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Title:

Master Agreement

Entities:

Arch Coal, Inc.; KFX Inc.; McGraw-Hill Companies Inc.

Date:

2006

Size:

65KB total

Price:

$43

ID:

#1201221

 

 


► Energy ► Coal
► Services ► Printing & Publishing
► Technology ► Software & Programming

 

 

Start of Preview



 

MASTER AGREEMENT

 

 

 

Between

 

 

KFx Plant II, LLC

a Delaware limited liability company

 

 

 

and

 

 

 

ARCH COAL, INC.

a Delaware corporation

 

 

 

 

October 5, 2005

 



TABLE OF CONTENTS



Page

 

 

 

ARTICLE I DEFINITIONS AND INTERPRETATION

1

   

         

   

                                                                                                                                                     

   

1.1

Definitions

1

1.2

References to Singular/Plural

5

1.3

References to Exhibits

5

1.4

Numbers and Headings

5

1.5

Gender References

5

1.6

Including

5

1.7

References to Agreement

5

1.8

References to Statutes

5

   

         

   

                                                                                                                                                     

   

ARTICLE II ARCH COALS OPTION TO ENTER INTO OPERATIVE AGREEMENTS

5

   

         

   

                                                                                                                                                     

   

2.1

Arch Coals Option to Enter into Operative Agreements

5

2.2

Operative Agreements

5

2.3

Delivery Requirements

6

   

         

   

                                                                                                                                                     

   

ARTICLE III SITE OPERATIONS

6

   

         

   

                                                                                                                                                     

   

3.1

Operator Activities

6

3.2

Third Party Grants

6

3.3

Data

7

3.4

Reclamation Obligation for Operator Activities

7

3.5

Initial Operator Performance Bond

7

   

         

   

                                                                                                                                                     

   

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF ARCH COAL

7

   

         

   

                                                                                                                                                     

   

4.1

Corporate Status and Authority of Arch Coal and its Affiliates

7

4.2

No Conflicts

8

4.3

Consents

8

4.4

Litigation

8

4.5

Brokers

8

   

         

   

                                                                                                                                                     

   

ARTICLE V REPRESENTATIONS AND WARRANTIES OF OPERATOR

8

   

         

   

                                                                                                                                                     

   

5.1

Corporate Status and Authority

8

5.2

No Conflicts

9

5.3

Governmental Consents

9

5.4

Independent Evaluation

9

5.5

Brokers

10

   

         

   

                                                                                                                                                     

   

ARTICLE VI COVENANTS

   

         

   

                                                                                                                                                     

   

6.1

Additional Covenants of Arch Coal

10

6.2

Additional Covenant of Operator

10

-i-


ARTICLE VII CONFIDENTIALITY

10

   

         

   

                                                                                                                                                     

   

7.1

Confidentiality

10

   

         

   

                                                                                                                                                     

   

ARTICLE VIII CONSENTS AND APPROVALS

11

   

         

   

                                                                                                                                                     

   

8.1

Consents and Authorizations

11

   

         

   

                                                                                                                                                     

   

ARTICLE IX ASSIGNMENT

11

   

         

   

                                                                                                                                                     

   

9.1

Binding

11

9.2

Permitted Assignments

11

   

         

   

                                                                                                                                                     

   

ARTICLE X TERMINATION AND DEFAULT

12

   

         

   

                                                                                                                                                     

   

10.1

Termination

12

10.2

Default

12

10.3

Return of Data

12

10.4

Surrender of Possession and Removal of Equipment

13

   

         

   

                                                                                                                                                     

   

ARTICLE XI INDEMNIFICATION

13

   

         

   

                                                                                                                                                     

   

11.1

Survival and Independence of Indemnification Obligations

13

11.2

Indemnification of Operator

13

11.3

Indemnification of Arch Coal

13

11.4

Claims

13

11.5

Limitations

14

   

         

   

                                                                                                                                                     

   

ARTICLE XII MISCELLANEOUS PROVISIONS

15

   

         

   

                                                                                                                                                     

   

12.1

Exclusivity of Representations and Warranties; Relationship Between the Parties

15

12.2

Use of Names

15

12.3

No Other Representations Nor Grant of Reliance

15

12.4

Amendment

15

12.5

Notices

15

12.6

Entire Agreement

16

12.7

Severability

16

12.8

No Waiver

17

12.9

Counterparts

17

12.10

Survival

17

12.11

No Implied Covenants

17

12.12

Force Majeure

17

12.13

Other Business Opportunities/No Partnership

17

12.14

Further Assurance

18

12.15

Governing Law; Jurisdiction, Venue; Waiver of Jury Trial, Injunction

18

-ii-


   

         

   

                                                                                                                                                     

   

Exhibit A          Agreement for Purchase and Sale of Coal

Exhibit B          Master Guaranty Agreement

Exhibit C          Operating Agreement

Exhibit D          Site Lease Agreement






-iii-


MASTER AGREEMENT

            This Master agreement is dated and effective as of October 5, 2005 (the Effective Date), by and between KFx Plant II, LLC, a Delaware limited liability company (Operator), and Arch Coal, Inc., a Delaware corporation (Arch Coal).

Recitals

            WHEREAS, Thunder Basin Coal Company, LLC, a Delaware limited liability company and a subsidiary of Arch Coal (TBCC), owns and operates the Coal Creek Mine in Campbell County, Wyoming (the Mine);

            WHEREAS, Operator has licensed a proprietary process to upgrade high-moisture content fuels or other carbonaceous materials to solid fuel (including the patents, licenses, trademarks, know-how, trade secrets and other items derivative or subsumed therein, K-Fuel Process) owned by KFx Inc., a Delaware corporation (KFx); and

            WHEREAS, the Parties desire to establish the terms and conditions upon which (i) Operator will construct and operate a plant at the Mine (the Plant) which will apply the K-Fuel Process to coal mined by TBCC at the Mine, (ii) Arch Coal Sales Company, Inc., a Delaware corporation and a wholly-owned subsidiary of Arch Coal (ACS), will, as agent of TBCC, sell coal produced by TBCC at the Mine to Operator for use in the Plant, (iii) Ark Land Company, a Delaware corporation and a wholly-owned subsidiary of Arch Coal (Ark Land), may, at Operators election, sell certain real property located in Campbell County, Wyoming to Operator to be used for disposal of waste produced by the Plant, and (iv) Arch Coal will have a warrant to make investments in KFxs common stock.

            NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

            1.1       Definitions.

            ACS is defined in the Recitals.

            Affiliate of a specified party shall mean any Person or entity directly or indirectly controlling or controlled by, or under direct or indirect common control with, such party. For the purposes of this definition, control(including, with correlative meaning, the terms controlling,controlled byand under common control with) means the possession, directly or indirectly, of the power to direct or cause direction of the management and policies of a Person or entity, whether through the ownership of voting securities, by contract or otherwise.

            Agreement means this Master Agreement, the Recitals and all Exhibits and Schedules.

            Arch Coal is defined in the Preamble.

-1-


            Arch Coal Option is defined in Section 2.1.

            Arch Coal Option Notice is defined in Section 2.1.

            Ark Land is defined in the Recitals.

            Business Days means all days other than any Saturday, Sunday or federal holiday.

            Coal Supply Agreement means the Agreement for Purchase and Sale of Coal by and between Operator and ACS attached hereto as Exhibit A.

            Claim Notice is defined in Section 11.4.

            Claims is defined in Section 11.4.

            Data means, with respect to the Site, all (1) abstracts of title and other title information, (2) environmental reports, (3) all maps, assays, surveys, technical reports, samples and engineering data, and (4) any other data relating to the Site.

            Defaulting Party is defined in Section 10.2.

            Effective Date is defined in the Preamble.

            Execution Date is defined in Section 2.2.


 

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