<PAGE>
Exhibit 1.1
12,316,110 SHARES
ALPHA NATURAL RESOURCES, INC.
COMMON STOCK, $0.01 PAR VALUE
UNDERWRITING AGREEMENT
January [ ], 2006
<PAGE>
January [ ], 2006
Morgan Stanley & Co. Incorporated
Citigroup Global Markets Inc.
UBS Securities LLC
Bear, Stearns & Co. Inc.
Lehman Brothers Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Davenport & Company LLC
c/o Morgan Stanley
& Co. Incorporated
1585
Broadway
New
York, New York 10036
Dear Sirs and Mesdames:
The stockholders of Alpha Natural Resources, Inc., a Delaware
corporation (the "COMPANY"), listed on Schedule I hereto (each, a
"SELLING
STOCKHOLDER" and, collectively, the "SELLING STOCKHOLDERS")
severally propose to
sell to the several Underwriters named on Schedule II hereto
(the
"UNDERWRITERS") an aggregate of 12,316,110 shares (the "FIRM
SHARES") of the
common stock, $0.01 par value per share, of the Company, each
Selling
Stockholder selling the amount set forth opposite such Selling
Stockholder's
name on Schedule I hereto.
Certain of the Selling Stockholders also severally propose to sell
to
the several Underwriters not more than an additional 1,847,417
shares of common
stock, $0.01 par value per share, of the Company (the "ADDITIONAL
SHARES"), each
such Selling Stockholder selling up to the amount set forth
opposite such
Selling Stockholder's name on Schedule I hereto, if and to the
extent that
Morgan Stanley & Co. Incorporated, Citigroup Global Markets
Inc. and UBS
Securities LLC (collectively, the "MANAGERS") shall have determined
to exercise,
on behalf of the Underwriters, the right to purchase such shares of
common stock
granted to the Underwriters in Section 3 hereof. The Firm Shares
and the
Additional Shares are hereinafter collectively referred to as the
"SHARES." The
shares of common stock (including the Shares), $0.01 par value per
share, of the
Company are hereinafter referred to as the "COMMON STOCK." The
Selling
Stockholders are hereinafter sometimes collectively referred to as
the
"SELLERS."
The
Company has filed with the Securities and Exchange Commission
(the
"COMMISSION") a registration statement on Form S-1 (File No.
333-129030),
including a prospectus, relating to the Shares. The registration
statement as
amended at the time it becomes effective, including the information
(if any)
deemed to be part of the registration statement at the time of
effectiveness
pursuant to Rule 430A under the Securities Act of 1933, as amended
(the
<PAGE>
"SECURITIES ACT"), is hereinafter referred to as the "REGISTRATION
STATEMENT";
the final prospectus in the form first used to confirm sales of
Shares (or in
the form first made available to the Underwriters by the Company to
meet
requests of purchasers pursuant to Rule 173 under the Securities
Act) is
hereinafter referred to as the "PROSPECTUS." If the Company has
filed an
abbreviated registration statement to register additional shares of
Common Stock
pursuant to Rule 462(b) under the Securities Act (the "RULE 462
REGISTRATION
STATEMENT"), then any reference herein to the term "REGISTRATION
STATEMENT"
shall be deemed to include such Rule 462 Registration
Statement.
For the purposes of this Agreement, "free writing prospectus" has
the
meaning set forth in Rule 405 under the Securities Act and "TIME OF
SALE
PROSPECTUS" means the preliminary prospectus included in the
Registration
Statement at the time it became effective, together with the free
writing
prospectuses, if any, each identified on Schedule IV hereto. As
used herein, the
terms "REGISTRATION STATEMENT," "PRELIMINARY PROSPECTUS," "TIME OF
SALE
PROSPECTUS" and Prospectus shall include the documents, if any,
incorporated by
reference therein. The terms "SUPPLEMENT," "AMENDMENT," and "AMEND"
as used
herein with respect to the Time of Sale Prospectus or any free
writing
prospectus shall include all documents subsequently filed by the
Company with
the Commission pursuant to the Securities Exchange Act of 1934, as
amended (the
"EXCHANGE ACT"), that are incorporated by reference therein.
1.
Representations and Warranties of the Company. The Company
represents
and warrants to and agrees with each of the Underwriters that:
(a)
The Registration Statement has become effective; no stop order
suspending the effectiveness of the Registration Statement is in
effect, and no
proceedings for such purpose are pending before or, to the
Company's knowledge,
threatened by the Commission.
(b)
(i) The Registration Statement, when it became effective, did
not
contain and, as amended or supplemented, if applicable, will not
contain any
untrue statement of a material fact or omit to state a material
fact required to
be stated therein or necessary to make the statements therein not
misleading,
(ii) the Registration Statement and the Prospectus comply and, as
amended or
supplemented, if applicable, will comply in all material respects
with the
Securities Act and the applicable rules and regulations of the
Commission
thereunder, (iii) the Time of Sale Prospectus does not, and at the
time of each
sale of the Shares in connection with the offering and at the
Closing Date (as
defined in Section 5), the Time of Sale Prospectus, as then amended
or
supplemented by the Company, if applicable, will not, contain any
untrue
statement of a material fact or omit to state a material fact
necessary to make
the statements therein, in the light of the circumstances under
which they were
made, not misleading and
2
<PAGE>
(iv) the Prospectus does not contain and, as amended or
supplemented, if
applicable, will not contain any untrue statement of a material
fact or omit to
state a material fact necessary to make the statements therein, in
the light of
the circumstances under which they were made, not misleading,
except that the
representations and warranties set forth in this paragraph do not
apply to the
information contained in or omitted from the Registration
Statement, the Time of
Sale Prospectus or the Prospectus, or any amendment or supplement
thereto, based
upon information furnished to the Company in writing by or on
behalf of the
Underwriters through the Managers expressly for use therein.
(c)
(i) At the time of filing the Registration Statement and (ii) at
the
date of this Agreement, the Company is not an "Ineligible Issuer"
in connection
with the offering pursuant to Rules 164, 405 and 433 under the
Securities Act.
Any free writing prospectus that the Company is required to file
pursuant to
Rule 433(d) under the Securities Act has been, or will be, filed
with the
Commission in accordance with the requirements of the Securities
Act and the
applicable rules and regulations of the Commission thereunder. Each
free writing
prospectus that the Company has filed, or is required to file,
pursuant to Rule
433(d) under the Securities Act or that was prepared by or on
behalf of or used
or referred to by the Company complies or will comply in all
material respects
with the requirements of the Securities Act and the applicable
rules and
regulations of the Commission thereunder and does not include any
information
that conflicts with the information contained in the Registration
Statement,
including any document incorporated by reference therein that has
not been
superseded or modified. Except for the free writing prospectuses,
if any,
identified on Schedule IV hereto, and "bona fide electronic road
shows," if any,
furnished to you before first use, the Company has not prepared,
used or
referred to, and will not, without your prior consent, prepare, use
or refer to,
any free writing prospectus.
(d)
The Company has been duly incorporated and is an existing
corporation
in good standing under the laws of the State of Delaware, with
power and
authority (corporate and other) to own its properties and conduct
its business
as described in the Time of Sale Prospectus and the Prospectus; and
the Company
is duly qualified to do business as a foreign corporation in good
standing in
all other jurisdictions in which its ownership or lease of property
or the
conduct of its business requires such qualification, except (i)
where the
failure to be so qualified or be in good standing would not
reasonably be
expected, individually or in the aggregate, to have a material
adverse effect on
the condition (financial or other), business, properties or results
of
operations of the Company and its subsidiaries taken as a whole (a
"MATERIAL
ADVERSE EFFECT") and (ii) for jurisdictions not recognizing the
legal concepts
of good standing or qualification.
(e)
The entities listed on Schedule III hereto are the only
subsidiaries,
direct or indirect, of the Company. Each subsidiary of the Company
has been
3
<PAGE>
duly incorporated or formed and is an existing limited liability
company,
corporation or limited partnership, as applicable, in good standing
under the
laws of the jurisdiction of its incorporation or formation, as
applicable, with
power and authority to own its properties and conduct its business
as described
in the Time of Sale Prospectus and the Prospectus; and each
subsidiary of the
Company is duly qualified to do business as a foreign limited
liability company,
corporation or limited partnership, as applicable, in good standing
in all other
jurisdictions in which its ownership or lease of property or the
conduct of its
business requires such qualification; except (i) where the failure
to be so
qualified or be in good standing would not reasonably be expected,
individually
or in the aggregate, to have a Material Adverse Effect, and (ii)
for
jurisdictions not recognizing the legal concepts of good standing
or
qualification. All of the limited liability company membership
interests,
outstanding shares of capital stock ("SUBSIDIARY SHARES") and
limited
partnership interests (collectively, the "SUBSIDIARY EQUITY
INTERESTS") of each
subsidiary of the Company have been duly authorized and, to the
extent
certificated, have been validly issued, and all Subsidiary Shares
are fully paid
and non-assessable. Except as disclosed in the Time of Sale
Prospectus and the
Prospectus, the Subsidiary Equity Interests are owned by the
Company, directly
or through subsidiaries, free from all liens, encumbrances and
security
interests, other than liens, encumbrances and security interests
imposed in
favor of the lenders under the senior secured credit facility of
Alpha Natural
Resources, LLC, as borrower, and Alpha NR Holding, Inc., as parent
guarantor,
described in the Time of Sale Prospectus and the Prospectus or
permitted
thereunder.
(f)
This Agreement has been duly authorized, executed and delivered by
the
Company.
(g)
The authorized capital stock of the Company conforms as to
legal
matters to the description thereof contained in each of the Time of
Sale
Prospectus and the Prospectus.
(h)
The shares of the Common Stock (including the Shares to be sold by
the
Selling Stockholders) have been duly authorized and are validly
issued, fully
paid and non-assessable.
(i)
Neither the Company nor any of its subsidiaries is (i) in violation
of
its respective certificate of incorporation, certificate of limited
partnership
or certificate of formation, as applicable, or by-laws, limited
liability
company agreement or limited partnership agreement, as applicable,
or (ii) in
default in the performance of any obligation, agreement, covenant
or condition
contained in any indenture, loan agreement, mortgage, lease or
other agreement
or instrument that is material to the Company and its subsidiaries,
taken as a
whole, to which the Company or its subsidiaries is a party or by
which the
Company or its subsidiaries or their respective property is bound,
except with
respect to clause (ii) only, to the
4
<PAGE>
extent that such default would not reasonably be expected to have a
Material
Adverse Effect.
(j)
No consent, approval, authorization, or order of, or filing with,
any
governmental agency or body or any court or any regulatory
authority is required
for the consummation of the transactions contemplated by this
Agreement in
connection with the sale of the Shares except for (i) the
registration of the
Shares under the Securities Act and such consents, approvals,
authorizations,
orders, or filings as may be required to be obtained or made under
state
securities or "blue sky" laws or by the rules and regulations of
the National
Association of Securities Dealers, Inc. (the "NASD") in connection
with the
purchase and sale of the Shares by the Underwriters and (ii) such
consents,
approvals, authorizations, orders, or filings which have been
previously
obtained or made or as to which the failure to so obtain or make
would not
reasonably be expected, individually or in the aggregate, to have a
material
adverse effect on the consummation by the Company of the
transactions
contemplated by this Agreement.
(k)
Each of (i) the execution, delivery and performance of this
Agreement
and compliance with the terms and provisions hereof and (ii) the
sale of the
Shares by the Selling Stockholders, will not result in a breach or
violation of
any of the terms and provisions of, or constitute a default under,
(A) any
statute, any rule, regulation or order of any governmental agency
or body or any
court, domestic or foreign, having jurisdiction over the Company or
any
subsidiary of the Company or any of their properties, (B) any
agreement or
instrument to which the Company or any subsidiary is a party or by
which the
Company or any subsidiary is bound or to which any of the
properties of the
Company or any subsidiary is subject, or (C) the Restated
Certificate of
Incorporation and Amended and Restated Bylaws of the Company or the
certificate
of incorporation or certificate of formation, as applicable, or
by-laws or
limited liability company agreement or limited partnership
agreement, as
applicable, of any such subsidiary, except, in the case of clauses
(A) and (B),
for such breaches, violations or defaults as would not,
individually or in the
aggregate, have a material adverse effect on the consummation of
the
transactions contemplated hereby by such parties.
(l)
There has not occurred any material adverse change, or any
development
involving a prospective material adverse change, in the condition,
financial or
otherwise, or in the earnings, business or operations of the
Company and its
subsidiaries, taken as a whole, from that set forth in the Time of
Sale
Prospectus and the Prospectus.
(m)
Except as disclosed in the Time of Sale Prospectus and the
Prospectus,
there are no pending actions, suits or proceedings against or
involving the
Company, any of its subsidiaries or any of their respective
properties that
5
<PAGE>
would reasonably be expected, individually or in the aggregate, to
have a
Material Adverse Effect, or to materially and adversely affect the
ability of
the Company to perform its obligations under this Agreement, or
which are
otherwise material in the context of the sale of the Shares; and no
such
actions, suits or proceedings are threatened in writing or, to the
Company's
knowledge, contemplated.
(n) The preliminary
prospectus, dated January [ ], 2006, filed as part of
the Registration Statement, or filed pursuant to Rule 424 under the
Securities
Act, complied as to form when so filed in all material respects
(other than with
respect to pricing terms) with the Securities Act and the
applicable rules and
regulations of the Commission thereunder.
(o)
The Company is not, and after giving effect to the offering and
sale of
the Shares by the Selling Stockholders will not be, required to
register as an
"investment company" as such term is defined in the Investment
Company Act of
1940, as amended.
(p)
Except as disclosed in the Registration Statement, the Time of
Sale
Prospectus and the Prospectus, neither the Company nor any of its
subsidiaries
is in violation of any statute, any rule, regulation, decision or
order of any
governmental agency or body or any court, domestic or foreign,
relating to the
use, disposal or release of hazardous or toxic substances or
relating to the
protection or restoration of the environment or human exposure to
hazardous or
toxic substances (collectively, "ENVIRONMENTAL LAWS"), owns or
operates any real
property that, to the knowledge of the Company, is contaminated
with any
substance that is subject to any environmental laws, is, to the
knowledge of the
Company, liable for any off-site disposal or contamination pursuant
to any
environmental laws, or is, to the knowledge of the Company, subject
to any claim
relating to any environmental laws, which violation, contamination,
liability or
claim would reasonably be expected, individually or in the
aggregate, to have a
Material Adverse Effect; and the Company is not aware of any
pending
investigation which might lead to such a claim.
(q)
Except as disclosed in the Registration Statement, the Time of
Sale
Prospectus and the Prospectus, there are no contracts, agreements
or
understandings between the Company and any person granting such
person the right
to require the Company to file a registration statement under the
Securities Act
with respect to any securities of the Company or to require the
Company to
include such securities with the Shares registered pursuant to the
Registration
Statement.
(r)
Except as disclosed in the Time of Sale Prospectus and the
Prospectus,
the Company and its subsidiaries have good and marketable title to
all real
properties and all other properties and assets owned by them that
are material
to the Company and its subsidiaries taken as a whole, in each case
free from
liens,
6
<PAGE>
encumbrances and defects that would materially affect the value
thereof or
materially interfere with the use made or to be made thereof by
them; and except
as disclosed in the Time of Sale Prospectus and the Prospectus, the
Company and
its subsidiaries hold any leased real or personal property that is
material to
the Company and its subsidiaries taken as a whole under valid and
enforceable
leases with no exceptions that would materially interfere with the
use made or
to be made thereof by them; provided, that the Company and its
subsidiaries
shall not be deemed to hold a less than fully marketable leasehold
interest
solely because the consent of the lessor to future assignments has
not been
obtained.
(s)
The Company and its subsidiaries own, possess, have the right to
use,
or can acquire on reasonable terms, adequate trademarks, trade
names and other
rights to inventions, know-how, patents, copyrights, confidential
information
and other intellectual property (collectively, "INTELLECTUAL
PROPERTY RIGHTS")
necessary to conduct the business now operated by them, except for
such failures
to so own, possess or have the right to use or acquire such
intellectual
property rights which would not reasonably be expected,
individually or in the
aggregate, to have a Material Adverse Effect, and have not received
any notice
of infringement of, or conflict with, asserted rights of others
with respect to
any intellectual property rights that, if determined adversely to
the Company or
any of its subsidiaries, would reasonably be expected, individually
or in the
aggregate, to have a Material Adverse Effect.
(t)
Except as disclosed in the Time of Sale Prospectus and the
Prospectus,
no labor dispute with the employees of the Company or any
subsidiary (except for
routine disciplinary and grievance matters) exists or, to the
knowledge of the
Company, is imminent that would reasonably be expected to have,
individually or
in the aggregate, a Material Adverse Effect.
(u)
The Company and its subsidiaries are insured by insurers of
recognized
financial responsibility against such losses and risks and in such
amounts as
are prudent and customary in the businesses in which they are
engaged or as
required by law.
(v)
Except as disclosed in the Time of Sale Prospectus and the
Prospectus,
the Company and its subsidiaries possess adequate certificates,
authorities or
permits issued by appropriate governmental agencies or bodies
necessary to
conduct the business now operated by them, except for those which
the failure to
so possess would not reasonably be expected to have a Material
Adverse Effect,
and have not received any notice of proceedings relating to the
revocation or
modification of any such certificate, authority or permit that, if
determined
adversely to the Company or any of its subsidiaries, would,
individually or in
the aggregate, have a Material Adverse Effect.
7
<PAGE>
(w)
The Company and each of its subsidiaries maintains a system of
internal
accounting controls sufficient to provide reasonable assurance that
(i)
transactions are executed in accordance with management's general
or specific
authorizations, (ii) transactions are recorded as necessary to
permit
preparation of financial statements in conformity with generally
accepted
accounting principles and to maintain asset accountability, (iii)
access to
assets is permitted only in accordance with management's general or
specific
authorization, and (iv) the recorded accountability for assets is
compared with
the existing assets at reasonable intervals and appropriate action
is taken with
respect to any differences.
(x)
The financial statements, together with the related schedules
and
notes, included in the Registration Statement, the Time of Sale
Prospectus and
the Prospectus present fairly in all material respects the
financial position of
ANR Fund IX Holdings, L.P. and Alpha NR Holding, Inc. and
subsidiaries on a
combined basis as of the dates shown and their results of
operations and cash
flows for the periods shown, and, except as otherwise disclosed in
the Time of
Sale Prospectus and the Prospectus, such financial statements have
been prepared
in conformity with generally accepted accounting principles in the
United States
applied on a consistent basis throughout the periods involved; and
with respect
to the Company and the Nicewonder Acquisition (as such term is
defined in the
Time of Sale Prospectus and the Prospectus), the assumptions used
in preparing
the pro forma financial statements included in the Time of Sale
Prospectus and
the Prospectus provide a reasonable basis for presenting the
significant effects
directly attributable to the transactions or events described
therein, the
related pro forma adjustments give appropriate effect to those
assumptions, and
the pro forma columns therein reflect the proper application of
those
adjustments to the corresponding historical financial statement
amounts.
(y)
KPMG LLP, who have audited certain financial statements included in
the
Time of Sale Prospectus and the Prospectus, whose reports appear in
the Time of
Sale Prospectus and the Prospectus and who have delivered the
initial letter
referred to in Section 6(e) hereof, are independent public
accountants as
contemplated by the Securities Act and the rules and regulations of
the
Commission thereunder.
(z)
The Company and its subsidiaries maintain disclosure controls
and
procedures (as defined as Rule 13a-15 of the Exchange Act) designed
to ensure
that information required to be disclosed by the Company, including
its
consolidated subsidiaries, in the reports that it files or submits
under the
Exchange Act is recorded, processed, summarized and reported in
accordance with
the Exchange Act and the rules and regulations thereunder. The
Company has
carried out evaluations, under the supervision and with the
participation of the
Company's management, of the effectiveness of the design and
operation of the
8
<PAGE>
Company's disclosure controls and procedures in accordance with
Rule 13a-15 of
the Exchange Act.
(aa)
Neither the Company nor any of its subsidiaries nor, to the
knowledge
of the Company, any director, officer, agent, employee or affiliate
of the
Company or any of its subsidiaries is aware of or has taken any
action, directly
or indirectly, that would result in a violation by such Persons of
the Foreign
Corrupt Practices Act of 1977, as amended, and the rules and
regulations
thereunder (the "FCPA"), including, without limitation, making use
of the mails
or any means or instrumentality of interstate commerce corruptly in
furtherance
of an offer, payment, promise to pay or authorization of the
payment of any
money, or other property, gift, promise to give, or authorization
of the giving
of anything of value to any "foreign official" (as such term is
defined in the
FCPA) or any foreign political party or official thereof or any
candidate for
foreign political office, in contravention of the FCPA and the
Company, its
subsidiaries and, to the knowledge of the Company, its affiliates
have conducted
their businesses in compliance with the FCPA and have instituted
and maintain
policies and procedures designed to ensure, and which are
reasonably expected to
continue to ensure, continued compliance therewith, except for any
such
violation of the FCPA or failure to comply with the FCPA or to
institute and
maintain such policies and procedures that would not reasonably be
expected,
individually or in the aggregate, to have a Material Adverse
Effect.
(bb)
Each pension plan and welfare plan established or maintained by
the
Company and/or one or more of its subsidiaries is in compliance
with the
currently applicable provisions of the Employee Retirement Income
Security Act
of 1974, as amended, and the regulations and published
interpretations
thereunder ("ERISA"), except where noncompliance would not
reasonably be
expected to have a Material Adverse Effect; and neither the Company
nor any of
its subsidiaries has incurred or could reasonably be expected to
incur any
withdrawal liability under Section 4201 of ERISA, any liability
under Section
4062, 4063 or 4064 of ERISA or any other liability under Title IV
of ERISA that
would reasonably be expected to have a Material Adverse Effect.
(cc)
The statements set forth in each of the Time of Sale Prospectus
and
the Prospectus under the caption "Description of Capital Stock," in
so far as
they purport to constitute a summary of the terms of the Common
Stock, under the
caption "Description of Indebtedness," in so far as they purport to
constitute a
summary of the terms of the Company's material indebtedness, and
under the
captions "Shares Eligible For Future Sale," "Environmental and
Other Regulatory
Matters" and "Material U.S. Federal Income and Estate Tax
Consequences to
Non-U.S. Holders," in so far as they purport to describe the
provisions of laws
and documents referred to therein, are accurate, complete and fair
in all
material respects.
9
<PAGE>
2.
Representations and Warranties of each of the Selling Stockholders.
Each
Selling Stockholder severally and not jointly represents and
warrants to and
agrees with each of the Underwriters and the Company that:
(a)
This Agreement has been duly authorized, executed and delivered by
or
on behalf of such Selling Stockholder.
(b)
The execution and delivery by such Selling Stockholder of, and
the
performance by such Selling Stockholder of its obligations under,
this Agreement
will not contravene (i) any provision of applicable law, (ii) the
certificate of
incorporation, by-laws, limited partnership agreement, operating
agreement, or
similar organizational document of such Selling Stockholder, (iii)
any agreement
or other instrument binding upon such Selling Stockholder and (iv)
any judgment,
order or decree of any governmental body, agency or court having
jurisdiction
over such Selling Stockholder, except in the case of clauses (i)
and (iii) as
would not individually or in the aggregate have a material adverse
effect on the
ability of such Selling Stockholder to consummate the transactions
contemplated
by this Agreement, and no consent, approval, authorization or order
of, or
qualification with, any governmental body or agency is required for
the
performance by such Selling Stockholder of its obligations under
this Agreement,
except for the registration of the Shares under the Securities Act
and such as
may be required to be obtained or made under state securities or
"blue sky" laws
or by the rules and regulations of the NASD in connection with the
purchase and
sale of the Shares by the Underwriters.
(c)
Such Selling Stockholder is, and immediately prior to the Closing
Date
and each Option Closing Date (as defined in Section 3 hereof) such
Selling
Stockholder will be, the owner of the Shares to be sold by such
Selling
Stockholder under this Agreement, free and clear of all security
interests,
claims, liens, equities or other encumbrances; and such Selling
Stockholder has
the legal right and power, and all authorization and approval
required by law,
to enter into this Agreement and to sell, transfer and deliver the
Shares to be
sold by such Selling Stockholder.
(d)
Upon payment for the Shares to be sold by such Selling
Stockholder
pursuant to this Agreement, delivery of such Shares, as directed by
the
Underwriters, to Cede & Co. ("CEDE") or such other nominee as
may be designated
by the Depository Trust Company ("DTC"), registration of such
Shares in the name
of Cede or such other nominee and the crediting of such Shares on
the books of
DTC to securities accounts of the respective Underwriters or to a
securities
account of Morgan Stanley & Co. Incorporated on behalf of the
respective
Underwriters, (i) DTC shall be a "protected purchaser" (as defined
under Section
8-303 of the Uniform Commercial Code of Delaware (the "Delaware
UCC")) of such
Shares, provided that it has no "notice" of an adverse
10
<PAGE>
claim within the meaning of Section 8-105 of the Delaware UCC, (ii)
the
respective Underwriters will acquire a valid security entitlement
in respect of
such Shares under Section 8-501 of the Uniform Commercial Code of
New York (the
"New York UCC"), and (iii) no action based on an "adverse claim",
within the
meaning of Section 8-102 of the New York UCC, to such security
entitlement may
be asserted against the respective Underwriters, provided that they
have no
"notice" of an adverse claim within the meaning of Section 8-105 of
the New York
UCC; for purposes of the representations in this clause (e), such
Selling
Stockholder may assume that (A) DTC is a "securities intermediary"
(as defined
in Section 8-102 of the New York UCC), and the State of New York is
the
"securities intermediary's jurisdiction" of DTC for purposes of
Section 8-110 of
the New York UCC, (B) the Shares are registered in the name of DTC
or its
nominee, and DTC or another person on behalf of DTC maintains
possession of
certificates representing the Shares, and (C) appropriate entries
to the
accounts of the several Underwriters on the records of DTC will
have been made
pursuant to the New York UCC.
(e)
With respect to First Reserve Fund IX, L.P. and ANR Fund IX
Holdings,
L.P. only, such Selling Stockholders are not prompted to sell their
Shares
pursuant to this Agreement by any material information concerning
the Company or
its Subsidiaries that has not been publicly disclosed.
(f)
(i) The Registration Statement, when it became effective, did
not
contain and, as amended or supplemented, if applicable, will not
contain any
untrue statement of a material fact or omit to state a material
fact required to
be stated therein or necessary to make the statements therein not
misleading,
(ii) the Time of Sale Prospectus does not, and at the time of each
sale of the
Shares in connection with the offering and at the Closing Date, the
Time of Sale
Prospectus, as then amended or supplemented by the Company, if
applicable, will
not, contain any untrue statement of a material fact or omit to
state a material
fact necessary to make the statements therein, in the light of the
circumstances
under which they were made, not misleading and (iii) the Prospectus
does not
contain and, as amended or supplemented, if applicable, will not
contain any
untrue statement of a material fact or omit to state a material
fact necessary
to make the statements therein, in the light of the circumstances
under which
they were made, not misleading; provided that the representations
and warranties
set forth in this paragraph 2(f) are limited to statements or
omissions made in
reliance upon information relating to such Selling Stockholder
furnished to the
Company in writing by such Selling Stockholder expressly for use in
the
Registration Statement, the Time of Sale Prospectus, the Prospectus
or any
amendments or supplements thereto.
3.
Agreements to Sell and Purchase. Each Seller, severally and not
jointly,
hereby agrees to sell to the several Underwriters, and each
Underwriter, upon
the basis of the representations and warranties herein contained,
but subject to
the conditions hereinafter stated, agrees, severally and not
jointly, to
purchase from such Seller at $[ ] a share (the "PURCHASE PRICE")
the number of
Firm
11
<PAGE>
Shares (subject to such adjustments to eliminate fractional shares
as you may
determine) that bears the same proportion to the number of Firm
Shares to be
sold by such Seller as the number of Firm Shares set forth on
Schedule II hereto
opposite the name of such Underwriter bears to the total number of
Firm Shares.
On
the basis of the representations and warranties contained in
this
Agreement, and subject to its terms and conditions, the Sellers
other than
Madison Capital Funding LLC, severally and not jointly, agree to
sell to the
Underwriters the Additional Shares, and the Underwriters shall have
the right to
purchase, severally and not jointly, up to 1,847,417 Additional
Shares in the
aggregate at the Purchase Price. You may exercise this right on
behalf of the
Underwriters in whole or from time to time in part by giving
written notice of
each election to exercise the option not later than 30 days after
the date of
this Agreement. Any exercise notice shall specify the number of
Additional
Shares to be purchased by the Underwriters and the date on which
such shares are
to be purchased. Each purchase date must be at least one business
day after the
written notice is given and may not be earlier than the closing
date for the
Firm Shares nor later than ten business days after the date of such
notice.
Additional Shares may be purchased as provided in Section 5 hereof
solely for
the purpose of covering over-allotments made in connection with the
offering of
the Firm Shares. On each day, if any, that Additional Shares are to
be purchased
(an "OPTION CLOSING DATE"), each Underwriter agrees, severally and
not jointly,
to purchase the number of Additional Shares (subject to such
adjustments to
eliminate fractional shares as you may determine) that bears the
same proportion
to the total number of Additional Shares to be purchased on such
Option Closing
Date as the number of Firm Shares set forth on Schedule II hereto
opposite the
name of such Underwriter bears to the total number of Firm
Shares.
The
Company and each Seller hereby agrees that, without the prior
written
consent of the Managers on behalf of the Underwriters, it will not,
during the
period ending 90 days after the date of the Prospectus, (1) offer,
pledge, sell,
contract to sell, sell any option or contract to purchase, purchase
any option
or contract to sell, grant any option, right or warrant to
purchase, lend, or
otherwise transfer or dispose of, directly or indirectly, any
shares of Common
Stock or any securities convertible into or exercisable or
exchangeable for
Common Stock or (2) in the case of the Company, file any
registration statement
with the Commission relating to the offering of any shares of
Common Stock or
any securities convertible into or exercisable or exchangeable for
Common Stock
or (3) enter into any swap or other arrangement that transfers to
another, in
whole or in part, any of the economic consequences of ownership of
the Common
Stock, whether any such transaction described in clause (1), (2) or
(3) above is
to be settled by delivery of Common Stock or such other securities,
in cash or
otherwise.
12
<PAGE>
The
restrictions contained in the preceding paragraph shall not apply
to
(a) the Shares to be sold hereunder, (b) the issuance by the
Company of shares
of Common Stock upon the exercise of an option or warrant or the
conversion of a
security outstanding on the date hereof, (c) grants, issuances or
exercises
under any existing employee benefit plan of the Company, (d) the
filing of a
registration statement on Form S-8 relating to shares of Common
Stock, (e) the
issuance of Common Stock, or securities exercisable or convertible
into Shares
of Common Stock, by the Company in connection with the acquisition
of, or joint
venture with, another company, (f) transactions by a Selling
Stockholder
relating to shares of Common Stock or other securities acquired in
open market
transactions after the completion of the offering of the Shares,
provided that
no filing under Section 16(a) of the Exchange Act shall be required
or shall be
voluntarily made in connection with subsequent sales of Common
Stock or other
securities acquired in such open market transactions, (g) transfers
by a Selling
Stockholder of shares of Common Stock or any security convertible
into or
exercisable or exchangeable for Common Stock as a bona fide gift,
(h) transfers
by a Selling Stockholder to a trust, partnership, limited liability
company or
other entity, all of the beneficial interests of which are held,
directly or
indirectly, by such Selling Stockholder, or (i) distributions by a
Selling
Stockholder of shares of Common Stock or any security convertible
into or
exercisable or exchangeable for Common Stock to limited partners,
members or
stockholders of the Selling Stockholders; provided that in the case
of any
transfer or distribution pursuant to clause (g), (h) or (i): (i)
each,
recipient, donee or distributee (other than charitable
organizations) shall
enter into a lock-up letter substantially in the form of Exhibit A
hereto and
(ii) no filing under Section 16(a) of the Exchange Act reporting a
reduction in
beneficial ownership of shares of Common Stock shall be voluntarily
made in
respect of the transfer or distribution during the 90-day
restricted period
absent a legal requirement to make such filing. In addition, each
Selling
Stockholder agrees that, without the prior written consent of the
Managers on
behalf of the Underwriters, it will not, during the period ending
90 days after
the date of the Prospectus, make any demand for, or exercise any
right with
respect to, the registration of any shares of Common Stock or any
security
convertible into or exercisable or exchangeable for Common Stock,
provided that
a Selling Stockholder may issue to the Company a demand pursuant to
the
Stockholder Agreement of the Company so long as no registration
statement is
filed during such 90-day period. Each Selling Stockholder severally
and not
jointly consents to the entry of stop transfer instructions with
the Company's
transfer agent and registrar against the transfer of any Shares
held by such
Selling Stockholder except in compliance with the foregoing
restrictions.
4.
Terms of Public Offering. The Company and the Sellers are advised
by you
that the Underwriters propose to make a public offering of their
respective
portions of the Shares as soon after the Registration Statement and
this
Agreement have become effective as in your judgment is advisable.
The Company
and the
13
<PAGE>
Sellers are further advised by you that the Shares are to be
offered to the
public initially at $[ ] a share (the "PUBLIC OFFERING PRICE") and
to certain
dealers selected by you at a price that represents a concession not
in excess of
$[ ] a share under the Public Offering Price, and that any
Underwriter may
allow, and such dealers may reallow, a concession, not in excess of
$[ ] a
share, to any Underwriter or to certain other dealers.
5.
Payment and Delivery. Payment for the Firm Shares to be sold by
each
Seller shall be made to such Seller by wire transfer in Federal or
other funds
immediately available in New York City against delivery of such
Firm Shares for
the respective accounts of the several Underwriters at 10:00 a.m.,
New York City
time, on January [ ], 2006, or at such other time on the same or
such other
date, not later than January [ ], 2006, as shall be designated in
writing by
you. The time and date of such payment are hereinafter referred to
as the
"CLOSING DATE."
Payment for any Additional Shares to be sold by a Seller shall be
made to
such Seller by wire transfer in Federal or other funds immediately
available in
New York City against delivery of such Additional Shares for the
respective
accounts of the several Underwriters at 10:00 a.m., New York City
time, on the
date specified in the corresponding notice described in Section 3
or at such
other time on the same or on such other date, in any event not
later than [ ],
2006, as shall be designated in writing by you.
The
Firm Shares and Additional Shares shall be registered in such names
and
in such denominations as you shall request in writing not later
than one full
business day prior to the Closing Date or the applicable Option
Closing Date, as
the case may be. The Firm Shares and Additional Shares shall be
delivered to you
on the Closing Date or an Option Closing Date, as the case may be,
for the
respective accounts of the several Underwriters, with any transfer
taxes payable
in connection with the transfer of the Shares to the Underwriters
duly paid,
against payment of the Purchase Price therefor.
6.
Conditions to the Underwriters' Obligations. The several
obligations of
the Sellers to sell the Shares to the Underwriters and the several
obligations
of the Underwriters to purchase and pay for the Shares on the
Closing Date are
subject to the condition that the Registration Statement shall have
become
effective not later than 5:30 p.m. (New York City time) on the date
hereof.
The
several obligations of the Underwriters are subject to the
following
further conditions:
(a)
Subsequent to the execution and delivery of this Agreement and
prior to
the Closing Date:
14
<PAGE>
(i) there shall not have occurred any downgrading, nor shall
any notice have been given of any intended or potential downgrading
or of any
review for a possible change that does not indicate the direction
of the
possible change, in the rating accorded any of the securities of
the Company or
any of its subsidiaries (including, without limitation, the 10%
Senior Notes due
2012 issued by Alpha Natural Resources, LLC and Alpha Natural
Resources Capital
Corp.) by any "nationally recognized statistical rating
organization," as such
term is defined for purposes of Rule 436(g)(2) under the Securities
Act; and
(ii) there shall not have occurred any change, or any
development involving a prospective change, in the condition,
financial or
otherwise, or in the earnings, properties, business or operations
of the Company
and its subsidiaries, taken as a whole, from that set forth in the
Time of Sale
Prospectus and the Prospectus that, in the judgment of the
Managers, is material
and adverse and that makes it, in the judgment of the Managers,
impracticable to
market the Shares on the terms and in the manner contemplated in
the Time of
Sale Prospectus and the Prospectus.
(b)
The Underwriters shall have received on the Closing Date and,
if
applicable, any Option Closing Date, a certificate, dated the
Closing Date and
signed by an executive officer of the Company, to the effect set
forth in
Section 6(a)(ii) above and to the effect that the representations
and warranties
of the Company contained in this Agreement that are not qualified
by materiality
are true and correct in all material respects, and that the
representations and
warranties of the Company contained in this Agreement that are
qualified by
materiality are true and correct, in each case, as of the Closing
Date, and that
the Company has, in all material respects, complied with all of the
agreements
and satisfied all of the conditions on its part to be performed or
satisfied
hereunder on or before the Closing Date.
The officer signing and delivering such certificate may rely upon
the best of
his or her knowledge as to proceedings threatened.
(c)
The Underwriters shall have received on the Closing Date:
(i) an opinion and negative assurance statement of Bartlit Beck
Herman Palenchar & Scott LLP, special counsel for the
Company,
addressed to the Underwriters and substantially in the form of
Exhibits B and C hereto;
(ii) an opinion of Simpson Thacher & Bartlett LLP, special
counsel for the Company, addressed to the Underwriters and
substantially in the form of Exhibit D hereto;
15
<PAGE>
(iii) an opinion and negative assurance statement of Vaughn R.
Groves, Vice President and General Counsel of the Company,
addressed to the Underwriters and substantially in the form of
Exhibit E hereto; and
(iv) an opinion of Thomas R. Denison, General Counsel of First
Reserve GP IX, Inc., addressed to the Underwriters and
substantially in the form of Exhibit F hereto.
(d)
The Underwriters shall have received on the Closing Date an opinion
of
Latham & Watkins LLP, counsel for the Underwriters, dated the
Closing Date, with
respect to certain matters required by the Managers, and the
Company shall have
furnished to such counsel such documents as they request for the
purpose of
enabling them to pass upon such matters.
(e)
The Underwriters shall have received, on each of the date hereof
and
the Closing Date, a letter dated the date hereof or the Closing
Date, as the
case may be, in form and substance satisfactory to the
Underwriters, from KPMG
LLP, independent public accountants, containing statements and
information of
the type ordinarily included in accountants' "comfort letters" to
underwriters
with respect to the financial statements and certain financial
information
contained in the Registration Statement, the Time of Sale
Prospectus and the
Prospectus; provided that the letter delivered on the Closing Date
shall use a
"cut-off date" not earlier than the date hereof.
(f)
The Underwriters shall have received on the date hereof, a
certificate
dated the date hereof, in form and substance satisfactory to the
Underwriters,
from David Stuebe, Vice President and Chief Financial Officer of
the Company,
containing statements with respect to certain financial information
contained in
the Registration Statement, the Time of Sale Prospectus and the
Prospectus.
(g)
The Shares shall have been listed on the New York Stock
Exchange.
(h)
The "lock up" agreements, each substantially in the form of Exhibit
A
hereto, between you and certain shareholders (other than by the
Selling
Stockholders party hereto) and officers and directors of the
Company relating to
sales and certain other dispositions of shares of Common Stock or
certain other
securities, delivered to you on or before the date hereof, shall be
in full
force and effect on the Closing Date.
(i)
Each Selling Stockholder shall have furnished or caused to be
furnished
to you on the Closing Date, and, if applicable, any Option Closing
Date,
16
<PAGE>
customary certificates of officers of such Selling Stockholder
satisfactory to
you to the effect that:
(i) the representations and warranties of such Selling
Stockholder in this Agreement that are not qualified by materiality
are true and
correct in all material respects and the representations and
warranties of such
Selling Stockholder in this Agreement that are qualified by
materiality are true
and correct, on and as of the Closing Date or the Option Closing
Date, as the
case may be, with the same effect as if made on the Closing Date,
or the Option
Closing Date, as the case may be; and
(ii) such Selling Stockholder has performed all obligations
and satisfied all conditions on its part to be performed or
satisfied pursuant
to this Agreement at or prior to the Closing Date or the Option
Closing Date, as
the case may be.
(j)
Each Selling Stockholder shall have furnished or caused to be
furnished
to you on the Closing Date a properly completed and executed United
States
Treasury Department Form W-9 (or other applicable form or statement
specified by
Treasury Department regulations in lieu thereof).
The
several obligations of the Underwriters to purchase Additional
Shares
hereunder are subject to the delivery to you on the applicable
Option Closing
Date of such documents as you may reasonably request with respect
to the good
standing of the Company and other matters related to the sale of
such Additional
Shares.
7.
Covenants of the Company. In further consideration of the
agreements of
the Underwriters herein contained, the Company covenants with each
Underwriter
as follows:
(a)
To furnish to you, without charge, eight signed copies of the
Registration Statement (including exhibits thereto) and for
delivery to each
other Underwriter a conformed copy of the Registration Statement
(without
exhibits thereto) and to furnish to you in New York City, without
charge, prior
to 2:00 p.m. New York City time on the second business day next
succeeding the
date of this Agreement and during the period mentioned in Section
7(f) below, as
many copies of the Time of Sale Prospectus, the Prospectus and any
supplements
and amendments thereto or to the Registration Statement as you may
reasonably
request.
(b)
Before amending or supplementing the Registration Statement, the
Time
of Sale Prospectus or the Prospectus, to furnish to you a copy of
each such
proposed amendment or supplement and not to file any such proposed
amendment or
supplement to which the Managers reasonably object, and to file
with the
17
<PAGE>
Commission within the applicable period specified in Rule 424(b)
under the
Securities Act any prospectus required to be filed pursuant to such
Rule.
(c)
To furnish to you a copy of each proposed free writing prospectus
to be
prepared by or on behalf of, used by, or referred to by the Company
and not to
use or refer to any proposed free writing prospectus to which you
reasonably
object.
(d)
Not to take any action that would result in an Underwriter or
the
Company being required to file with the Commission pursuant to Rule
433(d) under
the Securities Act a free writing prospectus prepared by or on
behalf of the
Underwriters that the Underwriters otherwise would not have been
required to
file thereunder.
(e) If the Time of
Sale Prospectus is being used to solicit offers to buy
the Shares at a time when the Prospectus is not yet available to
prospective
purchasers and any event shall occur or condition exist as a result
of which, in
the opinion of counsel for the Underwriters or counsel for the
Company, it is
necessary to amend or supplement the Time of Sale Prospectus in
order to make
the statements therein, in the light of the circumstances, not
misleading, or if
any event shall occur or condition exist as a result of which, in
the opinion of
counsel for the Underwriters or counsel for the Company, the Time
of Sale
Prospectus conflicts with the information contained in the
Registration
Statement then on file, or if, in the opinion of counsel for the
Underwriters or
counsel for the Company, it is necessary to amend or supplement the
Time of Sale
Prospectus to comply with applicable law, promptly prepare, file
with the
Commission and furnish, at its own expense, to the Underwriters and
to any
dealer upon request, either amendments or supplements to the Time
of Sale
Prospectus so that the statements in the Time of Sale Prospectus as
so amended
or supplemented will not, in the light of the circumstances when
delivered to a
prospective purchaser, be misleading or so that the Time of Sale
Prospectus, as
amended or supplemented, will no longer conflict with the
Registration
Statement, or so that the Time of Sale Prospectus, as amended or
supplemented,
will comply with applicable law.
(f)
If, during such period after the first date of the public offering
of
the Shares as in the opinion of counsel for the Underwriters the
Prospectus (or
in lieu thereof the notice referred to in Rule 173(a) under the
Securities Act)
is required by law to be delivered in connection with sales by an
Underwriter or
dealer, any event shall occur or condition exist as a result of
which, in the
opinion of counsel for the Underwriters or counsel for the
18
<PAGE>
Company, it is necessary to amend or supplement the Prospectus in
order to make
the statements therein, in the light of the circumstances when the
Prospectus
(or in lieu thereof the notice referred to in Rule 173(a) under the
Securities
Act) is delivered to a purchaser, not misleading, or if, in the
opinion of
counsel for the Underwriters or counsel for the Company, it is
necessary to
amend or supplement the Prospectus to comply with applicable law,
the Company
will promptly prepare, file with the Commission and furnish, at its
own expense
(provided, however, after nine months from the date of the
Prospectus, any such
preparing, filling and furnishing will be at the expense of the
Underwriters to
the extent such expense is reasonable), to the Underwriters and to
the dealers
(whose names and addresses you will furnish to the Company) to
which Shares may
have been sold by you on behalf of the Underwriters and to any
other dealers
upon request, either amendments or supplements to the Prospectus so
that the
statements in the Prospectus as so amended or supplemented will
not, in the
light of the circumstances when the Prospectus (or in lieu thereof
the notice
referred to in Rule 173(a) under the Securities Act) is delivered
to a
purchaser, be misleading or so that the Prospectus, as amended or
supplemented,
will comply with law.
(g)
To refrain from taking, directly or indirectly, actions designed to
or
which constitute or which might reasonably be expected to result
in, under the
Exchange Act or otherwise, unlawful stabilization or manipulation
of the price
of any security of the Company.
(h)
To endeavor to qualify the Shares for offer and sale under the
securities or "blue sky" laws of such jurisdictions as you shall
reasonably
request; provided that in no event shall the Company be obligated
to qualify to
do business in any jurisdiction where it is not now so qualified or
to take any
action that would subject it to service of process in suits, other
than those
arising out of the offering or sale of the Shares, in any
jurisdiction where it
is not now so subject or to subject itself to taxation in excess of
a nominal
amount in respect of doing business in any jurisdiction.
(i)
To make generally available to the Company's security holders and
to
the Managers as soon as practicable an earning statement covering a
period of at
least twelve months beginning with the first fiscal quarter of the
Company
occurring after the date of this Agreement which shall satisfy the
provisions of
Section 11(a) of the Securities Act and the rules and regulations
of the
Commission thereunder.
(j)
Whether or not the transactions contemplated in this Agreement
are
consummated or this Agreement is terminated, the Company agrees to
pay or cause
to be paid the costs and expenses relating to the following
matters: (i) the
fees, disbursements and expenses of the Company's counsel and the
Company's
accountants and one counsel for the Selling Stockholders in
connection with the
registration and delivery of the Shares under the Securities Act
and all other
fees or expenses in connection with the preparation and filing of
the
Registration Statement, any preliminary prospectus, the Time of
Sale Prospectus,
the Prospectus, any free writing prospectus prepared by or on
behalf of, used
by, or
19
<PAGE>
referred to by the Company and amendments and supplements to any of
the
foregoing, including all printing costs associated therewith, and
the mailing
and delivering of copies thereof to