Supplement No. 5, dated as of May 21, 2018, to the Guaranty and Collateral Agreement, dated as of December 16, 2014 (as amended, amended and restated, waived, supplemented or otherwise modified from time to time) among Westmoreland Coal Company, a Delaware corporation, certain subsidiaries of Westmoreland Coal Company and Wilmington Savings Fund Society, FSB (as successor in interest to Bank of Montreal), as Collateral Agent

EX-10.2 3 d584273dex102.htm EX-10.2 EX-10.2

Exhibit 10.2

SUPPLEMENT NO. 5 (this “Supplement”) dated as of May 21, 2018, to the Guaranty and Collateral Agreement, dated as of December 16, 2014 (as amended, amended and restated, waived, supplemented or otherwise modified from time to time, the “Guaranty and Collateral Agreement”), among WESTMORELAND COAL COMPANY, a Delaware corporation (the “Borrower”), each other subsidiary of the Borrower from time to time party thereto (each such subsidiary individually a “Subsidiary Guarantor” and collectively, the “Subsidiary Guarantors”; the Subsidiary Guarantors and the Borrower are referred to collectively herein as the “Grantors”) and WILMINGTON SAVINGS FUND SOCIETY, FSB, as collateral agent (together with any successor collateral agent, the “Collateral Agent”).

Reference is made to the Credit Agreement dated as of December 16, 2014 (as amended, amended and restated, waived, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party thereto, and Canadian Imperial Bank of Commerce, as administrative agent.

Capitalized terms used in this Agreement and not otherwise defined in this Agreement shall have the meanings assigned to such terms in the Credit Agreement and the Guaranty and Collateral Agreement referred to therein.

The Grantors have entered into the Guaranty and Collateral Agreement in order to induce the Lenders to make Loans as contemplated in the Credit Agreement. Section 7.14 of the Guaranty and Collateral Agreement provides that additional Subsidiaries of the Borrower may become Subsidiary Guarantors under the Guaranty and Collateral Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiaries (the “New Subsidiaries” and each a “New Subsidiary”) are each executing this Supplement in accordance with the requirements of the Credit Agreement to become a Subsidiary Guarantor under the Guaranty and Collateral Agreement in order to induce the Lenders to make additional Loans and as consideration for Loans previously made.

Accordingly, the Collateral Agent and the New Subsidiary agree as follows:

In accordance with Section 7.14 of the Guaranty and Collateral Agreement, the New Subsidiary by its signature below becomes a Subsidiary Guarantor and a Grantor under the Guaranty and Collateral Agreement with the same force and effect as if originally named therein as a Subsidiary Guarantor and a Grantor and the New Subsidiary hereby (a) agrees to all the terms and provisions of the Guaranty and Collateral Agreement applicable to it as a Subsidiary Guarantor and Grantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Grantor and Subsidiary Guarantor thereunder are true and correct in all material respects on and as of the date hereof (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date). In furtherance of the foregoing, the New Subsidiary, as security for the payment and performance in full of the Obligations (as defined in the Guaranty and Collateral Agreement), does hereby create and grant to the Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Creditors, their successors and assigns, a security interest in and lien on all the New Subsidiary’s right, title and interest in and to the Collateral (as defined in the Guaranty and Collateral Agreement) of the New Subsidiary. Each reference to a “Subsidiary Guarantor” or “Grantor” in the Guaranty and Collateral Agreement shall be deemed to include the New Subsidiary. The Guaranty and Collateral Agreement is hereby incorporated in this Agreement by reference.


The New Subsidiary represents and warrants to the Collateral Agent and the other Secured Creditors that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally any by principles of equity.

This Supplement may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Collateral Agent shall have received a counterpart of this Supplement that bears the signature of the New Subsidiary and the Collateral Agent has executed a counterpart hereof. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Supplement.

The New Subsidiary hereby represents and warrants that set forth under its signature hereto is, as of the date hereof, (i) the true and correct legal name of the New Subsidiary, (ii) its jurisdiction of formation, (iii) its Federal Taxpayer Identification Number or its organizational identification number (if any) and (iv) the location of its chief executive office. The New Subsidiary hereby further represents and warrants that, as of the date hereof, Schedule I hereto accurately sets forth all information which would have been required pursuant to the Schedules to the Guaranty and Collateral Agreement had the New Subsidiary been a Grantor on the date of the execution and delivery of the Guaranty and Collateral Agreement (it being understood and agreed, however, that the information so furnished by the New Subsidiary is accurate as of the date of this Supplement rather than the date of the Guaranty and Collateral Agreement).

Except as expressly supplemented hereby, the Guaranty and Collateral Agreement shall remain in full force and effect.

THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

Any provision of this Supplement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof and in the Guaranty and Collateral Agreement; the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

All communications and notices hereunder shall be in writing and given as provided in Section 7.01 of the Guaranty and Collateral Agreement.


The New Subsidiary agrees to reimburse the Collateral Agent for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Collateral Agent.


The New Subsidiaries and the Collateral Agent have duly executed this Supplement No. 5 to the Notes Collateral Agreement as of the day and year first above written.

 

SAN JUAN COAL COMPANY
By:  

/s/ Samuel N. Hagreen

 

Name: Samuel N. Hagreen

Title: Secretary

  Legal Name: San Juan Coal Company Jurisdiction of Formation: Delaware
SAN JUAN TRANSPORTATION COMPANY
By:  

/s/ Samuel N. Hagreen

 

Name: Samuel N. Hagreen

Title: Secretary

  Legal Name: San Juan Transportation Company Jurisdiction of Formation: Delaware
WESTMORELAND SAN JUAN, LLC
By:  

/s/ Samuel N. Hagreen

 

Name: Samuel N. Hagreen

Title: Secretary

  Legal Name: Westmoreland San Juan, LLC Jurisdiction of Formation: Delaware
WESTMORELAND SAN JUAN HOLDINGS, INC.
By:  

/s/ Samuel N. Hagreen

  Name: Samuel N. Hagreen
  Title: Secretary
  Legal Name: Westmoreland San Juan Holdings, Inc.
  Jurisdiction of Formation: Delaware


WESTMORELAND POWER, INC.
By:  

/s/ Samuel N. Hagreen

  Name: Samuel N. Hagreen
  Title: Secretary
 

Legal Name: Westmoreland Power, Inc.

Jurisdiction of Formation: Delaware

WESTMORELAND CANADA LLC
By:  

/s/ Jennifer S. Grafton

  Name: Jennifer S. Grafton
  Title: Secretary
 

Legal Name: Westmoreland Canada LLC

Jurisdiction of Formation: Delaware

WESTMORELAND ENERGY SERVICES, INC.
By:  

/s/ Smuel N. Hagreen

  Name: Samuel N. Hagreen
  Title: Secretary
 

Legal Name: Westmoreland Energy Services, Inc.

Jurisdiction of Formation: Delaware

BASIN RESOURCES, INC.
By:  

/s/ Samuel N. Hagreen

  Name: Samuel N. Hagreen
  Title: Secretary
 

Legal Name: Basin Resources, Inc.

Jurisdiction of Formation: Colorado


WESTMORELAND CANADIAN INVESTMENTS L.P.

By: Westmoreland Canada LLC, in its capacity as

general partner of WESTMORELAND CANADIAN

INVESTMENTS L.P. / WESTMORELAND

INVESTISSEMENTS CANADIENS S.E.C.

  By:  

/s/ Jennifer S. Grafton                                                     

  Name: Jennifer S. Grafton
  Title: Vice President and Secretary
  Legal Name: Westmoreland Canadian Investments L.P.
  Jurisdiction of Formation: Quebec
ABSALOKA COAL, LLC
By:  

/s/ Samuel N. Hagreen             

  Name: Samuel N. Hagreen
  Title: Secretary
   

Legal Name: Absaloka Coal, LLC

Jurisdiction of Formation: Delaware

WILMINGTON SAVINGS FUND SOCIETY, FSB,

as Collateral Agent

By:  

/s/ Geoffrey J. Lewis

  Name:   Geoffrey J. Lewis
  Title:   Vice President

 


PLEDGED SECURITIES

Pledged Stock

 

Name of Pledgor

  

Name, Jurisdiction

of Formation and

Type of Entity of

Pledged Subsidiary

  

Class or Type

of Pledged

Interest

   Total Amount of
Class or Type of
Pledged Interests
Authorized
   Total Amount of
Class or Type
Outstanding
   Total
Amount
Pledged
  

Certificate
Number (if
applicable)

Westmoreland Coal Company    Westmoreland San Juan Holdings, Inc.; Delaware; corporation    Common    100    100    100%    Uncertificated
Westmoreland San Juan Holdings, Inc.    Westmoreland San Juan, LLC; Delaware; limited liability company    Membership Units    N/A    N/A    100%    Uncertificated
Westmoreland San Juan, LLC    San Juan Coal Company; Delaware; corporation    Common    250    250    100%    4
Westmoreland San Juan, LLC    San Juan Transportation Company; Delaware; corporation    Common    200    200    100%    3
Westmoreland Energy Services New York, Inc.    Basin Resources, Inc., Delaware; corporation    Common    100    100    100%    1
Westmoreland Coal Company    Westmoreland Canada, LLC; Delaware; limited liability company    Sole Member    N/A    N/A    100%    Uncertificated
Westmoreland Coal Company    Westmoreland Power, Inc.; Delaware; corporation    Common    1,000    1,000    100%    1
Westmoreland Coal Company    Westmoreland Energy Services, Inc.; Delaware; corporation    Common    100    100    100%    1
WRI Partners, Inc.    Absaloka Coal, LLC    Sole Member    N/A    N/A    100%    Uncertificated

 

 

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GRANTOR LEGAL NAME

 

COMPANY NAME

  

F/K/A

  

DATE OF NAME CHANGE

  

TRADE NAMES

Westmoreland San Juan Holdings, Inc.    WLB Escrow Corporation    January 26, 2016    None
Westmoreland San Juan, LLC    N/A    N/A    None
San Juan Coal Company    N/A    N/A    None
San Juan Transportation Company    N/A    N/A    None
Basin Resources, Inc.    N/A    N/A    None
Westmoreland Canada, LLC    N/A    N/A    None
Westmoreland Power, Inc.    N/A    N/A    None
Westmoreland Energy Services, Inc.    N/A    N/A    None
Westmoreland Canadian Investments L.P.    N/A    N/A    None
Absaloka Coal, LLC    N/A    N/A    None

 

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GRANTOR ORGANIZATIONAL INFORMATION

 

COMPANY NAME

  

JURISDICTION

  

TYPE

   ORG ID   

OFFICE ADDRESS

   TAX PAYER
ID
Westmoreland San Juan Holdings, Inc.    Delaware    Corporation    05857903   

300 Road 6800

Training Center A Waterflow, NM 87421

   47 ###-###-####
Westmoreland San Juan, LLC    Delaware    Limited Liability Company    5948312   

300 Road 6800

Training Center A Waterflow, NM 87421

   36 ###-###-####
San Juan Transportation Company    Delaware    Corporation    0928266   

300 Road 6800

Training Center A Waterflow, NM 87421

   94 ###-###-####
San Juan Coal Company    Delaware    Corporation    0867351   

300 Road 6800

Training Center A Waterflow, NM 87421

   94 ###-###-####
Westmoreland Power, Inc.    Delaware    Corporation    03357469   

9540 South Maroon Circle, Suite 300

Englewood, CO 80112

   84-1589965
Westmoreland Energy Services, Inc.    Delaware    Corporation    05371511   

9540 South Maroon Circle, Suite 300

Englewood, CO 80112

   46 ###-###-####
Westmoreland Canada LLC    Delaware    Limited Liability Company    5509777   

9540 South Maroon Circle, Suite 300

Englewood, CO 80112

   46 ###-###-####
Basin Resources, Inc.    Colorado    Corporation    19871331143   

9540 South Maroon Circle, Suite 300

Englewood, CO 80112

   74-1959458
Absaloka Coal, LLC    Delaware    Limited Liability Company    4554164    100 Sarpy Creek Road, Hardin, MT 59034    26 ###-###-####
Westmoreland Canadian Investments, L.P.    Alberta    Corporation    2020598864   

1100, 10123-99 Street,

Edmonton, Alberta, T5J3H1

   891271934

 

 

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INTELLECTUAL PROPERTY

 

Title

  

Jurisdiction

  

Application

Number

  

Patent/Publication
Number

Drill Bit with Radially Expandable Cutter, and Method of Using Same    United States    11/758,913    7,686,103
Drill Bit   

PCT

International

   PCT/US2008/0654 73    WO2008154196
Drill Bit    Australia    AU20080262084    AU2008262084
Drill Bit    Brazil    BR2008PI12780    BRPI0812780
Drill Bit    China    CN20088102345    CN101952540
Drill Bit    Germany    DE112008001519    DE20081101519
Drill Tip    Poland    PL20080390542    PL390542
Rotary Drilling Bit and Method to Create Helical Groove in Blast Hole Arranged in Bed    Russia    RU20090149654    RU2009149654
Drill Bit    Ukraine    UA20090013759    UA97983
Drill Bit    South Africa    ZA20090008569    ZA200908569
Use of Foam to Increase Resistance to Gas Flow in Mine Applications and Apparatus for Delivering Same   

PCT

International

   PCT/US2008/0717 88    WO2009018458
Use of Foam to Increase Resistance to Gas Flow in Mine Applications and Apparatus for Delivering Same    Australia    AU20080282110    AU2008282110
Use of Foam to Increase Resistance to Gas Flow in Mine Applications and Apparatus for Delivering Same    Brazil        BR2008PI15066    BRPI0815066

 

I-4


Use of Foam to Increase Resistance to Gas Flow in Mine Applications and Apparatus for Delivering Same    China    CN20088108925    CN101809250
Use of Foam to Increase Resistance to Gas Flow in Mine Applications and Apparatus for Delivering Same    Germany    DE20081102078    DE112008002078
Use of Foam to Increase Resistance to Gas Flow in Mine Applications and Apparatus for Delivering Same    Poland    PL20080390417    PL390417
Method to Increase Resistance to Gas Flow in Shaft (Versions)    Russia    RU20100107179    RU2010107179
Method for Increasing Resistance to Gas Flow in Mine (Variants)    Ukraine    UA20100002184    UA99732
Use of Foam to Increase Resistance to Gas Flow in Mine Applications and Apparatus for Delivering Same    South Africa    ZA20100000402    ZA201000402

 

 

I-5


DEPOSIT AND SECURITIES ACCOUNTS

(see attached)

 

I-6