Document:

Exhibit 10.3

 

EXECUTION
COPY

 

REGISTRATION
RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of November 19,
2009, is entered into by and among Cloud Peak Energy Inc., a Delaware
corporation (including its successors, the “Company”),
Cloud Peak Energy Resources LLC, a Delaware limited liability company(“CPE LLC”), Rio Tinto America Inc.,
a Delaware corporation (“RTA”), Rio
Tinto Energy America Inc., a Delaware corporation (“RTEA”)
and Kennecott Management Services Company, a Delaware corporation (“KMS”). The Company, RTEA and KMS
are parties to the Third Amended and Restated Limited Liability Company
Agreement of CPE LLC.

 

ARTICLE
1

DEFINITIONS

 

1.1.          Definitions.  The following terms shall have the meanings
set forth in this Section 1.1:

 

“Affiliate”
of any specified Person means any other Person directly or indirectly
“controlling,” “controlled by” or “under common control with” (within the
meaning of Rule 405 under the Securities Act), such specified Person; provided,
however, the determination of whether a Person is an Affiliate of
another Person shall be made assuming that no Holder is an Affiliate of the
Company or CPE LLC solely by virtue of the ownership of Membership Units.

 

“Common Stock”
shall mean the Company’s common stock, par value $0.01 per share.

 

“Equity Interests”
mean, with respect to the Company, any and all shares of capital stock in the
Company or securities convertible into, or exchangeable or exercisable for,
such shares, and options, warrants or other rights to acquire such shares.  For purposes of this Agreement, Equity
Interests shall include all issued and outstanding Membership Units.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any similar federal
statute, and the rules and regulations promulgated by the SEC thereunder.

 

“Excluded Registration”
means a registration under the Securities Act of (i) securities pursuant
to one or more Demand Registrations pursuant to Section 2.1 hereof,
(ii) securities registered on Form S-8 or any similar successor form,
and (iii) securities registered to effect the acquisition of, or
combination with, another Person.

 

“Holder”
means (i) RTEA, (ii) KMS and (iii) any Person to whom RTA, RTEA
or KMS assigns rights under this Agreement pursuant to Section 2.9,
and who has agreed in writing to be bound by the terms of this Agreement.

 

 

“Initial
Public Offering” means the initial public offering registered
under the Securities Act of the Common Stock of the Company.

 

“IPO Registration Statement”
means the Company’s registration statement on Form S-1 (File No. 333-161293),
as amended, filed with the SEC in connection with the Initial Public Offering.

 

“Membership Units”
means the common membership units of CPE LLC.

 

“Person” or
“person” means any individual,
corporation, partnership, limited liability company, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or other agency or political subdivision thereof.

 

“register,”
“registered” and “registration” refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

 

“Registrable
Securities” means the shares of the
Company’s Common Stock issued or issuable to any Holder in exchange for
Membership Units or any other shares of Common Stock owned at any time by the
Holders. As to any particular Registrable Securities, such Common Stock shall
cease to be Registrable Securities when: (a) a registration statement with
respect to the sale of such Common Stock shall have become effective under the
Securities Act and such Common Stock shall have been disposed of in accordance
with such registration statement; (b) such Common Stock shall have been
sold to the public pursuant to Rule 144 under the Securities Act (or any
successor provision); or (c) such Common Stock shall have ceased to be
outstanding.

 

“Requesting
Holders” shall mean any Holder(s) requesting
to have its (their) Registrable Securities included in any Demand Registration
or Shelf Registration.

 

“SEC” means
the Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act.

 

“Securities
Act” means the Securities Act of
1933, as amended, or any similar federal statute, and the rules and
regulations promulgated by the SEC thereunder.

 

1.2.          Other Terms.  For purposes of this Agreement, the following
terms have the meanings set forth in the section or agreement indicated.

 

	
  Term

  	
   

  	
  Section

  
	
  Advice

  	
   

  	
  Section 2.6

  
	
  Agreement

  	
   

  	
  Introductory
  Paragraph

  
	
  Blackout
  Period

  	
   

  	
  Section 2.1.6

  
	
  Company

  	
   

  	
  Introductory
  Paragraph

  

 

2

 

	
  Demand
  Registration

  	
   

  	
  Section 2.1.1(i)

  
	
  Demanding
  Shareholders

  	
   

  	
  Section 2.1.1(i)

  
	
  Demand
  Request

  	
   

  	
  Section 2.1.1(i)

  
	
  FINRA

  	
   

  	
  Section 2.7.1

  
	
  Inspectors

  	
   

  	
  Section 2.5(xiii)

  
	
  KMS

  	
   

  	
  Introductory
  Paragraph

  
	
  New
  York Courts

  	
   

  	
  Section 3.3.2

  
	
  Piggyback
  Registration

  	
   

  	
  Section 2.2.1

  
	
  Required
  Filing Date

  	
   

  	
  Section 2.1.1(ii)

  
	
  RTA

  	
   

  	
  Introductory
  Paragraph

  
	
  RTEA

  	
   

  	
  Introductory
  Paragraph

  
	
  Shelf
  Registration

  	
   

  	
  Section 2.3

  
	
  Suspension
  Notice

  	
   

  	
  Section 2.6

  
	
  Suspension
  Period

  	
   

  	
  Section 2.6

  

 

1.3.          Rules of Construction.  Unless the context otherwise requires

 

(1)                      a term has the
meaning assigned to it;

 

(2)                      words in the
singular include the plural, and words in the plural include the singular; and

 

(3)                      “herein,”
“hereof” and other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section or other subdivision.

 

ARTICLE 2

REGISTRATION RIGHTS

 

2.1.          Demand Registration.

 

2.1.1        Request for Registration.

 

(i)            Commencing on the date
hereof, RTA shall have the right to require the Company to file a registration
statement on Form S-1 or S-3 or any similar or successor to such forms
under the Securities Act for a public offering of all or part of the
Registrable Securities of one or more Holders of Registrable Securities (a “Demand  Registration”),
by delivering to the Company written notice stating that such right is being
exercised, naming, if applicable, the Holders whose Registrable Securities are
to be included in such registration (collectively, the “Demanding
Shareholders”), specifying the
number of each such Demanding Shareholder’s Registrable Securities to be
included in such registration and, subject to Section 2.1.3 hereof,
describing the intended method of distribution thereof (a “Demand
Request”).  The IPO Registration Statement shall not
constitute a Demand Registration for any purpose under this Agreement.  RTA may exercise its rights under this Section 2.1
on behalf of any Holder of Registrable Securities, in RTA’s sole discretion.

 

3

 

(ii)           Each Demand Request shall
specify the aggregate number of Registrable Securities proposed to be
sold.  Subject to Section 2.1.6, the Company shall file the
registration statement in respect of a Demand Registration within forty-five
(45) days after receiving a Demand Request (the “Required
Filing  Date”)
and shall use reasonable best efforts to cause the same to be declared
effective by the SEC as promptly as practicable after such filing; provided,
however, that:

 

(a)           the Company shall not be
obligated to cause a registration statement with respect to a Demand
Registration to be declared effective pursuant to Section 2.1.1(i) (A) within
60 days after the effective date of a previous Demand Registration, other than
a Shelf Registration pursuant to this Article 2, or (B) within 180
days after the effective date of the IPO Registration Statement unless any
underwriter lock-up period applicable to RTEA and/or KMS in connection with the
Initial Public Offering has been waived;

 

(b)           the Company shall not be
obligated to cause a registration statement with respect to a Demand
Registration to be declared effective pursuant to Section 2.1.1(i) unless
the Demand Request is for a number of Registrable Securities with a market
value that is equal to at least $50 million as of the date of such Demand
Request; provided, however, that this Section 2.1.1.(ii)(b) shall
not apply if the applicable Demand Request is for all of the Registrable
Securities held by the Holders as of the date of such Demand Request;

 

(c)           the Company shall not be
obligated to cause to be declared effective pursuant to Section 2.1.1(i) more
than five registration statements with respect to Demand Registrations; and

 

(d)           if the Company causes a
registration statement to be declared effective registering the sale of the
Company’s equity securities and conducts a sale of such equity securities, the
net proceeds of which will be used solely for the purpose of causing CPE LLC to
redeem Membership Units from RTEA or KMS in exchange for cash, such
registration statement shall constitute a Demand Registration under the terms
of this Agreement so long as the net proceeds are equal to at least $50
million.

 

2.1.2        Primary Offering.  In the event RTA chooses to exercise a Demand
Registration on behalf of RTEA and/or KMS but either are unable to sell the
Registrable Securities in such Demand Registration under applicable law or due
to an SEC position or interpretation regarding such Demand Registration, as
promptly as practicable following such an occurrence, the Company shall use its
reasonable best efforts to conduct an SEC registered offering of its securities
(including, without limitation, debt or equity securities), the net proceeds of
which shall be used to repurchase the Registrable Securities from RTEA or KMS,
as applicable, that were intended to be part of such Demand Registration.  Any such securities offering by the Company
shall be deemed to satisfy one Demand Registration under this Section 2.1.

 

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2.1.3        Selection of Underwriters.  At the request of a majority of the
Requesting Holders (as defined below), the offering of Registrable Securities
pursuant to a Demand Registration shall be in the form of a “firm commitment”
underwritten offering.  The Holders of a majority of the Registrable
Securities to be registered in a Demand Registration shall select the
investment banking firm or firms to manage the underwritten offering, provided
that such selection shall be subject to the consent of the Company, which
consent shall not be unreasonably withheld, delayed or conditioned. Following
the printing of any preliminary prospectus or preliminary prospectus
supplement, no Holder participating in such an underwritten offering may
withdraw its Registrable Securities from such Demand Registration without the
consent of a majority of the Requesting Holders or RTA.  No Holder may participate in any registration
pursuant to Section 2.1.1 unless such Holder (x) agrees to
sell such Holder’s Registrable Securities on the basis provided in any
underwriting arrangements described above and (y) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents and delivers all opinions reasonably required under the
terms of such underwriting arrangements; provided, however, that
no such Holder shall be required to make any representations or warranties in
connection with any such registration other than representations and warranties
as to (i) such Holder’s ownership of his or its Registrable Securities to
be transferred free and clear of all encumbrances, (ii) such Holder’s
power and authority to effect such transfer, and (iii) such matters
pertaining to compliance with securities laws as may be reasonably requested; provided,
further, however, that the obligation of such Holder to indemnify
pursuant to any such underwriting arrangements shall be several, not joint and
several, among such Holders selling Registrable Securities, and the liability
of each such Holder will be in proportion thereto, and provided, further,
that such liability will be limited to the net amount received by such Holder
from the sale of his or its Registrable Securities pursuant to such
registration; and provided, further, that any such
indemnification provided by a Holder selling Registerable Securities shall be
limited to indemnification for information provided by such Holder specifically
for inclusion in the registration statement.

 

2.1.4        Rights of Nonrequesting
Holders.  Upon receipt of any Demand
Request, the Company shall no later than ten (10) days after filing of the
relevant registration statement give written notice delivered by hand,
facsimile transmission, electronic mail or nationally recognized overnight
delivery service (with postage prepaid) of such proposed Demand Registration to
all other Holders, who shall have the right, exercisable by written notice to
the Company within fifteen (15) days of the delivery of the Company’s notice,
to elect to include in such Demand Registration such portion of their
Registrable Securities as they may request.  All Holders requesting to have
their Registrable Securities included in a Demand Registration in accordance
with the preceding sentence shall be deemed to be “Requesting Holders” for
purposes of this Section 2.1.

 

2.1.5        Priority on Demand
Registrations.  No securities to be sold for the account of
any Person (including the Company) other than a Requesting Holder shall be
included in a Demand Registration unless the managing underwriter or
underwriters shall advise the Requesting Holders that such securities may be
included and sold in an orderly manner at a price that is acceptable to the
holders of a majority of the Registrable Securities of the Requesting Holders
to be included in such Demand Registration.  The managing underwriter or
underwriters may make any determination pursuant to this Section 2.1.5
both prior to and following the 

 

5

 

printing of any preliminary prospectus or
preliminary prospectus supplement with respect to any Demand Registration.

 

2.1.6        Deferral of Filing.  During any calendar year, the Company may
defer the filing (but not the preparation) of a registration statement required
by Section 2.1 to after the Required Filing Date (i) for no
more than thirty (30) days during such calendar year if at the time the Company
receives the Demand Request, the Board of Directors of the Company or a
committee of the Board of Directors of the Company reasonably determines in
good faith that such filing would be materially detrimental to the Company, any
of its Subsidiaries or the stockholders of the Company, and (ii) for no
more than one hundred twenty (120) days less the number of days utilized
pursuant to clause (i) above during such calendar year if at the time the
Company receives the Demand Request, the Company or any of its Subsidiaries are
engaged in confidential negotiations or other confidential business activities,
disclosure of which would be required in such registration statement (but would
not be required if such registration statement were not filed), and the Board
of Directors of the Company or a committee of the Board of Directors of the
Company reasonably determines in good faith that such disclosure would have a
material adverse effect on the Company and its stockholders (any such period
during which such filing is deferred pursuant to this Section 2.1.6,
a “Blackout  Period”). 
The Company may only exercise its right to defer a registration statement
pursuant to this Section 2.1.6 twice in any calendar year and,
considered together with any Suspension Period (as defined in Section 2.6),
 (a) for no more than thirty (30) calendar days with respect to
items of the type covered by clause (i) above  and (b) for no
more than one hundred and twenty (120) days less the number of days covered by
clause (a) above in the aggregate during such calendar year.  A
deferral of the filing of a registration statement pursuant to Section 2.1.6(ii) shall
be lifted, and the requested registration statement shall be filed forthwith,
if the negotiations or other activities are disclosed or terminated.  In
order to defer the filing of a registration statement pursuant to this Section 2.1.6,
the Company shall within ten (10) days, upon determining to seek such
deferral, deliver to each Requesting Holder a certificate signed by an
executive officer of the Company stating that the Company is deferring such
filing pursuant to this Section 2.1.6 (subject to execution of a
confidentiality agreement if required by law or contract) and a general
statement of the reason for such deferral and an approximation of the
anticipated delay.  Within twenty (20) days after receiving such
certificate, RTA may withdraw such Demand Request by giving notice to the
Company; if withdrawn, the Demand Request shall be deemed not to have been made
for all purposes of this Agreement.

 

2.2.          Piggyback Registrations.

 

2.2.1        Right to Piggyback.  Each time the Company proposes to register
any of its equity securities (other than pursuant to an Excluded Registration)
under the Securities Act for sale to the public (whether for the account of the
Company or the account of any securityholder of the Company) (a “Piggyback  Registration”),
the Company shall give prompt written notice to each Holder (which notice shall
be given not less than twenty (20) days prior to the anticipated printing of
any preliminary prospectus), which notice shall offer each such Holder the
opportunity to include any or all of its Registrable Securities in such
registration statement, subject to the limitations contained in Section 2.2.2
hereof.  Each Holder who desires to have its Registrable Securities
included in such registration statement shall so advise the Company in writing
(stating the number of shares desired to be registered) within ten (10) days
after the date 

 

6

 

of such notice from the Company.  Any Holder
shall have the right to withdraw such Holder’s request for inclusion of such
Holder’s Registrable Securities in any registration statement pursuant to this Section 2.2.1
by giving written notice to the Company of such withdrawal.  The Company
shall include in such registration statement all such Registrable Securities so
requested to be included therein; provided, however, that the
Company may at any time withdraw or cease proceeding with any such registration
if it shall at the same time withdraw or cease proceeding with the registration
of all other equity securities originally proposed to be registered.  Notwithstanding this Section 2.2.1,
a Piggyback Registration shall not include any registration statement which is
initiated by the Company and for which the intended use of all of the net
proceeds by the Company is to cause CPE LLC to redeem Membership Units from one
or more Holders in exchange for cash.

 

2.2.2        Priority on Piggyback
Registrations.

 

(i)            With respect to any
Piggyback Registration filed during the first three years following the
completion of the Initial Public Offering:

 

(a)           If a Piggyback Registration
is an underwritten offering and was initiated by the Company, the Company shall
include in such registration statement (a) first, RTEA and/or KMS’s
Registrable Securities requested to be included in such registration, (b) second,
the securities the Company proposes to sell, and (c) third, any other
securities requested to be included in such registration.

 

(ii)           With respect to any
Piggyback Registration filed after the time period specified in Section 2.2.2(i) above:

 

(a)           If a Piggyback Registration
is an underwritten offering and was initiated by the Company, the Company shall
include in such registration statement the securities to be included therein by
the Company and any other securities requested to be included therein, pro rata
on the basis of the number of shares to be so registered.

 

(iii)          If a Piggyback Registration
is an underwritten offering and was initiated by a security holder of the
Company, the Company shall include in such registration statement (a) first,
the Registrable Securities requested to be included in such registration, (b) second,
the securities requested to be included therein by the security holders
requesting such registration, pro rata among the holders of such securities on
the basis of the number of securities owned by each such holder, and (c) third,
any other securities requested to be included in such registration (including
securities to be sold for the account of the Company).

 

(iv)          No Holder may participate in
any registration statement in respect of a Piggyback Registration hereunder
unless such Holder (x) agrees to sell such Holder’s Registrable Securities
on the basis provided in any underwriting arrangements approved by the Company
and (y) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents and delivers all
opinions, each in customary form, reasonably required under the terms of such
underwriting arrangements; provided, however, that 

 

7

 

no such Holder shall be required to make any
representations or warranties in connection with any such registration other
than representations and warranties as to (a) such Holder’s ownership of
his or its Registrable Securities to be sold or transferred free and clear of
all encumbrances, (b) such Holder’s power and authority to effect such
transfer, and (c) such matters pertaining to compliance with securities
laws as may be reasonably requested; provided, further, however,
that the obligation of such Holder to indemnify pursuant to any such
underwriting arrangements shall be several, not joint and several, among such
Holders selling Registrable Securities, and the liability of each such Holder
will be in proportion to, and provided, further, that such
liability will be limited to, the net amount received by such Holder from the
sale of his or its Registrable Securities pursuant to such registration; and provided,
further, that any such indemnification provided by a Holder selling
Registrable Securities shall be limited to indemnification for information
provided by such Holder specifically for inclusion in the registration
statement.

 

2.2.3        Selection of Underwriters.

 

(i)            In the event of any
Piggyback Registration pursuant to Section 2.2.2(i), RTA (if RTEA
and/or KMS are participating) (a) may select one or more investment
banking firms to manage the offering, and (b) may select one or more
investment banking firms to participate in any underwriting syndicate, provided,
however, that RTA shall cooperate in good faith with the Company to
select the investment banking firms to participate in such underwriting
syndicate and such investment banking firms shall be reasonably acceptable to
the Company.

 

(ii)           In the event of any
Piggyback Registration pursuant to Section 2.2.2(ii) that is
an underwritten offering initiated by the Company, (a) the Company may
select one or more investment banking firms to manage the offering, and (b) the
Holders of a majority of the Registrable Securities (including for purposes of
this Section 2.2.3(ii) any shares of the Company’s Common
Stock held by the Company to be included in such registration statement)
included in such Piggyback Registration may select one or more investment
banking firms to participate in any underwriting syndicate, provided, however,
that such Holders shall cooperate in good faith with the Company to select the
investment banking firms to participate in such underwriting syndicate and such
investment banking firms shall be reasonably acceptable to the Holders and the
Company.

 

2.3.          SEC Form S-3.  The Company shall use its reasonable best
efforts to become eligible to use Form S-3 and, after becoming eligible to
use Form S-3, shall use its reasonable best efforts to remain so
eligible.  Once the Company becomes
eligible to use Form S-3 (or any successor form), then RTA  may require the Company to cause Demand
Registrations to be filed on Form S-3 (or any successor form) (a “Shelf  Registration”).  If the Company is not then eligible under the
Securities Act to use Form S-3, Demand Registrations shall be filed on the
form for which the Company then qualifies.

 

2.4.          Holdback Agreements.

 

(i)            The Company shall not and
shall use its reasonable best efforts to cause its officers and directors not
to effect any public sale or distribution of the equity securities of the
Company, or any securities convertible into or exchangeable or exercisable for
such 

 

8

 

securities (other than any public sale or
distribution pursuant to a plan that complies with Rule 10b5-1 under the
Exchange Act), during the ten (10) days prior to and during the 90-day
period beginning on the effective date of any registration statement in
connection with a Demand Registration (other than a Shelf Registration), a
Piggyback Registration or any registered underwritten public offering of the
equity securities of the Company in which the Holders participate, except
pursuant to registrations on Form S-4 or Form S-8 or any successor
form or unless the underwriters managing any such public offering on Form S-4
or Form S-8 otherwise agree; provided, however, that if (1) during
the last seventeen (17) days of any such 90-day period, the Company
releases earnings results or material news or a material event relating to the
Company occurs or (2) prior to the expiration of any such ten (10) day
or 90-day period, the Company announces that it will release earnings results
during the 16-day period beginning on the last day of such ten (10) day or
90-day period, then, in each case, such ten (10) day or 90-day period will
be extended until the expiration of the 18-day period beginning on the date of
release of the earnings results or the occurrence of the material news or
material event, as applicable, unless the underwriters managing any such public
offering waives, in writing, such extension.

 

(ii)           If any Holders of
Registrable Securities notify the Company in writing that they intend to effect
an underwritten sale of Registrable Securities registered pursuant to a Shelf
Registration pursuant to Article 2 hereof, the Company shall not and shall
use its reasonable best efforts to cause its officers and directors not to
effect any public sale or distribution of the equity securities of the Company,
or any securities convertible into or exchangeable or exercisable for its
equity securities, during the ten (10) days prior to and during the 90-day
period beginning on the date such notice is received, except pursuant to
registrations on Form S-4 or Form S-8 or any successor form or unless
the underwriters managing any such public offering otherwise agree; provided,
however, that if (1) during the last seventeen (17) days of
any such 90-day period, the Company releases earnings results or material news
or a material event relating to the Company occurs or (2) prior to the
expiration of any such 90-day period, the Company announces that it will
release earnings results during the 16-day period beginning on the last day of
such 90-day period, then, in each case, such 90-day period will be extended
until the expiration of the 18-day period beginning on the date of release of
the earnings results or the occurrence of the material news or material event,
as applicable, unless the underwriters managing any such public offering
waives, in writing, such extension.

 

(iii)          For so long as RTEA, KMS or
any of their Affiliates holds, in the aggregate, more than twenty-percent of
the outstanding Equity Interests, each Holder agrees, in the event of an
underwritten offering by the Company (whether for the account of the Company or
otherwise) in which such Holder has a right to participate, not to offer, sell,
contract to sell or otherwise dispose of any Registrable Securities, or any
securities convertible into or exchangeable or exercisable for such securities,
including any sale pursuant to Rule 144 under the Securities Act (except
as part of such underwritten offering), during the ten (10) days prior to,
and during the 90-day period (or such lesser period as the lead or managing
underwriters may require) beginning on, the effective date of the registration
statement for such underwritten offering (or, in the case of an offering
pursuant to an effective shelf registration statement pursuant to Rule 415,
the pricing date for such underwritten offering); provided, however,
that if (1) during the last seventeen (17) days of any 90-day period,
the Company releases earnings results or material news or a material event
relating to the Company occurs or (2) prior to the 

 

9

 

expiration of any 90-day period, the Company
announces that it will release earnings results during the 16-day period
beginning on the last day of such 90-day period, then in each case such 90-day
period will be extended until the expiration of the 18-day period beginning on
the date of release of the earnings results or the occurrence of the material
news or material event, as applicable, unless the underwriters managing any
such public offering waives, in writing, such extension.

 

2.5.          Registration Procedures.  Whenever any Holder has requested that any
Registrable Securities be registered pursuant to this Agreement, the Company
will use its reasonable best efforts to complete the registration and the sale
of such Registrable Securities in accordance with the intended method of
disposition thereof within the time periods set forth in this Agreement, and
pursuant thereto the Company will as promptly as practicable:

 

(i)            prepare and
file with the SEC, pursuant to Section 2.1.1(ii) with respect
to any Demand Registration, a registration statement on any appropriate form
under the Securities Act with respect to such Registrable Securities and use
its reasonable best efforts to cause such registration statement to become
effective, provided that as far in advance as practicable before filing such
registration statement or any amendment thereto, the Company will furnish to
the selling Holders copies of reasonably complete drafts of all such documents
prepared to be filed (including exhibits), and any such Holder shall have the
opportunity to object to any information contained therein and the Company will
make corrections reasonably requested by such Holder with respect to such
information prior to filing any such registration statement or amendment;

 

(ii)           except in the
case of a Shelf Registration, prepare and file with the SEC such amendments,
post-effective amendments, and supplements to such registration statement and
the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period of not less than one hundred
eighty (180) days (or such lesser period as is necessary for the underwriters
in an underwritten offering to sell unsold allotments) and comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement during such period in
accordance with the intended methods of disposition by the sellers thereof set
forth in such registration statement;

 

(iii)          in the case of
a Shelf Registration, prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement
effective and to comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities subject thereto for a period
ending on the date on which all the Registrable Securities subject thereto have
been sold pursuant to such registration statement;

 

(iv)          furnish to each
seller of Registrable Securities and the underwriters of the securities being
registered such number of copies of such registration statement, each amendment
and supplement thereto, the prospectus included in such registration statement
(including each preliminary prospectus), any issuer free writing prospectus,
any documents incorporated by reference therein and such other documents as
such seller or 

 

10

 

underwriters
may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such seller or the sale of such securities by
such underwriters (it being understood that, subject to Section 2.6
and the requirements of the Securities Act and applicable state securities
laws, the Company consents to the use of the prospectus, any amendment or
supplement thereto and any issuer free writing prospectus by each seller and
the underwriters in connection with the offering and sale of the Registrable
Securities covered by the registration statement of which such prospectus,
amendment or supplement is a part);

 

(v)           use its
reasonable best efforts to register or qualify such Registrable Securities
under such other securities or “blue sky” laws of such jurisdictions as the
managing underwriter reasonably requests (or, in the event the registration
statement does not relate to an underwritten offering, as the holders of a
majority of such Registrable Securities may reasonably request); use its
reasonable best efforts to keep each such registration or qualification (or
exemption therefrom) effective during the period in which such registration
statement is required to be kept effective; and do any and all other acts and
things which may be reasonably necessary or advisable to enable each seller to
consummate the disposition of the Registrable Securities owned by such seller in
such jurisdictions (provided, however, that the Company will not
be required to (A) qualify generally to do business in any jurisdiction
where it would not otherwise be required to qualify but for this subparagraph
or (B) consent to general service of process in any such jurisdiction);

 

(vi)          promptly notify
each seller and each underwriter and (if requested by any such Person) confirm
such notice in writing (A) when a registration statement or any issuer
free writing prospectus used in connection therewith, a prospectus or any
prospectus supplement or post-effective amendment has been filed and, with
respect to a registration statement or any post-effective amendment, when the
same has become effective, (B) of the issuance by any state securities or
other regulatory authority of any order suspending the qualification or
exemption from qualification of any of the Registrable Securities under state
securities or “blue sky” laws or the initiation of any proceedings for that
purpose, and (C) of the happening of any event which makes any statement
made in a registration statement or related prospectus or issuer free writing
prospectus untrue or which requires the making of any changes in such
registration statement, prospectus, issuer free writing prospectus or documents
so that they will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and, as promptly as practicable
thereafter, prepare and file with the SEC and furnish a supplement or amendment
to such prospectus or additional issuer free writing prospectus so that, as
thereafter deliverable to the purchasers of such Registrable Securities, such
prospectus will not contain any untrue statement of a material fact or omit a
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

 

(vii)         permit any
selling Holder, which in such Holder’s sole and exclusive judgment, might
reasonably be deemed to be an underwriter or a controlling person of the
Company, to participate in the preparation of such registration or comparable
statement 

 

11

 

and
to require the insertion therein of material, furnished to the Company in
writing, which in the reasonable judgment of such Holder and its counsel should
be included;

 

(viii)        make reasonably
available members of management of the Company, as selected by the Holders of a
majority of the Registrable Securities included in such registration, for
assistance in the selling effort relating to the Registrable Securities covered
by such registration, including, but not limited to, the participation of such
members of the Company’s management in live or recorded road show
presentations;

 

(ix)           otherwise use
its reasonable best efforts to comply with all applicable rules and
regulations of the SEC, including the Securities Act and the Exchange Act and
the rules and regulations promulgated thereunder, and make generally
available to the Company’s securityholders an earnings statement satisfying the
provisions of Section 11(a) of the Securities Act no later than
ninety (90) days after the end of the twelve (12) month period beginning with
the first day of the Company’s first fiscal quarter commencing after the
effective date of a registration statement, which earnings statement shall
cover said twelve (12) month period, and which requirement will be deemed to be
satisfied if the Company timely files complete and accurate information on
Forms 10-Q, 10-K and 8-K under the Exchange Act and otherwise complies with Rule 158
under the Securities Act;

 

(x)            if requested by
the managing underwriter or any seller promptly incorporate in a prospectus
supplement or post-effective amendment or prepare an issuer free writing
prospectus including such information as the managing underwriter or any seller
reasonably requests to be included therein, including, without limitation, with
respect to the Registrable Securities being sold by such seller, the purchase
price being paid therefor by the underwriters and with respect to any other
terms of the underwritten offering of the Registrable Securities to be sold in
such offering, and promptly make all required filings of such prospectus
supplement or post-effective amendment or issuer free writing prospectus;

 

(xi)           as promptly as
practicable after filing with the SEC of any document which is incorporated by
reference into a registration statement (in the form in which it was
incorporated), deliver a copy of each such document to each seller unless
available on the SEC’s Electronic Data Gathering and Retrieval System (EDGAR)
or any successor system;

 

(xii)          cooperate with the sellers and the managing
underwriter to facilitate the timely preparation and delivery of certificates
(which shall not bear any restrictive legends unless required under applicable
law) representing securities sold under any registration statement, and enable
such securities to be in such denominations and registered in such names as the
managing underwriter or such sellers may request and keep available and make
available to the Company’s transfer agent prior to the effectiveness of such
registration statement a supply of such certificates;

 

(xiii)         promptly make available for inspection by any
seller, any underwriter participating in any disposition pursuant to any
registration statement, and any attorney, 

 

12

 

accountant or other agent or representative retained by any such seller
or underwriter (collectively, the “Inspectors”),
all financial and other records, pertinent corporate documents and properties
of the Company, as shall be reasonably necessary to enable them to exercise
their due diligence responsibility, and cause the Company’s officers, directors
and employees to supply all information requested by any such Inspector in
connection with such registration statement;

 

(xiv)        furnish to each seller and underwriter a signed
counterpart of (A) an opinion or opinions of counsel to the Company, and (B) a
comfort letter or comfort letters from the Company’s independent registered
public accountants, each in customary form and covering such matters of the
type customarily covered by opinions or comfort letters, as the case may be, as
the sellers or managing underwriter reasonably requests (each such opinion and
comfort letter to be addressed to both the seller and underwriter, if
reasonably possible);

 

(xv)         use its reasonable best efforts to cause the
Registrable Securities included in any registration statement to be listed on
each securities exchange, if any, on which similar securities issued by the
Company are then listed;

 

(xvi)        provide a transfer agent and registrar for all
Registrable Securities registered hereunder;

 

(xvii)       cooperate with each seller and each underwriter
participating in the disposition of such Registrable Securities and their
respective counsel in connection with any filings required to be made with the
Financial Industry Regulatory Authority;

 

(xviii)      during the period when the prospectus is required to
be delivered under the Securities Act, promptly file all documents required to
be filed with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of
the Exchange Act;

 

(xix)         notify each seller of Registrable Securities
promptly of any request by the SEC for the amending or supplementing of such
registration statement or prospectus or for additional information;

 

(xx)          enter into such agreements (including underwriting
agreements in the managing underwriter’s customary form) as are customary in
connection with an underwritten registration; and

 

(xxi)         advise each seller of such Registrable Securities,
promptly after it shall receive notice or obtain knowledge thereof, of the
issuance of any stop order by the SEC suspending the effectiveness of such
registration statement or the initiation or threatening of any proceeding for
such purpose and promptly use its reasonable best efforts to prevent the
issuance of any stop order or to obtain its withdrawal at the earliest possible
moment if such stop order should be issued.

 

2.6.          Suspension of Dispositions.  Each
Holder agrees by acquisition of any Registrable Securities that, upon receipt
of any notice (a “Suspension
Notice”) from the Company of the 

 

13

 

happening of any event of
the kind described in Section 2.5(vi)(C) such Holder will
forthwith discontinue disposition of Registrable Securities until such Holder’s
receipt of the copies of the supplemented or amended prospectus, or until it is
advised in writing (the “Advice”) by
the Company that the use of the prospectus may be resumed, and has received
copies of any additional or supplemental filings which are incorporated by
reference in the prospectus, and, if so directed by the Company, such Holder
will deliver to the Company all copies, other than permanent file copies then
in such Holder’s possession, of the prospectus covering such Registrable
Securities current at the time of receipt of such notice (any such period
during which disposition of Registrable Securities is suspended, a “Suspension  Period”);
provided, however, that the Company may only exercise its rights
under this Section 2.6, considered together with any Blackout
Period, for no more than one hundred and twenty (120) days in the aggregate
during any calendar year.  In the event the Company shall give any such
notice, the time period regarding the effectiveness of registration statements
set forth in Sections 2.5(ii) and 2.5(iii) hereof shall
be extended by the number of days during the period from and including the date
of the giving of the Suspension Notice to and including the date when each
seller of Registrable Securities covered by such registration statement shall
have received the copies of the supplemented or amended prospectus or the
Advice.  The Company shall use its reasonable best efforts and take such
actions as are reasonably necessary to render the Advice as promptly as
practicable.

 

2.7.          Registration Expenses.

 

2.7.1        Demand Registrations.  All reasonable, out-of-pocket fees and
expenses incident to any Demand Registration including, without limitation, the
Company’s performance of or compliance with this Article 2, all
registration and filing fees, all fees and expenses associated with filings
required to be made with the Financial Industry Regulatory Authority (“FINRA”), as may be required by the rules and
regulations of the FINRA, fees and expenses of compliance with securities or
“blue sky” laws (including reasonable fees and disbursements of counsel in
connection with “blue sky” qualifications of the Registrable Securities),
rating agency fees, printing expenses (including expenses of printing
certificates for the Registrable Securities in a form eligible for deposit with
the Depository Trust Company and of printing prospectuses if the printing of
prospectuses is requested by a Holder of Registrable Securities), messenger and
delivery expenses, the fees and expenses incurred in connection with any
listing or quotation of the Registrable Securities, fees and expenses of
counsel for the Company and its independent certified public accountants
(including the expenses of any special audit or “cold comfort” letters required
by or incident to such performance), and the fees and expenses of any special
experts, including mining experts, retained by the Company in connection with
such registration will be borne by RTEA and/or KMS and the Company such that
RTEA and/or KMS will bear seventy-five percent (75%) and the Company will bear
twenty-five percent (25%) of such fees and expenses; provided, however,
that any underwriting discounts, commissions or fees attributable to the sale
of the Registrable Securities will be borne by RTEA and/or KMS.

 

2.7.2        Piggyback Registrations.  All fees and expenses incident to any
Piggyback Registration including, without limitation, the Company’s performance
of or compliance with this Article 2, all registration and filing
fees, all fees and expenses associated with filings required to be made with the
FINRA, as may be required by the rules and regulations of the FINRA, fees
and expenses of compliance with securities or “blue sky” laws (including 

 

14

 

reasonable fees and disbursements of counsel in connection
with “blue sky” qualifications of the Registrable Securities), rating agency
fees, printing expenses (including expenses of printing certificates for the
Registrable Securities in a form eligible for deposit with the Depository Trust
Company and of printing prospectuses), messenger and delivery expenses, the
fees and expenses incurred in connection with any listing or quotation of the
Registrable Securities, fees and expenses of counsel for the Company and its
independent certified public accountants (including the expenses of any special
audit or “cold comfort” letters required by or incident to such performance),
the fees and expenses of any special experts, including mining experts,
retained by the Company in connection with such registration, and the fees and
expenses of other persons retained by the Company, will be borne by the Company
(unless paid by a security holder that is not a Holder for whose account the
registration is being effected) whether or not any registration statement
becomes effective; provided, however, that any underwriting
discounts, commissions or fees attributable to the sale of the Registrable
Securities will be borne by the Holders pro rata on the basis of the number of
shares so sold.

 

2.8.          Indemnification.

 

2.8.1        CPE
LLC will indemnify and hold harmless each seller of Registrable Securities and,
in the case of an underwritten offering, each underwriter, their respective
partners, members, directors, officers, affiliates and each person, if any, who
controls such seller or underwriter, as applicable, within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act against any losses, claims, damages or
liabilities, joint or several, to which such seller may become subject, under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
any registration statement, prospectus, preliminary prospectus or any issuer
free writing prospectus, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, and will reimburse such seller for
any legal or other expenses reasonably incurred by such seller in connection
with investigating or defending any loss, claim, damage, liability, action,
litigation, investigation or proceeding whatsoever (whether or not such seller
is a party thereto), whether threatened or commenced, and in connection with
the enforcement of this provision with respect to any of the above as such
expenses are incurred; provided, however,
that CPE LLC will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement in or omission or alleged omission from
any of such documents in reliance upon and in conformity with written
information furnished to the Company by any such seller specifically for use
therein; provided, the liability of each such seller of
Registrable Securities will be in proportion to, and will be limited to, the
net amount received by such seller from the sale of Registrable Securities
pursuant to such registration statement; provided, however, that
such seller of Registrable Securities shall not be liable in any such case to
the extent that prior to the filing of any such registration statement or
prospectus or amendment thereof or supplement thereto, such seller has
furnished in writing to the Company information expressly for use in such
registration statement or prospectus or any amendment thereof or supplement
thereto which corrected or made not misleading information previously furnished
to the Company.

 

15

 

Insofar as the foregoing
indemnity agreement may permit indemnification for liabilities under the
Securities Act of any person who is an underwriter or a partner or controlling
person of an underwriter within the meaning of Section 15 of the
Securities Act and who, at the date of this Agreement, is a director, officer
or controlling person of the Company or CPE LLC, CPE LLC has been advised that
in the opinion of the SEC such provisions may contravene federal public policy
as expressed in the Securities Act and may therefore be unenforceable.  In the event that a claim for indemnification
under such agreement for any such liabilities (except insofar as such agreement
provides for the payment by CPE LLC of expenses incurred or paid by a director,
officer or controlling person in the successful defense of any action, suit or
proceeding) is asserted by such a person, CPE LLC will submit to a court of appropriate
jurisdiction (unless in the opinion of counsel for CPE LLC the matter has
already been settled by controlling precedent) the question of whether or not
indemnification by it for such liabilities is against public policy as
expressed in the Securities Act and therefore unenforceable, and CPE LLC will
be governed by the final adjudication of such issue.

 

2.8.2       Each seller of
Registrable Securities will severally and not jointly indemnify and hold
harmless the Company, each of its directors and each of its officers who signs
a Registration Statement and each person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act against any losses, claims, damages or liabilities to which
such indemnified party may become subject, under the Securities Act, the
Exchange Act, or other federal or state statutory law or regulation or
otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in any registration
statement, prospectus, preliminary prospectus or any issuer free writing
prospectus or arise out of or are based upon the omission or the alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading, in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with written
information furnished to the Company by such seller specifically for use
therein, and will reimburse any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending against
any such loss, claim, damage, liability, action, litigation, investigation or proceeding
whatsoever (whether or not such indemnified party is a party thereto), whether
threatened or commenced, based upon any such untrue statement or omission, or
any such alleged untrue statement or omission as such expenses are incurred.

 

2.8.3       Promptly after
receipt by an indemnified party under this Section 2.8 of notice of
the commencement of any action, such indemnified party will, if a claim in
respect thereof is to be made against an indemnifying party under Section 2.8.1
or Section 2.8.2 above, notify the indemnifying party of the
commencement thereof; but the failure to
notify the indemnifying party shall not relieve it from any liability that it
may have under Section 2.8.1 or Section 2.8.2
above except to the extent that it has
been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided further that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have to
an indemnified party otherwise than under Section 2.8.1 or Section 2.8.2
above.  In case any such action is
brought against any indemnified party and it notifies an indemnifying party of
the commencement thereof, the indemnifying party will be entitled to
participate therein and, to the 

 

16

 

extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not, except
with the consent of the indemnified party, be counsel to the indemnifying
party), and after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, the indemnifying party will
not be liable to such indemnified party under this Section 2.8 for
any legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of
investigation.  No indemnifying party
shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party unless such settlement (i) includes
an unconditional release of such indemnified party from all liability on any
claims that are the subject matter of such action and (ii) does not
include a statement as to, or an admission of, fault, culpability or a failure
to act by or on behalf of an indemnified party.

 

2.8.4        If the
indemnification provided for in this Section 2.8 is unavailable or
insufficient to hold harmless an indemnified party under Section 2.8.1
or Section 2.8.2 above although applicable in accordance with its
terms, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities referred to in Section 2.8.1 or Section 2.8.2
above (i) in such proportion as is appropriate to reflect the relative
fault of the indemnifying party on the one hand and the indemnified party on
the other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities or (ii) if the allocation provided
by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative faults referred to in clause
(i) above but also the relative benefits received by the indemnifying
party on the one hand and the indemnified party on the other as well as any
other relevant equitable considerations. In connection with any registration
statement filed with the SEC by the Company, the relative fault shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by such indemnifying
party or indemnified party and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such untrue statement or
omission.  The relative benefits received
by the indemnifying party on the one hand and the indemnified party on the
other shall be deemed to be in the same proportion as the total net proceeds
from the offering of securities registered thereunder (before deducting
expenses) received by the indemnifying party bear to the aggregate public
offering price of the securities registered thereunder. The amount paid by an
indemnified party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of this Section 2.8.4 shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any action or
claim which is the subject of this Section 2.8.4. 
Notwithstanding the provisions of this Section 2.8.4, no Holder
shall be required to contribute an amount greater than the dollar amount by
which the net proceeds received by such Holder with respect to the sale of any
Registrable Securities exceeds the amount of damages which such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Holders’ obligations in this Section 

 

17

 

2.8.4 to contribute shall be
several in proportion to the amount of Registrable Securities registered by
them and not joint.

 

If
indemnification is available under this Section 2.8, the
indemnifying parties shall indemnify each indemnified party to the full extent
provided in Section 2.8.1 and Section 2.8.2 without
regard to the relative fault of said indemnifying party or indemnified party or
any other equitable consideration provided for in this Section 2.8.4
subject, in the case of the Holders, to the limited dollar amounts set forth in
Section 2.8.2.

 

2.8.5        The indemnification and
contribution provided for under this Agreement will remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified
party or any officer, director, or controlling Person of such indemnified party
and will survive the transfer of securities.

 

2.8.6        Any indemnification
obligation of CPE LLC arising under this Section 2.8 will be
calculated and payable in accordance with Section 6.1 of the Master
Separation Agreement, dated November 19, 2009, among the Company, CPE LLC,
RTA, RTEA, KMS and the other parties thereto (the “Master
Separation Agreement”).

 

2.9.          Transfer of Registration Rights.  Any of the rights and obligations of RTA,
RTEA or KMS or any Holder under this Agreement may be assigned, in the
discretion of RTA, RTEA or KMS or any such Holder, without the consent of the
Company, to any Person (i) to whom RTEA or KMS or any Holder sells,
exchanges or otherwise transfers Registrable Securities or Membership Units and
(ii) who agrees in writing to be subject to and bound by all the terms and
conditions of this Agreement; provided, however, that the
obligations of RTEA and KMS pursuant to Section 2.7.1 may be
assigned only with the Company’s consent.

 

2.10.        Rule 144.  The Company will file the reports required to
be filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder (or, if the Company is not required
to file such reports, will, upon the request of the Holders, make publicly
available other information) and will take such further action as the Holders
may reasonably request, all to the extent required from time to time to enable
the Holders to sell the Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by (i) Rule 144
under the Securities Act, as such rule may be amended from time to time or
(ii) any similar rule or regulation hereafter adopted by the
SEC.  Upon the reasonable request of any
Holder, the Company will deliver to such parties a written statement as to
whether it has complied with such requirements and will, at its expense,
forthwith upon the request of any such Holder, deliver to such Holder a
certificate, signed by the Company’s principal financial officer, stating (a) the
Company’s name, address and telephone number (including area code), (b) the
Company’s Internal Revenue Service identification number, (c) the
Company’s SEC file number, (d) the number of shares of each class of
capital stock outstanding as shown by the most recent report or statement
published by the Company, and (e) whether the Company has filed the
reports required to be filed under the Exchange Act for a period of at least
ninety (90) days prior to the date of such certificate and in addition has
filed the most recent annual report required to be filed thereunder.

 

18

 

2.11.        Preservation of Rights.  The
Company will not (i) grant any registration rights to third parties which
are more favorable than or inconsistent with the rights granted hereunder or (ii) enter
into any agreement, take any action, or permit any change to occur, with
respect to its securities that violates or subordinates the rights expressly
granted to the Holders in this Agreement.

 

ARTICLE 3

MISCELLANEOUS

 

3.1.          Notices.  Any notice, instruction, direction or demand
required under the terms of this Agreement shall be in writing and shall be
duly given upon delivery, if delivered by hand, facsimile transmission or mail
(with postage prepaid), to the following addresses:

 

If
to the Company or CPE LLC, to:

 

Cloud Peak Energy Inc.

General Counsel

505 S. Gillette Avenue

Gillette, Wyoming 82716

(307) 687-6000

Fax: (307) 687-6059

 

If
RTA, RTEA or KMS, to:

 

Rio Tinto America Inc.

Legal Department

4700 Daybreak Parkway

South Jordan, Utah 84095

(801) 204-2000

Fax: (801) 204-2892

 

With a copy to (which shall not constitute notice):

 

Chief Executive Officer

4700 Daybreak Parkway

South Jordan, Utah 84095

(801) 204-2000

Fax: (801) 204-2892

 

or
to such other addresses or telecopy numbers as may be specified by like notice
to the other parties.

 

19

 

If
to any other Holder, the address indicated for such Holder in the Company’s
stock transfer records with copies, so long as RTEA or KMS owns any Registrable
Securities or Membership Units, to RTA as provided above.

 

Any
notice or communication hereunder shall be deemed to have been given or made as
of the date so delivered if personally delivered; when answered back, if
telexed; when receipt is acknowledged, if telecopied; and five (5) calendar
days after mailing if sent by registered or certified mail (except that a
notice of change of address shall not be deemed to have been given until
actually received by the addressee).

 

Failure
to mail a notice or communication to a Holder or any defect in it shall not
affect its sufficiency with respect to other Holders.  If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

 

3.2.          Authority.  Each of the parties hereto represents on
behalf of itself as follows: (i) it has the requisite corporate or other
power and authority and has taken all corporate or other action necessary in
order to execute, deliver and perform this Agreement and to consummate the
transactions contemplated hereby, (ii) this Agreement has been duly
executed and delivered by it and constitutes a valid and binding agreement of
it enforceable in accordance with the terms hereof.

 

3.3.          Governing Law.

 

3.3.1        This Agreement is to be
construed in accordance with and governed by the internal laws of the State of
New York without giving effect to any choice of law rule that would cause
the application of the laws of any jurisdiction other than the internal laws of
the State of New York to the rights and duties of the parties.

 

3.3.2        Each party hereby
irrevocably and unconditionally consents to submit to the sole and exclusive
jurisdiction of the United States District Court for the Southern District of
New York or, if such court does not have jurisdiction, the Supreme Court of the
State of New York sitting in New York County (the “New York
Courts”) for any legal action or other legal proceeding arising
out of or relating to this Agreement, or the negotiation, validity or
performance of this Agreement, or the transactions contemplated thereby (and
agrees not to commence any legal action or other legal proceeding relating
thereto except in such courts), including to enforce any settlement, order or
award.  Each party hereto:

 

(i)            consents to service of
process in any such proceeding in any manner permitted by the laws of the State
of New York, and agrees that service of process by registered or certified
mail, return receipt requested, at its address specified pursuant to Section 3.1
is reasonably calculated to give actual notice;

 

(ii)           agrees that the New York
Courts shall be deemed to be a convenient forum; and

 

(iii)          waives and agrees not to
assert (by way of motion, as a defense or otherwise), in any such legal
proceeding commenced in the New York Courts that such party is 

 

20

 

not subject personally to the jurisdiction of such
court, that such legal proceeding has been brought in an inconvenient forum,
that the venue of such proceeding is improper or that this Agreement or the
subject matter hereof or thereof may not be enforced in or by such court.

 

3.3.3        In the event of any action
or other proceeding relating to this Agreement or the enforcement of any
provision of this Agreement, the prevailing party (as determined by the court)
shall be entitled to payment by the non-prevailing party of all costs and expenses
(including reasonable attorneys’ fees) incurred by the prevailing party,
including any costs and expenses incurred in connection with any challenge to
the jurisdiction or the convenience or propriety of venue of proceedings before
the New York Courts.

 

3.3.4        Each of the parties hereto
hereby waives to the fullest extent permitted by applicable law any right it
may have to a trial by jury with respect to any legal action or other legal
proceeding directly or indirectly arising out of, under or in connection with
this Agreement or the transactions contemplated hereby.  Each of the parties hereto (a) certifies
that no representative, agent or attorney of any other party has represented,
expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce that foregoing waiver and (b) acknowledges
that it and the other parties hereto have been induced to enter into this
Agreement and the transactions contemplated by this Agreement, as applicable,
by, among other things, the mutual waivers set forth in this Section 3.3.4.

 

3.4.          Successors and Assigns.  Except
as otherwise expressly provided herein, this Agreement shall be binding upon
and benefit the Company, each Holder, and their respective successors and
assigns.

 

3.5.          Severability.  If any terms or other provision of this
Agreement shall be determined by a court, administrative agency or arbitrator
to be invalid, illegal or unenforceable, such invalidity, illegality or
unenforceability shall not render the entire Agreement invalid. Rather, this
Agreement shall be construed as if not containing the particular invalid,
illegal or unenforceable provision, and all other provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to either party. Upon such determination that any
term or other provision is invalid, illegal or unenforceable, the parties shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner to the end
that the transactions contemplated hereby are fulfilled to the fullest extent
permitted under applicable law.

 

3.6.          Remedies.  Any dispute, controversy or claim arising out
of, or relating to, the transactions contemplated by this Agreement, or the
validity, interpretation, breach or termination of any provision of this
Agreement shall be resolved in accordance with Section 9.10 of the
Master Separation Agreement.

 

3.7.          Waivers.  A provision of this Agreement may be waived
only by a writing signed by the party or parties intended to be bound by the
waiver.  A Holder may waive a provision
of this Agreement that relates exclusively to their rights, remedies or
conditions under this Agreement that does not affect, directly or indirectly,
the rights of other Holders.  The Holders
of the majority of the then outstanding Registrable Securities may waive any
provision of this 

 

21

 

Agreement so long as any Holder that does not
approve of such waiver is not affected by such waiver in a manner materially
worse than the approving Holders. A party is not prevented from enforcing any
right, remedy or condition in the party’s favor because of any failure or delay
in exercising any right or remedy or in requiring satisfaction of any
condition, except to the extent that the party specifically waives the same in
writing.  A written waiver given for one
matter or occasion is effective only in that instance and only for the purpose
stated.  A waiver once given is not to be
construed as a waiver for any other matter or occasion.  Any enumeration of a party’s rights and
remedies in this Agreement is not intended to be exclusive, and a party’s
rights and remedies are intended to be cumulative to the extent permitted by
law and include any rights and remedies authorized in law or in equity.

 

3.8.          Amendment.  This Agreement may not be amended or modified
in any respect except by a written agreement signed by the Company, CPE LLC,
RTEA (so long as RTEA owns any Registrable Securities or Membership Units), KMS
(so long as KMS owns any Registrable Securities or Membership Units) and the
Holders of a majority of the then outstanding Registrable Securities.

 

3.9.          Counterparts.  This Agreement may be executed in separate
counterparts, each of which shall be deemed an original and all of which, when
taken together, shall constitute one and the same agreement.  This Agreement may be executed by facsimile
signature.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

22

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first written above.

 

 

	
   

  	
  CLOUD PEAK ENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Colin Marshall

  
	
   

  	
  Name:
  Colin Marshall

  
	
   

  	
  Title:
  President and CEO

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CLOUD
  PEAK ENERGY RESOURCES LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Barrett

  
	
   

  	
  Name:
  Michael Barrett

  
	
   

  	
  Title:
  CFO

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RIO TINTO AMERICA INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James P. Berson

  
	
   

  	
  Name:
  James P. Berson

  
	
   

  	
  Title:
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RIO TINTO ENERGY AMERICA INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James P. Berson

  
	
   

  	
  Name:
  James P. Berson

  
	
   

  	
  Title:
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KENNECOTT MANAGEMENT SERVICES COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James P. Berson

  
	
   

  	
  Name:
  James P. Berson

  
	
   

  	
  Title:
  Authorized Agent

  

 

[Signature page for Registration Rights Agreement (Equity)]

 

23Exhibit
10.4

 

EXECUTION COPY

 

EMPLOYEE MATTERS AGREEMENT

 

THIS
EMPLOYEE MATTERS AGREEMENT (this “Agreement”) is made and entered into
as of November 19, 2009 by and among CLOUD PEAK ENERGY RESOURCES LLC (“CPE
LLC”), a Delaware limited liability company, CLOUD PEAK ENERGY SERVICES
COMPANY, a Delaware corporation
(“CPESC”, and together with CPE LLC and their respective subsidiaries,
the “CPE GROUP”), CLOUD PEAK ENERGY INC., a Delaware corporation (“CPE”),  RIO
TINTO AMERICA INC, a Delaware corporation (“RTA”), and RIO TINTO
ENERGY AMERICA INC., a Delaware corporation (“RTEA”) (RTA and RTEA, each
a “Company” and collectively, the “Companies”) and, solely for
purposes of Section 3.2 of this Agreement, RIO TINTO PLC, a corporation incorporated in England and
Wales (“RIO”) and  RIO TINTO LIMITED  (“RIO LTD”), an Australian
corporation.  CPE LLC, CPESC,
CPE, each Company, RIO and RIO LTD are sometimes referred to herein separately
as a “Party” and together as the “Parties.”

 

RECITALS

 

WHEREAS, as contemplated by the terms of the Limited Liability Company
Operating Agreement of CPE LLC dated as of 
, 2009 (the “LLC Agreement”), the Companies, CPE, CPESC and the
members of the CPE Group have approved this Agreement; and

 

WHEREAS, the Parties have agreed to enter into this Agreement to allocate
between them assets, liabilities and responsibilities with respect to certain
employee compensation, benefit plans and programs, and certain employment
matters with respect to their employees.

 

NOW, THEREFORE,  in
consideration of the covenants and agreements contained herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

 

1.           Definitions.

 

The following terms shall have the indicated meaning:

 

“Affiliate”
means with respect to a Person, any other Person that directly, or indirectly
through one or more intermediaries, controls, is controlled by, or is under
common control with, such Person. As used in this definition, the word
“control” means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.  For purposes of clarity, neither CPE nor any
member of the CPE Group shall be considered an Affiliate of any of the
Companies and none of the Companies or RIO or RIO LTD shall be considered an
Affiliate of CPE or any member of the CPE Group.

 

“Agreement” is defined in the introductory paragraph.

 

“Benefit Plans” means, 
with respect to an entity, any “employee pension benefit plan” (as
defined in Section 3(2) of ERISA), “employee welfare benefit plan”
(as defined in Section 3(1) of ERISA) and any other plan or
arrangement of any kind, whether qualified or non-qualified, 

 

 

relating to stock
options, incentive compensation, bonus, profit sharing, retirement, pension,
deferred compensation, severance benefits, leave of absence, vacation, life,
health, accident, disability, sick pay, workers’ compensation or other insurance
severance, separation, fringe or any other benefits.

 

“COBRA” means the continuation coverage requirements for group
health plans under Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Common Stock” means the common stock,
$0.01 par value per share, of CPE.

 

“Companies” is defined in the introductory paragraph.

 

“CPE” is defined in the introductory paragraph.

 

“CPE Group” is defined in the introductory paragraph.

 

“CPE LLC” is defined in the introductory paragraph.

 

“CPESC” is defined in the introductory paragraph.

 

“Effective Date” means the date on which the
Underwriting Agreement is executed and delivered by each of the Parties
thereto.

 

“Employment Related Obligations” means all claims, liabilities
and obligations, whether contingent or otherwise, fixed or absolute, known or
unknown, present or future or otherwise, arising from an employment
relationship or an alleged employment relationship relating to the Executive
Employees and the Transferred Employees, including compensation for services
(and related employment and withholding taxes), workers’ compensation or
similar benefits and payments on account of occupational illnesses and
injuries, provision of leave under the Family and Medical Leave Act or similar
Law, and claims, liabilities and obligations arising out of any such Executive
Employee’s or Transferred Employee’s employment, terms of employment,
transfers, compensation, termination of employment, harassment or employee
benefits.

 

“ERISA” means the Employee Retirement Income Security Act of
1974, as amended.

 

“ERISA Affiliate” means, with respect to any Person, each
business or entity that is a member of a “controlled group of corporations,” under
“common control” or a member of the “affiliate service group” with such Person
within the meaning of Section 414(b), (c) or (m) of the Code or
required to be aggregated with such Person under Section 414(o) of
the Code or under “common control” with such Person within the meaning of Section 4001(a)(14)
of ERISA.

 

“Executive Employees” is defined in Section 2.1(a).

 

“FSA Cost Invoice” is defined in Section 4.11.

 

“Health and Welfare Plans” is defined in Section 4.1.

 

“Health Plan Continuation Period” is defined in Section 4.1.

 

“Health Plan Cost Invoice” is defined in Section 4.3.

 

 

“HIPAA” shall mean the Health Insurance Portability and
Accountability Act of 1996, as amended.

 

“Initial Public Offering” means the
initial public offering registered under the Securities Act of the Common
Stock.

 

“Law” or “Laws” means all applicable federal, state,
tribal and local laws (statutory or common), rules, ordinances, regulations,
grants, concessions, franchises, licenses, orders, directives, judgments,
decrees, restrictions and other similar requirements, whether legislative,
municipal, administrative or judicial in nature.

 

“LLC Agreement” is defined in the Recitals.

 

“Option One Benefits” is defined in Section 4.9.

 

“Person” means an individual, corporation, joint venture,
partnership, limited partnership, limited liability company, trust, estate,
business trust, association, governmental authority or any other entity.

 

“RIO” is defined in the introductory paragraph.

 

“RIO LTD” is defined in the introductory paragraph.

 

“Rio Tinto Equity Compensation Plans” means the (i) Rio
Tinto plc Share Option Plan 2004, (ii) Rio Tinto Limited Share Option Plan
2004, (iii) Rio Tinto plc Management Share Plan 2007, (iv) Rio Tinto
Limited Management Share Plan 2007, (v) Rio Tinto plc Mining Companies
Comparative Plan 2004, (vi) Rio Tinto Limited Mining Companies Comparative
Plan 2004, (vii) Rio Tinto plc Share Savings Plan, (viii) Rio Tinto
Bonus Deferral Plan 2008, and (ix) Rio Tinto Share Savings Plan.

 

“Rio Tinto Non-Equity Incentive Compensation Plans” means the (i) Rio
Tinto Short Term Incentive Plan, (ii) Rio Tinto Energy America Quarterly
Incentive Plan and  (iii) Rio Tinto Energy America Retention
Bonus.

 

“RTA” is defined in the introductory paragraph.

 

“RTA Flex Plans” is defined in Section 4.10.

 

“RTA Pension Plan” means the Rio Tinto America, Inc. Retirement
Plan.

 

“RTA’s Retiree Benefits” means those benefits provided to
eligible retirees under the Rio Tinto America Inc. Health and Welfare Plan in
effect from time to time.

 

“RTA Savings Plan” means the Rio Tinto America, Inc. 401(k) Savings
Plan and Investment Partnership Plan.

 

“Rio Tinto SERP” means the
Rio Tinto America Inc. Supplemental
Executive Retirement Plan.

 

“Rio Tinto NQ Saving Plan” means the Non-Qualified 401(k) component
of the Rio Tinto America Inc. Executive Deferred Compensation Plan.

 

 

“Rio Tinto NQIPP” means the Non-Qualified Investment Partnership
Plan component of the Rio Tinto America Inc. Executive Deferred Compensation
Plan.

 

“RTEA” is defined in the introductory paragraph.

 

“Senior Executives” shall mean the chief executive officer
of CPE and any individual employed by any of the Companies, CPESC, RIO or RIO
LTD prior to the Effective Date that becomes an officer of CPE or any member of
the CPE Group reporting directly to the chief executive officer of CPE.

 

“Transferred Employees” means (i) those employees of the
Companies and their Affiliates listed on Exhibit A
and identified as Transferred Employees who accept offers of employment from
any member of the CPE Group as of or prior to the Effective Date; provided any
such employee on long-term disability pursuant to any of the Benefit Plans of
Rio Tinto shall not become a Transferred Employee and (ii) those
individuals employed by any entity that is or becomes a member of the CPE Group
as of the Effective Date.

 

“Underwriting Agreement” means the underwriting agreement
entered into among CPE and the several underwriters of the Initial Public
Offering.

 

2.           Employment and Employee
Benefits.

 

2.1.          Employment;
Cooperation.

 

(a)           Effective
as of the Effective Date, CPE shall assume or retain, as applicable,
responsibility as employer for those employees of the Companies and their
Affiliates listed on Exhibit B
and identified as Executive Employees who accept offers of employment from CPE
as of or prior to the Effective Date (the “Executive Employees”) and the
applicable member of the CPE Group shall assume or retain, as
applicable, responsibility as employer of the Transferred Employees; provided
that nothing contained herein shall be construed to limit the ability of the
CPE Group, CPE or the Companies or any of their respective subsidiaries to
terminate the employment of any of their employees at any time and for any or
no reason.  Other than with respect to
the Rio Tinto Equity Compensation Plans, the assumption or retention of
responsibility as employer described in this Section 2.1(a) shall
not, of itself, constitute a severance or a termination of employment under any
plan of severance or of income extension maintained by the Companies, and no
such severance, separation or termination shall be deemed to occur.  The CPE Group shall indemnify the Companies
and hold the Companies harmless from and against any damages, liabilities,
costs or expenses which may be incurred or suffered by any of the Companies
relating to, or arising from, any individual listed on Exhibit A
or Exhibit B becoming entitled to
separation pay, benefit continuation or eligibility for enhanced retirement
benefits (other than as provided in Section 5.2) on or after the Effective
Date by reason of (i) the transfer of employment from any of the Companies
to CPE or any member of the CPE Group, (ii) any termination of employment
arising from the failure of any such individual to accept an offer of
employment with CPE or any member of the CPE Group or (iii) any
termination of employment of an such individual that has become an Executive
Employee or a Transferred Employee occurring after the Effective Date.

 

 

(b)           To the maximum extent permitted under applicable
Law, the Companies, the CPE Group and CPE shall share and shall cause each of
their respective Affiliates to share, with each other and their respective
agents and vendors all participant information reasonably necessary for the
efficient and accurate administration of each of the Benefit Plans of the
Companies and the CPE Group.  The
Companies, the CPE Group, CPE and their respective authorized agents shall,
subject to applicable Law on confidentiality, be given reasonable and timely
access to, and may make copies of, all information relating to the subjects of
this Agreement in the custody or control of the other parties, to the extent
necessary for such administration.  To
the extent a party requests information pursuant to this section that cannot be
shared lawfully, the parties will cooperate, to the extent practical and
reasonable, to offer assistance to the other.

 

(c)           Except as otherwise explicitly provided herein,
effective as of the Effective Date, the Companies shall be responsible for, and
do hereby, for themselves, and will cause each of their Affiliates and
subsidiaries to, and their respective successors and assigns to, relinquish,
release, forever discharge and indemnify and hold harmless CPE and the CPE
Group and each member of the CPE Group’s respective Affiliates, subsidiaries,
assigns, current and former directors, officers, employees, agents and
representatives (including, without limitation, any such person who may have
served on the investment committee for the RTA Savings Plan) to the same extent
such indemnification is provided to current directors, officers, employees,
agents and representatives of the Companies, in each case, from (i) all
Employment Related Obligations arising prior to the Effective Date, and whether
arising under any contract or agreement, by operation of law or otherwise,
existing or arising from any acts or events occurring or failing to occur or
alleged to have occurred or to have failed to occur or any conditions existing
or alleged to have existed before the Effective Date and (ii) any damages,
costs, expenses, losses or liabilities to the extent arising from, relating to
or otherwise in respect of any third party claims relating to any investment
vehicle under the RTA Savings Plan.

 

(d)           Except as otherwise explicitly provided herein,
effective as of the Effective Date, the members of the CPE Group shall be
responsible for, and do hereby, for themselves, and will cause each of their
Affiliates and subsidiaries to, and their respective successors and assigns to,
relinquish, release, forever discharge and indemnify and hold harmless the
Companies and each of their respective Affiliates, subsidiaries, assigns,
current and former directors, officers, employees, agents and representatives
to the same extent such indemnification is provided to directors, officers,
employees, agents and representatives of the CPE Group, in each case, from all
Employment Related Obligations arising on or after the Effective Date and
whether arising under any contract or agreement, by operation of law or
otherwise, existing or arising from any acts or events occurring or failing to
occur or alleged to have occurred or to have failed to occur or any conditions
existing or alleged to have existed on or after the Effective Date.

 

(e)           The Companies shall indemnify CPE and the CPE Group
and hold CPE and the CPE Group harmless from and against any damages, liabilities,
costs or expenses which may be incurred or suffered by CPE or any member of the
CPE Group as a result of any such entity being held jointly and/or severally
liable, on, before or after the Effective Date by reason 

 

 

of being considered to have been an ERISA Affiliate
of any of the Companies, RIO or RIO LTD, and each of their Affiliates and
subsidiaries before the Effective Date.

 

(f)            The CPE Group shall reimburse RIO or RIO LTD for any
reasonable, fees, direct costs and expenses associated with immigration and tax
services actually incurred by such entities after the Effective Date as result
of any of the Executive Employees or Transferred Employees being assigned by
RIO or RIO LTD to the Companies. 
Notwithstanding anything in Section 6 to the contrary, RIO and RIO
LTD shall be considered 3rd party beneficiaries to this Section 2.1(f).

 

3.             Incentive Plans.

 

3.1.        Non-Equity Incentive Plans.  Executive Employees and Transferred Employees
who participated in Rio Tinto’s Non-Equity Incentive Compensation Plans shall
receive the full amount of their bonus under such plans for the performance
period in which the Effective Date occurs to the extent that the objectives
established under such plans are satisfied at the end of the relevant
performance period, as determined by the applicable Company in accordance with
past practice and the terms and conditions of the applicable Rio Tinto
Non-Equity Incentive Compensation Plans (the “Bonus Amount”).  The Companies shall be liable for the portion
of the Bonus Amount equal to the number of days in the performance period prior
to the Effective Date divided by the number of days in the performance period
and the CPE Group (or CPE) shall be liable for the portion of the Bonus Amount
equal to the number of days in the performance period on and after the
Effective Date divided by the number of days in the performance period.  At the same time that payments are made to
all other participants in such Rio Tinto Non-Equity Incentive Compensation
Plans, the Companies shall provide funds to the CPE Group equal to the
Companies pro rata share of the Bonus Amount as determined pursuant to the preceding
sentence and the CPE Group (or CPE) shall make the payments to Executive
Employees and Transferred Employees. 
Notwithstanding anything in this Section 3.1 to the contrary, with
respect to any discretion under the terms of the Rio Tinto Non-Equity Incentive
Compensation Plans that may be exercised under the terms of the Rio Tinto
Non-Equity Incentive Compensation Plans by the Companies, such discretion with
respect to the Bonus Amounts for Senior Executives will be exercised by the
Companies prior to the Effective Date but otherwise in accordance with past
practice and the terms and conditions of the applicable Rio Tinto Non-Equity
Incentive Compensation Plans.  Prior to
the Effective Date, the Companies shall inform the CPE Group of its decision
and the CPE Group shall, prior to the Effective Date, inform the Senior
Executives that such decision has been made which, for the avoidance of doubt,
is to make clear that no discretionary action by the Companies taken after the
Effective Date will have an impact on the Bonus Amount for the Senior
Executives.

 

3.2.        Equity Incentive Plans.  RIO and RIO LTD hereby agree that, for
purposes of the Rio Tinto Equity Compensation Plans, each Executive Employee
and Transferred Employee shall be deemed to have terminated employment with his
or her respective RTA related employer due to his or her employment company
ceasing to be under the control of the company and such Executive Employee or
Transferred Employee shall be paid out in accordance with the applicable plan
terms.

 

 

4.           Health
and Welfare Benefit Plans.

 

4.1.          Effective no
later than January 1, 2010, the CPE Group (or CPE) shall adopt such health
and welfare plans as it determines for the benefit of the Executive Employees
and the Transferred Employees.  From the
Effective Date until December 31, 2009, or such earlier date that the CPE
Group (or CPE) adopts the health and welfare plans described above, (the “Health
Plan Continuation Period”), the Executive Employees and the Transferred
Employees and, subject to the satisfaction of the applicable eligibility
requirements, any person hired by CPE or the CPE Group during the Health Plan
Continuation Period (and, in each case, their respective beneficiaries and
dependents) will be eligible to continue to participate in the health and
welfare plans of the Companies listed on Exhibit C
(the “Health and Welfare Plans”) on the same terms and conditions of the
applicable Health and Welfare Plan as in effect immediately prior to the
Effective Date.  Prior to the Effective
Date, the Companies, CPE and the CPE Group shall take all commercially
reasonable actions required (including adopting certain amendments of the
Health and Welfare Plans and the approval by the authorized boards or
committees (or authorized officers) of CPE and the members of the CPE Group of
the adoption of the Health and Welfare Plans and the execution of an adoption
agreement effecting such adoption, if requested by the Companies) to provide
that CPE and the members of the CPE Group shall adopt the Health and Welfare
Plans so that CPE and the members of the CPE Group will become participating
employers in the Health and Welfare Plans during the Health Plan Continuation
Period.   During the Health Plan
Continuation Period, CPE and the members of CPE Group shall provide, or cause
to be provided, to the Companies or the administrator, record-keeper or trustee
of the Health and Welfare Plans, all information within its control that is
reasonably required to administer and operate the Health and Welfare Plans with
respect to the Executive Employees and the Transferred Employees during the
Health Plan Continuation Period.

 

4.2.          The Companies
shall be responsible for complying with the health care continuation
requirements of COBRA, the certificate of creditable coverage requirements of
HIPAA, and the corresponding provisions of their Health and Welfare Plans with
respect to Executive Employees and Transferred Employees and their covered
dependents who incur a COBRA qualifying event or loss of coverage under such Health
and Welfare Plans before January 1, 2010, provided, that the CPE Group
shall be responsible for the costs thereof (net of participant contributions
actually paid) with respect to any Executive Employee or Transferred Employee
who incur a qualifying event during the Health Plan Continuation Period.  The CPE Group shall be responsible for
complying with the health care continuation requirements of COBRA, the
certificate of creditable coverage requirements of HIPAA, and the corresponding
provisions of their health and welfare plans with respect to Executive
Employees and Transferred Employees and their covered dependents who incur a
COBRA qualifying event or loss of coverage at any time after January 1,
2010.

 

4.3.          No later than 30 days after
the date on which any invoice (including supporting documentation in reasonable
detail) (a “Health Plan Cost Invoice”) from the Companies or any of the
Health and Welfare Plans has become final and binding as provided below, the
CPE Group shall reimburse the Companies or any of the Health and Welfare Plans,
as applicable, for any reasonable fees and direct costs and expenses actually
incurred by the Companies or any of 

 

 

the Health and Welfare Plans for the
continued administration and operation by the Companies of the Health and
Welfare Plans after the Effective Date with respect to the Executive Employees
and the Transferred Employees (net of participant contributions actually paid),
including any such amounts resulting from a COBRA qualifying event or loss of
coverage affecting an Executive Employee or Transferred Employee during the
Health Plan Continuation Period.  The
Health Plan Cost Invoice shall include any per participant fee charged by the
record-keeper for each participating Executive Employee and Transferred
Employee and any other incremental costs associated with the continued
participation by the Executive Employees and the Transferred Employees in the
Health and Welfare Plans of the Companies after the Effective Date.  The CPE Group shall cooperate with the
Companies in making all filings or reports required under applicable law and in
distributing any employee communications or materials to the Executive
Employees and the Transferred Employees.

 

4.4.          The CPE Group shall
indemnify and hold harmless the Companies and their respective directors,
officers, employees, agents and representatives, and the Health and Welfare
Plans and their fiduciaries, from and against any costs, expenses, losses or
other liabilities (net of participant contributions actually paid) to the
extent arising from, relating to or otherwise in respect of (A) the
participation of the Executive Employees and the Transferred Employees in such
Health and Welfare Plans during the Health and Welfare Plan Continuation
Period, (B) the responsibilities of the Companies to comply with the
health care continuation requirements of COBRA, the certificate of creditable
coverage requirements of HIPAA, and the corresponding provisions of the Health
and Welfare Plans with respect to Executive Employees and Transferred Employees
and their covered dependents who incur a COBRA qualifying event or loss of
coverage after the Effective Date and before January 1, 2010, (C) the
adoption by CPE and the members of the CPE Group of the Health and Welfare
Plans and (D) CPE’s and the members of the CPE Group’s status as
participating employers under such Health and Welfare Plans; provided,
that no indemnification by the CPE Group shall be required, and the Companies
shall indemnify and hold harmless CPE and the CPE Group and their directors,
officers, employees, agents and representatives from and against any such
costs, expenses, losses or other liabilities, to the extent that such costs,
expenses, losses or other liabilities result from the willful misconduct or
material breach of fiduciary duty of any of the Companies, or any of their
respective directors, officers or employees, in the maintenance or
administration of the Health and Welfare Plans.

 

4.5.          Nothing in this Agreement
shall be deemed to limit the Companies’ or the CPE Group’s right to amend and
/or terminate any of the Benefit Plans of the Companies or the Benefit Plans of
the CPE Group, as applicable.

 

4.6.          Effective as of the end of the Health Plan
Continuation Period, the CPE Group shall provide each Executive Employee
and Transferred Employee with credit for all service with the Companies for
vesting and eligibility purposes only under each of its Benefits Plans in which
such Executive Employee or Transferred Employee is eligible to participate,
except to the extent that such service credit would result in a duplication of
benefits with respect to the same period of service with the Companies.  With respect to each Benefit Plan provided by
any member of the CPE Group that is a health and welfare plan, as of the end of
the Health Plan Continuation Period the CPE Group shall (i) waive all
limitations as to preexisting conditions, 

 

 

exclusions and waiting periods with respect
to participation and coverage requirements applicable to the Executive
Employees and Transferred Employees, provided that if such plan is provided
under an insured arrangement, such waiver will occur only to the extent
required by Law or otherwise permitted under the applicable insurance contract
or agreements, and (ii) for the year in which the Health Plan Continuation
Period ends, provide each Executive Employee and Transferred Employee with
credit for any co-payments and deductibles paid prior to the end of the Health
Plan Continuation Period in satisfying any applicable deductible or out-of-pocket
requirements under such group health.

 

4.7.          Except as otherwise provided
in this Agreement, none of the Companies shall have liability under any Health
and Welfare Plan with respect to any claim incurred on or after the Effective
Date in respect of any Executive Employee or Transferred Employee.  Neither CPE nor any member of the CPE Group
shall have any liability under any Health and Welfare Plan for expenses
incurred or services rendered with respect to any claim incurred prior to the
Effective Date in respect of any Executive Employee or Transferred Employee.

 

4.8.          For purposes of this Section 4,
a claim shall be deemed incurred when the event occurs or condition arises
giving rise to the claim which, in the case of claims under medical, dental,
hospitalization and vision benefits, will be deemed to occur when the
applicable expense is incurred or the service provided.

 

4.9.          Effective as of January 1,
2010, the CPE Group shall assume responsibility for operation of the welfare
benefit program consisting of health reimbursement accounts known as “Option
One” arising from benefits originally provided in 2004 and 2005 to Executive
Employees and Transferred Employees (the “Option One Benefits”).  No later than 30 days after the date on which
any invoice (including supporting documentation in reasonable detail) from the
Companies has become final and binding, the CPE Group shall reimburse the
Companies for any reasonable fees and direct costs and expenses actually
incurred by the Companies for the continued administration and operation by the
Companies of the Option One Benefits during the Health Plan Continuation
Period.

 

4.10.        Without limiting the
foregoing, the CPE Group shall immediately, and in any event within ten (10) business
days after receipt by the CPE Group of notice from the Companies of a claim for indemnification hereunder, fully
indemnify the Companies from any claim or demand made after the Effective Date,
or liability assumed hereunder (including all reasonable fees and expenses incurred
by the Companies arising out of or relating to the Option One Benefits)
regardless of when the event giving rise to such claim or demand occurred; provided,
however, that no indemnification by the CPE Group shall be required, to
the extent that such claim was the result of the willful misconduct or material
breach of fiduciary duty of any of the Companies, or any of their respective
directors, officers or employees, in the maintenance or administration of the
Option One Benefits.

 

4.11.        The Companies, CPE and the
members of the CPE Group agree that, as of the Effective Date through the end
of the Health Plan Continuation Period, with respect to any Benefit Plan of the
Companies that has a flexible spending account arrangement, Executive Employees
and Transferred Employee will continue to participate in such Benefit Plans
(the 

 

 

“RTA Flex Plans”).  During the Health Plan Continuation Period,
the CPE Group shall provide, or cause to be provided, to the Companies or the
record-keepers or trustees of the RTA Flex Plans all information within its
control that is reasonably required to administer and operate the RTA Flex
Plans with respect to the Executive Employees and Transferred Employees during
the Health Plan Continuation Period.  No
later than 30 days after the date on which any invoice (including supporting
documentation in reasonable detail) (an “FSA Cost Invoice”) from the
Companies or the record-keepers of the RTA Flex Plans has become final and
binding as provided below, the CPE Group shall reimburse the Companies or the
RTA Flex Plans for any reasonable fees and direct costs and expenses actually
incurred by the Companies or by the RTA Flex Plans for the continued
administration and operation by the Companies of the RTA Flex Plans with
respect to the Executive Employees and the Transferred Employees (net of
participant contributions actually paid), including, any per participant fee
charged by the record-keepers for each participating Executive Employee and
Transferred Employee during the Health Plan Continuation Period and any other
incremental costs directly associated with the continued participation by the
Executive Employees and the Transferred Employees in the RTA Flex Plans during
the Health Plan Continuation Period.  The
CPE Group shall cooperate with the Companies in making all filings or reports
required under the Code or ERISA, including, the Form 5500 for the 2009
plan year, and in distributing any employee communications or materials to the
Executive Employees and the Transferred Employees.  The Companies shall indemnify and hold
harmless the Companies and their respective directors, officers, employees,
agents and representatives, and the RTA Flex Plans and its fiduciaries from and
against any costs, expenses, losses or other liabilities (net of participant
contributions actually paid) to the extent arising from, relating to or
otherwise in respect of (A) the participation of the Executive Employees
and the Transferred Employees in the RTA Flex Plans during the Health Plan
Continuation Period, (B) the adoption by CPE and the members of the CPE
Group of the RTA Flex Plans and (C) CPE’s and the members of the CPE
Group’s status as participating employers under the RTA Flex Plans; provided,
that no indemnification by the CPE Group shall be required, and the Companies
shall indemnify and hold harmless the CPE Group and its directors, officers,
employees, agents and representatives from and against any such costs,
expenses, losses or other liabilities, to the extent that such costs, expenses,
losses or other liabilities result from the willful misconduct or material
breach of fiduciary duty of the Companies, or any of their respective
directors, officers or employees, in the maintenance or administration of the
RTA Flex Plans.

 

4.12.        CPE and the members of the
CPE Group shall cease to be participating employers in the Health and Welfare
Plans, as well as the RTA Flex Plans, on the last day of the Health Plan
Continuation Period.

 

5.           Retirement
Plans.

 

5.1.          All benefits accrued on or before the Effective Date
in respect of all Executive Employees and Transferred Employees who are
participants in the RTA Pension Plan and the Rio Tinto SERP shall be “locked
and frozen” as of the Effective Date and the Companies shall retain sole
liability for the payment of such benefits as and when such participants become
eligible under such plans.  For purposes
of this Section, the term “locked and frozen” means that Executive Employees
and Transferred Employees who are plan participants shall retain their 

 

 

accrued benefits under the RTA Pension Plan and Rio
Tinto SERP as of the Effective Date but no additional benefit accruals with
respect to service on and after the Effective Date will be provided under the
respective plans following the Effective Date. 
No later than the Effective Date, the Companies shall amend the RTA
Pension Plan to ensure that all Executive Employees and Transferred Employees
who are participants in such plans as of the Effective Date shall become fully
vested in their accrued benefits.  Following
the Effective Date the Executive Employees and Transferred Employees who
participate in the cash balance portion of the RTA Pension Plan shall continue
to accrue additional interest credits to their cash balance accounts for
benefit accrual purposes in accordance with the RTA Pension Plan.

 

5.2.          Subject to the right of RTA to amend, modify,
terminate or otherwise change the provisions of the RTA Retiree Benefits in
common with all other affected employees, all Executive Employees and
Transferred Employees who will have had at least 10 years of service with any
of the Companies and have attained at least age 55, in each case, as of the
Effective Date will be treated as if they had retired from the Companies as of
the Effective Date and will be entitled to receive the RTA Retiree
Benefits.  Subject to the right of the
CPE Group to amend, modify, terminate or otherwise change the provisions of its
retiree benefits, the CPE Group will offer retiree health benefits for all
Executive Employees and Transferred Employees from retirement through age
65.  Executive Employees and Transferred
Employees will be granted credit for all service with the Companies for
purposes of eligibility.  At the time of
retirement, and subject to Section 4.2, Executive Employees and
Transferred Employees who satisfy the age and service requirements set forth in
the first sentence of this Section 5.2 with respect to RTA’s Retiree
Benefits will have the option of choosing whether to receive benefits under
RTA’s Retiree Benefits or pursuant to the plan established by the CPE Group
pursuant to this Section 5.2, but may not participate in both plans.

 

5.3.          No later than the Effective Date, RTA shall cause
the RTA Savings Plan,  Rio Tinto NQ
Savings Plan and Rio Tinto NQIPP to be amended, to the extent necessary, in
order to (i) provide that the Executive Employees and Transferred
Employees shall be fully vested in their accounts under such plans and (ii) permit
such individuals to elect to the extent permitted by Law to have their interest
in the RTA Savings Plan, including any participant loan balances, rolled over
to a savings plan established or maintained by the CPE Group at the discretion
of the participant.  As of the Effective
Date, all employee contributions by the Executive Employees and the Transferred
Employees and obligations of any of the Companies to make contributions in
respect of such employees (other than in respect to periods prior to the
Effective Date) under the RTA Savings Plan shall cease.  The Companies will not require any Executive
Employee or Transferred Employees to repay any participant loan balances
earlier than ninety (90) days following the Effective Date if such loan would
not otherwise be payable within such ninety (90) day period.

 

6.             Third-Party
Beneficiaries.  This
Agreement is solely for the benefit of the Parties and their respective
successors and permitted assigns. Nothing in this Agreement, express or
implied, is intended to or shall confer upon any other person or persons
(including any employee or former employee of the Companies, any Executive
Employee or Transferred Employee or any individual that becomes an employee of
the Companies, CPE or the CPE Group on or after the Effective Date, or any of
their respective subsidiaries or Affiliates or any beneficiary or 

 

 

dependent thereof) any rights, benefits or remedies
of any nature whatsoever under or by reason of this Agreement. No provision in
this Agreement shall modify or amend any other agreement, plan, program, or
document unless this Agreement explicitly states that the provision “amends”
that other agreement, plan, program, or document. This shall not prevent the
parties entitled to enforce this Agreement from enforcing any provision in this
Agreement, but no other person shall be entitled to enforce any provision in
this Agreement on the grounds that it is an amendment to another agreement,
plan, program, or document unless the provision is explicitly designated as
such in this Agreement, and the person is otherwise entitled to enforce the other
agreement, plan, program, or document. If a person not entitled to enforce this
Agreement brings a lawsuit or other action to enforce any provision in this
Agreement as an amendment to another agreement, plan, program, or document, and
that provision is construed to be such an amendment despite not being
explicitly designated as one in this Agreement, that provision in this
Agreement shall be void ad initio,
thereby precluding it from having any amendatory effect. Furthermore, nothing
in this Agreement is intended to confer upon any employee or former employee
the Companies, any Executive Employee or Transferred Employee or any individual
that becomes an employee of the Companies, CPE or the CPE Group on or after the
Effective Date, or any of their respective subsidiaries or Affiliates or any
beneficiary or dependent thereof, any right to continued employment, or any
recall or similar rights to an individual on layoff or any type of approved
leave.

 

7.           Miscellaneous.

 

7.1.          Governing Law;
Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)           This Agreement is to be
construed in accordance with and governed by the laws of the State of New York
without giving effect to any choice of law rule that would cause the
application of the laws of any jurisdiction other than the laws of the State of
New York to the rights and duties of the Parties.

 

(b)           Except for any action, suits
or proceedings involving RIO and RIO LTD in which the exclusive jurisdiction
shall be in the United Kingdom, each Party hereby irrevocably and
unconditionally consents to submit to the sole and exclusive jurisdiction of
the United States District Court for the Southern District of New York or, if
such court does not have subject matter jurisdiction, the Supreme Court of the
State of New York sitting in New York County (the “New York Courts”) for
any legal action or other legal proceeding arising out of or relating to this
Agreement, or the negotiation, validity or performance of this Agreement, or
the transactions contemplated thereby (and agrees not to commence any legal
action or other legal proceeding relating thereto except in such courts).  Other than any legal proceedings involving
RIO and RIO LTD (in which the exclusive jurisdiction shall be in the United
Kingdom), each of the Parties hereto agree that:

 

(i)            expressly and irrevocably
consents and submits to the jurisdiction of the New York Courts in connection
with any such legal proceeding, including to enforce any settlement, order or
award;

 

 

(ii)           consents to service of
process in any such proceeding in any manner permitted by the laws of the State
of New York, and also agrees that service of process by registered or certified
mail, return receipt requested, at its address specified pursuant to Section 7.2
is sufficient and reasonably calculated to give actual notice;

 

(iii)          agrees that the New York
Courts shall be deemed to be a convenient forum;

 

(iv)          waives and agrees not to
assert (by way of motion, as a defense or otherwise), in any such legal
proceeding commenced in the New York Courts that such Party is not subject
personally to the jurisdiction of such court, that such legal proceeding has
been brought in an inconvenient forum, that the venue of such proceeding is
improper or that this Agreement or the subject matter hereof or thereof may not
be enforced in or by such court; and

 

(v)           agrees to the entry of an
order to enforce any resolution, settlement, order or award made pursuant to
this Section 7.1 by the New York Courts and in connection therewith
hereby waives, and agrees not to assert by way of motion, as a defense, or
otherwise, any claim that such resolution, settlement, order or award is
inconsistent with or violative of the laws or public
policy of the laws of the State of New York or any other jurisdiction.

 

(c)           In the event of
any action or other proceeding relating to this Agreement or the enforcement of
any provision of this Agreement, the prevailing party (as determined by the
court) shall be entitled to payment by the non-prevailing party of all costs
and expenses (including reasonable attorneys’ fees) incurred by the prevailing
party, including any costs and expenses incurred in connection with any
challenge to the jurisdiction or the convenience or propriety of venue of proceedings
before the New York Courts.

 

(d)           Each of the
Parties hereto hereby waives to the fullest extent permitted by applicable Law
any right it may have to a trial by jury with respect to any legal action or
other legal proceeding directly or indirectly arising out of, under or in
connection with this Agreement or the transactions contemplated hereby or
thereby.  Each of the Parties hereto (a) certifies
that no Representative, agent or attorney of any other Party has represented,
expressly or otherwise, that such other Party would not, in the event of
litigation, seek to enforce that foregoing waiver and (b) acknowledges
that it and the other Parties hereto have been induced to enter into this
Agreement and the transactions contemplated by this Agreement, as applicable,
by, among other things, the mutual waivers set forth in this Section 7.1(d).

 

7.2.          Notices. All notices, demands or other
communications to be given under or by reason of this Agreement shall be in
writing and shall be deemed to have been received when delivered personally, or
when transmitted by overnight delivery service, addressed as follows:

 

If to CPE:

 

Human Resources

Cloud Peak Energy Inc.

 

 

505
S. Gillett Avenue,

Gillette,
Wyoming 82716 

Tel: (307) 687-6000

Fax: (307) 687-6014

 

with
a copy to:

 

General Counsel

Cloud Peak Energy Inc.

505
S. Gillett Avenue,

Gillette,
Wyoming 82716 

Tel: (307) 687-6000

Fax: (307) 687-6059

 

If to CPE LLC or CPESC:

 

Human Resources

Cloud Peak Energy Inc.

505
S. Gillett Avenue,

Gillette,
Wyoming 82716 

Tel: (307) 687-6000

Fax: (307) 687-6014

 

with
a copy to:

 

General Counsel

Cloud Peak Energy Inc.

505
S. Gillett Avenue,

Gillette,
Wyoming 82716 

Tel: (307) 687-6000

Fax: (307) 687-6059

 

If to RIO, RIO LTD
or RTEA:

 

Jane Craighead

Rio Tinto

1188
Sherbrooke Street West, 

Montreal,
Quebec, H3A 3G2, Canada 

Tel: (514) 848-8441

Fax: (514) 848 1530

 

 

with
a copy to:

 

Craig Johnson

Rio Tinto Services Inc.

4700 Daybreak Parkway

South Jordan, UT 84095

Tel:  (801) 204-2803

Fax:  (801) 204-2892

 

Any party hereto
may change its address for notices, demands and other communications under this
Agreement by giving notice of such change to the other parties hereto in
accordance with this Section 7.2.

 

7.3           Amendment. This Agreement may not be
amended, modified, altered or supplemented except by means of a written
instrument executed on behalf of each party hereto.

 

7.4           Waiver. No failure on the part of any party
hereto to exercise any power, right, privilege or remedy under this Agreement,
and no delay on the part of any party hereto in exercising any power, right,
privilege or remedy under this Agreement, shall operate as a waiver thereof;
and no single or partial exercise of any such power, right, privilege or remedy
shall preclude any other or further exercise thereof or of any other power,
right, privilege or remedy.

 

7.5           Severability. If any provision of this Agreement is
held invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or
unenforceable.

 

7.6           Counterparts
and Facsimiles.
This Agreement may be executed in one or more counterparts, all of which shall
be considered one and the same agreement, and shall become effective when one
or more counterparts have been signed by each of the parties and delivered to
the others. The parties hereto may execute the signature pages hereof and
exchange such signature pages by facsimile transmission.

 

7.7           Interpretation
of Agreement.

 

(a)           As
used in this Agreement, the words “include” and “including,” and variations
thereof, shall not be deemed to be terms of limitation, and shall be deemed to
be followed by the words “without limitation.”

 

(b)           Unless
otherwise specified, references in this Agreement to “Sections” are intended to
refer to Sections of this Agreement.

 

(c)           The Section headings contained in this
Agreement are solely for the purpose of reference, are not part of the
agreement of the parties and shall not in any way affect the meaning or
interpretation of this Agreement.

 

 

(d)           Each party hereto and its counsel cooperated in the
drafting and preparation of this Agreement and the documents referred to in
this Agreement. Any rule of Law or any legal decision that would require
interpretation of any ambiguities in this Agreement against the party that
drafted it is of no application and is hereby expressly waived.

 

7.8           Entire
Agreement. This
Agreement sets forth the entire understanding of parties hereto and supersedes
all other agreements and understandings between the parties hereto relating to
the subject matter hereof.

 

[Signature page to follow]

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
on the day and year first above written.

 

	
  CLOUD
  PEAK ENERGY INC.:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Colin Marshall

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  President
  and CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CLOUD
  PEAK ENERGY RESOURCES LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Colin Marshall

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  President
  and CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RIO TINTO AMERICA INC:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  James P. Berson

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  Authorized
  Agent

  	
   

  

 

 

	
  CLOUD
  PEAK ENERGY SERVICES COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Michael Barrett

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  CFO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RIO TINTO ENERGY AMERICA INC.:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  James P. Berson

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  Authorized
  Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Solely
  for purposes of Section 3.2,

  	
   

  
	
   

  	
   

  	
   

  
	
  RIO
  TINTO PLC:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  James P. Berson

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  Attorney-in-Fact

  	
   

  

 

 

	
  Solely
  for purposes of Section 3.2,

  	
   

  
	
   

  	
   

  	
   

  
	
  RIO
  TINTO LTD:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  James P. Berson

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  Attorney-in-Fact

  	
   

  

 

[Signature page of Employee
Matters Agreement]

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