Exhibit 10.86
FIRST AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT
THIS FIRST AMENDMENT AND WAIVER,
dated as of September 16, 2005 (the “Amendment and
Waiver”), to AMENDED AND RESTATED CREDIT AGREEMENT, dated as
of April 1, 2005 (the “ Credit Agreement ”;
capitalized terms used but not defined herein shall have the
meanings given them in the Credit Agreement) by and among CONSOL
Energy Inc. (the “ Borrower ”), certain
subsidiaries of the Borrower listed on the signature pages hereof
(collectively the “ Guarantors ; the Borrower and the
Guarantors are collectively referred to as the “ Loan
Parties ”), PNC Bank, National Association and Citicorp
North America, Inc., as co-administrative agents, and PNC Bank,
National Association, as paying agent (the “ Paying
Agent ”).
WITNESSETH
WHEREAS, in connection with the
Permitted Gas Properties Transaction that closed in August of 2005,
it is anticipated that the stock of CNX Gas Corporation (a portion
of the stock of which is held by CONSOLIDATION COAL COMPANY, one of
the Loan Parties) will be registered with the Securities and
Exchange Commission and listed on the New York Stock
Exchange;
WHEREAS, pursuant to Section
6.1.10.2 of the Credit Agreement, none of the Loan Parties is
permitted to hold or intend to hold margin stock in such amounts so
that more than 25% of the reasonable value of the assets of any
Loan Party is margin stock;
WHEREAS, on September 2, 2005 Consol
Sales Company officially changed its name to CONSOL Energy Sales
Company (the “ Loan Party Name Change
”);
WHEREAS, pursuant to the terms of
Section 8.2.14(a) of the Credit Agreement and the terms of various
of the Loan Documents, the Loan Parties are required to provide to
the Paying Agent and the Lenders, and as applicable, the Collateral
Trustee, a written notice detailing any name change by any Loan
Party, at least thirty (30) days before the effective date of any
such change.
NOW, THEREFORE, the parties hereto,
in consideration of the mutual covenants and agreements herein
contained and intending to be legally bound hereby, covenant and
agree as follows:
1. Recitals . The recitals
set forth above are hereby incorporated herein by
reference.
2. Amendment to Credit
Agreement . Section 6.1.10.2 [Margin Stock] of the Credit
Agreement is hereby amended and restated in its entirety as
follows:
“None of the Loan Parties
engages or intends to engage principally, or as one of its
important activities, in the business of extending credit for the
purpose, immediately, incidentally or ultimately, of purchasing or
carrying margin stock (within the meaning of Regulation U). No part
of the proceeds of any Loan has
been or will be used as a
“Purpose Credit” (as defined in Regulation U) to
purchase or carry any margin stock or to extend credit to others
for the purpose of purchasing or carrying any margin stock or to
refund Indebtedness originally incurred for such purpose, or for
any purpose which entails a violation of or which is inconsistent
with the provisions of the regulations of the Board of Governors of
the Federal Reserve System.”
3. Waiver . The Lenders
hereby authorize the Paying Agent, on their behalf, to waive, or
cause to be waived, any and all violations of the Credit Agreement
and any other Loan Document arising from any failure of any Loan
Party to provide at least thirty (30) day’s written notice
detailing the Loan Party Name Change and the effective date of the
Loan Party Name Change and to take any and all other actions in
furtherance thereof.
4. Condition Precedent . The
effectiveness of Section 2 [Amendment of Credit Agreement] hereof
is expressly conditioned upon satisfaction of the conditions set
forth in items (a) and (b) below being satisfied to the
satisfaction of the Paying Agent, and the effectiveness of Section
3 [Waiver] hereof is expressly conditioned upon satisfaction of the
condition set forth in item (a) below being satisfied to the
satisfaction of the Paying Agent:
(a) The Paying Agent shall have
received from the Borrower, each Loan Party, and the Required
Lenders an executed original of this Amendment and Waiver in form
and substance satisfactory to the Paying Agent.
(b) The Loan Parties shall have
delivered a completed and fully executed Federal Reserve Form U-1
[Statement of Purpose for an Extension of Credit Secured by Margin
Stock] confirming that the Loans will not be used, in whole or in
part, to purchase or carry margin stock
5. Incorporation into
Agreements . The terms, provisions, representations, warranties
and covenants set forth herein shall be incorporated into the
Credit Agreement by this reference. All terms, provisions,
representations, warranties and covenants set forth herein shall be
a part of the Credit Agreement as if originally contained
therein.
6. Full Force and Effect .
Except as expressly modified by this Amendment, all of the terms,
conditions, representations, warranties and covenants contained in
the Credit Agreement shall continue in full force and effect,
including without limitation, all liens and security interests
securing the Borrower’s obligations under the Secured
Debt.
7. Counterparts . This
Amendment may be executed by different parties hereto in any number
of separate counterparts, each of which, when so executed and
delivered shall be an original and all such counterparts shall
together constitute one and the same instrument.
8. Severability . If any term
of this Amendment or any application thereof shall be held to be
invalid, illegal or unenforceable, the validity of other terms of
this Amendment or any other application of such term shall in no
way be affected thereby.
9. Entire Agreement . This
Amendment sets forth the entire agreement and understanding of the
parties with respect to the amendment to the Credit
Agreement
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contemplated hereby and supersedes all prior
understandings and agreements, whether written or oral, between the
parties hereto relating to such amendments. No representation,
promise, inducement or statement of intention has been made by any
party that is not embodied in this Amendment, and no party shall be
bound by or liable for any alleged representation, promise,
inducement or statement of intention not set forth
herein.
10. Governing Law . This
Amendment shall be construed and enforced in accordance with, and
the rights of the parties shall be governed by, the internal laws
of the State of Pennsylvania applicable to contracts made and to be
performed in said State.
[SIGNATURES APPEAR ON FOLLOWING
PAGES]
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT]
IN WITNESS WHEREOF, the parties
hereto, by their officers thereunto duly authorized, have executed
this First Amendment and Waiver to Amended and Restated Credit
Agreement as of the day and year first above written with the
intention that it constitute a sealed instrument.
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LOAN
PARTIES:
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CONSOL ENERGY INC., as Borrower
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By:
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/s/ William J. Lyons
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(Seal)
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Name:
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William J.
Lyons
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Title:
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Executive Vice
President and Chief
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Financial
Officer
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT]
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CENTRAL OHIO COAL COMPANY
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CHURCH STREET HOLDINGS, INC.
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CNX MARINE TERMINALS INC.
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CONSOL FINANCIAL INC.
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CONSOL OF CANADA INC.
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CONSOL OF KENTUCKY INC.
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CONSOL PENNSYLVANIA COAL COMPANY
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CONSOLIDATION COAL COMPANY
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EIGHTY-FOUR MINING
COMPANY
HELVETIA COAL
COMPANY
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IC COAL, INC.
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ISLAND CREEK COAL COMPANY
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KEYSTONE COAL MINING CORPORATION
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LAUREL RUN MINING COMPANY
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LEATHERWOOD, INC.
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McELROY COAL COMPANY
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NEW CENTURY HOLDINGS, INC.
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QUARTO MINING COMPANY
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ROCHESTER & PITTSBURGH COAL
COMPANY
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SOUTHERN OHIO COAL COMPANY
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TWIN RIVERS TOWING COMPANY
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WINDSOR COAL COMPANY
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WOLFPEN KNOB DEVELOPMENT COMPANY
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By:
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/s/ John M. Reilly
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(Seal)
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John M. Reilly, Treasurer of each
Guarantor
listed above on behalf of each such
Guarantor
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT]
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CNX LAND
RESOURCES INC.
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MTB
INC.
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RESERVE COAL
PROPERTIES COMPANY
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By:
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/s/ William D. Stanhagen
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(Seal)
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Name:
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William D.
Stanhagen
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Guarantor listed above on behalf of
each
such Guarantor
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CONSOL DOCKS
INC.
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By:
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/s/ P. Jerome Richey
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(Seal)
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Name:
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P. Jerome
Richey
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Title:
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Vice
President
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CONSOL
ENERGY SALES COMPANY
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By:
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/s/ Robert F. Pusateri
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(Seal)
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Name:
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Robert F.
Pusateri
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Title:
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Vice
President
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
amended and restated CREDIT
AGREEMENT]
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TERRA FIRMA COMPANY
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By:
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/s/ James A. Russell
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(Seal)
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Name:
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James A.
Russell
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Title:
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President
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CONRHEIN COAL COMPANY
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By:
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CONSOLIDATION COAL COMPANY, a
general partner
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By:
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/s/ William D. Stanhagen
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(Seal)
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Name:
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William D.
Stanhagen
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Title:
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Vice
President
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CONSOL OF WV LLC
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By:
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/s/ Robert M. Vukas
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(Seal)
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Name:
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Robert M.
Vukas
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Title:
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Manager
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT]
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LENDER:
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ALLIED IRISH BANKS, p.l.c.
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By:
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Name:
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Title:
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By:
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Name:
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Title:
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT]
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LENDER:
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BABSON AND
COMPANY
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By:
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Name:
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Title:
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT]
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LENDER:
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BANK OF AMERICA, N.A., successor
by
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merger to FLEET NATIONAL BANK,
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individually and as Co-Syndication
Agent
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By:
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/s/ Robert D. Valbona
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Name:
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Robert D.
Valbona
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Title:
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Managing
Director
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT]
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LENDER:
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BANK OF MONTREAL
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By:
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/s/ R. Wright
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Name:
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R.
Wright
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Title:
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Vice-President
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT]
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LENDER:
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BAYERISCHE
HYPO-UND VEREINSBANK
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AG, NEW YORK
BRANCH
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By:
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/s/ William W. Hunter
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Name:
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William W.
Hunter
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Title:
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Director
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By:
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/s/ Annett Guderian
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Name:
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Annett
Guderian
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Title:
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Associate
Director
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[SIGNATURE PAGE TO FIRST
AMENDMENT AND WAIVER TO
AMENDED AND RESTATED CREDIT
AGREEMENT]
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LENDER:
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BAYERISCHE
LANDESBANK
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By:
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Name:
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Title:
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By:
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Name:
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