, the Initial First Lien Notes and the ABL Facility and (y) by Wholly-Owned Foreign Subsidiaries of the Borrower of each other’s Indebtedness and lease and other contractual obligations permitted under this Agreement;

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(vii)additional Indebtedness of the Borrower and its Subsidiaries; provided that (x) no Event of Default then exists or would result therefrom, (y) except in the case of Permitted Acquired Debt, the maturity date of such Indebtedness occurs after the Maturity Date and (z) the Fixed Charge Coverage Ratio for the Borrower’s most recently ended four full Fiscal Quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred would have been at least 2.0:1.0 determined on a Pro Forma Basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred at the beginning of such four-quarter period; provided that the amount of Indebtedness that may be incurred pursuant to this clause (vii) by Subsidiaries that are not Guarantors, together with any amounts incurred pursuant to clause (xi), shall not exceed the greater of (x) $15.0 million and (y) 1.0% of Consolidated Total Assets at any one time outstanding;
(viii)Indebtedness in respect of overdraft facilities, employee credit card programs, netting services, automated clearinghouse arrangements and other cash management and similar arrangements in the ordinary course of business;
(ix)Indebtedness arising from agreements of the Borrower or any of its Subsidiaries providing for indemnification, adjustment of purchase price or similar obligations (including earn-outs), in each case entered into in connection with Permitted Acquisitions, other Investments and the disposition of any business, assets or Equity Interests permitted hereunder;
(x)Indebtedness of the Borrower or any Subsidiary consisting of take or pay obligations contained in supply agreements, in each case arising in the ordinary course of business and not in connection with the borrowing of money; 
(xi)Indebtedness consisting of promissory notes issued by the Borrower or any Guarantor to current or former officers, directors, managers, consultants, and employees (or their respective transferees, estates or beneficiaries under their estates) to finance the purchase or redemption of Equity Interest of the Borrower or any of its Subsidiaries permitted by this Agreement;
(xii)Indebtedness of the Borrower or any of its Subsidiaries undertaken in connection with cash management and related activities with respect to any Subsidiary or joint venture in the ordinary course of business;
(xiii)Indebtedness of Foreign Subsidiaries; provided that the amount of Indebtedness that may be incurred pursuant to this clause (xi) by Subsidiaries that are not Guarantors, together with any amounts incurred pursuant to clause (vii), shall not exceed the greater of (x) $15.0 million and (y) 1.0% of Consolidated Total Assets at any one time outstanding;
(xiv)the issuance by Absaloka of preferred equity to a third party that purchases such preferred equity in connection with an Indian Coal Tax Credit Transaction;
(xv)Indebtedness incurred by a Receivables Subsidiary in a Qualified Receivables Financing that is not recourse to the Borrower or any Subsidiary of the Borrower other than a Receivables Subsidiary (except for Standard Securitization Undertakings); and
(xvi)so long as no Default or Event of Default then exists or would result therefrom, additional Indebtedness incurred by the Borrower and its Subsidiaries in an aggregate principal amount not to exceed the greater of (x) $50.0 million and (y) 3.0% Consolidated Total Assets at 

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any one time outstanding, which Indebtedness shall be unsecured unless otherwise permitted under Section 10.01(xxi).
10.05.     Advances, Investments and Loans.  The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, lend money or credit or make advances to or equity investments in any Person (excluding trade credit and advances to customers and commissions, travel and similar advances to officers, employees and consultants made it the ordinary course of business), or purchase or own a futures contract or otherwise become liable for the purchase or sale of currency or other commodities at a future date in the nature of a futures contract, or hold any cash or Cash Equivalents (each of the foregoing an “Investment” and, collectively, “Investments”), except that the following shall be permitted:
(i)the Borrower and its Subsidiaries may acquire and hold accounts receivables owing to any of them, if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms of the Borrower or such Subsidiary;
(ii)the Borrower and its Subsidiaries may acquire and hold cash and Cash Equivalents;
(iii)the Borrower and its Subsidiaries may hold the Investments held by them on the Effective Date and described on Schedule 10.05, provided that any additional Investments made with respect thereto shall be permitted only if permitted under the other provisions of this Section 10.05;
(iv)the Borrower and its Subsidiaries may acquire and own investments (including debt obligations) received in connection with the bankruptcy or reorganization of suppliers and customers and in good faith settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business;
(v)the Borrower and its Subsidiaries may make loans and advances to their officers, directors and employees for moving, relocation and travel expenses and other similar expenditures, in each case in the ordinary course of business in an aggregate amount not to exceed $500,000 at any time (determined without regard to any write-downs or write-offs of such loans and advances);
(vi)the Borrower and the other Credit Parties may enter into Interest Rate Protection Agreements and Other Hedging Agreements to the extent permitted by Section 10.04(iii);
(vii)(I) any Credit Party may make intercompany loans and advances to any other Credit Party (other than an MLP GP or the general partner of an MLP GP), (II) Borrower and its Domestic Subsidiaries (other than an MLP GP or the general partner of an MLP GP) whether or not existing on or before the date of this Agreement may make intercompany loans and advances to any Wholly-Owned Foreign Subsidiary, (III) any Subsidiary whether or not existing on or before the date of this Agreement which is not a Credit Party may make intercompany loans and advances to any Credit Party and (IV) any Foreign Subsidiary may make intercompany loans and advances to any other Foreign Subsidiary that is a Wholly-Owned Subsidiary (such intercompany loans and advances referred to in preceding clauses (I) through (IV), collectively, the “Intercompany Loans”), provided, that (u) at no time shall the aggregate outstanding principal amount of all Intercompany Loans made pursuant to preceding subclause (II) of this clause (vii), when added to the amount of contributions, acquisitions of Equity Interests, capitalizations and forgivenesses theretofore made pursuant to subclause (II) of Section 10.05(viii) (for this purposes, taking the 

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Fair Market Value  of any property (other than cash) so contributed at the time of such contribution), exceed the greater of (a) $15.0 million and (b) 1.0% of Consolidated Total Assets (determined without regard to any write-downs or write-offs of such loans and advances and net of any returns on any such Investment in the form of a principal repayment, distribution, dividend or redemption, as applicable), (v) no Intercompany Loan may be made pursuant to subclause (II) above at any time that a Default or an Event of Default has occurred and its continuing, (w) each Intercompany Loan shall be evidenced by an Intercompany Note, (x) each such Intercompany Note owned or held by a Credit Party shall be pledged to the Collateral Agent pursuant to the Guaranty and Collateral Agreement, (y) each Intercompany Loan made to a Credit Party by any Subsidiary of the Borrower that is not a Credit Party shall be subject to the subordination provisions contained in the respective Intercompany Note and (z) any Intercompany Loans made to any Guarantor or any Wholly-Owned Foreign Subsidiary pursuant to this clause (vii) shall cease to be permitted by this clause (vii) if such Guarantor or Wholly-Owned Foreign Subsidiary, as the case may be, ceases to constitute a Guarantor that is a Wholly-Owned Domestic Subsidiary or a Wholly-Owned Foreign Subsidiary, as the case may be;
(viii)(I) the Borrower and any Guarantor may make capital contributions to, or acquire Equity Interests of, any Guarantor which is a Wholly-Owned Domestic Subsidiary, (II) the Borrower and its Domestic Subsidiaries may make capital contributions to, or acquire Equity Interests of, Wholly-Owned Foreign Subsidiaries, and may capitalize or forgive any Indebtedness owed to them by a Wholly-Owned Foreign Subsidiary and outstanding under clause (vii) of this Section 10.05, and (III) any Wholly-Owned Foreign Subsidiary may make capital contributions to, or acquire Equity Interests of, any other Wholly-Owned Foreign Subsidiary, and may capitalize or forgive any Indebtedness owed to it by a Wholly-Owned Foreign Subsidiary; provided that (w) the aggregate amount of contributions, acquisitions of Equity Interests, capitalizations and forgiveness on and after the Initial Borrowing Date made pursuant to preceding subclause (II) (for this purpose, taking the Fair Market Value of any property (other than cash) so contributed at the time of such contribution), when added to the aggregate outstanding principal amount of Intercompany Loans made to Wholly-Owned Foreign Subsidiaries pursuant to subclause (II) of Section 10.05(vii) (determined without regard to any write-downs or write-offs thereof and net of any returns on any such Investment in the form of a principal repayment, distribution, dividend or redemption, as applicable), shall not exceed an amount equal to the greater of (a) $15.0 million and (b) 1.0% of Consolidated Total Assets, (x) no contribution, capitalization or forgiveness may be made pursuant to preceding subclause (II) at any time that a Default or an Event of Default has occurred and its continuing, (y) in the case of any contribution pursuant to preceding subclause (I), any security interest granted to the Collateral Agent for the benefit of the Secured Creditors pursuant to the Security Documents in any assets so contributed shall remain in full force and effect and perfected (to at least the same extent as in effect immediately prior to such contribution) and all actions required to maintain said perfected status have been taken and (z) any Investment made in or to any Guarantor or any Wholly-Owned Foreign Subsidiary pursuant to this clause (viii) shall cease to be permitted hereunder if such Guarantor or Wholly-Owned Foreign Subsidiary, as the case may be, ceases to constitute a Guarantor that is a Wholly-Owned Domestic Subsidiary or a Wholly-Owned Foreign Subsidiary, as the case may be;
(ix)the Borrower and its Subsidiaries may own the Equity Interests of their respective Subsidiaries and Unrestricted Subsidiaries that exist on the date of this Agreement and their respective Subsidiaries and Unrestricted Subsidiaries that are created or acquired in accordance with the terms of this Agreement (so long as all amounts invested in such created or acquired Subsidiaries or Unrestricted Subsidiaries are independently permitted under another provision of this Section 10.05);

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(x)Contingent Obligations permitted by Section 10.04, to the extent constituting Investments;
(xi)Permitted Acquisitions shall be permitted in accordance with the terms of this Agreement;
(xii)the Borrower and its Subsidiaries may receive and hold promissory notes and other non-cash consideration received in connection with any asset sale permitted by Section 10.02(iv);
(xiii)the Borrower and its Subsidiaries may make advances in the form of a prepayment of expenses to vendors, suppliers and trade creditors consistent with their past practices, so long as such expenses were incurred in the ordinary course of business of the Borrower or such Subsidiary;
(xiv)any Investment in a Receivables Subsidiary or any Investment by a Receivables Subsidiary in any other Person in connection with a Qualified Receivables Financing, including Investments of funds held in accounts permitted or required by the arrangements governing such Qualified Receivables Financing or any related Indebtedness; provided, however, that any Investment in a Receivables Subsidiary is in the form of a Purchase Money Note, contribution of additional receivables or an equity interest;
(xv)Investments in (x) a joint venture of the Borrower or any of its Subsidiaries in which the Borrower or such Subsidiaries owns more than 50% of the voting stock not to exceed the greater of (x) $20.0 million and (y) 1.0% of Consolidated Total Assets at any time outstanding and (y) in joint ventures listed on Schedule 10.05(xv); provided that if any Investment pursuant to this clause (xv) is made in a Person that is not a Guarantor on the date of the making of such Investment and such Person becomes a Guarantor after such date, such Investment shall thereafter be deemed to have been made pursuant to clause (vii) above and shall cease to have been made pursuant to this clause (xv) for so long as such Person continues to be a Guarantor;
(xvi)Intercompany Indebtedness incurred in connection with the Acquisition and the other transactions described in the Acquisition Documents in accordance with the terms thereof, including, for the avoidance of doubt, the Investments described on Schedule 10.05(xvi);
(xvii)Investments in newly formed Foreign Subsidiaries of the Borrower described on Schedule 10.05(xvii);
(xviii)in addition to Investments permitted by clauses (i) through (xvii) of this Section 10.05, the Borrower and its Subsidiaries may make additional loans, advances and other Investments to or in a Person in an aggregate amount for all loans, advances and other Investments made pursuant to this clause (xviii) (determined without regard to any write-downs or write-offs thereof), net of cash repayments of principal in the case of loans, sale proceeds in the case of Investments in the form of debt instruments and cash equity returns (whether as a distribution, dividend, redemption or sale) in the case of equity investments, not to exceed the greater of (x) $25.0 million and (y) 1.5% of Consolidated Total Assets as of the end of the Borrower’s most recently ended fiscal quarter for which internal financial statements are available; provided that if any Investment pursuant to this clause (xviii) is made in a Person that is not a Guarantor on the date of the making of such Investment and such Person becomes a Guarantor after such date, such Investment shall thereafter be deemed to have been made pursuant to clause (vii) above and 

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shall cease to have been made pursuant to this clause (xviii) for so long as such Person continues to be a Guarantor;
(xix)the Borrower and any of its Subsidiaries may make additional Investments in an amount not to exceed the Cumulative Retained Consolidated Net Income as in effect immediately before the respective Investment; provided that no Default or Event of Default exists or would result therefrom;
(xx)the Borrower and any of its Subsidiaries may make any Investment in securities or other assets not constituting cash or Cash Equivalents or received in connection with (i) the Oxford Acquisition and the Initial Oxford Dropdown, (ii) an Asset Sale, Permitted GP Transfer or Permitted MLP Transfer permitted by Section 10.02 or (iii) any other disposition of assets (other than a Permitted MLP Transfer or Permitted GP Transfer) not constituting an Asset Sale; 
(xxi)the Borrower and any of its Subsidiaries may make any Investment in an MLP or a GP; provided that such Investment results from a Permitted MLP Asset Transfer or a Permitted MLP Equity Transfer; 
(xxii)the Borrower and any of its Subsidiaries may make Investments that are made with Excluded Contributions; and
(xxiii)any Investment made by Absaloka or its equity owners in connection with an Indian Coal Tax Credit Transaction.
10.06.     Transactions with Affiliates.  The Borrower will not, and will not permit any of its Subsidiaries to, enter into any transaction or series of related transactions with any Affiliate of the Borrower or any of its Subsidiaries involving aggregate consideration in excess of $20 million, other than in the ordinary course of business and on terms and conditions not materially less favorable to the Borrower or such Subsidiary than those that would reasonably have been obtained by the Borrower or such Subsidiary at that time in a comparable transaction with a Person other than an Affiliate, except that the following in any event shall be permitted:
(i)Dividends may be paid to the extent provided in Section 10.03;
(ii)loans may be made and other transactions may be entered into by the Borrower and its Subsidiaries to the extent permitted by Sections 10.02, 10.04 and 10.05;
(iii)customary fees, indemnities and reimbursements may be paid to non-officer directors of the Borrower and its Subsidiaries;
(iv)the Borrower and its Subsidiaries may enter into, and may make payments under, employment agreements, severance agreements, employee benefits plans, stock purchase plans, stock option plans, indemnification provisions and other similar compensatory arrangements with officers, employees and directors of the Borrower and its Subsidiaries in the ordinary course of business;
(v)Subsidiaries of the Borrower may pay management fees, licensing fees and similar fees to the Borrower or to any Subsidiary of the Borrower;
(vi)transactions (including a merger) between or among the Borrower and/or any of its Subsidiaries that are Guarantors

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(vii)any transaction effected as part of a Qualified Receivables Financing
(viii)any transaction in which the Borrower or any of its Subsidiaries, as the case may be, delivers to the Administrative Agent an opinion as to the fairness to the Borrower or such Subsidiary of such Affiliate Transaction from a financial point of view issued by an accounting, appraisal or investment banking firm of national standing;
(ix)the payment of all fees and expenses incurred in connection with the Transaction on the terms described in the Offering Memorandum; 
(x)the Initial Oxford Dropdown, any Permitted MLP Asset Transfer and any Permitted MLP Equity Transfer; and
(xi)payment for services rendered between any MLP or GP and one or more of the Borrower or any Guarantor, if (x) payment is made or completed in compliance with the terms and provisions of the partnership agreement of the MLP (or comparable governing document of the GP) and (y) such transaction is on terms and conditions fair and reasonable to the Borrower or such Guarantor as determined in good faith by the Borrower.
Notwithstanding anything to the contrary contained above in this Section 10.06, in no event shall the Borrower or any of its Subsidiaries pay any management, consulting or similar fee to any of their respective Affiliates except as specifically provided in clause (v) of this Section 10.06.
10.07.     Limitation on Certain Restrictions on Subsidiaries.  The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, create or permit to exist or become effective any consensual encumbrance or restriction on the ability of any such Subsidiary to (a) pay dividends or make any other distributions on its Capital Stock to the Borrower or any Subsidiary, or with respect to any other Equity Interest or participation in, or measured by its profits, or pay any Indebtedness owed to the Borrower or any of its Subsidiaries, (b) make loans or advances to the Borrower or any of its Subsidiaries or (c) transfer any of its properties or assets to the Borrower or any of its Subsidiaries, except for such encumbrances or restrictions existing under or by reason of (i) applicable law, (ii) this Agreement, the other Credit Documents, the ABL Documents, the Initial First Lien Notes and the indenture and other documentation governing, or entered into in connection with, the Initial First Lien Notes, (iii) customary provisions restricting subletting or assignment of any lease governing any leasehold interest of the Borrower or any of its Subsidiaries, (iv) customary provisions restricting assignment of any licensing agreement (in which Borrower or any of its Subsidiaries is the licensee) or other contract entered into by the Borrower or any of its Subsidiaries in the ordinary course of business, (v) restrictions on the transfer of any asset pending the close of the sale of such asset, (vi) restrictions on the transfer of any asset subject to a Lien permitted by Section 10.01; (vii) restrictions applicable to any Subsidiary existing at the time of the acquisition thereof as a result of an Investment pursuant to Section 10.05 or a Permitted Acquisition effected in accordance with the terms of this Agreement; provided that the restrictions applicable to such Subsidiary are not made more burdensome, from the perspective of the Borrower and its Subsidiaries, than those as in effect immediately before giving effect to the consummation of the respective Investment or Permitted Acquisition; (viii) restrictions contained in any documents or agreements evidencing, relating to or otherwise governing a Receivables Financing with respect to any Receivables Subsidiary; (ix) customary provisions in joint venture agreements, partnership agreements, limited liability company documents and other similar agreements, in each case entered into in the ordinary course of business; (x) customary provisions restricting assignment of any agreement entered into in the ordinary course of business; (xi) any amendment, restatement, renewal, replacement or refinancing of an agreement referred to above; provided that such restrictions are not 

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materially more restrictive, taken as a whole, than those under the agreement being amended, restated, renewed, refinanced or replaced; and (xii) restrictions listed on Schedule 10.07.
10.08.     Business; etc.  Borrower will not, and will not permit any of its Subsidiaries to, engage directly or indirectly in any business other than the businesses engaged in by the Borrower and its Subsidiaries as of the Initial Borrowing Date and reasonable extensions thereof and businesses ancillary or complimentary thereto (“Permitted Business”).
10.09.     Optional Payments and Modifications of Certain Debt Instruments.  Borrower will not, and will not permit any of its Subsidiaries to, (a) make or offer to make any optional or voluntary payment, prepayment, repurchase or redemption of or otherwise optionally or voluntarily defease or segregate funds with respect to any Junior Debt; or (b) amend, modify, waive or otherwise change, or consent or agree to any amendment, modification, waiver or other change to, any of the terms of any Junior Debt, the Initial First Lien Notes or the ABL Documents that would be materially adverse to the Lenders and the other Secured Creditors (it being understood that the commitments under the ABL Documents may be increased up to the greater of (x) $100,000,000 and (y) the sum of 85% of the aggregate book value of accounts receivable plus 50% of the aggregate book value of inventory of the Borrower and its Subsidiaries at the time of incurrence less the amount of certain permanent principal payments in accordance with the terms thereof (such increased amount, the “Permitted ABL Indebtedness”)).
SECTION 11.     Events of Default.
Upon the occurrence of any of the following specified events (each, an “Event of Default”):
11.01.     Payments.  Borrower shall (i) default in the payment when due of any principal of any Loan or any Note or (ii) default, and such default shall continue unremedied for five or more Business Days, in the payment when due of any interest on any Loan or Note or any Fees or any other amounts owing hereunder or under any other Credit Document; or
11.02.     Representations, etc.  Any representation, warranty or statement made or deemed made by any Credit Party herein or in any other Credit Document or in any certificate delivered to the Administrative Agent or any Lender pursuant hereto or thereto shall prove to be untrue in any material respect on the date as of which made or deemed made; or
11.03.     Covenants.  The Borrower or any of its Subsidiaries shall (i) default in the due performance or observance by it of any term, covenant or agreement contained in Section 9.01(f)(i), 9.04 (solely with respect to the existence of the Borrower), 9.10, 9.12 or Section 10 or (ii) default in the due performance or observance by it of any other term, covenant or agreement contained in this Agreement or any other Credit Document (other than those set forth in Sections 11.01 and 11.02) and such default shall continue unremedied for a period of 30 days after the date on which written notice thereof is given to the Borrower by the Administrative Agent or the Required Lenders; or
11.04.     Default Under Other Agreements.  (i) The Borrower or any of its Subsidiaries shall (x) default in any payment of any Indebtedness (other than the Obligations but including, for the avoidance of doubt, the Initial First Lien Notes and the ABL Facility) beyond the period of grace, if any, provided in any instrument or agreement under which such Indebtedness was created or (y) default in the observance or performance of any agreement or condition relating to any Indebtedness (other than the Obligations but including, for the avoidance of doubt, the Initial First Lien Notes and the ABL Facility) or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall 

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occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause (determined without regard to whether any notice is required), any such Indebtedness to become due prior to its stated maturity, or (ii) any Indebtedness (other than the Obligations but including, for the avoidance of doubt, the Initial First Lien Notes and the ABL Facility) of the Borrower or any of its Subsidiaries shall be declared to be (or shall become) due and payable, or required to be prepaid other than by a regularly scheduled required prepayment, prior to the stated maturity thereof, provided that this clause (ii) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder and under the documents providing for such Indebtedness and provided further that, other with respect to the Initial First Lien Notes and the ABL Facility, it shall not be a Default or an Event of Default under this Section 11.04 unless the aggregate principal amount of all Indebtedness as described in preceding clauses (i) and (ii) is at least $25,000,000; or
11.05.     Bankruptcy, etc.  The Borrower or any of its Material Subsidiaries shall commence a voluntary case concerning itself under Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto (the “Bankruptcy Code”); or an involuntary case is commenced against the Borrower or any of its Material Subsidiaries, and the petition is not dismissed or stayed within 60 days after the filing thereof, provided, however, that during the pendency of such period, each Lender shall be relieved of its obligation to extend credit hereunder; or a custodian (as defined in the Bankruptcy Code), receiver, receiver-manager, administrator, monitor, trustee or similar official is appointed for, or takes charge of, all or substantially all of the property of the Borrower or any of its Subsidiaries, to operate all or any substantial portion of the business of the Borrower or any of its Subsidiaries, or the Borrower or any of its Subsidiaries commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Borrower or any of its Subsidiaries, or there is commenced against the Borrower or any of its Subsidiaries any such proceeding which remains undismissed or unstayed for a period of 60 days after the filing thereof, or the Borrower or any of its Subsidiaries is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Borrower or any of its Subsidiaries makes a general assignment for the benefit of creditors; or action is taken by the Borrower or any of its Subsidiaries for the purpose of effecting any of the foregoing; or
11.06.     ERISA.
(a)    one or more ERISA Events shall have occurred, or
(b)    there is or arises any potential withdrawal liability under Section 4201 of ERISA, if the Borrower or the ERISA Affiliates were to withdraw completely from any and all Multiemployer Plans;
and the liability of any or all of the Borrower and the ERISA Affiliates contemplated by the foregoing clauses (a) and (b), either individually or in the aggregate, has had or would be reasonably expected to have, a Material Adverse Effect; or
11.07.     Security Documents.  Any of the Security Documents shall cease to be in full force and effect, or shall cease to give the Collateral Agent for the benefit of the Secured Creditors the Liens, rights, powers and privileges purported to be created thereby (including, without limitation, a perfected security interest in, and Lien on, all of the Collateral, in favor of the Collateral Agent, superior to and prior to the rights of all third Persons (except as permitted by Section 10.01 or by the ABL Intercreditor Agreement or First Lien Intercreditor Agreement), and subject to no other Liens (except as 

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permitted by Section 10.01), provided that the failure to have a perfected and enforceable Lien on Collateral in favor of the Collateral Agent shall not give rise to an Event of Default under this Section 11.07 (a) if any lack of perfection or enforceability results from any act or omission of the Collateral Agent or the Administrative Agent (so long as such act or omission does not result from the breach or non-compliance by a Credit Party with the terms of any Credit Document), or (b)  unless the aggregate Fair Market Value of all Collateral over which the Collateral Agent fails to have a perfected and enforceable Lien (other than such failure described in clause (a) immediately above), equals or exceeds 2.0% of Consolidated Total Assets; or
11.08.     Guaranties.  Any Guaranty or any provision thereof shall cease to be in full force or effect as to any Guarantor (except as a result of a release of any Guarantor in accordance with the terms thereof), or any Guarantor or any Person acting for or on behalf of such Guarantor shall deny or disaffirm such Guarantor’s obligations under the Guaranty to which it is a party; or
11.09.     Judgments.  One or more judgments or decrees shall be entered against the Borrower or any Subsidiary of the Borrower involving in the aggregate for the Borrower and its Subsidiaries a liability (not paid or to the extent not covered by a reputable and solvent insurance company) and such judgments and decrees either shall be final and non-appealable or shall not be vacated, discharged or stayed or bonded pending appeal for any period of 60 consecutive days, and the aggregate amount of all such judgments equals or exceeds $25,000,000; or
11.10.     Change of Control.  A Change of Control shall occur; then, and in any such event, and at any time thereafter, if any Event of Default shall then be continuing, the Administrative Agent, upon the written request of the Required Lenders, shall by written notice to the Borrower, take any or all of the following actions, without prejudice to the rights of the Administrative Agent, any Lender or the holder of any Note to enforce its claims against any Credit Party (provided that, if an Event of Default specified in Section 11.05 shall occur with respect to the Borrower, the result that would occur upon the giving of written notice by the Administrative Agent as specified in clause (i) below shall occur automatically without the giving of any such notice):  (i) declare the principal of and any accrued interest in respect of all Loans and the Notes and all Obligations owing hereunder and thereunder to be, whereupon the same shall become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Credit Party; (ii) enforce, as Collateral Agent, all of the Liens and security interests created pursuant to the Security Documents; (iii) enforce each Guaranty; and (iv) apply any cash collateral held by the Administrative Agent pursuant to Section 5.02 to the repayment of the Obligations.
11.11.     Limitation on Activities of Absaloka.  The Borrower and any Subsidiary that controls Absaloka will cause Absaloka not to hold any material assets, become liable for any material obligations, engage in any trade or business, form any subsidiary, issue any securities or sell any assets or conduct any business activity, except as and to the extent necessary or desirable to enter into, or perform Indian Coal Tax Credit Transactions, which may include, without limitation, the issuance or sale of equity securities of Absaloka to a third party in connection with any Indian Coal Tax Credit Transactions, and the ownership and operation by Absaloka of the other ICTC Excluded Collateral.
11.12.     Limitation on Activities of Westmoreland Canada LLC.  The Borrower will not permit Westmoreland Canada, LLC to engage in any activities other than (a) holding the general partner interest in Westmoreland Canadian Investments, LP, (b) participating in any intercompany financings, or (c) activities appropriate or necessary in relation to such financings or its holding of such general partner interest.
SECTION 12.     The Administrative Agent.
12.01.     Appointment.  The Lenders hereby irrevocably designate and appoint Bank of Montreal as Administrative Agent (for purposes of this Section 12 and Section 13.01, the term “Administrative Agent” also shall include Bank of Montreal in its capacity as Collateral Agent pursuant to the Security Documents) to act as specified herein and in the other Credit Documents.  Each Lender hereby irrevocably authorizes, and each holder of any Note by the acceptance of such Note shall be deemed irrevocably to authorize, the Administrative Agent to take such action on its behalf under the provisions of this Agreement, the other Credit Documents and any other instruments and agreements referred to herein or therein and to exercise such powers and to perform such duties hereunder and thereunder 

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as are specifically delegated to or required of the Administrative Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto.  The Administrative Agent may perform any of its respective duties hereunder by or through its officers, directors, agents, employees or affiliates.
12.02.     Nature of Duties.  (a) The Administrative Agent shall not have any duties or responsibilities except those expressly set forth in this Agreement and in the other Credit Documents.  Neither the Administrative Agent nor any of its officers, directors, agents, employees or affiliates shall be liable for any action taken or omitted by it or them hereunder or under any other Credit Document or in connection herewith or therewith, unless caused by its or their gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).  The duties of the Administrative Agent shall be mechanical and administrative in nature; the Administrative Agent shall not have by reason of this Agreement or any other Credit Document a fiduciary relationship in respect of any Lender or the holder of any Note; and nothing in this Agreement or in any other Credit Document, expressed or implied, is intended to or shall be so construed as to impose upon the Administrative Agent any obligations in respect of this Agreement or any other Credit Document except as expressly set forth herein or therein.
(b)Notwithstanding any other provision of this Agreement or any provision of any other Credit Document, the Lead Arrangers are named as such for recognition purposes only, and in its capacity as such shall have no powers, duties, responsibilities or liabilities with respect to this Agreement or the other Credit Documents or the transactions contemplated hereby and thereby; it being understood and agreed that the Lead Arrangers shall be entitled to all indemnification and reimbursement rights in favor of the Administrative Agent as, and to the extent, provided for under Sections 12.06 and 13.01.  Without limitation of the foregoing, the Lead Arrangers shall not, solely by reason of this Agreement or any other Credit Documents, have any fiduciary relationship in respect of any Lender or any other Person.
12.03.     Lack of Reliance on the Administrative Agent.  Independently and without reliance upon the Administrative Agent, each Lender and the holder of each Note, to the extent it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Borrower and its Subsidiaries in connection with the making and the continuance of the Loans and the taking or not taking of any action in connection herewith and (ii) its own appraisal of the creditworthiness of the Borrower and its Subsidiaries and, except as expressly provided in this Agreement, the Administrative Agent shall not have any duty or responsibility, either initially or on a continuing basis, to provide any Lender or the holder of any Note with any credit or other information with respect thereto, whether coming into its possession before the making of the Loans or at any time or times thereafter.  The Administrative Agent shall not be responsible to any Lender or the holder of any Note for any recitals, statements, information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectability, priority or sufficiency of this Agreement or any other Credit Document or the financial condition of the Borrower or any of its Subsidiaries or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or 

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conditions of this Agreement or any other Credit Document, or the financial condition of the Borrower or any of its Subsidiaries or the existence or possible existence of any Default or Event of Default.
12.04.     Certain Rights of the Administrative Agent.  If the Administrative Agent requests instructions from the Required Lenders with respect to any act or action (including failure to act) in connection with this Agreement or any other Credit Document, the Administrative Agent shall be entitled to refrain from such act or taking such action unless and until the Administrative Agent shall have received instructions from the Required Lenders; and the Administrative Agent shall not incur liability to any Lender by reason of so refraining.  Without limiting the foregoing, neither any Lender nor the holder of any Note shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining from acting hereunder or under any other Credit Document in accordance with the instructions of the Required Lenders.
12.05.     Reliance.  The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent or made by any Person that the Administrative Agent believed to be the proper Person, and, with respect to all legal matters pertaining to this Agreement and any other Credit Document and its duties hereunder and thereunder, upon advice of counsel selected by the Administrative Agent.
12.06.     Indemnification.  To the extent the Administrative Agent (or any affiliate thereof) is not reimbursed and indemnified by the Borrower, the Lenders will reimburse and indemnify the Administrative Agent (and any affiliate thereof) in proportion to their respective “percentage” as used in determining the Required Lenders (determined as if there were no Defaulting Lenders) for and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses or disbursements of whatsoever kind or nature which may be imposed on, asserted against or incurred by the Administrative Agent (or any affiliate thereof) in performing its duties hereunder or under any other Credit Document or in any way relating to or arising out of this Agreement or any other Credit Document; provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, claims, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s (or such affiliate’s) gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).
12.07.     The Administrative Agent in its Individual Capacity.  With respect to its obligation to make Loans under this Agreement, the Administrative Agent shall have the rights and powers specified herein for a “Lender” and may exercise the same rights and powers as though it were not performing the duties specified herein; and the term “Lender,” “Majority Lenders,” “Required Lenders,” or any similar terms shall, unless the context clearly indicates otherwise, include the Administrative Agent in its respective individual capacities.  The Administrative Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, investment banking, trust or other business with, or provide debt financing, equity capital or other services (including financial advisory services) to any Credit Party or any Affiliate of any Credit Party (or any Person engaged in a similar business with any Credit Party or any Affiliate thereof) as if they were not performing the duties specified herein, and may accept fees and other consideration from any Credit Party or any Affiliate of any Credit Party for services in connection with this Agreement and otherwise without having to account for the same to the Lenders.
12.08.     Holders.  The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all purposes hereof unless and until a written notice of the assignment, transfer or endorsement thereof, as the case may be, shall have been filed with the Administrative Agent.  Any request, authority or consent of any Person who, at the time of making such request or giving such 

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authority or consent, is the holder of any Note shall be conclusive and binding on any subsequent holder, transferee, assignee or endorsee, as the case may be, of such Note or of any Note or Notes issued in exchange therefor.
12.09.     Resignation by the Administrative Agent.  (a) The Administrative Agent may resign from the performance of all its respective functions and duties hereunder and/or under the other Credit Documents at any time by giving 15 Business Days’ prior written notice to the Lenders and, unless an Event of Default under Section 11.05 then exists, the Borrower.  Such resignation shall take effect upon the appointment of a successor Administrative Agent pursuant to clauses (b) and (c) below or as otherwise provided below.
(b)Upon any such notice of resignation by the Administrative Agent, the Required Lenders shall appoint a successor Administrative Agent hereunder or thereunder who shall be a commercial bank or trust company reasonably acceptable to the Borrower, which acceptance shall not be unreasonably withheld or delayed (provided that the Borrower’s approval shall not be required if an Event of Default then exists).
(c)If a successor Administrative Agent shall not have been so appointed within such 15 Business Day period, the Administrative Agent, with the consent of the Borrower (which consent shall not be unreasonably withheld or delayed, provided that the Borrower’s consent shall not be required if an Event of Default then exists), shall then appoint a successor Administrative Agent who shall serve as Administrative Agent hereunder or thereunder until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided above.
(d)If no successor Administrative Agent has been appointed pursuant to clause (b) or (c) above by the 20th Business Day after the date such notice of resignation was given by the Administrative Agent, the Administrative Agent’s resignation shall become effective and the Required Lenders shall thereafter perform all the duties of the Administrative Agent hereunder and/or under any other Credit Document until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided in clause (b) above.
(e)Upon a resignation of the Administrative Agent pursuant to this Section 12.09, the Administrative Agent shall remain indemnified to the extent provided in this Agreement and the other Credit Documents and the provisions of this Section 12 (and the analogous provisions of the other Credit Documents) shall continue in effect for the benefit of the Administrative Agent for all of its actions and inactions while serving as the Administrative Agent.
12.10.     Collateral Matters.  (a) Each Lender authorizes and directs the Collateral Agent to enter into the Security Documents for the benefit of the Lenders and the other Secured Creditors. In addition, each Lender, for the benefit of all parties to this Agreement, authorizes and directs the Collateral Agent to enter into the First Lien Intercreditor Agreement, the ABL Intercreditor Agreement and other intercreditor agreements required in connection with the applicable issuance of Initial First Lien Notes, the ABL Facility, Permitted First Lien Notes and Permitted Second Lien Notes (which intercreditor agreements shall be deemed to constitute Security Documents for all purposes of this Agreement) and any amendments to the Security Documents that may be necessary in connection therewith for the benefit of the Lenders and the Secured Creditors. Each Lender hereby agrees, and each holder of any Note by the acceptance thereof will be deemed to agree, that, except as otherwise set forth herein, any action taken by the Required Lenders in accordance with the provisions of this Agreement or the Security Documents, and the exercise by the Required Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Lenders.  The Collateral Agent is hereby authorized on behalf of all of the Lenders, without the necessity of any 

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notice to or further consent from any Lender, from time to time prior to an Event of Default, to take any action with respect to any Collateral or Security Documents which may be necessary to perfect and maintain perfected the security interest in and liens upon the Collateral granted pursuant to the Security Documents.
(b)The Lenders hereby authorize the Collateral Agent, at its option and in its discretion, to release any Lien granted to or held by the Collateral Agent upon any Collateral (i) upon the payment and satisfaction of all of the Obligations (other than inchoate indemnification obligations) at any time arising under or in respect of this Agreement or the Credit Documents or the transactions contemplated hereby or thereby, (ii) constituting property being sold or otherwise disposed of (to Persons other than the Borrower and its Subsidiaries) upon the sale or other disposition thereof in compliance with Section 10.02, (iii) if approved, authorized or ratified in writing by the Required Lenders (or all of the Lenders hereunder, to the extent required by Section 13.12) or (iv) as otherwise may be expressly provided in the relevant Security Documents or the last sentence of each of Sections 10.01 and 10.02.  Upon request by the Administrative Agent at any time, the Lenders will confirm in writing the Collateral Agent’s authority to release particular types or items of Collateral pursuant to this Section 12.10; provided that any Lender that does not respond to such request within fifteen days after it being made by the Collateral Agent shall have deemed to have confirmed the Collateral Agent’s authority to release the Collateral.
(c)Anything contained in any of the Credit Documents to the contrary notwithstanding, the Borrower, the Agents and each Secured Creditor hereby agree that (i) no Secured Creditor shall have any right individually to realize upon any of the Collateral, it being understood and agreed that all powers, rights and remedies hereunder may be exercised by the Administrative Agent, on behalf of the Secured Creditors in accordance with the terms hereof and all powers, rights and remedies under the Security Documents may be exercised by the Collateral Agent and (ii) in the event of a foreclosure by the Collateral Agent or on any of the Collateral pursuant to a public or private sale or other disposition, the Collateral Agent or any Lender may be the purchaser or licensor of any or all of such Collateral at any such sale or other disposition and the Collateral Agent, as agent for, and representative of, the Secured Creditors (but not any Lender or Lenders in its or their respective individual capacities unless Required Lenders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale or other disposition.  The Collateral Agent shall have no obligation whatsoever to the Lenders or to any other Person to assure that the Collateral exists or is owned by any Credit Party or is cared for, protected or insured or that the Liens granted to the Collateral Agent herein or pursuant hereto have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available to the Collateral Agent in this Section 12.10 or in any of the Security Documents, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Collateral Agent may act in any manner it may deem appropriate, in its sole discretion, given the Collateral Agent’s own interest in the Collateral as one of the Lenders and that the Collateral Agent shall have no duty or liability whatsoever to the Lenders, except for its gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).
12.11.     Delivery of Information.  The Administrative Agent shall not be required to deliver to any Lender originals or copies of any documents, instruments, notices, communications or other information received by the Administrative Agent from any Credit Party, any Subsidiary, the Required Lenders, any Lender or any other Person under or in connection with this Agreement or any other Credit Document except (i) as specifically provided in this Agreement or any other Credit Document 

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and (ii) as specifically requested from time to time in writing by any Lender with respect to a specific document, instrument, notice or other written communication received by and in the possession of the Administrative Agent at the time of receipt of such request and then only in accordance with such specific request.
SECTION 13.     Miscellaneous.
13.01.     Payment of Expenses, etc.  (a) The Borrower shall: (i) whether or not the transactions herein contemplated are consummated, pay all reasonable out-of-pocket costs and expenses of (x) the Administrative Agent (including, without limitation, the reasonable fees and disbursements of one counsel for the Administrative Agent, one counsel in each relevant local jurisdiction and one regulatory counsel) incurred in connection with the preparation, execution, delivery and administration of this Agreement and the other Credit Documents and the documents and instruments referred to herein and therein and any amendment, waiver or consent relating hereto or thereto, of the Administrative Agent and the Lead Arrangers and their respective Affiliates in connection with its or their syndication efforts with respect to this Agreement and (y) the Administrative Agent and the Lenders in connection with the enforcement of this Agreement and the other Credit Documents and the documents and instruments referred to herein and therein or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings; provided, however, that in the absence of conflicts, reimbursement of legal fees and disbursements shall be limited to the reasonable fees and disbursements of one counsel (and one local counsel in each relevant jurisdiction and one regulatory counsel, if applicable) for the Administrative Agent and the Lenders, such counsel to be selected by the Administrative Agent; (ii) pay and hold the Administrative Agent and each of the Lenders harmless from and against any and all Other Taxes with respect to the foregoing matters and save the Administrative Agent and each of the Lenders harmless from and against any and all liabilities with respect to or resulting from any delay or omission (other than to the extent attributable to the Administrative Agent or such Lender as a result of the gross negligence or willful misconduct of such Person (as determined by a court of competent jurisdiction in a final and non-appealable decision)) to pay such Other Taxes; and (iii) indemnify the Administrative Agent and each Lender, and each of their respective directors, officers, employees, advisors, agents, affiliates (including, without limitation, controlling persons), successors, partners, representatives, trustees and assignees (each, an “Indemnified Person”) from and hold each of them harmless against any and all liabilities, obligations (including removal or remedial actions), losses, damages (including, without limitation, consequential damages), penalties, claims, actions, judgments, suits, costs, expenses, consultants’ fees and disbursements (including reasonable documented fees, disbursements, disbursements and other charges of one primary counsel and one local counsel for each relevant jurisdiction to such Indemnified Persons (unless there is an actual or perceived conflict of interest or the availability of different claims or defenses in which case each such Person may retain its own counsel)) incurred by, imposed on or assessed against any of them as a result of, or arising out of, or in any way related to, or by reason of, (a) any investigation, litigation or other proceeding (whether or not the Administrative Agent or any Lender is a party thereto and whether or not such investigation, litigation or other proceeding is brought by or on behalf of any Credit Party) related to the entering into and/or performance of this Agreement or any other Credit Document or the proceeds of any Loans hereunder or the consummation of the Financing Transaction or any other transactions contemplated herein or in any other Credit Document or the exercise of any of their rights or remedies provided herein or in the other Credit Documents, or (b) the actual or alleged presence of Hazardous Materials in the air, surface water or groundwater or on the surface or subsurface of any Real Property at any time owned, leased or operated by the Borrower or any of its Subsidiaries, the generation, storage, transportation, handling or disposal of Hazardous Materials by the Borrower or any of its Subsidiaries at any location, whether or not owned, leased or operated by the Borrower or any of its Subsidiaries, the non-compliance by the Borrower or any of its Subsidiaries with any Environmental Law (including Environmental Permits), or any Environmental 

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Claim asserted against the Borrower, any of its Subsidiaries or any Real Property at any time owned, leased or operated by the Borrower or any of its Subsidiaries, provided that no Credit Party shall have any obligation hereunder to any Indemnified Person with respect to indemnified liabilities to the extent it has been determined by a final non-appealable judgment of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Person; provided further that the liabilities arising solely pursuant to clause (iii)(b) of this Section 13.01(a), shall not include any liabilities that would not have arisen but for the execution of this Agreement or any other Credit Document.  To the extent that the undertaking to indemnify, pay or hold harmless the Administrative Agent or any Lender set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, the Borrower shall make the maximum contribution to the payment and satisfaction of each of the indemnified liabilities that is permissible under applicable law.
(b)To the full extent permitted by applicable law, no party hereto shall assert, and each party hereby waives, any claim against each other party hereto, on any theory of liability, for special, indirect, consequential or incidental damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof; provided that the foregoing shall not limit the indemnification obligations of the Borrower hereunder or under any other Credit Document.  No party shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby, except to the extent the liability of such party results from such party’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non‐appealable decision).  The Borrower agrees not to assert, and hereby waives, all rights for contribution or any other rights of recovery with respect to all claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature, under or related to Environmental Laws or related to Environmental Claims, that it now or hereafter may have by statute or otherwise against any Indemnified Person.
13.02.     Right of Setoff.  In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent and each Lender is hereby authorized at any time or from time to time, without presentment, demand, protest or other notice of any kind to any Credit Party or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and apply any and all deposits (general or special) and any other Indebtedness at any time held or owing by the Administrative Agent or such Lender (including, without limitation, by branches and agencies of the Administrative Agent or such Lender wherever located) to or for the credit or the account of the Borrower or any of its Subsidiaries against and on account of the Obligations and liabilities of the Credit Parties to the Administrative Agent or such Lender under this Agreement or under any of the other Credit Documents, including, without limitation, all interests in Obligations purchased by such Lender pursuant to Section 13.04(b), and all other claims of any nature or description arising out of or connected with this Agreement or any other Credit Document, irrespective of whether or not the Administrative Agent or such Lender shall have made any demand hereunder and although said Obligations, liabilities or claims, or any of them, shall be contingent or unmatured; provided that, to the extent prohibited by applicable law as described in the definition of “Excluded Swap Obligation”, no amounts received from, or set off with respect to, any Guarantor shall be applied to any Excluded Swap Obligations of such Guarantor.
13.03.     Notices.  (a) Except as otherwise expressly provided herein, all notices and other communications provided for hereunder shall be in writing and delivered by certified mail, return receipt requested, sent by facsimile, .pdf or any other means of electronic transmission or sent by overnight 

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courier:  if to any Credit Party, at the address specified opposite its signature below or in the other relevant Credit Documents; if to any Lender, at its address specified on Schedule 1.01(b); and if to the Administrative Agent, at the Notice Office; or, as to any Credit Party or the Administrative Agent, at such other address as shall be designated by such party in a written notice to the other parties hereto and, as to each Lender, at such other address as shall be designated by such Lender in a written notice to the Borrower and the Administrative Agent.  All such notices and communications shall be effective when received if sent by facsimile or .pdf, or when received or rejected if sent by certified mail or overnight delivery (as shown on the return receipt or tracking report, respectively).
(b)    Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by the Administrative Agent and the applicable Lender.  Each of the Administrative Agent, and the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.
13.04.     Benefit of Agreement; Assignments; Participations.  (a) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto; provided, however, the Borrower may not assign or transfer any of its rights, obligations or interest hereunder without the prior written consent of the Lenders and, provided further, that, although any Lender may, without consent or notice, grant participations to Eligible Transferees in its rights hereunder, such Lender shall remain a “Lender” for all purposes hereunder (and may not transfer or assign all or any portion of its Loans hereunder except as provided in Sections 2.13 and 13.04(b)) and the participant shall not constitute a “Lender” hereunder and, provided further, that no Lender shall transfer or grant any participation under which the participant shall have rights to approve any amendment to or waiver of this Agreement or any other Credit Document except to the extent such amendment or waiver would (i) extend the final scheduled maturity of any Loan or Note in which such participant is participating, or reduce the rate or extend the time of payment of interest or Fees thereon (except in connection with a waiver of applicability of any post-default increase in interest rates) or reduce the principal amount thereof (it being understood that any amendment or modification to the financial definitions in this Agreement or to Section 13.07(a) shall not constitute a reduction in the rate of interest or Fees payable hereunder), or increase the amount of the participant’s participation over the amount thereof then in effect (it being understood that a waiver of any Default or Event of Default or of a mandatory prepayment of the Loans shall not constitute a change in the terms of such participation, and that an increase in any Loan shall be permitted without the consent of any participant if the participant’s participation is not increased as a result thereof), (ii) consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement or (iii) release all or substantially all of (x) the Collateral (except as expressly provided in the Credit Documents) under all the Security Documents or (y) the guarantees under the Guaranty supporting the Loans in which such participant is participating.  In the case of any such participation, the participant shall not have any rights under this Agreement or any of the other Credit Documents (the participant’s rights against such Lender in respect of such participation to be those set forth in the agreement executed by such Lender in favor of the participant relating thereto) and all amounts payable by the Borrower hereunder shall be determined as if such Lender had not sold such participation.  The Borrower agrees that each participant shall be entitled to the benefits of Sections 2.10 and 5.04 (subject to the requirements and limitations therein, including the requirements under Section 5.04(b) (it being understood that the documentation required under Section 5.04(b) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment; provided that such participant agrees to be subject to the provisions of Sections 2.10 and 5.04 as if it were an assignee and to the extent that a participation would at the time of participation directly cause increased costs under Sections 2.10 or 5.04 from those being charged by the respective 

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Lender prior to such participation, then the Borrower shall not be obliged to pay such increased costs. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s interest in the Loans or other obligations under the Credit Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any participant or any information relating to a participant’s interest in any Commitments, Loans or its other obligations under any Credit Document) except to the extent that such disclosure is necessary to establish that such Commitment, Loan, or other obligation is in registered form under Section 5f.103-1(c) of the U.S. Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
(b)Notwithstanding the foregoing, any Lender (or any Lender together with one or more other Lenders) may (x) assign all or a portion of its outstanding Obligations hereunder to any existing Lender or Affiliate of a Lender or Approved Fund, provided, that no such assignment may be made to any such Person that is, or would at such time constitute, a Defaulting Lender or any of its Subsidiaries or (y) assign all, or if less than all, a portion equal to at least $1,000,000 (or such lesser amount as the Administrative Agent and, so long as no Event of Default then exists and is continuing, the Borrower may otherwise agree) in the aggregate for the assigning Lender or assigning Lenders, of such outstanding Obligations hereunder to one or more Eligible Transferees, each of which assignees shall become a party to this Agreement as a Lender by execution of an Assignment and Assumption Agreement, provided that (i) at such time, Schedule 1.01(a) shall be deemed modified to reflect the outstanding Loans of such new Lender and of the existing Lenders, (ii) upon the surrender of the relevant Notes by the assigning Lender (or, upon such assigning Lender’s indemnifying the Borrower for any lost Note pursuant to a customary indemnification agreement) new Notes will be issued, at the Borrower’s expense, to such new Lender and to the assigning Lender upon the request of such new Lender or assigning Lender, such new Notes to be in conformity with the requirements of Section 2.05 (with appropriate modifications) to the extent needed to reflect the revised outstanding Loans, (iii) the consent of the Administrative Agent and, so long as no Default or Event of Default then exists, the Borrower, shall be required in connection with any such assignment pursuant to clause (y) above (such consent, in any case, not to be unreasonably withheld, delayed or conditioned); and (iv) the Administrative Agent shall receive at the time of each such assignment, from the assigning or assignee Lender, the payment of a non-refundable assignment fee of $3,500 (provided that only one such fee shall be payable in the case of one or more concurrent assignments by or to investment funds managed or advised by the same investment advisor or an affiliated investment advisor).  To the extent of any assignment pursuant to this Section 13.04(b), the assigning Lender shall be relieved of its obligations hereunder with respect to its assigned outstanding Loans.  At the time of each assignment pursuant to this Section 13.04(b) to a Person that is not already a Lender hereunder, the respective assignee Lender shall, to the extent legally entitled to do so, provide to the Borrower the appropriate Internal Revenue Service Forms (and, if applicable, a Section 5.04(b)(ii) Certificate) and such other documentation described in Section 5.04(b).
(c)The Borrower shall also be entitled to purchase (from Lenders) outstanding principal of Term Loans in accordance with the provisions of Section 2.15, which purchases shall be evidenced by assignment from the respective Lender to the Borrower.  All Loans purchased pursuant to Section 2.15 shall be immediately and automatically cancelled and retired, and the Borrower shall in no event become a Lender hereunder.  To the extent of any assignment to the Borrower as described in this clause (c), the assigning Lender shall be relieved of its obligations hereunder with respect to the assigned Term Loans.

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(d)Nothing in this Agreement shall prevent or prohibit any Lender from pledging its Loans and Notes hereunder to a Federal Reserve Bank or any central bank in support of borrowings made by such Lender from such Federal Reserve Bank or central bank, any Lender which is a fund may pledge all or any portion of its Loans and Notes to its trustee or to a collateral agent providing credit or credit support to such Lender in support of its obligations to such trustee, such collateral agent or a holder of such obligations, as the case may be.  No pledge pursuant to this clause (d) shall release the transferor Lender from any of its obligations hereunder.
(e)Any Lender that assigns all of its Loans hereunder in accordance with Section 13.04(b) shall cease to constitute a “Lender” hereunder, except with respect to indemnification provisions under this Agreement (including, without limitation, Sections 2.10, 2.11, 5.04, 12.06, 13.01 and 13.06), which shall survive as to such assigning Lender.
13.05.     No Waiver; Remedies Cumulative.  No failure or delay on the part of the Administrative Agent, the Collateral Agent or any Lender in exercising any right, power or privilege hereunder or under any other Credit Document and no course of dealing between the Borrower or any other Credit Party and the Administrative Agent, the Collateral Agent or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any other Credit Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder.  The rights, powers and remedies herein or in any other Credit Document expressly provided are cumulative and not exclusive of any rights, powers or remedies which the Administrative Agent, the Collateral Agent or any Lender would otherwise have.  No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Administrative Agent, the Collateral Agent or any Lender to any other or further action in any circumstances without notice or demand.
13.06.     Payments Pro Rata.  (a) Except as otherwise provided in this Agreement, the Administrative Agent agrees that promptly after its receipt of each payment from or on behalf of the Borrower in respect of any Obligations hereunder, the Administrative Agent shall distribute such payment to the Lenders entitled thereto (other than any Lender that has consented in writing to waive its pro rata share of any such payment) pro rata based upon their respective shares, if any, of the Obligations with respect to which such payment was received.
(b)Each of the Lenders agrees that, if it should receive any amount hereunder (whether by voluntary payment, by realization upon security, by the exercise of the right of setoff or banker’s lien, by counterclaim or cross action, by the enforcement of any right under the Credit Documents, or otherwise), which is applicable to the payment of the principal of, or interest on, the Loans, of a sum which with respect to the related sum or sums received by other Lenders is in a greater proportion than the total of such Obligation then owed and due to such Lender bears to the total of such Obligation then owed and due to all of the Lenders immediately prior to such receipt, then such Lender receiving such excess payment shall purchase for cash without recourse or warranty from the other Lenders an interest in the Obligations of the respective Credit Party to such Lenders in such amount as shall result in a proportional participation by all the Lenders in such amount; provided that (i) if all or any portion of such excess amount is thereafter recovered from such Lenders, such purchase shall be rescinded and the purchase price restored to the extent of such recovery, but without interest and (ii) the provisions of this paragraph (b) shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations pursuant to Section 13.04, other than, except as permitted pursuant to Section 2.15, to the Borrower or any Subsidiary thereof (as to which the provisions of this paragraph (b) shall apply).

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(c)Notwithstanding anything to the contrary contained herein, the provisions of the preceding Sections 13.06(a) and (b) shall be subject to the express provisions of this Agreement which require, or permit, differing payments to be made to Non-Defaulting Lenders as opposed to Defaulting Lenders.
13.07.     Calculations; Computations.  (a) The financial statements to be furnished to the Lenders pursuant hereto shall be made and prepared in accordance with GAAP consistently applied throughout the periods involved (except as set forth in the notes thereto or as otherwise disclosed in writing by the Borrower to the Lenders); provided that, (i) notwithstanding anything to the contrary contained herein, all such financial statements shall be prepared, and all financial covenants contained herein or in any other Credit Document shall be calculated, in each case, without giving effect to any election under FASB ASC 825 (or any similar accounting principle) permitting a Person to value its financial liabilities at the fair value thereof and (ii) to the extent expressly provided herein, certain calculations shall be made on a Pro Forma Basis.
(b)All computations of interest, and Fees hereunder shall be made on the basis of a year of 360 days (except for interest calculated by reference to the Prime Lending Rate, which shall be based on a year of 365 or 366 days, as applicable) for the actual number of days (including the first day but excluding the last day.
13.08.     GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.  (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL, EXCEPT AS OTHERWISE PROVIDED IN ANY MORTGAGE, BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT, EACH PARTY HERETO HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS.  EACH PARTY HERETO HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH PARTY, AND AGREES NOT TO PLEAD OR CLAIM, IN ANY LEGAL ACTION PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH PARTY.  EACH PARTY HERETO FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT ITS ADDRESS SET FORTH OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PARTY IN ANY OTHER JURISDICTION, INCLUDING, WITHOUT LIMITATION, THE ADMINISTRATIVE AGENT OR ANY LENDER BRINGING ANY ACTION TO 

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ENFORCE ANY AWARD OR JUDGMENT OR EXERCISE ANY RIGHT UNDER THE SECURITY DOCUMENTS OR AGAINST ANY COLLATERAL OR ANY OTHER PROPERTY OF ANY CREDIT PARTY IN ANY OTHER FORUM IN WHICH JURISDICTION CAN BE ESTABLISHED.
(b)EACH PARTY HERETO IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
(c)EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
13.09.     Counterparts.  This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered (including by facsimile or other electronic transmission) shall be an original, but all of which shall together constitute one and the same instrument.  A set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the Administrative Agent.
13.10.     Effectiveness.  This Agreement shall become effective on the date (the “Effective Date”) on which the Borrower, the Administrative Agent and each of the Lenders shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered the same to the Administrative Agent at the Notice Office or, in the case of the Lenders, shall have given to the Administrative Agent telephonic (confirmed in writing), written or telex notice (actually received) at such office that the same has been signed and mailed to it.  The Administrative Agent will give the Borrower and each Lender prompt written notice of the occurrence of the Effective Date.
13.11.     Headings Descriptive.  The headings of the several sections and subsections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.
13.12.     Amendment or Waiver; etc.  (a) Neither this Agreement nor any other Credit Document nor any terms hereof or thereof may be changed, waived, discharged or terminated unless such change, waiver, discharge or termination is in writing signed by the respective Credit Parties party hereto or thereto and the Required Lenders (although additional parties may be added to (and annexes may be modified to reflect such additions), and Subsidiaries of the Borrower may be released from the Guaranty and the relevant Security Documents in accordance with the provisions hereof and thereof without the consent of the other Credit Parties party thereto or the Required Lenders), provided that no such change, waiver, discharge or termination shall, without the consent of each Lender (other than, except with respect to following clause (i), a Defaulting Lender) (with Obligations being directly affected in the case of following clauses (i)(y) and (v) or whose Obligations are being extended in the case of following clause (i)(x)), (i)(x) extend the final scheduled maturity of any Loan or Note, (y) or reduce the rate or extend the time of payment of interest or Fees thereon (except in connection with the waiver of applicability of any post-default increase in interest rates), or reduce (or forgive) the principal amount thereof (it being understood that any amendment or modification to the financial definitions in this Agreement or to Section 13.07(a) shall not constitute a reduction in the rate of interest or Fees for the purposes of this clause (i)), (ii) release all or substantially all of (x) the Collateral (except as expressly provided in the 

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Credit Documents) under all the Security Documents or (y) the guarantees under the Guaranty, (iii) amend, modify or waive any provision of this Section 13.12(a) (except for technical amendments with respect to additional extensions of credit pursuant to this Agreement which afford the protections to such additional extensions of credit of the type provided to the Term Loans on the Effective Date), (iv) reduce the “majority” voting threshold specified in the definition of Required Lenders (it being understood that, with the consent of the Required Lenders, additional extensions of credit pursuant to this Agreement may be included in the determination of the Required Lenders on substantially the same basis as the extensions of Term Loans are included on the Effective Date) or (v) consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement; provided further, that no such change, waiver, discharge or termination shall (1) without the consent of the Administrative Agent, amend, modify or waive any provision of Section 12 or any other provision as same relates to the rights or obligations of the then Administrative Agent, (2) without the consent of the then Collateral Agent, amend, modify or waive any provision relating to the rights or obligations of the Collateral Agent, (3) except as permitted pursuant to Section 2.16 and in cases where additional extensions of term loans are being afforded substantially the same treatment afforded to the Term Loans pursuant to this Agreement on the Effective Date, without the consent of the Majority Lenders of each Tranche which is being allocated a lesser prepayment or repayment as a result of the actions described below, alter the required application of any prepayments or repayments, as between the various Tranches, pursuant to Section 5.02(g) (it being understood, however, that (A) the Required Lenders may waive, in whole or in part, any such prepayment or repayment, so long as the application, as amongst the various Tranches, of any such prepayment or repayment which is still required to be made is not altered and (B) any conversion of any Tranche of Loans into another Tranche of Loans hereunder in like principal amount shall not be considered a “prepayment” or “repayment” for purposes of this clause (3)), or (4) without the consent of the Majority Lenders of the respective Tranche affected thereby, amend the definition of Majority Lenders (it being understood that, with the consent of the Required Lenders, additional extensions of credit pursuant to this Agreement may be included in the determination of the Majority Lenders on substantially the same basis as the extensions of Loans are included on the Effective Date), or (5) reduce the amount of, or extend the date of, any Scheduled Term Loan Repayment without the consent of the Majority Lenders of the respective Tranche of Term Loans.
(b)If, in connection with any proposed change, waiver, discharge or termination of or to any of the provisions of this Agreement as contemplated by clauses (i) through (v), inclusive, of the first proviso to Section 13.12(a), the consent of the Required Lenders is obtained but the consent of one or more of such other Lenders whose consent is required is not obtained, then the Borrower shall have the right, so long as all non-consenting Lenders whose individual consent is required are treated as described in either clause (A) or (B) below and/or in connection with a Defaulting Lender, to either (A) replace each such non-consenting Lender or Lenders (or, at the option of the Borrower, if the respective Lender’s consent is required with respect to less than all Tranches of Loans, to replace only the Loans of the respective non-consenting Lender which gave rise to the need to obtain such Lender’s individual consent) with one or more Replacement Lenders pursuant to Section 2.13 so long as at the time of such replacement, each such Replacement Lender consents to the proposed change, waiver, discharge or termination or (B) repay each Tranche of outstanding Loans of such Lender that gave rise to the need to obtain such Lender’s consent in accordance with Section 5.01(b), provided that, unless the Loans which are repaid pursuant to preceding clause (B) are immediately replaced in full at such time through the addition of new Lenders and/or outstanding Loans of existing Lenders (who in each case must specifically consent thereto), then in the case of any action pursuant to preceding clause (B), the Required Lenders (determined after giving effect to the proposed action) shall specifically consent thereto, provided further, that the Borrower shall not have the right to replace a Lender or repay its Loans solely as a result of the exercise of such Lender’s rights (and the withholding of any required consent by such Lender) pursuant to the second proviso to Section 13.12(a).

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(c)Notwithstanding the foregoing, (x) any provision of this Agreement may be amended by an agreement in writing entered into by the Borrower, the Required Lenders and the Administrative Agent if at the time such amendment becomes effective, each Lender not consenting thereto receives payment (including pursuant to an assignment to a replacement Lender in accordance with Section 13.04) in full of this principal of and interest accrued on each Loan made by it and all other amounts owing to it or accrued for its account under this Agreement and (y) this Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, the Administrative Agent and the Borrower (i) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Credit Documents with the Term Loans and the accrued interest and fees in respect thereof and (ii) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders.
(d)In addition, notwithstanding the foregoing, this Agreement may be amended with the written consent of the Administrative Agent, the Borrower and the Lenders providing the relevant Replacement Term Loans to permit the refinancing of all outstanding Term Loans (the “Refinanced Term Loans”) with a replacement “B” term loan tranche denominated in Dollars (the “Replacement Term Loans”) hereunder; provided that (a) the aggregate principal amount of such Replacement Term Loans shall not exceed the aggregate principal amount of such Refinanced Term Loans, (b) the Applicable Margin for such Replacement Term Loans shall not be higher than the Applicable Margin for such Refinanced Term Loans, (c) the Weighted Average Life to Maturity of such Replacement Term Loans shall not be shorter than the Weighted Average Life to Maturity of such Refinanced Term Loans at the time of such refinancing (except to the extent of nominal amortization for periods where amortization has been eliminated as a result of prepayment of the applicable Term Loans), and (d) all other terms applicable to such Replacement Term Loans shall be substantially identical to, or less favorable to the Lenders providing such Replacement Term Loans than, those applicable to such Refinanced Term Loans, except to the extent necessary to provide for covenants and other terms applicable to any period after the latest final maturity of the Term Loans in effect immediately prior to such refinancing.
(e)Notwithstanding anything to the contrary contained in this Section 13.12, (x) the First Lien Intercreditor Agreement, the ABL Security Agreement, the Security Documents (including any Additional Security Documents) and related documents executed by Subsidiaries in connection with this Agreement may be in a form reasonably determined by the Administrative Agent and may be amended, supplemented and waived with the consent of the Administrative Agent and the Borrower without the need to obtain the consent of any other Person if such amendment, supplement or waiver is delivered in order (i) to comply with local Law or advice of local counsel, (ii) to cure ambiguities, omissions, mistakes or defects or (iii) to cause such Security Document or other document to be consistent with this Agreement and the other Credit Documents and (y) if following the Effective Date, the Administrative Agent and any Credit Party shall have jointly identified an ambiguity, inconsistency, obvious error or any error or omission of a technical or immaterial nature, in each case, in any provision of the Credit Documents (other than the Security Documents), then the Administrative Agent and the Credit Parties shall be permitted to amend such provision and such amendment shall become effective without any further action or consent of any other party to any Credit Documents if the same is not objected to in writing by the Required Lenders within five (5) Business Days following receipt of notice thereof.
(f)Notwithstanding anything to the contrary contained in clauses (a) or (e) above of this Section 13.12, (i) the Borrower, the Administrative Agent and each Additional Lender may, in accordance with the provisions of Section 2.14, enter into an Incremental Amendment, provided that after the execution and delivery by the Borrower, the Administrative Agent and each such Additional Lender of such Incremental Amendment, such Incremental Amendment may thereafter only be modified in accordance with the requirements of clause (a) above of this Section 13.12.

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13.13.     Survival.  All indemnities set forth herein including, without limitation, in Sections 2.10, 2.11, 5.04, 12.06 and 13.01 shall survive the execution, delivery and termination of this Agreement and the Notes and the making and repayment of the Obligations.
13.14.     Domicile of Loans.  Each Lender may transfer and carry its Loans at, to or for the account of any office, Subsidiary or Affiliate of such Lender.  Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 2.10, 2.11 or 5.04 with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office for any Loans affected by such event with the object of avoiding the consequences of such event; provided, that such designation is made on terms that, in the sole judgment of such Lender, cause such Lender and its lending offices to suffer no economic, legal or regulatory disadvantage, and provided, further, that nothing in this Section shall affect or postpone any of the obligations of the Borrower or the rights of any Lender pursuant to Section 2.10, 2.11 or 5.04.
13.15.     Register.  The Borrower hereby designates the Administrative Agent to serve as its non-fiduciary agent, solely for purposes of this Section 13.15, to maintain a register (the “Register”) on which it will record the names and addresses of the Lenders, the Commitments of, and principal amount (and stated interest) of the Loans made by each of the Lenders and each repayment in respect of the principal amount of the Loans of each Lender.  Failure to make any such recordation, or any error in such recordation, shall not affect the Borrower’s obligations in respect of such Loans.  With respect to any Lender, the transfer of the rights to the principal of, and interest on, any Loan shall not be effective until such transfer is recorded on the Register maintained by the Administrative Agent with respect to ownership of such Loans and prior to such recordation all amounts owing to the transferor with respect to such Loans shall remain owing to the transferor.  The registration of assignment or transfer of all or part of any Loans shall be recorded by the Administrative Agent on the Register upon and only upon the acceptance by the Administrative Agent of a properly executed and delivered Assignment and Assumption Agreement pursuant to Section 13.04(b).  Upon such acceptance and recordation, the assignee specified therein shall be treated as a Lender for all purposes of this Agreement.  The Administrative Agent shall allow the Borrower to inspect the Register at any time upon reasonable prior notice to the extent such inspection is reasonably determined by the Borrower to be necessary to establish the relevant Loans or other obligations are in registered form under Section 5f.103-1(c) of the U.S. Treasury Regulations.  Coincident with the delivery of such an Assignment and Assumption Agreement to the Administrative Agent for acceptance and registration of assignment or transfer of all or part of a Loan, or as soon thereafter as practicable, the assigning or transferor Lender shall surrender the Note (if any) evidencing such Loan, and thereupon one or more new Notes in the same aggregate principal amount shall be issued to the assigning or transferor Lender and/or the new Lender at the request of any such Lender.  Without duplication with Section 13.01, the Borrower agrees to indemnify the Administrative Agent from and against any and all losses, claims, damages and liabilities of what-so-ever nature which may be imposed on, asserted against or incurred by the Administrative Agent in performing its duties under this Section 13.15.
13.16.     Confidentiality.  (a) Subject to the provisions of clause (b) of this Section 13.16, each Lender will use its reasonable efforts not to disclose without the prior consent of the Borrower (other than to its employees, auditors, advisors or counsel on a need-to-know basis or to another Lender if such Lender or such Lender’s holding or parent company in its sole discretion determines that any such party should have access to such information in connection with the Credit Documents, provided such Persons shall be subject to the provisions of this Section 13.16 to the same extent as such Lender) any information with respect to the Borrower or any of its Subsidiaries that is now or in the future furnished pursuant to this Agreement or any other Credit Document, provided that any Lender may disclose any such information (i) as has become generally available to the public other than by virtue of a breach of this Section 13.16(a) by the respective Lender, (ii) as may be required or appropriate in any report, statement or testimony submitted to any municipal, state or Federal regulatory body or self-regulatory body having 

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or claiming to have jurisdiction over such Lender or to the Federal Reserve Board or the Federal Deposit Insurance Corporation or similar organizations (whether in the United States or elsewhere) or their successors or in connection with pledges or assignments in favor of any Federal Reserve Bank or central bank permitted under Section 13.04(d), (iii) as may be required or appropriate in respect to any summons or subpoena or in connection with any litigation, (iv) in order to comply with any law, order, regulation or ruling applicable to such Lender, (v) to the Administrative Agent or the Collateral Agent, (vi) to any direct or indirect contractual counterparty in any swap, hedge or similar agreement (or to any such contractual counterparty’s professional advisor), so long as such contractual counterparty (or such professional advisor) agrees to be bound by the provisions of this Section 13.16 and (vii) to any prospective or actual transferee or participant in connection with any contemplated transfer or participation of any of the Notes or any interest therein by such Lender, provided that such prospective transferee agrees to be bound by the confidentiality provisions contained in this Section 13.16.
(b)The Borrower hereby acknowledges and agrees that each Lender may share with any of its affiliates, and such affiliates may share with such Lender, any information related to the Borrower or any of its Subsidiaries (including, without limitation, any non-public customer information regarding the creditworthiness of the Borrower and its Subsidiaries), provided such Persons shall be subject to the provisions of this Section 13.16 to the same extent as such Lender.
13.17.     Patriot Act.  Each Lender subject to the USA PATRIOT Improvement and Reauthorization Act, Pub. L. 109-177 (signed into law March 9, 2009) (as amended from time to time, the “Patriot Act”) hereby notifies the Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Borrower and the other Credit Parties and other information that will allow such Lender to identify the Borrower and the other Credit Parties in accordance with the Patriot Act.
13.18.     Interest Rate Limitation.  Notwithstanding anything to the contrary contained in any Credit Document, the interest paid or agreed to be paid under the Credit Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable law (the “Maximum Rate”).  If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.
13.19.     Judgment Currency.  (a) The Credit Parties’ obligations hereunder and under the other Credit Documents to make payments in the respective foreign currency (the “Obligation Currency”) shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any currency other than the Obligation Currency, except to the extent that such tender or recovery results in the effective receipt by the Administrative Agent, the Collateral Agent, the respective Lender of the full amount of the Obligation Currency expressed to be payable to the Administrative Agent, the Collateral Agent or such Lender under this Agreement or the other Credit Documents.  If for the purpose of obtaining or enforcing judgment against any Credit Party in any court or in any jurisdiction, it becomes necessary to convert into or from any currency other than the Obligation Currency (such other currency being hereinafter referred to as the “Judgment Currency”) an amount due in the Obligation Currency, the conversion shall be made, at the rate of exchange (as quoted by the Administrative Agent or if the Administrative Agent does not quote a rate of exchange on such currency, by a known dealer in such currency designated by the Administrative Agent) determined, in each case, as of the day on which 

-113-

the judgment is given (such day being hereinafter referred to as the “Judgment Currency Conversion Date”).
(b)If there is a change in the rate of exchange prevailing between the Judgment Currency Conversion Date and the date of actual payment of the amount due, the Borrower covenants and agrees to pay, or cause to be paid, such additional amounts, if any (but in any event not a lesser amount), as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which would have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial award at the rate or exchange prevailing on the Judgment Currency Conversion Date.
For purposes of determining any rate of exchange for this Section, such amounts shall include any premium and costs payable in connection with the purchase of the Obligation Currency.
13.20.     No Fiduciary Duty.  Each of the Administrative Agent, the Lenders and their Affiliates (collectively, solely for purposes of this Section 13.20, the “Lender Parties”), may have economic interests that conflict with those of the Borrower, its stockholders and/or its Affiliates.  The Borrower agrees that nothing in this Agreement or other Credit Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender Party, on the one hand, and the Borrower, its stockholders or its Affiliates, on the other.  The Borrower acknowledges and agrees that (i) the transactions contemplated by this Agreement and the other Credit Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lender Parties, on the one hand, and the Borrower, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lender Parties have assumed an advisory or fiduciary responsibility in favor of the Borrower, its stockholders or its Affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender Parties have advised, are currently advising or will advise the Borrower, its stockholders or its Affiliates on other matters) or any other obligation to the Borrower except the obligations expressly set forth in this Agreement and other Credit Documents and (y) each Lender Party is acting solely as principal and not as the agent or fiduciary of the Borrower, its management, stockholders, creditors or any other Person.  The Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  The Borrower agrees that it will not claim that any Lender Party has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Borrower, in connection with such transaction or the process leading thereto.
13.21.     Intercreditor Agreements.  Pursuant to the express terms of each Intercreditor Agreement, in the event of any conflict or inconsistency between the terms of the relevant Intercreditor Agreement and any of the other Credit Documents, the provisions of the relevant Intercreditor Agreement shall govern and control.  Notwithstanding anything herein or in any other Credit Document to the contrary, the lien and security interest granted to the Administrative Agent pursuant to this Agreement or any other Credit Document and the exercise of any right or remedy by the Administrative Agent hereunder or under any other Credit Document are subject to the provisions of the Intercreditor Agreements.
*     *     * 

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The parties hereto have caused their duly authorized officers to execute and deliver this Credit Agreement as of the date first above written.
Address:
	
		
	9540 South Maroon Circle, Suite 200
	WESTMORELAND COAL COMPANY

	Englewood, CO  80112
	 

	Attn:  Chief Financial Officer
	 

	 
	By: /s/ Jennifer S. Grafton

	 
	      Name: Jennifer S. Grafton
      Title: Senior Vice President, Chief
                 Administrative Officer and Secretary

[Signature Page to Westmoreland Term Loan Credit Agreement]

	
		
	Address for Notices:
	BANK OF MONTREAL 
as Administrative Agent and a Lender

	Bank of Montreal
	 

	115 S. LaSalle Street, 25 West
	 

	Chicago, IL 60603
T: 312.461.2184
Attn: Thomas R. Hasenauer
	By: /s/ Tom Dale
      Name: Tom Dale
      Title: Managing Director

[Signature Page to Westmoreland Term Loan Credit Agreement]exh4-4_121614

Exhibit 4.4

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
dated as of December 16, 2014
among
THE PRIVATEBANK AND TRUST COMPANY,
as Administrative Agent and Sole Lead Arranger,
and
WESTMORELAND COAL COMPANY,
WESTMORELAND ENERGY LLC,
WESTMORELAND - NORTH CAROLINA POWER, L.L.C.,
WEI-ROANOKE VALLEY, INC.,
WESTMORELAND - ROANOKE VALLEY, L.P.,
WESTMORELAND PARTNERS,
WESTMORELAND RESOURCES, INC.,
WESTMORELAND KEMMERER, INC.,
WESTMORELAND COAL SALES COMPANY, INC.,
WRI PARTNERS, INC.,
WCC LAND HOLDING COMPANY, INC., 
WESTMORELAND CANADA LLC,
WESTMORELAND ENERGY SERVICES, INC.,
WESTMORELAND MINING LLC,
WESTERN ENERGY COMPANY,
TEXAS WESTMORELAND COAL CO., 
WESTMORELAND SAVAGE CORPORATION, 
DAKOTA WESTMORELAND CORPORATION,
WESTMORELAND CANADIAN INVESTMENTS, L.P.,
WESTMORELAND CANADA HOLDINGS INC.,
WESTMORELAND PRAIRIE RESOURCES INC.,
PRAIRIE MINES & ROYALTY ULC,
COAL VALLEY RESOURCES INC.,
PRAIRIE COAL LTD.,
WILLOWVAN MINING LTD.,
POPLAR RIVER COAL MINING PARTNERSHIP, and
WCC HOLDING B.V.,

as the Borrowers

TABLE OF CONTENTS

	
				
	 
	 
	 
	Page

	 
	 
	 
	 

	SECTION 1
	 
	DEFINITIONS
	3

	1.1
	 
	Definitions
	3

	1.2
	 
	Currency Translations
	40

	1.3
	 
	Quebec Law Matters
	40

	 
	 
	 
	 

	SECTION 2
	 
	LOANS
	41

	2.1
	 
	Revolving Loans
	41

	2.2
	 
	Swing Line Facilities
	43

	2.3
	 
	Loan Procedures
	45

	2.4
	 
	Repayments
	46

	2.5
	 
	Notes
	47

	2.6
	 
	Recordkeeping
	48

	2.7
	 
	Defaulting Lenders
	48

	2.8
	 
	Settlements
	50

	2.9
	 
	Commitments Several
	51

	2.10
	 
	Incremental Facilities
	51

	 
	 
	 
	 

	SECTION 3
	 
	LETTERS OF CREDIT
	53

	3.1
	 
	General Terms
	53

	3.2
	 
	Letter of Credit Procedures
	53

	3.3
	 
	Expiration Dates of Letters of Credit
	54

	3.4
	 
	Participations in Letters of Credit
	54

	3.5
	 
	Cash Collateralization
	55

	3.6
	 
	Currency Settlement
	56

	 
	 
	 
	 

	SECTION 4
	 
	INTEREST, FEES AND CHARGES
	56

	4.1
	 
	Interest Rate
	56

	4.2
	 
	Increased Costs; Special Provisions For LIBOR Loans
	57

	4.3
	 
	Fees and Charges
	60

	4.4
	 
	Taxes
	61

	4.5
	 
	Treatment of Certain Refunds
	63

	4.6
	 
	Maximum Interest
	63

	4.7
	 
	Interest Act (Canada)
	63

	 
	 
	 
	 

	SECTION 5
	 
	COLLATERAL
	64

	5.1
	 
	Grant of Security Interest to Administrative Agent
	64

	5.2
	 
	Other Security
	66

	5.3
	 
	Possessory Collateral
	67

	5.4
	 
	Electronic Chattel Paper
	67

 i

TABLE OF CONTENTS
(continued)

	
						
	 
	 
	 
	Page

	 
	 
	 
	 

	SECTION 6
	 
	PRESERVATION OF COLLATERAL AND PERFECTION OF SECURITY INTERESTS THEREIN
	67
	

	 
	 
	 
	 

	SECTION 7
	 
	POSSESSION OF COLLATERAL AND RELATED MATTERS
	68
	

	 
	 
	 
	 

	SECTION 8
	 
	COLLECTIONS
	68
	

	8.1
	

	 
	Blocked Account
	68
	

	8.2
	

	 
	Administrative Agent’s Rights
	70
	

	8.3
	

	 
	Application of Proceeds
	70
	

	8.4
	

	 
	Account Statements
	71
	

	 
	 
	 
	 

	SECTION 9
	 
	COLLATERAL, AVAILABILITY AND FINANCIAL REPORTS AND SCHEDULES
	71
	

	9.1
	

	 
	Weekly Reports
	71
	

	9.2
	

	 
	Monthly Reports
	71
	

	9.3
	

	 
	Financial Statements
	71
	

	9.4
	

	 
	Annual Projections
	72
	

	9.5
	

	 
	Explanation of Budgets and Projections
	72
	

	9.6
	

	 
	Public Reporting
	72
	

	9.7
	

	 
	Other Information
	72
	

	 
	 
	 
	 

	SECTION 10
	 
	TERMINATION
	72
	

	 
	 
	 
	 

	SECTION 11
	 
	REPRESENTATIONS AND WARRANTIES
	73
	

	11.1
	

	 
	Financial Statements and Other Information
	73
	

	11.2
	

	 
	Locations
	73
	

	11.3
	

	 
	Loans by the Borrowers
	74
	

	11.4
	

	 
	Accounts and Inventory
	74
	

	11.5
	

	 
	Liens
	74
	

	11.6
	

	 
	Organization, Authority and No Conflict
	74
	

	11.7
	

	 
	Litigation
	75
	

	11.8
	

	 
	Compliance with Laws and Maintenance of Permits
	75
	

	11.9
	

	 
	Affiliate Transactions
	76
	

	11.10
	

	 
	Names and Trade Names
	76
	

	11.11
	

	 
	Equipment
	76
	

	11.12
	

	 
	Enforceability
	76
	

	11.13
	

	 
	Solvency
	76
	

	11.14
	

	 
	Indebtedness
	76
	

	11.15
	

	 
	Margin Security and Use of Proceeds
	76
	

	11.16
	

	 
	Parent, Subsidiaries and Affiliates
	76
	

	11.17
	

	 
	No Defaults
	77
	

 ii

TABLE OF CONTENTS
(continued)

	
						
	 
	 
	 
	Page

	 
	 
	 
	 

	11.18
	

	 
	Employee Matters
	77
	

	11.19
	

	 
	Intellectual Property
	77
	

	11.20
	

	 
	Environmental Matters
	77
	

	11.21
	

	 
	ERISA Matters
	77
	

	11.22
	

	 
	Investment Company Act
	78
	

	11.23
	

	 
	Anti-Terrorism Laws
	78
	

	11.24
	

	 
	Restricted Subsidiaries
	78
	

	11.25
	

	 
	Related Transactions
	78
	

	11.26
	

	 
	Investigations, Audits, Etc
	78
	

	11.27
	

	 
	Capitalization; Subsidiaries
	78
	

	11.28
	

	 
	Insurance
	79
	

	 
	 
	 
	 

	SECTION 12
	 
	AFFIRMATIVE COVENANTS
	79
	

	12.1
	

	 
	Maintenance of Records
	79
	

	12.2
	

	 
	Notices
	79
	

	12.3
	

	 
	Compliance with Laws and Maintenance of Permits
	81
	

	12.4
	

	 
	Inspection and Audits
	81
	

	12.5
	

	 
	Insurance
	82
	

	12.6
	

	 
	Collateral
	83
	

	12.7
	

	 
	Use of Proceeds
	84
	

	12.8
	

	 
	Taxes
	84
	

	12.9
	

	 
	Intellectual Property
	84
	

	12.10
	

	 
	Checking Accounts and Cash Management Services
	84
	

	12.11
	

	 
	USA Patriot Act, Bank Secrecy Act and Office of Foreign Asset Control
	85
	

	12.12
	

	 
	Limitation of Activities
	85
	

	12.13
	

	 
	Further Assurances
	85
	

	 
	 
	 
	 

	SECTION 13
	 
	NEGATIVE COVENANTS
	86
	

	13.1
	

	 
	Guaranties
	86
	

	13.2
	

	 
	Indebtedness
	86
	

	13.3
	

	 
	Liens
	87
	

	13.4
	

	 
	Mergers, Sales, Acquisitions, Subsidiaries and Other Transactions Outside the Ordinary Course of Business
	87
	

	13.5
	

	 
	Dividends and Distributions
	89
	

	13.6
	

	 
	Investments/Loans
	89
	

	13.7
	

	 
	Fundamental Changes, Line of Business
	89
	

	13.8
	

	 
	Reserved
	89
	

	13.9
	

	 
	Affiliate Transactions
	89
	

	13.10
	

	 
	Settling of Accounts
	89
	

	13.11
	

	 
	Restriction of Amendments to Certain Documents
	90
	

 iii

TABLE OF CONTENTS
(continued)

	
						
	 
	 
	 
	Page

	 
	 
	 
	 

	13.12
	

	 
	Payments on Secured Term Debt
	90
	

	13.13
	

	 
	Contingent Obligations
	90
	

	13.14
	

	 
	Restricted Subsidiaries
	90
	

	 
	 
	 
	 

	SECTION 14
	 
	FINANCIAL COVENANTS
	91
	

	14.1
	

	 
	Fixed Charge Coverage
	91
	

	14.2
	

	 
	Accounting Matters
	91
	

	 
	 
	 
	 

	SECTION 15
	 
	DEFAULT
	91
	

	15.1
	

	 
	Payment
	91
	

	15.2
	

	 
	Breach of this Agreement and the other Loan Documents
	91
	

	15.3
	

	 
	Breach of Representations and Warranties
	92
	

	15.4
	

	 
	Loss of Collateral
	92
	

	15.5
	

	 
	Levy, Seizure or Attachment
	92
	

	15.6
	

	 
	Bankruptcy or Similar Proceedings
	92
	

	15.7
	

	 
	Appointment of Receiver
	92
	

	15.8
	

	 
	Judgment
	92
	

	15.9
	

	 
	Change of Control
	93
	

	15.10
	

	 
	Material Adverse Change
	93
	

	15.11
	

	 
	Secured Term Debt
	93
	

	15.12
	

	 
	Other Indebtedness
	93
	

	15.13
	

	 
	ERISA
	94
	

	15.14
	

	 
	Invalidity of Subordination Provisions, etc
	94
	

	 
	 
	 
	 

	SECTION 16
	 
	REMEDIES UPON AN EVENT OF DEFAULT
	94
	

	16.1
	

	 
	Acceleration
	94
	

	16.2
	

	 
	Other Remedies
	94
	

	16.3
	

	 
	Credit Bidding
	97
	

	 
	 
	 
	 

	SECTION 17
	 
	CONDITIONS PRECEDENT
	98
	

	17.1
	

	 
	Conditions to Initial Loans
	98
	

	17.2
	

	 
	Conditions to All Loans
	99
	

	 
	 
	 
	 

	SECTION 18
	 
	THE AGENTS
	99
	

	18.1
	

	 
	Appointment and Authorization
	99
	

	18.2
	

	 
	L/C Issuers
	100
	

	18.3
	

	 
	Delegation of Duties
	100
	

	18.4
	

	 
	Exculpation of Administrative Agent
	100
	

	18.5
	

	 
	Reliance by Administrative Agent
	101
	

	18.6
	

	 
	Notice of Default
	101
	

	18.7
	

	 
	Credit Decision
	101
	

 iv

TABLE OF CONTENTS
(continued)

	
						
	 
	 
	 
	Page

	 
	 
	 
	 

	18.8
	

	 
	Indemnification
	102
	

	18.9
	

	 
	Administrative Agent in Individual Capacity
	102
	

	18.10
	

	 
	Successor Administrative Agent
	103
	

	18.11
	

	 
	Collateral Matters
	103
	

	18.12
	

	 
	Restriction on Actions by Lenders
	104
	

	18.13
	

	 
	Administrative Agent May File Proofs of Claim
	104
	

	18.14
	

	 
	Other Agents; Arrangers and Managers
	105
	

	18.15
	

	 
	Quebec Security Matters
	105
	

	 
	 
	 
	 

	SECTION 19
	 
	MISCELLANEOUS
	106
	

	19.1
	

	 
	Assignments; Participations
	106
	

	19.2
	

	 
	Register
	107
	

	19.3
	

	 
	Customer Identification - USA Patriot Act Notice
	108
	

	19.4
	

	 
	Indemnification by Borrowers
	108
	

	19.5
	

	 
	Notice
	109
	

	 
	 
	 
	 

	SECTION 20
	 
	GENERAL
	110
	

	20.1
	

	 
	Waiver; Amendments
	110
	

	20.2
	

	 
	Headings of Subdivisions
	111
	

	20.3
	

	 
	Power of Attorney
	111
	

	20.4
	

	 
	Confidentiality
	111
	

	20.5
	

	 
	Counterparts/Delivery
	112
	

	20.6
	

	 
	Electronic Submissions
	112
	

	20.7
	

	 
	Waiver of Jury Trial: Other Waivers
	112
	

	20.8
	

	 
	Choice of Governing Laws; Construction; Forum Selection
	113
	

	20.9
	

	 
	Revival and Reinstatement of Obligations
	114
	

	20.10
	

	 
	Reimbursement Among the Borrowers
	114
	

	20.11
	

	 
	Guaranty
	114
	

	20.12
	

	 
	Joint and Several Liability
	115
	

	20.13
	

	 
	Representatives
	115
	

	20.14
	

	 
	Amendment and Restatement
	116
	

	 
	 
	 
	 

	SECTION 21
	 
	NONLIABILITY OF administrative agent and lenders
	116
	

ANNEX I - COMMITMENTS 
EXHIBIT A - COMPLIANCE CERTIFICATE
EXHIBIT B - NOTICE OF BORROWING
EXHIBIT C - NOTICE OF CONVERSION/CONTINUATION
EXHIBIT D - COMMERCIAL TORT CLAIMS

 v

TABLE OF CONTENTS
(continued)

EXHIBIT E - ASSIGNMENT AGREEMENT
SCHEDULE 1 - PERMITTED LIENS
SCHEDULE 11.2 - BUSINESS AND COLLATERAL LOCATIONS
SCHEDULE 11.7 - LITIGATION
SCHEDULE 11.9 - AFFILIATE TRANSACTIONS
SCHEDULE 11.10 - NAMES & TRADE NAMES
SCHEDULE 11.14 - INDEBTEDNESS
SCHEDULE 11.16 - PARENT, SUBSIDIARIES AND AFFILIATES
SCHEDULE 11.18 - EMPLOYEE MATTERS 
SCHEDULE 11.20 - ENVIRONMENTAL MATTERS
SCHEDULE 11.25 - RELATED TRANSACTION DOCUMENTS
SCHEDULE 11.26 - INVESTIGATIONS, AUDITS, ETC.
SCHEDULE 11.27 - CAPITALIZATION; SUBSIDIARIES
SCHEDULE 11.28 - INSURANCE 
SCHEDULE 13.4 - PERMITTED SALES AND ACQUISITIONS
SCHEDULE 17.1(a) - CLOSING DOCUMENT CHECKLIST

 vi

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
THIS SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (as amended, modified or supplemented from time to time, this “Agreement”) made this 16th day of December , 2014 by and among the financial institutions that are or may from time to time become parties hereto (together with their respective assigns, the “Lenders”), THE PRIVATEBANK AND TRUST COMPANY, as Administrative Agent and Sole Lead Arranger (in such capacity, “Administrative Agent” and in its individual capacity, “PrivateBank”), 120 South LaSalle Street, Suite 200, Chicago, Illinois 60603, as administrative agent and sole lead arranger, and each of WESTMORELAND COAL COMPANY, a Delaware corporation (“Westmoreland Parent”), WESTMORELAND ENERGY LLC, a Delaware limited liability company (“Westmoreland Energy”), WESTMORELAND - NORTH CAROLINA POWER, L.L.C., a Virginia limited liability company (“Westmoreland NC”), WEI-ROANOKE VALLEY, INC., a Delaware corporation (“WEI”), WESTMORELAND - ROANOKE VALLEY, L.P., a Delaware limited partnership (“Westmoreland Roanoke”), WESTMORELAND PARTNERS, a Virginia general partnership (“Westmoreland Partners”), WESTMORELAND RESOURCES, INC., a Delaware corporation (“Westmoreland Resources”), WESTMORELAND KEMMERER, INC., a Delaware corporation (“Kemmerer”), WESTMORELAND COAL SALES COMPANY, INC., a Delaware corporation (“Coal Sales”), WRI PARTNERS, INC., a Delaware corporation (“WRI”), WCC LAND HOLDING COMPANY, INC., a Delaware corporation (“WCC”), WESTMORELAND CANADA LLC, a Delaware limited liability company (“WC LLC”), WESTMORELAND ENERGY SERVICES, INC., a Delaware corporation (“WES”), WESTMORELAND MINING LLC, a Delaware limited liability company (“WML”), WESTERN ENERGY COMPANY, a Montana corporation (“WECO”), TEXAS WESTMORELAND COAL CO., a Montana corporation (“TWCC”), WESTMORELAND SAVAGE CORPORATION, a Delaware corporation (“Savage”), and DAKOTA WESTMORELAND CORPORATION, a Delaware corporation (“Dakota”; together with Westmoreland Parent, Westmoreland Energy, Westmoreland NC, WEI, Westmoreland Roanoke, Westmoreland Partners, Westmoreland Resources, Kemmerer, Coal Sales, WRI, WCC, WC LLC, WES, WML, WECO, TWCC, and Savage, individually a “US Borrower” and collectively, the “US Borrowers”); WESTMORELAND CANADIAN INVESTMENTS, L.P., a limited partnership organized and existing under the laws of the province of Quebec (“WC Investments”), WESTMORELAND CANADA HOLDINGS, INC., a corporation organized and existing under the laws of the Province of Alberta (“Westmoreland Canada”), WESTMORELAND PRAIRIE RESOURCES INC., a corporation organized and existing under the laws of the Province of Alberta (“WPR”), PRAIRIE MINES & ROYALTY ULC, an unlimited liability company organized under the laws of the Province of Alberta (“PMRL”), COAL VALLEY RESOURCES INC., a corporation organized and existing under the laws of the Province of Alberta (“CVRI”), PRAIRIE COAL LTD., a corporation organized and existing under the laws of the Province of Saskatchewan (“PCL”), WILLOWVAN MINING LTD., a corporation organized and existing under the laws of the Province of Saskatchewan (“Willowvan”), and POPLAR RIVER COAL MINING PARTNERSHIP, a partnership organized and existing under the laws of the Province of Saskatchewan (“PRC”; together with WC Investments, Westmoreland Canada, WPR, PMRL, CVRI, PCL and Willowvan, individually a “Canadian Borrower” and collectively the “Canadian Borrowers”), and WCC HOLDING B.V., a B.V. organized and existing under the 

laws of the Netherlands (“WCC BV”; together with the US Borrowers and the Canadian Borrowers, collectively, the “Borrowers”). 
W I T N E S S E T H:
WHEREAS, the Borrowers, Administrative Agent and the Lenders are parties to a certain Amended and Restated Loan and Security Agreement, dated April 28, 2014, as amended (collectively, the “Original Agreement”), and various other loan agreements executed in connection therewith;
WHEREAS, Borrowers have requested that PrivateBank amend the terms and conditions of the Original Agreement in several respects and PrivateBank, in its capacity as Administrative Agent hereunder, and the Lenders party hereto are willing to do so subject to the terms and conditions set forth in this Agreement;
WHEREAS, it is the intention of the parties to this Agreement that upon execution of this Agreement, the Original Agreement (and, except as otherwise set forth in the following proviso, all obligations and rights of any party thereunder), shall be amended and restated in its entirety by this Agreement; provided, however, the obligations to repay the loans and advances arising under the Original Agreement shall continue in full force and effect and the liens and security interests securing payment thereof shall be continuing but shall now be governed by the terms of this Agreement and the other Loan Documents;
WHEREAS, Borrowers may, from time to time, continue to request Loans from Administrative Agent and Lenders, and the parties wish to provide for the terms and conditions upon which such Loans or other financial accommodations, if made by Administrative Agent and Lenders, shall be made;
WHEREAS, as a result of, among other things, the common Affiliate ownership thereof and shared overhead and administrative expenses and sales synergies achieved by Borrowers, Borrowers acknowledge that each Borrower will derive advantage from each and every financial accommodation made by Administrative Agent and Lenders to any Borrower, and that Lenders would be unwilling to extend the credit hereunder without each and every Borrower agreeing to this Agreement; 
WHEREAS, following the execution and delivery of this Agreement (i) Westmoreland Parent is acquiring (x) 100% of the membership interests of Oxford Resources GP, LLC, a Delaware limited partnership (“Oxford GP”), which is the general partner of Oxford Resource Partners, LP, a Delaware limited partnership (“Oxford”), and (y) 76.4% of the outstanding limited partnership interests of Oxford (collectively, the “Oxford Acquisition”), for a closing date purchase price of $30,000,000 pursuant to that certain Purchase Agreement dated as of October 16, 2014 among Westmoreland Parent, AIM Oxford Holdings, LLC, a Delaware limited liability company, C&T Coal, Inc., an Ohio corporation and certain individuals party thereto (the “Oxford Purchase Agreement”), in exchange for the contribution of certain coal rights on certain lands being indirectly transferred from Kemmerer to Oxford in accordance with the terms of that certain Contribution Agreement dated as of October 16, 2014 between Westmoreland 

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Parent and Oxford relating to the Initial Oxford Dropdown (the “Oxford Contribution Agreement”); and
WHEREAS, in order to finance a portion of the purchase price of the Oxford Acquisition and refinance its existing 10.75% Secured Notes, Westmoreland Parent intends to issue (i) Secured Notes in the principal amount of $350,000,000 (the “Secured Notes”) in accordance with the terms of that certain Indenture of even date herewith among U.S. Bank National Association, as trustee, and U.S. Bank National Association, as the notes collateral agent thereunder (the “Secured Note Indenture”) and (ii) a Secured Term Loan in the principal amount of $350,000,000 (the “Secured Term Loan”) in accordance with the terms of that certain Credit Agreement of even date herewith among Westmoreland Parent, Bank of Montreal, as administrative agent, and the lenders party thereto (the “Term Loan Credit Agreement”). 
NOW, THEREFORE, in consideration of any Loan (including any Loan by renewal or extension) hereafter made to Borrowers by Administrative Agent and/or Lenders, or any Letter of Credit issued for the account of any Borrower, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Borrowers, Administrative Agent and the Lenders, the parties agree to amend and restate the Original Agreement as follows:
SECTION 1
DEFINITIONS
1.1     Definitions.  When used herein the following terms shall have the following meanings: 
Absaloka means Absaloka Coal, LLC, a Delaware limited liability company.
Account shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable.
Account Debtor shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable. 
Administrative Agent shall mean PrivateBank in its capacity as administrative agent for the Lenders hereunder and any successor thereto in such capacity.
Acquisition means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or a substantial portion of the assets of a Person, or of all or a substantial portion of any business or division of a Person, (b) the acquisition of in excess of 50% of the equity securities of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person that is already a Subsidiary).
Affected Loan shall have the meaning set forth in Section 4.2.3.
Affiliate of any Person shall mean (i) any other Person which directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with,

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such Person, (ii) any other Person which beneficially owns or holds ten percent (10%) or more of the voting control or equity interests of such Person, (iii) any other Person of which ten percent (10%) or more of the voting control or equity interest of which is beneficially owned or held by such Person or (iv) any officer or director of such Person.  Unless expressly stated otherwise herein, neither Administrative Agent nor any Lender shall be deemed an Affiliate of any Loan Party.  
Agent Advance shall have the meaning set forth in Section 2.1.2.
Agent Fee Letter shall mean the Fee Letter of even date herewith among Borrowers and Administrative Agent, as amended, modified or restated from time to time.  
Amortization Expense for any period means the amortization expense of such Person for such period, determined on a consolidated basis in accordance with GAAP.
Asset Sales means any sale, issuance, conveyance, transfer, lease, assignment or other disposition by any Borrower to any Person (including by means of a sale and leaseback transaction or a merger or consolidation or similar transaction and including any sale or issuance of the equity interests of any Borrower) (collectively, for purposes of this definition, a “transfer”), in one transaction or a series of related transactions, of any assets of any Borrower; provided, that for purposes of this definition, the term “Asset Sale” shall not include: 
(1)    transfers of cash or Cash Equivalents; 
(2)    transfers of assets that are permitted by, and made in accordance with, Section 13.4;
(3)    transfers and sales of assets constituting Permitted Investments (as defined in the Secured Note Indenture) consummated in accordance with the terms herein and the Secured Notes Indenture, 
(4)    the creation of or realization on any Permitted Lien; 
(5)    any transfer or series of related transfers that, but for this clause, would be Asset Sales, if after giving effect to such transfers, the aggregate Fair Market Value of the assets transferred in such transaction or any such series of related transactions does not exceed $2,500,000; 
(6)    a transfer of assets between or among any of the Borrowers; 
(7)    an issuance or sale of equity interests by a Borrower (a) (other than Westmoreland Parent) to its parent or (b) to another Borrower; 
(8)    a disposition of inventory in the ordinary course of business; 
(9)    a disposition of obsolete or worn out equipment or equipment that is no longer useful in the conduct of the business of a Borrower and that is disposed of in each case in the ordinary course of business; 

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(10)    dispositions of past due accounts and notes receivable arising in the ordinary course of business, but only in connection with the compromise or collection thereof; 
(11)    the licensing or sublicensing of intellectual property or other general intangibles and licenses, leases or subleases of other property in the ordinary course of business and which do not materially interfere with the business of the Borrowers; 
(12)    a surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other claims of any kind; and 
(13)    trades of coal properties of equivalent value in the ordinary course of business. 
Assignee shall have the meaning set forth in Section 19.1.1.
Assignment Agreement shall have the meaning set forth in Section 19.1.1.
Attorney Costs shall mean, with respect to any Person, all reasonable fees and charges of any counsel to such Person, and all court costs and similar legal expenses.
Attributable Indebtedness, when used with respect to any sale and leaseback transaction, means, as at the time of determination, the present value (discounted at a rate equivalent to any Borrower’s then-current weighted average cost of funds for borrowed money as at the time of determination, compounded on a semi-annual basis) of the total obligations of the lessee for rental payments during the remaining term of the lease included in any such sale and leaseback transaction. 
Bank Product Agreements shall mean those certain agreements pursuant to which any Lender or its Affiliates provide any of the Bank Products to any Loan Party including, without limitation, Hedging Agreements.
Bank Product Obligations shall mean all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by the Loan Parties to any Lender or its Affiliates pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all such amounts that a Loan Party is obligated to reimburse to Administrative Agent or any Lender as a result of Administrative Agent or any such Lender purchasing participations or executing indemnities or reimbursement obligations with respect to the Bank Products provided to the Loan Parties pursuant to the Bank Product Agreements.
Bank Products shall mean any service provided to, facility extended to, or transaction entered into with, any Loan Party by any Lender or its Affiliates, including, without limitation, (a) deposit accounts, (b) cash management services, including, without limitation, controlled disbursement, lockbox, electronic funds transfers (including, without limitation, book transfers, fedwire transfers, ACH transfers), online reporting and other services relating to accounts maintained with any Lender or its Affiliates, (c) debit cards and credit cards, including, without 

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limitation, debit and credit cards provided to the Borrowers by Bank of the West, (d) Hedging Agreements with any Lender or its Affiliates or (e) so long as prior written notice thereof is provided to Administrative Agent by any Lender (or its Affiliate) providing such service, facility or transaction that Administrative Agent consents in writing to include as a Bank Product, any other service provided to, facility extended to or transaction entered into with any Loan Party by a Lender or its Affiliates.
Base Rate shall mean at any time the greater of (a) the Federal Funds Rate plus one half of one percent (0.5%) and (b) the Prime Rate.
Base Rate Loan shall mean, collectively, all Canadian Base Rate Loans and all US Base Rate Loans.
BSA shall have the meaning set forth in Section 12.11.
Business Day shall mean any day on which Administrative Agent is open for commercial banking business in Chicago, Illinois and, in the case of a Business Day which relates to (a) a LIBOR Loan, any day on which dealings are carried on in the London Interbank eurodollar market or (b) any Letter of Credit to be denominated in Canadian Dollars, any day which is not a legal holiday in the Province of Ontario, Canada or is a day on which banking institutions in such province are open.
Canadian Bank means Bank of the West or such other bank appointed as the Canadian Bank after the date hereof by Administrative Agent.
Canadian Bankruptcy Law means the Bankruptcy and Insolvency Act (Canada) and the Companies’ Creditors Arrangement Act (Canada).
Canadian Base Rate Loan shall mean any Canadian Loan which bears interest at or by reference to the Base Rate including, for certainty, any Canadian Swing Line Loan.
Canadian Benefit Plan means all employee benefit plans of any nature or kind whatsoever that are not Canadian Pension Plans and are maintained or contributed to by any Loan Party or any Subsidiary thereof having employees in Canada, but excluding the Canadian Pension Plans and any statutory benefit plans which any Loan Party or any Subsidiary thereof having employees in Canada is required to participate in or comply with, including without limitation, the Canada Pension Plan, the Quebec Pension Plan and plans administered pursuant to applicable health, tax, workplace safety insurance and employment insurance legislation.
Canadian Borrowers means individually and collectively as the context may require, Westmoreland Canada, WPR, PMRL, CVRI, PCL, Willowvan and PRC.  
Canadian Dollars or Cdn$ means the lawful currency of Canada.
Canadian Domestic Operating Account means, collectively, (i) account number 2370396 maintained by PMRI, (ii) account number 2370419 maintained by CVRI and (iii) account number 2370427 maintained by Westmoreland Resources at PrivateBank.  

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Canadian EBITDA for any period means, without duplication, the sum of the amounts for such period of:
(1)    Net Income of the Canadian Borrowers, plus 
(2)    in each case only to the extent (and in the same proportion) deducted in determining Net Income of the Canadian Borrowers and with respect to the portion of Net Income of the Canadian Borrowers attributable to any Borrower only if a corresponding amount would be permitted at the date of determination to be distributed to Westmoreland Parent by its Subsidiaries without prior approval (that has not been obtained), pursuant to the terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and governmental regulations applicable to Canadian Borrowers or their equity holders, 
(a)    Income Tax Expense of the Canadian Borrowers (other than income taxes or income tax adjustments (whether positive or negative) attributable to Asset Sales or extraordinary gains or losses and, without duplication, permitted tax distributions, 
(b)    Amortization Expense of the Canadian Borrowers (but only to the extent not included in Interest Expense of the Canadian Borrowers), 
(c)    Net Asset Reclamation Accretion Expense of the Canadian Borrowers, 
(d)    Depreciation and Depletion Expense of the Canadian Borrowers (but only to the extent not included in Interest Expense of the Canadian Borrowers), 
(e)    Interest Expense of the Canadian Borrowers (net of interest income), 
(f)    expenses incurred in connection with the expansion of the charcoal plant of approximately 35,000,000 pounds located in Estevan, Saskatchewan, Canada in an amount not to exceed $22,000,000 in the aggregate solely for the calendar year ending December 31, 2015 and $15,000,000 in the aggregate solely for the calendar year ending December 31, 2016, 
(g)    all other non-cash items reducing Net Income of the Canadian Borrowers (including without limitation non-cash write-offs of goodwill, intangibles and long-lived assets, but excluding any non-cash charge that results in an accrual of a reserve for cash charges in any future period including pension, retiree, medical and reclamation expenses) for such period, and
(h)    an amount equal to the cash actually received by the Canadian Borrowers for such period under (A) the contract in effect on the Closing Date relating to the Genessee mine and (B) any similar arrangement entered into after the Closing Date, in each case which under GAAP is required to be accounted for as a finance lease in accordance with ASC 840-10-15 Leases,
in each case determined in accordance with GAAP, minus 

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(3)    unfinanced Capital Expenditures of the Canadian Borrowers during the applicable period, minus
(4)    the aggregate amount of all non-cash items of the Canadian Borrowers determined in accordance with GAAP, to the extent such items increased Net Income of the Canadian Borrowers (other than the accrual of revenue, recording of receivables or the reversal of reserves in the ordinary course of business) for such period.  Notwithstanding the foregoing, Canadian EBITDA for the quarterly period ending December 31, 2014 shall be calculated as follows:  $20,689,000 plus Canadian EBITDA for the period beginning April 28, 2014 and ending on December 31, 2014.  
Canadian Fixed Charges shall mean for any period, without duplication, scheduled payments of principal during the applicable period with respect to all indebtedness of the Canadian Borrowers for borrowed money, plus scheduled payments of principal during the applicable period with respect to all Capital Lease obligations of the Canadian Borrowers plus scheduled payments of cash interest during the applicable period with respect to all indebtedness of the Canadian Borrowers for borrowed money including Capital Lease obligations.  Notwithstanding the foregoing, interest and required payments of principal for the Canadian Borrowers (collectively, “Principal and Interest Payments for Canadian Borrowers”) for the quarterly period ending December 31, 2014 shall be calculated as $18,075,000 plus Principal and Interest Payments for all Canadian Borrowers for the period beginning on April 28, 2014 and ending on December 31, 2014. 
Canadian Letter of Credit Obligations shall mean, as of any date of determination, the sum of (i) the aggregate undrawn face amount of all Letters of Credit issued on behalf of any Canadian Borrower, and (ii) the aggregate unreimbursed amount of all drawn Letters of Credit issued on behalf of any Canadian Borrower not already converted to Loans hereunder.  Notwithstanding the foregoing, all Letters of Credit issued hereunder on behalf of any Canadian Borrower denominated in Canadian Dollars shall be converted to the US Dollar Equivalent for purposes of determining the aggregate amount of Canadian Letter of Credit Obligations hereunder.
Canadian LIBOR Loans means any LIBOR Loan made to a Canadian Borrower.
Canadian Loan Party shall mean a Canadian Borrower and each other person who is or shall become primarily or secondarily liable for any of the Canadian Obligations.
Canadian Loans means all Loans made to the Canadian Borrowers.
Canadian Obligations shall mean any and all obligations, liabilities and indebtedness of each Canadian Loan Party to Administrative Agent and each Lender or to any Affiliate of a Lender of any and every kind and nature pursuant to any Loan Document, howsoever created, arising or evidenced and howsoever owned, held or acquired, whether now or hereafter existing, whether now due or to become due, whether primary, secondary, direct, indirect, absolute, contingent or otherwise (including, without limitation, obligations of performance and Bank Product Obligations), whether several, joint or joint and several; provided, however, that the Canadian Obligations shall not include Excluded Swap Obligations or any US Obligations.  

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Canadian Operating Account means a deposit account to be established at the Canadian Bank after the date hereof by one or more of the Canadian Borrowers. 
Canadian Pension Plans means each “registered pension plan” as defined under the ITA that is maintained or contributed to by any Loan Party or any of its Subsidiaries for its employees or former employees.
Canadian Priority Claims means the aggregate of any amounts accrued or payable (including interest and penalties) which arise by the operation of any applicable law and rank prior to or pari passu with any Lien held by Administrative Agent, including, without limitation, in respect of wages, salaries, commissions or other remuneration, vacation pay, pension plan contributions and/or obligations, including without limitation, under the Wage Earner Protection Program Act (Canada), amounts required to be withheld from payments to employees or other persons for federal and provincial income taxes, employee Canada Pension Plan contributions and employee employment insurance premiums and additional amounts payable on account of employer Canada Pension Plan contributions and employer employment insurance premiums, federal or provincial goods and services or excise tax, or other sales or consumption taxes, employer health tax, amounts payable under the Workplace Safety and Insurance Act, 1997 (Ontario) or similar legislation in other applicable jurisdiction (all as may be amended or replaced from time to time), arrears of rent, utilities or other amounts payable in respect of the use of any real property, amounts payable for repair, storage, transportation or construction or other services which may give rise to a possessory or registerable Lien.
Canadian Revolving Loan Availability shall mean the sum of the following sublimits: (i) eighty-five percent (85%) of the face amount (less maximum discounts, credits and allowances which may be taken by or granted to Account Debtors in connection therewith in the ordinary course of Borrowers’ business) of the Eligible Canadian Accounts, plus (ii) the lower of (x) twenty-five percent (25%) of the lower of cost or market value of the Eligible Canadian Inventory comprised solely of Eligible Parts Inventory of the Canadian Borrowers and (y) One Million Dollars ($1,000,000), plus (iii) the lower of (x) fifty percent (50%) of the lower of cost or market value of the Canadian Borrowers’ Eligible Inventory comprised solely of raw materials and finished goods Inventory and (y) Four Million Dollars ($4,000,000); minus (iv) such other reserves as Administrative Agent elects, in its sole discretion, determined in good faith, to establish from time to time, including, without limitation, reserves with respect to Bank Products Obligations, Hedging Obligations, Canadian Priority Claims and reclamation claims relating to the mining activities of the Canadian Borrowers.  Notwithstanding the foregoing, the aggregate amount of Canadian Revolving Loan Availability comprised of Eligible Inventory and Eligible Parts Inventory of the Canadian Borrowers set forth in subsections (ii) and (iii) above and raw materials and finished goods Inventory of the Canadian Borrowers shall not exceed Four Million Dollars ($4,000,000) at any time.
Canadian Revolving Loan Commitment of any Lender shall mean the amount set forth next to such Lender’s name on Annex 1, except as such amount may be increased in accordance with Section 2.10 hereof or, during the existence of an Event of Default, be decreased by the Required Lenders in their sole discretion.
Canadian Revolving Loans shall have the meaning specified in Section 2.1.2 hereof.

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Canadian Revolving Note shall have the meaning specified in Section 2.5 hereof.
Canadian Swing Line Availability means the lesser of (a) the Canadian Swing Line Commitment Amount and (b) the amount by which the lesser of (x) Canadian Revolving Loan Availability and (y) the total amount of the Canadian Revolving Loan Commitment that exceeds the sum of the outstanding Canadian Revolving Loans plus Canadian Letter of Credit Obligations.  
Canadian Swing Line Commitment Amount means $2,000,000, as reduced from time to time pursuant to Section 6.1, which commitment constitutes a subfacility of the Canadian Revolving Loan Commitment of the Swing Line Lender.
Canadian Swing Line Loan is defined in Section 2.2.2.
Capital Expenditures shall mean with respect to any period, the aggregate of all unfinanced expenditures (whether paid in cash or accrued as liabilities and including expenditures for Capital Lease obligations) by Borrowers and their Subsidiaries during such period that are required by GAAP, consistently applied, to be included in or reflected by the property, plant and equipment or similar fixed asset accounts (or intangible accounts subject to amortization) on the balance sheet of Borrowers and their Subsidiaries.
Capital Lease of any Person shall mean any lease of any property by such Person as lessee which would, in accordance with GAAP, be required to be accounted for as a capital lease on the balance sheet of such Person.
Cash Collateralize shall mean to deliver cash collateral to the L/C Issuer in the amount equal to 105% of the sum of the face amount of the outstanding Letters of Credit to be held as cash collateral for outstanding Letters of Credit, pursuant to documentation satisfactory to such L/C Issuer in its sole discretion.  Derivatives of such term have corresponding meanings.
Cash Equivalents shall mean (i) obligations issued directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided, that the full faith and credit of the United States of America is pledged in support thereof) or obligations of state or local governments rated not lower than AAA/Aaa by S&P or Moody’s maturing no later than twelve months from the date of acquisition; (ii) time deposits and certificates of deposit or acceptances with a maturity of 360 days or less of any financial institution having combined capital and surplus and undivided profits of not less than $500.0 million whose obligations are rated A- or the equivalent or better by S&P or A3 or better by Moody’s on the date of acquisition; (iii) commercial paper maturing no more than 180 days from the date of creation thereof issued by a corporation that is not the Parent or an Affiliate of the Parent, and is organized under the laws of any state of the United States of America or the District of Columbia and rated at least A-1 by S&P or at least P-1 by Moody’s; (iv) repurchase obligations for underlying securities of the types described in clause (i) above entered into with any financial institution meeting the specifications of clause (ii) above; provided, such obligations may not have a term of more than seven days; (v) demand deposit accounts maintained in the ordinary course of business; (vi) investments in money market or other mutual 

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funds 95% of whose assets comprise securities of the types described in clauses (i) through (v) above
Chattel Paper shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable.
Closing Date means December 16, 2014.  
Code shall mean the Internal Revenue Code of 1986, as amended.
Collateral shall mean all of the property of Borrowers described in Section 5.1 hereof, together with all other real or personal property of any Loan Party or any other Person that is now or hereafter pledged to Administrative Agent to secure, either directly or indirectly, repayment of any of the Obligations which will not include in any case the ICTC Excluded Collateral or the Excluded Property.  
Commercial Tort Claims shall have the meaning ascribed to such term in the UCC.
Commitment shall mean with respect to each Lender, the commitment of such Lender to make its Pro Rata Share of US Revolving Loans or Canadian Revolving Loans, as applicable.
Commodity Exchange Act means the Commodity Exchange Act (7 U.S.C. §1 et seq.), as amended from time to time, and any successor statute.
Contingent Obligation, as applied to any Person, shall mean any direct or indirect liability of that Person: (a) with respect to any Indebtedness, lease, dividend or other obligation of another Person, if the purpose or intent of the Person incurring such liability, or the effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto; (b) with respect to any letter of credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings; (c) to make take-or-pay or similar payments if required regardless of nonperformance by any other party or parties to an agreement; or (d) pursuant to any agreement to purchase, repurchase or otherwise acquire any obligation or any property constituting security therefor, to provide funds for the payment or discharge of such obligation or to maintain the solvency, financial condition or any balance sheet item or level of income of another.  The amount of any Contingent Obligation shall be equal to the amount of the obligation so guaranteed or otherwise supported or, if not a fixed and determined amount, the maximum amount so guaranteed.
Controlled Group shall mean all members of a controlled group of corporations and all members of a controlled group of trades or businesses (whether or not incorporated) under common control that are treated as a single employer under Section 414 of the Internal Revenue Code or Section 4001 of ERISA.
Default shall mean an event or condition the occurrence of which would, with the lapse of time or the giving of notice, or both, become an Event of Default if not cured prior to the expiration of any applicable grace period.

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Defaulting Lender shall mean any Lender that (a) has failed to fund any portion of the Loans, participations in Letters of Credit or participations in Swing Line Loans required to be funded by it hereunder within one Business Day after the date required to be funded by it hereunder (including by settlement pursuant to Section 2.7), (b) has otherwise failed to pay over to Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one Business Day after the date when due, (c) has (i) been deemed, or has a direct or indirect parent company that has been deemed, insolvent or become the subject of a bankruptcy or insolvency proceeding or (ii) a direct or indirect parent company that has had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, (d) has notified Borrowers, Administrative Agent, any L/C Issuer or any Lender that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under other agreements in which it commits to extend credit or (e) has failed to confirm within three Business Days after a request by Administrative Agent that it will comply with the terms of this Agreement relating to its obligations to fund prospective Revolving Loans and participations in then outstanding Letters of Credit and Swing Line Loans.  Any determination by Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (e) above, and of the effective date of such status, shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.7.4) as of the date established therefor by Administrative Agent in a written notice of such determination, which shall be delivered by Administrative Agent to the Borrower, the L/C Issuer, the Swing Line Lender and each other Lender promptly following such determination.
Deposit Accounts shall have the meaning ascribed to such term in the UCC.
Depreciation and Depletion Expense for any period means the depreciation and depletion expense of such Person for such period, determined in accordance with GAAP.
Documents shall have the meaning ascribed to such term in the UCC. 
Documents of Title shall have the meaning ascribed to such term in the PPSA, as applicable.
Electronic Chattel Paper shall have the meaning ascribed to such term in the UCC.
Eligible Canadian Account shall mean an Account owing to any Canadian Borrower which is acceptable to Administrative Agent in its reasonable discretion determined in good faith for lending purposes.  Without limiting Administrative Agent’s discretion, Administrative Agent shall, in general, consider an Account to be an Eligible Account if it meets, and so long as it continues to meet, the following requirements:
(i)    it is genuine and in all respects what it purports to be;
(ii)    it is owned by a Canadian Borrower, such Canadian Borrower has the right to subject it to a security interest in favor of Administrative Agent or assign it to 

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Administrative Agent and it is subject to a first priority perfected security interest in favor of Administrative Agent and to no other claim, lien, security interest or encumbrance whatsoever, other than Permitted Liens that do not have priority over the Administrative Agent’s liens granted hereunder;
(iii)    it arises from (A) the performance of services by a Canadian Borrower in the ordinary course of such Canadian Borrower’s business, and such services have been fully performed and acknowledged and accepted by the Account Debtor thereunder; or (B) the sale or lease of Goods by a Canadian Borrower in the ordinary course of such Canadian Borrower’s business, and (x) such Goods have been completed in accordance with the Account Debtor’s specifications (if any),and delivered to the Account Debtor, (y) such Account Debtor has not refused to accept, returned or offered to return, any of the Goods which are the subject of such Account, and (z) such Canadian Borrower has possession of, or such Canadian Borrower has delivered to Administrative Agent (at Administrative Agent’s request) shipping and delivery receipts evidencing delivery of such Goods;
(iv)    it is evidenced by an invoice rendered to the Account Debtor thereunder, is due and payable within forty-five (45) days after the date of the invoice and does not remain unpaid ninety (90) days past the date of the invoice date thereof; provided, however, that if more than fifty percent (50%) of the aggregate dollar amount of Accounts owing by a particular Account Debtor are deemed ineligible as a result of the failure of the Account Debtor to pay such Account upon the earlier of the dates set forth above, then all Accounts owing by that Account Debtor shall be deemed ineligible; 
(v)    it is a valid, legally enforceable and unconditional obligation of the Account Debtor thereunder, and it shall not be an Eligible Account (i) to the extent of (a) any setoff, counterclaim, credit, allowance or adjustment by such Account Debtor or (b) discounts, credits and allowances which may be taken by or granted to Account Debtors in connection therewith in the ordinary course of Canadian Borrowers’ business, or (ii) if such Account Debtor has made a claim denying liability thereunder in whole or, to the extent of such claim if an Account Debtor has made a claim denying liability thereunder in part;
(vi)    it does not arise out of a contract or order which fails in any material respect to comply with the requirements of applicable law;
(vii)    the Account Debtor thereunder is not a director, officer, employee or agent of any Canadian Borrower, or a Subsidiary, Parent or Affiliate;
(viii)    it is not an Account with respect to which the Account Debtor is the United States of America or any governmental authority of Canada, as applicable, or any state, provincial or local government, or any department, agency or instrumentality thereof, unless the relevant Canadian Borrower assigns its right to payment of such Account to Administrative Agent pursuant to, and in full compliance with, the Assignment of Claims Act of 1940, as amended, or any comparable province, state or local law, as applicable;
(ix)    it is not an Account with respect to which the Account Debtor is located in a jurisdiction which requires the relevant Canadian Borrower, as a precondition to 

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commencing or maintaining an action in the courts of that jurisdiction, either to (A) receive a certificate of authority to do business, or similar certificate of evidence of registration with such jurisdiction’s corporate authority for the purpose of doing business in such jurisdiction, and be in good standing in such jurisdiction; or (B) file a notice of business activities report or similar report with such jurisdiction’s taxing authority, unless (x) such Canadian Borrower has taken one of the actions described in clauses (A) or (B); (y) the failure to take one of the actions described in either clause (A) or (B) may be taken by such Canadian Borrower at its election prior to commencing any such action, without prejudice to such action; or (z) such Canadian Borrower has proven, to Lender’s satisfaction, that it is exempt from any such requirements under any such jurisdiction’s laws; 
(x)    the Account Debtor is located within the United States of America or Canada;
(xi)    it is not an Account with respect to which the Account Debtor’s obligation to pay is subject to any repurchase obligation or return right, as with sales made on a bill-and-hold, guaranteed sale, sale on approval, sale or return or consignment basis;
(xii)    it is not an Account (A) with respect to which any representation or warranty contained in this Agreement is untrue; or (B) which violates any of the covenants of Canadian Borrowers contained in this Agreement; 
(xiii)    it is not an Account which, when added to a particular Account Debtor’s other indebtedness to Canadian Borrowers, exceeds twenty percent (20%) (increased to forty percent (40%) solely for Saskatchewan Power Corporation) of all Accounts of Canadian Borrowers or a credit limit determined by Lender in its sole discretion determined in good faith for that Account Debtor (except that Accounts excluded from Eligible Accounts solely by reason of this clause (xiii) shall be Eligible Accounts to the extent of such credit limit), provided that Administrative Agent shall give Canadian Borrowers written notice of any such credit limit; and 
(xiv)    it is not an Account with respect to which the prospect of payment or performance by the Account Debtor is or will be impaired, as determined by Administrative Agent in its reasonable discretion determined in good faith.  
Eligible Canadian Inventory shall mean Inventory of Canadian Borrowers which is acceptable to Administrative Agent in its reasonable discretion determined in good faith for lending purposes.  Without limiting Administrative Agent’s discretion, Administrative Agent shall, in general, consider Inventory to be Eligible Canadian Inventory if it meets, and so long as it continues to meet, the following requirements:
(i)    it is owned by a Canadian Borrower, such Canadian Borrower has the right to subject it to a security interest in favor of Administrative Agent and it is subject to a first priority perfected security interest in favor of Administrative Agent and to no other claim, lien, security interest or encumbrance whatsoever, other than Permitted Liens that do not have priority over the Administrative Agent’s liens granted hereunder;
(ii)    it is located on one of the premises listed on Schedule 11.2 (or other locations of which Administrative Agent has been advised in writing pursuant to 

14

Section 12.2.1 hereof), such locations are within the Canada and is not in transit (provided, however, that it is understood and agreed that to the extent any Inventory of any Canadian Borrower is located at the Genesee Mine it shall not qualify as Eligible Inventory hereunder); 
(iii)    if held for sale or lease or furnishing, it is (except as Administrative Agent may otherwise consent in writing) free from defects which would, in Administrative Agent’s sole determination determined in good faith, negatively affect its market value in any material respect;
(iv)    it is not stored with a bailee, consignee, warehouseman, processor or similar party unless Administrative Agent has given its prior written approval and Canadian Borrowers have caused any such bailee, consignee, warehouseman, processor or similar party to issue and deliver to Administrative Agent, in form and substance acceptable to Administrative Agent, such Uniform Commercial Code financing statements, warehouse receipts, waivers and other documents as Administrative Agent shall require;
(v)    it complies in all material respects with all standards imposed by any applicable governmental entity having  authority over the disposition, manufacture or use of that Inventory;
(vi)    Administrative Agent has determined in good faith, in accordance with Administrative Agent’s customary business practices and in its reasonable discretion, that it is not unacceptable due to age, type, category or quantity; and
(vii)    it is not Inventory (A) with respect to which any of the representations and warranties contained in this Agreement are untrue; or (B) which violates any of the covenants of Canadian Borrowers contained in this Agreement.
Eligible Parts Inventory shall mean Inventory of a particular Borrower comprised of parts held for sale in the ordinary course of business that are utilized in the mining industry and which otherwise meet all of the requirements for Eligible Inventory.
Eligible US Account shall mean an Account owing to any US Borrower which is acceptable to Administrative Agent in its reasonable discretion determined in good faith for lending purposes.  Without limiting Administrative Agent’s discretion, Administrative Agent shall, in general, consider an Account to be an Eligible Account if it meets, and so long as it continues to meet, the following requirements:
(i)    it is genuine and in all respects what it purports to be;
(ii)    it is owned by a US Borrower, such US Borrower has the right to subject it to a security interest in favor of Administrative Agent or assign it to Administrative Agent and it is subject to a first priority perfected security interest in favor of Administrative Agent and to no other claim, lien, security interest or encumbrance whatsoever, other than Permitted Liens that do not have priority over the Administrative Agent’s liens granted hereunder (it being understood and agreed for the avoidance of doubt that none of the Accounts of TWCC shall be Eligible US Accounts hereunder until such time as the security interest granted to NRGT by TWCC has been terminated);

15

(iii)    it arises from (A) the performance of services by a US Borrower in the ordinary course of such US Borrower’s business, and such services have been fully performed and acknowledged and accepted by the Account Debtor thereunder; or (B) the sale or lease of Goods by a US Borrower in the ordinary course of such US Borrower’s business, and (x) such Goods have been completed in accordance with the Account Debtor’s specifications (if any),and delivered to the Account Debtor, (y) such Account Debtor has not refused to accept, returned or offered to return, any of the Goods which are the subject of such Account, and (z) such US Borrower has possession of, or such US Borrower has delivered to Administrative Agent (at Administrative Agent’s request) shipping and delivery receipts evidencing delivery of such Goods;
(iv)    it is evidenced by an invoice rendered to the Account Debtor thereunder, is due and payable within forty-five (45) days after the date of the invoice and does not remain unpaid ninety (90) days past the date of the invoice date thereof; provided, however, that if more than fifty percent (50%) of the aggregate dollar amount of Accounts owing by a particular Account Debtor are deemed ineligible as a result of the failure of the Account Debtor to pay such Account upon the earlier of the dates set forth above, then all Accounts owing by that Account Debtor shall be deemed ineligible; 
(v)    it is a valid, legally enforceable and unconditional obligation of the Account Debtor thereunder, and it shall not be an Eligible Account (i) to the extent of (a) any setoff, counterclaim, credit, allowance or adjustment by such Account Debtor or (b) discounts, credits and allowances which may be taken by or granted to Account Debtors in connection therewith in the ordinary course of US Borrowers’ business, or (ii) if such Account Debtor has made a claim denying liability thereunder in whole or, to the extent of such claim if an Account Debtor has made a claim denying liability thereunder in part;
(vi)    it does not arise out of a contract or order which fails in any material respect to comply with the requirements of applicable law;
(vii)    the Account Debtor thereunder is not a director, officer, employee or agent of any US Borrower, or a Subsidiary, Parent or Affiliate (other than Absaloka in its capacity as an Account Debtor to Westmoreland Resources; it being understood and agreed that upon completion of the Indian Coal Tax Credit Transaction, Accounts of Absaloka shall be ineligible hereunder);  
(viii)    it is not an Account with respect to which the Account Debtor is the United States of America or any governmental authority of Canada, as applicable, or any state, provincial or local government, or any department, agency or instrumentality thereof, unless the relevant US Borrower assigns its right to payment of such Account to Administrative Agent pursuant to, and in full compliance with, the Assignment of Claims Act of 1940, as amended, or any comparable province, state or local law, as applicable;
(ix)    it is not an Account with respect to which the Account Debtor is located in a jurisdiction which requires the relevant US Borrower, as a precondition to commencing or maintaining an action in the courts of that jurisdiction, either to (A) receive a certificate of authority to do business and be in good standing in such jurisdiction; or (B) file a 

16

notice of business activities report or similar report with such jurisdiction’s taxing authority, unless (x) such US Borrower has taken one of the actions described in clauses (A) or (B); (y) the failure to take one of the actions described in either clause (A) or (B) may be taken by such US Borrower at its election prior to commencing any such action, without prejudice to such action; or (z) such US Borrower has proven, to Lender’s satisfaction, that it is exempt from any such requirements under any such jurisdiction’s laws;
(x)    the Account Debtor is located within the United States of America or Canada;
(xi)    it is not an Account with respect to which the Account Debtor’s obligation to pay is subject to any repurchase obligation or return right, as with sales made on a bill-and-hold, guaranteed sale, sale on approval, sale or return or consignment basis;
(xii)    it is not an Account (A) with respect to which any representation or warranty contained in this Agreement is untrue; or (B) which violates any of the covenants of US Borrowers contained in this Agreement; 
(xiii)    it is not an Account which, when added to a particular Account Debtor’s other indebtedness to US Borrowers, exceeds twenty percent (20%) of all Accounts of US Borrowers or a credit limit determined by Lender in its sole discretion determined in good faith for that Account Debtor (except that Accounts excluded from Eligible Accounts solely by reason of this clause (xiii) shall be Eligible Accounts to the extent of such credit limit), provided that Administrative Agent shall give US Borrowers written notice of any such credit limit; and  
(xiv)    it is not an Account with respect to which the prospect of payment or performance by the Account Debtor is or will be impaired, as determined by Administrative Agent in its reasonable discretion determined in good faith.  
Eligible US Inventory shall mean Inventory of US Borrowers which is acceptable to Administrative Agent in its reasonable discretion determined in good faith for lending purposes.  Without limiting Administrative Agent’s discretion, Administrative Agent shall, in general, consider Inventory to be Eligible Inventory if it meets, and so long as it continues to meet, the following requirements:
(i)    it is owned by a US Borrower, such US Borrower has the right to subject it to a security interest in favor of Administrative Agent and it is subject to a first priority perfected security interest in favor of Administrative Agent and to no other claim, lien, security interest or encumbrance whatsoever, other than Permitted Liens that do not have priority over the Administrative Agent’s liens granted hereunder (it being understood and agreed for the avoidance of doubt that none of the Inventory of TWCC shall be Eligible US Inventory hereunder until such time as the security interest granted to NRGT by TWCC has been terminated);
(ii)    it is located on one of the premises listed on Schedule 11.2 (or other locations of which Administrative Agent has been advised in writing pursuant to Section 12.2.1 hereof), such locations are within the United States and is not in transit (provided, 

17

however, that it is understood and agreed that to the extent any Inventory of any US Borrower is located at the Genesee Mine it shall not qualify as Eligible Inventory hereunder);
(iii)    if held for sale or lease or furnishing, it is (except as Administrative Agent may otherwise consent in writing) free from defects which would, in Administrative Agent’s sole determination determined in good faith, negatively affect its market value in any material respect;
(iv)    it is not stored with a bailee, consignee, warehouseman, processor or similar party unless Administrative Agent has given its prior written approval and US Borrowers have caused any such bailee, consignee, warehouseman, processor or similar party to issue and deliver to Administrative Agent, in form and substance acceptable to Administrative Agent, such Uniform Commercial Code financing statements, warehouse receipts, waivers and other documents as Administrative Agent shall require;
(v)    it is produced in compliance with the Fair Labor Standards Act and is not subject to the “hot goods” provisions contained in 29 USC 215(a)(i), and otherwise complies in all material respects with all standards imposed by any applicable governmental entity having  authority over the disposition, manufacture or use of that Inventory;
(vi)    Administrative Agent has determined in good faith, in accordance with Administrative Agent’s customary business practices and in its reasonable discretion, that it is not unacceptable due to age, type, category or quantity; and
(vii)    it is not Inventory (A) with respect to which any of the representations and warranties contained in this Agreement are untrue; or (B) which violates any of the covenants of US Borrowers contained in this Agreement.
Environmental Laws shall mean all federal, state, provincial, district, local and foreign laws, rules, regulations, ordinances, and consent decrees relating to health, hazardous substances, pollution and environmental matters, as now or at any time hereafter in effect, applicable to Borrowers’ business or facilities owned or operated by Borrowers, including laws relating to emissions, discharges, releases or threatened releases of pollutants, contamination, chemicals, or hazardous, toxic or dangerous substances, materials or wastes into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata) or otherwise relating to the generation, manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials.
Equipment shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable.
Equity Interests of any Person shall mean any and all shares, interests, rights to purchase or receive, warrants, options, participation or other equivalents of or interest in (however designated) equity of such Person, including any common stock, preferred stock, any limited or general partnership interest and any limited liability company membership interest.
ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended, modified or restated from time to time.

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ERISA Event shall mean, as to the Borrowers and each other member of the Controlled Group, respectively, any event or condition that causes or that is likely to result in: (a) the Borrowers or any Controlled Group member having any liability or obligation (whether contingent or otherwise) under Title IV of ERISA; or (b) the imposition of a Lien under ERISA or the Internal Revenue Code upon any property of the Borrowers or any member of the Controlled Group.
Event of Default shall have the meaning specified in Section 15 hereof.
Excess Availability shall mean, as of any date of determination by Lender with respect to any Revolving Loan Commitment hereunder, the lesser of (i) such Revolving Loan Commitment less the sum of the outstanding Revolving Loans and Letter of Credit Obligations under such Revolving Loan Commitment and (ii) the Revolving Loan Availability under such Revolving Loan Commitment less the sum of the outstanding Revolving Loans and Letter of Credit Obligations under such Revolving Loan Commitment, in each case as of the close of business on such date.
Excluded Deposit Accounts shall mean (a) payroll, withholding tax and other accounts for which the funds on deposit therein pertain to Liens permitted under clause (x) of the definition of “Permitted Liens” below (provided that no Borrower may maintain funds in any such account in excess of amounts which are actually accrued (or in the case of fiduciary accounts, otherwise required to be maintained therein) to its employees or the relevant governmental authority or other beneficiary of such account) and (b) other deposit accounts (the “Other Excluded Deposit Accounts”) so long as the following conditions are satisfied: (1) all deposits into and balances maintained in the Other Excluded Deposit Accounts shall be in the ordinary course of business and (2) to the extent the aggregate balances in all Other Excluded Deposit Accounts at any time exceed $100,000 for a period of longer than three Business Days, the relevant Borrower shall either (a) cause such amounts in excess of $100,000 to be transferred promptly (but in no event later than seven Business Days) to the Lockbox Account or (b) cause one or more Other Excluded Deposit Accounts to become subject to a deposit account control agreement so that, after giving effect to the actions in clauses (a) and/or (b) the aggregate balance on deposit in all Other Excluded Deposit Accounts shall not at any time exceed $100,000 in the aggregate for a period longer than ten Business Days.
Excluded Property shall mean (i) all Excluded TWCC Personal Property; (ii) all Excluded TWCC Equity and (iii) any right, title or interest in any permit, lease, capital lease, license, contract, agreement or equipment the subject of a purchase money financing transaction held by any Loan Party, or to which any Loan Party is a party or any of its right, title or interest thereunder to the extent, but only to the extent, that the creation of a security interest would, under the terms of such permit, lease, capital lease, license, contract, agreement or equipment or as a matter of law, result in a breach of the terms of, or constitute a default under, any permit, lease, capital lease, license, contract, agreement, account receivable, inventory or equipment held by any Loan Party or to which any Loan Party is a party or render void the security interest therein (other than to the extent that any such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions); provided, that immediately upon the ineffectiveness, lapse or termination of any such provision or upon obtaining a required consent to cure any potential breach, such right, title to interest in 

19

such permit, lease, capital lease, license, contract, agreement or equipment subject to a purchase money financing transaction shall cease to be an “Excluded Property” and, provided, further, that immediately upon the ineffectiveness, lapse or termination of any such provision or security interest or upon obtaining a required consent to cure any potential breach, such right, title or interest in such permit, lease, capital lease, license, contract, agreement or equipment subject to a purchase money financing transaction shall cease to be an “Excluded Property.” For the avoidance of doubt, “Excluded Property” shall not include any right to receive any payment of money or the proceeds, substitutions or replacements of any Excluded Property (unless such proceeds, substitutions or replacements would constitute an Excluded Property). 
Excluded Swap Obligation means, with respect to any guarantor of a Swap Obligation, including the grant of a security interest to secure the guaranty of such Swap Obligation, any Swap Obligation if, and to the extent that, such Swap Obligation is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guaranty or grant of such security interest becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Swap Obligation or security interest is or becomes illegal.
Excluded Taxes shall mean taxes based upon, or measured by, a Lender’s or Administrative Agent’s (or a branch of a Lender’s or Administrative Agent’s) overall net income, overall net receipts, or overall net profits (including franchise taxes imposed in lieu of such taxes), but only to the extent such taxes are imposed by a taxing authority (a) in a jurisdiction in which such Lender or Administrative Agent is organized, (b) in a jurisdiction which a Lender’s or Administrative Agent’s principal office is located, or (c) in a jurisdiction in which a Lender’s or Administrative Agent’s lending office (or branch) in respect of which payments under this Agreement are made is located.
Excluded TWCC Equity shall mean all right, title and interest of Westmoreland Mining LLC in the Equity Interests of TWCC, which has been pledged to NRGT pursuant to the Pledge Agreement dated as of June 26, 2008 between Westmoreland Mining LLC and NRGT, as amended from time to time.
Excluded TWCC Personal Property shall mean all right, title and interest of TWCC in the property in which TWCC has granted a security interest to NRGT in all assets of TWCC  pursuant to the TWCC Security Agreement, which property shall not include the TWCC Supply Agreement Assets.
FATCA shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantially comparable and note materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code. 

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Federal Funds Rate shall mean for any day, a fluctuating interest rate equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Administrative Agent from three Federal funds brokers of recognized standing selected by Administrative Agent.  Administrative Agent’s determination of such rate shall be binding and conclusive absent manifest error.
Fiscal Year shall mean each twelve (12) month accounting period of Borrowers, which ends on December 31 of each year.
Fixtures shall have the meaning ascribed to such term in the UCC.
FRB shall mean the Board of Governors of the Federal Reserve System or any successor thereto.
GAAP shall mean generally accepted accounting principles set forth from time to time in (i) the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and (ii) statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession) and the Securities and Exchange Commission, which are applicable to the circumstances as of the date of determination, subject to the provisions of Section 14.3 of this Agreement. 
General Intangibles shall have the meaning ascribed to such term in the UCC.
Genesee Mine means the coal mining operations located in Warburg, Alberta.
Goods shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable.
GP shall mean the Person that is the general partner of an MLP.
GP Equity Transfer shall mean the sale, conveyance, transfer or other disposition of any equity interest in an MLP GP in connection with, or following, the initial public offering of an MLP GP.
Group shall have the meaning set forth in Section 2.3.1.
Hazardous Materials shall mean any hazardous, toxic or dangerous substance, materials and wastes, including, without limitation, hydrocarbons (including naturally occurring or man-made petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation, radioactive materials, polychlorinated biphenyls, pesticides, herbicides and any other kind and/or type of pollutants or contaminants (including, without limitation, materials which include hazardous constituents), sewage, sludge, industrial slag and solvents that are regulated under any Environmental Law and/or any other similar substances, materials, or wastes that are 

21

or become regulated under any Environmental Law (including, without limitation any that are or become classified as hazardous or toxic under any Environmental Law).
Hedging Agreement shall mean any agreement with respect to any swap, collar, cap, future, forward or derivative transaction, whether exchange-traded, over-the-counter or otherwise, including any involving, or settled by reference to, one or more interest rates, currencies, commodities, equity or debt instruments, any economic, financial or pricing index or basis, or any similar transaction, including any option with respect to any of these transactions and any combinations of these transactions.
Hedging Obligation shall mean, with respect to any Person, any liability of such Person under any Hedging Agreement, including any and all cancellations, buy backs, reversals, terminations or assignments under pay Hedging Agreement.  
ICTC Excluded Collateral shall mean (a) certain mineral rights and sales contracts of WRI that may be assigned or transferred to Absaloka in connection with Indian Coal Tax Credit Transactions, and the proceeds and products of such mineral rights (including the coal mined pursuant to such mineral rights) and sales contracts and (b) 100% of the Equity Interests in Absaloka.
Immaterial Subsidiary shall mean any Subsidiary in existence on the Closing Date (excluding Absaloka, Westmoreland Canada, LLC and Westmoreland Risk Management, Inc.) and whose total assets, as of the end of the most recent month for which internal financial statements are available, are less than $1,000,000 and whose total revenues for the most recent twelve-month period for which internal financial statements are available do not exceed $1,000,000; provided that a Subsidiary will not be considered to be an Immaterial Subsidiary if it, directly or indirectly, guarantees or otherwise provides direct credit support for any Indebtedness of the Borrowers or incurs any other Indebtedness other than intercompany indebtedness as permitted under this Agreement.
Income Tax Expense for any period means the provision for taxes of such Person, determined in accordance with GAAP.  
Indebtedness of any Person, shall mean, without duplication:  (a) all indebtedness of such Person for borrowed money; (b) all obligations of such Person evidenced by a bond, debenture, note or similar instrument; (c) all indebtedness of others guaranteed by such Person; (d) that portion of obligations of such Person with respect to Capital Leases that is properly classified as a liability on a balance sheet in conformity with GAAP; (e) notes payable and drafts accepted of such Person representing extensions of credit whether or not representing obligations for borrowed money; (f) any obligation of such Person owed for all or any part of the deferred purchase price of property or services, other than a trade account payable that arises in the ordinary course of business; (g) ”earnouts” and similar payment obligations of such Person (other than obligations payable in such Person’s common stock or common stock equivalents), (h) all obligations of such Person with respect to any hedge agreement or any swap contracts; (i) all indebtedness of such Person secured by any Lien on any property or asset owned or held by such Person regardless of whether the indebtedness secured thereby shall have been assumed by such Person or is non-recourse to the credit of such Person; and (j) surety and appeal bonds, 

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performance bonds, payment bonds and other similar obligations.  “Indebtedness” shall not include obligations of an MLP GP of an MLP with respect to Indebtedness of such MLP arising by operation of law due to such MLP GP’s position as a general partner of such MLP (or corresponding obligations of any general partner of such MLP GP arising by operation of law due to such entity’s position as a general partner of such GP); provided, however, that such obligations or Indebtedness are non-recourse to Westmoreland Parent or any of its Subsidiaries (other than such MLP GP and, if such MLP GP is a limited partnership, the general partner of such MLP GP, provided that (x) the sole business of such general partner of such MLP GP is to act as the general partner of such MLP GP and engage in activities ancillary thereto and (y) and such general partner of such MLP GP owns no assets (other than (i) ownership interests in such MLP GP or in the MLP of which such MLP GP is the MLP GP, (ii) temporarily holding assets to be transferred or distributed in connection with a Permitted MLP Transfer or a Permitted GP Transfer or distributions from an MLP or an MLP GP and (iii) current assets sufficient to satisfy its ordinary course operating expenses)).
Indemnified Liabilities shall have the meaning set forth in Section 19.4.
Indian Coal Tax Credit shall mean that certain federal income tax credit under Section 45 of the Code, generated by the sale of “Indian coal” (as defined in such section).
Indian Coal Tax Credit Transaction shall mean a transaction or arrangement between WRI and/or Absaloka, on the one hand, and any unaffiliated third party, on the other hand, in respect of which Indian Coal Tax Credits will be generated by WRI and/or Absaloka and in respect of which Westmoreland Parent and/or a Subsidiary will receive cash payments from the unaffiliated third party, Absaloka or both (regardless of the nature of the underlying obligation with respect to such payments).
Initial Oxford Dropdown shall mean (a) the contribution of 100% of the equity interests of Westmoreland Kemmerer Fee Coal Holdings, LLC, a Delaware limited liability company (WKFCH), which will hold specified fee simple interests in coal mine reserves at the Kemmerer Mine (the Kemmerer Reserves), to Oxford in exchange for 4,512,500 common units of Oxford pursuant to the Oxford Contribution Agreement and (b) the related entry into a coal mining lease whereby Westmoreland Kemmerer, Inc. will mine the Kemmerer Reserves in exchange for a royalty payment to WKFCH, which will be Oxford’s wholly owned subsidiary following the consummation of the transactions described herein.
Instruments shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable.
Intangibles shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable.
Intercreditor Agreement shall mean that certain Working Capital Intercreditor Agreement of even date herewith among Secured Notes Trustee, Secured Term Loan Agent, Administrative Agent and the Borrowers, as the same may be amended, restated, supplemented or otherwise modified from time to time.

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Interest Expense for any period means the sum, without duplication, of the total interest expense of such Person for such period, determined in accordance with GAAP and including, without duplication, 
(1)    imputed interest on Capital Leases and Attributable Indebtedness, 
(2)    commissions, discounts and other fees and charges owed with respect to letters of credit securing financial obligations, bankers’ acceptance financing and receivables financings, 
(3)    amortization of debt issuance costs, debt discount or premium and other financing fees and expenses but excluding amortization of deferred financing charges incurred in respect of the Secured Term Debt, 
(4)    the interest portion of any deferred payment obligations, 
(5)    all other non-cash interest expense, 
(6)    capitalized interest, 
(7)    the product of (a) all cash and non-cash dividends paid, declared, accrued or accumulated on any series of Disqualified Stock (as defined in the Secured Note Indenture in effect on the date hereof) or any Designated Preferred Stock (as defined in the Secured Note Indenture in effect on the date hereof) of such Person (other than any such Disqualified Stock or any Designated Preferred Stock held by such Person or to the extent paid in Equity Interests (as defined in the Secured Note Indenture in effect on the date hereof)), multiplied by (b) a fraction, the numerator of which is one and the denominator of which is one minus the then current combined federal, state and local statutory income tax rate of such Person, expressed as a decimal, 
(8)    all interest payable with respect to discontinued operations, and 
(9)    all interest on any Indebtedness of any other Person guaranteed by such Person; provided, that to the extent directly related to the issuance of the Secured Term Debt, amortization of debt issuance costs, debt discount or premium and other financing fees and expenses shall be excluded.  Interest Expense shall be calculated after giving effect to Hedging Obligations (including associated costs) involving interest rate swap and collar agreements, but excluding unrealized gains and losses with respect to Hedging Obligations.  Notwithstanding the foregoing, Interest Expense shall be allocated among the Canadian Borrowers and the US Borrowers on a percentage basis for each calendar year as follows: 
	
			
	Year
	Canadian Interest Expense
	US Interest Expense

	2015
	40%
	60%

	2016
	52.50%
	47.50%

	2017
	65%
	35%

	2018
	80%
	20%

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Interest Period shall mean, as to any LIBOR Loan, the period commencing on the date such Loan is borrowed or continued as, or converted into, a LIBOR Loan and ending on the date one, two or three months thereafter as selected by the Representative pursuant to Section 2.3.2 or 2.3.3, as the case may be; provided that:
(a)    if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the following Business Day unless the result of such extension would be to carry such Interest Period into another calendar month, in which event such Interest Period shall end on the preceding Business Day;
(b)    any Interest Period that begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period shall end on the last Business Day of the calendar month at the end of such Interest Period; and
(c)    Representative may not select any Interest Period for a Revolving Loan which would extend beyond the scheduled Maturity Date.
Inventory shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable.
Investment Property shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable.
ITA means the Income Tax Act (Canada) and the regulations thereunder, as the same may be amended from time to time, in effect.
Kemmerer Reserves shall have the meaning provided in the definition of “Initial Oxford Dropdown.”
L/C Application shall mean with respect to any request for the issuance of a Letter of Credit, a letter of credit application in the form being used by the L/C Issuer at the time of such request for the type of Letter of Credit requested. 
L/C Issuer shall mean (i) with respect to all Letters of Credit denominated in US Dollars, Administrative Agent, in its capacity as the issuer of Letters of Credit denominated in US Dollars hereunder, any Affiliate of Administrative Agent that may issue Letters of Credit denominated in US Dollars hereunder, or any other financial institution that Administrative Agent may cause to issue Letters of Credit denominated in US Dollars hereunder, and each of their successors and assigns, and (ii) with respect to all Letters of Credit denominated in Canadian Dollars, Administrative Agent or Canadian Bank, in its capacity as the issuer of Letters of Credit denominated in Canadian Dollars hereunder, any Affiliate of Administrative Agent or Canadian Bank that may issue Letters of Credit denominated in Canadian Dollars hereunder, or any other financial institution that Administrative Agent or Canadian Bank may cause to issue Letters of Credit denominated in Canadian Dollars hereunder, and each of their successors and assigns. 
Lender shall have the meaning set forth in the preamble of this Agreement.  References to the “Lenders” shall include the L/C Issuer(s); for purposes of clarification only, to the extent 

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that PrivateBank (or any successor L/C Issuer) may have any rights or obligations in addition to those of the other Lenders due to its status as L/C Issuer, its status as such will be specifically referenced.  In addition to the foregoing, for the purpose of identifying the Persons entitled to share in the Collateral and the proceeds thereof under, and in accordance with the provisions of, this Agreement and the Collateral Documents, the term “Lender” shall include Affiliates of a Lender providing a Bank Product.
Lender Party shall have the meaning set forth in Section 19.4 hereof. 
Letter of Credit shall mean any letter of credit issued on behalf of any Borrower in accordance with this Agreement.  
Letter of Credit Agreement shall mean, at any time, with respect to the issuance of Letters of Credit, a letter of credit agreement or reimbursement agreement in the form being used by the L/C Issuer at such time. 
Letter of Credit Obligations means the aggregate amount of US Letter of Credit Obligations and Canadian Letter of Credit Obligations, as the context may require.
Letter-of-Credit Right shall have the meaning ascribed to such term in the UCC.
Leverage Ratio shall mean the ratio of the total funded Indebtedness of the Borrowers to  Canadian EBITDA plus US EBITDA determined for the prior four fiscal quarters.
LIBOR Loans shall mean the Loans bearing interest with reference to the LIBOR Rate.
LIBOR Office shall mean with respect to any Lender the office or offices of such Lender which shall be making or maintaining the LIBOR Loans of such Lender hereunder.  A LIBOR Office of Lender may be, at the option of such Lender, either a domestic or foreign office.
LIBOR Rate shall mean a rate of interest equal to (i) the per annum rate of interest at which United States dollar deposits for a period equal to the relevant Interest Period are offered in the London Interbank Eurodollar market at 11:00 A.M. (London time) two (2) Business Days prior to the commencement of such Interest Period (or three (3) Business Days prior to the commencement of such Interest Period if banks in London, England were not open and dealing in offshore United States dollars on such second preceding Business Day), as displayed in the Bloomberg Financial Markets system (or other authoritative source selected by Administrative Agent in its sole discretion), divided by (ii) a number determined by subtracting from 1.00 the then stated maximum reserve percentage for determining reserves to be maintained by member banks of the Federal Reserve System for Eurocurrency funding or liabilities as defined in Regulation D (or any successor category of liabilities under Regulation D), or as LIBOR is otherwise determined by Administrative Agent in its sole and absolute discretion.  Administrative Agent’s determination of the LIBOR Rate shall be conclusive, absent manifest error and shall remain fixed during such Interest Period. 
Loan Documents shall mean all agreements, instruments and documents, including, without limitation, this Agreement, the Intercreditor Agreement, guaranties, mortgages, trust deeds, pledges, powers of attorney, consents, assignments, contracts, notices, security 

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agreements, leases, financing statements, Hedging Agreements, Bank Product Agreements and all other writings heretofore, now or from time to time hereafter executed by or on behalf of any Borrower or any other Person and delivered to Administrative Agent or to any parent, Affiliate or Subsidiary of Administrative Agent or any Lender in connection with the Obligations or the transactions contemplated hereby, as each of the same may be amended, modified or supplemented from time to time.
Loan Party shall mean each Borrower and each other person who is or shall become primarily or secondarily liable for any of the Obligations.
Loans shall mean all loans and advances made by Administrative Agent and Lenders to or on behalf of any Borrower hereunder.
Lockbox and Lockbox Account shall have the meanings specified Section 8.1 hereof.
Material Adverse Effect shall mean, in each case as determined by Administrative Agent in its sole discretion, determined in good faith (i) a material adverse change in, or a material adverse effect on the business, property, assets, financial condition or results of operations of the Borrowers, taken as a whole, (ii) a material impairment of the ability of any Borrower to perform any of its obligations (other than its payment obligations) under this Agreement and the other Loan Documents, (iii) a material impairment of the ability of the Borrowers, taken as a whole, to make any payment required under this Agreement and the other Loan Documents, (iv) a material adverse effect upon any Collateral or its value, or (iv) a material impairment of the enforceability or priority of Lender’s liens upon the Collateral with a value in excess of $500,000 in the aggregate or the legality, validity, binding effect or enforceability of this Agreement and the other Loan Documents.
Maturity Date shall mean December 31, 2018.
Maximum Aggregate Loan Amount shall mean Fifty Million and No/100 Dollars ($50,000,000) comprised of the Canadian Revolving Loan Commitment and the US Revolving Loan Commitment, unless otherwise increased in accordance with the terms of Section 2.10 herein.
Maximum Canadian Loan Amount shall mean Twenty Million and No/100 Dollars ($20,000,000), unless otherwise increased in accordance with the terms of Section 2.10 herein.
Maximum US Loan Amount shall mean Thirty Million and No/100 Dollars ($30,000,000), unless otherwise increased in accordance with the terms of Section 2.10 herein.
MLP shall mean any master limited partnership, including Oxford.
MLP Asset Transfer shall mean the direct or indirect sale, conveyance, transfer or other disposition of property or assets (including any equity interests of any Person) by Westmoreland Parent or any of its Subsidiaries to one or more MLPs or such MLP’s or MLPs’ Subsidiaries, which has been consummated in accordance with the terms herein.

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MLP Equity Transfer shall mean the sale, conveyance, transfer or other disposition of any equity interest in an MLP (including by means of a dividend or other distribution of equity).
MLP GP means a GP that is a general partner of an MLP, including Oxford GP.
Net Consolidated Asset Reclamation Accretion Expense for any period means the accretion expense associated with asset reclamation obligations of Borrowers for such period, less the amount of all reimbursements from customers associated with such asset reclamation obligations, determined on a consolidated basis in accordance with GAAP. 
Net Income means, with respect to any Borrower for the applicable period, the total (without duplication) in Dollars of (all as determined in accordance with GAAP) such Borrower’s net income; provided that such Borrower’s net income shall exclude: (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of such Borrower or is merged into or consolidated with such Borrower or such Borrower’s Subsidiary, (b) the income (or deficit) of any Person (other than any Subsidiary of such Borrower) in which such Borrower or any such Borrower’s Subsidiaries has an ownership interest, except to the extent that any such income is actually received by, or deficit is allocated to, such Borrower or such Borrower’s Subsidiary in the form of dividends or similar distributions or, in the case of deficits, allocations, and (c) the undistributed earnings of such Borrower’s Subsidiary to the extent that the declaration or payment of dividends or similar distributions by such Borrower’s Subsidiary is not at the time permitted by the terms of any contractual obligation (other than under any Loan Document) or legal restriction applicable to such Borrower’s Subsidiary.
Non-Consenting Lender shall have the meaning set forth in Section 20.1 hereof.
Non-US Participant shall have the meaning set forth in Section 4.4(d) hereof.
Note shall mean, collectively, the US Revolving Notes and the Canadian Revolving Notes.
Notice of Borrowing shall have the meaning set forth in Section 2.3.2(a). 
Notice of Conversion/Continuation shall have the meaning set forth in Section 2.3.3(b) hereof.
NRGT means NRG Texas Power LLC, a Delaware limited liability company.
Obligations shall mean, collectively, all US Obligations and all Canadian Obligations.
OFAC shall have the meaning set forth in Section 12.11 hereof.
Overadvance shall have the meaning set forth in Section 2.1.3 hereof.
Oxford means Oxford Resource Partners, LP, a Delaware limited partnership.
Oxford Contribution Agreement shall have the meaning set forth in the Recitals.

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Oxford GP means Oxford Resources GP, LLC a Delaware limited liability company.
Oxford Purchase Agreement shall have the meaning set forth in the Recitals.
Oxford Subsidiaries means each Subsidiary of Oxford. 
Paid in Full means (a) the payment in full (other than contingent indemnification obligations which are not yet due and payable) in cash and performance of all Obligations, (b) the termination of the Revolving Loan Commitment and (c) either (i) the cancellation and return to Lender of all Letters of Credit or (ii) the cash collateralization of all Letters of Credit in accordance with this Agreement.
Parent shall mean any Person now or at any time or times hereafter owning or controlling (alone or with any other Person) at least a majority of the issued and outstanding equity of any Borrower and, if a Borrower is a partnership, the general partner of such Borrower.
Participant shall have the meaning set forth in Section 19.1.2 hereof.
PBGC shall have the meaning specified in Section 12.2.5 hereof.
Permitted Acquisition means any Acquisition by any Borrower or any domestic wholly-owned Subsidiary of Westmoreland Parent pursuant to which:  
(a)    the business or division acquired are for use, or the Person acquired is engaged, in the businesses engaged in by the Borrowers on the Closing Date; 
(b)    immediately before and after giving effect to such Acquisition, no Default or Event of Default shall exist; 
(c)    immediately after giving effect to such Acquisition, the Borrowers are in pro forma compliance with all the financial ratios and restrictions set forth in Section 14 herein; 
(d)    in the case of the Acquisition of any Person, the board of directors or similar governing body of such Person has approved such Acquisition to the extent required by such Person’s governing documents; 
(e)    reasonably prior to such Acquisition, Administrative Agent shall have received complete substantially final forms of each material document, instrument and agreement to be executed in connection with such Acquisition together with all lien search reports and lien release letters and other documents as Administrative Agent may require to evidence the termination of Liens on the assets or business to be acquired; 
(f)    not less than ten (10) Business Days prior to such Acquisition, Administrative Agent shall have received an acquisition summary with respect to the Person and/or business or division to be acquired, such summary to include a reasonably detailed description thereof (including financial information) and operating results (including financial statements for the most recent twelve (12) month period for which 

29

they are available and as otherwise available), the terms and conditions, including economic terms, of the proposed Acquisition; 
(g)    the  Borrowers shall have Revolving Loan Availability plus cash on deposit with Administrative Agent subject to a first priority security interest in favor of Administrative Agent of at least $20,000,000 after giving effect to such Acquisition; 
(h)    the Borrowers have a pro-forma Leverage Ratio of no more than 4.0:1.0 as of the last day of the fiscal quarter most recently ended after giving effect to such Acquisition;
(i)    opinions of counsel for the Borrowers and (if delivered to the Borrower) the selling party in favor of Administrative Agent have been delivered; 
(j)    consents have been obtained in favor of Administrative Agent to the collateral assignment of rights and indemnities under the related acquisition documents (unless such assignment is permitted in accordance with the terms of the underlying acquisition documents); 
(k) the provisions of Section 12.12 have been satisfied at the time of the consummation of such Acquisition (unless otherwise agreed to by Administrative Agent in its sole discretion); 
(l) simultaneously with the closing of such Acquisition, the target company (if such Acquisition is structured as a purchase of equity) or the Borrower (if such Acquisition is structured as a purchase of assets or a merger and a Borrower is the surviving entity) executes and delivers to Administrative Agent (i) such documents necessary to grant to Administrative Agent a first priority Lien on substantially all of the assets of such target company or surviving company in accordance with Section 5.1, and of their respective Subsidiaries, each in form and substance satisfactory to Administrative Agent and (ii) an unlimited Guaranty of the Obligations, or at the option of Administrative Agent in Administrative Agent’s absolute discretion, a joinder agreement satisfactory to Administrative Agent in which such target company or surviving company, and their respective Subsidiaries becomes a borrower under this Agreement and assumes primary, joint and several liability for the Obligations; and 
(m)    if the Acquisition is structured as a merger, a Borrower is the surviving entity.
Permitted Investments shall mean (i) Cash Equivalents; (ii) corporate-issued securities, including medium term notes and corporate bonds; (iii) receivables owing to any Borrower if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms; provided, however, that such trade terms may include such concessionary trade terms as the Borrower deems reasonable under the circumstances; (iv) ordinary course trade credit and advances to customers; (v) advances made to employees, officers and directors for travel and other expenses arising in the ordinary course of business in an amount not to exceed $500,000 in the aggregate at any time; (vi) investments in securities of trade creditors or customers received pursuant to any plan of reorganization or similar 

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arrangement upon the bankruptcy or insolvency of such trade creditors or customers; (vii) prepaid expenses, surety, reclamation and performance bonds and lease, tax, utilities, workers’ compensation, performance and similar deposits made in the ordinary course of business; (viii) stock, obligations or securities received in settlement of debts created in the ordinary course of business and owing to any Borrower or in satisfaction of judgments; (ix) Permitted Acquisitions; (x) investments by a Borrower in equity of one or more other Borrowers; (xi) Westmoreland and any of its Subsidiaries may make any investment in securities or other assets not constituting cash or Cash Equivalents or received in connection with (a) the Oxford Acquisition and the Initial Oxford Dropdown, or (b) an Asset Sale, Permitted GP Transfer or Permitted MLP Transfer permitted by Section 13.4; (xii) Westmoreland Parent and any of its Subsidiaries may make any investment in an MLP or a GP; provided that such investment results from a Permitted MLP Asset Transfer or a Permitted MLP Equity Transfer; and (xii)  any investment made by Absaloka or its equity owners in connection with an Indian Coal Tax Credit Transaction.
Permitted Liens shall mean (i) statutory liens of landlords, carriers, warehousemen, processors, mechanics, materialmen, repairmen or suppliers and other liens imposed by law incurred in the ordinary course of business and securing amounts not yet due or declared to be due by the claimant thereunder or amounts which are being contested in good faith and by appropriate proceedings and for which Borrowers have maintained adequate reserves; (ii) liens or security interests in favor of Administrative Agent; (iii) liens for taxes, assessments and governmental charges not yet due and payable or which are being contested in good faith and by appropriate proceedings and with respect to which the relevant Borrower is in compliance with clauses (i) and (iii) of Section 12.8 hereof; (iv) zoning restrictions and easements, licenses, covenants and other restrictions affecting the use of real property that do not individually or in the aggregate have a material adverse effect on any Borrower’s ability to use such real property for its intended purpose in connection with such Borrower’s business; (v) liens in connection with purchase money indebtedness and Capital Leases otherwise permitted pursuant to this Agreement, provided, that such liens attach only to the assets the purchase of which was financed by such purchase money indebtedness or which are the subject of such Capital Leases; (vi) liens set forth on Schedule 1; (vii) liens specifically permitted by Administrative Agent in writing; (viii) involuntary liens securing amounts less than $1,000,000 and which are released or for which a bond acceptable to Administrative Agent in its sole discretion, determined in good faith, has been posted within ten (10) days of its creation, (x) pledges incurred, deposits made or bonds given in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, reclamation, surety and appeal bonds, bids, leases, government contracts, performance and return-of-money bonds and other ordinary course obligations (exclusive of obligations for the payment of borrowed money), (xi) liens in respect of royalty, production payment and other obligations under coal leases and similar agreements entered into in the ordinary course of business and to the extent such liens do not secure any obligation for borrowed money; (xii) liens in respect of supply, sales, surface use and other operational agreements entered into consistent with normal practices in the mining industry, in each case to the extent such agreements are entered into in the ordinary course of business and such liens do not secure any obligation for borrowed money; (xiii) subordinate liens on the Collateral (excluding all Equipment owned by the Canadian Borrowers) in favor of (a) the Secured Note Trustee and Secured Note Holders securing the Secured Notes, and (b) the Secured Term Loan 

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Agent securing the Secured Term Loan, so long as in each case such liens are at all times subject to the Intercreditor Agreement; and (xiv) subordinate liens on the assets of any Borrower in favor of another Borrower securing indebtedness from one or more Borrowers to one or more other Borrowers, as long as the indebtedness secured by such lien is subject to a subordination agreement or contains subordination provisions in the instrument representing such indebtedness in form and substance acceptable to Administrative Agent.
Permitted GP Transfer shall mean any sale, conveyance, transfer or other disposition of any Equity Interest in the general partner of a MLP in connection with, or following, the initial public offering of  the general partner of such MLP that complies with Section 13.4.
Permitted MLP Asset Transfer shall mean any MLP Asset Transfer that complies with Section 13.4.
Permitted MLP Equity Transfer shall mean any MLP Equity Transfer that complies with Section 13.4.
Permitted MLP Transfer shall mean, collectively, any Permitted MLP Asset Transfer and any Permitted MLP Equity Transfer.
Person shall mean any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, entity, party or foreign or United States government (whether federal, state, provincial, county, city, municipal or otherwise), including, without limitation, any instrumentality, division, agency, body or department thereof.
Plan shall have the meaning specified in Section 12.2.5 hereof.
PPSA shall mean the Personal Property Security Act as in effect in the Provinces of Ontario, Alberta and Saskatchewan, as applicable. 
Pre-Settlement Determination Date shall have the meaning set forth in Section 2.8 hereof.
Prime Rate shall mean, for any day, the rate of interest in effect for such day as publicly announced from time to time by Administrative Agent as its prime rate (whether or not such rate is actually charged by Administrative Agent), which is not intended to be Administrative Agent’s lowest or most favorable rate of interest at any one time.  Any change in the Prime Rate announced by Administrative Agent shall take effect at the opening of business on the day specified in the public announcement of such change; provided that Administrative Agent shall not be obligated to give notice of any change in the Prime Rate.
PrivateBank shall have the meaning set forth in the preamble hereof.
Pro Rata Share shall mean: 
(a)    with respect to a Lender’s obligation to make US Revolving Loans, participate in US Letters of Credit, reimburse the L/C Issuer(s) for US Letters of Credit, and receive payments 

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of principal, interest, fees, costs, and expenses with respect thereto, (x) prior to the US Revolving Loan Commitment being terminated or reduced to zero, the percentage obtained by dividing (i) such Lender’s US Revolving Loan Commitment, by (ii) the total US Revolving Loan Commitments of all Lenders and (y) from and after the time the US Revolving Loan Commitment has been terminated or reduced to zero, the percentage obtained by dividing (i) the aggregate unpaid principal amount of such Lender’s US Revolving Loans (after settlement and repayment of all US Swing Line Loans and Agent Advances by the Lenders) by (ii) the aggregate unpaid principal amount of all US Revolving Loans.
(b)    with respect to a Lender’s obligation to make Canadian Revolving Loans, participate in Canadian Letters of Credit, reimburse the L/C Issuer(s) for Canadian Letters of Credit, and receive payments of principal, interest, fees, costs, and expenses with respect thereto, (x) prior to the Canadian Revolving Loan Commitment being terminated or reduced to zero, the percentage obtained by dividing (i) such Lender’s Canadian Revolving Loan Commitment, by (ii) the total Canadian Revolving Loan Commitment of all Lenders and (y) from and after the time the Canadian Revolving Loan Commitment has been terminated or reduced to zero, the percentage obtained by dividing (i) the aggregate unpaid principal amount of such Lender’s Canadian Revolving Loans (after settlement and repayment of all Canadian Swing Line Loans and Agent Advances by the Lenders) by (ii) the aggregate unpaid principal amount of all Canadian Revolving Loans.
(c)    with respect to all other matters as to a particular Lender, the percentage obtained by dividing (i) such Lender’s Revolving Loan Commitment by (ii) the total Revolving Loan Commitments of all Lenders; provided that in the event the Revolving Loan Commitments have been terminated or reduced to zero, Pro Rata Share shall be the percentage obtained by dividing (A) the principal amount of such Lender’s Revolving Loans (after settlement and repayment of all Swing Line Loans and Agent Advances by the Lenders) by (B) the principal amount of all outstanding Revolving Loans.
Notwithstanding the foregoing, for all Letters of Credit denominated in Canadian Dollars, such Letters of Credit will be converted into the US Dollar Equivalent for purposes of determining a Lender’s Pro Rata Share of such Letter of Credit as of any date of determination. 
Proceeds shall have the meaning ascribed to such term in the UCC or the equivalent thereof under the PPSA, as applicable.
Register shall have the meaning set forth in Section 19.2 hereof.
Regulation D shall mean Regulation D of the FRB.
Regulation U shall mean Regulation U of the FRB.
Related Transactions shall mean (i) the acquisition of 100% of the issued and outstanding equity interests of Oxford GP by Westmoreland Parent in accordance with the terms of the Purchase Agreement and the other transactions contemplated thereby, including the refinancing of the current senior and second lien indebtedness of Oxford and its Affiliates, (ii) the acquisition of 76.4% of the issued and outstanding equity interests of Oxford by Westmoreland Parent in accordance with the terms of the Oxford Contribution Agreement 

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(including, for the avoidance of doubt, the Initial Oxford Dropdown), (iii) the issuance of the Secured Notes, (iv) the issuance of the Secured Term Loan and (v) the refinancing of certain existing Indebtedness of the Borrowers on the date hereof in connection with the issuance of the Indebtedness incurred in connection with the Secured Notes and the Secured Term Loan.  
Related Transactions Documents shall mean the Oxford Purchase Agreement, the Oxford Contribution Agreement, the Notes Indenture, the Term Loan Credit Agreement and the other Secured Debt Documents.
Remote Scanning shall have the meaning set forth in Section 8.1 hereof.
Reportable Event means a reportable event as defined in Section 4043 of ERISA and the regulations issued thereunder as to which the PBGC has not waived the notification requirement of Section 4043(a), or the failure of a Plan to meet the minimum funding standards of Section 412 of the Code (without regard to whether the Plan is a plan described in Section 4021(a)(2) of ERISA) or under Section 302 of ERISA.
Representative shall have the meaning set forth in Section 20.13 hereof.
Required Lenders shall mean, at any time, Lenders whose Pro Rata Share exceeds 66-2/3% as determined pursuant to clause (c) of the definition of Pro Rata Share provided, that the Pro Rata Share held or deemed held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.
Restricted Subsidiaries of a Person means any Subsidiary of such Person that is not an Unrestricted Subsidiary, including each Subsidiary of the Issuer that is not an Unrestricted Subsidiary.
Revolving Loan Commitment of any Lender shall mean, collectively, the Canadian Revolving Loan Commitment of such Lender plus the US Revolving Loan Commitment of such Lender.
Revolving Loans shall mean the aggregate amount of all Canadian Revolving Loans and all US Revolving Loans as the context may require.
Securities Account shall have the meaning set forth in the UCC or the equivalent thereof under the PPSA, as applicable.
Secured Debt Documents shall mean, collectively, the Secured Note Documents and the Secured Term Loan Documents.
Secured Notes shall mean the notes issued pursuant to the terms of the Secured Note Indenture.
Secured Note Documents shall mean, collectively, the Secured Note Indenture, the Secured Notes and all other agreements, documents or instruments related thereto.

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Secured Note Facility shall mean the senior notes facility issued by the Borrowers pursuant to the terms of the Secured Note Indenture, in an aggregate principal amount not to exceed $350,000,000.
Secured Note Holders shall mean the holders of the Secured Notes.
Secured Note Indenture shall mean the Indenture dated as of December 16, 2014, among Westmoreland Parent, Westmoreland Partners, the other Subsidiaries of Westmoreland Parent party thereto as guarantors and the Secured Notes Trustee, as amended, restated, supplemented or otherwise modified from time to time in accordance with the terms and conditions of the Intercreditor Agreement. 
Secured Notes Obligations means all obligations and liabilities of the Borrowers under the Secured Note Facility.
Secured Notes Trustee means U.S. Bank, National Association in its capacity as trustee for the Secured Note Holders under the Secured Note Indenture, and its permitted successors and assigns in such capacity.
Secured Term Debt shall mean (i) the Secured Notes, (ii) the Secured Term Loan, and (iii) all other indebtedness for borrowed money and any other claims or obligations arising under, evidenced by or related to indebtedness which is subject to a subordination agreement in form and substance acceptable to Lender. 
Secured Term Loan shall mean the term loan incurred pursuant to the Secured Term Loan Credit Agreement in an aggregate principal amount not to exceed $350,000,000.
Secured Term Loan Credit Agreement shall mean that certain Credit Agreement of even date herewith among Westmoreland Parent, Secured Term Loan Agent and the Secured Term Loan Lenders, as amended, restated, supplemented or otherwise modified from time to time in accordance with the terms and conditions of the Intercreditor Agreement.  
Secured Term Loan Documents shall mean the Secured Term Loan Credit Agreement and any notes issued thereunder and all other agreements, documents or instruments related thereto.
Settlement Date shall have the meaning set forth in Section 2.8 hereof.
Sherritt Acquisition shall mean the prior acquisition of all of the issued and outstanding equity securities of WPR, PMRL and CVRI by Westmoreland Canada.
Subsidiary shall mean any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether at the time stock of any other class of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, owned by a Borrower, or any partnership, joint venture or limited liability company of which more than fifty percent (50%) of the outstanding equity interests are at the time, directly or indirectly, owned by a Borrower or any partnership of 

35

which a Borrower is a general partner.  Notwithstanding anything contained herein to the contrary, no Unrestricted Subsidiary shall be deemed to be a Subsidiary of the Borrower for the purpose of this Agreement except as otherwise expressly provided herein.
Supporting Obligations shall have the meaning set forth in the UCC.
Swap Obligation means any Obligation that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act, as amended from time to time.
Swing Line Lender means PrivateBank.
Swing Line Loan means, collectively, all US Swing Line Loans and all Canadian Swing Line Loans, as the context may require.
Tangible Chattel Paper shall have the meaning ascribed to such term in the UCC.
Taxes shall mean any and all present and future taxes, duties, levies, imposts, deductions, assessments, charges or withholdings and any and all liabilities (including interest and penalties and other additions to taxes) with respect to the foregoing, but excluding the Excluded Taxes. 
Termination Event means, with respect to a Plan that is subject to Title IV of ERISA, (a) a Reportable Event, (b) the withdrawal of Borrower or any other member of the Controlled Group from such Plan during a plan year in which Borrower or any other member of the Controlled Group was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or was deemed such under Section 4068(f) of ERISA, (c) the termination of such Plan, the filing of a notice of intent to terminate the Plan or the treatment of an amendment of such Plan as a termination under Section 4041 of ERISA, (d) the institution by the PBGC of proceedings to terminate such Pension Plan or (e) any event or condition that might constitute grounds under Section 4042 of ERISA for the termination of, or appointment of a trustee to administer, such Plan.
Total Plan Liability means, at any time, the present value of all vested and unvested accrued benefits under all Plans, determined as of the then most recent valuation date for each Plan, using PBGC actuarial assumptions for single employer plan terminations.
TWCC shall mean Texas Westmoreland Coal Co., a Montana corporation.
TWCC Security Agreement shall mean the Security Agreement dated as of June 26, 2008 between TWCC and NRGT, as amended from time to time.
TWCC Supply Agreement shall mean the Amended and Restated Supply Agreement dated as of September 28, 2007 between TWCC, as seller, and NRGT, as purchaser, as amended from time to time.
TWCC Supply Agreement Assets shall mean all right, title and interest of TWCC in and to all receivables, payments, income, cash flow and revenues due, owing or paid to TWCC under the TWCC Supply Agreement, and any proceeds thereof, but only to the extent such 

36

receivables, payments, income, cash flow and revenues arise, or such amounts are paid prior to a Remedies Event, as defined in the TWCC Security Agreement.
UCC shall mean the Uniform Commercial Code as in effect in the State of Illinois.
Unfunded Liability shall mean the amount (if any) by which the present value of all vested and unvested accrued benefits under all Plans exceeds the fair market value of all assets allocable to those benefits, all determined as of the then most recent valuation date for each Plan, using PBGC actuarial assumptions for single employer plan terminations.
Unrestricted Subsidiary shall mean (a) WKFCH, upon its formation whether on or after the Closing Date, and (b) upon the acquisition by Westmoreland Parent of the Oxford GP pursuant to the Oxford Purchase Agreement, the Oxford GP and its Subsidiaries, including Oxford, (c) following the Closing Date, any Subsidiary of Westmoreland Parent that at the time of determination shall be designated an Unrestricted Subsidiary by the board of directors of Westmoreland Parent and approved by Administrative Agent, or (d) any Subsidiary of an Unrestricted Subsidiary, provided that any such Subsidiary:
(1)    is a Person with respect to which neither the Borrowers nor any of their Subsidiaries has any direct or indirect obligation (x) to subscribe for additional Equity Interests, (y) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results or (z) to guarantee or otherwise directly or indirectly provide credit support for any Indebtedness of such Unrestricted Subsidiary; and
(2)    has not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Borrower or any of its Subsidiaries.
Further, each Immaterial Subsidiary shall constitute an Unrestricted Subsidiary so long as such Subsidiary has no Indebtedness other than non-recourse Indebtedness. 
USA Patriot Act shall have the meaning set forth in Section 19.3 hereof.
US Base Rate Loan shall mean any US Loan which bears interest at or by reference to the Base Rate.
US Borrowers means each Borrower organized under the laws of the United States, any State of the United States or the District of Columbia.
US Dollar Equivalent means, with respect to any amount denominated in US Dollars, such amount of US Dollars, and with respect to any amount denominated in a currency other than US Dollars, the amount of US Dollars, as of any date of determination, into which such other currency can be converted in accordance with prevailing exchange rates, as displayed in the Bloomberg Financial Markets system, or if the Bloomberg Financial Markets system is not available, as the US Dollar Equivalent is otherwise determined by Canadian Bank in its reasonable discretion, on the applicable date.
US Dollars or $ means lawful currency of the United States of America.

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US EBITDA for any period means, without duplication, the sum of the amounts for such period of:
(1)    Net Income of the US Borrowers, plus 
(2)    in each case only to the extent (and in the same proportion) deducted in determining Net Income of the US Borrowers and with respect to the portion of Net Income of the US Borrowers attributable to any Borrower only if a corresponding amount would be permitted at the date of determination to be distributed to Westmoreland Parent by its Subsidiaries without prior approval (that has not been obtained), pursuant to the terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and governmental regulations applicable to Borrowers or their equity holders, 
(a)    Income Tax Expense of the US Borrowers (other than income taxes or income tax adjustments (whether positive or negative) attributable to Asset Sales or extraordinary gains or losses and, without duplication, permitted tax distributions, 
(b)    Amortization Expense of the US Borrowers (but only to the extent not included in Interest Expense of the US Borrowers), 
(c)    Net Asset Reclamation Accretion Expense of the US Borrowers, 
(d)    Depreciation and Depletion Expense of the US Borrowers (but only to the extent not included in Interest Expense of the US Borrowers), 
(e)    Consolidated Interest Expense (net of interest income) of the US Borrowers, 
(f)    all other non-cash items reducing Net Income of the US Borrowers (including without limitation non-cash write-offs of goodwill, intangibles and long-lived assets, but excluding any non-cash charge that results in an accrual of a reserve for cash charges in any future period including pension, retiree, medical and reclamation expenses) for such period, 
(g)    costs and expenses incurred in connection with entering into, and the initial borrowing under, this Agreement, 
(h)    costs and expenses incurred in connection with entering into the Sherritt Acquisition in an aggregate amount not to exceed (i) $500,000 for all costs and expenses incurred during the calendar quarter ending March 31, 2014, plus (ii) $8,000,000 for all costs and expenses incurred during the calendar quarter ending June 30, 2014, and
(i)    costs and expenses incurred in connection with entering into the Related Transactions in an aggregate amount not to exceed $40,000,000 for all such costs and expenses which are incurred within thirty (30) days of the Closing Date, 
in each case determined in accordance with GAAP, minus 

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(3)    (i) unfinanced Capital Expenditures of the US Borrowers during the applicable period, (ii) all dividends or other distributions by the US Borrowers to equityholders of Westmoreland Parent during the applicable period and (iii) payments during the applicable period in respect of income or franchise taxes of the US Borrowers, minus
(4)    the aggregate amount of all non-cash items, determined on a consolidated basis in accordance with GAAP, to the extent such items increased Net Income of the US Borrowers (other than the accrual of revenue, recording of receivables or the reversal of reserves in the ordinary course of business) for such period.  
US Fixed Charges shall mean for any period, without duplication, scheduled payments of principal during the applicable period with respect to all indebtedness of the US Borrowers for borrowed money, plus scheduled payments of principal during the applicable period with respect to all Capital Lease obligations of the US Borrowers plus scheduled payments of cash interest during the applicable period with respect to all indebtedness of the US Borrowers for borrowed money including Capital Lease obligations.  Notwithstanding the foregoing, interest and required payments of principal for the US Borrowers (collectively, “Principal and Interest Payments for US Borrowers”) for the quarterly period ending December 31, 2014 shall be calculated as:  Principal and Interest Payments for all US Borrowers (excluding $4,500,000 of Principal related to outstanding term debt of Westmoreland Mining until such time as such debt is paid in full) for the trailing twelve months ended December 31, 2014.
US Letter of Credit Obligations shall mean, as of any date of determination, the sum of (i) the aggregate undrawn face amount of all Letters of Credit issued on behalf of any US Borrower, and (ii) the aggregate unreimbursed amount of all drawn Letters of Credit issued on behalf of any US Borrower not already converted to Loans hereunder.  Notwithstanding the foregoing, all Letters of Credit issued hereunder on behalf of any US Borrower denominated in Canadian Dollars shall be converted to the US Dollar Equivalent for purposes of determining the aggregate amount of US Letter of Credit Obligations hereunder.
US LIBOR Loans means any LIBOR Loan made to a US Borrower.
US Loan Party shall mean a US Borrower and each other person who is or shall become primarily or secondarily liable for any of the US Obligations.
US Loans shall mean all Loans to the US Borrowers.
US Obligations shall mean any and all obligations, liabilities and indebtedness of each US Loan Party to Administrative Agent and each Lender or to any Affiliate of a Lender of any and every kind and nature pursuant to any Loan Document, howsoever created, arising or evidenced and howsoever owned, held or acquired, whether now or hereafter existing, whether now due or to become due, whether primary, secondary, direct, indirect, absolute, contingent or otherwise (including, without limitation, obligations of performance and Bank Product Obligations), whether several, joint or joint and several; provided, however, that the US Obligations shall not include Excluded Swap Obligations.  
US Revolving Loan Availability shall mean the sum of the following sublimits: (i) eighty-five percent (85%) of the face amount (less maximum discounts, credits and 

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allowances which may be taken by or granted to Account Debtors in connection therewith in the ordinary course of Borrowers’ business) of the US Borrowers’ Eligible Accounts, plus (ii) the lower of (x) twenty-five percent (25%) of the lower of cost or market value of the US Borrowers’ Eligible Inventory comprised solely of Eligible Parts Inventory of the US Borrowers and (y) Two Million Dollars ($2,000,000), plus (iii) the lower of (x) fifty percent (50%) of the lower of cost or market value of the US Borrowers’ Eligible Inventory comprised solely of raw materials and finished goods Inventory and (y) Six Million Dollars ($6,000,000); minus (iv) such other reserves as Administrative Agent elects, in its sole discretion, determined in good faith, to establish from time to time, including, without limitation, reserves with respect to Bank Products Obligations, Hedging Obligations, Canadian Priority Claims and reclamation claims relating to the mining activities of the Borrowers.  Notwithstanding the foregoing, the aggregate amount of US Revolving Loan Availability comprised of Eligible Inventory and Eligible Parts Inventory of the US Borrowers set forth in subsections (ii) and (iii) above and raw materials and finished goods Inventory shall not exceed Six Million Dollars ($6,000,000) at any time.
US Revolving Loan Commitment of any Lender shall mean the amount set forth next to such Lender’s name on Annex 1, except as such amount may be increased in accordance with Section 2.10 hereof or, during the existence of an Event of Default, be decreased by the Required Lenders in their sole discretion.
US Revolving Loans shall have the meaning specified in Section 2.1.1 hereof.
US Revolving Note shall have the meaning set forth in Section 2.5 hereof.
US Swing Line Availability means the lesser of (a) the US Swing Line Commitment Amount and (b) the amount by which the lesser of (x) US Revolving Loan Availability and (y) the total amount of the US Revolving Loan Commitment that exceeds the sum of the outstanding US Revolving Loans plus US Letter of Credit Obligations.  
US Swing Line Commitment Amount means $3,000,000, as reduced from time to time pursuant to Section 6.1, which commitment constitutes a subfacility of the Revolving Commitment of the Swing Line Lender.
US Swing Line Loan is defined in Section 2.2.
Westmoreland Power shall mean Westmoreland Power, Inc., a Delaware corporation.
Westmoreland Risk Management shall mean Westmoreland Risk Management, Ltd., a Montana corporation and wholly owned Subsidiary of Westmoreland Parent.
WKFCH shall have the meaning provided in the definition of “Initial Oxford Dropdown.”
1.2     Currency Translations.  Without limiting the other terms of this Agreement, the calculations and determinations under this Agreement shall all be calculated in US Dollars and any amount in any currency other than US Dollars shall be deemed to refer to the US Dollar Equivalent thereof, as the case may be, and all certificates delivered under this Agreement shall 

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express such calculations or determinations in US Dollars or the US Dollar Equivalent thereof, as the case may be.
1.3     Quebec Law Matters.  For all purposes pursuant to which the interpretation or construction of this Agreement may be subject to the laws of the Province of Quebec or a court or tribunal exercising jurisdiction in the Province of Quebec, (a) “personal property” shall include “movable property”, (b) “real property” shall include “immovable property”, (c) “tangible property” shall include “corporeal property”, (d) “intangible property” shall include “incorporeal property”, (e) “security interest”, “mortgage” and “lien” shall include a “hypothec”, “prior claim” and a “resolutory clause”, (f) all references to filing, registering or recording under the UCC shall include publication under the Civil Code of Quebec, (g) all references to “perfection” of or “perfected” liens or security interest shall include a reference to an “opposable” or “set up” lien or security interest as against third parties, (h) any “right of offset”, “right of setoff” or similar expression shall include a “right of compensation”, (i) “goods” shall include corporeal movable property” other than chattel paper, documents of title, instruments, money and securities, (j) an “agent” shall include a “mandatary”, (k) “construction liens” shall include “legal hypothecs”, (l) “joint and several” shall include solidary, (m) “gross negligence or willful misconduct” shall be deemed to be “intentional or gross fault”, (n) “beneficial ownership” shall include “ownership on behalf of another as mandatary”, (o) “easement” shall include “servitude”, (p) “priority” shall include “prior claim”, (q) “survey” shall include “certificate of location and plan”, (r) “state” shall include “province”, (s) “fee simple title” shall include “absolute ownership”.  The parties hereto confirm that it is their wish that this Agreement and any other document executed in connection with the transactions contemplated herein be drawn up in the English language only and that all other documents contemplated thereunder or relating thereto, including notices, may also be drawn up in the English language only.  Les parties aux présentes confirment que c’est leur volonté que cette convention et les autres documents de crédit soient rédigés en langue anglaise seulement et que tous les documents, y compris tous avis, envisagés par cette convention et les autres documents peuvent être rédigés en langue anglaise seulement.  
SECTION 2
LOANS
2.1     Revolving Loans.  
2.1.1     US Revolving Loans.  Subject to the terms and conditions of this Agreement and the other Loan Documents, prior to the Maturity Date, each Lender shall, absent the occurrence and continuance of an Event of Default, make its Pro Rata Share of revolving loans and advances (the “US Revolving Loans”) in an amount up to its US Revolving Loan Commitment upon request of the Representative; provided that the aggregate unpaid principal balance of the US Revolving Loans plus the amount of any US Swing Line Loans outstanding at such time shall not at any time exceed the lesser of (i) the US Revolving Loan Availability minus the US Letter of Credit Obligations and (ii) the aggregate amount of the US Revolving Loan Commitment minus the US Letter of Credit Obligations (the “Maximum US Available Loan Amount”).  All US Revolving Loans shall be made in US Dollars and shall be utilized solely for US Operations.

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2.1.2     Canadian Revolving Loans.  Subject to the terms and conditions of this Agreement and the other Loan Documents, prior to the Maturity Date, each Lender shall, absent the occurrence and continuance of an Event of Default, make its Pro Rata Share of revolving loans and advances (the “Canadian Revolving Loans”) in an amount up to its Canadian Revolving Loan Commitment upon request of the Representative; provided that the aggregate unpaid principal balance of the Canadian Revolving Loans plus the amount of any Canadian Swing Line Loans outstanding at such time shall not at any time exceed the lesser of (i) the Canadian Revolving Loan Availability minus the Canadian Letter of Credit Obligations and (ii) the aggregate amount of the Canadian Revolving Loan Commitment minus the Canadian Letter of Credit Obligations (the “Maximum Canadian Available Loan Amount”).  All Canadian Revolving Loans shall be made in US Dollars and shall be utilized solely for Canadian Operations.
2.1.3     Repayments of Overadvances; Overadvances.  
(a)The aggregate unpaid principal balance of the US Revolving Loans plus the amount of US Swing Line Loans outstanding at any such time shall not at any time exceed the lesser of (i) US Revolving Loan Availability minus the US Letter of Credit Obligations and (ii) the aggregate amount of the US Revolving Loan Commitment minus the US Letter of Credit Obligations.  
(b)The aggregate unpaid principal balance of the Canadian Revolving Loans plus the amount of any Canadian Swing Line Loans outstanding at any such time shall not at any time exceed the lesser of (i) Canadian Revolving Loan Availability minus the Canadian Letter of Credit Obligations and (ii) the aggregate amount of the Canadian Revolving Loan Commitment minus the Canadian Letter of Credit Obligations.
If at any time the principal amount of the outstanding Revolving Loans for either the US Revolving Loan Commitment or the Canadian Revolving Loan Commitment exceeds either the US or Canadian Revolving Loan Availability, as applicable, or the total amount of such Revolving Loan Commitment, in each case, minus the applicable Letter of Credit Obligations under such Revolving Loan Commitment, or any portion of the Revolving Loans and Letter of Credit Obligations exceeds any applicable sublimit within the Revolving Loan Availability for such Revolving Loan Commitment, Borrowers shall immediately, and without the necessity of demand by Administrative Agent, pay to Administrative Agent such amount as may be necessary to eliminate such excess and Administrative Agent shall apply such payment to the applicable Revolving Loans outstanding under the applicable Revolving Loan Commitment to eliminate such excess; provided that Administrative Agent may, in its sole discretion, permit such excess (the “Overadvance”) to remain outstanding and continue to cause Revolving Loans to be advanced to Borrowers (including by the Swing Line Lender) without the consent of any Lender for a period of up to thirty (30) calendar days, so long as (i) the amount of the Overadvances does not exceed at any time Five Million Dollars ($5,000,000) in the aggregate, (ii) the aggregate outstanding principal balance of the US Revolving Loans or Canadian Revolving Loans, as applicable, does not exceed the total amount of the applicable Revolving Loan Commitment, and (iii) Administrative Agent has not been notified by Required Lenders to cease making such Revolving Loans.  If any Overadvance is not repaid in full within thirty (30) days after the initial 

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occurrence of such Overadvance, no future advances may be made to Borrower without the consent of all Lenders until the Overadvance is repaid in full.
2.1.4     Agent Advances.  Subject to the limitations set forth in this subsection, Administrative Agent is hereby authorized by Borrowers and Lenders, from time to time in Administrative Agent’s sole discretion (and subject to the terms of this paragraph, the making of each Agent Advance shall be deemed to be a request by Borrowers and the Lenders to make such Agent Advance), (i) after the occurrence of an Event of Default or an event which, with the passage of time or giving of notice, will become an Event of Default, or (ii) at any time that any of the other applicable conditions precedent set forth in Section 17.2 hereof have not been satisfied (including without limitation the conditions precedent that the aggregate principal amount of all outstanding Revolving Loans and Letter of Credit Obligations under the applicable Revolving Loan Commitment do not exceed the Revolving Loan Availability under such Revolving Loan Commitment), to make Revolving Loans to Borrowers on behalf of Lenders which Administrative Agent, in its sole discretion, determined in good faith deems necessary or desirable (A) to preserve or protect the business conducted by any Loan Party, the Collateral, or any portion thereof, (B) to enhance the likelihood of, or maximize the amount of, repayment of the Loans and other Obligations, or (C) to pay any amount chargeable to any Borrower pursuant to the terms of this Agreement or the other Loan Documents (any of the advances described in this subsection being hereafter referred to as “Agent Advances”); provided, that (x) the outstanding aggregate amount of Agent Advances does not exceed at any time Five Million Dollars ($5,000,000), (y) the aggregate outstanding principal balance of the Revolving Loans and Letter of Credit Obligations under the applicable Revolving Loan Commitment does not exceed the total aggregate amount of the applicable Revolving Loan Commitment, and (z) Administrative Agent has not been notified by Required Lenders to cease making such Agent Advances.  For all purposes in this Agreement, Agent Advances shall be treated as Revolving Loans under the applicable Revolving Loan Commitment specified by Administrative Agent and shall constitute Base Rate Loans.  Agent Advances shall be repaid on demand by Administrative Agent.  
2.2     Swing Line Facilities.
2.2.1     US Swing Line Facility.
(a)Administrative Agent shall notify the Swing Line Lender upon Administrative Agent’s receipt of any Notice of Borrowing requesting a US Swing Line Loan.  Subject to the terms and conditions hereof, the Swing Line Lender may, in its sole discretion, make available from time to time until the Maturity Date, advances under the US Revolving Loan Commitment (each, a “US Swing Line Loan”) in accordance with any such notice, notwithstanding that after making a requested US Swing Line Loan, the sum of the Swing Line Lender’s Pro Rata Share of the US Revolving Loans, participation interests in US Letters of Credit and all outstanding US Swing Line Loans, may exceed the Swing Line Lender’s Pro Rata Share of the US Revolving Loan Commitment.  The provisions of this Section 2.2.1 shall not relieve Lenders of their obligations to make US Revolving Loans under Section 2.1.1; provided that if the Swing Line Lender makes a US Swing Line Loan pursuant to any such notice, such US Swing Line Loan shall be in lieu of any US Revolving Loan that otherwise may be made by the Lenders pursuant to such notice.  The aggregate amount of US Swing Line Loans outstanding 

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shall not exceed at any time US Swing Line Availability.  Until the Maturity Date, Borrowers may from time to time borrow, repay and reborrow under this Section 2.2.1.  Each US Swing Line Loan shall be made pursuant to a Notice of Borrowing delivered by US Borrowers to Administrative Agent in accordance with Section 2.3.2.  Any such notice must be given no later than 11:00 A.M., Chicago time, on the Business Day of the proposed US Swing Line Loan.  Unless the Swing Line Lender has received at least one Business Day’s prior written notice from the Required Lenders instructing it not to make a US Swing Line Loan, the Swing Line Lender shall, notwithstanding the failure of any condition precedent set forth in Section 17.2, be entitled to fund that US Swing Line Loan, and to have Lenders settle in accordance with Section 2.8(a) or purchase participating interests in accordance with Section 2.8(b).  Notwithstanding any other provision of this Agreement or the other Loan Documents, each US Swing Line Loan shall constitute a Base Rate Loan.  US Borrowers shall repay the aggregate outstanding principal amount of each US Swing Line Loan upon demand therefor by Administrative Agent. 
(b)The entire unpaid balance of each US Swing Line Loan and all other noncontingent Obligations shall be immediately due and payable in full in immediately available funds on the Maturity Date if not sooner paid in full.
2.2.2     Canadian Swing Line Facility.
(a)Administrative Agent shall notify the Swing Line Lender upon Administrative Agent’s receipt of any Notice of Borrowing requesting a Canadian Swing Line Loan.  Subject to the terms and conditions hereof, the Swing Line Lender may, in its sole discretion, make available from time to time until the Maturity Date, advances under the Canadian Revolving Loan Commitment (each, a “Canadian Swing Line Loan”) in accordance with any such notice, notwithstanding that after making a requested Canadian Swing Line Loan, the sum of the Swing Line Lender’s Pro Rata Share of the Canadian Revolving Loans, participation interests in Canadian Letters of Credit and all outstanding Canadian Swing Line Loans, may exceed the Swing Line Lender’s Pro Rata Share of the Canadian Revolving Loan Commitment.  The provisions of this Section 2.2.2 shall not relieve Lenders of their obligations to make Canadian Revolving Loans under Section 2.1.2; provided that if the Swing Line Lender makes a Canadian Swing Line Loan pursuant to any such notice, such Canadian Swing Line Loan shall be in lieu of any Canadian Revolving Loan that otherwise may be made by the Lenders pursuant to such notice.  The aggregate amount of Canadian Swing Line Loans outstanding shall not exceed at any time Canadian Swing Line Availability.  Until the Maturity Date, Borrowers may from time to time borrow, repay and reborrow under this Section 2.2.2.  Each Canadian Swing Line Loan shall be made pursuant to a Notice of Borrowing delivered by Canadian Borrowers to Administrative Agent in accordance with Section 2.3.2.  Any such notice must be given no later than 11:00 A.M., Chicago time, on the Business Day of the proposed Canadian Swing Line Loan.  Unless the Swing Line Lender has received at least one Business Day’s prior written notice from the Required Lenders instructing it not to make a Canadian Swing Line Loan, the Swing Line Lender shall, notwithstanding the failure of any condition precedent set forth in Section 17.2, be entitled to fund that Canadian Swing Line Loan, and to have Lenders settle in accordance with Section 2.8(a) or purchase participating interests in accordance with Section 2.8(b).  Notwithstanding any other provision of this Agreement or the other Loan Documents, each Canadian Swing Line Loan shall constitute a Base Rate Loan.  

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Canadian Borrowers shall repay the aggregate outstanding principal amount of each Canadian Swing Line Loan upon demand therefor by Administrative Agent. 
(b)The entire unpaid balance of each Canadian Swing Line Loan and all other noncontingent Obligations shall be immediately due and payable in full in immediately available funds on the Maturity Date if not sooner paid in full.
2.3     Loan Procedures.  
2.3.1     Various Types of Loans.  Each Revolving Loan shall be either Base Rate Loans or LIBOR Loans (each a “type” of Loan), as Borrowers shall specify in the related notice of borrowing or conversion pursuant to Section 2.3.2 or 2.3.3.  LIBOR Loans having the same Interest Period which expire on the same day are sometimes called a “Group” or collectively “Groups.”  Base Rate Loans and LIBOR Loans may be outstanding at the same time, provided that not more than four different Groups of LIBOR Loans shall be outstanding at any one time.
2.3.2     Borrowing Procedures.  
(a)The Representative shall give written notice (each such written notice, a “Notice of Borrowing”) substantially in the form of Exhibit B or telephonic notice (followed immediately by a Notice of Borrowing) to Administrative Agent of each proposed Base Rate or LIBOR borrowing not later than (a) in the case of a Base Rate borrowing, 11:00 A.M., Chicago time, on the proposed date of such borrowing, and (b) in the case of a LIBOR borrowing, 11:00 A.M., Chicago time, at least three (3) Business Days prior to the proposed date of such borrowing.  Each such notice shall be effective upon receipt by Administrative Agent, shall be irrevocable, and shall specify the date, amount and type of borrowing, in the case of a LIBOR borrowing, the initial Interest Period therefor, whether such Revolving Loan will be a Canadian Revolving Loan or a US Revolving Loan, and, for purposes of all borrowings under the Canadian Revolving Loan Commitment, whether the proceeds of such Canadian Revolving Loan will be funded to the Canadian Operating Account or to the Canadian Domestic Operating Account.  Each borrowing shall be on a Business Day.  Each LIBOR borrowing shall be in an aggregate amount of at least $1,000,000 and an integral multiple of at least $1,000,000.
(b)Borrowers hereby authorize Administrative Agent in its sole discretion, to advance: (i) US Revolving Loans as Base Rate Loans to pay any Obligations (whether principal, interest, fees or other charges when due), and any such Obligations becoming due shall be deemed a request for a Base Rate borrowing of a US Revolving Loan on the due date, in the amount of such Obligations; and (ii) Canadian Revolving Loans as Canadian Base Rate Loans to pay any Canadian Obligations whether principal, interest, fees or other charges when due), and any such Canadian Obligations becoming due shall be deemed a request for a Base Rate borrowing of a Canadian Revolving Loan on the due date, in the amount of such Canadian Obligations.  The proceeds of such US Revolving Loans shall be disbursed as direct payment of the relevant Obligation as determined by Administrative Agent.  The proceeds of such Canadian Revolving Loans shall be disbursed as direct payment of the relevant Canadian Obligation.  In addition, Administrative Agent may, at its option, charge such Obligations against any operating, investment or other account of any Borrower maintained with Administrative Agent or any of its Affiliates.

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2.3.3     Conversion and Continuation Procedures.  (a) Subject to Section 2.3.1, the Representative may, upon irrevocable written notice to Administrative Agent in accordance with clause (b) below:
(i)elect, as of any Business Day, to convert any Loans (or any part thereof in an aggregate amount not less than $1,000,000 and a higher integral multiple of $1,000,000) into Loans of the other type; or
(ii)elect, as of the last day of the applicable Interest Period, to continue any LIBOR Loans having Interest Periods expiring on such day (or any part thereof in an aggregate amount not less than $1,000,000 or a higher integral multiple of $1,000,000) for a new Interest Period;
provided that after giving effect to any prepayment, conversion or continuation, the aggregate principal amount of each Group of LIBOR Loans under the applicable Revolving Loan Commitment under which such LIBOR Loan was advanced shall be at least $1,000,000 and an integral multiple of $1,000,000.
(b)The Representative shall give written notice (each such written notice, a “Notice of Conversion/Continuation”) substantially in the form of Exhibit C or telephonic notice (followed immediately by a Notice of Conversion/Continuation) to Administrative Agent of each proposed conversion or continuation not later than (i) in the case of conversion into Base Rate Loans, 11:00 A.M., Chicago time, on the proposed date of such conversion, and (ii) in the case of conversion into or continuation of LIBOR Loans, 11:00 A.M., Chicago time, at least three (3) Business Days prior to the proposed date of such conversion or continuation, specifying in each case:
(i)the proposed date of conversion or continuation;
(ii)the aggregate amount of Loans to be converted or continued;
(iii)the type of Loans resulting from the proposed conversion or continuation; and
(iv)in the case of conversion into, or continuation of, LIBOR Loans, the duration of the requested Interest Period therefor.
(c)If upon the expiration of any Interest Period applicable to LIBOR Loans, Representative has failed to select timely a new Interest Period to be applicable to such LIBOR Loans, Borrowers shall be deemed to have elected to convert such LIBOR Loans into Base Rate Loans effective on the last day of such Interest Period.
Any conversion of a LIBOR Loan on a day other than the last day of an Interest Period therefor shall be subject to Section 4.2.4.
2.4     Repayments.  The Revolving Loans and all other Obligations shall be repaid on the Maturity Date.  

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2.4.1     Making of Payments.  All payments of principal or interest on the Note(s), and of all fees, shall be made by Borrowers to Administrative Agent in immediately available funds in US Dollars at the office specified by Administrative Agent not later than noon, Chicago time, on the date due; and funds received after that hour shall be deemed to have been received by Administrative Agent on the following Business Day.  Subject to Section 2.7 and Section 2.8 hereof,  Administrative Agent shall promptly remit to each Lender its share of all such payments received in collected funds by Administrative Agent for the account of such Lender. All payments under Section 4.2.1 shall be made by Borrowers directly to the Lender entitled thereto without setoff, counterclaim or other defense.
2.4.2     Application of Certain Payments.  So long as no Default or Event of Default has occurred and is continuing, payments matching specific scheduled payments then due shall be applied to those scheduled payments under each applicable Note.  After the occurrence and during the continuance of a Default or an Event of Default, all amounts collected or received by Administrative Agent or any Lender as proceeds from the sale of, or other realization upon, all or any part of the Collateral shall be applied as Administrative Agent shall determine in its discretion or, in the absence of a specific determination by Administrative Agent in the order set forth in Section 16.2.  Concurrently with each remittance to any Lender of its share of any such payment, Administrative Agent shall advise such Lender as to the application of such payment.
2.4.3     Setoff.  With respect to all amounts owing by the Borrowers and each other Loan Party, each Borrower, for itself and each other Loan Party, agrees that Administrative Agent and each Lender have all rights of set-off and bankers’ lien provided by applicable law, and in addition thereto, each Borrower, for itself and each other Loan Party, agrees that at any time any Event of Default exists, Administrative Agent and each Lender may apply to the payment of any Obligations of Borrowers and each other Loan Party hereunder, whether or not then due, any and all balances, credits, deposits, accounts or moneys of Borrowers and each other Loan Party then or thereafter with Administrative Agent or such Lender.  The exercise of the right to setoff shall be subject to the provisions of Section 18.12.
2.4.4     Proration of Payments.  Except as provided in Section 2.7, if any Lender shall obtain any payment or other recovery (whether voluntary, involuntary, by application of offset or otherwise), on account of (a) principal of or interest on any Loan (but excluding (i) any payment pursuant to Section 4.2 or 19.1 and (ii) payments of interest on any Affected Loan) or (b) its participation in any Letter of Credit in excess of its applicable Pro Rata Share of payments and other recoveries obtained by all Lenders on account of principal of and interest on the Loans (or such participation) then held by them, then such Lender shall purchase from the other Lenders such participations in the Loans (or sub-participations in Letters of Credit) held by them as shall be necessary to cause such purchasing Lender to share the excess payment or other recovery ratably with each of the other Lenders; provided that if all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing Lender, the purchase shall be rescinded and the purchase price restored to the extent of such recovery.
2.5     Notes.  The Loans shall, in each Lender’s sole discretion, be evidenced by one or more promissory notes in form and substance satisfactory to such Lender evidencing (i) the US 

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Revolving Loans made under the US Revolving Loan Commitment (each a “US Revolving Note”) and (ii) the Canadian Revolving Loans made under the Canadian Revolving Loan Commitment (each a “Canadian Revolving Note”).  However, if such Loans are not so evidenced, such Loans may be evidenced solely by entries upon the books and records maintained by Administrative Agent.
2.6     Recordkeeping.  Administrative Agent shall record in its records the date and amount of each Loan made by Administrative Agent, each repayment or conversion thereof and, in the case of each LIBOR Loan, the dates on which each Interest Period for such Loan shall begin and end.  The aggregate unpaid principal amount so recorded shall be rebuttably presumptive evidence of the principal amount of the Loans owing and unpaid.  The failure to so record any such amount or any error in so recording any such amount shall not, however, limit or otherwise affect the Obligations of Borrowers hereunder or under any Note to repay the principal amount of the Loans hereunder, together with all interest accruing thereon.
2.7     Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:
2.7.1     fees shall cease to accrue on the unfunded portion of the Revolving Loan Commitment of such Defaulting Lender pursuant to Section 4.3.2 and the Borrower shall not be required to pay any such fees to such Defaulting Lender;
2.7.2     if any Swing Line Loans, Agent Advances or Letters of Credit are outstanding at the time that a Lender becomes a Defaulting Lender then:
(a)all or any part of the Defaulting Lender’s obligation to participate in Swing Line Loans, Agent Advances and participate in Letters of Credit shall be reallocated among the non-Defaulting Lenders in accordance with their respective Pro Rata Shares as determined pursuant to clause (a) of the definition of “Pro Rata Share” but only to the extent (x) the sum of all non-Defaulting Lenders’ Revolving Loans and participations in Letter of Credit Obligation plus such Defaulting Lender’s obligation to participate in Swing Line Loans, Agent Advances and participate in Letters of Credit does not exceed the total of all non-Defaulting Lenders’ Revolving Loan Commitments and (y) the conditions set forth in Section 17.2 are satisfied at such time; and 
(b)if the reallocation described in clause (a) above cannot, or can only partially, be effected, the Borrowers shall within three Business Days following notice by Administrative Agent (x) first, prepay such Defaulting Lender’s outstanding obligation to participate in Swing Line Loans and Agent Advances and (y) second, Cash Collateralize such Defaulting Lender’s obligation to participate in Letters of Credit (after giving effect to any partial reallocation pursuant to clause (a) above) in accordance with the procedures set forth in Section 3.4 for so long as such obligation to participate in Letters of Credit is outstanding; 
(c)if the Borrowers Cash Collateralize any portion of such Defaulting Lender’s obligation to participate in Letters of Credit pursuant to Section 3.4, the Borrowers shall not be required to pay any fees to such Defaulting Lender pursuant to Section 3.1 with 

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respect to such Defaulting Lender’s obligation to participate in Letters of Credit during the period such Defaulting Lender’s obligation to participate in Letters of Credit is Cash Collateralized;
(d)if the obligation to participate in Letters of Credit of the non-Defaulting Lenders is reallocated pursuant to this Section 2.7.2, then the fees payable to the Lenders pursuant to Section 4.3 and shall be adjusted in accordance with such non-Defaulting Lenders’ Pro Rata Shares (as determined pursuant to clause (a) of the definition of “Pro Rata Share”); or 
(e)if any Defaulting Lender’s obligation to participate in Letters of Credit is neither Cash Collateralized nor reallocated pursuant to Section 2.7.2, then, without prejudice to any rights or remedies of any L/C Issuer or any Lender hereunder, all letter of credit fees payable under Section 3.1 with respect to such Defaulting Lender’s obligation to participate in Letters of Credit shall be payable to the applicable L/C Issuer until such obligation to participate in Letters of Credit is cash collateralized and/or reallocated; and
2.7.3     so long as any Lender is a Defaulting Lender, the Swing Line Lender shall not be required to fund any Swing Line Loan and no L/C Issuer shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the Revolving Loan Commitments of the non-Defaulting Lenders and/or Cash Collateral will be provided by the Borrowers in accordance with Section 2.4, and participating interests in any such newly issued or increased Letter of Credit or newly made Swing Line Loan shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.7.2(a) (and Defaulting Lenders shall not participate therein).
2.7.4     If Administrative Agent, Borrowers, the applicable L/C Issuer(s) and the Swing Line Lender each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the obligations to participate in Swing Line Loans, Agent Advances and the obligations to participate in Letters of Credit of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Revolving Loan Commitments and on such date such Lender shall purchase at par such of the Loans of the other Lenders (other than Swing Line Loans) as Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Pro Rata Share (as determined pursuant to clause (a) of the definition of “Pro Rata Share”).
2.7.5     Any amount payable to a Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender pursuant to Section 2.8 or Section 2.4.4 but excluding Section 4.2.7(b) shall, in lieu of being distributed to such Defaulting Lender, be retained by Administrative Agent in a segregated account and, subject to any applicable requirements of law, be applied at such time or times as may be determined by Administrative Agent (i) first, to the payment of any amounts owing by such Defaulting Lender to Administrative Agent hereunder, (ii) second, pro rata, to the payment of any amounts owing by such Defaulting Lender to the L/C Issuer(s) or Swing Line Lender hereunder, (iii) third, to the funding of any Revolving Loan or the funding or Cash Collateralization of any participating interest in any Swing Line Loan or Agent Advance, any amounts which may be due pursuant to Section 2.8 or any Letter of Credit in respect of which such Defaulting Lender has failed to fund its portion thereof as required by 

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this Agreement, as determined by Administrative Agent, (iv) fourth, if so determined by Administrative Agent and the Borrowers, held in such account as Cash Collateral for future funding obligations of the Defaulting Lender under this Agreement, (v) fifth, pro rata, to the payment of any amounts owing to the Borrowers or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by the Borrowers or any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement, and (vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided, that if such payment is (x) a prepayment of the principal amount of any Loans or reimbursement obligations in respect of draws under Letters of Credit with respect to which the L/C Issuer has funded its participation obligations and (y) made at a time when the conditions set forth in Section 17.2 are satisfied, such payment shall be applied solely to prepay the Loans of, and reimbursement obligations owed to, all Revolving Lenders that are not Defaulting Lenders pro rata prior to being applied to the prepayment of any Loans, or reimbursement obligations owed to, any Defaulting Lender.
2.7.6     No Defaulting Lender shall have any right to approve or disapprove any amendment, waiver, consent or any other action the Lenders or the Required Lenders have taken or may take hereunder (including any consent to any amendment or waiver pursuant to Section 20.1), provided that (a) the Revolving Loan Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (b) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender in any materially adverse manner relative to other affected Lenders shall require the consent of such Defaulting Lender.
2.8     Settlements.
(a)On a weekly basis (or more frequently if requested by Administrative Agent or Swing Line Lender), and on the last Business Day of each calendar quarter (each, a “Settlement Date”), Administrative Agent shall provide each Lender with a statement of the outstanding balance of the Revolving Loans and Swing Line Loans under each Revolving Loan Commitment as of the end of the Business Day immediately preceding the Settlement Date (the “Pre-Settlement Determination Date”) and the current balance of the Revolving Loans funded by each Lender (whether made directly by such Lender to Borrowers or constituting a settlement by such Lender of a previous Swing Line Loan or Agent Advance under each Revolving Loan Commitment), in each case in US Dollars or the US Dollar Equivalent thereof.  If such statement discloses that such Lender’s current balance of the Revolving Loans as of the Pre-Settlement Determination Date exceeds such Lender’s Pro Rata Share of  the aggregate of the Revolving Loans outstanding as of the Pre-Settlement Determination Date, then Administrative Agent shall, on the Settlement Date, transfer, by wire transfer, the net amount due to such Lender in accordance with such Lender’s instructions, and if such statement discloses that such Lender’s current balance of the aggregate of the Revolving Loans, Swing Line Loans and Agent Advances as of the Pre-Settlement Determination Date is less than such Lender’s Pro Rata Share of the Revolving Loans outstanding as of the Pre-Settlement Determination Date, then Borrowers shall be deemed to have requested a Revolving Loan and such Lender shall, on the Settlement Date make a Revolving Loan, transfer, by wire transfer the net amount due to Administrative Agent or Swing Line Lender, as applicable in accordance with Administrative Agent’s instructions to repay the Swing Line Loan or Agent Advances under the applicable Revolving Loan 

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Commitment.  In addition to the foregoing, for purposes of all Letters of Credit denominated in Canadian Dollars, Canadian Bank shall provide Administrative Agent with the prevailing exchange rate for the conversion of Canadian Dollars into US Dollars on Thursday of each calendar week and on the last Business Day of each calendar quarter effective as of such Business Day as displayed in the Bloomberg Financial Markets system, or if the Bloomberg Financial Markets system is not available, as the US Dollar Equivalent is otherwise determined by Canadian Bank in its reasonable discretion.
(b)If, prior to settling pursuant to clause (a) above, one of the events described in Section 15.6 or 15.7 has occurred, then each Lender shall, on the date such Revolving Loan was to have been made for the benefit of Borrowers to settle outstanding Swing Line Loans or Agent Advances, purchase from the Swing Line Lender or Administrative Agent, as applicable, an undivided participation interest in the Swing Line Loan or Agent Advance in an amount equal to its Pro Rata Share of such Swing Line Loan or Agent Advance.  Upon request, each Lender shall promptly transfer to the Swing Line Lender, in immediately available funds, the amount of its participation interest.
(c)Each Lender’s obligation to make Revolving Loans in accordance with Section 2.8(a) and to purchase participation interests in accordance with Section 2.8(b) shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such Lender may have against the Swing Line Lender or Administrative Agent, Borrowers or any other Person for any reason whatsoever; (ii) the occurrence or continuance of any Default or Event of Default; (iii) any inability of Borrowers to satisfy the conditions precedent to borrowing set forth in this Agreement at any time or (iv) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.  If and to the extent any Lender shall not have made such amount available to Administrative Agent or the Swing Line Lender, as applicable, by 2:00 P.M., Chicago time, the amount required pursuant to Sections 2.1 or 2.8(b), as the case may be, on the Business Day on which such Lender receives notice from Administrative Agent of such payment or disbursement (it being understood that any such notice received after noon, Chicago time, on any Business Day shall be deemed to have been received on the next following Business Day), such Lender agrees to pay interest on such amount to Administrative Agent for the Swing Line Lender’s account forthwith on demand, for each day from the date such amount was to have been delivered to Administrative Agent to the date such amount is paid, at a rate per annum equal to (a) for the first three days after demand, the Federal Funds Rate from time to time in effect and (b) thereafter, the Base Rate from time to time in effect.
2.9     Commitments Several.  The failure of any Lender to make a requested loan on any date shall not relieve any other Lender of its obligation (if any) to make a Loan on such date, but no Lender shall be responsible for the failure of any other Lender to make any Loan to be made by such other Lender.
2.10     Incremental Facilities.  
2.10.1     The Representative will be entitled at any time and from time to time no later than 180 days prior to the Maturity Date to deliver to Administrative Agent a request (an “Increase Request”) to increase the Canadian Revolving Loan Commitment or the US 

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Revolving Loan Commitment (each, a “Facility Increase”), in an aggregate principal amount (i) for all such Facility Increases of the Canadian Revolving Loan Commitment of up to $20,000,000 and (ii) for all Facility Increases of the US Revolving Loan Commitment of up to $30,000,000; provided that (a) no Default or Event of Default exists immediately prior to or after giving effect thereto, (b) the terms and documentation in respect of a Facility Increase will be satisfactory to Administrative Agent, (c) no Facility Increase shall be effective earlier than ten (10) Business Days after the delivery of the Increase Request to Administrative Agent, (d) no Lender will be required or otherwise obligated to provide any such Facility Increase, (e) any such Facility Increase shall be in a minimum principal amount of $10,000,000, (f) any such Facility Increase shall have a maturity no later than the Maturity Date, and (g) prior to consummating a Facility Increase, the Representative shall have delivered to Administrative Agent a pro forma Compliance Certificate demonstrating that, upon giving effect to such Facility Increase, on a pro forma basis, the Borrowers would be in compliance with the financial covenants set forth in Section 14 as of the most recent Fiscal Quarter for which the Borrowers have delivered financial statements pursuant to Section 9.3.  Facility Increases will be secured on a pari passu basis by the same Collateral as the existing Revolving Loan Commitments.  Nothing in this Agreement shall be construed to obligate any Lender to participate in any Facility Increase.
2.10.2     Administrative Agent shall promptly notify each Lender of the proposed Facility Increase (whether US or Canadian) and of the proposed terms and conditions therefor agreed between the Representative and Administrative Agent.  Each such Lender may, in its sole discretion, commit to participate in such Facility Increase by forwarding its commitment thereto to Administrative Agent in form and substance satisfactory to Administrative Agent.  In consultation with the Representative, Administrative Agent shall allocate the commitments to be made as part of the Facility Increase to the Lenders from which it has received commitments.  If Administrative Agent does not receive sufficient commitments from existing Lenders to effectuate the Facility Increase, it, in consultation with the Representative, may allocate unsubscribed amounts to any other Person (other than any Loan Party or any Affiliates thereof) acceptable to Administrative Agent, Borrowers and any lender providing commitments for such portion of the applicable Facility Increase.
2.10.3     Each Facility Increase shall become effective on a date agreed by the Representative and Administrative Agent (a “Facility Increase Date”), subject to the satisfaction of the conditions precedent set forth in Section 17.2.
2.10.4     Each Facility Increase shall be evidenced by an amendment or supplement to this Agreement executed by the Borrowers (and consented to by all other Loan Parties) and Administrative Agent and each Lender or Person participating in such Facility Increase (collectively, the “Participating Lenders”), together with such other agreements, certificates and opinions as reasonably requested by Administrative Agent.  The applicable yield on the Facility Increases will be determined by the Representative and the Lenders providing such Facility Increases at the time such Facility Increases are funded; provided that if the total yield on such Facility Increases would exceed the applicable current yield for the applicable Revolving Commitment subject to such increase, the margin for such Revolving Loan Commitment (including any prior Facility Increases) shall be automatically increased to equal the total yield on the new Facility Increases.  Upon closing of the Facility Increase, new Participating Lenders 

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shall be deemed to be Lenders hereunder, and Revolving Loans made pursuant to any Facility Increase shall for all purposes be deemed to be Loans hereunder.
SECTION 3
LETTERS OF CREDIT
3.1     General Terms.  Subject to the terms and conditions of this Agreement and the other Loan Documents, prior to the Maturity Date for the Revolving Loans, Administrative Agent shall, absent the occurrence and continuance of an Event of Default, from time to time cause to be issued by an L/C Issuer, upon Representative’s request, commercial and/or standby Letters of Credit which may be denominated in US Dollars or Canadian Dollars under the US Revolving Loan Commitment or the Canadian Revolving Loan Commitment as selected by the Borrowers; provided, that the aggregate undrawn face amount of all (i) US Letters of Credit shall at no time exceed Thirty Million and No/100 Dollars ($30,000,000) and (ii) Canadian Letters of Credit shall at no time exceed Twenty Million Dollars ($20,000,000).  Payments made by the L/C Issuer to any Person on account of any Letter of Credit shall be immediately payable by Borrowers without notice, presentment or demand and Borrowers agree that each payment made by the L/C Issuer in respect of a Letter of Credit shall constitute a request by Borrowers for a Loan to reimburse L/C Issuer.  In the event such Loan is not advanced by Administrative Agent, Swingline Lender or Lenders for any reason, such reimbursement obligations (whether owing to the L/C Issuer or Administrative Agent if Administrative Agent is not the L/C Issuer) shall become part of the Obligations hereunder and shall bear interest at the rate then applicable to Revolving Loans constituting Base Rate Loans until repaid.  Borrowers shall remit to Administrative Agent, for the ratable benefit of Lenders having Revolving Loan Commitments, a Letter of Credit fee equal to three percent (3.0%) per annum on the undrawn face amount of each Letter of Credit outstanding, which fee shall be payable upon the issuance of such Letter of Credit.  In addition to the foregoing, Borrowers shall pay to the L/C Issuer, for its own account, a Letter of Credit fronting fee of 0.50% per annum on the face amount of each Letter of Credit denominated in Canadian Dollars and 0.25% per annum on the face amount of each Letter of Credit denominated in US Dollars.  Upon the occurrence of an Event of Default and during the continuance thereof, the Letter of Credit fee shall be increased to an amount equal to two percent (2%) per annum in excess of the Letter of Credit fee otherwise payable thereon, which fee shall be payable on demand.  Said fee shall be calculated on the basis of a 360 day year.  Borrowers shall also pay on demand the normal and customary administrative charges of L/C Issuer for the issuance, amendment, negotiation, renewal or extension of any Letter of Credit.  In the event of any inconsistency between the terms of the Letter of Credit Agreement, any L/C Application and the terms of this Agreement, the terms of this Agreement shall control.
3.2     Letter of Credit Procedures.
3.2.1     L/C Applications.  Borrowers shall execute and deliver to the L/C Issuer the Letter of Credit Agreement from time to time in effect.  Borrowers shall give notice to Administrative Agent and the L/C Issuer of the proposed issuance of each Letter of Credit on a Business Day which is at least three Business Days (or such lesser number of days as the L/C Issuer and Administrative Agent shall agree in any particular instance in their sole discretion) prior to the proposed date of issuance of such Letter of Credit.  Each such notice shall be 

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accompanied by an L/C Application, duly executed by Borrowers and in all respects satisfactory to the L/C Issuer, together with such other documentation as the L/C Issuer may request in support thereof, it being understood that each L/C Application shall specify, among other things, the date on which the proposed Letter of Credit is to be issued, the expiration date of such Letter of Credit (which shall not be later than the scheduled Termination Date (unless such Letter of Credit is Cash Collateralized)), whether such Letter of Credit is to be denominated in US Dollars or Canadian Dollars, whether such Letter of Credit is to be transferable in whole or in part and whether such Letter of Credit is to be issued under the US Revolving Loan Commitment or the Canadian Revolving Loan Commitment.  Any Letter of Credit outstanding after the scheduled Maturity Date which is Cash Collateralized for the benefit of the L/C Issuer shall be the sole responsibility of the L/C Issuer.  
3.2.2     Reimbursement Obligations Unconditional.  Borrowers’ reimbursement obligations hereunder shall be irrevocable and unconditional under all circumstances, including (a) any lack of validity or enforceability of any Letter of Credit, this Agreement or any other Loan Document, (b) the existence of any claim, set-off, defense or other right which any Loan Party may have at any time against a beneficiary named in a Letter of Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), the L/C Issuer or any other Person, whether in connection with any Letter of Credit, this Agreement, any other Loan Document, the transactions contemplated herein or any unrelated transactions (including any underlying transaction between any Loan Party and the beneficiary named in any Letter of Credit), (c) the validity, sufficiency or genuineness of any document which the L/C Issuer has determined complies on its face with the terms of the applicable Letter of Credit, even if such document should later prove to have been forged, fraudulent, invalid or insufficient in any respect or any statement therein shall have been untrue or inaccurate in any respect, or (d) the surrender or impairment of any security for the performance or observance of any of the terms hereof.  Without limiting the foregoing, no action or omission whatsoever by Administrative Agent or any Lender under or in connection with any Letter of Credit or any related matters shall result in any liability of Administrative Agent or any Lender to Borrowers, or relieve Borrowers of any of their obligations hereunder to any such Person.
3.3     Expiration Dates of Letters of Credit.  The expiration date of each Letter of Credit shall be no later than the earlier of (i) one (1) year from the date of issuance and (ii) the thirtieth (30th) day prior to the Maturity Date for Revolving Loans, unless such Letter of Credit is Cash Collateralized in accordance with the terms below.  Notwithstanding the foregoing, a Letter of Credit may provide for automatic extensions of its expiration date for one or more one (1) year periods, so long as the L/C Issuer has the right to terminate the Letter of Credit at the end of each one (1) year period and no extension period extends past the tenth (10th) day prior to the Maturity Date for Revolving Loans (unless such Letter of Credit is Cash Collateralized).
3.4     Participations in Letters of Credit.  Concurrently with the issuance of each Letter of Credit, the applicable L/C Issuer shall be deemed to have sold and transferred to each Lender, and each Lender shall be deemed irrevocably and unconditionally to have purchased and received from such L/C Issuer, without recourse or warranty, an undivided interest and participation, to the extent of such Lender’s Pro Rata Share, in such Letter of Credit and Borrowers’ reimbursement obligations with respect thereto, which in each case shall be 

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determined in US Dollars.  If Borrowers do not pay any reimbursement obligation when due, Borrowers shall be deemed to have immediately requested that the Lenders make a Revolving Loan under the applicable Revolving Loan Commitment under which such Letter of Credit was issued which is a Base Rate Loan in a principal amount of US Dollars equal to such reimbursement obligations in accordance with Section 3.1.  Administrative Agent shall promptly notify Lenders of such deemed request and, without the necessity of compliance with the requirements of Section 2.6.2, Section 17.2 or otherwise, each such Lender shall make available to Administrative Agent its Pro Rata Share of such Loan.  The proceeds of such Loan shall be paid over by Administrative Agent to the applicable L/C Issuer for the account of Borrowers in satisfaction of the US Dollar Equivalent of such reimbursement obligations.  For the purposes of this Agreement, the unparticipated portion of each Letter of Credit shall be deemed to be the applicable L/C Issuer’s “participation” therein.  Each L/C Issuer shall (i) notify Administrative Agent of the issuance of any Letter of Credit and, upon request of Administrative Agent or any Lender, and (ii) deliver to Administrative Agent or such Lender a list of all outstanding Letters of Credit issued by such L/C Issuer, together with such information related thereto as Administrative Agent or such Lender may reasonably request.  
3.5     Cash Collateralization.  If any Event of Default shall occur and be continuing and Administrative Agent provides notice to Borrowers of the requirement that Borrowers Cash Collateralize all outstanding Letters of Credit, or if any Letter of Credit remains outstanding beyond the Maturity Date, the Borrowers shall deposit in one or more accounts with Administrative Agent, for the benefit of the L/C Issuer, in the name of Administrative Agent an amount in cash equal to 105% of the US Dollar Equivalent face amount of all outstanding Letters of Credit as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to any Borrower under Sections 15.6 or 15.7 herein.  Such deposit shall be held by Administrative Agent as collateral for the payment and performance of the outstanding Letters of Credit and all fees referred to in Section 3.1 (the “LC Exposure”).  Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account(s), and Borrowers hereby grant Administrative Agent a security interest in such account(s) to secure the LC Exposure.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of Administrative Agent and at the Borrowers’ risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account(s).  Moneys in such account(s) shall be applied by Administrative Agent to reimburse the applicable L/C Issuer for draws under any Letter of Credit for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure.  If the Borrowers are required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, Administrative Agent shall return such amount (to the extent not applied as aforesaid) to the Borrowers after all Events of Default have been cured or waived and the Loans de-accelerated.  If the Borrowers are required to provide cash collateral as a result of any Letter of Credit being outstanding beyond the Maturity Date, Lender shall return such cash collateral upon the expiration of such Letter of Credit to the extent no claims have been made and are outstanding against such Letter of Credit.  Upon the Payment in Full of all of the Obligations, all 

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cash collateral shall be returned to Borrowers or such other party as directed by any court of law having jurisdiction over such cash collateral.
3.6     Currency Settlement.  To the extent that, at any time, as a result of a fluctuation in currency exchange rates or otherwise, the aggregate amount of all Letters of Credit denominated in Canadian Dollars issued by the L/C Issuer to the Borrowers equals or exceeds an amount in US Dollars equal to 105% of the Maximum Aggregate Loan Amount as determined by Administrative Agent in its sole discretion, absent manifest error, Administrative Agent shall provide written notice of same to the Representative.  Upon receipt of such notice from Administrative Agent, the Borrowers shall deliver to Administrative Agent either an amount of US Dollars or a letter of credit (or similar instrument) in form and substance satisfactory to Administrative Agent in its sole discretion and issued by an issuer satisfactory to Administrative Agent in its sole discretion, in each case in an amount equal to the amount by which the Maximum Aggregate Loan Amount has been exceeded, which amount of US Dollars or letter of credit (or similar instrument), as applicable, shall be held by Administrative Agent as collateral security to secure payment of the amounts payable under such Letters of Credit denominated in Canadian Dollars in respect of any drawings thereunder. To the extent that, at any time, as a result of a further fluctuation in currency exchange rates or otherwise, the aggregate amount of all Letters of Credit denominated in Canadian Dollars issued by the L/C Issuers to the Borrowers subsequently decreases to an amount equal to or less than the Maximum Aggregate Loan Amount as determined by Administrative Agent in its sole discretion, absent manifest error, Administrative Agent shall return to the Borrowers any amount of US Dollars or letter of credit (or similar instrument), as applicable, held by Administrative Agent as collateral security in respect of such Letters of Credit denominated in Canadian Dollars.  
SECTION 4
INTEREST, FEES AND CHARGES
4.1     Interest Rate.  Subject to the terms and conditions set forth below, the Loans shall bear interest at the per annum rate of interest set forth in subsection (a), (b), (c) or (d) below:
(a)Base Rate Revolving Loans.  Revolving Loans bearing interest at the Base Rate shall bear interest at the Base Rate in effect from time to time plus three-quarters of one percent (0.75%), payable on the first Business Day of each month in arrears for interest through the last day of the prior month.  Said rate of interest shall increase or decrease by an amount equal to each increase or decrease in the Base Rate effective on the effective date of each such change in the Base Rate.  All such interest shall be calculated on the basis of a 360 day year for US Revolving Loans and on the basis of a 365/366 day year for Canadian Revolving Loans.  
(b)LIBOR Rate Revolving Loans.  Revolving Loans bearing interest at the LIBOR Rate shall bear interest at two and three-quarters of one percent (2.75%) per annum in excess of the LIBOR Rate for the applicable Interest Period, such rate to remain fixed for such Interest Period.  Interest shall be payable on the last Business Day of such Interest Period and, with respect to two (2) and three (3) month Interest Periods, on the same date of each month as 

56

the initial date of the Interest Period during such Interest Period.  All such interest shall be calculated on the basis of a 360 day year.  
(c)Default Rate.  Upon the occurrence of an Event of Default and during the continuance thereof, the Loans shall bear interest at the rate of two percent (2.0%) per annum in excess of the interest rate otherwise payable thereon, which interest shall be payable on demand.  All such interest shall be calculated on the basis of a 360 day year for US Revolving Loans and on the basis of a 365/366 day year for Canadian Revolving Loans.  Any provision of this Agreement that would oblige Westmoreland Canada, WC Investments, WPR, PMRL or CVRI to pay any fine, penalty or rate of interest on any arrears of principal or interest secured by a mortgage on real property that has the effect of increasing the charge on arrears beyond the rate of interest payable on principal money not in arrears shall not apply to Westmoreland Canada, WC Investments WPR, PMRL or CVRI, as applicable, which shall be required to pay interest on money in arrears at the same rate of interest payable on principal money not in arrears.
(d)LIBOR Rate Determination.  The applicable LIBOR Rate for each Interest Period shall be determined by Administrative Agent, and notice thereof shall be given by Administrative Agent promptly to the Representative.  Each determination of the applicable LIBOR Rate by Administrative Agent shall be conclusive and binding upon the parties hereto, in the absence of demonstrable error.  Administrative Agent shall, upon written request of the Representative, deliver to the Representative a statement showing the computations used by Administrative Agent in determining any applicable LIBOR Rate hereunder. 
4.2     Increased Costs; Special Provisions For LIBOR Loans.
4.2.1     Increased Costs.  (a) If, after the date hereof, the adoption of, or any change in, any applicable law, rule or regulation, or any change in the interpretation or administration of any applicable law, rule or regulation by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency arising from such change or adoption:  (i) shall impose, modify or deem applicable any reserve (including any reserve imposed by the FRB, but excluding any reserve included in the determination of the LIBOR Rate pursuant to Section 4), special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by a Lender; or (ii) shall impose on any Lender any other condition affecting its LIBOR Loans, its Note or its obligation to make LIBOR Loans; and the result of anything described in clauses (i) and (ii) above is to increase the cost to (or to impose a cost on) any Lender (or any LIBOR Office of such Lender) of making or maintaining any LIBOR Loan from the costs any Lender expected to incur but for such change or adoption, or to reduce the amount of any sum received or receivable by any Lender (or its LIBOR Office) under this Agreement or under its Note with respect thereto below the amount that such Lender expected to receive but for such change or adoption, then within five (5) Business Days after receipt of demand thereof from such Lender, (which demand shall be accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable detail), Borrowers shall pay directly to such Lender such additional amount as will compensate such Lender for such increased cost or such reduction.

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(b)If any Lender shall reasonably determine that any change after the date hereof in, or the adoption after the date hereof of, any applicable law, rule or regulation regarding capital adequacy, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or the compliance by any Lender or any Person controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency arising from such change or adoption, has or would have the effect of reducing the rate of return on such Lender’s or such controlling Person’s capital as a consequence of such Lender’s obligations hereunder or under any Letter of Credit to a level below that which such Lender or such controlling Person could have achieved but for such change, adoption, phase-in or compliance (taking into consideration Lender’s or such controlling Person’s policies with respect to capital adequacy) by an amount deemed by such Lender or such controlling Person to be material, then from time to time, within five (5) Business Days after receipt of demand by such Lender, (which demand shall be accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable detail), Borrowers shall pay to such Lender such additional amount as will compensate such Lender or such controlling Person for such reduction.
4.2.2     Basis for Determining Interest Rate Inadequate or Unfair.  If:
(a)Administrative Agent reasonably determines (which determination shall be binding and conclusive on Borrowers) that by reason of circumstances affecting the interbank LIBOR market adequate and reasonable means do not exist for ascertaining the applicable LIBOR Rate; or
(b)the LIBOR Rate as determined by Administrative Agent will not adequately and fairly reflect the cost to any Lender of maintaining or funding LIBOR Loans for such Interest Period or that the making or funding of LIBOR Loans has become impracticable as a result of an event occurring after the date of this Agreement which in the opinion of any Lender materially affects such Loans;
then Administrative Agent shall promptly notify the Representative and, so long as such circumstances shall continue, (i) no Lender shall be under any obligation to make or convert any Base Rate Loans into LIBOR Loans and (ii) on the last day of the current Interest Period for each LIBOR Loan, such Loan shall, unless then repaid in full, automatically convert to a Base Rate Loan.
4.2.3     Changes in Law Rendering LIBOR Loans Unlawful.  If, after the date hereof, any change in, or the adoption of any new, law or regulation, or any change in the interpretation of any applicable law or regulation by any governmental or other regulatory body charged with the administration thereof, should make it (or in the good faith judgment of any Lender cause a substantial question as to whether it is) unlawful for Lender to make, maintain or fund LIBOR Loans, then such Lender shall promptly notify each of the other parties hereto and, so long as such circumstances shall continue, (a) such Lender shall have no obligation to make or convert any Base Rate Loan into a LIBOR Loan (but shall make Base Rate Loans concurrently with the making of or conversion of Base Rate Loans into LIBOR Loans by a Lender which are not so affected, in each case in an amount equal to the amount of LIBOR Loans which would be 

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made or converted into by such Lender at such time in the absence of such circumstances) and (b) on the last day of the current Interest Period for each LIBOR Loan of such Lender (or, in any event,  on such earlier date as may be required by the relevant law, regulation or interpretation), such LIBOR Loan shall, unless then repaid in full, automatically convert to a Base Rate Loan.  Each Base Rate Loan made by a Lender which, but for the circumstances described in the foregoing sentence, would be a LIBOR Loan (an “Affected Loan”) shall remain outstanding until the earlier of (i) the date on which such Base Rate Loan is converted (when and if such conversion is lawful) or (ii) the Maturity Date.
4.2.4     Funding Losses.  Within five (5) Business Days after receipt of demand thereof from any Lender, (which demand shall be accompanied by a statement setting forth the basis for the amount being claimed, a copy of which shall be furnished to Administrative Agent, and a calculation of such amount in reasonable detail), Borrowers will indemnify such Lender against any net loss or expense which Lender may sustain or incur (including any net loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund or maintain any LIBOR Loan), as reasonably determined by such Lender, as a result of (a) any payment, prepayment or conversion of any LIBOR Loan of such Lender on a date other than the last day of an Interest Period for such Loan (including any conversion pursuant to Section 2.3.3) or (b) any failure of Borrowers to borrow, prepay, convert or continue any Loan on a date specified therefor in a notice of borrowing, prepayment, conversion or continuation pursuant to this Agreement.  For this purpose, all notices to Administrative Agent pursuant to this Agreement shall be deemed to be irrevocable.
4.2.5     Right of Lenders to Fund through Other Offices.  Each Lender may, if it so elects, fulfill its commitment as to any LIBOR Loan by causing a foreign branch or Affiliate of such Lender to make such Loan; provided that in such event for the purposes of this Agreement such Loan shall be deemed to have been made by such Lender and the obligation of Borrowers to repay such Loan shall nevertheless be to such Lender and shall be deemed held by it, to the extent of such Loan, for the account of such branch or Affiliate.
4.2.6     Discretion of Lenders as to Manner of Funding.  Notwithstanding any provision of this Agreement to the contrary, each Lender shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood, however, that for the purposes of this Agreement all determinations hereunder shall be made as if such Lender had actually funded and maintained each LIBOR Loan during each Interest Period for such Loan through the purchase of deposits having a maturity corresponding to such Interest Period and bearing an interest rate equal to the LIBOR Rate for such Interest Period.
4.2.7     Mitigation of Circumstances; Replacement of Lender.  
(a)Each Lender shall promptly notify the Representative and Administrative Agent of any event of which such Lender has knowledge which will result in, and will use reasonable commercial efforts available to it (and not, in such Lender’s sole judgment, otherwise disadvantageous to such Lender) to mitigate or avoid, (i) any obligation by Borrowers to pay any amount pursuant to Sections 4.2.1 or 4.4 or (ii) the occurrence of any circumstances described in Sections 4.2.2 or 4.2.3 (and, if such Lender has given notice of any such event described in clause (i) or (ii) above and thereafter such event ceases to exist, such Lender shall promptly so 

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notify Representative and Administrative Agent).  Without limiting the foregoing, such Lender will designate a different funding office if such designation will avoid (or reduce the cost to Borrowers of) any event described in clause (i) or (ii) above and such designation will not, in such Lender’s sole judgment, be otherwise disadvantageous in any material respect to such Lender.
(b)If Borrower becomes obligated to pay additional amounts to any Lender pursuant to Sections 4.2.1 or 4.4, or any Lender gives notice of the occurrence of any circumstances described in Sections 4.2.2 or 4.2.3, or any Lender becomes a Defaulting Lender, Borrowers may designate another bank which is acceptable to Administrative Agent and the L/C Issuer in their reasonable discretion (such other bank being called a “Replacement Lender”) to purchase the Loans of such Lender and such Lender’s rights hereunder, without recourse to or warranty by, or expense to, such Lender, for a purchase price equal to the outstanding principal amount of the Loans payable to such Lender plus any accrued but unpaid interest on such Loans and all accrued but unpaid fees owed to such Lender and any other amounts payable to such Lender under this Agreement, and to assume all the obligations of such Lender hereunder, and, upon such purchase and assumption (pursuant to an Assignment Agreement), such Lender shall no longer be a party hereto or have any rights hereunder (other than rights with respect to indemnities and similar rights applicable to such Lender prior to the date of such purchase and assumption) and shall be relieved from all obligations to Borrowers hereunder, and the Replacement Lender shall succeed to the rights and obligations of such Lender hereunder.
4.2.8     Conclusiveness of Statements; Survival of Provisions.  Determinations and statements of a Lender pursuant to Sections 4.2.1, 4.2.2, 4.2.3 or 4.2.4 shall be conclusive absent demonstrable error.  Each Lender may use reasonable averaging and attribution methods in determining compensation under Sections 4.2.1 and 4.2.4, and the provisions of such Sections shall survive repayment of the Obligations, cancellation of any Notes, expiration or termination of the Letters of Credit and termination of this Agreement.
4.3     Fees and Charges.
4.3.1     Closing Fee:  Borrowers shall pay to Administrative Agent a closing fee in accordance with the terms of the Fee Letter.
4.3.2     Unused Line Fee:  Borrowers shall pay to Administrative Agent an unused line fee at an annual rate of one-half of one percent (0.50%) of the difference between the sum of the Canadian Revolving Loan Commitment plus the US Revolving Loan Commitment as of the date of determination and the average daily balance of the sum of the Revolving Loans plus the Letter of Credit Obligations for each month under each such Revolving Loan Commitment, which fee shall be fully earned by each Lender on the first day of each month, beginning on the first day of the month following the Closing Date, and payable monthly in arrears on the first (1st) day of each month with respect to all activity through the last day of the prior month.  Said fee shall be calculated on the basis of a 360 day year.
4.3.3     Collateral Monitoring Fee: Borrowers shall pay to Administrative Agent a Collateral Monitoring Fee in accordance with the terms of the Fee Letter.

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4.3.4     Costs and Expenses: Borrowers shall reimburse Administrative Agent for all costs and expenses, including, without limitation, reasonable legal expenses and reasonable attorneys’ fees (for outside counsel), incurred by Administrative Agent in connection with the (i) documentation and consummation of the transaction contemplated by the Loan Documents, including, without limitation, Uniform Commercial Code and other public record searches and filings, overnight courier or other express or messenger delivery, appraisal costs, surveys, title insurance and environmental audit or review costs; (ii) collection, protection or enforcement of any rights of Administrative Agent or any Lender in or to the Collateral; (iii) collection of any Obligations; and (iv) administration and enforcement of any of Administrative Agent’s and Lenders’ rights under this Agreement or any other Loan Document (including, without limitation, any reasonable costs and expenses of any third party provider engaged by Lender for such purposes).  Borrowers shall also pay all normal service charges with respect to all accounts maintained by Borrowers with Administrative Agent and the Lender and any additional services requested by Borrowers from Administrative Agent or the Lenders.  
4.4     Taxes.  
(a)All payments made by Borrowers hereunder or under any Loan Documents shall be made without setoff, counterclaim, or other defense.  To the extent permitted by applicable law, all payments hereunder or under the Loan Documents (including any payment of principal, interest, or fees) to, or for the benefit, of any person shall be made by Borrowers free and clear of and without deduction or withholding for, or account of, any Taxes now or hereinafter imposed by any taxing authority.
(b)If Borrowers make any payment hereunder or under any Loan Document in respect of which it is required by applicable law to deduct or withhold any Taxes, Borrowers shall increase the payment hereunder or under any such Loan Document such that after the reduction for the amount of Taxes withheld (and any taxes withheld or imposed with respect to the additional payments required under this Section 4.4(b)), the amount paid to Lenders or Administrative Agent equals the amount that was payable hereunder or under any such Loan Document without regard to this Section 4.4(b).  To the extent Borrowers withhold any Taxes on payments hereunder or under any Loan Document, Borrowers shall pay the full amount deducted to the relevant taxing authority within the time allowed for payment under applicable law and promptly following receipt thereof shall deliver to Administrative Agent within 30 days after it has made payment to such authority any receipt issued by such authority (or other evidence satisfactory to Lenders and Administrative Agent) evidencing the payment of all amounts so required to be deducted or withheld from such payment. 
(c)If any Lender or Administrative Agent is required by law to make any payments of any Taxes on or in relation to any amounts received or receivable hereunder or under any other Loan Document, or any Tax is assessed against a Lender or Administrative Agent with respect to amounts received or receivable hereunder or under any other Loan Document, Borrowers will indemnify such Lender or Administrative Agent against (i) such Tax (and any reasonable counsel fees and expenses associated with such Tax) and (ii) any Tax imposed as a result of the receipt of the payment under this Section 4.4.  A certificate prepared in good faith as to the amount of such payment by such Lender or Administrative Agent shall, absent manifest error, be final, conclusive, and binding on all parties.

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(d)(i)    To the extent permitted by applicable law, each Lender that is not a United States person within the meaning of Code Section 7701(a)(30) (a “Non-U.S. Participant”) shall deliver to Borrowers and Administrative Agent on or prior to the Closing Date (or in the case of a Lender that is an Assignee, on the date of such assignment to such Lender) two accurate and complete original signed copies of IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or other applicable form prescribed by the IRS) certifying to such Lender’s entitlement to a complete exemption from, or a reduced rate in, United States withholding tax on interest payments to be made hereunder or any Loan.  If a Lender that is a Non-U.S. Participant is claiming a complete exemption from withholding on interest pursuant to Code Sections 871(h) or 881(c), such Lender shall deliver (along with two accurate and complete original signed copies of IRS Form W-8BEN) a certificate in form and substance reasonably acceptable to Administrative Agent (any such certificate, a “Withholding Certificate”).  In addition, each Lender that is a Non-U.S. Participant  agrees that from time to time after the Closing Date, (or in the case of a Lender that is an Assignee, after the date of the assignment to such Lender), when a lapse in time (or change in circumstances occurs) renders the prior certificates hereunder obsolete or inaccurate in any material respect, such Lender shall, to the extent permitted under applicable law, deliver to Borrowers and Administrative Agent two new and accurate and complete original signed copies of an IRS Form W 8BEN, W-8ECI, or W-8IMY (or any successor or other applicable forms prescribed by the IRS), and if applicable, a new Withholding Certificate, to confirm or establish the entitlement of such Lender or Administrative Agent to an exemption from, or reduction in, United States withholding tax on interest payments to be made hereunder or any Loan.
(ii)Each Lender that is not a Non-U.S. Participant (other than any such Lender which is taxed as a corporation for U.S. federal income tax purposes) shall provide two properly completed and duly executed copies of IRS Form W-9 (or any successor or other applicable form) to Borrowers and Administrative Agent certifying that such Lender is exempt from United States backup withholding tax.  To the extent that a form provided pursuant to this Section 4.4(d)(ii) is rendered obsolete or inaccurate in any material respect as result of change in circumstances with respect to the status of a Lender, such Lender shall, to the extent permitted by applicable law, deliver to Borrowers and Administrative Agent revised forms necessary to confirm or establish the entitlement to such Lender’s or Administrative Agent’s exemption from United States backup withholding tax.
(iii)Borrowers shall not be required to pay additional amounts to a Lender, or indemnify any Lender, under this Section 4.4 to the extent that such obligations would not have arisen but for the failure of such Lender to comply with this Section 4.4(d).
(iv)Each Lender agrees to indemnify Administrative Agent and hold Administrative Agent harmless for the full amount of any and all present or future Taxes and related liabilities (including penalties, interest, additions to tax and expenses, and any Taxes imposed by any jurisdiction on amounts payable to Administrative Agent under this Section 4.4) which are imposed on or with respect to principal, interest or fees payable to such Lender hereunder and which are not paid by Borrowers pursuant to this 

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Section 4.4, whether or not such Taxes or related liabilities were correctly or legally asserted.  This indemnification shall be made within 30 days from the date Administrative Agent makes written demand therefor.
(v)If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Representative and Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Representative or Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by Representative or Administrative Agent as may be necessary for the Borrowers and Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (v), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
4.5     Treatment of Certain Refunds.  If any Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to Section 4.4 (including by the payment of additional amounts pursuant to Section 4.4), it shall pay to the Borrowers an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of Borrowers and without interest (other than any interest paid by the relevant governmental authority with respect to such refund).  Such Lender will make such payment to Borrowers within ten (10) days after such Lender has determined that it owes amounts to the Borrowers pursuant to the first sentence of this Section 4.5.
4.6     Maximum Interest.  It is the intent of the parties that the rate of interest and other charges to Borrowers under this Agreement and the other Loan Documents shall be lawful; therefore, if for any reason the interest or other charges payable under this Agreement are found by a court of competent jurisdiction, in a final determination, to exceed the limit which Lender may lawfully charge Borrowers (including, without limitation, receipt by any of the Lenders of “interest” at a “criminal rate” (as such terms are construed under the Criminal Code (Canada)), then the obligation to pay interest and other charges shall automatically be reduced to such limit and, if any amount in excess of such limit shall have been paid, then such amount shall be refunded to Borrowers.
4.7     Interest Act (Canada).  Except as otherwise provided in this agreement, where in any Loan Document a rate of interest is calculated on the basis of a year (the “deemed year”) that contains fewer days than the actual number of days in the calendar year of calculation, that rate of interest will be expressed as a yearly rate for purposes of the Interest Act (Canada) by multiplying that rate of interest by the actual number of days in the calendar year of calculation, whether 365 or 366, as the case may be, and dividing it by the number of days in the deemed year

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SECTION 5
COLLATERAL
5.1     Grant of Security Interest to Administrative Agent.  
5.1.1     US Borrowers.  As security for the payment of all Loans now or in the future made by Administrative Agent and Lenders to US Borrowers hereunder and for the payment, performance or other satisfaction of all other Obligations (in the aggregate) owing to Administrative Agent, Lenders and, to the extent constituting Obligations hereunder, any Affiliate of any Lender, each of the US Borrowers hereby (i) reaffirms its prior assignment and grant to Administrative Agent for the benefit of the Lenders, and (ii) assigns to Administrative Agent, for the benefit of itself, the Lenders and their applicable Affiliates, and grants to Administrative Agent, for the benefit of itself, the Lenders and their applicable Affiliates, a continuing security interest in the following property of each US Borrower, whether now or hereafter owned, existing, acquired or arising and wherever now or hereafter located: 
(a)All of each US Borrower’s Accounts, Inventory (whether or not Eligible Inventory), money, contract rights, Chattel Paper, Documents, Documents of Title, Deposit Accounts, Securities Accounts, securities (excluding all equity securities evidencing ownership interests in any Borrower), Investment Property and Instruments with respect thereto, and all of each Borrower’s rights, remedies, security, Liens and supporting obligations, in, to and in respect of the foregoing, including, without limitation, rights of stoppage in transit, replevin, repossession and reclamation and other rights and remedies of an unpaid vendor, lienor or secured party, guarantees or other contracts of suretyship with respect to such property, deposits or other security for the obligation of any Account Debtor, and credit and other insurance and all Inventory described in invoices or other documents or instruments with respect to, or otherwise representing or evidencing, any Account, and all returned, reclaimed or repossessed Inventory;
(b)To the extent not listed above, all of each US Borrower’s money, securities (excluding all equity securities evidencing ownership interests in any Borrower), Investment Property, Deposit Accounts, Securities Accounts, Instruments and other property and the proceeds thereof that are now or hereafter held or received by, in transit to, in possession of, or under the control of Administrative Agent or any Lender or any parent, Affiliate or Subsidiary of Administrative Agent or any Lender or any participant in the Loans, whether for safekeeping, pledge, custody, transmission, collection or otherwise;
(c)To the extent not listed above, all of each US Borrower’s now owned or hereafter acquired Deposit Accounts or Securities Accounts into which Accounts or the proceeds of Accounts are deposited, including the Lockbox Account and all signature cards, account agreements and other documents relating to the Deposit Accounts or Securities Accounts;
(d)All Deposit Accounts, bank accounts, deposits and cash;
(e)All of each US Borrower’s General Intangibles and Intangibles (including, without limitation, payment intangibles) and other property of every kind and description with respect to, evidencing or relating to its Accounts or Inventory, including, without limitation, all 

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existing and future customer lists, choses in action, claims, books, records, ledger cards, contracts, licenses, formulae, tax and other types of refunds, returned and unearned insurance premiums, rights and claims under insurance policies, and computer programs, tapes, programs, discs, information, software, records, and data, all computers, word processors, printers, switches, interfaces, source codes, mask works, software, web servers, website service contracts, internet connection contract or line lease, website hosting service contract, website license agreements, back-up copies of website content, contracts with website advertisers, scripts, codes or Active-X controls, technology escrow agreements, website content development agreements, all rights, of whatever form, in and to domain names, instructional material, and connectors and all parts, accessories, additions, substitutions, or options together with all property or equipment used in connection with any of the above or which are used to operate or cause to operate any features, special applications, format controls, options or software of any or all of the above-mentioned items as the same relates to the Accounts or Inventory or is otherwise necessary or helpful in the collection thereof or realization thereto; and 
(f)All additions and accessions to, substitutions for, and replacements, products and Proceeds of the foregoing property.  
Notwithstanding any of the foregoing or any other provision in this Agreement to the contrary, no security interest is granted in any Excluded Property of any US Borrower.
5.1.2     Canadian Borrowers.  As security for the payment of all Canadian Loans now or in the future made by Administrative Agent and Lenders to Canadian Borrowers hereunder and for the payment, performance or other satisfaction of all other Canadian Obligations owing to Administrative Agent, Lenders and, to the extent constituting Canadian Obligations hereunder, any Affiliate of any Lender, each of the Canadian Borrowers hereby (i) reaffirms its prior assignment and grant to Administrative Agent for the benefit of the Lenders for all Canadian Obligations, and (ii) assigns to Administrative Agent, for the benefit of itself, the Lenders and their applicable Affiliates, and grants to Administrative Agent, for the benefit of itself, the Lenders and their applicable Affiliates, a continuing security interest in the following property of each Canadian Borrower, whether now or hereafter owned, existing, acquired or arising and wherever now or hereafter located: 
(a)All of each Canadian Borrower’s Accounts, Goods (other than Consumer Goods), including, for certainty, all Inventory (whether or not Eligible Inventory), Equipment, money, contract rights, Chattel Paper, Documents, Documents of Title, Deposit Accounts, Securities Accounts, securities (excluding all equity securities evidencing ownership interests in any Borrower), Investment Property and Instruments with respect thereto, and all of each Borrower’s rights, remedies, security, Liens and supporting obligations, in, to and in respect of the foregoing, including, without limitation, rights of stoppage in transit, replevin, repossession and reclamation and other rights and remedies of an unpaid vendor, lienor or secured party, guarantees or other contracts of suretyship with respect to such property, deposits or other security for the obligation of any Account Debtor, and credit and other insurance and all Inventory described in invoices or other documents or instruments with respect to, or otherwise representing or evidencing, any Account, and all returned, reclaimed or repossessed Inventory;

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(b)To the extent not listed above, all of each Canadian Borrower’s money, securities (excluding all equity securities evidencing ownership interests in any Borrower), Investment Property, Deposit Accounts, Securities Accounts, Instruments and other property and the proceeds thereof that are now or hereafter held or received by, in transit to, in possession of, or under the control of Administrative Agent or any Lender or any parent, Affiliate or Subsidiary of Administrative Agent or any Lender or any participant in the Loans, whether for safekeeping, pledge, custody, transmission, collection or otherwise;
(c)To the extent not listed above, all of each Canadian Borrower’s now owned or hereafter acquired Deposit Accounts or Securities Accounts into which Accounts or the proceeds of Accounts are deposited, including the Lockbox Account and all signature cards, account agreements and other documents relating to the Deposit Accounts or Securities Accounts;
(d)All Deposit Accounts, bank accounts, deposits and cash;
(e)All of each Canadian Borrower’s General Intangibles and Intangibles (including, without limitation, payment intangibles) and other property of every kind and description with respect to, evidencing or relating to its Accounts, Inventory or Equipment, including, without limitation, all existing and future customer lists, choses in action, claims, books, records, ledger cards, contracts, licenses, formulae, tax and other types of refunds, returned and unearned insurance premiums, rights and claims under insurance policies, and computer programs, tapes, programs, discs, information, software, records, and data, all computers, word processors, printers, switches, interfaces, source codes, mask works, software, web servers, website service contracts, internet connection contract or line lease, website hosting service contract, website license agreements, back-up copies of website content, contracts with website advertisers, scripts, codes or Active-X controls, technology escrow agreements, website content development agreements, all rights, of whatever form, in and to domain names, instructional material, and connectors and all parts, accessories, additions, substitutions, or options together with all property or equipment used in connection with any of the above or which are used to operate or cause to operate any features, special applications, format controls, options or software of any or all of the above-mentioned items as the same relates to the Accounts, Inventory or Equipment or is otherwise necessary or helpful in the collection thereof or realization thereto; and 
(f)All additions and accessions to, substitutions for, and replacements, products and Proceeds of the foregoing property.  
Notwithstanding any of the foregoing or any other provision in this Agreement to the contrary, no security interest is granted in any Excluded Property of any Canadian Borrower.
5.2     Other Security.  Administrative Agent, in its sole discretion, without waiving or releasing (i) any obligation, liability or duty of Borrowers under this Agreement or the other Loan Documents or (ii) any Event of Default, may at any time or times hereafter, but shall not be obligated to, pay, acquire or accept an assignment of any security interest, lien, encumbrance or claim asserted by any Person in, upon or against the Collateral, provided, that Administrative Agent may take such actions with respect to Permitted Liens only after the occurrence and 

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during the continuance of an Event of Default.  All sums paid by Administrative Agent in respect thereof and all costs, fees and expenses including, without limitation, reasonable attorney fees, all court costs and all other charges relating thereto incurred by Administrative Agent shall constitute Obligations, payable by Borrowers to Administrative Agent on demand, and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder.
5.3     Possessory Collateral.  Immediately upon any Borrower’s receipt of any portion of the Collateral of any Borrower that is Tangible Chattel Paper with an aggregate value in excess of $500,000 and any Investment Property consisting of certificated securities, such Borrower shall deliver the original thereof to Administrative Agent together with an appropriate endorsement or other specific evidence of assignment thereof to Administrative Agent (in form and substance acceptable to Administrative Agent).  If an endorsement or assignment of any such items shall not be made for any reason, Administrative Agent is hereby irrevocably authorized, as Borrowers’ attorney and agent-in-fact, to endorse or assign the same on Borrowers’ behalf.
5.4     Electronic Chattel Paper.  To the extent that any Borrower obtains or maintains any Electronic Chattel Paper constituting proceeds of the Collateral with an aggregate value in excess of $500,000, such Borrower shall create, store and assign the record or records comprising the Electronic Chattel Paper in such a manner that (i) a single authoritative copy of the record or records exists which is unique, identifiable and except as otherwise provided in clauses (iv), (v) and (vi) below, unalterable, (ii) the authoritative copy identifies Administrative Agent as the assignee of the record or records, (iii) the authoritative copy is communicated to and maintained by Administrative Agent or its designated custodian, (iv) copies or revisions that add or change an identified assignee of the authoritative copy can only be made with the participation of Administrative Agent, (v) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy and (vi) any revision of the authoritative copy is readily identifiable as an authorized or unauthorized revision.
SECTION 6
PRESERVATION OF COLLATERAL AND
PERFECTION OF SECURITY INTERESTS THEREIN
Borrowers shall, at Administrative Agent’s request, at any time and from time to time, authenticate, execute and deliver to Administrative Agent such financing statements, documents and other agreements and instruments (and pay the cost of filing or recording the same in all public offices deemed necessary or desirable by Administrative Agent) and do such other acts and things or cause third parties to do such other acts and things as Administrative Agent may deem necessary or desirable in its sole discretion in order to establish and maintain a valid, attached and perfected security interest in the Collateral in favor of Administrative Agent (free and clear of all other liens, claims, encumbrances and rights of third parties whatsoever, whether voluntarily or involuntarily created, except Permitted Liens) to secure payment of the Obligations as provided for herein, and in order to facilitate the collection of the Collateral.  Each Borrower irrevocably hereby makes, constitutes and appoints Administrative Agent (and all Persons designated by Administrative Agent for that purpose) as such Borrower’s true and lawful attorney and agent-in-fact to execute and file such financing statements, documents and 

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other agreements and instruments and do such other acts and things as may be necessary to preserve and perfect Administrative Agent’s security interest in the Collateral as provided for herein.  Each Borrower further ratifies and confirms the prior filing by Administrative Agent of any and all financing statements which identify each Borrower as debtor, Administrative Agent as secured party and any or all Collateral as collateral.
SECTION 7
POSSESSION OF COLLATERAL AND RELATED MATTERS
Until otherwise notified by Administrative Agent following the occurrence and during the continuance of an Event of Default, Borrowers shall have the right, except as otherwise provided in this Agreement, in the ordinary course of Borrowers’ business, to (a) sell, lease or furnish any of Borrowers’ Inventory normally held by Borrowers for any such purpose; and (b) use and consume any raw materials, work in process or other materials normally held by Borrowers for such purpose; provided, however, that a sale in the ordinary course of business shall not include any transfer or sale in satisfaction, partial or complete, of a debt owed by Borrowers.
SECTION 8
COLLECTIONS
8.1     Blocked Account.  Borrowers shall direct all of their Account Debtors to make all payments on the Accounts that are made by (a) check directly to a mailing address designated by, and under the exclusive control of, Administrative Agent, at Administrative Agent or a financial institution acceptable to Administrative Agent and (b) wire transfer to an account under the exclusive control of Administrative Agent, at Administrative Agent or a financial institution acceptable to Administrative Agent; provided, that with respect to payments made by check, with the consent of Administrative Agent, Borrowers may collect payments and remotely scan such checks to Administrative Agent in a manner satisfactory to Administrative Agent (“Remote Scanning”) on a daily basis as such checks are received.  Borrowers shall establish one or more account(s) (the “Lockbox Account”) in Borrowers’ name, for the benefit of Administrative Agent, with Administrative Agent or a financial institution acceptable to Administrative Agent, into which all payments received in the Lockbox shall be deposited, and into which Borrowers will immediately deposit all payments received by Borrowers on Accounts in the identical form in which such payments were received, whether by cash or check.  If Borrowers, any Affiliate or Subsidiary, any shareholder, officer, director, employee or agent of Borrowers or any Affiliate or Subsidiary, or any other Person acting for or in concert with Borrowers shall receive any monies, checks, notes, drafts or other payments relating to or as Proceeds of Accounts or other Collateral, Borrowers and each such Person shall receive all such items in trust for, and as the sole and exclusive property of, Administrative Agent and, immediately upon receipt thereof, shall remit the same (or cause the same to be remitted) in kind to the Lockbox Account in a manner satisfactory to Administrative Agent including by Remote Scanning.  The financial institution with which the Lockbox Account is established shall acknowledge and agree, in a manner satisfactory to Administrative Agent, that the checks, instruments, and other property in such Lockbox and Lockbox Account are the sole and exclusive property of Administrative Agent, that 

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such financial institution will follow the instructions of Administrative Agent with respect to disposition of funds in the Lockbox and Lockbox Account without further consent from the Borrowers, and that the financial institution will not accept, and Administrative Agent will not be obligated to accept, instructions of Borrowers with respect to the Lockbox Account.  On any day on which there are outstanding Revolving Loans, the daily ledger balance of such accounts as of the beginning of each Business Day shall be transferred to Administrative Agent each Business Day for application in accordance with Section 8.3.  All payments made to such Lockbox Account or otherwise received by Administrative Agent, whether in respect of the Accounts or as Proceeds of other Collateral or otherwise (except for proceeds of Collateral which are required to be delivered to the holder of a Permitted Lien which is prior in right of payment), will be applied on account of the Obligations in accordance with the terms of this Agreement on any day in which Revolving Loans are outstanding; provided, that so long as no Event of Default has occurred and is continuing, payments received by Administrative Agent shall not be applied to the unmatured portion of the LIBOR Rate Loans, but shall be held in a cash collateral account maintained by Administrative Agent or Canadian Bank and/or transferred to Borrowers’ operating account at Administrative Agent or Canadian Bank, as applicable, until the earlier of (i) the last Business Day of the Interest Period applicable to such LIBOR Rate Loan, and (ii) the occurrence of an Event of Default (the “Agreed LIBOR Loan Application Method”); provided further, that so long as no Event of Default has occurred and is continuing and Excess Availability is greater than or equal to $10,000,000 under the Canadian Revolving Loan Commitment and $7,500,000 under the US Revolving Loan Commitment, the immediately available funds in such cash collateral account may be transferred to Borrowers’ operating account at Administrative Agent (it being understood and agreed that the Administrative Agent may, at any time Excess Availability is less than the amounts set forth above for the applicable Revolving Loan Commitment, apply such available funds to the Obligations after giving effect to the Agreed Libor Loan Application Method, unless an Event of Default exists, in which case, the Administrative Agent shall apply such available funds in such order as the Administrative Agent shall direct without restriction, subject to the terms of Section 16.2 herein).  All of such fees, costs and expenses if not paid by Borrowers, may be paid by Administrative Agent (if at a financial institution other than Administrative Agent) or otherwise charged to Borrowers and in such event all amounts paid by Administrative Agent or charged by Administrative Agent shall constitute Obligations hereunder, shall be payable to Administrative Agent by Borrowers upon demand, and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder.  All checks, drafts, instruments and other items of payment or Proceeds of Collateral shall be endorsed by Borrowers to Administrative Agent, and, if that endorsement of any such item shall not be made for any reason, Administrative Agent is hereby irrevocably authorized to endorse the same on Borrowers’ behalf.  For the purpose of this section, each Borrower irrevocably hereby makes, constitutes and appoints Administrative Agent (and all Persons designated by Administrative Agent for that purpose) as each Borrower’s true and lawful attorney and agent-in-fact (i) to endorse each Borrower’s name upon said items of payment and/or Proceeds of Collateral and upon any Chattel Paper, Document, Instrument, invoice or similar document or agreement relating to any Account of any Borrower or Goods pertaining thereto; (ii) to take control in any manner of any item of payment or Proceeds thereof and (iii) to have access to any lockbox or postal box into which any of any Borrower’s mail is deposited, and open and process all mail addressed to each Borrower and deposited therein.  

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8.2     Administrative Agent’s Rights.  Administrative Agent may, at any time and from time to time after the occurrence and during the continuance of an Event of Default, whether before or after notification to any Account Debtor and whether before or after the maturity of any of the Obligations, (i) enforce collection of any of Borrowers’ Accounts or other amounts owed to Borrowers by suit or otherwise; (ii) exercise all of Borrowers’ rights and remedies with respect to proceedings brought to collect any Accounts or other amounts owed to Borrowers; (iii) surrender, release or exchange all or any part of any Accounts or other amounts owed to Borrowers, or compromise or extend or renew for any period (whether or not longer than the original period) any indebtedness thereunder; (iv) sell or assign any Account of Borrowers or other amount owed to Borrowers upon such terms, for such amount and at such time or times as Administrative Agent deems advisable; (v) prepare, file and sign each Borrower’s name on any proof of claim in bankruptcy or other similar document against any Account Debtor or other Person obligated to Borrowers; and (vi) do all other acts and things which are necessary, in Administrative Agent’s sole discretion determined in good faith, to fulfill Borrowers’ obligations under this Agreement and the other Loan Documents and to allow Administrative Agent to collect the Accounts or other amounts owed to Borrowers.  In addition to any other provision hereof, Administrative Agent may at any time, after the occurrence and during the continuance of an Event of Default, at Borrowers’ expense, notify any parties obligated on any of the Accounts to make payment directly to Administrative Agent of any amounts due or to become due thereunder.  In addition to any other provision hereof, Administrative Agent may at any time, after (i) the occurrence and during the continuance of an Event of Default or (ii) Excess Availability is less than $10,000,000 under the Canadian Revolving Loan Commitment or $7,500,000 under the US Revolving Loan Commitment, take control over any of the Borrowers’ or its Subsidiaries’ Lockbox Accounts maintained by Administrative Agent or Canadian Bank; provided, however, if control over any such account is established pursuant to clause (i) or (ii) of the foregoing, the Administrative Agent shall promptly relinquish control over such accounts once (a) Excess Availability is greater than or equal to the amounts specified above for the applicable Revolving Loan Commitment and (b) no Event of Default is outstanding.
8.3     Application of Proceeds.  For purposes of calculating interest and fees, Administrative Agent shall, within one (1) Business Day after application of the daily ledger balance to the Obligations as set forth in the immediately following sentence, apply the whole or any part of such collections or Proceeds (i) of the Collateral of the US Borrowers against the Obligations in such order as Administrative Agent shall determine in its sole discretion and (ii) of the Collateral of the Canadian Borrowers against the Canadian Obligations in such order as Administrative Agent shall determine in its sole discretion.  For purposes of determining the amount of Loans available for borrowing purposes, Administrative Agent shall apply the daily ledger balance in the Lockbox Account as of the beginning of each Business Day in whole or in part against the applicable Obligations owing under such Revolving Credit Commitment, in such order as Administrative Agent shall determine in its sole discretion (and in the absence of any such determination, in the order set forth in Section 16.2), on the day of receipt, subject to actual collection, it being understood and agreed that Proceeds and collections from the Collateral of the US Borrowers may be applied to all of the Obligations and Proceeds and collections from the Collateral of the Canadian Borrowers may only be applied to the Canadian Obligations.

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8.4     Account Statements.  On a monthly basis, Administrative Agent shall deliver to Borrowers an account statement showing all Loans, charges and payments, which shall be deemed final, binding and conclusive upon Borrowers unless Borrowers notify Administrative Agent in writing, specifying any error therein, within thirty (30) days after the date such account statement is sent to Borrowers and any such notice shall only constitute an objection to the items specifically identified.
SECTION 9
COLLATERAL, AVAILABILITY AND FINANCIAL REPORTS AND SCHEDULES
9.1     Weekly Reports.  Borrowers shall deliver to Administrative Agent (and Administrative Agent shall deliver a copy thereof to each Lender) an executed loan report and certificate in Administrative Agent’s then current form at least once each week to the extent that Excess Availability is less than $10,000,000 under the Canadian Revolving Loan Commitment or $7,500,000 under the US Revolving Loan Commitment (or such total Excess Availability is greater than or equal to the amounts specified above for the applicable Revolving Loan Commitment for each weekly period during each calendar month, at least once each month to be delivered within five (5) Business Days after each month end), which shall be accompanied by copies of Borrowers’ sales journal, cash receipts journal and credit memo journal (as requested by Administrative Agent) for the relevant period.  Such report shall reflect the activity of Borrowers with respect to Accounts for the immediately preceding week, and shall be in a form and with such specificity as is satisfactory to Administrative Agent and shall contain such additional information concerning Accounts and Inventory as may be requested by Administrative Agent including, without limitation, but only if specifically requested by Administrative Agent, copies of all invoices prepared in connection with such Accounts. 
9.2     Monthly Reports.  Borrowers shall deliver to Administrative Agent, in addition to any other reports, as soon as practicable and in any event within fifteen (15) days after the end of each month, (a) a detailed trial balance of Borrowers’ Accounts aged per invoice date, in form and substance reasonably satisfactory to Administrative Agent including, without limitation, the names and addresses of all Account Debtors of Borrowers, (b) a summary and detail of accounts payable (such Accounts and accounts payable divided into such time intervals as Administrative Agent may require in its sole discretion), including a listing of any held checks and all royalties earned and payable to third parties (together with the amount of any deficiency between amounts received and amounts payable to third parties) pursuant to any coal supply, royalty assignment or similar agreement, and (c) the general ledger inventory account balance, an inventory report and Administrative Agent’s standard form of Inventory report then in effect or the form most recently requested from Borrowers by Administrative Agent, for Borrowers by each category of Inventory, together with a description of the monthly change in each category of Inventory.  
9.3     Financial Statements.  Borrowers shall deliver to Administrative Agent the following financial information, all of which shall be prepared in accordance with GAAP consistently applied, and shall be accompanied by a compliance certificate in the form of Exhibit A hereto, which compliance certificate shall include a calculation of all financial covenants contained in this Agreement:  (i) no later than thirty (30) days after each calendar month, copies of internally prepared financial statements, including, without limitation, balance 

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sheets and statements of income, retained earnings and cash flow of the Borrowers, certified by the Chief Financial Officer of Westmoreland Parent; and (ii) no later than one hundred twenty (120) days after the end of each of the Borrowers’ Fiscal Years, audited annual consolidated and consolidating financial statements with an unqualified opinion by independent certified public accountants selected by the Borrowers and reasonably satisfactory to Administrative Agent, which consolidated and consolidating financial statements shall be accompanied by copies of any management letters sent to the Borrowers by such accountants.  
9.4     Annual Projections.  No later than thirty (30) days prior to the beginning of each Fiscal Year, the Borrowers shall deliver to Administrative Agent projected balance sheets, statements of income and cash flow for the Borrowers, for each of the twelve (12) months during such Fiscal Year, which shall include the assumptions used therein, together with appropriate supporting details as reasonably requested by Administrative Agent.
9.5     Explanation of Budgets and Projections.  In conjunction with the delivery of the annual presentation of projections or budgets referred to in Section 9.4 above, an executive officer of Westmoreland Parent shall be available upon request by Administrative Agent to discuss in detail, all changes and developments between the anticipated financial results included in such projections or budgets and the historical financial statements of the Borrowers and shall prepare such additional written reports explaining such charges and developments as reasonably requested by Administrative Agent.
9.6     Public Reporting.  Promptly upon the filing thereof, the Borrowers shall deliver to Administrative Agent copies of all registration statements and annual, quarterly, monthly or other regular reports which the Borrowers or any of their Subsidiaries files with the Securities and Exchange Commission, as well as promptly providing to Administrative Agent copies of any reports and proxy statements delivered to their shareholders.  Documents required to be delivered pursuant to this Section 9.6 (to the extent any such documents are included in materials otherwise filed with the Securities and Exchange Commission) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which any Borrower posts such documents, or provides a link thereto on the Borrowers’ website.  
9.7     Other Information.  Promptly following request therefor by Administrative Agent, such other business or financial data, reports, appraisals and projections as Administrative Agent may reasonably request.  
SECTION 10
TERMINATION
Lenders’ obligations under this Agreement shall be in effect from the date hereof until the Maturity Date or such earlier date that the Obligations are accelerated pursuant to Section 16 hereof.  Upon the Maturity Date or the earlier acceleration of the Obligations as set forth above, neither Administrative Agent nor any Lender shall be obligated to make any additional Loans on or after the date identified as the date on which the Obligations are to be repaid; and this Agreement shall terminate on the date thereafter that the Obligations are Paid in Full (except for such provisions that by their terms survive the termination of this Agreement) and all Letters of 

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Credit are returned to the L/C Issuer for cancellation.  At such time as Borrowers have repaid all of the Obligations and all Letters of Credit are returned to L/C Issuer for cancellation and this Agreement has terminated, Borrowers shall deliver to Administrative Agent a release of all obligations and liabilities of Administrative Agent and each Lender and their officers, directors, employees, agents, parents, Subsidiaries and Affiliates to Borrowers, and if Borrowers are obtaining new financing from another lender, Borrowers shall request that such lender deliver an agreement to indemnify Administrative Agent and Lenders, in form and substance satisfactory to Administrative Agent, for checks or other amounts which Administrative Agent has credited to Borrowers’ account.  If, during the term of this Agreement, Borrowers prepay all of the Obligations, return all Letters of Credit for cancellation or Cash Collateralize such Letters of Credit, and this Agreement is terminated, Borrowers agree to a prepayment fee to the Administrative Agent in accordance with the terms of the Agent Fee Letter. 
SECTION 11
REPRESENTATIONS AND WARRANTIES
The Borrowers hereby represent and warrant to Administrative Agent and Lenders, which representations and warranties (whether appearing in this Section 11 or elsewhere) shall be true at the time of the Borrowers’ execution hereof (after giving effect to the Related Transactions), shall remain true until the repayment in full and satisfaction of all the Obligations and termination of this Agreement, and shall be remade by the Borrowers at the time each Loan is made pursuant to this Agreement, provided, that representations and warranties made as of a particular date shall be true and correct as of such date:  
11.1     Financial Statements and Other Information.  The financial statements and other written information delivered or to be delivered by the Borrowers to Administrative Agent or any Lender at or prior to the date of this Agreement fairly present in all material respects the financial condition of the Borrowers as of the date of such financial statements and information, and there has been no material adverse change in the financial condition or the operations of the Borrowers since the date of the financial statements delivered to Administrative Agent most recently prior to the date of this Agreement.  All written information now or heretofore furnished by the Borrowers to Administrative Agent is true and correct as of the date with respect to which such information was furnished.
11.2     Locations.  The office where each Borrower keeps its books, records and accounts (or copies thereof) concerning the Collateral, each Borrower’s principal place of business and all of each Borrower’s other places of business, locations of Collateral and post office boxes and locations of bank accounts are as set forth in Schedule 11.2 and at other locations within the continental United States of which Administrative Agent has been advised by Borrowers in accordance with Section 12.2.1.  The Collateral, including, without limitation, the Equipment (except any part thereof which Borrowers shall have advised Administrative Agent in writing consists of Collateral normally used in more than one state or province) is kept, or, in the case of vehicles, based, only at the addresses set forth on Schedule 11.2, and at other locations within the continental United States of which Administrative Agent has been advised by Borrowers in writing in accordance with Section 12.2.1 hereof.

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11.3     Loans by the Borrowers.  Borrowers have not made any loans or advances to any Affiliate or other Person except as permitted by Section 13.6 hereof.
11.4     Accounts and Inventory.  Each Account or item of Inventory which Borrowers shall, expressly or by implication, request Administrative Agent to classify as an Eligible Account or as Eligible Inventory, respectively, shall, as of the time when such request is made, conform in all respects to the requirements of such classification as set forth in the respective definitions of Eligible Account and Eligible Inventory as set forth herein and as otherwise established by Administrative Agent from time to time.
11.5     Liens.  Borrowers are the lawful owner of all Collateral now purportedly owned or hereafter purportedly acquired by the Borrowers, free from all liens, claims, security interests, hypothecs and encumbrances whatsoever, whether voluntarily or involuntarily created and whether or not perfected, other than the Permitted Liens.
11.6     Organization, Authority and No Conflict.  Westmoreland Parent is a corporation duly organized, validly existing and in good standing in the State of Delaware and its state organization identification number is 0024033.  Westmoreland Energy is a limited liability company duly organized, validly existing and in good standing in the State of Delaware, and its state organizational identification number is 2167615.  Westmoreland NC is a limited liability company duly organized, validly existing and in good standing the State of Virginia, and its state organizational identification number is S183596-8.  WEI is a corporation duly organized, validly existing and in good standing in the State of Delaware, and its state organization identification number is 2181866.  Westmoreland Roanoke is a limited partnership duly organized, validly existing and in good standing in the State of Delaware, and its state organization identification number is 2201291.  Westmoreland Partners is a general partnership duly organized, validly existing and in good standing in the State of Virginia.  Westmoreland Resources is a corporation duly organized, validly existing and in good standing in the State of Delaware, and its state organization identification number is 0829180.  Kemmerer is a corporation duly organized, validly existing and in good standing in the State of Delaware, and its state organization identification number is 4798657.  Coal Sales is a corporation duly organized, validly existing and in good standing in the State of Delaware, and its state organization identification number is 0693230.  WRI is a corporation duly organized, validly existing and in good standing in the State of Delaware, and its state organization identification number is 4553561.  WCC is a corporation duly organized, validly existing and in good standing in the State of Delaware, and its state organization identification number is 4898788.  WC LLC is a limited liability company duly organized, validly existing and in good standing in the State of Delaware, and its state organization identification number is 5509777.  WES is a Delaware corporation duly organized, validly existing and in good standing the State of Delaware, and its state organization identification number is 5371511.  WML is a Delaware limited liability company duly organized, validly existing and in good standing the State of Delaware, and its state organization identification number is 84-1575176.  WECO is a Montana corporation duly organized, validly existing and in good standing the State of Montana, and its state organization identification number is  81-0299780.  TWCC is a Montana corporation duly organized, validly existing and in good standing the State of Montana, and its state organization identification number is 81-0331383.  Savage is a Delaware corporation duly organized, validly existing and in good standing the State of Delaware, and its state organization identification number is 84-1575204.  

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Dakota is a Delaware corporation duly organized, validly existing and in good standing the State of Delaware, and its state organization identification number is 84-1575177.   WC Investments is a limited partnership organized and existing under the laws of the Province of Quebec.  Westmoreland Canada is a corporation organized and existing under the laws of the Province of Alberta.  WPR is a corporation organized and existing under the laws of the Province of Alberta.  PMRL is an unlimited liability company organized and existing under the laws of the Province of Alberta.  CVRI is a corporation organized and existing under the laws of the Province of Alberta.  PCL is a corporation organized and existing under the laws of the Province of Saskatchewan.  Willowvan is a is a corporation organized and existing under the laws of the Province of Saskatchewan.  PRC is a is a partnership organized and existing under the laws of the Province of Saskatchewan.  WCC BV is a B.V. organized and existing under the law of the Netherlands.  Each Borrower is duly qualified and in good standing in all jurisdictions where the nature and extent of the business transacted by it or the ownership of its assets makes such qualification necessary or, if such Borrower is not so qualified, such failure does not have a Material Adverse Effect.  Each Borrower has the right and power and is duly authorized and empowered to enter into, execute and deliver this Agreement and the other Loan Documents to which it is a party and perform its obligations hereunder and thereunder.  Each Borrower’s execution and delivery of, and its performance of its obligation under, this Agreement and the other Loan Documents to which it is a party do not violate the provisions of the organizational documents of such Borrower, or any statute, regulation, ordinance or law, or any agreement, contract or other document to which it is a party, except for agreements, contracts or other documents which would not have a Material Adverse Effect.  Each Borrower’s execution and delivery of, and performance of its obligations under, this Agreement and the other Loan Documents to which it is a party will not result in the imposition of any lien or other encumbrance upon such Borrower’s property (other than Permitted Liens) under any existing indenture, mortgage, deed of trust, loan or credit agreement or other agreement or instrument to which such Borrower is a party. 
11.7     Litigation.  Except as disclosed on Schedule 11.7 hereto, there are no actions or proceedings which are pending or, to Borrowers’ knowledge, threatened against any Borrower which is, in the reasonable determination of such Borrower, reasonably likely to have a Material Adverse Effect.  No Borrower has any Commercial Tort Claims pending other than those set forth on Exhibit D hereto as Exhibit D may be amended from time to time upon notice by any Borrower to Administrative Agent.
11.8     Compliance with Laws and Maintenance of Permits.  Borrowers have obtained all governmental consents, franchises, certificates, licenses, authorizations, approvals and permits necessary for the operation of the Borrowers’ businesses, the lack of which would have a Material Adverse Effect.  To the best of each Borrower’s knowledge, all of the Borrowers’ businesses have at all times been operated in accordance with all applicable laws including, without limitation, all Environmental Laws.  Borrowers are in compliance in all material respects with all applicable federal, state, local and foreign statutes, orders, regulations, rules and ordinances (including, without limitation, Environmental Laws and statutes, orders, regulations, rules and ordinances relating to taxes, employer and employee contributions and similar items, securities, ERISA or employee health and safety) the failure to comply with which would have a Material Adverse Effect.  Without limiting the generality of the foregoing, Borrowers have filed with the appropriate governmental authority and are in full compliance with any and all closure, 

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reclamation, rehabilitation or similar plans required in respect of the operation of the Borrowers’ businesses pursuant to applicable law including without limitation any applicable Environmental Laws.  Copies of all such closure, reclamation, rehabilitation or other similar plans have been provided by Borrowers to Administrative Agent.
11.9     Affiliate Transactions.  Except as set forth on Schedule 11.9 or as permitted pursuant to Section 11.3 or 13.4, no Borrower is conducting transactions with any Affiliate other than transactions with Affiliates pursuant to terms that are no less favorable to any Borrower than the terms upon which such transactions would have been made in a comparable transaction at such time on an arm’s length basis by such Borrower with a Person that is not an Affiliate.
11.10     Names and Trade Names.  Except as set forth on Schedule 11.10, during the five (5) years immediately prior to the date of this Agreement, each Borrower’s name has been as set forth on the first page of this Agreement and no Borrower uses any trade or business names, assumed names, fictitious names or division names in the operation of its business.
11.11     Equipment.  Except for Permitted Liens, the Borrowers have good and valid title to and ownership of all Equipment.  
11.12     Enforceability.  This Agreement and the other Loan Documents to which any Borrower is a party are the legal, valid and binding obligations of such Borrower and are enforceable against such Borrower in accordance with their respective terms except as limited by bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or similar federal, provincial or state laws or judicial decisions relating to the rights of creditors.
11.13     Solvency.  Each Borrower is, after giving effect to the transactions contemplated hereby, solvent, able to pay its debts as they become due, has capital sufficient to carry on its business, now owns property having a value both at fair valuation and at present fair saleable value greater than the amount required to pay its debts, and will not be rendered insolvent by the execution and delivery of this Agreement or any of the other Loan Documents to which it is a party or by completion of the transactions contemplated hereunder or thereunder.
11.14     Indebtedness.  Except as set forth on Schedule 11.14 or the Indebtedness evidenced by the Secured Notes and the Secured Term Loan and the issuance by Absaloka of preferred equity to a third party that purchases such preferred equity in connection with an Indian Coal Tax Credit Transaction, no Borrower is obligated (directly or indirectly), for any loans or other indebtedness for borrowed money other than the Loans.  
11.15     Margin Security and Use of Proceeds.  None of the proceeds of the Loans hereunder shall be used for the purpose of purchasing or carrying any margin securities or for the purpose of reducing or retiring any indebtedness which was originally incurred to purchase any margin securities or for any other purpose not permitted by Regulation U of the Board of Governors of the Federal Reserve System as in effect from time to time.
11.16     Parent, Subsidiaries and Affiliates.  Except as set forth on Schedule 11.16 no Borrower has any Parents, Subsidiaries or other Affiliates or divisions, nor is any Borrower engaged in any joint venture or partnership with any other Person that is not a Borrower. 

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11.17     No Defaults.  No Borrower is in default under any material contract, lease or commitment to which it is a party which default would have a Material Adverse Effect, nor does any Borrower know of any dispute regarding any contract, lease or commitment which would have a Material Adverse Effect.
11.18     Employee Matters.  Except as set forth on Schedule 11.18, (a) neither any Borrower nor any of its employees are subject to any collective bargaining agreement, (b) no petition for certification or union election is pending with respect to the employees of any Borrower and no union or collective bargaining unit has sought such certification or recognition with respect to the employees of any Borrower and (c) there are no strikes, slowdowns, work stoppages or controversies pending or, to the knowledge of the Borrowers, threatened between any Borrower and its employees.  Except as set forth on Schedule 11.18, no Borrower is a party to any employment contract with any officer or director of any Borrower.
11.19     Intellectual Property.  Each Borrower possesses adequate licenses, patents, patent applications, copyrights, service marks, trademarks, trademark applications, tradestyles and trade names to continue to conduct its business as heretofore conducted by it except to the extent that the failure to possess such items would not have a Material Adverse Effect.
11.20     Environmental Matters.  Except as set forth on Schedule 11.20, no Borrower has generated, used, stored, treated, transported, manufactured, handled, produced or disposed of any Hazardous Materials, on or off its premises (whether or not owned by it) in any manner which at any time violated any applicable Law including, without limitation, any Environmental Laws or any license, permit, certificate, approval or similar authorization thereunder, other than any violations that would not reasonably be expected to have a Material Adverse Effect, and the operations of each Borrower comply with all Environmental Laws and all licenses, permits, certificates, approvals and similar authorizations thereunder including, without limitation, any and all closure, reclamation, rehabilitation or similar plans required in respect of the operation of the Borrowers’ businesses, other than to the extent any noncompliance would not be reasonably expected to have a Material Adverse Effect.  There has been no proceeding, complaint, order, directive, claim, citation or notice by any governmental authority or any other Person against or to any Borrower or, to each Borrower’s knowledge, any investigation of any Borrower, nor is any proceeding, or to each Borrower’s knowledge, investigation, pending or, to each Borrower’s knowledge, threatened with respect to any non-compliance with or violation of the requirements of any Environmental Law by any Borrower including, without limitation, any non-compliance with or violation of any and all closure, reclamation, rehabilitation or similar plans required in respect of the operation of the Borrowers’ businesses or the release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials or any other environmental or health matter, which would have a Material Adverse Effect.  No Borrower has any material liability (contingent or otherwise) in connection with a release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials.
11.21     ERISA Matters.  Borrowers have paid and discharged all obligations and liabilities arising under ERISA of a character which, if unpaid or unperformed, would reasonably be expected to have a Material Adverse Effect.  

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11.22     Investment Company Act.  No Borrower is an “investment company” or a company “controlled” by an “investment company” or a “subsidiary” of an “investment company” within the meaning of the Investment Company Act of 1940.
11.23     Anti-Terrorism Laws.   
(a)No Borrower (and, to the knowledge of each Borrower, no joint venture or subsidiary thereof) is in violation in any material respect of any United States Requirements of Law relating to terrorism, sanctions or money laundering (the “Anti-Terrorism Laws”), including the United States Executive Order No. 13224 on Terrorist Financing (the “Anti-Terrorism Order”) and the USA Patriot Act.
(b)No Borrower (and, to the knowledge of each Borrower, no joint venture or subsidiary thereof) (i) is listed in the annex to, or is otherwise subject to the provisions of, the Anti-Terrorism Order, (ii) is owned or controlled by, or acting for or on behalf of, any person listed in the annex to, or is otherwise subject to the provisions of, the Anti-Terrorism Order, (iii) commits, threatens or conspires to commit or supports “terrorism” as defined in the Anti-Terrorism Order or (iv) is named as a “specially designated national and blocked person” in the most current list published by OFAC.
(c)No Borrower (and, to the knowledge of each Borrower, no joint venture or Affiliate thereof) (i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any person described in clauses (b)(i) through (b)(iv) above, (ii) deals in, or otherwise engages in any transactions relating to, any property or interests in property blocked pursuant to the Anti-Terrorism Order or (iii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.
11.24     Restricted Subsidiaries.  None of Westmoreland Power or Basin Resources, Inc., conducts any business or owns any assets (each of which constitutes a Restricted Subsidiary as of the date hereof).  WRI does not conduct any business or own any assets other than as conducted or owned on the Closing Date which includes a one percent (1%) equity interest in Absaloka.
11.25     Related Transactions.  Borrowers have caused to be delivered to Administrative Agent as of the Closing Date true and correct copies of the Related Transactions Documents.  As of the Closing Date, the Related Transactions have been consummated (or are being consummated contemporaneously with the initial advance of Loans or issuance of Letters of Credit hereunder) in accordance with the terms of the Related Transaction Documents and applicable law and, except as set forth on Schedule 11.25, all necessary consents and approvals have been obtained in connection therewith.  
11.26     Investigations, Audits, Etc.  Except as set forth on Schedule 11.26, no Borrower is the subject of any review or audit by the IRS or any governmental investigation concerning the violation or possible violation of any law including, without limitation, any Environmental Laws.
11.27     Capitalization; Subsidiaries.  The authorized equity interests and other securities of each Borrower and its Subsidiaries are as set forth on Schedule 11.27.  All issued and 

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outstanding equity interests of each Borrower and its Subsidiaries are duly authorized and validly issued, fully paid, nonassessable, free and clear of all Liens (other than restrictions under the applicable organizational documents of such Borrower and its Subsidiaries and Permitted Liens in connection with the Secured Note Facility) and such equity interests or other securities were issued in compliance with all applicable state, provincial and federal laws concerning the issuance of such securities.  The equity interests of each Borrower and its Subsidiaries are owned of record by the equityholders in the amounts set forth on Schedule 11.27.  As of the Closing Date, no equity interests of any Borrower or any of its Subsidiaries other than those described above are issued and outstanding.  Except as provided in Schedule 11.27, there are no preemptive or other outstanding rights, options, warrants, conversion rights or similar agreements or understandings for the purchase or acquisition from any Borrower or any of its Subsidiaries relating to any equity interests or other securities of any Borrower or any of its Subsidiaries.
11.28     Insurance.  Schedule 11.28 accurately summarizes or lists all of the insurance policies or programs of Borrowers and their Subsidiaries.  To Borrowers’ knowledge, all such policies are in full force and effect, underwritten by financially sound and reputable insurers, sufficient for all applicable requirements of law and otherwise are in compliance with the criteria set forth in Section 12.5.  All such policies will not in any way be affected by, or terminate or lapse by reason of the consummation of any of the transactions contemplated by any of the Transaction Documents.
SECTION 12
AFFIRMATIVE COVENANTS
Until payment and satisfaction in full of all Obligations and termination of this Agreement, unless Borrowers obtain the Required Lenders’ prior written consent waiving or modifying any of Borrowers’ covenants hereunder in any specific instance, each Borrower covenants and agrees as follows:
12.1     Maintenance of Records.  Each Borrower shall at all times keep accurate and complete books, records and accounts with respect to all of the Borrowers’ business activities, in accordance with sound accounting practices and GAAP consistently applied, and shall keep such books, records and accounts, and any copies thereof, only at the addresses indicated for such purpose on Schedule 11.2.
12.2     Notices.  The Borrowers shall:
12.2.1     Locations.  Promptly (but in no event less than ten (10) days prior to the occurrence thereof) notify Administrative Agent of the proposed opening of any new place of business or new location of Collateral, the closing of any existing place of business or location of Collateral, any change of in the location of any Borrower’s books, records and accounts (or copies thereof), the opening or closing of any post office box, the opening or closing of any bank account or, if any of the Collateral consists of Goods of a type normally used in more than one jurisdiction, the use of any such Goods in any state other than a state in which the Borrowers have previously advised Administrative Agent that such Goods will be used.

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12.2.2     Eligible Accounts and Inventory.  Promptly upon becoming aware thereof, notify Administrative Agent if any Account or Inventory identified by Borrowers to Administrative Agent as an Eligible Account or Eligible Inventory becomes ineligible for any reason.
12.2.3     Litigation and Proceedings.  Promptly upon becoming aware thereof, notify Administrative Agent of any actions or proceedings which are pending or threatened against any Borrower which would reasonably be expected to have a Material Adverse Effect.
12.2.4     Names and Trade Names.  Notify Administrative Agent within ten (10) days after the change of its name or the use of any trade or business name, assumed name, fictitious name or division name not previously disclosed to Administrative Agent in writing.
12.2.5     ERISA Matters.  Promptly notify Administrative Agent of (x) the Borrowers’ knowledge of the occurrence of any “reportable event” (as defined in ERISA) which would reasonably be expected to result in the termination by the Pension Benefit Guaranty Corporation (the “PBGC”) of any employee benefit plan (“Plan”) covering any officers or employees of any Borrower, any benefits of which are, or are required to be, guaranteed by the PBGC, (y) receipt of any notice from the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor or (z) any Borrower’s intention to terminate or withdraw from any Plan.
12.2.6     Environmental Matters.  Promptly notify Administrative Agent upon becoming aware of any investigation, proceeding, complaint, order, directive, claim, citation or notice with respect to any non-compliance with or violation of the requirements of any Environmental Law by any Borrower (including, without limitation, any non-compliance with  any closure, reclamation, rehabilitation or other similar plans required in respect of the operation of the Borrowers’ businesses) or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials (other than pursuant to or in accord with a valid permit, consent or approval obtained from the applicable governmental authority) or any other environmental or health matter which affects any Borrower or its business operations or assets or any properties at which any Borrower has transported, stored or disposed of any Hazardous Materials unless the foregoing would not reasonably be expected to have a Material Adverse Effect. 
12.2.7     Default; Material Adverse Change.  Promptly advise Administrative Agent of the occurrence of any event having or causing a Material Adverse Effect, and the occurrence of any Default or Event of Default hereunder.
12.2.8     Secured Term Debt.  Promptly from time to time, copies of any material notices (including all notices of default or acceleration) received from any holder or trustee of or other Person, under or with respect to the Secured Notes or the Secured Term Loan.  
All of the foregoing notices shall be provided by the Borrowers to Administrative Agent in writing.

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12.3     Compliance with Laws and Maintenance of Permits.  Each Borrower shall maintain all governmental consents, franchises, certificates, licenses, authorizations, approvals and permits, the lack of which would have a Material Adverse Effect, and each Borrower shall remain in compliance with all applicable federal, state, provincial, local and foreign statutes, orders, regulations, rules and ordinances (including, without limitation, Environmental Laws and statutes, orders, regulations, rules and ordinances relating to taxes, employer and employee contributions and similar items, securities, ERISA or employee health and safety) including, without limitation, all of the closure, reclamation, rehabilitation or other similar plans required in respect of the operation of the Borrowers’ businesses by any applicable law including, without limitation, any Environmental Laws, the failure with which to comply would have a Material Adverse Effect.  Following any good faith determination by Administrative Agent that there is non-compliance that would have a Material Adverse Effect, or any condition which would have such a Material Adverse Effect and that requires any action by or on behalf of any Borrower in order to avoid any such non-compliance, the Borrowers shall, at their expense, cause an independent environmental consultant acceptable to Administrative Agent to conduct such evaluations as are appropriate and prepare and deliver a report setting forth the results of such assessments, a proposed plan for correcting the non-compliance and an estimate of the costs thereof.
12.4     Inspection and Audits.  Each Borrower shall permit Administrative Agent, or any Persons designated by it, to call at each Borrower’s place of business at any reasonable times during business hours, upon reasonable prior written notice, and, without hindrance or delay, to inspect the Collateral and the other assets of the Borrowers and to inspect, audit, check and make extracts from each Borrower’s books, records, journals, orders, receipts and any correspondence and other data relating to each Borrower’s business, the Collateral or any transactions between the parties hereto, and shall have the right to make such verification concerning each Borrower’s business as Administrative Agent may consider reasonable under the circumstances; provided, that unless an Event of Default has occurred and is continuing, no more than two (2) inspections shall occur in any Fiscal Year.  The costs of any such inspection for which the Borrowers shall be required to reimburse Administrative Agent shall not exceed $25,000 per inspection.  Each Borrower shall furnish to Administrative Agent such information relevant to Administrative Agent’s rights under this Agreement and the other Loan Documents as Administrative Agent shall at any time and from time to time reasonably request.  Administrative Agent, through its officers, employees or agents shall have the right, at any time and from time to time, to verify with any Borrower the validity, amount or any other matter relating to any of such Borrower’s Accounts, by mail, telephone, telecopy, electronic mail, or otherwise.  Each Borrower authorizes Administrative Agent and its agents to discuss the affairs, finances and business of such Borrower with any officers, employees or directors of such Borrower or with its Parent or any Affiliate or the officers, employees or directors of its Parent or any Affiliate, and to discuss the financial condition of each Borrower with such Borrower’s independent public accountants.  Any such discussions shall be without liability to Administrative Agent or to the Borrowers’ independent public accountants, so long as the Borrowers are given a reasonable opportunity to be present for any such discussions.  The Borrowers shall pay to Administrative Agent all reasonable customary fees and all costs and out-of-pocket expenses incurred by Administrative Agent in the exercise of its rights under this Section 12.4, and all of such fees, costs and expenses shall constitute Obligations hereunder, shall be payable on demand, and, until paid, 

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shall bear interest at the highest rate then applicable to Loans hereunder.  Any Lender may accompany Administrative Agent on any such audit or inspection at its own cost.
12.5     Insurance.  The Borrowers shall:
12.5.1     Casualty Insurance; Business Interruption Insurance.  Keep the Collateral and other assets of the Borrowers properly housed and insured for the full insurable value thereof against loss or damage by fire, theft, explosion, sprinklers, collision and such other risks as are customarily insured against by Persons engaged in businesses similar to that of the Borrowers, with such companies, in such amounts, with such deductibles, and under policies in such form, as shall be satisfactory to Administrative Agent.  Original (or certified) copies of such policies of insurance have been or shall be, within ninety (90) days after the date hereof, delivered to Administrative Agent, together with evidence of payment of all premiums therefor, and shall contain an endorsement, in form and substance acceptable to Administrative Agent, showing loss under such insurance policies payable to Administrative Agent.  Such endorsement, or an independent instrument furnished to Administrative Agent, shall provide that the insurance company shall give Administrative Agent at least thirty (30) days written notice before any such policy of insurance is altered or canceled and that no act, whether willful or negligent, or default of the Borrowers or any other Person shall affect the right of Administrative Agent to recover under such policy of insurance in case of loss or damage.  In addition, within thirty (30) days after the date of this Agreement, each Borrower shall cause its insurance broker to execute and deliver to Administrative Agent an agreement in form and substance acceptable to Administrative Agent providing that all proceeds of its business interruption insurance policies shall be paid to Administrative Agent for application to the Obligations, or, upon satisfaction of all then-outstanding Obligations, to the Borrowers.  The Borrowers hereby direct all insurers under all policies of insurance to pay all proceeds payable thereunder in excess of $500,000 directly to Administrative Agent at any time that Obligations are outstanding, subject to any requirements of the Intercreditor Agreement.  Subject to the requirements of the Intercreditor Agreement, the Borrowers irrevocably make, constitute and appoint Administrative Agent (and all officers, employees or agents designated by Administrative Agent) as each Borrower’s true and lawful attorney (and agent-in-fact), effective only during any period(s) when any Obligations are outstanding, for the purpose of making, settling and adjusting claims under such policies of insurance, endorsing the name of the Borrowers on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and making all determinations and decisions with respect to such policies of insurance; provided however, that if no Event of Default shall have occurred and is continuing, the Borrowers may make, settle and adjust claims involving less than $500,000 in the aggregate without Administrative Agent’s consent.  If no Obligations are outstanding at the time that Administrative Agent receives any insurance proceeds, Administrative Agent shall deliver 100% of such insurance proceeds to the Borrowers.  If any Obligations are outstanding at the time that Administrative Agent receives any insurance proceeds, provided no Default or Event of Default exists, Administrative Agent shall deliver to Borrower the lesser of (a) $500,000 of such insurance proceeds or (b) 100% of such insurance proceeds, which Borrower shall use to repair or replace the affected property within 180 days (or such longer period of time as agreed to by Administrative Agent) of receipt of such proceeds.  Any insurance proceeds received by Administrative Agent that are not delivered to the Borrowers for the replacement or repair of their properties shall be applied by Administrative 

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Agent to the Obligations with any excess after application to the Obligations returned to the Borrowers.
12.5.2     Liability Insurance.  Maintain, at its expense, such public liability and third party property damage insurance as is customary for Persons engaged in businesses similar to that of the Borrowers with such companies and in such amounts, with such deductibles and under policies in such form as shall be satisfactory to Administrative Agent and original (or certified) copies of such policies have been or shall be, within ninety (90) days after the date hereof, delivered to Administrative Agent, together with evidence of payment of all premiums therefor; each such policy shall contain an endorsement showing Administrative Agent as additional insured thereunder as its interests appear and providing that the insurance company shall give Administrative Agent at least thirty (30) days’ written notice before any such policy shall be altered or canceled.
12.5.3     Administrative Agent May Purchase Insurance.  If the Borrowers at any time or times hereafter shall fail to obtain or maintain any of the policies of insurance required above (and provide evidence thereof to Administrative Agent) or to pay any premium relating thereto, then Administrative Agent, without waiving or releasing any obligation or default by the Borrowers hereunder, may (but shall be under no obligation to) obtain and maintain such policies of insurance and pay such premiums and take such other actions with respect thereto as Administrative Agent deems advisable upon notice to the Representative.  Such insurance, if obtained by Administrative Agent, may, but need not, protect the Borrowers’ interests or pay any claim made by or against the Borrowers with respect to the Collateral.  Such insurance may be more expensive than the cost of insurance the Borrowers may be able to obtain themselves and may be cancelled only upon the Borrowers providing evidence that they have obtained the insurance as required above.  All sums disbursed by Administrative Agent in connection with any such actions, including, without limitation, court costs, expenses, other charges relating thereto and reasonable attorneys’ fees, shall constitute Loans hereunder, shall be payable within five (5) Business Days after receipt of demand thereof from Administrative Agent, by the Borrowers to Administrative Agent and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder.  This provision shall constitute the notice to the Borrowers required pursuant to paragraph (3) of section 180/10 of Chapter 815 of the Illinois Compiled Statutes (2004). 
12.6     Collateral.  The Borrowers shall keep the Collateral in good condition, repair and order (normal wear and tear and obsolete equipment excepted) and shall make all necessary repairs to the Equipment and replacements thereof so that the operating efficiency and the value thereof shall at all times be preserved and maintained in all material respects.  The Borrowers shall permit Administrative Agent to examine any of the Collateral pursuant to Section 12.4, and shall, within five (5) Business Days after receiving a request therefor from Administrative Agent, deliver to Administrative Agent any and all evidence of ownership of any of the Equipment including, without limitation, certificates of title and applications of title.  The Borrowers shall, at the request of Administrative Agent, indicate on its records concerning the Collateral a notation, in form satisfactory to Administrative Agent, of the security interest of Administrative Agent hereunder.

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12.7     Use of Proceeds.  The Borrowers shall use the proceeds of the Loans solely for (i) working capital purposes and (ii) other business purposes of the Borrowers.
12.8     Taxes.  Each Borrower shall file all required tax returns and pay all of its taxes when due, subject to any extensions granted by the applicable taxing authority, including, without limitation, taxes imposed by federal, provincial, state or municipal agencies, and shall cause any liens for taxes to be promptly released; provided, that a Borrower shall not be required to pay any such tax so long as (i) the Borrowers are contesting the payment of such taxes in good faith by appropriate proceedings, (ii) the Borrowers have created and maintain adequate reserves on their books in accordance with GAAP for such taxes; and (iii) the contesting of any such payment does not give rise to a lien for taxes in an amount in excess of $500,000 in the aggregate; and (iv) Borrowers keep on deposit with Administrative Agent (such deposit to be held without interest) or a reserve is maintained against Borrowers’ availability to borrow money under Section 2.1, in either case, in an amount of money which, in the sole judgment of Administrative Agent, is sufficient to pay such taxes and any interest or penalties that may accrue thereon; and (v) if Borrowers fail to prosecute such contest with reasonable diligence, Administrative Agent may apply the money so deposited in payment of such taxes.  If any Borrower fails to pay any such taxes and in the absence of any such contest by such Borrower, Administrative Agent may (but shall be under no obligation to) advance and pay any sums required to pay any such taxes and/or to secure the release of any lien therefor, and any sums so advanced by Administrative Agent shall constitute Loans hereunder, shall be payable by the Borrowers to Administrative Agent within five (5) Business Days after receipt of demand thereof from Administrative Agent,, and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder.
12.9     Intellectual Property.  Each Borrower shall maintain adequate licenses, patents, patent applications, copyrights, service marks, trademarks, trademark applications, tradestyles and trade names to continue its business as heretofore conducted by it or as hereafter conducted by it unless the failure to maintain any of the foregoing would not reasonably be expected to have a Material Adverse Effect.
12.10     Checking Accounts and Cash Management Services.  Unless Administrative Agent otherwise consents in writing, in order to facilitate Administrative Agent’s maintenance and monitoring of the Collateral, the Borrowers shall maintain, and shall cause each of their Subsidiaries to maintain its general checking/controlled disbursement account and its other deposit accounts with Administrative Agent or Canadian Bank with respect to checking/controlled disbursement and other deposit accounts located in Canada.  The Borrowers shall be responsible for all normal charges assessed thereon.  Notwithstanding the foregoing, the Borrowers shall be permitted to maintain (i) deposit accounts set forth on Schedule 12.10 with each of Goldman Sachs, First Interstate Bank, PNC Bank, National Association, First Citizens Bank and National Bank of Canada, so long as such accounts are either (a) closed within thirty (30) days of the date hereof or (b) subject to a deposit account control agreement in form and substance acceptable to Administrative Agent at all times within thirty (30) days of the date hereof, (ii) a petty cash account with First Citizens Bank, so long as such account does not have more than $100,000 on deposit at any time and (iii) a deposit account with BMO Capital Markets, provided that such deposit account with BMO Capital Markets shall be terminated within forty-five (45) days after the Closing Date.  Schedule 12.10 also sets forth all restricted 

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cash accounts which are utilized exclusively to deposit cash collateral securing reclamation bonds required in the ordinary course of business or reclamation deposits from customers received in the ordinary course of business (collectively, the “Restricted Accounts”).  Such Restricted Accounts are not required to be subject to account control agreements.
12.11     USA Patriot Act, Bank Secrecy Act and Office of Foreign Asset Control.  The Borrowers shall ensure, and cause each other Loan Party to ensure, that (a) no Person who owns a controlling interest in or otherwise controls a Loan Party is or shall be (i) listed on the Specially Designated Nationals and Blocked Person List maintained by the Office of Foreign Assets Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, Executive Order or regulation or (ii) a Person designated under Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23, 2001), any related enabling legislation or any other similar Executive Orders, and (b) comply, and cause each other Loan Party to comply, with all applicable Bank Secrecy Act (“BSA”) and anti-money laundering laws and regulations of any applicable jurisdiction including, without limitation, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) and the Criminal Code (Canada).
12.12     Limitation of Activities.  
12.12.1     Limitation on Activities of Absaloka.  The Borrowers and any their Subsidiaries that control Absaloka will cause Absaloka not to hold any material assets, become liable for any material obligations, engage in any trade or business, form any subsidiary, issue any securities or sell any assets or conduct any business activity, except as and to the extent necessary or desirable to enter into, or perform Indian Coal Tax Credit Transactions, which may include, without limitation, the issuance or sale of equity securities of Absaloka to a third party in connection with any Indian Coal Tax Credit Transactions, and the ownership and operation by Absaloka of the other ICTC Excluded Collateral.  
12.12.2     Limitation on Activities of Westmoreland Canada LLC.  The Borrowers will not permit Westmoreland Canada, LLC to engage in any activities other than (a) holding the general partner interest in Westmoreland Canadian Investments, L.P., (b) participating in any intercompany financings with Borrowers hereunder, or (c) activities appropriate or necessary in relation to such financings or its holding of such general partner interest.
12.13     Further Assurances.
(a)Promptly upon request by Administrative Agent, the Borrowers shall and shall cause their Subsidiaries to correct any material defect or error that may be discovered in any Loan Document or in the execution or acknowledgment thereof; and
(b)The Borrowers shall, and shall cause their Subsidiaries to promptly upon reasonable request by Administrative Agent, do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, agreements, certificates, assurances and other instruments as Administrative Agent may reasonably require from time to time in order to (A) carry out more effectively the purposes of the Loan Documents 

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or (B) assure, preserve, protect and confirm more effectively unto Administrative Agent the rights granted or now or hereafter intended to be granted to Administrative Agent under any Loan Document or under any other instrument executed in connection with any Loan Document to which any Borrower is or will be a party.
(c)Except with respect to Unrestricted Subsidiaries, in the event that any person becomes a domestic Subsidiary of any Borrower, such Borrower shall as soon as practicable, but in any event no later than 30 days after the date such Person becomes a domestic Subsidiary of such Borrower (or such later time as Administrative Agent may agree, in its sole discretion) (i) cause such domestic Subsidiary to become a Borrower hereunder by executing and delivering to Administrative Agent a counterpart agreement joining such Subsidiary to this Agreement, and (ii) take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements and certificates reasonably requested by Administrative Agent to ensure all of such domestic Subsidiary’s assets that are of the type described in Section 5.1 hereof are subject to a first priority security interest in favor of Administrative Agent.  In the event that any Person becomes a foreign Subsidiary of any Borrower, and the ownership interests of such foreign Subsidiary are owned by any Borrower or by any domestic Subsidiary thereof, such Borrower shall, or shall cause such domestic Subsidiary to, within 30 days after the date such Person becomes a foreign Subsidiary of any Borrower (or such later time as Administrative Agent may agree in its sole discretion), deliver all such documents, instruments, agreements and certificates and take, or shall cause such domestic Subsidiary to take, all of the actions necessary to grant and to perfect a first priority Lien in favor of Administrative Agent in 65% of such ownership interests.  With respect to each such Subsidiary, such Borrower shall promptly send to Administrative Agent written notice setting forth the date on which such Person became a Subsidiary of such Borrower.
SECTION 13
NEGATIVE COVENANTS
Until payment and satisfaction in full of all Obligations and termination of this Agreement, unless Borrowers obtain the Required Lenders’ prior written consent waiving or modifying any of Borrowers’ covenants hereunder in any specific instance, each Borrower agrees as follows: 
13.1     Guaranties.  Borrowers shall not, and shall not permit any other Borrower to assume, guarantee or endorse, or otherwise become liable in connection with, the obligations of any Person, except for (i) guarantees from any Borrower in favor of another Borrower (other than WCC BV), (ii) by endorsement of instruments for deposit or collection or similar transactions in the ordinary course of business or (iv) as permitted by Section 13.13 hereof. 
13.2     Indebtedness.  Borrowers shall not, and shall not permit any other Borrower to create, incur, assume or become obligated (directly or indirectly) for, any loans or other indebtedness for borrowed money other than the Loans, except that Borrowers may (i) borrow money from a Person other than Lender on an unsecured and subordinated basis if a subordination agreement in favor of Administrative Agent and Lenders and in form and substance satisfactory to Administrative Agent in its sole discretion is executed and delivered to 

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Administrative Agent relative thereto; (ii) maintain their present indebtedness listed on Schedule 11.14 hereto; (iii) incur unsecured indebtedness to trade creditors in the ordinary course of business; (iv) incur purchase money indebtedness or Capital Lease obligations in connection with Capital Expenditures; (v) incur the Secured Term Debt as described in the Secured Debt Documents as in effect on the date hereof so long as such Secured Term Debt is at all times subject to the subordination provisions set forth in the Intercreditor Agreement as in effect on the date hereof; and (vi) incur operating lease obligations requiring payments not to exceed $500,000 in the aggregate during any Fiscal Year of Borrowers.  In addition, any Borrower may create, incur, assume or be obligated (directly or indirectly) for, any loans or other indebtedness for borrowed money from any other Borrower; provided that such indebtedness is subordinate to the Obligations pursuant to a subordination agreement in form and substance acceptable to Administrative Agent.
13.3     Liens.  The Borrowers shall not, and shall not permit any other Borrower to grant or permit to exist (voluntarily or involuntarily) any lien, claim, security interest, hypothec or other encumbrance whatsoever on any of its assets, other than Permitted Liens. 
13.4     Mergers, Sales, Acquisitions, Subsidiaries and Other Transactions Outside the Ordinary Course of Business.  Except as described on Schedule 13.4 hereto and as provided in Section 13.4.1, the Borrowers shall not, and shall not permit any other Borrower to (i) enter into any merger or consolidation; (ii) change the jurisdiction of any Borrower’s organization or enter into any transaction which has the effect of changing any Borrower’s jurisdiction of organization; (iii) sell, lease or otherwise dispose of any of its assets other than the sale, lease or dispositions of assets (a) in the ordinary course of business, (b) that are no longer used or useful in the conduct of such Borrower’s business, (c) from one Borrower to another Borrower, (d) the purchase by Westmoreland Parent of Oxford GP in accordance with the Oxford Purchase Agreement, the Initial Oxford Dropdown and the other transactions described in and contemplated under the Oxford Purchase Agreement or (f)  the sale by WRI of 99.99% of the Equity Interests in Absaloka in connection with Indian Coal Tax Credit Transactions, in each case, in accordance with the terms thereof; (iv) enter into any Acquisition other than (a) Permitted Investments and (b) upon at least 10 days’ notice to Administrative Agent, subject Acquisitions by one or more Borrowers (other than WCC BV) of the assets, stock or other equity interest of one or more other Borrowers located within the same country of corporate organization (provided, however, that any Borrower organized in Canada may merge with any Borrower organized in the United States to the extent that the Borrower organized in the United States is the survivor); or (v) enter into any other transaction outside the ordinary course of the Borrowers’ business, including, without limitation, any purchase, redemption or retirement of any shares of any class of its stock or any other equity interest (other than the purchase, redemption or retirement of any Borrowers stock held by officers, directors or employees or former officers directors or employees (or their transferees, estates or beneficiaries under their estates), upon their death, disability, retirement, severance or termination of employment or service pursuant to any employee benefit plan or agreement or awarded to an employee to pay for the taxes payable by such employee upon such grant or award or the vesting thereof, in all cases, in an amount not to exceed $500,000 in the aggregate in any fiscal year), and any issuance of any shares of, or warrants or other rights to receive or purchase any shares of, any class of its stock or any other equity interest, other than pursuant to any employee benefit plan or agreement.  Except in connection with any transaction described on Schedule 13.4 hereto or in connection 

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with a Permitted Acquisition (provided that the Borrowers comply with the provisions of Section 12.12 herein), the Borrowers shall not form any Subsidiaries or enter into any joint ventures or partnerships with any other Person other than another Borrower without the prior written consent of Administrative Agent.  Notwithstanding the foregoing, the Borrowers may from time to time make MLP Asset Transfers, MLP Equity Transfers and Permitted GP Transfers (and form any Subsidiary for the purpose of making an MLP Equity Transfer of all or part of the outstanding and issued Equity Interest of such Subsidiary upon approval by the Lenders as to the treatment and transfer of all underlying liabilities or a representative pro rata portion of such liabilities in the case of a transfer of less than 100% of the equity in connection with a MLP Equity Transfer) associated with the entity whose equity or assets are associated with such transfer in the case of the formation and/or investment in any joint venture) (each a “Disposition”), provided at least thirty (30) days prior to such Disposition, the Borrowers shall deliver a compliance certificate to the Administrative Agent (in form and substance acceptable to the Administrative Agent) certifying to the satisfaction of each of the following conditions (with supporting calculations as required to support such certifications, which shall be acceptable to the Administrative Agent):  (i) no Default or Event of Default exists or would be caused by such Disposition, (ii) the Canadian EBITDA and the US EBITDA of all of the remaining Borrowers, determined on a pro-forma basis for the Canadian Borrowers and the US Borrowers after giving effect to the contemplated Disposition, is sufficient to satisfy the Fixed Charge Coverage ratios set forth in Section 14.1 herein, for each of the testing periods for each of the trailing twelve months following such transfer, (iii)  the consideration received by Borrowers in connection with any Permitted MLP Transfer (including any limited partnership units in Oxford determined based on the closing price on the applicable national trading exchange for such limited partnership units received in exchange thereof as of the date of such transfer) must be in excess of the greater of (x) five (5) times the EBITDA (determined on a basis consistent with US EBITDA or Canadian EBITDA, as applicable) of the Borrower whose assets are subject to Disposition for the most recent trailing twelve month period (provided, however, if the Borrowers enter into any joint venture associated with a Permitted MLP Transfer which includes the transfer of the equity or the assets of the underlying Borrower the subject of such Permitted MLP Transfer of less than one hundred percent (100%) of such equity or assets, EBITDA for such purposes shall be calculated on a pro rata basis equal to the percentage of the EBITDA of the Borrower whose assets or equity is subject to transfer) and (y) the book value (determined in accordance with GAAP) of all Collateral transferred as reflected on the most recent balance sheet of the Borrowers, (iv) at least fifty percent (50%) of the consideration received for such Disposition must be paid in cash, (v) all liabilities associated with such Borrower subject to such Disposition must be assumed by the transferor in connection with such Disposition, (vi) all proceeds from such Disposition constituting Collateral hereunder shall be utilized to repay all outstanding Revolving Loans (with a permanent reduction of the Revolving Loan Commitments to the extent deemed necessary by the Administrative Agent) upon receipt, with all remaining proceeds utilized to repay the Secured Term Debt, and (vii) the Borrowers have Excess Availability of at least $20,000,000 under the US Revolving Loan Commitment and $15,000,000 under the Canadian Revolving Loan Commitment, plus cash on deposit after giving effect to such transfer, provided that with respect to the inclusion of any cash balances on deposit, such cash shall be determined after giving effect to all required and/or anticipated payments on the Secured Notes and the Secured Term Loan resulting from such transfer. In addition to the foregoing, the Borrowers shall provide the Administrative Agent with copies of all 

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documentation requested by the Administrative Agent evidencing such Disposition, which will be in form and substance acceptable to the Administrative Agent.
13.5     Dividends and Distributions.  Upon the occurrence and during the continuance of an Event of Default, no Borrower may declare or pay any dividend or other distribution (whether in cash or in kind) on any class of its equity interests other than dividends and distributions to another Borrower hereunder; provided that, subject to applicable Delaware law, Westmoreland Parent may pay dividends on its Series A Convertible Exchangeable Preferred Stock, not to exceed $340,000 in any fiscal quarter, that are contemplated by Westmoreland Parent’s Restated Certificate of Incorporation, as amended, regardless of whether an Event of Default has occurred and is continuing. 
13.6     Investments/Loans.  The Borrowers shall not and shall not permit any Borrower to purchase or otherwise acquire, the obligations or stock of any Person, other than as permitted pursuant to Section 13.4 hereof, nor shall the Borrowers lend or otherwise advance funds to any Person (other than to another Borrower), other than loans and advances that are Permitted Investments. 
13.7     Fundamental Changes, Line of Business.  No Borrower shall (i) amend its organizational documents or change its Fiscal Year unless (w) such actions would not have a Material Adverse Effect; (x) such actions would not adversely affect the obligations of any Borrower or any Loan Party to Administrative Agent and Lenders; (y) such actions would not adversely affect the interpretation of any of the terms of this Agreement or the other Loan Documents and (z) Administrative Agent has received five (5) days’ prior written notice of such amendment or change; or (ii) enter into a new line of business materially different from the Borrowers’ current businesses. 
13.8     Reserved.  
13.9     Affiliate Transactions.  Except as set forth on Schedule 11.9 hereto, the Initial Oxford Dropdown, any Permitted MLP Transfer, or as permitted pursuant to Section 11.3 hereof, the Borrowers shall not conduct or permit any other Borrower to conduct, transactions with Affiliates other than transactions with Affiliates pursuant to terms that are no less favorable to any Borrower than the terms upon which such transactions would have been made in a comparable transaction at such time on an arm’s length basis by such Borrower with a Person that is not an Affiliate; provided, however, that the foregoing restrictions shall not apply to intra-company transactions among the Borrowers.  
13.10     Settling of Accounts.  Except for discount for prompt payment in the ordinary course of business, the Borrowers shall not settle or adjust any Account identified by the Borrowers as an Eligible Account, except that if no Event of Default has occurred and is continuing, the Borrowers may settle or adjust any Eligible Account upon providing notice to Administrative Agent of such settlement or adjustment, at which time the Eligible Account will be removed from the Revolving Loan Availability.  Following the occurrence and during the continuance of an Event of Default, the Borrowers shall not settle or adjust any Account without the consent of Administrative Agent.

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13.11     Restriction of Amendments to Certain Documents.  The Borrowers shall not, nor shall they permit any Subsidiary to, amend or otherwise modify, or waive any rights under, any Secured Debt Documents if, in any case, such amendment, modification or waiver would be adverse in any material respect to the interests of Administrative Agent (and unless in compliance with the terms of the Intercreditor Agreement). 
13.12     Payments on Secured Term Debt.  Borrower shall not, nor shall it permit any Subsidiary to, make any redemption, prepayment, defeasance, repurchase of any payments in respect of any Secured Term Debt except in accordance with the terms of the Intercreditor Agreement. 
13.13     Contingent Obligations.  The Borrowers shall not, nor shall the Borrowers permit any of their Subsidiaries directly or indirectly to, create or become or be liable with respect to any Contingent Obligation except:  (a) those resulting from endorsement of negotiable instruments for collection, deposit or negotiation and warranties of products or services, in each case incurred in the ordinary course of business; (b) those arising under guaranties and indemnities of or relating to the Obligations or under guaranties permitted under Section 13.1; and (c) those arising under Hedging Agreements.
13.14     Restricted Subsidiaries.  Without the prior written consent of Administrative Agent, no Borrower shall (a) transfer any asset (including, but not limited to, any cash or Cash Equivalents) or make any investment in (other than its ownership interests in) or make any loan to any of Westmoreland Power, Absaloka, Westmoreland Risk Management, WC Investments, WCC BV, Westmoreland Canada, WEC, Basin Resources, Inc., WES, Oxford GP,  Oxford or any of its Affiliates or any other Subsidiary formed for the purpose of consummating a Permitted MLP Transfer following the completion of such Permitted MLP Transfer, or (b) permit Westmoreland Power, Basin Resources, Inc., WCC BV, or WES to own any assets or conduct any business, other than activities incidental to their organization and existence.  Notwithstanding the foregoing, provided no Default or Event of Default exists or would be caused thereby, Westmoreland Parent may make loans to or otherwise make additional investments in (i) Westmoreland Power to fund certain post-retirement medical liabilities of former employees of Westmoreland Power upon the written consent of Administrative Agent, (ii) Westmoreland Risk Management in an aggregate amount not to exceed $2,000,000 in any Fiscal Year, it being understood and agreed that the foregoing restriction shall not prevent the payment of insurance premiums by the Borrowers to Westmoreland Risk Management in the ordinary course of business and (iii) WC Investments in an aggregate amount not to exceed $250,000 in any Fiscal Year.  Notwithstanding any of the foregoing or any other provision in this Agreement to the contrary, WES shall not guarantee, nor otherwise provide direct credit support, nor be required to guaranty, nor be deemed to have guaranteed the payment and performance of any of the Obligations nor be deemed to be directly or indirectly liable for or provide direct credit support for any of the Obligations, notwithstanding any statement herein as to joint and several liability.

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SECTION 14
FINANCIAL COVENANTS
The Borrowers shall maintain and keep in full force and effect each of the financial covenants set forth below:  
14.1     Fixed Charge Coverage.
14.1.1     US Consolidated Fixed Charge Coverage.  Westmoreland Parent and its US Subsidiaries shall not permit the ratio of US EBITDA to US Fixed Charges for each period of four consecutive quarters beginning December 31, 2014 to be less than 1.15:1.0 tested on the last day of each quarter. 
14.1.2     Canadian Consolidated Fixed Charge Coverage.  The Canadian Borrowers shall not permit the ratio of Canadian EBITDA to Canadian Fixed Charges for each period of four consecutive quarters beginning December 31, 2014 to be less than 1.15:1.0 tested on the last day of each quarter. 
14.2     Accounting Matters.  If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either any Borrower or any Lender shall so request, Administrative Agent and the Borrowers shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrowers shall provide to the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.
SECTION 15
DEFAULT
The occurrence of any one or more of the following events shall constitute an “Event of Default” by the Borrowers hereunder:
15.1     Payment.  The failure of any Borrower to pay within three (3) days after due or declared due, any of the Obligations constituting principal, interest or fees; provided, however, that the failure to pay such Obligations on the Maturity Date shall constitute an immediate Event of Default hereunder.
15.2     Breach of this Agreement and the other Loan Documents.  The failure of any Borrower to perform, keep or observe any of the covenants, conditions, promises, agreements or obligations of such Borrower under this Agreement or any of the other Loan Documents (other than breaches described in Section 15.1); provided that any such failure by any Borrower under subsections 12.1, 12.2.1, 12.2.3, 12.2.4, 12.2.5, 12.2.6, 12.3 and 12.8 of this Agreement shall not constitute an Event of Default hereunder until the fifteenth (15th) day following the earlier of the 

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date on which (i) an executive officer of any Borrower has become aware of such default or (ii) notice of such default has been received by any Borrower from Administrative Agent.
15.3     Breach of Representations and Warranties.  The making or furnishing by any Borrower to Administrative Agent of any representation, warranty, certificate, schedule, report or other communication within or in connection with this Agreement or the other Loan Documents or in connection with any other agreement between such Borrower and Administrative Agent or any Lender, which is untrue or misleading in any material respect as of the date made.
15.4     Loss of Collateral.  The loss, theft, damage or destruction of any of the Collateral not covered by insurance in an amount in excess of $1,000,000 in the aggregate for all such events during any Fiscal Year as determined by Administrative Agent in its sole discretion exercised in good faith.
15.5     Levy, Seizure or Attachment.  The making or any attempt by any Person to make any levy, seizure or attachment upon any of the Collateral in excess of $1,000,000.
15.6     Bankruptcy or Similar Proceedings.  The commencement of any proceedings in bankruptcy by or against any Borrower or for the liquidation or reorganization of any Borrower, or alleging that such Borrower is insolvent or unable to pay its debts as they mature, or for the readjustment or arrangement of any Borrower’s debts, whether under the United States Bankruptcy Code or the Canadian Bankruptcy Law, as applicable, or under any other law, whether state, provincial or federal, now or hereafter existing, for the relief of debtors, or the commencement of any analogous statutory or non-statutory proceedings involving any Borrower; provided, however, that if such commencement of proceedings against such Borrower is involuntary, such action shall not constitute an Event of Default unless such proceedings are not dismissed within sixty (60) days after the commencement of such proceedings, though Administrative Agent and Lenders shall have no obligation to make Loans to or issue, or cause to be issued, Letters of Credit on behalf of any Borrower during such sixty (60) day period or, if earlier, until such proceedings are dismissed.
15.7     Appointment of Receiver.  The appointment of a receiver or trustee for any Borrower, for any substantial part of the Collateral or for any substantial part of any Borrower’s assets or the institution of any proceedings for the dissolution, or the full or partial liquidation, or the merger or consolidation, of any Borrower which is a corporation, limited liability company or a partnership; provided, however, that if such appointment or commencement of proceedings against such Borrower is involuntary, such action shall not constitute an Event of Default unless such appointment is not revoked or such proceedings are not dismissed within sixty (60) days after the commencement of such proceedings, though Administrative Agent and Lenders shall have no obligation to make Loans to or issue, or cause to be issued, Letters of Credit on behalf of any Borrower during such sixty (60) day period or, if earlier, until such appointment is revoked or such proceedings are dismissed.
15.8     Judgment.  The entry of any judgments or orders aggregating in excess of $1,000,000 against any Borrower that is not covered by insurance and that which remains 

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unsatisfied or undischarged and in effect for sixty (60) days after such entry without a stay of enforcement or execution.
15.9     Change of Control.  The failure of (i) Westmoreland Parent to own and have voting control of one hundred percent (100%) of the issued and outstanding voting equity interests of each of Westmoreland Energy (except as described on Schedule 13.4 hereto), Westmoreland Resources, Kemmerer, Coal Sales, Westmoreland Power, Westmoreland Mining, Westmoreland Canada or WCC, (ii) Westmoreland Energy or any other Borrower to, directly or indirectly, own and have voting control of one hundred percent (100%) of the issued and outstanding equity interests of each of Westmoreland NC, WEI and Westmoreland Roanoke, (iii) Westmoreland Mining to own and have voting control of less than one hundred percent (100%) of the issued and outstanding equity interests of Westmoreland Energy, Texas Westmoreland, Westmoreland Savage or Dakota Westmoreland, (iv) Westmoreland Canada to, directly or indirectly, own and have voting control of less than one hundred percent (100%) of the issued and outstanding equity interests of WC LLC, WC Investments, WCC BV, Westmoreland Canada, WPR, PMRL, CVRI, PCL, Willowvan or PRC, (v) Westmoreland Resources or any other Borrower to, directly or indirectly, own and have voting control of less than one hundred percent (100%) of the issued and outstanding equity interests of its Subsidiaries in effect on the date hereof, (vi) Westmoreland Parent shall lose operational control of Absaloka, other than to any other Borrower, (vii) Westmoreland Parent to own and have voting control of one hundred percent (100%) of the issued and outstanding voting equity interests of Oxford GP, (viii) Westmoreland Parent to own and have voting control of at least fifty-one percent (51%) of the issued and outstanding voting equity interests of Oxford, (ix) Oxford Resource to own and have voting control of one hundred percent (100%) of the issued and outstanding voting equity interests of Oxford Resource Finance Corporation and Oxford Mining Company LLC, or (x) Oxford Mining to own and have voting control of one hundred percent (100%) of the issued and outstanding voting equity interests of each of its Subsidiaries (other than non-wholly owned Subsidiaries formed or acquired in connection with any Permitted MLP Transfer in accordance with Section 13.4 herein). 
15.10     Material Adverse Change.  Any material adverse change in the Collateral, business, property, assets, operations or condition, financial or otherwise of the Borrowers, taken as a whole, as determined by Administrative Agent in its reasonable credit judgment exercised in good faith or the occurrence of any event which, in Administrative Agent’s reasonable credit judgment exercised in good faith, would reasonably be expected to have a Material Adverse Effect.
15.11     Secured Term Debt.  Any Borrower defaults in the performance of any payment or other material obligation in the Secured Debt Documents (after any applicable grace or cure period provided for in the Secured Debt Documents) or any other “Event of Default” (as defined in the applicable Secured Debt Documents) shall occur under any Secured Debt Document (including, but not limited to, the Secured Note Indenture and the Secured Term Loan Credit Agreement).
15.12     Other Indebtedness.  A failure of any Borrower to pay when due or within any applicable grace period, whichever is later, any principal or interest on other Indebtedness or any Contingent Obligations if such failure would reasonably be expect to have a Material Adverse 

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Effect or (ii) breach of default of a Borrower of any covenants, conditions, promises, agreements or obligations of a Borrower under written agreements entered into in connection with such other Indebtedness or Contingent Obligations, if such breach, default or occurrence would reasonably be expected to have a Material Adverse Effect.
15.13     ERISA.  (i) A contribution failure in excess of $1,000,000 occurs with respect to any Pension Plan sufficient to give rise to a Lien under Section 302 of ERISA or Internal Revenue Code Section 412; or (ii) there shall occur an ERISA Event that would reasonably be expected to cause any Borrower or any member of its Controlled Group to incur a liability or obligation to anyone in excess of $1,000,000.  
15.14     Invalidity of Subordination Provisions, etc.  Any subordination provision in any document or instrument governing Secured Term Debt (including, but not limited to, the Intercreditor Agreement), or any subordination provision in any subordination agreement that relates to any Secured Term Debt, or any subordination provision in any guaranty by any Borrower of any Secured Term Debt, shall cease to be in full force and effect, or any Borrower or the holder of any applicable Secured Term Debt shall contest in any manner the validity, binding nature or enforceability of any such provision.
SECTION 16
REMEDIES UPON AN EVENT OF DEFAULT
16.1     Acceleration.  Upon the occurrence and during the continuance of an Event of Default described in Sections 15.7 or 15.8 hereof, all of the Obligations shall immediately and automatically become due and payable, without notice of any kind (provided, however, that notwithstanding the foregoing, Hedging Obligations shall only terminate in accordance with the terms of the relevant Hedging Agreement).  Upon the occurrence of any other Event of Default, the Administrative Agent may, and shall, at the direction of the Required Lenders, in each case in their sole discretion, upon notice to the Representative, declare the Obligations to be immediately due and payable.
16.2     Other Remedies.  Upon the occurrence and during the continuance of an Event of Default, Administrative Agent may, and at the direction of Required Lenders shall, exercise from time to time any rights and remedies available to it under the Uniform Commercial Code, PPSA and any other applicable law in addition to, and not in lieu of, any rights and remedies expressly granted in this Agreement or in any of the other Loan Documents and all of Administrative Agent’s and Lenders’ rights and remedies shall be cumulative and non-exclusive to the extent permitted by law.  In particular, but not by way of limitation of the foregoing, Administrative Agent may, and at the direction of Required Lenders shall, appoint, remove or reappoint by instrument in writing, any Person or Persons, whether an officer or officers or an employee or employees of any Borrower or not, to be an interim receiver, receiver or receivers (hereinafter called a “Receiver,” which term when used herein shall include a receiver and manager) of such Collateral (including any interest, income or profits therefrom).  Any such Receiver shall, to the extent permitted by applicable law, be deemed the agent of such Borrower and not of Administrative Agent or any of the Lenders, and neither Administrative Agent or any of the Lenders shall be in any way responsible for any misconduct, negligence or non-feasance 

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on the part of any such Receiver or its servants, agents or employees.  Subject to the provisions of the instrument appointing it, any such Receiver shall (i) have such powers as have been granted to Administrative Agent or any of the Lenders under this Agreement and (ii) shall be entitled to exercise such powers at any time that such powers would otherwise be exercisable by Administrative Agent or any of the Lenders under this Agreement, which powers shall include, but are not limited to, the power to take possession of the Collateral, to preserve the Collateral or its value, to carry on or concur in carrying on all or any part of the business of any Borrower and to sell, lease, license or otherwise dispose of or concur in selling, leasing, licensing or otherwise disposing of the Collateral.  To facilitate the foregoing powers, any such Receiver may, to the exclusion of all others, including any Borrower, enter upon, use and occupy all premises owned or occupied by any Borrower wherein the Collateral may be situate, maintain the Collateral upon such premises, borrow money on a secured or unsecured basis and use the Collateral directly in carrying on any Borrower’s business or as security for loans or advances to enable the Receiver to carry on any Borrower’s business or otherwise, as such Receiver shall, in its reasonable discretion, determine.  Except as may be otherwise directed by Administrative Agent or any of the Lenders, all money received from time to time by such Receiver in carrying out his/her/its appointment shall be received in trust for and be paid over to Administrative Agent or any of the Lenders and any surplus shall be applied in accordance with applicable law.  Every such Receiver may, in the discretion of Administrative Agent or any of the Lenders, be vested with, in addition to the rights set out herein, all or any of the rights and powers of Administrative Agent or any of the Lenders described in this Agreement, the PPSA or Canadian Bankruptcy Laws.  In addition, but also not by way of limitation of the foregoing, Administrative Agent may, and at the discretion of Required Lenders shall, without notice, demand or legal process of any kind, take possession of any or all of the Collateral (in addition to Collateral of which it already has possession), wherever it may be found, and for that purpose may pursue the same wherever it may be found, and may enter onto any of the Borrowers’ premises where any of the Collateral may be, and search for, take possession of, remove, keep and store any of the Collateral until the same shall be sold or otherwise disposed of, and Administrative Agent shall have the right to store the same at any of the Borrowers’ premises without cost to Administrative Agent or Lenders.  At Administrative Agent’s request, the Borrowers shall, at the Borrowers’ expense, assemble the Collateral and make it available to Administrative Agent at one or more places to be designated by Administrative Agent and reasonably convenient to Administrative Agent and the Borrowers.  Any notification of intended disposition of any of the Collateral required by law will be deemed to be a reasonable authenticated notification of disposition if given in writing at least ten (10) days prior to such disposition and such notice shall (i) describe Administrative Agent and Lenders and the Borrowers, (ii) describe the Collateral that is the subject of the intended disposition, (iii) state the method of the intended disposition, (iv) state that the Borrowers are entitled to an accounting of the Obligations and state the charge, if any, for an accounting and (v) state the time and place of any public disposition or the time after which any private sale is to be made.  Administrative Agent may disclaim any warranties that might arise in connection with the sale, lease or other disposition of the Collateral and has no obligation to provide any warranties at such time.  Any Proceeds of any disposition by Administrative Agent of any of the Collateral may be applied by Administrative Agent to the payment of expenses in connection with the Collateral, including, without limitation, reasonable legal expenses and reasonable attorneys’ fees, and any balance of such Proceeds and all other payments received by Administrative Agent during the continuance of an Event of Default may be applied by 

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Administrative Agent toward the payment of such of the Obligations, and in such order of application as required by the UCC or, if the UCC does not contain such requirements, as Administrative Agent may from time to time elect.  Notwithstanding the foregoing, all Proceeds received by the Administrative Agent from any disposition of or realization upon Collateral owned by the Canadian Borrowers shall only be applied to the Canadian Obligations. In the absence of an Event of Default, the Proceeds from the sale of, or other realization upon, all or any part of the Collateral in payment of the Obligations shall be applied in the following order (unless the provisions of this Agreement specify otherwise):
(a)With respect to all Proceeds of Collateral owned by any US Borrower:
FIRST, to the payment of all expenses and indemnities of Administrative Agent (in its capacity as such), including Attorney Costs, and any other Obligations owing to Administrative Agent in respect of sums advanced by Administrative Agent to preserve the Collateral or to preserve its security interest in the Collateral, until paid in full:
SECOND, to the payment of all of the Obligations in respect of the Swing Line Loans to the Swing Line Lender, until paid in full;
THIRD, to the payment of all of the Obligations consisting of accrued and unpaid interest owing to the Lenders and Letter of Credit fees owing to the L/C Issuer, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause THIRD payable to them, until paid in full;
FOURTH, to the payment of all Obligations consisting of principal owing to the Lenders and Bank Product Obligations owing to Lenders or their Affiliates, ratably among the Lenders and their Affiliates in proportion to the respective amounts described in this clause FOURTH held by them, until paid in full; 
FIFTH, to the payment of the Lenders an amount equal to all Obligations in respect of outstanding Letters of Credit to be held as Cash Collateral in respect of such Obligations;
SIXTH, to the payment of all other Obligations owing to the Lenders until paid in full; and
SEVENTH, to the payment of any remaining Proceeds, if any, to the US Borrowers or to whomever may be otherwise lawfully entitled to receive such amounts.
(b)With respect to all Proceeds of Collateral owned by a Canadian Borrower:
FIRST, to the payment of all expenses and indemnities of Administrative Agent (in its capacity as such), including Attorney Costs, and any other Canadian Obligations owing to Administrative Agent in respect of sums advanced by Administrative Agent to preserve the Collateral owned by any Canadian Borrower 

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or to preserve its security interest in the Collateral owned by any Canadian Borrower, until paid in full:
SECOND, to the payment of all of the Canadian Obligations in respect of the Canadian Swing Line Loans to the Swing Line Lender, until paid in full;
THIRD, to the payment of all of the Canadian Obligations consisting of accrued and unpaid interest owing to the Lenders and Letter of Credit fees owing to the L/C Issuer, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause THIRD payable to them, until paid in full;
FOURTH, to the payment of all Canadian Obligations consisting of principal owing to the Lenders and Bank Product Obligations owing to Lenders or their Affiliates, ratably among the Lenders and their Affiliates in proportion to the respective amounts described in this clause FOURTH held by them, until paid in full; 
FIFTH, to the payment of the Lenders an amount equal to all Canadian Obligations in respect of outstanding Letters of Credit to be held as Cash Collateral in respect of such Canadian Obligations;
SIXTH, to the payment of all other Canadian Obligations owing to the Lenders until paid in full; and
SEVENTH, to the payment of any remaining Proceeds, if any, to the Canadian Borrowers or to whomever may be otherwise lawfully entitled to receive such amounts.
16.3     Credit Bidding.  The Loan Parties and the Lenders hereby irrevocably authorize (and by entering into a Bank Product Agreement, each Bank Product provider shall be deemed to authorize) Administrative Agent, based upon the instruction of the Required Lenders, to Credit Bid and purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (and the Loan Parties shall approve Administrative Agent as a qualified bidder and such Credit Bid as qualified bid) at any sale thereof conducted by Administrative Agent, based upon the instruction of the Required Lenders, under any provisions of the Uniform Commercial Code, as part of any sale or investor solicitation process conducted by any Loan Party, any interim receiver, receiver, receiver and manager, administrative receiver, trustee, agent or other Person pursuant or under any insolvency laws; provided, however, that (i) the Required Lenders may not direct Administrative Agent in any manner that does not treat each of the Lenders equally, without preference or discrimination, in respect of consideration received as a result of the Credit Bid, (ii) the acquisition documents evidencing such purchase shall be commercially reasonable and, to the extent applicable, contain customary protections for minority holders such as among other things, anti-dilution and tag-along rights, (iii) to the extent applicable, any exchanged debt or equity securities must be freely transferable, without restriction (subject to applicable securities laws) and (iv) reasonable efforts shall be made to structure the acquisition in a manner that causes the governance documents pertaining thereto to 

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not impose any obligations or liabilities upon the Lenders individually (such as indemnification obligations).
For purposes of the preceding sentence, the term “Credit Bid” shall mean, an offer submitted by Administrative Agent (on behalf of the Lender group), based upon the instruction of the Required Lenders, to acquire the Collateral of any Loan Party or any portion thereof in exchange for and in full and final satisfaction of all or a portion (as determined by Administrative Agent, based upon the instruction of the Required Lenders) of the claims and Obligations under this Agreement and other Loan Documents.
SECTION 17
CONDITIONS PRECEDENT
17.1     Conditions to Initial Loans.  The obligation of Lender to fund the initial Revolving Loan, and to issue or cause to be issued the initial Letter of Credit, is subject to the satisfaction or waiver on or before the date hereof of the following conditions precedent:
(a)Administrative Agent shall have received each of the agreements, opinions, reports, approvals, consents, certificates and other documents set forth on the closing document list attached hereto as Schedule 17.1(a) (the “Closing Document List”) in each case in form and substance satisfactory to Administrative Agent;
(b)Since December 31, 2013 no event shall have occurred which has had or would reasonably be expected to have a Material Adverse Effect, as determined by the Lenders in their sole discretion, exercised in good faith;
(c)Administrative Agent shall have received payment in full of all fees and expenses payable to it by the Borrowers, or arrangements shall have been made to pay such fees and expenses from the proceeds of the initial Loan, on or before disbursement of the initial Loans hereunder;
(d)Administrative Agent shall have determined that immediately after giving effect to (A) the making of the initial Loans requested to be made on the date hereof, (B) the issuance of the initial Letter of Credit, if any, requested to be made on such date, (C) the payment of all fees due upon such date, (D) the payment or reimbursement by the Borrowers of Administrative Agent and Lenders for all closing costs and expenses incurred in connection with the transactions contemplated hereby, and (E) the payment of all accounts payable more than thirty (30) days past due, the Borrowers will have Excess Availability of not less than $7,500,000 under the US Revolving Loan Commitment and $10,000,000 under the Canadian Revolving Loan Commitment. 
(e)The Related Transactions (other than the Oxford Acquisition) shall have been consummated in accordance with the Related Transaction Documents and applicable law; and Administrative Agent shall have received a pro forma consolidated balance sheet of the Borrowers and their Subsidiaries, and Oxford and its Subsidiaries, as at the date of the most recent consolidated balance sheet, adjusted to give effect to the consummation of the financings contemplated hereby as if such transactions had occurred on such date, which is consistent in all 

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material respects with the sources and uses of cash previously provided to Administrative Agent and the forecasts previously provided to Administrative Agent. 
(f)Administrative Agent shall have received copies of any and all closure, reclamation, rehabilitation and other similar plans required in respect of the operation of the Borrowers' businesses pursuant to any applicable law since April 28, 2014, including, without limitation, any Environmental Laws together with copies of any correspondence received by any Borrower from any governmental authority regarding the adequacy and sufficiency of any such plans and the Borrowers’ compliance or non-compliance with the terms of such plans including any verification of the amount of any financial assurance deposited with such governmental authority in accordance with the terms of any such plans. 
(g)The Borrowers shall have executed and delivered to Administrative Agent all such other documents, instruments and agreements which Administrative Agent determines are reasonably necessary to consummate the transactions contemplated hereby.
17.2     Conditions to All Loans.  Lenders shall not be obligated to fund any Loans, arrange for the issuance of any Letters of Credit or grant any other accommodation for the benefit of the Borrowers, unless the following conditions are satisfied:
(a)No Event of Default shall exist at the time of or result from such funding, issuance or grant;
(b)The representations and warranties of each Borrower in this Agreement and the other Loan Documents shall be true and correct in all material respects as of the date, and after giving effect to such funding, issuance or grant (except for representations and warranties that expressly relate to an earlier date which must be true and correct in all material respects as of such earlier date); and
(c)No event shall have occurred or circumstances exist that has had or would reasonably be expected to have a Material Adverse Effect.
Each request (or deemed request) by the Borrowers for funding of a Loan, issuance of a Letter of Credit or grant of an accommodation shall constitute a representation by the Borrowers that the foregoing conditions are satisfied on the date of such request and on the date of such funding, issuance or grant.  As an additional condition to any funding, issuance or grant, Agent shall have received such other information, documents, instruments and agreements as it deems appropriate in connection therewith.
SECTION 18
THE AGENTS
18.1     Appointment and Authorization.  Each Lender hereby irrevocably (subject to Section 18.10) appoints, designates and authorizes Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental 

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thereto.  Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document, Administrative Agent shall not have any duty or responsibility except those expressly set forth herein, nor shall Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Administrative Agent.  Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in other Loan Documents with reference to Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.  Administrative Agent shall provide to Lenders copies of all financial statements and projections delivered to Administrative Agent by Borrowers pursuant to Section 9 hereof, and copies of all material notices delivered to Administrative Agent by Borrowers either by delivering copies to each Lender by electronic mail or by posting such materials to an internet service accessible by such Lenders such as “Intralinks.”  Each Borrower and each Lender agrees that Administrative Agent may, in its sole discretion, utilize Intralinks or electronic mail for such purpose.
18.2     L/C Issuers.  The L/C Issuers shall act on behalf of the Lenders (according to their Pro Rata Shares) with respect to any Letters of Credit issued by them and the documents associated therewith.  The L/C Issuers shall have all of the benefits and immunities (a) provided to Administrative Agent in this Section 18 with respect to any acts taken or omissions suffered by the L/C Issuers in connection with Letters of Credit issued by them or proposed to be issued by them and the applications and agreements for letters of credit pertaining to such Letters of Credit as fully as if the term “Administrative Agent”, as used in this Section 18, included the L/C Issuers with respect to such acts or omissions and (b) as additionally provided in this Agreement with respect to the L/C Issuers.
18.3     Delegation of Duties.  Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties.  Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney in fact that it selects in the absence of gross negligence or willful misconduct.
18.4     Exculpation of Administrative Agent.  None of Administrative Agent nor any of its directors, officers, employees or agents shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except to the extent resulting from its own gross negligence or willful misconduct in connection with its duties expressly set forth herein as determined by a final, nonappealable judgment by a court of competent jurisdiction), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by any Loan Party or Affiliate of Borrowers, or any officer thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document (or the 

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creation, perfection or priority of any Lien or security interest therein), or for any failure of Borrowers or any other party to any Loan Document to perform its Obligations hereunder or thereunder.  Administrative Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of Borrowers or any of any Borrower’s Subsidiaries or Affiliates.
18.5     Reliance by Administrative Agent.  Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, electronic mail message, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrowers), independent accountants and other experts selected by Administrative Agent.  Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, confirmation from the Lenders of their obligation to indemnify Administrative Agent against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.  Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon each Lender.  For purposes of determining compliance with the conditions specified in Section 12, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless Administrative Agent shall have received written notice from such Lender prior to the proposed Closing Date specifying its objection thereto.
18.6     Notice of Default.  Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of Default or Default except with respect to defaults in the payment of principal, interest and fees required to be paid to Administrative Agent for the account of the Lenders, unless Administrative Agent shall have received written notice from a Lender or Borrowers referring to this Agreement, describing such Event of Default or Default and stating that such notice is a “notice of default.”  Administrative Agent will notify the Lenders of its receipt of any such notice.  Administrative Agent shall take such action with respect to such Event of Default or Default as may be directed by the Required Lenders in accordance with Section 16; provided that unless and until Administrative Agent has received any such direction, Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default or Default as it shall deem advisable or in the best interest of the Lenders.
18.7     Credit Decision.  Each Lender acknowledges that Administrative Agent has not made any representation or warranty to it, and that no act by Administrative Agent hereafter taken, including any consent and acceptance of any assignment or review of the affairs of the Loan Parties, shall be deemed to constitute any representation or warranty by Administrative Agent to any Lender as to any matter, including whether Administrative Agent has disclosed 

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material information in its possession.  Each Lender represents to Administrative Agent that it has, independently and without reliance upon Administrative Agent and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Loan Parties, and made its own decision to enter into this Agreement and to extend credit to Borrowers hereunder.  Each Lender also represents that it will, independently and without reliance upon Administrative Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrowers.  Except for notices, reports and other documents expressly herein required to be furnished to the Lenders by Administrative Agent, Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial or other condition or creditworthiness of Borrowers which may come into the possession of Administrative Agent.
18.8     Indemnification.  Whether or not the transactions contemplated hereby are consummated, each Lender shall indemnify upon demand Administrative Agent and its directors, officers, employees and agents (to the extent not reimbursed by or on behalf of Borrowers and without limiting any obligation of Borrowers to do so), according to its applicable Pro Rata Share, from and against any and all Indemnified Liabilities (as hereinafter defined); provided that no Lender shall be liable for any payment to any such Person of any portion of the Indemnified Liabilities to the extent determined by a final, nonappealable judgment by a court of competent jurisdiction to have resulted from the applicable Person’s own gross negligence or willful misconduct.  No action taken in accordance with the directions of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section.  Without limitation of the foregoing, each Lender shall reimburse Administrative Agent upon demand for such Lender’s ratable share of any costs or out of pocket expenses (including Attorney Costs and Taxes) incurred by Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that Administrative Agent is not reimbursed for such expenses by or on behalf of Borrowers.  The undertaking in this Section shall survive repayment of the Loans, cancellation of the Notes, expiration or termination of the Letters of Credit, any foreclosure under, or modification, release or discharge of, any or all of the Collateral Documents, termination of this Agreement and the resignation or replacement of Administrative Agent.
18.9     Administrative Agent in Individual Capacity.  PrivateBank and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with the Loan Parties and Affiliates as though PrivateBank were not Administrative Agent hereunder and without notice to or consent of any Lender.  Each Lender acknowledges that, pursuant to such activities, PrivateBank or its Affiliates may receive information regarding Borrowers or their Affiliates (including information that may be subject to 

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confidentiality obligations in favor of Borrowers or such Affiliate) and acknowledge that Administrative Agent shall be under no obligation to provide such information to such Lender.  With respect to their Loans (if any), PrivateBank and its Affiliates shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though PrivateBank were not Administrative Agent, and the terms “Lender” and “Lenders” include PrivateBank and its Affiliates, to the extent applicable, in their individual capacities.
18.10     Successor Administrative Agent.  Administrative Agent may resign as Administrative Agent upon 30 days’ notice to the Lenders.  If Administrative Agent resigns under this Agreement, the Required Lenders shall, with (so long as no Event of Default exists) the consent of Borrowers (which shall not be unreasonably withheld or delayed), appoint from among the Lenders a successor agent for the Lenders.  If no successor agent is appointed prior to the effective date of the resignation of Administrative Agent, Administrative Agent may appoint, after consulting with the Lenders and Borrowers, a successor agent from among the Lenders.  Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Administrative Agent and the term “Administrative Agent” shall mean such successor agent, and the retiring Administrative Agent’s appointment, powers and duties as Administrative Agent shall be terminated.  After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 18 and Sections 4.3.4 and 19.4 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement.  If no successor agent has accepted appointment as Administrative Agent by the date which is 30 days following a retiring Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of Administrative Agent hereunder until such time, if any, as the Required Lenders, in consultation with Borrower, appoint a successor agent as provided for above.
18.11     Collateral Matters.  
(a)Each Lender authorizes and directs Administrative Agent to enter into the other Loan Documents for the benefit of Lenders.  Each Lender hereby agrees that, except as otherwise set forth herein, any action taken by Required Lenders in accordance with the provisions of this Agreement or the other Loan Documents, and the exercise by the Required Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all Lenders.  Administrative Agent is hereby authorized on behalf of all Lenders, without the necessity of any notice to or further consent from any Lender to take any action with respect to any Collateral or other Loan Documents which may be necessary to perfect and maintain perfected the Liens upon the Collateral granted pursuant to this Agreement and the other Loan Documents.
(b)The Lenders irrevocably authorize Administrative Agent, at its option and in its discretion, (i) to release any Lien granted to or held by Administrative Agent under any Collateral Document (x) upon termination of the Commitments and payment in full of all Loans and all other obligations of Borrowers hereunder and the expiration or termination of all Letters of Credit (including by means of credit bidding in accordance with Section 16.3); (y) constituting property sold or to be sold or disposed of as part of or in connection with any disposition permitted hereunder (including the release of any guarantor); or (z) subject to Section 20.1, if 

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approved, authorized or ratified in writing by the Required Lenders; or (ii) to subordinate its interest in any Collateral to any holder of a Lien on such Collateral which is permitted by clause (v) of the definition of Permitted Liens (it being understood that Administrative Agent may conclusively rely on a certificate from Borrowers in determining whether the Debt secured by any such Lien is permitted by Section 13.2).  Upon request by Administrative Agent at any time, the Lenders will confirm in writing Administrative Agent’s authority to release, or subordinate its interest in, particular types or items of Collateral pursuant to this Section 18.11.  Each Lender hereby authorizes Administrative Agent to give blockage notices in connection with any Secured Term Debt at the direction of Required Lenders and agrees that it will not act unilaterally to deliver such notices.
18.12     Restriction on Actions by Lenders.  Each Lender agrees that it shall not, without the express written consent of Administrative Agent, and shall, upon the written request of Administrative Agent (to the extent it is lawfully entitled to do so), set off against the Obligations, any amounts owing by such Lender to a Loan Party or any Deposit Accounts of any Loan Party now or hereafter maintained with such Lender.  Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Administrative Agent, take or cause to be taken, any action, including the commencement of any legal or equitable proceedings to foreclose any loan or otherwise enforce any security interest in any of the Collateral or to enforce all or any part of this Agreement or the other Loan Documents.  All enforcement actions under this Agreement and the other Loan Documents against the Loan Parties or any third party with respect to the Obligations or the Collateral may only be taken by Administrative Agent (at the direction of the Required Lenders or as otherwise permitted in this Agreement) or by its agents at the direction of Administrative Agent.
18.13     Administrative Agent May File Proofs of Claim. 
18.13.1     Filing Proofs of Claim.  In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Administrative Agent shall have made any demand on Borrowers) shall be entitled and empowered, by intervention in such proceeding or otherwise:
(a)to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and Administrative Agent under Sections 4.3.5, and 19.4) allowed in such judicial proceedings; and
(b)to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

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and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to Administrative Agent and, in the event that Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Administrative Agent and its agents and counsel, and any other amounts due Administrative Agent under Sections 2.1.3, 4.3, 4.4 and 19.4.
Nothing contained herein shall be deemed to authorize Administrative Agent  to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.
18.14     Other Agents; Arrangers and Managers.  To the extent applicable, none of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a “syndication agent,” “documentation agent,” “co-agent,” “book manager,” “lead manager,” “arranger,” “lead arranger” or “co-arranger”, if any, shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than, in the case of such Lenders, those applicable to all Lenders as such.  Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.
18.15     Quebec Security Matters.  Without prejudice to the other provisions of this Section 18, each Lender hereby irrevocably designates and appoints Administrative Agent as the person holding the power of attorney (fondé de pouvoir) of the Lenders as contemplated under Article 2692 of the Civil Code of Quebec, to enter into, to take and to hold on their behalf, and for their benefit, the deed of hypothec and issue of bonds to be executed by any Loan Party under the laws of the Province of Quebec and creating a security interest under such laws on property located in such Province and to exercise such powers and duties which are conferred upon Administrative Agent under such deed.  Each Lender hereby additionally and irrevocably designates and appoints Administrative Agent as agent, mandatary, custodian and depositary for and on behalf of each of them (i) to hold and to be the sole registered holder of any bond issued in connection with the aforesaid deed of hypothec and issue of bonds, the whole notwithstanding Section 32 of the Act Respecting the Special Powers of Legal Persons (Quebec) or any other applicable law, and (ii) to enter into, to take and to hold on their behalf, and for their benefit, a hypothec on bonds to be executed by such Loan Party under the laws of the Province of Quebec and creating a pledge on any such bond as security for the payment and performance of the Obligations.  In this respect, (a) Administrative Agent, as agent, mandatary, custodian and depositary of the Lenders, shall keep a record indicating the names and addresses of, and the pro rata portion of the Obligations so secured, owing to the persons for and on behalf of whom any such bond is so held from time to time, and (b) each Lender will be entitled to the benefits of any property charged under the aforesaid deed of hypothec and issue of bonds and any such pledge and will participate in the proceeds of realization of any such property, the whole in accordance with the terms hereof.  Administrative Agent, in such aforesaid capacities shall (x) have the sole 

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and exclusive right and authority to exercise, except as may be otherwise specifically restricted by the terms hereof, all rights and remedies given to Administrative Agent with respect to the property hypothecated under the deed of hypothec and issue of bonds and any such pledge, applicable law or otherwise, and (y) benefit from and be subject to all provisions hereof with respect to Administrative Agent, mutatis mutandis, including, without limitation, all such provisions with respect to the liability or responsibility to and indemnification by the Lenders.  Any person who becomes a Lender shall be deemed to have consented to and confirmed Administrative Agent as the person holding the power of attorney (fondé de pouvoir) and as the agent, mandatary, custodian and depositary as aforesaid and to have ratified, as of the date it becomes a Lender, all actions taken by Administrative Agent in such capacities.  Administrative Agent shall be entitled to delegate from time to time any of its powers or duties under the deed of hypothec and issue of bonds and the aforesaid pledge to any person and on such terms and conditions as Administrative Agent may determine from time to time. The execution prior to the date hereof by Administrative Agent of any Deed of hypothec or other security documents made pursuant to the applicable law of the Province of Quebec is hereby ratified and confirmed
SECTION 19
MISCELLANEOUS
19.1     Assignments; Participations.
19.1.1     Assignments.  
(a)Any Lender may at any time assign to one or more Persons (any such Person, an “Assignee”) all or any portion of such Lender’s Loans and Commitments, with the prior written consent of Administrative Agent, the L/C Issuers (for an assignment of the Revolving Loans and the Revolving Commitment) and, so long as no Event of Default exists, Borrowers (which consents shall not be unreasonably withheld or delayed and shall not be required for (i) an assignment by a Lender to a Lender or an Affiliate of a Lender), (ii) any assignment to secure obligations of a Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or to any trustee for the holders of its debt or equity interests or (iii) any assignment that is required by the United States government (whether federal, state, county or otherwise).  Except as Administrative Agent may otherwise agree, any such assignment shall be in a minimum aggregate amount equal to $5,000,000 or, if less, the remaining Commitment and Loans held by the assigning Lender.  Borrowers and Administrative Agent shall be entitled to continue to deal solely and directly with such Lender in connection with the interests so assigned to an Assignee until Administrative Agent shall have received and accepted an effective assignment agreement in substantially the form of Exhibit E hereto (an “Assignment Agreement”) executed, delivered and fully completed by the applicable parties thereto and a processing fee of $3,500.  No assignment may be made to any Person if at the time of such assignment Borrowers would be obligated to pay any greater amount under Sections 4.2.1 or 4.4 to the Assignee than Borrowers is then obligated to pay to the assigning Lender under such Sections (and if any assignment is made in violation of the foregoing, Borrowers will not be required to pay such greater amounts).  Any attempted assignment not made in accordance with this Section 19.1.1 shall be treated as the sale of a participation under Section 19.1.2.  Borrowers shall be deemed to have granted their consent to any assignment 

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requiring its consent hereunder unless Borrowers have expressly objected to such assignment within five (5) Business Days after they have received notice requesting such consent.
(b)From and after the date on which the conditions described above have been met, (i) such Assignee shall be deemed automatically to have become a party hereto and, to the extent that rights and obligations hereunder have been assigned to such Assignee pursuant to such Assignment Agreement, shall have the rights and obligations of a Lender hereunder and (ii) the assigning Lender, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment Agreement, shall be released from its rights (other than its indemnification rights) and obligations hereunder.  Upon the request of the Assignee (and, as applicable, Lender) pursuant to an effective Assignment Agreement, the Borrowers shall execute and deliver to Administrative Agent for delivery to the Assignee (and, as applicable, the assigning Lender) if such Lender is receiving an assignment of Revolving Loans, a Note in the principal amount of the Assignee’s pro rata share of the Revolving Loan Commitment (and, as applicable, a Note in the principal amount of the pro rata share of the Revolving Loan Commitment retained by the assigning Lender).  Each such Note shall be dated the effective date of such assignment.  Upon receipt by Administrative Agent of such Note, the assigning Lender shall return to the Borrowers any prior Note held by it.
(c)Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
19.1.2     Participations.  Any Lender may at any time sell to one or more Persons participating interests in its Loans, Revolving Loan Commitment or other interests hereunder (any such Person, a “Participant”).  In the event of a sale by a Lender of a participating interest to a Participant, (a) such Lender’s obligations hereunder shall remain unchanged for all purposes, (b) the Borrowers shall continue to deal solely and directly with Lender in connection with such Lender’s rights and obligations hereunder and (c) all amounts payable by the Borrowers shall be determined as if such Lender had not sold such participation and shall be paid directly to such Lender.  Borrowers agree that if amounts outstanding under this Agreement are due and payable (as a result of acceleration or otherwise), each Participant shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement and with respect to any Letter of Credit to the same extent as if the amount of its participating interest were owing directly to it as such Lender under this Agreement; provided that such right of set-off shall be subject to the obligation of each Participant to share with such Lender, and such Lender agrees to share with each Participant, on a pro rata basis.  Borrowers also agree that each Participant shall be entitled to the benefits of Section 4.2 or 4.4 as if it were Lender (provided that on the date of the participation no Participant shall be entitled to any greater compensation pursuant to Section 4.2 or 4.4 than would have been paid to Lender on such date if no participation had been sold).
19.2     Register.  Administrative Agent shall, as a non-fiduciary agent of the Borrowers, maintain a copy of each Assignment Agreement delivered and accepted by it and register (the 

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“Register”) for the recordation of names and addresses of the Lenders and the Commitment of each Lender from time to time and whether such Lender is the original Lender or the Assignee.  No assignment shall be effective unless and until the Assignment Agreement is accepted and registered in the Register.  All records of transfer of a Lender’s interest in the Register shall be conclusive, absent manifest error, as to the ownership of the interests in the Loans.  Administrative Agent shall not incur any liability of any kind with respect to any Lender with respect to the maintenance of the Register.  Each Lender granting a participation shall, as a non-fiduciary agent of the Borrowers, maintain a register containing information similar to that of the Register in a manner such that the loans hereunder are in “registered form” for the purposes of the Code.
19.3     Customer Identification - USA Patriot Act Notice.  Each Lender and Administrative Agent (for itself and not on behalf of any other party) hereby notifies the Borrowers that, pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (the “USA Patriot Act”), it is required to obtain, verify and record information that identifies the Borrowers, which information includes the name and address of the Borrowers and other information that will allow such Lender or Administrative Agent, as applicable, to identify the Borrowers in accordance with the Act.
19.4     Indemnification by Borrowers.  IN CONSIDERATION OF THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND LENDERS’ AGREEMENT TO EXTEND THE REVOLVING LOAN COMMITMENT PROVIDED HEREUNDER, EACH BORROWER HEREBY AGREES TO INDEMNIFY, AND HOLD ADMINISTRATIVE AGENT, EACH LENDER AND EACH OF THE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES AND AGENTS OF ADMINISTRATIVE AGENT AND EACH LENDER (EACH A “LENDER PARTY”) FREE AND HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS, CAUSES OF ACTION, SUITS, LOSSES, LIABILITIES, DAMAGES AND EXPENSES, INCLUDING REASONABLE ATTORNEY COSTS (COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”), INCURRED BY LENDER PARTIES OR ANY OF THEM AS A RESULT OF, OR ARISING OUT OF, OR RELATING TO (A) ANY TENDER OFFER, MERGER, PURCHASE OF CAPITAL SECURITIES, PURCHASE OF ASSETS (INCLUDING THE RELATED TRANSACTIONS) OF ANY BORROWER, (B) THE USE, HANDLING, RELEASE, EMISSION, DISCHARGE, TRANSPORTATION, STORAGE, TREATMENT OR DISPOSAL OF ANY HAZARDOUS MATERIAL AT ANY PROPERTY OWNED OR LEASED BY ANY BORROWER, (C) ANY VIOLATION OF ANY ENVIRONMENTAL LAWS WITH RESPECT TO CONDITIONS AT ANY PROPERTY OWNED OR LEASED BY ANY BORROWER OR THE OPERATIONS CONDUCTED THEREON, (D) THE INVESTIGATION, CLEANUP OR REMEDIATION OF OFFSITE LOCATIONS AT WHICH ANY BORROWER OR THEIR RESPECTIVE PREDECESSORS ARE ALLEGED TO HAVE DIRECTLY OR INDIRECTLY DISPOSED OF HAZARDOUS MATERIALS OR (E) THE EXECUTION, DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT BY ANY LENDER PARTY, EXCEPT FOR ANY SUCH INDEMNIFIED LIABILITIES ARISING ON ACCOUNT OF THE APPLICABLE LENDER PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL, NONAPPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION.  IF AND TO THE EXTENT THAT THE FOREGOING UNDERTAKING MAY BE UNENFORCEABLE FOR ANY 

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REASON, BORROWERS HEREBY AGREE TO MAKE THE MAXIMUM CONTRIBUTION TO THE PAYMENT AND SATISFACTION OF EACH OF THE INDEMNIFIED LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW.  ALL OBLIGATIONS PROVIDED FOR IN THIS SECTION 18.3 SHALL SURVIVE REPAYMENT OF THE LOANS, CANCELLATION OF THE NOTES, EXPIRATION OR TERMINATION OF THE LETTERS OF CREDIT, ANY FORECLOSURE UNDER, OR ANY MODIFICATION, RELEASE OR DISCHARGE OF, ANY OR ALL OF THE COLLATERAL DOCUMENTS AND TERMINATION OF THIS AGREEMENT.
19.5     Notice.  All notices, requests, demands and other communications provided for hereunder shall be in writing, sent by certified or registered mail, postage prepaid, return receipt requested, by nationally recognized overnight courier or delivered in person, and addressed as follows:
	
		
	If to the Borrowers:
	Westmoreland Coal Company
9540 S. Maroon Circle
Englewood, CO 80112
Attention:  General Counsel
Telephone:  (303) 922-6463

	 
	 

	 
	With a copy to:

Holland & Hart LLP
555 17th St., Suite 3200
Denver, CO  80202
Attention:  Katherine A. LeVoy
Telephone:  (303) 295-8000

	If to Administrative Agent:
	The PrivateBank and Trust Company
120 South LaSalle Street
Chicago, Illinois  60603
Attention:  Douglas Colletti
Telephone:  (312) 564-6953

	 
	 

	 
	With a copy to:

Vedder Price P.C.
222 North LaSalle Street, Suite 2600
Chicago, Illinois 60601
Attention:  Michael A. Nemeroff, Esq.
Telephone:  (312) 609-7500

or, as to each party, at such other address as shall be designated by such party in a written notice to each other party complying as to delivery with the terms of this subsection.  Notices shall be deemed given on the date of delivery, in the case of personal delivery, or on the delivery or 

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refusal date, as specified on the return receipt in the case of certified mail or on the tracking report in the case of overnight courier.
SECTION 20
GENERAL
20.1     Waiver; Amendments.  No delay on the part of Administrative Agent or any Lender in the exercise of any right, power or remedy shall operate as a waiver thereof, nor shall any single or partial exercise by any of them of any right, power or remedy preclude other or further exercise thereof, or the exercise of any other right, power or remedy.  No amendment, modification or waiver of, or consent with respect to, any provision of this Agreement or the other Loan Documents shall in any event be effective unless the same shall be in writing and acknowledged by Lenders having an aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares expressly designated herein with respect thereto or, in the absence of such designation as to any provision of this Agreement, by the Required Lenders, and then any such amendment, modification, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  Except to the extent set forth in Section 16.3 hereof, no amendment, modification, waiver or consent shall (a) extend or increase the Commitment of any Lender without the written consent of such Lender, (b) extend the date scheduled for payment of any principal (excluding mandatory prepayments) of or interest on the Loans or any fees payable hereunder without the written consent of each Lender directly affected thereby, (c) reduce the principal amount of any Loan, the rate of interest thereon or any fees payable hereunder, without the consent of each Lender directly affected thereby (except for periodic adjustments of interest rates and fees resulting from a change in the Applicable Margin as provided for in this Agreement); or (d) release any guarantor from its obligations under the Guaranty, other than as part of or in connection with any disposition permitted hereunder, or release or subordinate its liens on all or any substantial part of the Collateral granted under any of the other Loan Documents (except as permitted by Section 18.11), change the definition of Required Lenders, any provision of this Section 20.1, the provisions of Section 16.3 or reduce the aggregate Pro Rata Share required to effect an amendment, modification, waiver or consent, without, in each case set forth in this clause (e), the written consent of all Lenders.  No provision of Section 18 or other provision of this Agreement affecting Administrative Agent in its capacity as such shall be amended, modified or waived without the consent of Administrative Agent.  No provision of this Agreement relating to the rights or duties of the L/C Issuers in their capacities as such shall be amended, modified or waived without the consent of the L/C Issuers.  No provision of this Agreement relating to the rights or duties of the Swing Line Lender in its capacity as such shall be amended, modified or waived without the consent of the Swing Line Lender.
Notwithstanding the foregoing, this Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, Administrative Agent and Borrowers (a) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the Revolving Loans, the Revolving Loan Commitments and the accrued interest and fees in respect thereof and (b) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders.

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If, in connection with any proposed amendment, modification, waiver or termination requiring the consent of all Lenders, the consent of the Required Lenders is obtained, but the consent of other Lenders whose consent is required is not obtained (any such Lender whose consent is not obtained being referred to as a “Non-Consenting Lender”), then, so long as Administrative Agent is not a Non-Consenting Lender, Administrative Agent and/or a Person or Persons reasonably acceptable to Administrative Agent shall have the right to purchase from such Non-Consenting Lenders, and such Non-Consenting Lenders agree that they shall, upon Administrative Agent’s request, sell and assign to Administrative Agent and/or such Person or Persons, all of the Loans and Revolving Loan Commitments of such Non-Consenting Lenders for an amount equal to the principal balance of all such Loans and Revolving Loan Commitments held by such Non-Consenting Lenders and all accrued interest, fees, expenses and other amounts then due with respect thereto through the date of sale, such purchase and sale to be consummated pursuant to an executed Assignment Agreement.
20.2     Headings of Subdivisions.  The headings of subdivisions in this Agreement are for convenience of reference only, and shall not govern the interpretation of any of the provisions of this Agreement.
20.3     Power of Attorney.  Each Borrower acknowledges and agrees that its appointment of Administrative Agent as its attorney and agent-in-fact for the purposes specified in this Agreement is an appointment coupled with an interest and shall be irrevocable until all of the Obligations are satisfied and paid in full and this Agreement is terminated.
20.4     Confidentiality.  Administrative Agent and each Lender hereby agrees to use commercially reasonable efforts to assure that any and all information relating to the Borrowers which is (i) furnished by the Borrowers to Administrative Agent or such Lender (or to any Affiliate of Administrative Agent or such Lender); and (ii) described by any Borrower to Administrative Agent and a Lender as non-public, confidential or proprietary in nature, shall be kept confidential by Administrative Agent and such Lender or such Affiliate in accordance with applicable law; provided, however, that such information and other credit information relating to the Borrowers may be distributed by Administrative Agent or such Lender or such Affiliate to (a) Administrative Agent’s or such Lender’s or such Affiliate’s directors, managers, officers, employees, attorneys, Affiliates, assignees, participants, auditors, agents and regulators who have a need-to-know such information in connection with the transactions contemplated by this Agreement, and (b) upon the order of a court or other governmental agency having jurisdiction over Administrative Agent or such Lender or such Affiliate, to any other party.  In addition such information and other credit information may be distributed by Administrative Agent or such Lender to potential participants or assignees of any portion of the Obligations, provided, that such potential participant or assignee agrees to follow the confidentiality requirements set forth herein.  Borrowers and Administrative Agent and each Lender further agree that this provision shall survive the termination of this Agreement.  Notwithstanding the foregoing, the Borrowers shall have the right to review and approve  any tombstone or similar advertising material relating to the financing transaction that Administrative Agent proposes to use relating to the financing contemplated by this Agreement that uses the trademarks, service marks or other mark of any Borrower; provided, that the Borrowers shall not unreasonably withhold their consent to the use of such tombstone or advertising material if the Borrowers’ trademarks, service marks or other marks are used appropriately in such tombstone or advertising material.  

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20.5     Counterparts/Delivery.  This Agreement, any of the other Loan Documents, and any amendments, waivers, consents or supplements may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which, when so executed and delivered, shall be deemed an original, but all of which counterparts together shall constitute but one agreement.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.
20.6     Electronic Submissions.  Upon not less than thirty (30) days’ prior written notice (the “Approved Electronic Form Notice”), Administrative Agent may permit or require that any of the documents, certificates, forms, deliveries or other communications, authorized, required or contemplated by this Agreement or the other Loan Documents, be submitted to Administrative Agent in Approved Electronic Form (as hereafter defined), subject to any reasonable terms, conditions and requirements in the applicable Approved Electronic Forms Notice.  For purposes hereof “Electronic Form” means e-mail, e-mail attachments, data submitted on web-based forms or any other communication method that delivers machine readable data or information to Administrative Agent, and “Approved Electronic Form” means an Electronic Form that has been approved in writing by Administrative Agent (which approval has not been revoked or modified by Administrative Agent) and “Approved Electronic Communication” means each notice, demand, communication, information, document or other material transmitted, posted or otherwise made or communicated by e-mail, internet portal or other electronic platform, sent to the Borrowers in an Approved Electronic Form Notice.  Except as otherwise specifically provided in the applicable Approved Electronic Form Notice, any submissions made in an applicable Approved Electronic Form shall have the same force and effect that the same submissions would have had if they had been submitted in any other applicable form authorized, required or contemplated by this Agreement or the other Loan Documents.  Approved Electronic Communications that do not bear or are not readily capable of bearing either a signature or a reproduction of a signature shall be deemed signed, by attaching to, or logically associating with such Approved Electronic Communication an electronic symbol, encryption, digital signature or process (including the name or an abbreviation of the name of the party or the company transmitting the Approved Electronic Communication), and each party hereto is entitled to rely on such Approved Electronic Communications as signed by any other party hereto.  Each of the Loan Parties, Administrative Agent and the Lenders hereby acknowledge and agree that the use of Approved Electronic Communications is not necessarily secure and that there are risks associated with such use, including risks of interception, disclosure and abuse and each assumes and accepts such risks by hereby authorizing each of Administrative Agent, each Lender and each of their Affiliates to accept and transmit Approved Electronic Communications.
20.7     Waiver of Jury Trial: Other Waivers.
(a)EACH BORROWER AND ADMINISTRATIVE AGENT AND EACH LENDER EACH HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING WHICH PERTAINS DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS, THE COLLATERAL, ANY ALLEGED TORTIOUS CONDUCT BY BORROWERS, ADMINISTRATIVE AGENT OR ANY LENDER OR WHICH, IN ANY 

112

WAY, DIRECTLY OR INDIRECTLY, ARISES OUT OF OR RELATES TO THE RELATIONSHIP AMONG BORROWERS AND ADMINISTRATIVE AGENT AND ANY LENDER.  IN NO EVENT SHALL ANY BORROWER, ADMINISTRATIVE AGENT OR ANY LENDER BE LIABLE FOR LOST PROFITS OR OTHER SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.
(b)The Borrowers hereby waive demand, presentment, protest and notice of nonpayment, and further waives the benefit of all valuation, appraisal and exemption laws.
(c)The Borrowers hereby waive the benefit of any law that would otherwise restrict or limit Administrative Agent or any Lender or any Affiliate of Administrative Agent or any Lender in the exercise of its right, which is hereby acknowledged and agreed to, to set-off against the Obligations, without notice at any time hereafter, any indebtedness, matured or unmatured, owing by Administrative Agent or any Lender or such Affiliate of Administrative Agent or any Lender to the Borrowers, including, without limitation any Deposit Account at Administrative Agent or any Lender or such Affiliate.
(d)Administrative Agent’s or Lenders’ failure, at any time or times hereafter, to require strict performance by the Borrowers of any provision of this Agreement or any of the other Loan Documents shall not waive, affect or diminish any right of Administrative Agent and Lenders thereafter to demand strict compliance and performance therewith.  Any suspension or waiver by Administrative Agent, Required Lenders or all Lenders, as applicable, of an Event of Default under this Agreement or any default under any of the other Loan Documents shall not suspend, waive or affect any other Event of Default under this Agreement or any other default under any of the other Loan Documents, whether the same is prior or subsequent thereto and whether of the same or of a different kind or character.  No delay on the part of Administrative Agent or any Lender in the exercise of any right or remedy under this Agreement or any other Loan Document shall preclude other or further exercise thereof or the exercise of any right or remedy.  None of the undertakings, agreements, warranties, covenants and representations of the Borrowers contained in this Agreement or any of the other Loan Documents and no Event of Default under this Agreement or default under any of the other Loan Documents shall be deemed to have been suspended or waived by Administrative Agent or Lenders unless such suspension or waiver is in writing, signed by a duly authorized officer of Administrative Agent, Required Lenders or all Lenders, as applicable, and directed to the Borrowers specifying such suspension or waiver.
20.8     Choice of Governing Laws; Construction; Forum Selection.  This Agreement and the other Loan Documents are submitted by the Borrowers to Administrative Agent and Lenders for Administrative Agent’s and Lenders’ acceptance or rejection at Administrative Agent’s principal place of business as an offer by the Borrowers to borrow monies from Administrative Agent and Lenders now and from time to time hereafter, and shall not be binding upon Administrative Agent or any Lender or become effective until accepted by Administrative Agent and Lenders, in writing, at said place of business.  If so accepted by Administrative Agent and Lenders, this Agreement and the other Loan Documents shall be deemed to have been made at said place of business.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS AS TO INTERPRETATION, ENFORCEMENT, VALIDITY, 

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CONSTRUCTION, EFFECT, AND IN ALL OTHER RESPECTS, INCLUDING, WITHOUT LIMITATION, THE LEGALITY OF THE INTEREST RATE AND OTHER CHARGES, BUT EXCLUDING PERFECTION OF THE SECURITY INTERESTS IN COLLATERAL LOCATED OUTSIDE OF THE STATE OF ILLINOIS, WHICH SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE RELEVANT JURISDICTION IN WHICH SUCH COLLATERAL IS LOCATED.  If any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or remaining provisions of this Agreement.
Each Borrower and Administrative Agent and each Lender irrevocably agree that ALL ACTIONS OR PROCEEDINGS IN ANY WAY, MANNER OR RESPECT, ARISING OUT OF OR FROM OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE COLLATERAL MAY BE LITIGATED IN COURTS HAVING SITUS WITHIN THE CITY OF CHICAGO, STATE OF ILLINOIS.  EACH BORROWER AND ADMINISTRATIVE AGENT AND EACH LENDER HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURTS LOCATED WITHIN SAID CITY AND STATE.  EACH BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO TRANSFER OR CHANGE THE VENUE OF ANY LITIGATION BROUGHT IN ACCORDANCE WITH THIS SECTION.
20.9     Revival and Reinstatement of Obligations.  If the incurrence or payment of the Obligations by any Borrower or the transfer to Administrative Agent or any Lender of any property should for any reason subsequently be declared to be void or voidable under any state, provincial or federal law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (collectively, a “Voidable Transfer”), and if Administrative Agent or any Lender is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that Administrative Agent or any Lender is required or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys’ fees of Administrative Agent or any Lender, the Obligations shall automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made.
20.10     Reimbursement Among the Borrowers.  To the extent that any Borrower shall be required to pay a portion of the Borrowers’ Obligations which shall exceed the amount of loans, advances or other extensions of credit received by any such Borrower and all interest, costs, fees and expenses attributable to such loans, advances or other extensions of credit, then such Borrower shall be reimbursed by the other Borrowers for the amount of such excess pro rata, based on their respective net worth as of the date hereof.  This Section is intended only to define the relative rights of any Borrower among the Borrowers and nothing set forth in this Section is intended to or shall impair the obligations of the Borrowers, jointly and severally, to pay the Borrowers’ Obligations to Administrative Agent and the Lenders as and when the same shall become due and payable in accordance with the terms hereof.
20.11     Guaranty.  

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(a)US Borrowers.  Each US Borrower hereby unconditionally and absolutely guarantees to the Bank, irrespective of the validity, regularity or enforceability of this Agreement or any other Loan Documents, the full and prompt payment in full to Administrative Agent and the Lenders at maturity of all Borrowers’ Obligations.  The guaranty set forth in this Section shall in all respects be continuing, absolute and unconditional, and shall remain in full force and effect until all Borrowers’ Obligations have been fully repaid.  The guaranty set forth in this Section is an absolute and unconditional guaranty of payment and not of collectability.  THE GUARANTY OBLIGATION SET FORTH IN THIS SECTION SHALL IN ALL RESPECTS BE IN FURTHERANCE, AND SHALL IN NO EVENT BE DEEMED IN LIMITATION, OF THE OBLIGATIONS OF EACH BORROWER UNDER THIS AGREEMENT.
(b)Canadian Borrowers.  Each Canadian Borrower hereby unconditionally and absolutely guarantees to the Bank, irrespective of the validity, regularity or enforceability of this Agreement or any other Loan Documents, the full and prompt payment in full to Administrative Agent and the Lenders at maturity of all Canadian Obligations.  The guaranty set forth in this Section shall in all respects be continuing, absolute and unconditional, and shall remain in full force and effect until the Canadian Obligations have been fully repaid.  The guaranty set forth in this Section is an absolute and unconditional guaranty of payment and not of collectability.  THE GUARANTY OBLIGATION SET FORTH IN THIS SECTION SHALL IN ALL RESPECTS BE IN FURTHERANCE, AND SHALL IN NO EVENT BE DEEMED IN LIMITATION, OF THE OBLIGATIONS OF EACH BORROWER UNDER THIS AGREEMENT.
20.12     Joint and Several Liability.  
(a)US Borrowers.  Except as specifically set forth herein, the liability of each US Borrower under this Agreement and the other Loan Documents in general for all of the Obligations shall be joint and several, and each reference herein to the US Borrowers shall be deemed to refer to each US Borrower.  In furtherance and not in limitation of Administrative Agent’s and each Lender’s rights and remedies hereunder or at law, Administrative Agent may proceed under this Agreement and the other Loan Documents against any one or more of the US Borrowers in its absolute and sole discretion for any of the Borrowers’ Obligations or any other liability or obligation of any Borrower arising hereunder.  
(b)Canadian Borrowers.  Except as specifically set forth herein, the liability of each Canadian Borrower under this Agreement and the other Loan Documents in general for all of the Canadian Obligations shall be joint and several, and each reference herein to the Canadian Borrowers shall be deemed to refer to each Canadian Borrower.  In furtherance and not in limitation of Administrative Agent’s and each Lender’s rights and remedies hereunder or at law, Administrative Agent may proceed under this Agreement and the other Loan Documents against any one or more of the Canadian Borrowers in its absolute and sole discretion for any of the Canadian Obligations or any other liability or obligation of any Borrower arising hereunder.  Notwithstanding the foregoing, it is understood and agreed that each of the Canadian Borrowers are only responsible for the payment of the Canadian Obligations.
20.13     Representatives.  Administrative Agent is authorized to rely on any written, verbal, electronic, telephonic or telecopy loan requests which Administrative Agent believes in 

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its good faith judgment to emanate from a Representative (as defined below) of the Borrowers, whether or not that is in fact the case.  Each Borrower hereby irrevocably confirms, ratifies and approves all such advances by Administrative Agent and the Lenders and shall indemnify Administrative Agent and the Lenders against losses and expenses in connection with any advance made in connection with such reliance by Administrative Agent and the Lenders (including court costs, reasonable attorneys’ and paralegals’ fees) and shall hold Administrative Agent and the Lenders harmless with respect thereto.  Notwithstanding anything contained in this Agreement to the contrary, each Borrower hereby appoints Westmoreland Parent (the “Representative”) to each act as its sole and exclusive representatives under this Agreement for all purposes, including without limitation, to receive notices and other communications from Administrative Agent and the Lenders hereunder, to make requests for advances of funds hereunder and to amend this Agreement; provided, that the Borrowers may change their Representative under this Agreement by giving notice of such change to Administrative Agent.  Administrative Agent shall have (i) no obligation to communicate with any Borrower other than the Representative concerning this Agreement, any note or any other matter related to the Obligations and (ii) no responsibility with respect to the allocation among the Borrowers of the funds advanced hereunder.
20.14     Amendment and Restatement.  This Agreement and the Notes executed and delivered in connection herewith are entered into and delivered to Administrative Agent in replacement of and substitution for, and not in payment of or satisfaction for, the following documents:  (i) the Original Loan Agreement and (ii) each promissory note evidencing the obligations under the Original Loan Agreement (collectively, with the Original Loan Agreement, the “Prior Agreements”).  All other Loan Documents, including, the other instruments, documents and agreements executed and delivered in connection with the Prior Agreements, are hereby reaffirmed and shall continue in full force and effect, as may be amended, restated or otherwise modified in connection herewith.  The Borrowers acknowledge that the loans and other obligations evidenced by the Prior Agreements have not been satisfied but instead have become part of the Loans and liabilities under this Agreement and under the other Loan Documents executed in connection herewith.  The Borrowers further acknowledge that all of the Liens granted by each Borrower under the Prior Agreements and all instruments, documents and agreements executed in connection therewith are hereby reaffirmed and shall continue hereafter to secure each Borrower’s Obligations under this Agreement and the other Loan Documents, until all of each Borrower’s Obligations are repaid in full in cash (other than unasserted contingent indemnification obligations) and this Agreement is terminated.
SECTION 21
NONLIABILITY OF ADMINISTRATIVE AGENT AND LENDERS
The relationship among the Borrowers on the one hand and Administrative Agent and Lenders on the other hand shall be solely that of borrower, administrative agent and lender.  Neither Administrative Agent nor any Lender has any fiduciary relationship with or duty to any Borrower arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Borrowers, on the one hand, and Administrative Agent and Lenders, on the other hand, in connection herewith or therewith is solely that of 

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debtor and creditors.  Neither Administrative Agent nor any Lender undertakes any responsibility to any Borrower to review or inform any Borrower of any matter in connection with any phase of any Borrower’s business or operations.  Each Borrower agrees, on behalf of itself and each other Borrower, that neither Administrative Agent nor any Lender shall have any liability to any Borrower (whether sounding in tort, contract or otherwise) for losses suffered by any Borrower in connection with, arising out of, or in any way related to the transactions contemplated and the relationship established by the Loan Documents, or any act, omission or event occurring in connection therewith, unless it is determined in a final non-appealable judgment by a court of competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of the party from which recovery is sought.  NO LENDER PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY OTHERS OF ANY INFORMATION OR OTHER MATERIALS OBTAINED THROUGH INTRALINKS OR OTHER SIMILAR INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT, NOR SHALL ANY LENDER PARTY HAVE ANY LIABILITY WITH RESPECT TO, AND EACH BORROWER ON BEHALF OF ITSELF AND EACH OTHER LOAN PARTY, HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ARISING OUT OF ITS ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER THE CLOSING DATE).  Each Borrower acknowledges that it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents to which it is a party.  No joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Loan Parties, Administrative Agent and Lenders.
(Signature Page Follows)

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(Signature Page to Second Amended and Restated Loan and Security Agreement)

The parties hereto have duly executed this Second Amended and Restated Loan and Security Agreement as of the date first written above.
	
		
	BORROWERS:
	WESTMORELAND COAL COMPANY, a Delaware corporation

By:/s/ Jennifer S. Grafton
Jennifer S. Grafton
Secretary

	 
	WESTMORELAND ENERGY LLC, a Delaware limited liability company

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WESTMORELAND - NORTH CAROLINA POWER, L.L.C., a Virginia limited liability company

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WEI-ROANOKE VALLEY, INC., a Delaware corporation

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WESTMORELAND - ROANOKE VALLEY, L.P., a Delaware limited partnership

By:WEI-Roanoke Valley, Inc.
its general partner

By:/s/ Samuel N. Hagreen
     Samuel N. Hagreen
     Secretary

(Signature Page to Second Amended and Restated Loan and Security Agreement)

	
		
	BORROWERS:
	WESTMORELAND PARTNERS, a Virginia general partnership

By:Westmoreland-Roanoke Valley, L.P., its general partner

By:WEI-Roanoke Valley, Inc., 
its general partner

By: /s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

By:  Westmoreland-North Carolina Power,   L.L.C., its general partner

By: /s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WESTMORELAND RESOURCES, INC., a Delaware corporation

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WESTMORELAND KEMMERER, INC., a Delaware corporation

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WESTMORELAND COAL SALES COMPANY, INC., a Delaware corporation

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

(Signature Page to Second Amended and Restated Loan and Security Agreement)

	
		
	BORROWERS:
	WRI PARTNERS, INC., a Delaware corporation

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WCC LAND HOLDING COMPANY, INC., a Delaware corporation

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WESTMORELAND CANADA LLC, a Delaware limited liability company

By:/s/ Jennifer S. Grafton
Jennifer S. Grafton
Secretary

	 
	WESTMORELAND ENERGY SERVICES, INC., a Delaware corporation

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WESTMORELAND MINING LLC, a Delaware limited liability company

By:/s/ Samuel N. Hagreen
Samuel N. Hagreen
Secretary

	 
	WESTERN ENERGY COMPANY, a Montana corporation

By:/s/ Samuel N. Hagreen
      Samuel N. Hagreen
      Secretary

(Signature Page to Second Amended and Restated Loan and Security Agreement)

	
		
	BORROWERS:
	TEXAS WESTMORELAND COAL CO., a Montana corporation

By:/s/ Samuel N. Hagreen
     Samuel N. Hagreen
     Secretary

	 
	WESTMORELAND SAVAGE CORPORATION, a Delaware corporation

By:/s/ Samuel N. Hagreen
     Samuel N. Hagreen
     Secretary

	 
	DAKOTA WESTMORELAND CORPORATION, a Delaware corporation

By:/s/ Samuel N. Hagreen
     Samuel N. Hagreen
     Secretary

	 
	WESTMORELAND CANADIAN INVESTMENTS, L.P., a limited partnership organized and existing under the laws of the Province of Quebec

By:Westmoreland Canada LLC, its general partner

By:/s/ Jennifer S. Grafton
     Jennifer S. Grafton
     Secretary

	 
	WESTMORELAND CANADA HOLDINGS INC., a corporation organized and existing under the laws of the Province of Alberta

By:/s/ Jennifer S. Grafton
Jennifer S. Grafton
Assistant Secretary

(Signature Page to Second Amended and Restated Loan and Security Agreement)

	
		
	BORROWERS:
	WESTMORELAND PRAIRIE RESOURCES INC., a corporation organized and existing under the laws of the Province of Alberta

By:/s/ Jennifer S. Grafton
Jennifer S. Grafton
Assistant Secretary

	 
	PRAIRIE MINES & ROYALTY ULC, an unlimited liability company organized under the laws of the Province of Alberta

By:/s/ Jennifer S. Grafton
Jennifer S. Grafton
Assistant Secretary

	 
	COAL VALLEY RESOURCES, INC., a corporation organized and existing under the laws of the Province of Alberta

By:/s/ Jennifer S. Grafton
Jennifer S. Grafton
Assistant Secretary

	 
	PRAIRIE COAL LTD., a corporation organized and existing under the laws of the Province of Saskatchewan

By:/s/ Jennifer S. Grafton
Jennifer S. Grafton
Assistant Secretary

	 
	WILLOWVAN MINING LTD., a  corporation organized and existing under the laws of the Province of Saskatchewan

By:/s/ Jennifer S. Grafton
Jennifer S. Grafton
Assistant Secretary

(Signature Page to Second Amended and Restated Loan and Security Agreement)

	
		
	BORROWERS:
	POPLAR RIVER COAL MINING PARTNERSHIP, a partnership organized and existing under the laws of the Province of Saskatchewan

By:  Prairie Mines & Royalty ULC, its    partner

By:/s/ Jennifer S. Grafton
     Jennifer S. Grafton
     Assistant Secretary

	 
	WCC HOLDING B.V., a B.V. organized and existing under the laws of the Netherlands

By:/s/ Jason William Veenstra
Jason William Veenstra
Managing Director A

By:/s/ R.H.W. Funnekotter
R.H.W. Funnekotter
Managing Director B

(Signature Page to Second Amended and Restated Loan and Security Agreement)

	
		
	LENDER:
	THE PRIVATEBANK AND TRUST COMPANY

By:/s/ Douglas Colletti
Douglas Colletti
Managing Director 

(Signature Page to Second Amended and Restated Loan and Security Agreement)

	
		
	LENDER:
	BANK OF THE WEST

By:/s/ Terry A. Switz
Terry A. Switz
Vice President 

ANNEX 1 - COMMITMENTS

	
			
	Lender
	US Revolving Loan
Commitment
	Canadian Revolving Loan
Commitment

	The PrivateBank and Trust Company

	$15,000,000
	$10,000,000

	Bank of the West

	$15,000,000
	$10,000,000

	Total

	$30,000,000
	$20,000,000

Annex I
Page 1

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