Document:

exv4w2

 

Exhibit 4.2

ELEVENTH SUPPLEMENTAL INDENTURE

     ELEVENTH SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of September
29, 2006, by and among the entities listed on Schedule 1 attached hereto (the “Guaranteeing
Subsidiaries”), each being a subsidiary of Peabody Energy Corporation (or its permitted
successor), a Delaware corporation (the “Company”), the Company, the other Subsidiary
Guarantors (as defined in the Indenture referred to herein) and US Bank National Association, as
Trustee under the Indenture referred to below (the “Trustee”).

WITNESSETH

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture (the
“Indenture”), dated as of March 21, 2003 providing for the issuance of an unlimited amount
of 6-7/8% Notes due 2013 (the “Notes”), as supplemented by a First Supplemental Indenture,
dated as of May 7, 2003; Second Supplemental Indenture, dated as of September 30, 2003; Third
Supplemental Indenture, dated as of February 24, 2004; Fourth Supplemental Indenture, dated as of
April 22, 2004; Fifth Supplemental Indenture, dated as of October 18, 2004; Sixth Supplemental
Indenture, dated as of January 20, 2005; Seventh Supplemental Indenture, dated as of September 30,
2005, Eighth Supplemental Indenture, dated as of January 20, 2006; Ninth Supplemental Indenture,
dated as of June 13, 2006; and Tenth Supplemental Indenture, dated as of June 30, 2006; and

     WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiaries
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiaries shall unconditionally guarantee all of the Company’s Obligations under
the Notes on the terms and conditions set forth herein (the “Subsidiary Guarantee”); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiaries and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have
the meanings assigned to them in the Indenture.

     2. Agreement to Guarantee. Each of the Guaranteeing Subsidiaries hereby agree as
follows:

	 	(a)	 	Along with all Subsidiary Guarantors named in the Indenture, to
jointly and severally Guarantee to each Holder of a Note authenticated and
delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of the Indenture, the Notes or
the obligations of the Company hereunder or thereunder, that:

	 	(i)	 	the principal of and interest on the Notes will
be promptly paid in full when due, whether at maturity, by
acceleration, redemption or otherwise, and interest on the overdue
principal of and interest on the Notes, if any, if lawful, and all
other obligations of the Company to the Holders or the
Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and

 

 

	 	(ii)	 	in case of any extension of time of payment or
renewal of any Notes or any of such other obligations, that same will
be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

	 	 	 	Failing payment when due of any amount so guaranteed or any performance so
guaranteed for whatever reason, the Subsidiary Guarantors shall be jointly
and severally obligated to pay the same immediately. Each Subsidiary
Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.
	 
	 	(b)	 	The obligations hereunder shall be joint and several and
unconditional, irrespective of the validity or enforceability of the Notes or
the obligations of the Company under the Indenture, the absence of any action
to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
Subsidiary Guarantor.
	 
	 	(c)	 	The following is hereby waived: diligence, presentment, demand
of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever.
	 
	 	(d)	 	This Subsidiary Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and the
Indenture.
	 
	 	(e)	 	If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Subsidiary Guarantors, or any
custodian, Trustee, liquidator or other similar official acting in relation to
either the Company or the Subsidiary Guarantors, any amount paid by either to
the Trustee or such Holder, this Subsidiary Guarantee, to the extent
theretofore discharged, shall be reinstated in full force and effect.
	 
	 	(f)	 	The Guaranteeing Subsidiaries shall not be entitled to any
right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby.
	 
	 	(g)	 	As between the Subsidiary Guarantors, on the one hand, and the
Holders and the Trustee, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article 6 of the Indenture
for the purposes of this Subsidiary Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (y) in the event of any declaration of
acceleration of such obligations as provided in Article 6 of the Indenture,
such obligations (whether or not due and payable) shall forthwith become due
and payable by the Subsidiary Guarantors for the purpose of this Subsidiary
Guarantee.
	 
	 	(h)	 	The Subsidiary Guarantors shall have the right to seek
contribution from any non-paying Subsidiary Guarantor so long as the exercise
of such right does not impair the rights of the Holders under the Subsidiary
Guarantee.
	 
	 	(i)	 	Pursuant to Section 10.04 of the Indenture, after giving effect
to any maximum amount and any other contingent and fixed liabilities that are
relevant under any 

2

 

	 	 	 	applicable Bankruptcy or fraudulent conveyance laws, and
after giving effect to any collections from, rights to receive contribution
from or payments made by or on behalf of any other Subsidiary Guarantor in
respect of the obligations of such other Subsidiary Guarantor under Article 10
of the Indenture shall result in the obligations of such Subsidiary Guarantor
under Subsidiary Guarantee not constituting a fraudulent transfer or
conveyance.

     3. Execution and Delivery. Each of the Guaranteeing Subsidiaries agrees that the
Subsidiary Guarantees shall remain in full force and effect notwithstanding any failure to endorse
on each Note a notation of such Subsidiary Guarantee.

     4. Guaranteeing Subsidiary May Consolidate, Etc. on Certain Terms.

	 	(a)	 	The Guaranteeing Subsidiaries may not consolidate with or merge
with or into (whether or not such Senior Subordinated Note Guarantor is the
surviving Person) another corporation, Person or entity whether or not
affiliated with such Subsidiary Guarantor unless:

	 	(i)	 	subject to Section 10.04 of the Indenture, the
Person formed by or surviving any such consolidation or merger (if
other than a Subsidiary Guarantor or the Company) unconditionally
assumes all the obligations of such Subsidiary Guarantor, pursuant to a
supplemental Indenture in form and substance reasonably satisfactory to
the Trustee, under the Notes, the Indenture and the Subsidiary
Guarantee on the terms set forth herein or therein; and
	 
	 	(ii)	 	immediately after giving effect to such
transaction, no Default or Event of Default exists.

	 	(b)	 	In case of any such consolidation, merger, sale or conveyance
and upon the assumption by the successor corporation, by supplemental
Indenture, executed and delivered to the Trustee and satisfactory in form to
the Trustee, of the Subsidiary Guarantee endorsed upon the Notes and the due
and punctual performance of all of the covenants and conditions of the
Indenture to be performed by the Subsidiary Guarantor, such successor
corporation shall succeed to and be substituted for the Subsidiary Guarantor
with the same effect as if it had been named herein as a Subsidiary Guarantor.
Such successor corporation thereupon may cause to be signed any or all of the
Subsidiary Guarantees to be endorsed upon all of the Notes issuable hereunder
which theretofore shall not have been signed by the Company and delivered to
the Trustee. All the Subsidiary Guarantees so issued shall in all respects
have the same legal rank and benefit under the Indenture as the Subsidiary
Guarantees theretofore and thereafter issued in accordance with the terms of
the Indenture as though all of such Subsidiary Guarantees had been issued at
the date of the execution hereof.
	 
	 	(c)	 	Except as set forth in Articles 4 and 5 of the Indenture, and
notwithstanding clauses (a) and (b) above, nothing contained in the Indenture
or in any of the Notes shall prevent any consolidation or merger of a
Subsidiary Guarantor with or into the Company or another Subsidiary Guarantor,
or shall prevent any sale or conveyance of the property of a Subsidiary
Guarantor as an entirety or substantially as an entirety to the Company or
another Subsidiary Guarantor.

3

 

     5. Releases.

	 	(a)	 	In the event of a sale or other disposition of all of the
assets of any Subsidiary Guarantor, by way of merger, consolidation or
otherwise, or a sale or other disposition of all to the capital stock of any
Subsidiary Guarantor, then such Subsidiary Guarantor (in the event of a sale or
other disposition, by way of merger, consolidation or otherwise, of all of the
capital stock of such Subsidiary Guarantor) or the corporation acquiring the
property (in the event of a sale or other disposition of all or substantially
all of the assets of such Subsidiary Guarantor) will be released and relieved
of any obligations under its Subsidiary Guarantee; provided that the Net
Proceeds of such sale or other disposition are applied in accordance with the
applicable provisions of the Indenture, including without limitation Section
4.10 of the Indenture. Upon delivery by the Company to the Trustee of an
Officer’s Certificate and an Opinion of Counsel to the effect that such sale or
other disposition was made by the Company in accordance with the provisions of
the Indenture, including without limitation Section 4.10 of the Indenture, the
Trustee shall execute any documents reasonably required in order to evidence
the release of any Subsidiary Guarantor from its obligations under its
Subsidiary Guarantee.
	 
	 	(b)	 	Any Subsidiary Guarantor not released from its obligations
under its Subsidiary Guarantee shall remain liable for the full amount of
principal of and interest on the Notes and for the other obligations of any
Subsidiary Guarantor under the Indenture as provided in Article 10 of the
Indenture.

     6. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator, stockholder or agent of the Guaranteeing Subsidiaries, as such, shall have
any liability for any obligations of the Company or any of the Guaranteeing Subsidiaries under the
Notes, any Subsidiary Guarantees, the Indenture or this Supplemental Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes. Such waiver may not be effective to waive
liabilities under the federal securities laws and it is the view of the Commission that such a
waiver is against public policy.

     7. NEW YORK LAW TO GOVERN. THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE THIS SUPPLEMENTAL INDENTURE.

     8. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     9. Effect of Headings. The Section headings herein are for convenience only and
shall not affect the construction hereof.

     10. The Trustee. The Trustee shall not be responsible in any manner whatsoever for
or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guaranteeing
Subsidiaries and the Company.

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be executed
by their respective officers thereunto duly authorized, as of the date first written above.

4

 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	PEABODY ENERGY CORPORATION	 	 	 	US BANK NATIONAL ASSOCIATION	 	 
	(“COMPANY”)	 	 	 	(“TRUSTEE”)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Walter L. Hawkins, Jr.
	 	 	 	By:
	 	/s/ Philip G. Kane, Jr.	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Walter L. Hawkins, Jr.
	 	 	 	Name:
	 	Philip G. Kane, Jr.	 	 
	Title:

	 	Vice President & Treasurer
	 	 	 	Title:
	 	Vice President	 	 

EXISTING SUBSIDIARY GUARANTORS:

	 	 	 
	 

	 	AFFINITY MINING COMPANY
	 

	 	AMERICAN LAND DEVELOPMENT, LLC
	 

	 	AMERICAN LAND HOLDINGS OF ILLINOIS, LLC
	 

	 	AMERICAN LAND HOLDINGS OF INDIANA, LLC
	 

	 	AMERICAN LAND HOLDINGS OF KENTUCKY, LLC
	 

	 	                    f/k/a BTU VENEZUELA, LLC
	 

	 	APPALACHIA MINE SERVICES, LLC
	 

	 	ARCLAR COMPANY, LLC
	 

	 	ARID OPERATIONS INC.
	 

	 	BEAVER DAM COAL COMPANY
	 

	 	BIG RIDGE, INC.
	 

	 	BIG SKY COAL COMPANY
	 

	 	BLACK BEAUTY COAL COMPANY
	 

	 	BLACK BEAUTY EQUIPMENT COMPANY
	 

	 	BLACK BEAUTY HOLDING COMPANY, LLC
	 

	 	BLACK BEAUTY MINING, INC.
	 

	 	BLACK BEAUTY RESOURCES, LLC
	 

	 	                    f/k/a BLACK BEAUTY RESOURCES, INC.
	 

	 	BLACK BEAUTY UNDERGROUND, INC.
	 

	 	BLACK HILLS MINING COMPANY, LLC
	 

	 	BLACK STALLION COAL COMPANY, LLC
	 

	 	BLACK WALNUT COAL COMPANY
	 

	 	BLUEGRASS MINE SERVICES, LLC
	 

	 	                    f/k/a BLUEGRASS COAL COMPANY
	 

	 	BTU EMPIRE CORPORATION
	 

	 	BTU WESTERN RESOURCES, INC.
	 

	 	CABALLO COAL COMPANY
	 

	 	CENTRAL STATES COAL RESERVES OF ILLINOIS, LLC
	 

	 	                    f/k/a PEABODY
DEVELOPMENT LAND
	 

	 	                    HOLDINGS, LLC
	 

	 	CENTRAL STATES COAL RESERVES OF INDIANA, LLC
	 

	 	CENTRAL STATES COAL RESERVES OF KENTUCKY, LLC
	 

	 	CHARLES COAL COMPANY, LLC
	 

	 	                    f/k/a CHARLES COAL COMPANY
	 

	 	CLEATON COAL COMPANY
	 

	 	COAL PROPERTIES, LLC
	 

	 	                    f/k/a COAL PROPERTIES CORP.
	 

	 	COALSALES, LLC
	 

	 	COALSALES II, LLC
	 

	 	COALTRADE INTERNATIONAL, LLC
	 

	 	COALTRADE, LLC
	 

	 	COAL RESERVES HOLDING LIMITED LIABILITY
	 

	 	                    COMPANY NO. 1
	 

	 	COAL RESERVES HOLDING LIMITED LIABILITY

5

 

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	                    COMPANY NO. 2	 	 
	 

	 	COLONY BAY COAL COMPANY	 	 
	 

	 	COLORADO COAL RESOURCES, LLC	 	 
	 

	 	COLORADO YAMPA COAL COMPANY	 	 
	 

	 	COOK MOUNTAIN COAL COMPANY, LLC	 	 
	 

	 	                    f/k/a COOK MOUNTAIN COAL COMPANY	 	 
	 

	 	COTTONWOOD LAND COMPANY	 	 
	 

	 	COULTERVILLE COAL COMPANY, LLC	 	 
	 

	 	                    f/k/a WILLIAMSVILLE COAL COMPANY, LLC	 	 
	 

	 	CYPRUS CREEK LAND COMPANY	 	 
	 

	 	CYPRUS CREEK LAND RESOURCES, LLC	 	 
	 

	 	DIXON MINING COMPANY, LLC	 	 
	 

	 	DODGE HILL HOLDING JV, LLC	 	 
	 

	 	DODGE HILL OF KENTUCKY, LLC	 	 
	 

	 	DODGE HILL MINING COMPANY, LLC	 	 
	 

	 	DYSON CREEK COAL COMPANY, LLC	 	 
	 

	 	EACC CAMPS, INC.	 	 
	 

	 	EAGLE COAL COMPANY	 	 
	 

	 	EASTERN ASSOCIATED COAL, LLC	 	 
	 

	 	                    f/k/a EASTERN ASSOCIATED COAL CORP.	 	 
	 

	 	EASTERN COAL COMPANY, LLC	 	 
	 

	 	EASTERN ROYALTY CORP.	 	 
	 

	 	EMPIRE MARINE, LLC	 	 
	 

	 	FALCON COAL COMPANY	 	 
	 

	 	FORT ENERGY, LLC	 	 
	 

	 	GALLO FINANCE COMPANY	 	 
	 

	 	GOLD FIELDS CHILE, LLC	 	 
	 

	 	                    f/k/a GOLD FIELDS CHILE, S.A.	 	 
	 

	 	GOLD FIELDS MINING, LLC	 	 
	 

	 	GOLD FIELDS ORTIZ, LLC	 	 
	 

	 	                    f/k/a GOLD FIELDS OPERATING CO. — ORTIZ	 	 
	 

	 	GRAND EAGLE MINING, INC.	 	 
	 

	 	HAYDEN GULCH TERMINAL, INC.	 	 
	 

	 	HIGHLAND MINING COMPANY, LLC	 	 
	 

	 	                    f/k/a HIGHLAND MINING COMPANY	 	 
	 

	 	HIGHWALL MINING SERVICES COMPANY	 	 
	 

	 	HILLSIDE MINING COMPANY	 	 
	 

	 	HMC MINING, LLC	 	 
	 

	 	INDEPENDENCE MATERIAL HANDLING, LLC	 	 
	 

	 	                    f/k/a INDEPENDENCE MATERIAL HANDLING	 	 
	 

	 	                    COMPANY	 	 
	 

	 	INDIAN HILL COMPANY	 	 
	 

	 	INTERIOR HOLDINGS, LLC	 	 
	 

	 	                    f/k/a INTERIOR HOLDINGS CORP.	 	 
	 

	 	JAMES RIVER COAL TERMINAL, LLC	 	 
	 

	 	                    f/k/a JAMES RIVER COAL TERMINAL COMPANY	 	 
	 

	 	JARRELL’S BRANCH COAL COMPANY	 	 
	 

	 	JUNIPER COAL COMPANY	 	 
	 

	 	KANAWHA RIVER VENTURES I, LLC	 	 
	 

	 	KAYENTA MOBILE HOME PARK, INC.	 	 
	 

	 	LOGAN FORK COAL COMPANY	 	 
	 

	 	MARTINKA COAL COMPANY, LLC	 	 
	 

	 	                    f/k/a MARTINKA COAL COMPANY	 	 

6

 

	 	 	 
	 

	 	MIDCO SUPPLY AND EQUIPMENT CORPORATION
	 

	 	MIDWEST COAL ACQUISITION CORP.
	 

	 	MIDWEST COAL RESERVES OF ILLINOIS, LLC
	 

	 	MIDWEST COAL RESERVES OF INDIANA, LLC
	 

	 	MIDWEST COAL RESOURCES, LLC
	 

	 	MOUNTAIN VIEW COAL COMPANY, LLC
	 

	 	                    f/k/a MOUNTAIN VIEW COAL COMPANY
	 

	 	MUSTANG ENERGY COMPANY, L.L.C.
	 

	 	NEW MEXICO COAL RESOURCES, LLC
	 

	 	NORTH PAGE COAL CORP.
	 

	 	OHIO COUNTY COAL COMPANY
	 

	 	PATRIOT COAL COMPANY, L.P.
	 

	 	PATRIOT MIDWEST HOLDINGS, LLC
	 

	 	PDC PARTNERSHIP HOLDINGS, LLC
	 

	 	                    f/k/a PDC PARTNERSHIP HOLDINGS, INC.
	 

	 	PEABODY AMERICA, INC.
	 

	 	PEABODY ARCHVEYOR, L.L.C.
	 

	 	PEABODY CARDINAL GASIFICATION, LLC
	 

	 	PEABODY COAL COMPANY, LLC
	 

	 	                    f/k/a PEABODY COAL COMPANY
	 

	 	PEABODY DEVELOPMENT COMPANY, LLC
	 

	 	PEABODY ELECTRICITY, LLC
	 

	 	PEABODY ENERGY GENERATION HOLDING
	 

	 	                    COMPANY
	 

	 	PEABODY ENERGY INVESTMENTS, INC.
	 

	 	PEABODY ENERGY SOLUTIONS, INC.
	 

	 	PEABODY HOLDING COMPANY, LLC
	 

	 	                    f/k/a PHC ACQUISITION CORP.
	 

	 	PEABODY INVESTMENTS CORP.
	 

	 	PEABODY NATURAL GAS, LLC
	 

	 	PEABODY NATURAL RESOURCES COMPANY
	 

	 	PEABODY POWERTREE INVESTMENTS, LLC
	 

	 	PEABODY RECREATIONAL LANDS, L.L.C.
	 

	 	PEABODY SOUTHWESTERN COAL COMPANY
	 

	 	PEABODY TERMINALS, LLC
	 

	 	                    f/k/a PEABODY TERMINALS, INC.
	 

	 	PEABODY VENEZUELA COAL CORP.
	 

	 	PEABODY VENTURE FUND, LLC
	 

	 	PEABODY-WATERSIDE DEVELOPMENT, L.L.C.
	 

	 	PEABODY WESTERN COAL COMPANY
	 

	 	PEC EQUIPMENT COMPANY, LLC
	 

	 	PINE RIDGE COAL COMPANY, LLC
	 

	 	                    f/k/a PINE RIDGE COAL COMPANY
	 

	 	POINT PLEASANT DOCK COMPANY, LLC
	 

	 	POND CREEK LAND RESOURCES, LLC
	 

	 	POND RIVER LAND COMPANY
	 

	 	PORCUPINE PRODUCTION, LLC
	 

	 	PORCUPINE TRANSPORTATION, LLC
	 

	 	POWDER RIVER COAL, LLC
	 

	 	                    f/k/a POWDER RIVER COAL COMPANY
	 

	 	POWDER RIVER RESOURCES, LLC
	 

	 	PRAIRIE STATE GENERATING COMPANY, LLC
	 

	 	RANDOLPH LAND HOLDING COMPANY, LLC
	 

	 	RIVERS EDGE MINING, INC.

7

 

	 	 	 
	 

	 	RIVERVIEW TERMINAL COMPANY
	 

	 	SCHOOL CREEK COAL COMPANY, LLC
	 

	 	SENECA COAL COMPANY
	 

	 	SENTRY MINING, LLC
	 

	 	                    f/k/a SENTRY MINING COMPANY
	 

	 	SHOSHONE COAL CORPORATION
	 

	 	SNOWBERRY LAND COMPANY
	 

	 	STAR LAKE ENERGY COMPANY, L.L.C.
	 

	 	STERLING SMOKELESS COAL COMPANY, LLC
	 

	 	                    f/k/a STERLING SMOKELESS COAL COMPANY
	 

	 	SUGAR CAMP PROPERTIES
	 

	 	THOROUGHBRED, L.L.C.
	 

	 	THOROUGHBRED GENERATING COMPANY, LLC
	 

	 	THOROUGHBRED MINING COMPANY, L.L.C.
	 

	 	TWENTYMILE COAL COMPANY
	 

	 	UNION COUNTY COAL CO., LLC
	 

	 	WEST ROUNDUP RESOURCES, INC.
	 

	 	YANKEETOWN DOCK, LLC
	 

	 	                    f/k/a YANKEETOWN DOCK CORPORATION

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Walter L. Hawkins, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Walter L. Hawkins, Jr.	 	 
	 

	 	Title:
	 	Vice President	 	 

8

 

ADDITIONAL GUARANTORS:

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	EASTERN COAL HOLDING COMPANY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Walter L. Hawkins, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Walter L. Hawkins, Jr.	 	 
	 

	 	Title:
	 	Vice President & Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	SCHOOL CREEK COAL RESOURCES, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Walter L. Hawkins, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Walter L. Hawkins, Jr.	 	 
	 

	 	Title:
	 	Vice President & Treasurer	 	 

9

 

SCHEDULE 1

NEW GUARANTEEING SUBSIDIARIES

Eastern Coal Holding Company, Inc., a Delaware corporation

School Creek Coal Resources, LLC, a Delaware limited liability company

10exv10w3

 

Exhibit 10.3

AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of September 27, 2006

     This AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment No.
1”) is made by and among PEABODY ENERGY CORPORATION, a Delaware corporation (the
“Borrower”), the Lenders (as defined below) and BANK OF AMERICA, N.A., as Administrative
Agent (the “Administrative Agent”).

PRELIMINARY STATEMENTS:

     1. The Borrower, each lender from time to time party thereto (collectively, the
“Lenders” and individually, a “Lender”) and the Administrative Agent have entered
into that certain Third Amended and Restated Credit Agreement, dated as of September 15, 2006 (the
“Credit Agreement”); capitalized terms used and not otherwise defined herein have the
meanings assigned to such terms in the Credit Agreement.

     2. The Borrower has requested that the Lenders amend the Credit Agreement to permit the
Borrower to acquire the shares of Excel by way of a tender offer.

     3. Subject to the terms and conditions set forth below, and in consideration of certain
agreements of the Borrower and other Loan Parties set forth herein and in the accompanying Consent
of Loan Parties, the requisite Lenders are willing to agree to this Amendment No. 1.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

          SECTION 1 Amendments to the Credit Agreement. Upon the satisfaction of the applicable
conditions precedent set forth in Section 2, the Credit Agreement is hereby amended as follows:

     (a) The following new section heading is hereby added to the Table of Contents following
Section 5.17 in the Table of Contents,:

     “Section 5.18. Use of Proceeds.”

 

 

     (b) The following new definitions are hereby added to Section 1.01 of the Credit
Agreement:

     ““Excel Board Control” has the meaning specified in the definition of Consolidated
EBITDA.”

     ““Tender Offer” means a takeover offer pursuant to the laws of Australia for all of
the outstanding ordinary shares of Excel and any follow up arrangements to acquire any remaining
outstanding ordinary shares of Excel pursuant to lawful means.”

     (c) The following definitions to Section 1.01 of the Credit Agreement are hereby
amended in its entirety to read:

     ““Acquisition” means the proposed acquisition of Excel through either (i) a scheme of
arrangement to acquire all of the outstanding ordinary shares of Excel on the Acquisition Effective
Date and the payment of fees and expenses related thereto, or (ii) the Tender Offer and the payment
of fees and expenses related thereto.”

     ““Acquisition Effective Date” means either (i) the date on which the Scheme is
implemented, currently expected to be on or before December 31, 2006, as such date may be postponed
by the parties to the Merger Agreement, and in no event later than January 31, 2007, or (ii) each
date on which the Tender Offer is consummated, and in no event later than January 31, 2007.”

     ““Term Loan Borrowing” means (i) a borrowing consisting of simultaneous Term Loans of
the same Type and (ii) one or more borrowings of Delayed Draw Term Loans of the same Type, and, in
the case of Eurocurrency Rate Loans, having the same Interest Period made by each of the Term Loan
Lenders pursuant to Section 2.01(a).”

     (d) The definition of “Consolidated EBITDA” in Section 1.01 of the Credit
Agreement shall be amended by deleting the period at the end and adding the following at the end of
such definition:

     “; provided that, in calculating Consolidated EBITDA of the Borrower and its
Subsidiaries for any period after the consummation of the Acquisition: (i) if the Borrower and its
Subsidiaries own greater than 50% but less than all of the outstanding ordinary shares of Excel and
a majority of the members of the board of directors or equivalent governing body of Excel are
individuals whose election or nomination to such board of directors or other governing body was
approved by the Borrower (“Excel Board Control”), the portion of Consolidated EBITDA
attributable to Excel and its Subsidiaries shall be limited to a percentage of the Consolidated
EBITDA equal to the percentage of outstanding ordinary shares of Excel then owned by the Borrower
and its Restricted Subsidiaries, and (ii) if the Borrower and its Restricted Subsidiaries own less
than a majority of the common stock of Excel or the Borrower does not have Excel Board Control, the
calculation of Consolidated EBITDA (A) shall exclude any amounts attributable to Excel and its
Subsidiaries, and (B) shall not include any earnings on the Borrower’s equity investment in Excel
unless the Borrower receives cash distributions of such equity earnings in such period.”

2

 

     (e) The first subsection (ii) of Section 2.01(a) shall be amended in its entirety to
read:

     “(ii) each Lender holding a Delayed Draw Term Loan Commitment severally agrees to make, in
Dollars during the Delayed Draw Term Loan Commitment Period, one or more delayed draw term loans,
each of which shall be a Term Loan hereunder (each a “Delayed Draw Term Loan”), to the
Borrower in an aggregate principal amount not to exceed such Term Loan Lender’s Applicable
Percentage of the Delayed Draw Term Loan Commitment;”

     (f) The first paragraph to Section 4.02 of the Credit Agreement is hereby amended in
its entirety to read:

     “The obligation of each Lender to honor any Request for Credit Extension with respect to the
Delayed Draw Term Loan or with respect to the Revolving Credit Facility, the proceeds of which will
be used to finance the Acquisition is subject to the Effective Date having occurred and the
following conditions precedent, which shall be either (i) in the case of the Scheme, conclusively
tested no later than 8:00 a.m., Sydney time, on the Second Court Date (as defined in the Merger
Agreement) for the Scheme (other than conditions which require court approval for the Scheme and
assuming the effectiveness of the Scheme substantially contemporaneously with such Second Court
Date), or (ii) in the case of any Request for Credit Extension to finance the Tender Offer, be
tested on the date of the applicable requested Borrowing:”

     (g) Section 4.02(a) of the Credit Agreement is hereby amended in its entirety to read:

     “(A) In the case of the Scheme, there shall not have occurred either (1) one or more changes,
events, occurrences or matters which has had or is likely to have the effect of a diminution in the
(i) consolidated net assets of Excel and all its Subsidiaries, taken as a whole (calculated on the
basis of the International Financial Reporting Standards as adopted in Australia
(“AIFRS”)), of at least A$50,000,000, (ii) consolidated annual net profit after tax
(calculated on the basis of AIFRS), in any financial year after the one ending June 30, 2006 of
Excel and all its Subsidiaries, taken as a whole, of at least A$12,500,000, or (iii) other than as
a consequence of changes in coal prices or currency exchange rate changes or (2) an event takes
place or is reasonably likely to take place which would prevent Excel from operating its existing
mines, completing its development activities or entering into arrangements in relation to the Wambo
Underground, Wilpinjong or Millenium projects (as defined in the Merger Agreement) in the manner
currently contemplated by Excel and such event is sufficiently adverse to the financial position,
profitability or prospects of Excel so as to affect the commercial viability of the Acquisition for
the Borrower in a material respect, having regard to the consideration to be paid in the Scheme, or
(B) in the case of the Tender Offer, all conditions precedent to the Tender Offer have either been
satisfied or waived with the consent of the Administrative Agent.”

     (h) The first 2 words in Section 4.02(b) is hereby deleted and replaced with the
following:

     “In the case of the Scheme, the Scheme”

     (i) Section 4.02(c) of the Credit Agreement is hereby amended in its entirety to read:

     “No Default shall exist, or would result from such proposed Credit Extension or the
application of the proceeds thereof, by reason of (i) in the case of the Scheme, any breach of any

3

 

representation or warranty which also constitutes a breach of a representation and warranty in
the Merger Agreement that is material to the interests of the Lenders and would result in the
Borrower’s (or an applicable affiliate thereof) having a right to terminate its obligations
thereunder, (ii) in the case of the Scheme or the Tender Offer, any breach of the representations
and warranties contained in Section 5.01(a)(i) and (b)(ii), 5.02(a),
5.04 or 5.14 (it being understood that the funding of the Delayed Draw Term Loan
and any Borrowing of Revolving Credit Loans to fund the Acquisition shall not constitute a waiver
by the Lenders of any default or event of default that may exist under this Agreement at the time
of such funding), and (iii) in the case of the Tender Offer, the occurrence of any event described
in Section 8.01(f);”

     (j) The following Section 5.18 is hereby added in its entirety following Section
5.17:

     “Section 5.18. Use of Proceeds. The Borrower will use the proceeds of the Loans solely as
provided for in Section 6.11.”

     (k) Section 6.11 is hereby amended in its entirety to read:

     “On the Effective Date, the Term Loan Facility and the Revolving Credit Facility shall be
available to (i) refinance and continue indebtedness under the Existing Credit Agreement, and to
pay fees and expenses related to such refinancing and continuation, and (ii) for fees and expenses
related to the Acquisition. After the Effective Date, (i) the Revolving Credit Facility shall be
available for only working capital, capital expenditures, and other lawful corporate purposes,
including to finance the Acquisition, and (ii) the Delayed Draw Term Loan will be available only to
finance the Acquisition (A) on or about the Acquisition Effective Date if the Borrower consummates
the Acquisition pursuant to the Scheme, or (B) in multiple draws during the period from the
Effective Date through the Acquisition Effective Date if the Borrower completes the Acquisition
pursuant to the Tender Offer; provided that, if the Borrower proceeds to consummate
the Acquisition pursuant to (a) the Scheme, the Borrower agrees that (i) if the Acquisition is not
consummated within thirty (30) days of the date on which the Delayed Draw Term Loan is made to the
Borrower to fund the Scheme, the proceeds of such Delayed Draw Term Loan will be returned
immediately to the Lenders and used to prepay the Term Loan and (ii) such agreement will be
reflected to the reasonable satisfaction of the Administrative Agent in a written escrow or similar
arrangement governing the proceeds of the Delayed Draw Term Loan for the period from the date of
making of such Loan until such proceeds are used to consummate the Acquisition or returned to the
Lenders as specified in clause (i) of this sentence (whichever occurs first), or (b) the Tender
Offer, if prior to the time the Borrower and its Restricted Subsidiaries own all of the outstanding
ordinary shares of Excel, the Borrower determines not to consummate the Acquisition and,
subsequently, sells or otherwise disposes of any or all of such outstanding ordinary shares of
Excel, the Borrower will prepay the Term Loans with the proceeds of such sale or disposition up to
the amount of the Delayed Draw Term Loans that were used to acquire any such outstanding ordinary
shares of Excel.”

     (l) The following new Section 7.01(t) shall be added in its entirety following
Section 7.01(s) to read:

     “(t) Liens in favor of an escrow agent arising under an escrow arrangement incurred in
connection with the issuance of notes with respect of the proceeds of such notes and anticipated
interest expenses with respect to such notes.”

4

 

     (m) Section 7.02(l) is hereby amended in its entirety to read:

     “Investments by the Borrower or any Restricted Subsidiary in an aggregate amount not in excess
of 15.0% of Tangible Assets of the Borrower and Restricted Subsidiaries.”

     (n) Section 7.03(k) is hereby amended by deleting the period at the end and adding the
following to the end:

     “; provided that, unless the Borrower and its Restricted Subsidiaries own greater than
50% of the outstanding ordinary shares of Excel and the Borrower has Excel Board Control, all
Indebtedness of Excel and its Subsidiaries shall be Non-Recourse Debt.”

          SECTION 2 Conditions to Effectiveness of Amendment. The effectiveness of the
amendments contained in Section 1 of this Amendment No. 1 is conditioned upon satisfaction of the
following conditions precedent:

     (a) the Administrative Agent shall have (i) received counterparts of this Amendment No. 1
signed by the Borrower and the requisite Lenders and counterparts of the Consent of Loan Parties
attached hereto (the “Consent”) signed by the Loan Parties and (ii) acknowledged this
Amendment No. 1 in writing;

     (b) each of the representations and warranties in Section 3 below shall be true and correct in
all material respects as of the date on which this Amendment No. 1 becomes effective;

     (c) the Administrative Agent shall have received the executed legal opinion of (x) Simpson,
Thacher & Bartlett LLP, counsel to the Borrower and special New York counsel to the other Loan
Parties, and (y) Joseph Bean, Esq., special Missouri counsel to the Borrower and in-house counsel
to the other Loan Parties; and

     (d) the Administrative Agent shall have received such other documents, instruments and
opinions as it shall have reasonably requested.

          SECTION 3 Representations and Warranties. The Borrower represents and warrants to the
Administrative Agent and the Lenders as follows:

     (a) Authority. Each of the Loan Parties has the requisite corporate, limited
liability or other such power and authority to execute and deliver this Amendment No. 1 and the
Consent, as applicable, and to perform its obligations hereunder and under the Loan Documents (as
modified hereby). The execution, delivery and performance by the Borrower and each other Loan
Party of this Amendment No. 1, the Consent (as applicable), the Loan Documents (as modified hereby)
and the transactions contemplated hereby and thereby have been duly approved by all necessary
corporate action of such Person and no other corporate proceedings on the part of such Person are
necessary to consummate such transactions.

5

 

     (b) No Legal Bar. The execution and delivery of this Amendment No. 1 and of the
Consent by each Loan Party party thereto, and the performance of the Credit Agreement and each
other Loan Document, as amended hereby, by the Borrower and each other Loan Party party thereto
will not violate any Requirement of Law or any Contractual Obligation applicable to or binding on
the Borrower, any Restricted Subsidiary or any of their respective properties or assets, except to
the extent that such violation could not reasonably be expected to have a Material Adverse Effect.

     (c) Enforceability. This Amendment No. 1 has been duly executed and delivered by the
Borrower. The Consent has been duly executed and delivered by each Loan Party. This Amendment No.
1, the Consent and each Loan Document (as modified hereby) is the legal, valid and binding
obligation of such Loan Party, enforceable against each Loan Party that is party thereto in
accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other Laws relating to or affecting creditors’ rights generally,
general principles of equity, regardless of whether considered in a proceeding in equity or at law
and an implied covenant of good faith and fair dealing.

     (d) Representations and Warranties. The representations and warranties contained in
each Loan Document (other than any such representations and warranties that, by their terms, are
specifically made as of a date other than the date hereof) are true and correct in all material
respects on and as of the date hereof as though made on and as of the date hereof.

     (e) No Default. Both immediately before and after giving effect to the amendments set
forth in Section 1 hereof no event has occurred and is continuing that constitutes a Default or
Event of Default.

          SECTION 4 Reference to and Effect on Credit Agreement.

     (a) Upon and after the effectiveness of this Amendment No. 1, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and
be a reference to the Credit Agreement as modified hereby.

     (b) Except as specifically modified above, the Credit Agreement and the other Loan Documents
are and shall continue to be in full force and effect and are hereby in all respects ratified and
confirmed.

     (c) The execution, delivery and effectiveness of this Amendment No. 1 shall not operate as a
waiver of any right, power or remedy of the Administrative Agent or any Lender under any of the
Loan Documents, nor, except as expressly provided herein, constitute a waiver or amendment of any
provision of any of the Loan Documents.

          SECTION 5 Counterparts. This Amendment No. 1 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 to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a signature page to
this Amendment No. 1 by facsimile shall be effective as delivery of a manually executed counterpart
of this Amendment No. 1 or such Consent.

6

 

          SECTION 6 Severability. Any provision of this Amendment No. 1 that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          SECTION 7 Governing Law. This Amendment No. 1 shall be governed by, and construed in
accordance with, the laws of the State of New York.

[Signature Page to Follow]

7

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be executed by
their respective officers thereunto duly authorized, as of the date first written above.

	 	 	 	 	 
	 	 	PEABODY ENERGY CORPORATION,
	 	 	a Delaware corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Walter L. Hawkins, Jr.
	 

	 	 	 	 
	 

	 	 	 	Name: Walter L. Hawkins, Jr.
	 

	 	 	 	Title: Vice President and Treasurer

 

 

	 	 	 	 	 
	 	 	NATIONAL CITY BANK, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Eric Hartman
	 

	 	 	 	 
	 

	 	 	 	Name: Eric Hartman
	 

	 	 	 	Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	CITIGROUP, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stuart G. Miller
	 

	 	 	 	 
	 

	 	 	 	Name: Stuart G. Miller
	 

	 	 	 	Title: Managing Director

 

 

	 	 	 	 	 
	 	 	LEHMAN COMMERCIAL PAPER INC., as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Craig Malloy
	 

	 	 	 	 
	 

	 	 	 	Name: Craig Malloy
	 

	 	 	 	Title: Authorized Signatory

 

 

	 	 	 	 	 
	 	 	PNC BANK NATIONAL ASSOCIATION, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Dale Stein
	 

	 	 	 	 
	 

	 	 	 	Name: Dale Stein
	 

	 	 	 	Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	COMERICA BANK, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark Leveille
	 

	 	 	 	 
	 

	 	 	 	Name: Mark Leveille
	 

	 	 	 	Title: AVP

 

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stacey Haimes
	 

	 	 	 	 
	 

	 	 	 	Name: Stacey Haimes
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE, Cayman Islands Branch as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Doreen Barr
	 

	 	 	 	 
	 

	 	 	 	Name: Doreen Barr
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Shaheen Malik
	 

	 	 	 	 
	 

	 	 	 	Name: Shaheen Malik
	 

	 	 	 	Title: Associate

 

 

	 	 	 	 	 
	 	 	COMMONWEALTH BANK OF AUSTRALIA, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Jeff Heazlewood
	 

	 	 	 	 
	 

	 	 	 	Name: Jeff Heazlewood
	 

	 	 	 	Title: Relationship Executive

 

 

	 	 	 	 	 
	 	 	BANK OF
TOKYO-MITSUBISHI UFJ TRUST COMPANY, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles Stewart
	 

	 	 	 	 
	 

	 	 	 	Name: Charles Stewart
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	BMO CAPITAL MARKETS FINANCING, INC., as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Cahal Carmody
	 

	 	 	 	 
	 

	 	 	 	Name: Cahal Carmody
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	The Governor and
Company of the BANK OF IRELAND, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Deirdre Reddan
	 

	 	 	 	 
	 

	 	 	 	Name: Deirdre Reddan
	 

	 	 	 	Title: Authorised Signatory
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Malcolm O’Connell
	 

	 	 	 	 
	 

	 	 	 	Name: Malcolm O’Connell
	 

	 	 	 	Title: Authorised Signatory

 

 

	 	 	 	 	 
	 	 	FIRST BANK, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Traci L. Dodson
	 

	 	 	 	 
	 

	 	 	 	Name: Traci L. Dodson
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Craig J. Anderson
	 

	 	 	 	 
	 

	 	 	 	Name: Craig J. Anderson
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Tim Green
	 

	 	 	 	 
	 

	 	 	 	Name: Tim Green
	 

	 	 	 	Title: Assistant Vice President

 

 

	 	 	 	 	 
	 	 	SUMITOMO MITSUI BANKING CORPORATION, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ William Ginn
	 

	 	 	 	 
	 

	 	 	 	Name: William Ginn
	 

	 	 	 	Title: General Manager

 

 

	 	 	 	 	 
	 	 	SOVEREIGN BANK, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Elisabet C. Hayes
	 

	 	 	 	 
	 

	 	 	 	Name: Elisabet C. Hayes
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	PEOPLE’S BANK, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ George F. Pajk
	 

	 	 	 	 
	 

	 	 	 	Name: George F. Pajk
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	BAYERISCHE HYPO-UND
VEREINSBANK AG, New York Branch, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ William W. Hunter
	 

	 	 	 	 
	 

	 	 	 	Name: William W. Hunter
	 

	 	 	 	Title: Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Annett Guderian
	 

	 	 	 	 
	 

	 	 	 	Name: Annett Guderian
	 

	 	 	 	Title: Associate Director

 

 

	 	 	 	 	 
	 	 	UNION BANK OF CALIFORNIA, N.A., as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Bryan P. Read
	 

	 	 	 	 
	 

	 	 	 	Name: Bryan P. Read
	 

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	BAYERISCHE LANDESBANK, NEW YORK BANK, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John Gregory
	 

	 	 	 	 
	 

	 	 	 	Name: John Gregory
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Norman McClave
	 

	 	 	 	 
	 

	 	 	 	Name: Norman McClave
	 

	 	 	 	Title: First Vice President

 

 

	 	 	 	 	 
	 	 	BANK LEUMI USA, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Joung Hee Hong
	 

	 	 	 	 
	 

	 	 	 	Name: Joung Hee Hong
	 

	 	 	 	Title: First Vice President

 

 

	 	 	 	 	 	 	 	 	 
	 	 	CREDIT INDUSTRIEL ET COMMERCIAL, as Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian O’Leary
	 	/s/ Anthony Rock	 	 
	 	 	 	 	 	 	 
	 

	 	Name:
	 	Brian O’Leary
	 	Anthony Rock	 	 
	 

	 	Title:
	 	Vice President
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	STANDARD CHARTERED BANK, as Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Y. Ng
	 	/s/ Lynn Zennario	 	 
	 	 	 	 	 	 	 
	 

	 	Name:
	 	Andrew Y. Ng
	 	Lynn Zennario	 	 
	 

	 	Title:
	 	Vice President
	 	Senior Vice President	 	 

 

 

	 	 	 	 	 
	 	LASALLE BANK NATIONAL ASSOCIATION, as Lender

 	 
	 	By:  	/s/  Margaret Dierkes
 	 
	 	 	Name:  	Margaret Dierkes 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	WESTPAC BANKING CORPORATION, as Lender

 	 
	 	By:  	/s/  Bradley Scammell
 	 
	 	 	Name:  	Bradley Scammell 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC, as Lender

 	 
	 	By:  	/s/  Brian J. Smith
 	 
	 	 	Name:  	Brian J. Smith 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	BNP Paribas, as Lender

 	 
	 	By:  	/s/  J. Onischuk
 	 
	 	 	Name:  	J. Onischuk 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                        /s/  Greg Smothers
 	 
	 	 	Name:  	Greg Smothers 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	CAYLON New York Branch, as Lender

 	 
	 	By:  	/s/  Lee E. Greve
 	 
	 	 	Name:  	Lee E. Greve 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                       /s/  Joseph A. Philbin
 	 
	 	 	Name:  	Joseph A. Philbin 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	UMB BANK N.A., as Lender

 	 
	 	By:  	/s/  Robert D. Vieth
 	 
	 	 	Name:  	Robert D. Vieth 	 
	 	 	Title:  	Executive Vice President 	 
	 

 

 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, as
Co-Documentation Agent and Lender

 	 
	 	By:  	/s/  Jaap L. Tonckens
 	 
	 	 	Name:  	Jaap L. Tonckens 	 
	 	 	Title:  	Authorized Signatory 	 
	 

 

 

	 	 	 	 	 
	 	ACKNOWLEDGED BY:

BANK OF AMERICA, NA.

as Administrative Agent, on behalf of the

Required Lenders

 	 
	 	By:  	/s/  Todd MacNeill
 	 
	 	 	Name:  	Todd MacNeill 	 
	 	 	Title:  	Vice President

Agency Management Officer III 	 
	 

 

 

CONSENT OF LOAN PARTIES

Dated as of September 27, 2006

     The undersigned, as Guarantors under the “Subsidiary Guaranty” (as such term is defined in and
under the Credit Agreement referred to in the foregoing Amendment No. 1), each hereby consents and
agrees to the foregoing Amendment No. 1 and hereby confirms and agrees that (i) the Subsidiary
Guaranty is, and shall continue to be, in full force and effect and is hereby ratified and
confirmed in all respects except that, upon the effectiveness of said Amendment No. 1, the
reference in the Subsidiary Guaranty to the “Credit Agreement”, “thereunder”, “thereof” and words
of like import referring to the Credit Agreement, shall mean and be a reference to the Credit
Agreement as modified by said Amendment No. 1, and (ii) the Subsidiary Guaranty does, and shall
continue to, constitute a guaranty of the Obligations as defined in the Subsidiary Guaranty.

[Signature
Page to Follow]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Consent of Loan Parties to be executed
by their respective officers thereunto duly authorized, as of the date first written above.

AFFINITY MINING COMPANY

AMERICAN LAND DEVELOPMENT, LLC

AMERICAN LAND HOLDINGS OF ILLINOIS, LLC

AMERICAN LAND HOLDINGS OF INDIANA, LLC

AMERICAN LAND HOLDINGS OF KENTUCKY, LLC

APPALACHIA MINE SERVICES, LLC

ARCLAR COMPANY, LLC

ARID OPERATIONS INC.

BEAVER DAM COAL COMPANY

BIG RIDGE, INC.

BIG SKY COAL COMPANY

BLACK BEAUTY COAL COMPANY

BLACK BEAUTY EQUIPMENT COMPANY

BLACK BEAUTY HOLDING COMPANY, LLC

BLACK BEAUTY RESOURCES, LLC

BLACK HILLS MINING COMPANY, LLC

[Signature block continued]

 

 

BLACK STALLION COAL COMPANY, LLC

BLACK WALNUT COAL COMPANY

BLUEGRASS MINE SERVICES, LLC

BTU EMPIRE CORPORATION

BTU WESTERN RESOURCES, INC.

CABALLO COAL COMPANY

CENTRAL STATES COAL RESERVES OF ILLINOIS, LLC

CENTRAL STATES COAL RESERVES OF INDIANA, LLC

CENTRAL STATES COAL RESERVES OF KENTUCKY, LLC

CHARLES COAL COMPANY, LLC

CLEATON COAL COMPANY

COAL PROPERTIES, LLC

COAL RESERVE HOLDING LIMITED LIABILITY COMPANY NO. 1

COAL RESERVE HOLDING LIMITED LIABILITY COMPANY NO. 2

COALSALES II, LLC

COALSALES, LLC

COALTRADE INTERNATIONAL, LLC

COALTRADE, LLC

[Signature block continued]

B-2

 

COLONY BAY COAL COMPANY

COLORADO COAL RESOURCES, LLC

COLORADO YAMPA COAL COMPANY

COOK MOUNTAIN COAL COMPANY, LLC

COTTONWOOD LAND COMPANY

COULTERVILLE COAL COMPANY, LLC

CYPRUS CREEK LAND COMPANY

CYPRUS CREEK LAND RESOURCES, LLC

DIXON MINING COMPANY, LLC

DODGE HILL HOLDING JV, LLC

DODGE HILL MINING COMPANY, LLC

DODGE HILL OF KENTUCKY, LLC

DYSON CREEK COAL COMPANY, LLC

EACC CAMPS, INC.

EASTERN ASSOCIATED COAL, LLC

EASTERN COAL COMPANY, LLC

EASTERN ROYALTY CORP.

FALCON COAL COMPANY

FORT ENERGY, LLC

GALLO FINANCE COMPANY

[Signature block continued]

B-3

 

GOLD FIELDS CHILE, LLC

GOLD FIELDS MINING, LLC

GOLD FIELDS ORTIZ, LLC

GRAND EAGLE MINING, INC.

HAYDEN GULCH TERMINAL, INC.

HIGHLAND MINING COMPANY, LLC

HIGHWALL MINING SERVICES COMPANY

HILLSIDE MINING COMPANY

HMC MINING, LLC

INDEPENDENCE MATERIAL HANDLING, LLC

INDIAN HILL COMPANY

INTERIOR HOLDINGS, LLC

JAMES RIVER COAL TERMINAL, LLC

JARRELL’S BRANCH COAL COMPANY

JUNIPER COAL COMPANY

KAYENTA MOBILE HOME PARK, INC.

LOGAN FORK COAL COMPANY

MARTINKA COAL COMPANY, LLC

[Signature block continued]

B-4

 

MIDCO SUPPLY AND EQUIPMENT CORPORATION

MIDWEST COAL ACQUISITION CORP.

MIDWEST COAL RESERVES OF ILLINOIS, LLC

MIDWEST COAL RESERVES OF INDIANA, LLC

MIDWEST COAL RESOURCES, LLC

MOUNTAIN VIEW COAL COMPANY, LLC

MUSTANG ENERGY COMPANY, L.L.C.

NEW MEXICO COAL RESOURCES, LLC

NORTH PAGE COAL CORP.

OHIO COUNTY COAL COMPANY

PATRIOT COAL COMPANY, L.P.

PATRIOT MIDWEST HOLDINGS, LLC

PDC PARTNERSHIP HOLDINGS, LLC

PEABODY AMERICA, INC.

PEABODY ARCHVEYOR, L.L.C.

PEABODY CARDINAL GASIFICATION, LLC

PEABODY COAL COMPANY, LLC

PEABODY DEVELOPMENT COMPANY, LLC

[Signature block continued]

B-5

 

PEABODY ELECTRICITY, LLC

PEABODY ENERGY GENERATION HOLDING COMPANY

PEABODY ENERGY INVESTMENTS, INC.

PEABODY ENERGY SOLUTIONS, INC.

PEABODY HOLDING COMPANY, LLC

PEABODY INVESTMENTS CORP.

PEABODY NATURAL GAS, LLC

PEABODY NATURAL RESOURCES COMPANY

PEABODY POWERTREE INVESTMENTS, LLC

PEABODY RECREATIONAL LANDS, L.L.C.

PEABODY SOUTHWESTERN COAL COMPANY

PEABODY TERMINALS, LLC

PEABODY VENEZUELA COAL CORP.

PEABODY VENTURE FUND, LLC

PEABODY WESTERN COAL COMPANY

PEABODY-WATERSIDE DEVELOPMENT, L.L.C.

PEC EQUIPMENT COMPANY, LLC

PINE RIDGE COAL COMPANY, LLC

[Signature block continued]

B-6

 

POINT PLEASANT DOCK COMPANY, LLC

POND CREEK LAND RESOURCES, LLC

POND RIVER LAND COMPANY

PORCUPINE PRODUCTION, LLC

PORCUPINE TRANSPORTATION, LLC

POWDER RIVER COAL, LLC

POWDER RIVER RESOURCES, LLC

PRAIRIE STATE GENERATING COMPANY, LLC

RANDOLPH LAND HOLDING COMPANY, LLC

RIVERS EDGE MINING, INC.

RIVERVIEW TERMINAL COMPANY

SCHOOL CREEK COAL COMPANY, LLC

SCHOOL CREEK COAL RESOURCES, LLC

SENECA COAL COMPANY

SENTRY MINING, LLC

SHOSHONE COAL CORPORATION

SNOWBERRY LAND COMPANY

STAR LAKE ENERGY COMPANY, L.L.C.

[Signature block continued]

B-7

 

STERLING SMOKELESS COAL COMPANY, LLC

SUGAR CAMP PROPERTIES

THOROUGHBRED GENERATING COMPANY, LLC

THOROUGHBRED MINING COMPANY, L.L.C.

THOROUGHBRED, L.L.C.

TWENTYMILE COAL COMPANY

UNION COUNTY COAL COMPANY, LLC

WEST ROUNDUP RESOURCES, INC.

YANKEETOWN DOCK, LLC

	 	 	 
	 

	 	By:     /s/ Walter L. Hawkins, Jr.
	 

	 	 
	 

	 	     Name: Walter L. Hawkins, Jr.
	 

	 	      Title: Vice President and Treasurer

B-8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]