1994-02-06_GENERAL DOCUMENTS - C1981017

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The Plan provides for the establishment of a Creditors ' Trust for the purpose of liquidating assets of the Debtor and distributing funds to various claims, including the Class 4 claim of Sanwa. Sanwa's claim shall be voluntarily subordinated (i) to tax priority claims; (ii) to Class 5 reclamation claims up to $3,000,000, subject to reductions for reclamation work performed prior to confirmation, proceeds received from assets pledged to secure reclamation, and the value of certain contractual services; (iii) to Class 6 environmental claims, up to $250,000; and (iv) to Class 7, 8, and 9 unsecured claims, up to 5% of the allowed claims in those classes. Sanwa shall receive the balance of funds from the Creditors' Trust, to the extent that such funds are realized. Sanwa shall not participate as a general unsecured creditor with respect to the undersecured portion of its claim. For a more complete description of the Creditors' Trust, see Section III.C, "Creditors' Trust, " on page 29 below. 5. Class 5 -- Reclamation Claims Class 5 consists of the allowed claims of the MLRB, the Division, and the OSM for reclamation or interim maintenance of the Debtor's Mine, the Marblehead Quarry, and the Mid-Continent Quarry, whether or not such claims arise under (i) the Debtor's approved reclamation plan, including any revisions to the plan; (ii) applicable federal or state statutes, regulations, or rules, including fines imposed for violation of such statutes, regulations, or rules; or (iii) other doctrines of law or equity. The Class 5 claims include claims for money, claims for injunctive relief, or claims for enforcement of other legal or equitable rights. Such claims include amounts required under the Debtor's current performance bond and any revisions thereto to which the MLRB or the OSM may now or hereafter be entitled. The Class 5 claims pertaining to the the Mid-Continent Quarry are secured by a senior deed of trust on the Carbondale Industrial Park, limited in amount to $7,000. The Class 5 claims pertaining to the Marblehead Quarry are secured by two certificates of deposit, in the approximate amount of $4,500. The Plan provides for the payment, to the MLRB, of $7,000 in cash, which shall cause the release of the deed of trust on the Carbondale Industrial Park, and of the proceeds of the certificates of deposit securing reclamation of the Marblehead Quarry. Such payment shall occur on the Effective Date. The Class 5 claims pertaining to the Mine are secured by a senior consensual lien on a property known as the Rockdust Plan. The Plan provides for sale of the Rockdust Plant by the Environmental Trustee and for the distribution of the "Net Proceeds" from the plant to the MLRB. Alternatively, the Class 5 claimants, at their election, may foreclose on the Rockdust Plant. 20