Supplement No. 5, dated as of May 21, 2018, to the Notes 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 U.S. Bank National Association, as Notes Collateral Agent

EX-10.5 6 d584273dex105.htm EX-10.5 EX-10.5

Exhibit 10.5

Supplement No. 5 to Notes Collateral Agreement

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

Reference is made to the Indenture dated as of December 16, 2014 (as amended, amended and restated, waived, supplemented or otherwise modified from time to time, the “Indenture”), among the Company, the Subsidiary Guarantors and U.S. Bank National Association, as Trustee and Notes Collateral Agent.

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

Section 4.16 of the Indenture and Section 7.14 of the Collateral Agreement provide that additional Subsidiaries of the Company may become Grantors under the 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 Indenture to become a Grantor under the Collateral Agreement.

Accordingly, the Notes Collateral Agent and the New Subsidiaries agree as follows:

In accordance with Section 7.14 of the Collateral Agreement, each New Subsidiary by its signature below becomes a Grantor under the Collateral Agreement with the same force and effect as if originally named therein as a Grantor, and such New Subsidiary hereby (a) agrees to all the terms and provisions of the Collateral Agreement applicable to it as a Grantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Grantor 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, each New Subsidiary, as security for the payment and performance in full of the Notes Obligations (as defined in the Collateral Agreement), does hereby create and grant to the Notes Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Parties, their successors and assigns, a security interest in and lien on all such New Subsidiary’s right, title and interest in and to the Collateral (as defined in the Collateral Agreement) of such New Subsidiary. Each reference to a “Grantor” in the Collateral Agreement shall be deemed to include the New Subsidiaries. The Collateral Agreement is hereby incorporated in this Agreement by reference.


Each New Subsidiary represents and warrants to the Notes Collateral Agent and the other Secured Parties 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 Notes Collateral Agent shall have received a counterpart of this Supplement that bears the signature of each New Subsidiary and the Notes 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.

Each 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 such 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. Each 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 Collateral Agreement had such New Subsidiary been a Grantor on the date of the execution and delivery of the Collateral Agreement (it being understood and agreed, however, that the information so furnished by such New Subsidiary is accurate as of the date of this Supplement rather than the date of the Collateral Agreement).

Except as expressly supplemented hereby, the 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 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 Collateral Agreement.

The New Subsidiaries agree to reimburse the Notes 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 Notes 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

[Signature Page to Supplement No. 5 to Notes Collateral Agreement]


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/ Samuel N. Hagreen

Name:   Samuel N. Hagreen
Title:   Secretary
  Legal Name: Westmoreland Canada LLC
  Jurisdiction of Formation: Delaware
WESTMORELAND ENERGY SERVICES, INC.
By:  

/s/ Samuel 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

[Signature Page to Supplement No. 5 to Notes Collateral Agreement]


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
U.S. BANK NATIONAL ASSOCIATION, as Notes Collateral Agent
By:  

/s/ Brian Jensen

Name:   Brian Jensen
Title:   Vice President

[Signature Page to Supplement No. 5 to Notes Collateral Agreement]


Schedule I

to Supplement No. 5

to the Notes

Collateral Agreement

Supplement to Schedule 3.03 to Notes Collateral Agreement

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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Supplement to Schedule 4.02(b) to Notes Collateral Agreement

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, LP    N/A    N/A    None
Absaloka Coal, LLC    N/A    N/A    None

 

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Supplement to Schedule 4.02(d) to Notes Agreement

GRANTOR ORGANIZATIONAL INFORMATION

 

COMPANY NAME

  

JURISDICTION

  

TYPE

  

ORG ID

  

OFFICE ADDRESS

  

TAX PAYER

ID

Westmoreland San Juan Holdings, Inc.    Delaware    Corporation    5857903   

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 Coal Company    Delaware    Corporation    0867351   

300 Road 6800

Training Center A

Waterflow, NM 87421

   94 ###-###-####
San Juan Transportation Company    Delaware    Corporation    0928266   

300 Road 6800

Training Center A

Waterflow, NM 87421

   94 ###-###-####
Westmoreland Power, Inc.    Delaware    Corporation    3357469    9540 South Maroon Circle, Suite 300, Englewood, CO 80112    84-1589965
Westmoreland Energy Services, Inc.    Delaware    Corporation    5371511    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, LP    Quebec    Limited Partnership    3369975407   

1100, 10123 99 Street

Edmonton, Alberta Canada, T5J 3H1

   98-1169129

 

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