Document:

Amyris 2013 Q2 10-Q Exhibit 10.04 Settlement Agreement (T&L)

CONFIDENTIAL TREATMENT REQUESTED. CERTAIN PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK TO DENOTE WHERE OMISSIONS HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

SETTLEMENT AGREEMENT,  TERMINATION AGREEMENT AND MUTUAL RELEASE
This Settlement Agreement, Termination Agreement, and Mutual Release (this “Settlement”) is made as of this 25th day of June 2013, by and between Tate & Lyle Ingredients Americas LLC (“Tate & Lyle”), a Delaware limited liability company, formerly Tate & Lyle Ingredients Americas, Inc., and Amyris, Inc. (“Amyris”), a Delaware corporation.  

WHEREAS, on or about November 1, 2010, Tate & Lyle and Amyris entered into a Toll Manufacturing Agreement (the “Agreement”) under which Tate & Lyle agreed to manufacture one or more Amyris products, in exchange for monthly fees to be paid by Amyris. 

WHEREAS, in March 2013, Amyris stopped paying invoices issued by Tate & Lyle under the Agreement by the stated due date, despite Tate & Lyle's demands for payment, and has not made payment on invoices subsequently tendered by Tate & Lyle.  Moreover, Amyris sought early termination of the Agreement and asserted that Tate & Lyle failed to perform sufficiently under the Agreement.  These circumstances are referred to collectively herein as the “Dispute.”

WHEREAS, on June 10, 2013, Tate & Lyle advised Amyris that the Agreement was terminated based upon Amyris's uncured default under the Agreement by reason of non-payment of invoices.  

WHEREAS, on June 10, 2013, Tate & Lyle notified Amyris that it was referring the Dispute to be resolved by arbitration administered by the American Arbitration Association (the “Arbitration”).  In addition, on June 10, 2013, Tate & Lyle filed a complaint for preliminary injunctive relief in aid of arbitration in the Circuit Court of the Sixth Judicial Circuit, Decatur, Macon County, Illinois (No. 13 CH 146), which complaint was assigned to Hon. James R. Coryell (the “Litigation”). 

WHEREAS, the parties now desire to terminate the Agreement fully and finally settle and compromise the Dispute, the Arbitration, and the Litigation.  

NOW THEREFORE, in consideration of the mutual covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.Amyris shall make the following payments to Tate & Lyle via wire transfer on or before the dates and times set forth below:
a.    $623,032.74, on or before 1:00 p.m. Central on July 17, 2013
b.    $3,000,000 on or before 1:00 p.m. Central on July 31, 2013
c.    $2,600,000, on or before 1:00 p.m. Central Time on September 16, 2013
d.    $2,600,000, on or before 1:00 p.m. Central Time on December 16, 2013
Such payments are to be made to the following bank account in cleared funds and not subject to deduction for any bank charges:
Account name:     Tate and Lyle Ingredients Americas

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Name of bank:        Bank of America, NA
Swift code:        [*]
Account No.:        [*]
ABA No.:        [*]
2.Effective as of the execution of this Settlement, Amyris hereby assigns, transfers, conveys and delivers to Tate & Lyle for no additional consideration all right, title and interest of Amyris in and to the equipment identified in Addendum A hereto (the “Transferred Equipment”).  Within 14 days after the execution of this Settlement and from time to time thereafter as reasonably requested by Tate & Lyle, Amyris shall execute all instruments of transfer, conveyance, assignment and confirmation and take such other actions as Tate & Lyle may reasonably determine is necessary to transfer, convey and assign to Tate & Lyle full right, title and interest in the Transferred Equipment, to put Tate & Lyle in actual possession thereof and to assist Tate & Lyle in exercising all rights with respect thereto.  The parties agree that the provisions of this paragraph 2 shall govern with respect to the Transferred Equipment notwithstanding anything to the contrary in Section 3.3 of the Agreement (which Section 3.3 shall terminate as of the execution of this Settlement).  The parties agree that the installed value of the equipment identified in Addendum A is $2,729,397.  For purposes of clarification, T&L retains all right, title and interest in the General Equipment as defined in the Agreement.  

3.To secure the payment, performance and observance of Amyris's obligations under paragraph 1, effective as of the execution of this Settlement, Amyris hereby pledges, grants, assigns and transfers to Tate & Lyle a continuing security interest in any remaining Specialized Equipment (as defined in the Agreement) located at Tate & Lyle's Decatur, Illinois plant that is not identified in Addendum A (the “Secured Equipment”).  Within 14 days after the execution of this Settlement and from time to time thereafter as reasonably requested by Tate & Lyle, Amyris shall execute and deliver to Tate & Lyle all financing statements and other documents reasonably requested by Tate & Lyle in order to perfect a security interest or maintain a perfected security interest in the Secured Equipment.  The security interest created by this paragraph shall be released upon full and timely payment by Amyris of the amounts set forth in paragraph 1 above. Amyris has notified Tate & Lyle that it desires to remove the equipment set forth in Exhibit B attached hereto for removal as soon as practicable.  Within fourteen (14) days after the execution of this Settlement, Amyris shall identify and provide notice to Tate & Lyle of any Secured Equipment that it desires to add to Exhibit B and remove from the plant.   Subject to Tate & Lyle's continuing security interest in the Secured Equipment, Amyris, at its own expense, but pursuant to Tate & Lyle safety requirements and other similar site considerations, shall have the right to remove from Tate & Lyle's Decatur, Illinois plant such identified Secured Equipment, upon reasonable advance notice to Tate & Lyle and at a time mutually agreed by the parties.  Tate & Lyle shall be free to operate and maintain the Secured Equipment, whether or not identified for removal, for any purpose until such time as Amyris has removed it from the plant, and Amyris hereby consigns to Tate & Lyle all rights to use the Secured Equipment until removal by Amyris.  The right of Amyris to remove such identified Secured Equipment from the plant shall expire thirty (30) days after payment of all amounts stated in paragraph 1 herein, but such right, whether exercised or partially exercised, shall expire three hundred and sixty-five (365) days after execution of this Agreement, whether or not full payment has been made.   After that date, Amyris shall execute all instruments of transfer, conveyance, assignment and confirmation and take such other actions as Tate & Lyle may reasonably determine is necessary to transfer, convey and assign to Tate & Lyle full right, title and interest in the Secured Equipment, to put Tate & Lyle in actual possession thereof and to assist Tate & Lyle in exercising all rights with respect 

[*] Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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thereto.  At such time, regardless of whether Amyris has complied with its obligations to so transfer ownership of such Secured Equipment to Tate & Lyle, Amyris shall have no further right, title or interest therein.  Amyris hereby represents and warrants to Tate & Lyle that (a) the Secured Equipment is free and clear of any pledge, lien, charge, claim, encumbrance, security interest, mortgage, option, restriction on transfer, license or other right of a third party to the Secured Equipment of any nature or description whatsoever (collectively, “Liens”) other than Permitted Liens (as defined below), and (b) until such time as Amyris has fully paid Tate & Lyle all amounts payable to Tate & Lyle pursuant to paragraph 1, Amyris will not grant a security interest in the Secured Equipment to any third party other than Tate & Lyle, or cause or permit to exist any Liens (other than Permitted Liens) on any of the Secured Equipment.  “Permitted Liens” means the security interest granted hereunder, Liens for taxes and other government charges not yet due or which are being contested in good faith, and carriers', warehousemen's, mechanics', materialmen's, repairmen's or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or which are being contested in good faith. 

4.Tate & Lyle is currently in possession of certain raw materials owned by Amyris set forth in Exhibit C.  Tate & Lyle shall use reasonable efforts to resell such raw materials to its suppliers or customers at reasonable prices.  Any amounts gained from the sale of such raw materials shall be deducted from the final December 16, 2013 payment from Amyris to Tate & Lyle.  In no event shall such deduction be more than $159,168. For avoidance of doubt, failure of Tate & Lyle to resell such raw materials shall not be considered a breach of this Settlement.  Should Tate & Lyle not be able to sell such raw materials for its customers, then on the earlier of the thirtieth (30th) day of the final payment by Amyris under this Settlement or the three hundred and sixty-fifth (365th) day after execution of this Agreement, all right, title and interest of Amyris in and to the raw materials set forth in Exhibit C shall pass to Tate & Lyle. 

5.Upon the execution of this Settlement, Tate & Lyle shall cause to be dismissed, without prejudice, its claims against Amyris in the Litigation.  Additionally, and also upon the execution of this Settlement, Tate & Lyle will withdraw its notice and demand for Arbitration.  Tate & Lyle reserves the right to reinstitute the Litigation and/or Arbitration immediately in the event of Amyris' non-compliance with this Settlement.

6.This Settlement is a compromise and settlement of a dispute and is not and shall not in any way be construed as an express or implied admission by any party of any act of liability, fault, or wrongdoing whatsoever or an admission of a violation of any agreement, law, statute, rule or regulation, but is, instead, a compromise settlement of disputed claims made in order to avoid the expense, burden, and inconvenience of protracted litigation or arbitration.

7.For purposes of this Settlement, the terms “Amyris Released Parties” or “Amyris Releasing Parties” shall mean Amyris, and each of its current and former affiliates, subsidiaries, parent corporations (in each case, whether direct or indirect), successors or assigns, divisions, predecessors, transferors, transferees, partners, trustees, members, officers, directors, employees, shareholders, representatives, insurers, agents, consultants, and attorneys, and all persons acting by, for, through, under or in concert with any of them.  The terms “Tate & Lyle Released Parties” or “Tate & Lyle Releasing Parties” shall mean Tate & Lyle, and each of its current and former affiliates, subsidiaries, parent corporations (in each case, whether direct or indirect), successors or assigns, divisions, predecessors, transferors, transferees, partners, trustees, members, officers, directors, employees, 

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shareholders, representatives, insurers, agents, consultants, and attorneys, and all persons acting by, for, through, under or in concert with any of them.

8.Amyris represents and warrants that it is the sole owner of any and all Amyris Released Claims that were or could have been made against the Tate & Lyle Released Parties, and that it has not heretofore assigned or transferred to any person or entity any right, claim, or interest in any of the claims released pursuant to paragraph 9 hereof. 

9.Tate & Lyle represents and warrants that it is the sole owner of any and all Tate & Lyle Released Claims that were or could have been made against the Amyris Released Parties, and that it has not heretofore assigned or transferred to any person or entity any right, claim, or interest in any of the claims released pursuant to paragraph 11 hereof.

10.Subject only to Tate & Lyle's performance of its obligations under this Agreement, Amyris hereby unconditionally releases, acquits and forever discharges the Tate & Lyle Released Parties from any and all known or unknown charges, complaints, claims, liabilities, obligations, controversies, damages, rights, suits, demands, actions, and causes of action (i) asserted, or that could have been asserted, in the Litigation or Arbitration, (ii) arising out of, relating in any way to, or in connection with, the Agreement, (iii) arising out of, relating in any way to, or in connection with the Dispute, and (iv) all claims for attorneys' fees and/or expenses, and all other common law or statutory causes of action related thereto (the “Amyris Released Claims”).

11.Subject only to Tate & Lyle's performance of its obligations under this Agreement, Amyris hereby covenants and agrees that it shall not now or hereafter institute, participate in, maintain or assert (either directly or indirectly, on its own behalf, derivatively or on behalf of any other person) any of the Amyris Released Claims, as set forth in paragraph 9, above, in any forum or in any manner against any of the Tate & Lyle Released Parties.  Amyris hereby covenants and agrees that it shall indemnify and hold the Tate & Lyle Released Parties harmless from and against any claim, loss, damage, cost or expense, including, without limitation, attorneys' fees, by reason of a breach by Amyris of any of the representations, warranties, and covenants made under this Settlement.

12.Subject only to Amyris' performance of its obligations under this Agreement, including but not limited to Tate & Lyle's receipt of the full amount of all payments set forth in paragraph 1, above, Tate & Lyle unconditionally releases, acquits and forever discharges the Amyris Released Parties from any and all known or unknown charges complaints, claims, liabilities, obligations, controversies, damages, rights, suits, demands, actions, and causes of action (i) asserted, or that could have been asserted, in the Litigation or Arbitration, (ii) arising out of, relating in any way to, or in connection with, the Agreement, (iii) arising out of, relating in any way to, or in connection with, the Dispute; and (iv) all other common law or statutory causes of action related thereto (the “Tate & Lyle Released Claims”).

13.Subject only to Amyris' performance of its obligations under this Agreement, including but not limited to Tate & Lyle's,  receipt of the full amount of all payments set forth in paragraph 1, above, Tate & Lyle hereby covenants and agrees that it shall not now or hereafter institute, participate in, maintain or assert (either directly or indirectly, on its own behalf, derivatively or on behalf of any other person) any of the Tate & Lyle Released Claims, as set forth in paragraph 11, above, in any forum or in any manner against any of the Amyris Released Parties.  Tate & Lyle hereby covenants and agrees that it shall indemnify and hold the Amyris Released Parties harmless from and against any claim, loss, damage, cost or expense, including, without limitation, attorneys' fees, by reason of a breach by Tate & Lyle of any of the representations, warranties, and covenants made under this Settlement.

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14.Nothing in this Settlement shall preclude any action to enforce any of the terms of this Settlement.  This Settlement shall be deemed to have been mutually prepared by the parties and shall not be construed against any of them by reason of authorship.  The Court presiding over the Litigation shall maintain exclusive jurisdiction to enforce the terms of this Settlement, notwithstanding the dismissal of the Litigation contemplated herein.  Amyris hereby agrees unconditionally to submit to the personal and subject matter jurisdiction of the Circuit Court of the Sixth Judicial Circuit, Decatur, Macon County, Illinois, for purposes of any action to enforce the terms of this Settlement.  

15.In the event of any default by Amyris in any of its payment obligations set forth in paragraph 1, above: (a) any and all remaining payments by Amyris shall be accelerated and become immediately due and payable; (b) Tate & Lyle shall be entitled to payment of the statutory rate of 9% interest per annum (815 ILCS 205/4) on the entire unpaid, accelerated amount due under this Settlement, but in no case shall Tate & Lyle be entitled to a rate of interest greater than any usury as applicable statute under Illinois law; (c) Tate & Lyle shall be entitled to recover against Amyris, and have included in any judgment entered by the Court to enforce this Settlement, all of its actual attorneys' fees, costs, and expenses of whatever kind associated with any effort or action to enforce the terms of this Settlement, whether by litigation, arbitration or other mechanism; and (d) Tate & Lyle shall be entitled to recover against Amyris, and have included in any judgment entered by the Court to enforce this settlement, all of its actual attorneys' fees, costs, and expenses of whatever kind incurred in connection with the commencement of the Litigation and Arbitration. 

16.The parties expressly acknowledge that: they have read and voluntarily executed this Settlement; that none of the parties has been induced to sign this Settlement through any opinion or representation of fact made by the other party, except representations made under this Settlement; and that they are not relying on any such opinion or representation, except representations made expressly in this Settlement.  

17.This Settlement is binding upon and shall inure to the benefit of, and with full right of enforcement by, the parties hereto, and their respective heirs, executors, administrators, personal representatives, predecessors, successors, assigns, subsidiaries, divisions, affiliates, ventures, parent companies, attorneys, agents, employees, officers, directors, trustees, associates, owners, partners, shareholders, members, and legal representatives.  

18.This Settlement sets forth the sole and entire agreement between the parties hereto with respect to the subject matter hereof.  This Settlement fully supersedes any and all prior agreements or understandings between the parties hereto pertaining to the subject matter hereof.  The parties hereby acknowledge and agree that the Agreement (i.e., the Toll Manufacturing Agreement dated as of November 1, 2010) is now terminated according to its own terms effective June 10, 2013, except with respect to Sections  3.4 (second sentence only), 7.6, 9, 10, 11, 12, 14.3, 14.4, 15, 17, 18.2, 18.3, 18.5, 18.6, and 18.9 of the Agreement which shall expressly survive termination of the Agreement.  

19.This Settlement may be waived or modified only by a written agreement signed by each of the parties hereto.

20.This Settlement shall be governed by, and construed in accordance with, Illinois law.  The invalidity of any part of this Settlement shall not affect the validity of any other part of this Settlement.  

21.THE PARTIES TO THIS SETTLEMENT HEREBY IRREVOCABLY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION TO ENFORCE THIS SETTLEMENT, AND 

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HEREBY GIVE THEIR CONSENT THAT ANY SUCH ACTION WILL BE TRIED TO THE COURT WITHOUT A JURY.    

22.This Settlement may be executed by facsimile and in identical counterparts, each of which shall constitute one and the same instrument.

23.Each party represents and warrants that it is duly authorized and has full power to execute this Settlement.  Each signatory hereto represents and warrants that it is duly authorized and has full power to execute this Settlement on behalf of the party for which it is executing this Settlement.  

24.Neither party hereto shall make, or cause to be made, any press release or public announcement concerning this Settlement that: (i) disparages the other party; (ii) contains any statement concerning the strengths or weaknesses of the parties' respective claims and defenses in the Litigation; (iii) claims victory or defeat; (iv) reveals the amount, nature, or timing of payments described in paragraph 1 hereof (except that either party may disclose the terms of the settlement, including the payments, to the extent required by applicable law, including but not limited to regulations promulgated under the Securities Exchange Act of 1934 and the UK Companies Act, as amended, in the judgment of such party's legal counsel and auditors); and/or (v) suggests that the existence or terms of the Settlement should be construed as an express or implied admission by any party of any act of liability, fault, or wrongdoing whatsoever or an admission of a violation of any agreement, law, statute, rule or regulation.  

IN WITNESS WHEREOF, the parties have executed this Settlement Agreement and Mutual Release on the day and year first written above.

TATE & LYLE INGREDIENTS AMERICAS LLC    AMYRIS, INC.

By: /s/ Peter Castelle        By: /s/ John Melo    
       Name: Peter Castelle               Name:
       Title: Group VP & General Counsel               Title:

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Exhibit A
Transferred Equipment

F-2J10-SCRUBBER FAN

	K-2J10-SCRUBBER 7'0" Ø

	P-2J01-VENT KNOCKOUT TANK PUMP

	P-2J10-SCRUBBER RECIRCULATION PUMP

	T-2J01-KNOCKOUT POT (MODIFY EXISTING)

	F-2J20-RTO FD FAN

	F-2J21-RTO COMBUSTION AIR FAN

	N-2J20-RTO

	N-2J22-RTO EXHAUST STACK

	H-2F14-CHILLER #4 1,000 TON

	T-2A68-ANTI-FOAM TANK #2

	T-2A50-KH2PO4 TANK

	T-2A51-(NH4)2 SO4 TANK

	T-2A52-MgSO4 TANK

	T-2A60-SEED VITAMIN & TRACE METALS TK

	T-2A62-MAIN VITAMIN TANK

	T-2A65-ANTI-FOAM TANK

Exhibit B - Equipment to be removed by Amyris 
		
	•
	K-2G10-L/S CENTRIFUGE 

		
	•
	K-2G20-L/L CENTRIFUGE 

		
	•
	K-2G30-POLISHING CENTRIFUGE 

		
	•
	Gas Chromatograph and software 

		
	•
	the BlueSense off-gas analyzer 

Exhibit C

	
										
	Material
	Material Description
	From Date
	To Date
	 Closing Stock
	BUn
	Closing Value

	 
	 
	 
	 
	 
	 
	 

	1000142
	Iron sulfate Heptahydrate
	5/1/2013
	5/31/2013
	90.71
	

	KG
	$
	64.00
	

	1000147
	Cobalt Chloride Hexahydrate
	5/1/2013
	5/31/2013
	64.39
	

	KG
	$
	2,347.01
	

	1000153
	Ammonium Sulfate
	5/1/2013
	5/31/2013
	27,327.07
	

	KG
	$
	14,967.04
	

	1000154
	Anhydrous Copper Sulfate
	5/1/2013
	5/31/2013
	60.93
	

	KG
	$
	470.21
	

	1000155
	Biotin
	5/1/2013
	5/31/2013
	13.06
	

	KG
	$
	19,591.50
	

	1000156
	Calcium chloride dihydrate
	5/1/2013
	5/31/2013
	106.26
	

	KG
	$
	595.38
	

	1000157
	Calcium Pantothenate
	5/1/2013
	5/31/2013
	36.26
	

	KG
	$
	555.79
	

	1000158
	EthyleneDiamineTetraacetic Acid (EDTA)
	5/1/2013
	5/31/2013
	136.03
	

	KG
	$
	1,058.78
	

	1000160
	Manganese chloride Tetrahydrate
	5/1/2013
	5/31/2013
	63.95
	

	KG
	$
	1,753.73
	

	1000161
	Myoinositol
	5/1/2013
	5/31/2013
	64.98
	

	KG
	$
	1,429.82
	

	1000162
	Nicotinic acid
	5/1/2013
	5/31/2013
	173.91
	

	KG
	$
	4,106.97
	

	1000163
	P-Aminobenzoic acid
	5/1/2013
	5/31/2013
	51.72
	

	KG
	$
	1,683.24
	

	1000164
	Potassium Phosphate (monobasic)
	5/1/2013
	5/31/2013
	11,083.17
	

	KG
	$
	6,362.84
	

	1000165
	Pyridoxol HCL
	5/1/2013
	5/31/2013
	149.98
	

	KG
	$
	12,867.10
	

	1000166
	Sodium molybdate dihydrate
	5/1/2013
	5/31/2013
	219.89
	

	KG
	$
	4,426.84
	

	1000167
	Tergitol L-81
	5/1/2013
	5/31/2013
	8,590.55
	

	KG
	$
	32,201.68
	

	1000168
	Tert butyl catechol
	5/1/2013
	5/31/2013
	760.17
	

	KG
	$
	8,498.19
	

	1000169
	Thiamine HCL
	5/1/2013
	5/31/2013
	99.99
	

	KG
	$
	10,514.18
	

	1000170
	Triton X-114
	5/1/2013
	5/31/2013
	1,065.94
	

	KG
	$
	6,346.07
	

	1000171
	Zinc sulfate Heptahydrate
	5/1/2013
	5/31/2013
	174.97
	

	KG
	$
	1,620.35
	

	1000180
	Phosphoric Acid
	5/1/2013
	5/31/2013
	7,152.23
	

	KG
	$
	10,882.12
	

	1000182
	Citric Acid
	5/1/2013
	5/31/2013
	4,876.11
	

	KG
	$
	13,063.60
	

	1000183
	Sodium Hypochlorite
	5/1/2013
	5/31/2013
	18,698.40
	

	KG
	$
	3,449.86
	

	1000196
	Liquid Nitrogen
	5/1/2013
	5/31/2013
	0.004
	

	KG
	$
	312.63
	

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	81,060.67
	

	KG
	$
	159,168.93PCX_EX10.1_2013.6.30

EXHIBIT 10.1
Amendment No. 2 to Credit Agreement
This Amendment No. 2 to Credit Agreement, dated as of August 7, 2013 (this “Amendment”), to the Superpriority Secured Debtor-in-Possession Credit Agreement, dated as of July 9, 2012, as amended by Amendment No. 1 to Credit Agreement, dated as of August 7, 2012 (as the same may be further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) entered into among PATRIOT COAL CORPORATION, a Delaware corporation and a Debtor and Debtor-in-Possession under Chapter 11 of the Bankruptcy Code (the “Borrower”), the subsidiaries of the Borrower party thereto (the “Subsidiary Guarantors”), the institutions from time to time party thereto as Lenders (the “Lenders”), CITIBANK, N.A., as administrative agent for the Revolving Lenders and L/C Issuers and collateral agent for the Revolving Secured Parties (in such capacities, the “Revolving Administrative Agent”), CITIBANK, N.A., as administrative agent for the Term Lenders and collateral agent for the Term Secured Parties (in such capacities, the “Term Administrative Agent”, and, together with the Revolving Administrative Agent, the “Administrative Agent”), CITICORP NORTH AMERICA, INC., as L/C Issuer, BARCLAYS BANK PLC, NEW YORK BRANCH, as L/C Issuer, and BANK OF AMERICA, N.A., as L/C Issuer. Capitalized terms used herein but not defined herein are used as defined in the Credit Agreement.
W i t n e s s e t h:
Whereas, the Borrower has requested that the Lenders amend the Credit Agreement in certain respects as set forth below; and
Whereas, the Lenders party hereto (constituting the Required Lenders) have agreed, subject to the terms and conditions hereinafter set forth, to (a) amend the Credit Agreement in certain respects and (b) grant a specified conditional waiver, in each case, as set forth below; and
Whereas, pursuant to, and subject to the exceptions set forth in, Section 10.05(b) of the Security Agreement, the Administrative Agent may at any time and from time to time and without consent of or notice to any “Second Out Term Secured Party” or “Revolving Secured Party” (as such terms are defined in the Security Agreement), among other things, (a) waive any “Default” or “Event of Default” under (and as defined in) the Second Out Facility, (b) amend or modify any or all of the provisions set forth in the Credit Agreement that are expressly incorporated by reference into the Second Out Facility, with the effect that such amendments, modifications, or substitutions shall be deemed incorporated by reference into the Second Out Facility or (c) amend, restate, supplement, modify, substitute, renew or replace any or all of the Loan Documents;
Now, Therefore, in consideration of the premises and the covenants and obligations contained herein, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
Section 1.    Amendments to the Credit Agreement
The Credit Agreement is, effective as of the Effective Date (as defined below), hereby amended as follows:
(a)    Section 6.24 shall be added to the Credit Agreement to read as follows: 
“Section 6.24.     Committed Financing for Acceptable Reorganization Plan.  On or prior to October 31, 2013, the Borrower shall submit to the Administrative Agent evidence of one or more executed, binding, and irrevocable commitments to finance the Acceptable Reorganization Plan filed on or prior to the Extension Date (as such plan may be amended, modified, or supplemented from time to time in a manner that does not adversely affect the Lenders) in an amount not less than the amount required to be financed thereunder, which commitment or commitments shall be binding on such financing source or sources through the Maturity Date and shall not be subject to conditions that cannot reasonably be satisfied prior to such date.”
(b)    Section 7.01(h) is hereby amended and restated in its entirety to read as follows:

“(h)    pledges or deposits in the ordinary course of business in connection with insurance and other social security legislation and deposits securing liability to insurance carriers under insurance or self-insurance arrangements;”
(c)    Section 7.11 is hereby amended and restated in its entirety to read as follows: 
“Section 7.11.     Minimum Consolidated EBITDA.   Permit Consolidated EBITDA of the Borrower and its Subsidiaries on a cumulative basis for each period beginning on June 1, 2012 and ending on each date set forth in the table below to be less than the amount set forth opposite such period:
	
		
	Period Ending
	Minimum Consolidated EBITDA
(in millions)

	October 31, 2012
	$48.0

	November 30, 2012
	$49.0

	December 31, 2012
	$53.0

	January 31, 2013
	$61.0

	February 28, 2013
	$60.0

	March 31, 2013
	$67.0

	April 30, 2013
	$81.0

	May 31, 2013
	$94.0

	June 30, 2013
	$98.0

	July 31, 2013
	$70.6

	August 31, 2013
	$68.6

	September 30, 2013
	$65.2

	October 31, 2013
	$83.8

	November 30, 2013
	$94.6

	December 31, 2013
	$101.3”

(d)    Section 9.01(b) is hereby amended by adding “or 6.24” after the words “or 6.23” in clause (i) thereof.

Section 2.    Specified Conditional Waiver
Solely to the extent that any Default or Event of Default resulting from a breach of Section 7.11 of the Credit Agreement (or any failure to give notice thereof pursuant to Section 6.03(a) of the Credit Agreement) has occurred prior to the date hereof or occurs following the date hereof but prior to the Effective Date, in each case which would not have occurred had the Effective Date occurred prior to the occurrence of such Default or Event of Default (the “Waived Defaults”), immediately upon execution of this Amendment by the parties required by Section 3(a) and notwithstanding the fact that the Effective Date has not yet occurred, the Administrative Agent and the Required Lenders hereby waive the Waived Defaults, and pursuant to Section 10.05(b) of the Security Agreement, to the extent that any of the Waived Defaults also constitute a “Default” or an “Event of Default” under (and as defined in) the Second Out Facility, the Administrative Agent hereby waives each such “Default” and “Event of Default” under the Second Out Facility.
Notwithstanding anything to the contrary contained in this Section 2, the waivers with respect to the Credit Agreement and the Second Out Facility contained in this Section 2 shall be void ab initio if the Effective Date does not occur on or prior to August 22, 2013, at which time the Administrative Agent, the Lenders, and the Second Out Term Secured Parties (as defined in the Security Agreement) shall be entitled to exercise all of their rights, powers, and remedies as to the Waived Defaults as if the conditional waiver set forth in this Section 2 had never been granted. 
Section 3.    Conditions Precedent to the Effectiveness of this Amendment
Subject to Section 2, the amendments set forth in Section 1 of this Amendment shall become effective (the “Effective Date”) when, and only when, each of the following conditions precedent shall have been satisfied or duly waived by the Administrative Agent and the Required Lenders party hereto:

(a)    the Administrative Agent shall have received this Amendment, duly executed by the Borrower, each Subsidiary Guarantor, the Administrative Agent and the Required Lenders; 
(b)    the representations and warranties in Section 4 of this Amendment shall be true and correct on the Effective Date; 
(c)    the Bankruptcy Court shall have entered one or more orders reasonably satisfactory in form and substance to the Administrative Agent authorizing (A) this Amendment, (B) the payment by the Borrower to the Administrative Agent of all fees referred to herein or in that certain Engagement Letter (the “Engagement Letter”) dated as of July 29, 2013 and (C) the payment by the Borrower of the Amendment Fees (as defined below), and such order or orders shall not have been reversed or vacated, and shall not be stayed on such day (inclusive of any stay otherwise applicable pursuant to Federal Rule of Bankruptcy Procedure 6004); and
(d)    the Borrower shall have paid to the Administrative Agent (A) all fees payable under the Engagement  Letter, (B) for the account of each Lender that has executed and delivered a signature page hereto to the Administrative Agent no later than 5:00 p.m. (New York City time) on August 7, 2013, an amendment fee in an amount equal to (i) 1.50% of the aggregate principal amount of Term Loans and (ii) 0.50% of the aggregate principal amount of the Revolving Credit Commitments, in each case, of each such Lender as of the Effective Date (the “Amendment Fees”) and (C) all invoiced expenses (including the fees and expenses of counsel to the Administrative Agent) of the Administrative Agent incurred in connection with the preparation, negotiation and execution of this Amendment and other matters relating to the Loan Documents in accordance with Section 12.04 of the Credit Agreement.
Section 4.    Representations and Warranties
On and as of the date hereof and as of the Effective Date, after giving effect to this Amendment, the Borrower hereby represents and warrants to the Administrative Agent and each Lender as follows:
(a)    this Amendment has been duly authorized, executed and delivered by each Loan Party and constitutes a legal, valid and binding obligation of each Loan Party, enforceable against them in accordance with its terms, and the Credit Agreement after giving effect to this Amendment constitutes the legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party in accordance with its terms;
(b)    each of the representations and warranties contained in Article 5 (Representations and Warranties) of the Credit Agreement, the other Loan Documents or in any certificate, document or financial or other statement furnished at any time under or in connection therewith are true and correct in all material respects on and as of the date hereof and the Effective Date, in each case as if made on and as of such date (except to the extent that such representations and warranties specifically relate to a specific date, in which case such representations and warranties shall be true and correct in all material respects as of such specific date); provided, however, that references therein to the “Credit Agreement” or, in the case of references contained in the Credit Agreement, “this Agreement” shall be deemed to refer to the Credit Agreement as amended hereby; and
(c)    after giving effect to this Amendment, no Default or Event of Default (other than, if applicable, a Waived Default) has occurred and is continuing.
Section 5.    Reference to the Effect on the Loan Documents and the Second Out Facility
(a)    As of the Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the other Loan Documents to the Credit Agreement (including, without limitation, by means of words like “thereunder”, “thereof” and words of like import), shall mean and be a reference to the Credit Agreement as modified hereby, and this Amendment and the Credit Agreement shall be read together and construed as a single instrument.  
(b)    Except as expressly modified hereby, all of the terms and provisions of the Credit Agreement and all other Loan Documents are and shall remain in full force and effect and are hereby ratified and confirmed.
(c)    The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders or the Administrative Agent under any of the Loan Documents, nor constitute a waiver or amendment of any other provision of any of the Loan Documents or for any purpose except as expressly set forth herein.
(d)    This Amendment shall be deemed a Loan Document.

(e)    Pursuant to Section 10.05(b) of the Security Agreement, to the extent any provisions of the Credit Agreement amended pursuant to this Amendment are expressly incorporated by reference into the Second Out Facility, such provisions of the Second Out Facility are amended hereby and the effects of this Amendment shall be deemed incorporated by reference into the Second Out Facility. 
Section 6.    Consent of Subsidiary Guarantors
Each Subsidiary Guarantor hereby consents to this Amendment and agrees that the terms hereof shall not affect, impair or reduce in any way its obligations, liabilities or liens under the Loan Documents (as amended and otherwise expressly modified hereby), all of which obligations, liabilities and liens shall remain in full force and effect and each of which is hereby reaffirmed (as amended and otherwise expressly modified hereby).

Section 7.    Execution in Counterparts
This Amendment may be executed in any number of counterparts and by different parties in separate counterpart (including by facsimile and electronic mail), each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same document.  Delivery of an executed counterpart by telecopy or electronic mail shall be effective as delivery of a manually executed counterpart of this Amendment.
Section 8.    Governing Law
This Amendment shall be governed by and construed in accordance with the law of the State of New York.
Section 9.    Section Titles
The Section titles contained in this Amendment are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.
Section 10.    Notices
All communications and notices hereunder shall be given as provided in the Credit Agreement.
Section 11.    Severability
The fact that any term or provision of this Amendment is held invalid, illegal or unenforceable as to any person in any situation in any jurisdiction shall not affect the validity, enforceability or legality of the remaining terms or provisions hereof or the validity, enforceability or legality of such offending term or provision in any other situation or jurisdiction or as applied to any person.
Section 12.    Successors
The terms of this Amendment shall be binding upon, and shall inure to the benefit of, the Lenders, the other parties hereto and their respective successors and assigns.
Section 13.    Waiver of Jury Trial
Each of the parties hereto irrevocably waives trial by jury in any action or proceeding with respect to this Waiver or any other Loan Document.
 [Signature Pages Follow]

 

35899.0519
In Witness Whereof, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first written above.

                                
Patriot Coal Corporation,
    as Borrower
                                	
		
	By:
	/s/ Robert L. Mead

	Name:
	Robert L. Mead

	Title:
	Vice President & Treasurer

                                                

                        

Subsidiary Guarantors:

APPALACHIA MINE SERVICES, LLC
BEAVER DAM COAL COMPANY, LLC
BIG EAGLE, LLC
BIG EAGLE RAIL, LLC
BLACK STALLION COAL COMPANY, LLC
BLUEGRASS MINE SERVICES, LLC
BRODY MINING, LLC
BROOK TROUT COAL, LLC
CATENARY COAL COMPANY, LLC
CENTRAL STATES COAL RESERVES OF KENTUCKY, LLC
CLEATON COAL COMPANY
COAL CLEAN LLC
COAL PROPERTIES, LLC
COAL RESERVE HOLDING LIMITED LIABILITY COMPANY NO. 2
COOK MOUNTAIN COAL COMPANY, LLC
CORYDON RESOURCES LLC
COVENTRY MINING SERVICES, LLC
COYOTE COAL COMPANY LLC
CUB BRANCH COAL COMPANY LLC
DIXON MINING COMPANY, LLC
DODGE HILL HOLDING JV, LLC
DODGE HILL MINING COMPANY, LLC
DODGE HILL OF KENTUCKY, LLC
EASTERN COAL COMPANY, LLC
EASTERN ROYALTY, LLC
EMERALD PROCESSING, L.L.C.
GRAND EAGLE MINING, LLC
HILLSIDE MINING COMPANY
INDIAN HILL COMPANY LLC
INFINITY COAL SALES, LLC
INTERIOR HOLDINGS, LLC
IO COAL LLC
JUPITER HOLDINGS LLC
KANAWHA EAGLE COAL, LLC
KANAWHA RIVER VENTURES I, LLC
KANAWHA RIVER VENTURES II, LLC
KANAWHA RIVER VENTURES III, LLC
KE VENTURES, LLC
LITTLE CREEK LLC
LOGAN FORK COAL COMPANY
MAGNUM COAL COMPANY LLC
MAGNUM COAL SALES LLC
MIDLAND TRAIL ENERGY LLC
MIDWEST COAL RESOURCES II, LLC
NEW TROUT COAL HOLDINGS II, LLC
NEWTOWN ENERGY, INC.
NORTH PAGE COAL CORP.
OHIO COUNTY COAL COMPANY, LLC
PANTHER LLC
PATRIOT BEAVER DAM HOLDINGS, LLC
PATRIOT COAL COMPANY, L.P.
PATRIOT COAL SALES LLC
PATRIOT COAL SERVICES LLC
PATRIOT LEASING COMPANY LLC

PATRIOT MIDWEST HOLDINGS, LLC
PATRIOT RESERVE HOLDINGS, LLC
PATRIOT TRADING LLC
PATRIOT VENTURES LLC
PCX ENTERPRISES, INC.
POND CREEK LAND RESOURCES, LLC
POND FORK PROCESSING LLC
REMINGTON HOLDINGS LLC
REMINGTON II LLC
REMINGTON LLC
RHINO EASTERN JV HOLDING COMPANY LLC
ROBIN LAND COMPANY, LLC
SENTRY MINING, LLC
SNOWBERRY LAND COMPANY
SPEED MINING LLC
TC SALES COMPANY, LLC
THE PRESIDENTS ENERGY COMPANY LLC
THUNDERHILL COAL LLC
TROUT COAL HOLDINGS, LLC
UNION COUNTY COAL CO., LLC
VIPER LLC
WEATHERBY PROCESSING LLC
WILDCAT ENERGY LLC
WILDCAT, LLC
WILL SCARLET PROPERTIES LLC
WINCHESTER LLC
WINIFREDE DOCK LIMITED LIABILITY COMPANY

as Subsidiary Guarantors

Executing this Amendment as an authorized officer of each of the 81 foregoing entities on behalf of and so as to bind the entities named above under the caption “Subsidiary Guarantors"

                        	
		
	By:
	/s/ Robert L. Mead

	

	Name:  Robert L. Mead

	

	Title:  Vice President & Treasurer

AFFINITY MINING COMPANY
APOGEE COAL COMPANY, LLC
BLACK WALNUT COAL COMPANY
CHARLES COAL COMPANY, LLC
COLONY BAY COAL COMPANY
DAKOTA LLC
DAY LLC
EASTERN ASSOCIATED COAL, LLC
GATEWAY EAGLE COAL COMPANY, LLC
HERITAGE COAL COMPANY LLC
HIGHLAND MINING COMPANY, LLC
HOBET MINING, LLC
JARRELL'S BRANCH COAL COMPANY
MARTINKA COAL COMPANY, LLC
MOUNTAIN VIEW COAL COMPANY, LLC
PINE RIDGE COAL COMPANY, LLC
RIVERS EDGE MINING, INC.
STERLING SMOKELESS COAL COMPANY, LLC
YANKEETOWN DOCK, LLC

Executing this Amendment as an authorized officer of each of the 19 foregoing entities on behalf of and so as to bind the entities named above under the caption “Subsidiary Guarantors”

                        	
		
	By:
	/s/ S. Scott Schutzenhofer

	

	Name:  S. Scott Schutzenhofer

	

	Title:  Vice President & Treasurer

Citibank, N.A., 
    as Administrative Agent                                                 	
		
	By:
	/s/ Shane V. Azzara

	

	Name:  Shane V. Azzara

	 
	Title:  Director & Vice President

[Lender signature pages on file with the Administrative Agent]

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