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      Exhibit 4.1    
    

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE 

  NUMBER                                       
                                          
                                       SHARES 
 
  

     SEE REVERSE SIDE FOR

CERTAIN DEFINITIONS  

CLOUD PEAK ENERGY INC.  

TOTAL AUTHORIZED ISSUE

200,000,000 SHARES PAR VALUE $0.01 EACH

COMMON STOCK  

 

 

			
	
This is to Certify
that                                    	
 	
 is the owner of                        
(                        )
	 fully paid and non-assessable shares of the above Corporation transferable only on the books of the Corporation by the holder hereof in person or by duly authorized Attorney upon surrender of this Certificate properly
endorsed.

 

 Witness, the seal of the Corporation and the signatures of its duly authorized officers.

Dated:                                    ,
20            

 

 

					
	                   	 	 	 	 
	

  CHIEF EXECUTIVE OFFICER	 	 	 	

  CHIEF FINANCIAL OFFICER              
 

 

 

        The following abbreviations, when used in the inscription on the face of this certificate, shall be construed
as though they were written out in full according to applicable laws or regulations: 

 

 

							
	TEN COM	 	— as tenants in common	 	UNIF GIFT MIN ACT   —	 	Custodian______ Custodian______
	TEN ENT	 	— as tenants by the entireties	 	 	 	                (Cust)
                    (Minor)
	JT TEN	 	— as joint tenants with right of	 	 	 	under Uniform Gifts to Minors
	 	 	survivorship and not as tenants	 	 	 	Act _________________
	 	 	in common	 	 	 	                  (State)
	

 	
 	
     Additional abbreviations may also be used though not in the above list.

 

 For value received               hereby sell, assign and
transfer
unto                                        
              

For value received             hereby sell, assign and transfer
unto                                        
     

			
	
 PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE
	

  	 	 
	

 	
 	

 
	

  	 	 

                                        
                                          
                                         
                                          
                                          
                                 
 

                                (PLEASE PRINT OR TYPEWRITE NAME AND
ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE) 

                                        
                                          
                                         
                                          
                                          
                                 
 

                                        
                                          
                                         
                                          
                                          
                                 
 

                                        
                                          
                                         
                                          
                           
Shares

represented by the within Certificate, and do hereby irrevocably constitute and
appoint                                        
                       Attorney to

transfer the said Shares on the books of the within named Corporation with full power of substitution in the premises.

Dated                                      ,
20             

In presence
of                                         
                                         
                                          
         

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND

WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE

IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT

OR ANY CHANGE WHATEVER. 

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  Exhibit 4.2    
    

  

Cloud Peak Energy Resources LLC

and

Cloud Peak Energy Finance Corp.

as Issuers  

 the Guarantors party hereto  

 and  

 Wilmington Trust Company

as Trustee  

 and  

 Citibank, N.A.

as Registrar, Paying Agent and Authentication Agent  

 

Indenture  

 Dated as of November     , 2009  

  

[2016 RATE]% Senior Notes due 2016

[2019 RATE]% Senior Notes due 2019  

  

  

 

 CROSS-REFERENCE TABLE  

 

 

					
	TIA Sections

 
	 	Indenture Sections 
	§ 310	 	(a)	 	7.10
	 	 	(b)	 	7.03, 7.08
	§ 311	 	7.03
	§ 311	 	(b)(4)	 	7.03
	 	 	(b)(6)	 	7.03
	§312	 	(a)	 	11.02
	 	 	(b)	 	11.02
	§ 313	 	(a)	 	7.06
	 	 	(c)	 	7.05, 7.06
	 	 	(d)	 	7.06
	§ 314	 	(a)	 	4.16
	§ 315	 	(a)	 	7.02
	 	 	(b)	 	7.02, 7.05
	 	 	(c)	 	7.02
	 	 	(d)	 	7.02
	§ 316	 	(c)	 	11.02

 

 i

 
 

  TABLE OF CONTENTS    
    

 

 

			
	 
	 	Page 
	  ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

	 SECTION 1.01. Definitions
	 	

1
	 Section 1.02. Rules of Construction
	 	26
	  ARTICLE 2

THE NOTES

	 Section 2.01. Form, Dating and Denominations; Legends
	 	

26
	 Section 2.02. Execution and Authentication; Exchange Notes; Additional Notes
	 	27
	 Section 2.03. Registrar, Paying Agent and Authenticating Agent; Paying Agent to Hold Money in
Trust
	 	28
	 Section 2.04. Replacement Notes
	 	28
	 Section 2.05. Outstanding Notes
	 	28
	 Section 2.06. Temporary Notes
	 	29
	 Section 2.07. Cancellation
	 	29
	 Section 2.08. CUSIP and CINS Numbers
	 	29
	 Section 2.09. Registration, Transfer and Exchange
	 	29
	 Section 2.10. Restrictions on Transfer and Exchange
	 	32
	 Section 2.11. Temporary Offshore Global Notes
	 	33
	  ARTICLE 3

REDEMPTION; OFFER TO PURCHASE

	 Section 3.01. Optional Redemption
	 	

34
	 Section 3.02. Method and Effect of Redemption
	 	34
	 Section 3.03. Offer to Purchase
	 	34
	

 ARTICLE 4

COVENANTS

	 Section 4.01. Payment Of Notes
	 	

36
	 Section 4.02. Maintenance of Office or Agency
	 	37
	 Section 4.03. Existence
	 	37
	 Section 4.04. Payment of Taxes and other Claims
	 	37
	 Section 4.05. Maintenance of Properties and Insurance
	 	37
	 Section 4.06. Limitation on Debt and Disqualified Stock or Preferred Stock
	 	38
	 Section 4.07. Limitation on Restricted Payments
	 	40
	 Section 4.08. Limitation on Liens
	 	43
	 Section 4.09. Limitation on Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries
	 	44
	 Section 4.10. Note Guaranties by Restricted Subsidiaries
	 	45
	 Section 4.11. Repurchase of Notes upon a Change of Control
	 	45
	 Section 4.12. Limitation on Asset Sales
	 	46
	 Section 4.13. Limitation on Transactions with Affiliates
	 	47
	 Section 4.14. Limitation on Business of the Co-Issuer
	 	48
	 Section 4.15. Designation of Restricted and Unrestricted Subsidiaries
	 	48
	 Section 4.16. Financial Reports
	 	50
	 Section 4.17. Reports to Trustee
	 	50
	 Section 4.18. Suspension of Covenants
	 	51
	

 ARTICLE 5

CONSOLIDATION, MERGER OR SALE OF ASSETS

	 Section 5.01. Consolidation, Merger or Sale of Assets by the Company
	 	

51

 

 

 
 

 

			
	 
	 	Page 
	 Section 5.02. Consolidation, Merger or Sale of Assets by the Co-Issuer
	 	52
	 Section 5.03. Consolidation, Merger or Sale of Assets by a Guarantor
	 	52
	

 ARTICLE 6

DEFAULT AND REMEDIES

	 Section 6.01. Events of Default
	 	

53
	 Section 6.02. Acceleration
	 	54
	 Section 6.03. Other Remedies
	 	55
	 Section 6.04. Waiver of Past Defaults
	 	55
	 Section 6.05. Control by Majority
	 	55
	 Section 6.06. Limitation on Suits
	 	55
	 Section 6.07. Rights of Holders to Receive Payment
	 	55
	 Section 6.08. Collection Suit by Trustee
	 	55
	 Section 6.09. Trustee May File Proofs of Claim
	 	56
	 Section 6.10. Priorities
	 	56
	 Section 6.11. Restoration of Rights and Remedies
	 	56
	 Section 6.12. Undertaking for Costs
	 	56
	 Section 6.13. Rights and Remedies Cumulative
	 	56
	 Section 6.14. Delay or Omission Not Waiver
	 	57
	 Section 6.15. Waiver of Stay, Extension or Usury Laws
	 	57
	

 ARTICLE 7

THE TRUSTEE

	 Section 7.01. General
	 	

57
	 Section 7.02. Certain Rights of Trustee
	 	57
	 Section 7.03. Individual Rights of Trustee
	 	58
	 Section 7.04. Trustee's Disclaimer
	 	58
	 Section 7.05. Notice of Default
	 	58
	 Section 7.06. Reports by Trustee to Holders
	 	59
	 Section 7.07. Compensation And Indemnity
	 	59
	 Section 7.08. Replacement of Trustee
	 	59
	 Section 7.09. Successor Trustee by Merger
	 	60
	 Section 7.10. Eligibility
	 	60
	 Section 7.11. Money Held in Trust
	 	60
	

 ARTICLE 8

DEFEASANCE AND DISCHARGE

	 Section 8.01. Discharge of Issuers' Obligations
	 	

60
	 Section 8.02. Legal Defeasance
	 	61
	 Section 8.03. Covenant Defeasance
	 	62
	 Section 8.04. Application of Trust Money
	 	62
	 Section 8.05. Repayment to Issuers
	 	62
	 Section 8.06. Reinstatement
	 	62
	

 ARTICLE 9

AMENDMENTS AND WAIVERS

	 Section 9.01. Amendments Without Consent of Holders
	 	

63
	 Section 9.02. Amendments With Consent of Holders
	 	63
	 Section 9.03. Effect of Consent
	 	64
	 Section 9.04. Trustee's Rights and Obligations
	 	64

 

 ii

 
 

 

			
	 
	 	Page 
	 Section 9.05. Conformity With Trust Indenture Act
	 	64
	 Section 9.06. Payments for Consents
	 	64
	

 ARTICLE 10

GUARANTIES

	 Section 10.01. The Guaranties
	 	

65
	 Section 10.02. Guaranty Unconditional
	 	65
	 Section 10.03. Discharge; Reinstatement
	 	65
	 Section 10.04. Waiver by the Guarantors
	 	65
	 Section 10.05. Subrogation and Contribution
	 	65
	 Section 10.06. Stay of Acceleration
	 	66
	 Section 10.07. Limitation on Amount of Guaranty
	 	66
	 Section 10.08. Execution and Delivery of Guaranty
	 	66
	 Section 10.09. Release of Guaranty
	 	66
	

 ARTICLE 11

MISCELLANEOUS

	 Section 11.01. Trust Indenture Act of 1939
	 	

67
	 Section 11.02. Noteholder Communications; Noteholder Actions
	 	67
	 Section 11.03. Notices
	 	67
	 Section 11.04. Certificate and Opinion as to Conditions Precedent
	 	68
	 Section 11.05. Statements Required in Certificate or Opinion
	 	68
	 Section 11.06. Payment Date Other Than a Business Day
	 	68
	 Section 11.07. Governing Law
	 	69
	 Section 11.08. No Adverse Interpretation of Other Agreements
	 	69
	 Section 11.09. Successors
	 	69
	 Section 11.10. Duplicate Originals
	 	69
	 Section 11.11. Separability
	 	69
	 Section 11.12. Table of Contents and Headings
	 	69
	 Section 11.13. No Liability of Directors, Officers, Employees, Incorporators, Members and
Stockholders
	 	69

 

  

 

 

			
	EXHIBITS	 	 
	EXHIBIT A-1	 	 Form of 2016 Note
	EXHIBIT A-2	 	 Form of 2019 Note
	EXHIBIT B	 	 Form of Supplemental Indenture
	EXHIBIT C	 	 Restricted Legend
	EXHIBIT D	 	 DTC Legend
	EXHIBIT E	 	 Regulation S Certificate
	EXHIBIT F	 	 Rule 144A Certificate
	EXHIBIT G	 	 Institutional Accredited Investor Certificate
	EXHIBIT H	 	 Certificate of Beneficial Ownership
	EXHIBIT I	 	 Temporary Offshore Global Note Legend

 

 iii

 

 

        INDENTURE, dated as of November [AS OF DATE], 2009, among Cloud Peak Energy Resources LLC, a Delaware limited liability company, as the Company,
Cloud Peak Energy Finance Corp., a Delaware corporation, as the Co-Issuer, and together with the Company, the Issuers, the Guarantors party hereto and Wilmington Trust Company, a national
banking association, as Trustee and Citibank, N.A., a national banking association, as Registrar, Paying Agent and Authentication Agent. 

 RECITALS  

        The Issuers have duly authorized the execution and delivery of the Indenture to provide for the issuance of up to $[2016
AMOUNT] aggregate principal amount of the Issuers' [2016 RATE]% Senior Notes Due 2016 (the "2016 Notes") and up to
$[2019 AMOUNT] aggregate principal amount of the Issuers' [2019 RATE]% Senior Notes Due 2019 (the "2019
Notes"), and, if and when issued, any Additional Notes of either series, together with any Exchange Notes issued therefor as provided herein (collectively with the 2016 Notes
and the 2019 Notes, the "Notes"). All things necessary to make the Indenture a valid agreement of the Issuers, in accordance with its terms, have been
done, and the Issuers have done all things necessary to make the Notes (in the case of the Additional Notes, when duly authorized), when executed by the Issuers and authenticated and delivered by the
Trustee and duly issued by the Issuers, the valid obligations of the Issuers as hereinafter provided. 

        In
addition, the Guarantors party hereto have duly authorized the execution and delivery of the Indenture as guarantors of the Notes. All things necessary to make the Indenture a valid
agreement of each Guarantor, in accordance with its terms, has been done, and each Guarantor has done all things necessary to make the Note Guarantees, when the Notes are executed by the Issuers and
authenticated and delivered by the Trustee and duly issued by the Issuers, the valid obligations of such Guarantor as hereinafter provided. 

        This
Indenture is subject to, and will be governed by, the provisions of the Trust Indenture Act that are required to be a part of and govern indentures qualified under the Trust
Indenture Act. 

 THIS INDENTURE WITNESSETH  

        For and in consideration of the premises and the purchase of the Notes by the Holders thereof, the parties hereto covenant and agree,
for the equal and proportionate benefit of all Holders, as follows: 

 
 

ARTICLE 1
DEFINITIONS AND INCORPORATION BY REFERENCE

        Section 1.01.    Definitions.    

        "Acquired Debt" means Debt of a Person existing at the time the Person is acquired by, or merges with or into, the Company or any
Restricted Subsidiary or becomes a Restricted Subsidiary; provided that such Debt is not Incurred in connection with, or in contemplation of, the Person
being acquired by or merging with or into or becoming a Restricted Subsidiary. 

        "Acquisition" means, with respect to any Person (the "acquiror"), any direct or indirect
acquisition by such acquiror of all or substantially all of the Equity Interests in another Person, all or substantially all of the coal or other mineral reserves of such other Person or any other
assets or business of any other Person constituting a business unit, line of business or division of such other Person. 

        "Acquisition Agreement" means the Acquisition Agreement between Holdings and Parent to be entered into on or prior to the Issue Date. 

        "Additional Assets" means all or substantially all of the assets of a Permitted Business, or Voting Stock of another Person engaged in a
Permitted Business that will, on the date of acquisition, be a 

1

 

Restricted
Subsidiary, or other assets (other than cash and Cash Equivalents or securities (including Equity Interests)) that are to be used in a Permitted Business. 

        "Adjustable Asset" means the RTEA Units and any asset other than cash owned by the Company, either directly or indirectly through one or
more entities that are treated as partnerships or that are disregarded for U.S. federal income tax purposes. 

        "Additional Interest" means additional interest owed to the Holders of Notes of a series pursuant to a Registration Rights Agreement. 

        "Additional Notes" means any notes issued under the Indenture in addition to the Original Notes of a series, including any Exchange Notes
issued in exchange for such Additional Notes, having the same terms in all respects as the Original Notes of a series except that interest will accrue on the Additional Notes from their date of
issuance. 

        "Affiliate" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries
controls or is controlled by or is under common control with, such specified Person. For purposes of this definition, "control" means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise (provided that the Parent and its Affiliates (other than
Holdings and its Subsidiaries) shall not be deemed to control the Company solely as a result of the rights and obligations under the Transaction Documents), and a Person shall be presumed to "control"
another Person if (A) the first Person either (i) is the beneficial owner, directly or indirectly, of 35% or more of the total voting power of the Voting Stock of such specified Person
or (ii) (x) is the beneficial owner, directly or indirectly, of 10% or more of the total voting power of the Voting Stock of such specified Person and (y) has the right to appoint
or nominate, or has an officer or director that is, at least one member of the Board of Directors of such specified Person, or (B) if the specified Person is a limited liability company, the
first Person is the managing member. "Controlled" has a meaning correlative thereto. 

        "Agent" means any Registrar, Paying Agent or Authenticating Agent. 

        "Agent Member" means a member of, or a participant in, the Depositary. 

        "Applicable Premium" means with respect to any Note on any redemption date the greater of (i) 1.0% of the principal amount of such
Note and (ii) the excess (if any) of (a) the present value at such redemption date of (1) the redemption price of such Note at December 15, 2013, in the case of the 2016
Notes, and December 15, 2014, in the case of the 2019 Notes, each as set forth under Section 3.01 plus (2) all required interest payments due on such Note from the redemption date
through December 15, 2013, in the case of the 2016 Notes, and December 15, 2014, in the case of the 2019 Notes, (in each case excluding accrued but unpaid interest to the redemption
date), computed using a discount rate equal to the Treasury Rate on such redemption date plus 50 basis points over (b) the principal amount of such Note. 

        "Asset Sale" means any sale, lease (other than operating leases or capital leases entered into in the ordinary course of a mining
business) , transfer or other disposition of any assets by the Company or any Restricted Subsidiary outside of the ordinary course of business, including by means of a merger, consolidation or similar
transaction and including any sale or issuance of the Equity Interests of any Restricted Subsidiary (each of the above referred to as a "disposition"),  provided that the following are not included in
the definition of "Asset Sale": 

        (1)   a
disposition to the Company or a Restricted Subsidiary, including the sale or issuance by the Company or any Restricted Subsidiary of any Equity Interests of any
Restricted Subsidiary to the Company or any Restricted Subsidiary; 

2

 

        (2)   the
sale or discount of accounts receivable arising in the ordinary course of business in connection with the compromise or collection thereof, and dispositions of
Receivables and related assets by a Securitization Subsidiary in connection with a Permitted Receivables Financing; 

        (3)   a
transaction covered by Section 5.01; 

        (4)   a
Restricted Payment permitted under Section 4.07 or a Permitted Investment; 

        (5)   any
transfer of property or assets that consists of grants by the Company or its Restricted Subsidiaries in the ordinary course of business of licenses or
sub-licenses, including with respect to intellectual property rights; 

        (6)   the
sale of Capital Stock of an Unrestricted Subsidiary; 

        (7)   the
sale of assets by the Company and its Restricted Subsidiaries consisting of leases and subleases of real property solely to the extent that such real property is not
necessary for the normal conduct of operations of the Company and its Restricted Subsidiaries; 

        (8)   foreclosure
of assets of the Company or any of its Restricted Subsidiaries to the extent not constituting a Default; 

        (9)   the
sale or other disposition of cash or Cash Equivalents; 

        (10) the
unwinding of any Hedging Agreements; 

        (11) the
surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other claims of any kind; 

        (12) the
issuance of Disqualified Stock or Preferred Stock pursuant to Section 4.06; 

        (13) (a)
the sale of damaged, obsolete, unusable or worn out equipment or equipment that is no longer needed in the conduct of the business of the Company and its Restricted
Subsidiaries and (b) sales of inventory, used or surplus equipment or reserves and dispositions related to the burn-off of mines; 

        (14) any
disposition in a transaction or series of related transactions of assets with a fair market value of less than $5.0 million; 

        (15) dispositions
of assets by virtue of an asset exchange or swap with a third party in any transaction (x) with an aggregate fair market value less than or equal to
$12.5 million, (y) involving a coal-for-coal swap or (z) consisting of a coal swap involving any Real Property; 

        (16) exchanges
and relocation of easements for pipelines, oil and gas infrastructure and similar arrangements in the ordinary course of business; and 

        (17) disposition
of assets related to Jacobs Ranch or the sale thereof required pursuant to the Master Separation Agreement and the Membership Interest Purchase Agreement. 

If,
in connection with an acquisition by the Company or any Restricted Subsidiary, a portion of the acquired assets are disposed of within 90 days of such acquisition, such disposition shall
not be deemed to be an Asset Sale; provided that such assets are disposed of for Fair Market Value. 

        "Attributable Indebtedness" means, at any date, in respect of Capital Leases of any Person, the capitalized amount thereof that would
appear on a balance sheet of such Person prepared in accordance with GAAP. 

        "Authenticating Agent" refers to a Person engaged to authenticate the Notes in the stead of the Trustee. 

3

 

        "Average Life" means, as of the date of determination with respect to any Debt, the quotient obtained by dividing (i) the sum of
the products of (x) the number of years from the date of determination to the dates of each successive scheduled principal payment of such Debt and (y) the amount of such principal
payment by (ii) the sum of all such principal payments. 

        "bankruptcy default" has the meaning assigned to such term in Section 6.01. 

        "Basis Adjustment" means the adjustment to the tax basis of an Adjustable Asset under any provision of the Code, including
Section 732 of the Code (in situations where, as a result of one or more Exchanges, the Company becomes an entity that is disregarded as separate from its owner for tax purposes),
Section 1012 of the Code, or Sections 743(b) and 754 of the Code (in situations where, following an Exchange, the Company remains in existence as an entity for tax purposes) as a result,
in each case, of an Exchange and the payments made pursuant to the Tax Receivable Agreement. The amount of any Basis Adjustment resulting from an Exchange of one or more RTEA Units shall be determined
without regard to any Pre-Exchange Transfer of such RTEA Units and as if any such Pre-Exchange Transfer had not occurred. 

        "Board of Directors" means: 

        (1)   with
respect to the Company, its board of members or, if the Company does not have a board of members, the board of directors of Holdings; 

        (2)   with
respect to Holdings, the board of directors of Holdings; and 

        (3)   with
respect to any other Person, (i) if the Person is a corporation, the board of directors of the corporation, (ii) if the Person is a partnership, the
Board of Directors of the general partner of the partnership and (iii) with respect to any other Person, the board or committee of such Person serving a similar function. 

        "Board Resolution" means a resolution duly adopted by the Board of Directors which is certified by the Secretary or an Assistant Secretary
of the Company and remains in full force and effect as of the date of its certification. 

        "Business Day" means any day except a Saturday, Sunday or other day on which commercial banks in New York City or in the city where the
Corporate Trust Office of the Trustee is located are authorized by law to close. 

        "Capital Lease" means, with respect to any Person, any lease of any property which, in conformity with GAAP, is required to be capitalized
on the balance sheet of such Person. 

        "Capital Stock" means 

        (1)   in
the case of a corporation, corporate stock; 

        (2)   in
the case of an association or business entity, any and all shares, interests, participations rights or other equivalents (however designated) of corporate stock; 

        (3)   in
the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and 

        (4)   any
other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing
Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock. 

        "Cash Equivalents" means 

        (1)   United
States dollars, or money in other currencies, 

4

 

        (2)   U.S.
Government Obligations or certificates representing an ownership interest in U.S. Government Obligations with maturities not exceeding one year from the date of
acquisition, 

        (3)   (i)
demand deposits, (ii) time deposits and certificates of deposit with maturities of one year or less from the date of acquisition, (iii) bankers'
acceptances with maturities not exceeding one year from the date of acquisition, and (iv) overnight bank deposits, in each case with any bank or trust company organized or licensed under the
laws of the United States or any state thereof (including any branch of a foreign bank licensed under any such laws) having capital, surplus and undivided profits in excess of $250 million (or
the foreign currency equivalent thereof) whose short-term debt is rated "A-2" or higher by S&P or "P-2" or higher by Moody's, 

        (4)   commercial
paper maturing within 364 days from the date of acquisition thereof and having, at such date of acquisition, ratings of at least A-1 by S&P
or P-1 by Moody's, 

        (5)   readily
marketable direct obligations issued by any state, commonwealth or territory of the U.S. or any political subdivision thereof, in each case rated at least
A-1 by S&P or P-1 by Moody's with maturities not exceeding one year from the date of acquisition; 

        (6)   investment
funds at least 95% of the assets of which consist of investments of the type described in clauses (1) through (5) above; 

        (7)   fully
collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (2) above and entered into with a
financial institution satisfying the criteria described in clause (3) above; and 

        (8)   in
the case of a Foreign Restricted Subsidiary, substantially similar investments, of comparable credit quality, denominated in the currency of any jurisdiction in which
such person conducts business. 

        "Certificate of Beneficial Ownership" means a certificate substantially in the form of Exhibit H. 

        "Certificated Note" means a Note in registered individual form without interest coupons. 

        "Change of Control" means: 

        (1)   Permitted
Holders (other than Holdings) are or become the "beneficial owners" (as such term is used in Rule 13d-3 under the Exchange Act), directly or
indirectly, of more than 65% of the total voting power of the Voting Stock of Holdings or the Company; 

        (2)   any
"person" or "group" (as such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act), other than Permitted Holders, is or becomes the
"beneficial owner" (as such term is used in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of Holdings or
the Company; 

        (3)   individuals
who on the Issue Date constituted the Board of Directors of the Company or Holdings, together with any new directors whose election by the Board of Directors
or whose nomination for election by the stockholders of the Company or Holdings was approved by a majority of the directors then still in office who were either directors or whose election or
nomination for election was previously so approved, cease for any reason to constitute a majority of the Board of Directors of the Company or Holdings then in office; 

        (4)   Holdings
ceases to be the managing member of the Company; or 

        (5)   the
adoption of a plan relating to the liquidation or dissolution of Holdings or the Company. 

        "Code" means the Internal Revenue Code of 1986, as amended from time to time. 

5

 

        "Co-Issuer" means the party named as such in the first paragraph of the Indenture or any successor obligor under the Indenture
and the Notes pursuant to Section 5.02. 

        "Commission" means the Securities and Exchange Commission. 

        "common equity", when used with respect to a contribution of capital to the Company, means a capital contribution to the Company in a
manner that does not constitute Disqualified Equity Interests. 

        "Common Stock" means Capital Stock not entitled to any preference on dividends or distributions, upon liquidation or otherwise. 

        "Company" means the party named as such in the first paragraph of the Indenture or any successor obligor under the Indenture and the Notes
pursuant to Section 5.01. 

        "Consolidated Current Liabilities" means, as of any date of determination, the aggregate amount of liabilities of the Company and its
consolidated Restricted Subsidiaries which may properly be classified as current liabilities (including taxes accrued as estimated, but excluding Specified Coal Agreement Obligations), after
eliminating (a) all intercompany items between the Company and any Restricted Subsidiary or between Restricted Subsidiaries and (b) all current maturities of long-term Debt. 

        "Consolidated Net Income" means, for any period (i) the aggregate net income (or loss) of the Company and its Restricted
Subsidiaries for such period determined on a consolidated basis in conformity with GAAP, minus (but without duplication) (ii) (a) for any
period in which the Company is a pass-through entity for purposes of U.S. federal taxes, any Permitted Tax Distributions made with respect to such period and (b) any payments made
under clause (b)(9)(iii) under Section 4.07, provided that the following (without duplication) will be excluded in computing Consolidated
Net Income: 

        (1)   the
net income (or loss) of any Person that is a non Wholly-Owned Restricted Subsidiary (including any joint venture that is a Restricted Subsidiary), except to the
extent of the Company's share,
determined pro rata with its percentage interest (direct or indirect) of common stock of such Person, of such Person's net income earned during such period; 

        (2)   the
net income (or loss) of any Person other than a Restricted Subsidiary (including any joint venture that is not a Restricted Subsidiary), except to the extent of
dividends or other distributions actually paid in cash to the Company or any of its Restricted Subsidiaries by such Person during such period; 

        (3)   the
net income (or loss) of any Person (other than the Company and the Guarantors) to the extent that the declaration or payment of dividends or similar distributions by
such Person of its net income is not at the date of determination permitted without any prior governmental approval (which has not been obtained) or, directly or indirectly, by the operation of the
terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule, or governmental regulation applicable to that Person or its stockholders, unless such restriction with
respect to the payment of dividends or in similar distributions has been legally waived; 

        (4)   any
net after-tax (provided that, for any period in which the Company is a pass-through entity for purposes of U.S. federal taxes, net of the
amount included in a Permitted Tax Distribution made with respect thereto) gains or losses (less all fees and expenses or charges relating thereto) attributable to asset sales or other dispositions,
in each case other than in the ordinary course of business; 

        (5)   any
net after-tax (provided that, for any period in which the Company is a pass-through entity for purposes of U.S. federal taxes, net of the
amount included in a Permitted Tax Distribution made with respect thereto) extraordinary gains or losses; and 

        (6)   the
cumulative effect of a change in accounting principles. 

6

 

        "Consolidated Net Tangible Assets" means, as of any date of determination, (a) the sum of all amounts that would, in accordance
with GAAP, be set forth opposite the caption "total assets" (or any like caption) on a consolidated balance sheet of the Company and its Restricted Subsidiaries  minus (b) the sum of all amounts
that would, in accordance with GAAP, be set forth opposite the captions "goodwill" or other intangible
categories (or any like caption) on a consolidated balance sheet of the Company and its Restricted Subsidiaries minus (c) Consolidated Current
Liabilities, all determined as of such date and after giving pro forma effect to any transactions occurring on such date. 

        "Corporate Trust Office" means the office of the Trustee at which the corporate trust business of the Trustee is principally administered,
which at the date of the Indenture is located at [CORPORATE TRUST OFFICE]. 

        "Credit Agreement" means the credit agreement dated on or about the Issue Date among the Company, the lenders party thereto and Morgan
Stanley Senior Funding, Inc., as administrative agent, together with any related documents (including any security documents and guarantee agreements), as such agreement may be amended,
restated, modified, supplemented, extended, renewed, refunded, restructured, refinanced or replaced or substituted from time to time and whether by the same or any other agent, lender or group of
lenders or other party. 

        "Credit Facilities" means (i) one or more credit facilities (including the Credit Agreement) with banks or other lenders providing
for revolving credit loans, term loans, receivables financing (including a Permitted Receivables Financing through the sale of receivables to lenders or to special purpose entities formed to borrow
from lenders against such receivables) or the issuance of letters of credit or bankers' acceptances or the like, (ii) debt securities, indentures or other forms of debt financing (including
convertible or exchangeable debt instruments), or (iii) instruments or agreements evidencing any other Debt, in each case, with the same or different borrowers or issuers and, in each case, as
amended, restated, modified, supplemented, extended, renewed, refunded, restructured, refinanced or replaced or substituted in whole or in part from time to time and whether by the same or any other
agent, lender or group of lenders or other party. 

        "Debt" means, with respect to any Person, without duplication, 

        (1)   all
indebtedness of such Person for borrowed money; 

        (2)   all
obligations of such Person evidenced by bonds, debentures, notes or other similar instruments (other than any obligations in respect of performance bonds, bid bonds,
appeal bonds, surety bonds, reclamation bonds and completion guarantees and similar obligations in respect of Specified Coal Agreements or under any Mining Law or Environmental Law or with respect to
workers' compensation benefits); 

        (3)   all
obligations of such Person in respect of letters of credit, bankers' acceptances or other similar instruments (solely to the extent such letters of credit, bankers'
acceptances or other similar instruments have been drawn); 

        (4)   all
obligations of such Person to pay the deferred and unpaid purchase price of property or services provided by third-party service providers which are recorded as
liabilities under GAAP, excluding
(i) trade payables arising in the ordinary course of business, (ii) inter-company payables, (iii) working capital-based and other customary post-closing adjustments in
acquisition transactions and (iv) salary and other employee compensation obligations incurred in the ordinary course; 

        (5)   the
Attributable Indebtedness of such Person in respect of Capital Leases; 

        (6)   the
amount of all Permitted Receivables Financings of such Person; 

        (7)   Disqualified
Equity Interests issued by the Company 

        (8)   all
Debt of other Persons Guaranteed by such Person to the extent so Guaranteed; 

7

 

        (9)   all
Debt of other Persons secured by a Lien on any asset of such Person, whether or not such Debt is assumed by such Person; and 

        (10) all
obligations of such Person under Hedging Agreements; 

provided that in no event shall Debt include(i) Specified Coal Agreement Obligations, (ii) obligations (other than obligations with respect to
Debt for borrowed money or other Funded Debt) related to surface rights under an agreement for the acquisition of surface rights for the production of coal reserves in the ordinary course of business
in a manner consistent with historical practice of the Company (including the Parent, as its predecessor) and its Subsidiaries, (iii) obligation under the Tax Receivable Agreement or
(iv) obligations under the Transaction Documents (other than the Tax Receivable Agreement) that are not in respect of Debt of the type referred to in clauses (1), (2) or
(5) of a Person other than the Company and its Subsidiaries. 

        The
amount of Debt of any Person will be deemed to be: 

        (A)  with
respect to Debt secured by a Lien on an asset of such Person but not otherwise the obligation, contingent or otherwise, of such Person, the lesser of (x) the
fair market value of such asset on the date the Lien attached and (y) the amount of such Debt; 

        (B)  with
respect to any Debt issued with original issue discount, the face amount of such Debt less the remaining unamortized portion of the original issue discount of such
Debt; 

        (C)  with
respect to any Hedging Agreement, the amount payable (determined after giving effect to all contractually permitted netting) if such Hedging Agreement terminated at
that time; and 

        (D)  otherwise,
the outstanding principal amount thereof. 

        "Decker" means Decker Coal Company, an unincorporated joint venture under the laws of Montana, of which the Company indirectly owns 50% of
the Equity Interests. 

        "Default" means any event that is, or after notice or passage of time or both would be, an Event of Default. 

        "Depositary" means the depositary of each Global Note, which will initially be DTC. 

        "Designated Non-cash Consideration" means the Fair Market Value of non-cash consideration received by the Issuers
or any of their Restricted Subsidiaries in connection with an Asset Sale that is so designated as Designated Non-cash Consideration pursuant to an officers' certificate, less the amount of
Cash Equivalents received in connection with a subsequent sale of or collection on such Designated Non-cash Consideration. 

        "Disqualified Equity Interests" means Equity Interests that by their terms (or by the terms of any security into which such Equity
Interests are convertible, or for which such Equity Interests are exchangeable, in each case at the option of the holder thereof) or upon the happening of any event 

        (1)   matures
or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or are required to be redeemed or redeemable at the option of the holder prior
to the Stated Maturity of the Notes for consideration other than Qualified Equity Interests, or 

        (2)   are
convertible at the option of the holder into Disqualified Equity Interests or exchangeable for Debt, 

in
each case prior to the date that is 91 days after the date on which the Notes mature; provided that Equity Interests will not constitute
Disqualified Equity Interests solely because of provisions giving holders thereof the right to require the repurchase or redemption upon an Asset Sale or Change of Control occurring prior to the
Stated Maturity of the Notes if those provisions 

8

 

        (A)  are
no more favorable to the holders of such Equity Interests than Section 4.11 and Section 4.12, and 

        (B)  specifically
state that repurchase or redemption pursuant thereto will not be required prior to the Issuers' repurchase of the Notes as required by the Indenture. 

        "Disqualified Stock" means Capital Stock constituting Disqualified Equity Interests. 

        "Domestic Restricted Subsidiary" means any Restricted Subsidiary formed under the laws of the United States of America or any jurisdiction
thereof. 

        "DTC" means The Depository Trust Company, a New York corporation, and its successors. 

        "DTC Legend" means the legend set forth in Exhibit D. 

        "EBITDA" means, for any period, the sum of 

        (1)   Consolidated
Net Income, plus 

        (2)   Fixed
Charges, to the extent deducted in calculating Consolidated Net Income, plus 

        (3)   to
the extent deducted in calculating Consolidated Net Income and as determined on a consolidated basis for the Company and its Restricted Subsidiaries in conformity
with GAAP (including without limitation, any of the following items that have been paid under or in respect of the Transaction Documents): 

        (A)  the
provision for Taxes based on income, profits or capital, including, without limitation, state franchise and similar Taxes (provided that, but without duplication,
and for any period in which the Company is a pass-through entity for purposes of U.S. federal taxes, the amount of any Permitted Tax Distributions with respect to such period); 

        (B)  depreciation,
depletion, amortization (including, without limitation, amortization of intangibles, deferred financing fees and any amortization included in pension, OPEB
or other employee benefit expenses) and all other non-cash items reducing Consolidated Net Income (including, without limitation, write-downs and impairment of property, plant, equipment
and intangibles and other long-lived assets and the impact of purchase accounting) but excluding, in each case, non-cash charges in a period which reflect cash expenses paid or
to be paid in another period), less all non-cash items increasing Consolidated Net Income; and 

        (C)  all
non-recurring or unusual gains (and less all non-recurring or unusual losses); 

        (D)  all
non-cash start-up and transition costs, business optimization expenses and other non-cash restructuring charges; 

        (E)  the
non-cash portion of "straight-line" rent expense, minus the cash portion of
"straight-line" rent expense which exceeds the amount expensed in respect of such rent expense; 

        (F)  non-cash
compensation expense or other non-cash expenses or charges arising from the granting of stock options, the granting of stock
appreciation rights and similar arrangements (including any repricing, amendment, modification, substitution or change of any such stock option, stock appreciation rights or similar arrangements); 

        (G)  any
debt extinguishment costs; 

        (H)  accretion
of asset retirement obligations in accordance with SFAS No. 143, Accounting for Asset Retirement Obligations, and any similar accounting in prior
periods; 

        (I)   net
after-tax losses attributable to asset sales, and net after-tax extraordinary losses (provided that, for any period in which the Company is a
pass-through entity for purposes of 

9

 

U.S.
federal taxes, net of the amount included in a Permitted Tax Distribution made with respect thereto); 

        (J)   any
transaction costs, fees and expenses incurred on or about the Issue Date in respect of the Transactions; 

        (K)  (A)
mark-to-market gains (and less any mark-to-market losses) relating to any Permitted Hedging Agreements and
(B) any mark-to-market losses attributed to short positions in any actual or synthetic forward sales contracts relating to coal or any other similar device or instrument
or other instrument classified as a "derivative" pursuant to SFAS 133; 

        (L)  commissions,
premiums, discounts, fees or other charges relating to performance bonds, bid bonds, appeal bonds, surety bonds, reclamation and completion guarantees and
other similar obligations; 

        (M) any
expense that is required to be paid or has been paid that is recognized on the income statement of the Company and its Subsidiaries as an expense, to the extent that
such expense has been reimbursed (including through any contribution or deemed contribution to the equity capital of the Company) by Parent and its Affiliates (other than the Company and its
Subsidiaries) to or on behalf of the Company and its Subsidiaries pursuant to the Transaction Documents (but in any event without duplication of any such reimbursement payment that is added in
arriving at Consolidated Net Income for such period); and 

        (N)  any
indemnification payments made to Parent and its Affiliates (other than the Company and its Subsidiaries) pursuant to the Transaction Documents in respect of
non-recurring items; provided however that the aggregate amount of all such payments to be added back pursuant to this clause (N)
shall not exceed $10.0 million in the aggregate; 

        provided that, with respect to any Restricted Subsidiary, such items will be added only to the extent and in the same proportion that the
relevant Restricted Subsidiary's net income was included in calculating Consolidated Net Income, plus 

        (4)   net
after-tax losses attributable to Asset Sales, and net after-tax extraordinary losses, to the extent reducing Consolidated Net Income. 

Any
reimbursement or equity contribution which is included in calculating EBITDA shall be excluded for purposes of calculations under Section 4.07(a)(3)(B). 

        "Environment" means soil, land surface or subsurface strata, water, surface waters (including navigable waters, ocean waters within
applicable territorial limits, streams, ponds, drainage basins, and wetlands), ground waters, drinking water supply, water related sediments, air, plant and animal life, and any other environmental
medium. 

        "Environmental Laws" means all laws (including common law), rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions
or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the Environment, the preservation, restoration or reclamation of natural resources, or
the presence, use, storage, discharge, management, release or threatened release of any pollutants, contaminants or hazardous or toxic substances, wastes or material or the effect of the environment
on human health and safety. 

        "Equity Interests" means all Capital Stock and all warrants or options with respect to, or other rights to purchase, Capital Stock, but
excluding Debt convertible into, or exchangeable for, Capital Stock. 

        "Equity Offering" means an offer and sale of Qualified Stock of Holdings (to the extent the proceeds thereof are contributed to the common
equity of the Company) or the Company after the Issue Date other than an issuance registered on Form S-4 or S-8 or any successor thereto or any 

10

 

issuance
pursuant to employee benefit plans or otherwise relating to compensation to officers, directors or employees. 

        "Event of Default" has the meaning assigned to such term in Section 6.01. 

        "Excess Proceeds" has the meaning assigned to such term in Section 4.12. 

        "Exchange" means a redemption of RTEA Units pursuant to an exercise by Parent of its right to have its units in the Company redeemed, or
any acquisition of RTEA Units by Holdings, whether acquired in connection with the initial public offering of Holdings made concurrently with the offering of the Notes or otherwise. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Exchange Notes" means the Notes of the Issuers issued pursuant to the Indenture in exchange for, and in an aggregate principal amount
equal to, the Initial Notes or any Initial Additional Notes of the same series in compliance with the terms of a Registration Rights Agreement and containing terms substantially identical to the
Initial Notes or any Initial Additional Notes of such series (except that (i) such Exchange Notes will be registered under the Securities Act and will not be subject to transfer restrictions or
bear the Restricted Legend, and (ii) the provisions relating to Additional Interest will be eliminated). 

        "Exchange Offer" means an offer by the Issuers to the Holders of the Initial Notes or any Initial Additional Notes to exchange outstanding
Notes of the same series for Exchange Notes of such series, as provided for in a Registration Rights Agreement. 

        "Exchange Offer Registration Statement" means the Exchange Offer Registration Statement as defined in a Registration Rights Agreement. 

        "Fair Market Value" means, with respect to any property, the price that could be negotiated in an arm's-length transaction between a
willing seller and a willing buyer, neither of whom is under undue pressure or compulsion to complete the transaction. Fair Market Value shall be determined, except as otherwise provided,
(a) if such property has a Fair Market Value equal to or less than $20.0 million, by any officer; or (b) if such property has a Fair Market Value in excess of
$20.0 million, by at least a majority of the disinterested members of the Board of Directors and evidenced by a resolution of the Board of Directors delivered to the Trustee. 

        "Fixed Charge Coverage Ratio" means, on any date (the "transaction date"), the ratio of 

        (x)   the
aggregate amount of EBITDA for the four fiscal quarters immediately prior to the transaction date for which internal financial statements are available (the
"reference period") to 

        (y)   the
aggregate Fixed Charges during such reference period. 

        In
making the foregoing calculation, 

        (1)   pro
forma effect will be given to any Debt, Disqualified Stock or Preferred Stock Incurred during or after the reference period to the extent the Debt is outstanding or
is to be Incurred on the transaction date as if the Debt, Disqualified Stock or Preferred Stock had been Incurred on the first day of the reference period; 

        (2)   pro
forma calculations of interest on Debt bearing a floating interest rate will be made as if the rate in effect on the transaction date (taking into account any
Hedging Agreement applicable to the Debt if the Hedging Agreement has a remaining term of at least 12 months) had been the applicable rate for the entire reference period; 

        (3)   Fixed
Charges related to any Debt, Disqualified Stock or Preferred Stock no longer outstanding or to be repaid or redeemed on the transaction date, except for Interest
Expense 

11

 

accrued
during the reference period under a revolving credit to the extent of the commitment thereunder (or under any successor revolving credit) in effect on the transaction date, will be excluded; 

        (4)   pro
forma effect will be given to 

        (A)  the
creation, designation or redesignation of Restricted and Unrestricted Subsidiaries, 

        (B)  the
acquisition or disposition of companies, divisions or lines of businesses by the Company and its Restricted Subsidiaries, including any acquisition or disposition of
a company, division or line of business since the beginning of the reference period by a Person that became a Restricted Subsidiary after the beginning of the reference period, and 

        (C)  the
discontinuation of any discontinued operations but, in the case of Fixed Charges, only to the extent that the obligations giving rise to the Fixed Charges will not
be obligations of the Company or any Restricted Subsidiary following the transaction date 

that
have occurred since the beginning of the reference period as if such events had occurred, and, in the case of any disposition, the proceeds thereof applied, on the first day of the reference
period. To the extent that pro forma effect is to be given to an acquisition or disposition of a company, division or line of business, the pro forma calculation will be based upon the most recent
four full fiscal quarters for which the relevant financial information is available. 

        "Fixed Charges" means, for any period, the sum of 

        (1)   Interest
Expense for such period; and 

        (2)   the
product of 

        (x)   cash
and non-cash dividends paid, declared, accrued or accumulated on any Disqualified Stock or Preferred Stock of the Company or a Restricted Subsidiary,
except for dividends payable in the Company's Qualified Stock or paid to the Company or to a Restricted Subsidiary, and 

        (y)   a
fraction, the numerator of which is one and the denominator of which is one minus the sum of the currently effective
combined Federal, state, local and foreign tax rate applicable to the Company and its Restricted Subsidiaries. 

        "Foreign Restricted Subsidiary" means any Restricted Subsidiary that is not a Domestic Restricted Subsidiary. 

        "Funded Debt" means, at any time, and determined on a consolidated basis without duplication, the consolidated Debt of the Company and its
Restricted Subsidiaries of the type referred to in clauses (1), (2), (3) (but only with respect to reimbursement obligations related thereto), (5), (6), (7), (8) and (9) in
the definition of Debt (but in the case of clauses (8) and (9), only to the extent that the Debt of other Persons so Guaranteed or secured is itself of the type referred to in
clauses (1), (2), (3) (but only with respect to reimbursement obligations related thereto), (5) or (6) of such definition. 

        "GAAP" means generally accepted accounting principles in the United States of America as in effect on the Issue Date. 

        "Global Note" means a Note in registered global form without interest coupons. 

        "Governmental Authority" means the government of the United States, any other nation or any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government. 

12

 

        "Guarantee" by any Person (the "guarantor") means any obligation, contingent or otherwise, of the guarantor guaranteeing any Debt or other
obligation of any other Person (the "primary obligor"), whether directly or indirectly, and including any written obligation of the guarantor, (a) to purchase or pay (or advance or supply funds
for the purchase or payment of) such Debt or other obligation or to purchase (or advance or supply funds for the purchase of) any security for the payment thereof, (b) to maintain working
capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Debt or other obligation or (c) as an
account party in respect of any letter of credit or letter of guaranty issued to support such Debt or other obligation; provided that the term
"Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. 

        "Guarantor" means (i) each Restricted Subsidiary of the Company in existence on the Issue Date (other than the
Co-Issuer) that Guarantees the Credit Agreement and (ii) each Restricted Subsidiary that executes a supplemental indenture in the form of Exhibit B to the Indenture providing
for the guaranty of the payment of the Notes, or any successor obligor under its Note Guaranty pursuant to Section 5.03, in each case unless and until such Guarantor is released from its Note
Guaranty pursuant to the Indenture. 

        "Hedging Agreement" means (i) any interest rate swap agreement, interest rate cap agreement, interest rate future agreement,
interest rate option agreement, interest rate hedge agreement or other agreement or arrangement designed to protect against or mitigate interest rate risk, (ii) any foreign exchange forward
contract, currency swap agreement, currency option agreements or other agreement or arrangement designed to protect against or mitigate foreign exchange risk or (iii) any commodity or raw
material futures contract, commodity hedge agreement, any actual or synthetic forward sale contract or other similar device or instrument or any other agreement designed to protect against or mitigate
raw material price risk. 

        "Holder" or "Noteholder" means the registered holder of any Note. 

        "Holdings" means Cloud Peak Energy Inc. and its successors. 

        "Incur" means, with respect to any Debt or Capital Stock, to incur, create, issue, assume or Guarantee such Debt or Capital Stock. If any
Person becomes a Restricted Subsidiary on any date after the date of the Indenture (including by redesignation of an Unrestricted Subsidiary or failure of an Unrestricted Subsidiary to meet the
qualifications necessary to remain an Unrestricted Subsidiary), the Debt and Capital Stock of such Person outstanding on such date will be deemed to have been Incurred by such Person on such date for
purposes of Section 4.06, but will not be considered the sale or issuance of Equity Interests for purposes of Section 4.12. Neither the accrual of interest nor the accretion of original
issue discount nor the payment of interest in the form of additional Debt (to the extent provided for when the Debt on which such interest is paid was originally issued) shall be considered an
Incurrence of Debt. 

        "Indenture" means this indenture, as amended or supplemented from time to time. 

13

 

  
        "Initial Additional Notes" means Additional Notes issued in an offering not registered under the Securities Act and any Notes issued in
replacement thereof, but not including any Exchange Notes issued in exchange therefor. 

        "Initial Notes" means the Notes issued on the Issue Date and any Notes issued in replacement thereof, but not including any Exchange Notes
issued in exchange therefor. 

        "Initial Purchasers" means the initial purchasers party to a purchase agreement with the Company relating to the sale of the Initial Notes
or Initial Additional Notes by the Issuers. 

        "Institutional Accredited Investor Certificate" means a certificate substantially in the form of Exhibit G hereto. 

        "interest", in respect of the Notes of a series, unless the context otherwise requires, refers to interest and Additional Interest, if
any, on such Notes. 

        "Interest Expense" means, for any period, the consolidated interest expense of the Company and its Restricted Subsidiaries, plus, to the
extent not included in such consolidated interest expense, and to the extent incurred, accrued or payable by the Company or its Restricted Subsidiaries, without duplication, (i) interest
expense attributable to Capital Leases and imputed interest expense in respect of Specified Coal Agreement Obligations, (ii) amortization of debt discount and debt issuance costs,
(iii) capitalized interest, (iv) non-cash interest expense, (v) any of the above expenses with respect to Debt of another Person Guaranteed by the Company or any of
its Restricted Subsidiaries and (vi) any interest, premiums, fees, discounts, expenses and losses on the sale of accounts receivable (and any amortization thereof) payable by the Company or any
Restricted Subsidiary in connection with a Permitted Receivables Financing, and any yields or other charges or other amounts comparable
to, or in the nature of, interest payable by the Company or any Restricted Subsidiary under any Permitted Receivables Financing, but excluding (a) amortization of deferred financing charges
incurred in respect of the Notes and the Credit Agreement on or prior to the Issue Date and (b) the write off of any deferred financing fees or debt discount, all as determined on a
consolidated basis and in accordance with GAAP. Interest Expense shall be determined for any period after giving effect to any net payments made or received and costs incurred by the Company and its
Restricted Subsidiaries with respect to any related interest rate Hedging Agreements. 

        "Interest Payment Date" means each June 15 and December 15 of each year, commencing June 15, 2010. 

        "Investment" means 

        (1)   any
advance, loan or other extension of credit to another Person (but excluding (i) advances to customers, suppliers, joint venture partners or the like in the
ordinary course of business that are, in conformity with GAAP, recorded as accounts receivables, prepaid expenses or deposits on the balance sheet of the Company or its Restricted Subsidiaries and
endorsements for collection or deposit arising in the ordinary course of business, (ii) commission, travel and similar advances to officers and employees made in the ordinary course of business
and (iii) advances, loans or extensions of trade credit in the ordinary course of business by the Company or any of its Restricted Subsidiaries), 

        (2)   any
capital contribution to another Person, by means of any transfer of cash or other property or in any other form, 

        (3)   any
purchase or acquisition of Equity Interests, bonds, notes or other Debt, or other instruments or securities issued by another Person, including the receipt of any of
the above as consideration for the disposition of assets or rendering of services, or 

        (4)   any
Guarantee of any obligation of another Person. 

14

 

If
the Company or any Restricted Subsidiary (x) sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary so that, after giving effect to that sale or
disposition, such Person is no longer a Subsidiary of the Company, or (y) designates any Restricted Subsidiary as an Unrestricted Subsidiary in accordance with the provisions of the Indenture,
all remaining Investments
of the Company and the Restricted Subsidiaries in such Person shall be deemed to have been made at such time. The acquisition by the Company or any Restricted Subsidiary of a Person that holds an
Investment in a third Person shall be deemed to be an Investment by the Person or such Restricted Subsidiary in such third Person in an amount equal to the Fair Market Value of the Investment held by
the acquired Person in such third Person on the date of such acquisition. 

        "Investment Grade" means a rating equal to or higher than Baa3 (or the equivalent) by Moody's and BBB- (or the equivalent) by
S&P. 

        "Issue Date" means the date on which the Notes (other than Additional Notes) are originally issued under the Indenture. 

        "LBA" means the acquisition of federal coal through an application for a federal coal lease submitted in accordance with the Bureau of
Land Management competitive leasing regulations. 

        "LBM" means the acquisition of federal coal through an application to modify an existing coal lease submitted in accordance with the
Bureau of Land Management non-competitive leasing regulations. 

        "Lien" means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other
title retention agreement or Capital Lease). 

        "Master Separation Agreement" means the Master Separation Agreement among the Company, Holdings and Parent to be entered into on or about
the Issue Date. 

        "Membership Interest Purchase Agreement" means the Membership Interest Purchase Agreement, dated as of March 8, 2009, by and
between Rio Tinto Sage LLC and Arch Coal, Inc. 

        "Mine" means any excavation or opening into the earth now and hereafter made from which coal is or can be extracted from any of the Real
Properties. 

        "Mining Laws" means any and all applicable federal, state, local and foreign statutes, laws, regulations, legally-binding guidance,
ordinances, rules, judgments, orders, decrees or common law causes of action relating to mining operations and activities under the Mineral Leasing Act of 1920, the Federal Coal Leasing Amendments Act
or the Surface Mining Control and Reclamation Act, each as amended or its replacement, and their state and local counterparts or equivalents. 

        "Mining Lease" means a lease, license or other use agreement which provides the Company or any Subsidiary the real property and water
rights, other interests in land, including coal, mining and surface rights, easements, rights of way and options, and rights to timber and natural gas (including coalbed methane and gob gas) necessary
or desirable in order to recover coal from any Mine. Leases which provide the Company or any other Subsidiary the right to construct and operate a conveyor, crusher plant, silo, load out facility,
rail spur, shops, offices and related facilities on the surface of the Real Property containing such reserves shall also be deemed a Mining Lease. 

        "Moody's" means Moody's Investors Service, Inc. and its successors. 

        "Multiemployer Plan" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. 

        "Net Cash Proceeds" means, with respect to any Asset Sale, the proceeds of such Asset Sale in the form of cash (including
(i) payments in respect of deferred payment obligations to the extent 

15

 

corresponding
to, principal, but not interest, when received in the form of cash, and (ii) proceeds from the conversion of other consideration received when converted to cash), net of 

        (1)   brokerage
commissions and other fees and expenses related to such Asset Sale, including fees and expenses of counsel, accountants and investment bankers and any
relocation expenses incurred as a result thereof; 

        (2)   provisions
for taxes as a result of such Asset Sale taking into account the consolidated results of operations of the Company and its Restricted Subsidiaries; 

        (3)   payments
required to be made to holders of minority interests in Restricted Subsidiaries as a result of such Asset Sale or to repay Debt outstanding at the time of such
Asset Sale that is secured by a Lien on the property or assets sold; and 

        (4)   appropriate
amounts to be provided as a reserve against liabilities associated with such Asset Sale, including pension and other post-employment benefit
liabilities, liabilities related to environmental matters and indemnification obligations associated with such Asset Sale, with any subsequent reduction of the reserve other than by payments made and
charged against the reserved amount to be deemed a receipt of cash. 

        "Non-U.S. Person" means a Person that is not a U.S. person, as defined in Regulation S. 

        "Non-Recourse Debt" means Debt as to which (i) neither the Company nor any Restricted Subsidiary provides any Guarantee
and as to which the lenders have been notified in writing that they will not have any recourse to the stock or assets of the Company or any Restricted Subsidiary and (ii) no default thereunder
would, as such, constitute a default under any Debt of the Company or any Restricted Subsidiary. 

        "Notes" has the meaning assigned to such term in the Recitals. 

        "Note Guaranty" means the guaranty of the Notes by a Guarantor pursuant to the Indenture. 

        "Obligations" means, with respect to any Debt, all obligations (whether in existence on the Issue Date or arising afterwards, absolute or
contingent, direct or indirect) for or in respect of principal (when due, upon acceleration, upon redemption, upon mandatory repayment or repurchase pursuant to a mandatory offer to purchase, or
otherwise), premium, interest, penalties, fees, indemnification, reimbursement, expenses, damages and other amounts payable and liabilities with respect to such Debt, including all interest accrued or
accruing after the commencement of any bankruptcy, insolvency or reorganization or similar case or proceeding at the contract rate (including, without limitation, any contract rate applicable upon
default) specified in the relevant documentation, whether or not the claim for such interest is allowed as a claim in such case or proceeding. 

        "Offer to Purchase" has the meaning assigned to such term in Section 3.03. 

        "Officer" means the chairman of the Board of Directors, the president or chief executive officer, any vice president, the chief financial
officer, the treasurer or any assistant treasurer, or the secretary or any assistant secretary, of the Company. 

        "Officers' Certificate" means a certificate signed in the name of the Company (i) by the chairman of the Board of Directors, the
president or chief executive officer or a vice president and (ii) by the chief financial officer, the treasurer or any assistant treasurer or the secretary or any assistant secretary. 

        "Offshore Global Note" means a Global Note representing Notes issued and sold pursuant to Regulation S. 

        "Opinion of Counsel" means a written opinion signed by legal counsel, who may be an employee of or counsel to the Company, satisfactory to
the Trustee. 

16

 

        "Original Notes" means the Initial Notes and any Exchange Notes issued in exchange therefor. 

        "Paying Agent" refers to a Person engaged to perform the obligations of the Trustee in respect of payments made or funds held hereunder in
respect of the Notes. 

        "Parent" means Rio Tinto Energy America Inc., a Delaware corporation. 

        "Permanent Offshore Global Note" means an Offshore Global Note that does not bear the Temporary Offshore Global Note Legend. 

        "Permitted Business" means any of the businesses in which the Company and its Restricted Subsidiaries are engaged on the Issue Date, and
any other businesses reasonably related, incidental, complementary or ancillary thereto. 

        "Permitted Debt" has the meaning assigned to such term in Section 4.06 

        "Permitted Hedging Agreements" means Hedging Agreements entered into in the ordinary course of business of the Company and its Restricted
Subsidiaries to hedge interest rate, foreign currency or commodity risk or otherwise for non-speculative purposes (regardless of whether such agreement or instrument is classified as a
"derivative" pursuant to SFAS 133 and required to be marked-to-market). 

        "Permitted Holders" means any or all of the following: 

        (1)   Rio
Tinto plc; 

        (2)   any
Subsidiary of Rio Tinto plc; 

        (3)   any
group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision) of which any of the foregoing in
clauses (1) and (2) are members; provided that, in the case of such group and without giving effect to the existence of such group or any
other group, such Persons in clauses (1) and (2) collectively have beneficial ownership of more than 50% of the total voting power of the Voting Stock of the Company or any of its direct
or indirect parent companies; and 

        (4)   any
Person both the Capital Stock and the Voting Stock of which (or in the case of a trust, the beneficial interests in which) are owned directly or indirectly, at least
80% by the Person specified in clause (1). 

        "Permitted Investments" means: 

        (1)   any
Investment in the Company or in a Restricted Subsidiary of the Company; 

        (2)   any
Investment in cash or Cash Equivalents; 

        (3)   any
Investment by the Company or any Subsidiary of the Company in a Person, if as a result of such Investment; 

        (A)  such
Person becomes a Restricted Subsidiary of the Company, or 

        (B)  such
Person is merged or consolidated with or into, or transfers or conveys substantially all its assets to, or is liquidated into, the Company or a Restricted
Subsidiary; 

        (4)   Investments
received as non-cash consideration in an Asset Sale made pursuant to and in compliance with Section 4.12; 

        (5)   any
Investment acquired solely in exchange for Qualified Stock of the Company or in exchange for Capital Stock of Holdings which the Company did not receive in exchange
for a cash payment, Debt or Disqualified Stock; 

        (6)   Hedging
Agreements otherwise permitted under the Indenture; 

17

 

        (7)   (i)
receivables owing to the Company or any Restricted Subsidiary if created or acquired in the ordinary course of business, (ii) endorsements for collection or
deposit in the ordinary course of business, and (iii) securities, instruments or other obligations received in compromise or settlement of debts created in the ordinary course of business, or
by reason of a composition or readjustment of debts or reorganization of another Person, or in satisfaction of claims or judgments; 

        (8)   Investments
in Unrestricted Subsidiaries and joint ventures in an aggregate amount, taken together with all other Investments made in reliance on this clause, not to
exceed the greater of (x) $100.0 million and (y) 8% of Consolidated Net Tangible Assets (net of, with respect to the Investment in any particular Person, the cash return thereon
received after the Issue Date as a result of any sale for cash, repayment, redemption, liquidating distribution or other cash realization (not included in Consolidated Net Income), not to exceed the
amount of Investments in such Person made after the Issue Date in reliance on this clause); 

        (9)   payroll,
travel and other loans or advances to, or Guarantees issued to support the obligations of, current or former officers, managers, directors, consultants and
employees, in each case in the ordinary course of business, not in excess of $2.0 million outstanding at any time; 

        (10) extensions
of credit to customers, suppliers and joint venture partners in the ordinary course of business; 

        (11) Investments
arising as a result of any Permitted Receivables Financing; 

        (12) any
Production Payments, royalties, dedication of reserves under supply agreements or similar rights or interests granted, taken subject to, or otherwise imposed on
properties with normal practices in the mining industry; 

        (13) Investments
consisting of purchases and acquisitions, in the ordinary course of business, of inventory, supplies, material or equipment or the licensing or contribution
of intellectual property; 

        (14) Investments
existing on the Issue Date and any Investments required to be made pursuant to binding agreements as in effect on the Issue Date to pay asset retirement
obligations of Decker in an aggregate amount not to exceed $30.0 million; 

        (15) any
Guarantee by the Company or any Restricted Subsidiary of any Debt of Holdings, so long as (i) Holdings is a Guarantor of the Notes, (ii) the Company
is in compliance with the Fixed Charge Coverage Ratio Test on a pro forma basis after giving effect to such incurrence and (iii)the net proceeds of the Debt are contributed or provided to the Company
or a Restricted Subsidiary; 

        (16) Investments
made pursuant to surety bonds, reclamation bonds, performance bonds, bid bonds, appeal bonds and similar obligations, in each case, to the extent such
surety bonds, reclamation bonds, performance bonds, bid bonds, appeal bonds and similar obligations are permitted under the Indenture; 

        (17) Investments
resulting from pledges and deposits permitted under the definition of "Permitted Liens"; 

        (18) Investments
in an escrow account required by the Master Separation Agreement provided to support indemnity and other payment obligations with respect to surety bonds,
letters of credit and reclamation obligations existing prior to the Issue Date, by Holdings, the Company and its Subsidiaries to Parent and its Affiliates under the Transaction Documents; 

        (19) Investments
consisting of indemnification obligations in respect of performance bonds, bid bonds, appeal bonds, surety bonds, reclamation bonds and completion
guarantees and similar obligations in respect of Specified Coal Agreements or under any Mining Law or Environmental 

18

 

Law
or with respect to workers' compensation benefits, in each case entered into in the ordinary course of business, and pledges or deposits made in the ordinary course of business in support of
obligations under existing coal sales contracts (and extensions or renewals thereof on similar terms); and 

        (20) in
addition to Investments listed above, Investments in Persons engaged in Permitted Businesses in an aggregate amount, taken together with all other Investments made
in reliance on this clause, not to exceed the greater of (x) $75.0 million and (y) 6% of Consolidated Net Tangible Assets (net of, with respect to the Investment in any particular
Person made pursuant to this clause, the cash return thereon received after the Issue Date as a result of any sale for cash, repayment, redemption, liquidating distribution or other cash realization
(not included in Consolidated Net Income) not to
exceed the amount of such Investments in such Person made after the Issue Date in reliance on this clause). 

        "Permitted Liens" means 

        (1)   Liens
existing on the Issue Date; 

        (2)   Liens
securing the Notes or any Note Guaranties and other Obligations under the Indenture and in respect thereof and any obligations owing to the Trustee under the
Indenture; 

        (3)   Liens
securing (i) Debt Incurred under clause (1) of the definition of Permitted Debt (and all Obligations incurred, issued or arising under such secured
credit facilities that permit borrowings not in excess of the limit set out in such clause (1)) and (ii) Obligations of the Company and its Subsidiaries under Hedging Agreements and
other agreements, including in respect of cash management services provided by lenders under the Debt referred to in the preceding clause (i) or their affiliates (so long as such Persons remain
lenders (or affiliates thereof) after entry into such agreements or arrangements); 

        (4)   Liens
securing Debt in an aggregate amount (and all Obligations in respect thereof) not to exceed an amount (measured on the date of Incurrence) equal to 12% of the
Company's Consolidated Net Tangible Assets (it being understood that any decrease in Consolidated Net Tangible Assets following the date of Incurrence shall not create a Default with respect to such
previously incurred Debt or Liens); 

        (5)   (A)
pledges or deposits under worker's compensation laws, unemployment insurance and other social security laws or regulations or similar legislation, or to secure
liabilities to insurance carriers under insurance arrangements in respect of such obligations, or good faith deposits, prepayments or cash payments in connection with bids, tenders, contracts or
leases, or to secure public or statutory obligations, surety bonds, customs duties and the like, or for the payment of rent, in each case incurred in the ordinary course of business, (B) Liens
in support of obligations under existing coal sales contracts (and extensions or renewals thereof on similar terms and (C) Liens on the property and assets of the Company or any Restricted
Subsidiary Incurred in the ordinary course of business to secure performance of obligations with respect to statutory or regulatory requirements, performance or return-of-money
bonds, contractual arrangements with suppliers, reclamation bonds, surety bonds or other obligations of a like nature and Incurred in a manner consistent with industry practice, in each case which are
not Incurred in connection with the borrowing of money or the obtaining of advances or credit; 

        (6)   Liens
imposed by law, such as carriers', vendors', warehousemen's and mechanics' liens, in each case for sums not yet due or being contested in good faith and by
appropriate proceedings and in respect of
taxes and other governmental assessments and charges or claims which are not yet due or which are being contested in good faith and by appropriate proceedings; 

19

 

        (7)   customary
Liens in favor of trustees and escrow agents, and netting and setoff rights, banker's liens and the like in favor of financial institutions and counterparties
to financial obligations and instruments, including Hedging Agreements; 

        (8)   Liens
on assets pursuant to merger agreements, stock or asset purchase agreements and similar agreements in respect of the disposition of such assets; 

        (9)   options,
put and call arrangements, rights of first refusal and similar rights relating to Investments in joint ventures, partnerships and the like and Liens on joint
venture interests in favor of joint venture partners to secure obligations arising under the respective joint venture agreements; 

        (10) judgment
liens so long as no Event of Default then exists as a result thereof, and Liens securing appeal bonds or letters of credit issued in support of or in lieu of
appeal bonds; 

        (11) Liens
incurred in the ordinary course of business securing obligations not securing Debt for borrowed money and not in the aggregate materially detracting from the
value of the properties or their use in the operation of the business of the Company and its Restricted Subsidiaries; 

        (12) Liens
securing obligations in respect of trade-related letters of credit permitted under clause (6) of "Permitted Debt" covering only the goods (or the documents
of title in respect of such goods) financed by such letters of credit and the proceeds and products thereof; 

        (13) Liens
(including the interest of a lessor under a Capital Lease) on property that secure Debt Incurred pursuant to clause (10) of Permitted Debt for the purpose
of financing all or any part of the purchase price or cost of construction or improvement of such property provided that the Lien does not (x) extend to any additional property or
(y) secure any additional obligations, in each case other than the initial property so subject to such Lien and the Debt and other obligations originally so secured; 

        (14) Liens
on property of a Person at the time such Person becomes a Restricted Subsidiary of the Company, provided such Liens were not created in contemplation thereof and
do not extend to any other property of the Company or any Restricted Subsidiary; 

        (15) Liens
on property at the time the Company or any of the Restricted Subsidiaries acquires such property, including any acquisition by means of a merger or consolidation
with or into the Company or a Restricted Subsidiary of such Person, provided such Liens were not created in contemplation thereof and do not extend to any other property of the Company or any
Restricted Subsidiary; 

        (16) Liens
securing Debt or other obligations of the Company or a Restricted Subsidiary to the Company or a Guarantor; 

        (17) Liens
incurred or assumed in connection with the issuance of revenue bonds the interest on which is tax-exempt under the Internal Revenue Code; 

        (18) Liens
on specific items of inventory, equipment or other goods and proceeds of any Person securing such Person's obligations in respect thereof or created for the
account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods; 

        (19) Liens
on shares of Capital Stock of any Unrestricted Subsidiary; 

        (20) Liens
in favor of collecting or payor banks having a right of setoff, revocation, refund or chargeback with respect to money or instruments of the Company or any
Restricted Subsidiary on deposit with or in possession of such bank; 

        (21) Deposits
made in the ordinary course of business to secure liability to insurance carriers; 

20

 

        (22) Liens
on assets of Foreign Subsidiaries securing Debt of such Foreign Subsidiary; 

        (23) extensions,
renewals or replacements of any Liens referred to in clauses (1), (2), (13), (14) or (15) in connection with the refinancing of the
obligations secured thereby, provided that such Lien does not extend to any other property and, except as contemplated by the definition of "Permitted Refinancing Debt", the amount secured by such
Lien is not increased; 

        (24) Liens
on accounts receivable and related assets and proceeds thereof arising in connection with a Permitted Receivables Financing; 

        (25) surface
use agreements, easements, zoning restrictions, rights of way, encroachments, pipelines, leases (other than Capital Lease Obligations), licenses, special
assessments, trackage rights, transmission and transportation lines related to Mining Leases or mineral right and/or other Real Property including any re-conveyance obligations to a
surface owner following mining, royalty payments, and other obligations under surface owner purchase or leasehold arrangements necessary to obtain surface disturbance rights to access the subsurface
coal deposits and similar encumbrances on Real Property imposed by law or arising in the ordinary course of business that do not secure any monetary obligation and do not materially detract from the
value of the affected property or interfere with the ordinary conduct of business of the Company or any Subsidiary; 

        (26) pledges,
deposits or non-exclusive licenses to use intellectual property rights of the Company or its Subsidiaries to secure the performance of bids,
tenders, trade contracts, leases, public or statutory obligations, surety and appeal bonds, reclamation bonds, performance bonds and other obligations of a like nature, in each case in the ordinary
course of business; 

        (27) Production
Payments, royalties, dedication of reserves under supply agreements, liens in connection with any Mining Leases, or similar rights or interests granted,
taken subject to, or otherwise imposed on properties consistent with normal practices in the mining industry and any precautionary UCC financing statement filings in respect of leases (and not any
Debt) entered into in the ordinary course of business; 

        (28) Liens
for Specified Coal Agreements arising as a result of Specified Coal Agreement Obligations or obligations to grant surface or water rights; and 

        (29) other
Liens securing obligations in an aggregate amount not exceeding the greater of $35.0 million and 3% of Consolidated Net Tangible Assets. 

        "Permitted Receivables Financing" means any receivables financing facility or arrangement pursuant to which a Securitization Subsidiary
purchases or otherwise acquires Receivables of the Company or any Restricted Subsidiary and enters into a third party financing thereof on terms that the Board of Directors of the Company has
concluded are customary and market terms fair to the Company and its Restricted Subsidiaries. 

        "Permitted Refinancing Debt" has the meaning assigned to such term in Section 4.06. 

        "Permitted Tax Distributions" means distributions by the Company to Holdings and other equity holders of the Company in an aggregate
amount with respect to any period not in excess of (i) the cumulative amount of Taxes that the Company and its Subsidiaries would have been required to pay in respect of all periods from the
Issue Date through the end of such period (including required payments with respect to estimated income taxes so as to avoid penalties) calculated (x) as if the Company were taxable as a United
States corporation on a stand-alone basis with no carryforwards from periods ending on or prior to the Issue Date, (y) as if the Company had a carryover basis in the assets it received from
Parent and its affiliates (i.e. determined without regard to any Basis Adjustments), and (z) as if the basis of any other assets of Company were determined without regard to any Basis
Adjustments, over (ii) the sum of (w) the amount of any such Taxes actually paid by the Company and its Subsidiaries in respect of such
periods and (v) the amount of all prior Permitted Tax Distributions. 

21

 

        "Person" means an individual, a corporation, a partnership, a limited liability company, an association, a trust or any other entity,
including a government or political subdivision or an agency or instrumentality thereof. 

        "Plan" means any employee pension benefit plan (except a Multiemployer Plan) subject to the provisions of Title IV of ERISA or
Section 412 of the Code or Section 302 of ERISA, and in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA
be deemed to be) a "contributing sponsor" as defined in Section 4001(a)(13) of ERISA. 

        "Pre-Exchange Transfer" means any transfer of one or more RTEA Units that occurs prior to an Exchange of such RTEA Units. 

        "Preferred Stock" means, with respect to any Person, any and all Capital Stock which is preferred as to the payment of dividends or
distributions, upon liquidation or otherwise, over another class of Capital Stock of such Person. 

        "principal" of any Debt means the principal amount of such Debt, (or if such Debt was issued with original issue discount, the face amount
of such Debt less the remaining unamortized portion of the
original issue discount of such Debt), together with, unless the context otherwise indicates, any premium then payable on such Debt. 

        "Private Coal Agreement" means an agreement between the Company and/or one or more of its Subsidiaries, on the one hand, and a seller or
lessee (in each case, that is not a Governmental Authority) (the "Transferee") under which the Company and its Subsidiaries acquire coal through
(i) a lease from such Transferee, (ii) the purchase of one or more coal deposit or other assets from such Transferee or (iii) the exchange of coal assets between the Company and
its Subsidiaries, on the one hand, and such Transferee, on the other. 

        "Production Payments" means with respect to any Person, all production payment obligations and other similar obligations with respect to
coal and other natural resources of such Person that are recorded as a liability or deferred revenue on the financial statements of such Person in accordance with GAAP. 

        "Qualified Equity Interests" means all Equity Interests of a Person other than Disqualified Equity Interests. 

        "Qualified Stock" means all Capital Stock of a Person other than Disqualified Stock. 

        "Rating Agencies" means S&P and Moody's; provided, that if either S&P or Moody's (or both)
shall cease issuing a rating on the Notes for reasons outside the control of the Company, the Company may select a nationally recognized statistical rating agency to substitute for S&P or Moody's (or
both). 

        "Real Property" shall mean, collectively, all right, title and interest of the Company or any other Subsidiary (including any leasehold or
mineral estate) in and to any and all parcels of real property owned or operated by the Company or any other Subsidiary, whether by lease, license or other use agreement, including but not limited to,
coal leases and surface use agreements, together with, in each case, all Improvements and appurtenant fixtures (including all conveyors, preparation plants or other coal processing facilities, silos,
shops and load out and other transportation facilities), easements and other property and rights incidental to the ownership, lease or operation thereof, including but not limited to, access rights,
water rights and extraction rights for minerals. 

        "Receivables" means accounts receivable (including all rights to payment created by or arising from the sale of goods, leases of goods or
the rendition of services, no matter how evidenced (including in the form of a chattel paper). 

        "refinance" has the meaning assigned to such term in Section 4.06. 

22

 

        "Register" has the meaning assigned to such term in Section 2.09. 

        "Registrar" means a Person engaged to maintain the Register. 

        "Registration Rights Agreement" means (i) the Registration Rights Agreement dated on or about the Issue Date between the Issuers,
the Guarantors and the Initial Purchasers party thereto with respect to the Initial Notes, and (ii) with respect to any Additional Notes, any registration rights agreements between the Issuers,
the Guarantors and the Initial Purchasers party thereto relating to rights given by the Issuers to the purchasers of Additional Notes to register such Additional Notes or exchange them for Notes
registered under the Securities Act. 

        "Regular Record Date" for the interest payable on any Interest Payment Date means the June 1 or December 1 (whether or not a
Business Day) next preceding such Interest Payment Date. 

        "Regulation S" means Regulation S under the Securities Act. 

        "Regulation S Certificate" means a certificate substantially in the form of Exhibit E hereto. 

        "Restricted Legend" means the legend set forth in Exhibit C. 

        "Restricted Payment" has the meaning assigned to such term in Section 4.07. 

        "Restricted Period" means the relevant 40-day distribution compliance period as defined in Regulation S. 

        "Restricted Subsidiary" means any Subsidiary of the Company other than any Unrestricted Subsidiary. 

        "RTEA Units" means any membership units in the Company that were owned by Parent or its Affiliate prior to the initial public offering of
Holdings made concurrently with the offering of the Notes. 

        "Rule 144A" means Rule 144A under the Securities Act. 

        "Rule 144A Certificate" means (i) a certificate substantially in the form of Exhibit F hereto or (ii) a
written certification addressed to the Company and the Trustee to the effect that the Person making such certification (x) is acquiring such Note (or beneficial interest) for its own account or
one or more accounts with respect to which it exercises sole investment discretion and that it and each such account is a qualified institutional buyer within the meaning of Rule 144A,
(y) is aware that the transfer to it or exchange, as applicable, is being made in reliance upon the exemption from the provisions of Section 5 of the Securities Act provided by
Rule 144A, and (z) acknowledges that it has received such information regarding the Company as it has requested pursuant to Rule 144A(d)(4) or has determined not to request such
information. 

        "S&P" means Standard & Poor's Ratings Group, a division of McGraw Hill, Inc., and its successors. 

        "Securities Act" means the Securities Act of 1933. 

        "Securitization Subsidiary" means a Subsidiary of the Company 

        (1)   that
is designated a "Securitization Subsidiary" by the Company, 

        (2)   that
does not engage in, and whose charter prohibits it from engaging in, any activities other than Permitted Receivables Financings and any activity necessary,
incidental or related thereto, 

        (3)   no
portion of the Debt or any other obligation, contingent or otherwise, of which 

        (A)  is
Guaranteed by the Company or any other Restricted Subsidiary of the Company, 

23

 

        (B)  is
recourse to or obligates the Company or any other Restricted Subsidiary of the Company in any way, or 

        (C)  subjects
any property or asset of the Company or any other Restricted Subsidiary of the Company, directly or indirectly, contingently or otherwise, to the satisfaction
thereof, 

        (4)   with
respect to which neither the Company nor any other Restricted Subsidiary of the Company (other than an Unrestricted Subsidiary) has any obligation to maintain or
preserve its financial condition or cause it to achieve certain levels of operating results 

other
than, in respect of clauses (3) and (4), pursuant to customary representations, warranties, covenants and indemnities entered into in connection with a Permitted Receivables Financing. 

        "Shelf Registration Statement" means the Shelf Registration Statement as defined in a Registration Rights Agreement. 

        "Significant Restricted Subsidiary" means (i) the Co-Issuer and (ii) any Restricted Subsidiary, or group of
Restricted Subsidiaries, that would, taken together, be a "significant subsidiary" as defined in Article 1, Rule 1-02 (w)(1) or (2) of
Regulation S-X promulgated under the Securities Act, as such regulation is in effect on the date of the Indenture. 

        "Specified Coal Agreement Obligations" means installment or deferred payment obligations or royalty payment obligations or obligations in
connection with the acquisition of related surface rights, in each case in connection with a Specified Coal Agreement owed solely to the seller or lessor thereunder (and not to a bank or other
third-party financer), but, (i) in the case of any such obligations under a Private Coal Agreement, only to the extent that the proven and probable coal reserves and other
non-reserve coal deposits acquired under all such Private Coal Agreements do not in the aggregate exceed 15% of the total proven and probable coal reserves and other
non-reserve coal deposits of the Company and its Restricted Subsidiaries at such time, and (ii) excluding, in any event, any Funded Debt. 

        "Specified Coal Agreements" means any LBA, LBM, State Coal Lease and Private Coal Agreements. 

        "State Coal Lease" means the acquisition of coal owned by a state in accordance with the coal leasing regulations of such state. 

        "Stated Maturity" means (i) with respect to any Debt, the date specified as the fixed date on which the final installment of
principal of such Debt is due and payable or (ii) with respect to any scheduled installment of principal of or interest on any Debt, the date specified as the fixed date on which such
installment is due and payable as set forth in the documentation governing such Debt, not including any contingent obligation to repay, redeem or repurchase prior to the regularly scheduled date for
payment. 

        "Subordinated Debt" means any Debt of an Issuer or any Guarantor which is subordinated in right of payment to the Notes or the Note
Guaranty, as applicable, pursuant to a written agreement to that effect. 

        "Subsidiary" means with respect to any Person, any corporation, association, limited liability company or other business entity of which
more than 50% of the outstanding Voting Stock is owned, directly or indirectly, by, or, in the case of a partnership, the sole general partner or the managing partner or the only general partners of
which are, such Person and one or more Subsidiaries of such Person (or a combination thereof). Unless otherwise specified, "Subsidiary" means a Subsidiary of the Company. 

        "Tax Receivable Agreement" means the tax receivable agreement to be entered into on the Issue Date by and between Parent and Holdings. 

24

 

        "Taxes" means any present or future tax, levy, import, duty, charge, deduction, withholding, assessment or fee of any nature (including
interest, penalties, and additions thereto) that is imposed by any Governmental Authority or other taxing authority. 

        "Temporary Offshore Global Note" means an Offshore Global Note that bears the Temporary Offshore Global Note Legend. 

        "Temporary Offshore Global Note Legend" means the legend set forth in Exhibit I. 

        "Transactions" means collectively, the transactions to occur on or about the Issue Date pursuant to the Transaction Documents, including
without limitation the execution, delivery and performance of the Credit Agreement and related agreements, the borrowing of loans thereunder and use of the proceeds thereof and the issuance of letters
of credit thereunder, the initial public offering of capital stock of Holdings and the issuance of the Notes. 

        "Transaction Documents" means, collectively, the following agreements: (i) the Indenture; (ii) the Credit Agreement;
(ii) the Acquisition Agreement; (iii) the CPE Promissory Note; (iv) the Master Separation Agreement; (v) the Employee Matters Agreement; (vi) the Management Services
Agreement; (vii) the Transition Services Agreement; (viii) the Registration Rights Agreement; (ix) the Trademark License Agreement; (x) the Software License Agreement;
(xi) the Tax Receivable Agreement; (xii) the Trademark Assignment Agreement; (xiv) the RTEA Coal Supply Agreement; (xv) the Agency Agreement and (xvi) the Amended
and Restated Limited Liability Company Agreement, in each case as in effect on the Issue Date and as amended, modified, renewed or replaced from time to time;  provided that any such amendment,
modification, renewal or replacement is not materially less favorable to the Noteholders than the agreement in effect
on the Issue Date. 

        "Treasury Rate" means, as of any redemption date, the yield to maturity as of such redemption date of United States Treasury securities
with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days prior to the
redemption date (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from the redemption date to
December 15, 2013 in the case of the 2016 Notes and December 15, 2014 in the case of the 2019 Notes; provided, however, that if the period
from the redemption date to such date is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year will be used. 

        "Trustee" means the party named as such in the first paragraph of the Indenture or any successor trustee under the Indenture pursuant to
Article 7. 

        "Trust Indenture Act" means the Trust Indenture Act of 1939. 

        "U.S. Global Note" means a Global Note that bears the Restricted Legend representing Notes issued and sold pursuant to Rule 144A. 

        "U.S. Government Obligations" means obligations issued or directly and fully guaranteed or insured by the United States of America or by
any agent or instrumentality thereof, provided that the full faith and credit of the United States of America is pledged in support thereof. 

        "Unrestricted Subsidiary" means any Subsidiary of the Company that at the time of determination has previously been designated, and
continues to be, an Unrestricted Subsidiary in accordance with Section 4.15. 

        "Voting Stock" means, with respect to any Person, Capital Stock of any class or kind ordinarily having the power to vote for the election
of directors, managers or other voting members of the governing body of such Person. 

25

 

 

        "Wholly Owned" means, with respect to any Restricted Subsidiary, a Restricted Subsidiary all of the outstanding Capital Stock of which
(other than any director's qualifying shares) is owned by the Company and one or more Wholly Owned Restricted Subsidiaries (or a combination thereof). 

        Section 1.02.    Rules of Construction.    Unless the context otherwise requires or except as otherwise
expressly provided, 

        (1)   an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 

        (2)   "herein,"
"hereof" and other words of similar import refer to the Indenture as a whole and not to any particular Section, Article or other subdivision; 

        (3)   all
references to Sections or Articles or Exhibits refer to Sections or Articles or Exhibits of or to the Indenture unless otherwise indicated; 

        (4)   references
to agreements or instruments, or to statutes or regulations, are to such agreements or instruments, or statutes or regulations, as amended from time to time
(or to successor statutes and regulations); and 

        (5)   in
the event that a transaction meets the criteria of more than one category of permitted transactions or listed exceptions the Issuers may classify such transaction as
they, in their sole discretion, determines. 

 
 

ARTICLE 2
THE NOTES

        Section 2.01.    Form, Dating and Denominations; Legends.    (a) The Notes of such series and the Trustee's
certificate of authentication will be substantially in the applicable form attached as Exhibit A. The terms and provisions contained in the form of the Notes annexed as Exhibit A
constitute, and are hereby expressly made, a part of the Indenture. The Notes may have notations, legends or endorsements required by law, rules of or agreements with national securities exchanges to
which the Issuers are subject, or usage. Each Note will be dated the date of its authentication. The Notes of such series will be issuable in denominations of $2,000 in principal amount and any
multiple of $1,000 in excess thereof. 

        (b)   (1)
Except as otherwise provided in paragraph (c), Section 2.10(b)(3), (b)(5), or (c) or Section 2.09(b)(4), each Initial Note or Initial
Additional Note (other than a Permanent Offshore Note) will bear the Restricted Legend. 

        (2)   Each
Global Note, whether or not an Initial Note or Additional Note, will bear the DTC Legend. 

        (3)   Each
Temporary Offshore Global Note will bear the Temporary Offshore Global Note Legend. 

        (4)   Initial
Notes and Initial Additional Notes offered and sold in reliance on Regulation S will be issued as provided in Section 2.11(a). 

        (5)   Initial
Notes and Initial Additional Notes offered and sold in reliance on any exception under the Securities Act other than Regulation S and Rule 144A
will be issued, and upon the request of the Issuers to the Trustee, Initial Notes offered and sold in reliance on Rule 144A may be issued, in the form of Certificated Notes. 

        (6)   Exchange
Notes will be issued, subject to Section 2.09(b), in the form of one or more Global Notes. 

26

 

        (c)   (1)
If the Issuers determine (upon the advice of counsel and such other certifications and evidence as the Issuers may reasonably require) that a Note is eligible for
resale pursuant to Rule 144 under the Securities Act (or a successor provision) and that the Restricted Legend is no longer necessary or appropriate in order to ensure that subsequent transfers
of the Note (or a beneficial interest therein) are effected in compliance with the Securities Act, or 

        (2)   after
an Initial Note or any Initial Additional Note is 

        (x)   sold
pursuant to an effective registration statement under the Securities Act, pursuant to the Registration Rights Agreement or otherwise, or (y) is validly
tendered for exchange into an Exchange Note pursuant to an Exchange Offer 

the
Issuers may instruct the Trustee to cancel the Note and issue to the Holder thereof (or to its transferee) a new Note of like tenor and amount, registered in the name of the Holder thereof (or its
transferee), that does not bear the Restricted Legend, and the Trustee will comply with such instruction. 

        (d)   By
its acceptance of any Note bearing the Restricted Legend (or any beneficial interest in such a Note), each Holder thereof and each owner of a beneficial interest
therein acknowledges the restrictions on transfer of such Note (and any such beneficial interest) set forth in this Indenture and in the Restricted Legend and agrees that it will transfer such Note
(and any such beneficial interest) only in accordance with the Indenture and such legend. 

        Section 2.02.    Execution and Authentication; Exchange Notes; Additional Notes.    (a) An Officer shall
execute the Notes for each Issuer by facsimile or manual signature in the name and on behalf of such Issuer. If an Officer whose signature is on a Note no longer holds that office at the time the Note
is authenticated, the Note will still be valid. 

        (b)   A
Note will not be valid until the Trustee manually signs the certificate of authentication on the Note, with the signature conclusive evidence that the Note has been
authenticated under the Indenture. 

        (c)   At
any time and from time to time after the execution and delivery of the Indenture, the Issuers may deliver Notes executed by the Issuers to the Trustee for
authentication. The Trustee will authenticate and deliver 

          (i)  Initial
Notes for original issue in the aggregate principal amount not to exceed $[            ] aggregate principal amount of the 2016 Notes
and $[            ] aggregate principal amount of the 2019 Notes, 

         (ii)  Initial
Additional Notes of either series from time to time for original issue in aggregate principal amounts specified by the Issuers, and 

        (iii)  Exchange
Notes from time to time for issue in exchange for a like principal amount of Initial Notes or Initial Additional Notes of the same series 

after
the following conditions have been met: 

        (1)   Receipt
by the Trustee of an Officers' Certificate of each Issuer specifying 

        (A)  the
amount of Notes to be authenticated and the date on which the Notes are to be authenticated, 

        (B)  whether
the Notes are to be Initial Notes, Additional Notes or Exchange Notes and which series such Notes shall be a part of, 

        (C)  in
the case of Initial Additional Notes, that the issuance of such Notes does not contravene any provision of Article 4, 

27

 

        (D)  whether
the Notes are to be issued as one or more Global Notes or Certificated Notes, and 

        (E)  other
information the Issuers may determine to include or the Trustee may reasonably request. 

        (2)   In
the case of Initial Additional Notes, receipt by the Trustee of an Opinion of Counsel confirming that the Holders of the outstanding Notes of the same series will be
subject to federal income tax in the same amounts, in the same manner and at the same times as would have been the case if such Additional Notes were not issued. 

        (3)   In
the case of Exchange Notes, effectiveness of an Exchange Offer Registration Statement and consummation of the exchange offer thereunder (and receipt by the Trustee of
an Officers' Certificate to that effect). Initial Notes or Initial Additional Notes exchanged for Exchange Notes will be cancelled by the Trustee. 

        Section 2.03.    Registrar, Paying Agent and Authenticating Agent; Paying Agent to Hold Money in
Trust.    (a) The Issuers may appoint one or more Registrars and one or more Paying Agents, and the Trustee may appoint an Authenticating Agent, in which case
each reference in the Indenture to the Trustee in respect of the obligations of the Trustee to be performed by that Agent will be deemed to be references to the Agent. The Company may act as Registrar
or (except for purposes of Article 8) Paying Agent. In each case the Issuers and the Trustee will enter into an appropriate agreement with the Agent implementing the provisions of the Indenture
relating to the obligations of the Trustee to be performed by the Agent and the related rights. Initially, Citibank, N.A., 111 Wall Street, 15th Floor, New York, NY 10005, will act as the
Registrar, Paying Agent and Authentication Agent. 

        (b)   The
Issuers will require each Paying Agent other than the Trustee to agree in writing (in the case of Citibank, N.A. its execution hereof is such agreement in writing)
that the Paying Agent will hold in trust for the benefit of the Holders or the Trustee all money held by the Paying Agent for the payment of principal of and interest on the Notes and will promptly
notify the Trustee of any default by the Issuers in making any such payment. The Issuers at any time may require a Paying Agent to pay all money held by it to the Trustee and account for any funds
disbursed, and the Trustee may at any time during the continuance of any payment default, upon written request to a Paying Agent, require the Paying Agent to pay all money held by it to the Trustee
and to account for any funds disbursed. Upon doing so, the Paying Agent will have no further liability for the money so paid over to the Trustee. 

        Section 2.04.    Replacement Notes.    If a mutilated Note is surrendered to the Trustee or if a Holder claims
that its Note has been lost, destroyed or wrongfully taken, the Issuers will issue and the Trustee will authenticate a replacement Note of the same series, like tenor and principal amount and bearing
a number not contemporaneously outstanding. Every replacement Note is an additional obligation of the Issuers and entitled to the benefits of the Indenture. If required by the Trustee or the Issuers,
an indemnity must be furnished that is sufficient in the judgment of both the Trustee and the Issuers to protect the Issuers and the Trustee from any loss they may suffer if a Note is replaced. The
Issuers may charge the Holder for the expenses of the Issuers and the Trustee in replacing a Note. In case the mutilated, lost, destroyed or wrongfully taken Note has become or is about to become due
and payable, the Issuers in their discretion may pay the Note instead of issuing a replacement Note. 

        Section 2.05.    Outstanding Notes.    (a) Notes outstanding at any time are all Notes that have been
authenticated by the Trustee except for 

        (1)   Notes
cancelled by the Trustee or delivered to it for cancellation; 

        (2)   any
Note which has been replaced pursuant to Section 2.04 unless and until the Trustee and the Issuers receive proof satisfactory to them that the replaced Note
is held by a bona fide purchaser; and 

28

 

        (3)   on
or after the maturity date or any redemption date or date for purchase of the Notes pursuant to an Offer to Purchase, those Notes payable or to be redeemed or
purchased on that date for which the Trustee (or Paying Agent, other than the Issuers or an Affiliate of the Issuers) holds money sufficient to pay all amounts then due. 

        (b)   A
Note does not cease to be outstanding because either Issuer or one of their Affiliates holds the Note, provided that in
determining whether the Holders of the requisite principal amount of the outstanding Notes have given or taken any request, demand, authorization, direction, notice, consent, waiver or other action
hereunder, Notes owned by either Issuer or any Affiliate of the Issuers will be disregarded and deemed not to be outstanding, (it being understood that in determining whether the Trustee is protected
in relying upon any such request, demand, authorization, direction, notice, consent, waiver or other action, only Notes which the Trustee knows to be so owned will be so disregarded). Notes so owned
which have been pledged in good faith may be regarded as outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Notes and that the
pledgee is not an Issuer or any Affiliate of an Issuer. 

        Section 2.06.    Temporary Notes.    Until definitive Notes are ready for delivery, the Issuers may prepare and
the Trustee will authenticate temporary Notes. Temporary Notes will be substantially in the form of definitive Notes but may have insertions, substitutions, omissions and other variations determined
to be appropriate by the Officer executing the temporary Notes, as evidenced by the execution of the temporary Notes. If temporary Notes are issued, the Issuers will cause definitive Notes to be
prepared without unreasonable delay. After the preparation of definitive Notes, the temporary Notes will be exchangeable for definitive Notes upon surrender of the temporary Notes at the office or
agency of the Issuers designated for the purpose pursuant to Section 4.02, without charge to the Holder. Upon surrender for cancellation of any temporary Notes the Issuers will execute and the
Trustee will authenticate and deliver in exchange therefor a like principal amount of definitive Notes of authorized denominations. Until so exchanged, the temporary Notes will be entitled to the same
benefits under the Indenture as definitive Notes. 

        Section 2.07.    Cancellation.    The Issuers at any time may deliver to the Trustee for cancellation any Notes
previously authenticated and delivered hereunder which the Issuers may have acquired in any manner whatsoever, and may deliver to the Trustee for cancellation any Notes previously authenticated
hereunder which the Issuers have not issued and sold. Any Registrar or the Paying Agent will forward to the Trustee any Notes surrendered to it for transfer, exchange or payment. The Trustee will
cancel all Notes surrendered for transfer, exchange, payment or cancellation and dispose of them in accordance with its normal procedures or the written instructions of the Issuers. The Issuers may
not issue new Notes to replace Notes they have paid in full or delivered to the Trustee for cancellation. 

        Section 2.08.    CUSIP and CINS Numbers.    The Issuers in issuing the Notes may use "CUSIP" and "CINS"
numbers, and the Trustee will use CUSIP numbers or CINS numbers in notices of redemption or exchange or in Offers to Purchase as a convenience to Holders, the notice to state that no representation is
made as to the correctness of such numbers either as printed on the Notes or as contained in any notice of redemption or exchange or Offer to Purchase. The Issuers will promptly notify the Trustee of
any change in the CUSIP or CINS numbers. 

        Section 2.09.    Registration, Transfer and Exchange.    (a) The Notes will be issued in registered form
only, without coupons, and the Issuers shall cause the Trustee to maintain a register (the "Register") of the Notes, for registering the record
ownership of the Notes by the Holders and transfers and exchanges of the Notes. 

        (b)   (1)
Each Global Note will be registered in the name of the Depositary or its nominee and, so long as DTC is serving as the Depositary thereof, will bear the DTC Legend. 

29

 

        (2)   Each
Global Note will be delivered to the Trustee as custodian for the Depositary. Transfers of a Global Note (but not a beneficial interest therein) will be limited to
transfers thereof in whole, but not in part, to the Depositary, its successors or their respective nominees, except (1) as set forth in Section 2.09(b)(4) and (2) transfers of
portions thereof in the form of Certificated Notes of the same series may be made upon request of an Agent Member (for itself or on behalf of a beneficial owner) by written notice given to the Trustee
by or on behalf of the Depositary in accordance with customary procedures of the Depositary and in compliance with this Section and Section 2.10. 

        (3)   Agent
Members will have no rights under the Indenture with respect to any Global Note held on their behalf by the Depositary, and the Depositary may be treated by the
Issuers, the Trustee and any agent of the Issuers or the Trustee as the absolute owner and Holder of such Global Note for all
purposes whatsoever. Notwithstanding the foregoing, the Depositary or its nominee may grant proxies and otherwise authorize any Person (including any Agent Member and any Person that holds a
beneficial interest in a Global Note through an Agent Member) to take any action which a Holder is entitled to take under the Indenture or the Notes, and nothing herein will impair, as between the
Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a holder of any security. 

        (4)   If
(x) the Depositary notifies the Issuers that it is unwilling or unable to continue as Depositary for a Global Note and a successor depositary is not appointed
by the Issuers within 90 days of the notice or (y) an Event of Default has occurred and is continuing and the Trustee has received a request from the Depositary, the Trustee will
promptly exchange each beneficial interest in the Global Note for one or more Certificated Notes of the same series in authorized denominations having an equal aggregate principal amount registered in
the name of the owner of such beneficial interest, as identified to the Trustee by the Depositary, and thereupon the Global Note will be deemed canceled. If such Note does not bear the Restricted
Legend, then the Certificated Notes issued in exchange therefor will not bear the Restricted Legend. If such Note bears the Restricted Legend, then the Certificated Notes issued in exchange therefor
will bear the Restricted Legend, provided that any Holder of any such Certificated Note issued in exchange for a beneficial interest in a Temporary
Offshore Global Note will have the right upon presentation to the Trustee of a duly completed Certificate of Beneficial Ownership after the Restricted Period to exchange such Certificated Note for a
Certificated Note of like tenor and amount that does not bear the Restricted Legend, registered in the name of such Holder. 

        (c)   Each
Certificated Note will be registered in the name of the Holder thereof or its nominee. 

        (d)   A
Holder may transfer a Note (or a beneficial interest therein) to another Person or exchange a Note (or a beneficial interest therein) for another Note or Notes of the
same series of any authorized denomination by presenting to the Trustee a written request therefor stating the name of the proposed transferee or requesting such an exchange, accompanied by any
certification, opinion or other document required by Section 2.10. The Trustee will promptly register any transfer or exchange that meets the requirements of this Section by noting the same in
the register maintained by the Trustee for the purpose; provided that 

        (x)   no
transfer or exchange will be effective until it is registered in such register and 

        (y)   the
Trustee will not be required (i) to issue, register the transfer of or exchange any Note for a period of 15 days before a selection of Notes to be
redeemed or purchased pursuant to an Offer to Purchase, (ii) to register the transfer of or exchange any Note so selected for redemption or purchase in whole or in part, except, in the case of
a partial redemption or purchase, that portion of any Note not being redeemed or purchased, or (iii) if a redemption or a purchase pursuant to an Offer to Purchase is to occur after a Regular
Record Date but on or before the corresponding Interest Payment Date, to register the transfer of or exchange any Note on or after 

30

 

the
Regular Record Date and before the date of redemption or purchase. Prior to the registration of any transfer, the Issuers, the Trustee and their agents will treat the Person in whose name the Note
is registered as the owner and Holder thereof for all purposes (whether or not the Note is overdue), and will not be affected by notice to the contrary. 

        From
time to time the Issuers will execute and the Trustee will authenticate additional Notes as necessary in order to permit the registration of a transfer or exchange in accordance
with this Section. 

        No
service charge will be imposed in connection with any transfer or exchange of any Note, but the Issuers may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than a transfer tax or other similar governmental charge payable upon exchange pursuant to subsection (b)(4)). 

        (e)   (1)  Global Note to Global Note. If a beneficial interest in a Global Note is transferred or exchanged for a
beneficial
interest in another Global Note, the Trustee will (x) record a decrease in the principal amount of the Global Note being transferred or exchanged equal to the principal amount of such transfer
or exchange and (y) record a like increase in the principal amount of the other Global Note. Any beneficial interest in one Global Note that is transferred to a Person who takes delivery in the
form of an interest in another Global Note, or exchanged for an interest in another Global Note, will, upon transfer or exchange, cease to be an interest in such Global Note and become an interest in
the other Global Note and, accordingly, will thereafter be subject to all transfer and exchange restrictions, if any, and other procedures applicable to beneficial interests in such other Global Note
for as long as it remains such an interest. 

        (2)    Global Note to Certificated Note.    If a beneficial interest in a Global Note is transferred or exchanged for
a Certificated Note, the Trustee will (x) record a decrease in the principal amount of such Global Note equal to the principal amount of such transfer or exchange and (y) deliver one or
more new Certificated Notes of the same series in authorized denominations having an equal aggregate principal amount to the transferee (in the case of a transfer) or the owner of such beneficial
interest (in the case of an exchange), registered in the name of such transferee or owner, as applicable. 

        (3)    Certificated Note to Global Note.    If a Certificated Note is transferred or exchanged for a beneficial
interest in a Global Note, the Trustee will (x) cancel such Certificated Note, (y) record an increase in the principal amount of such Global Note equal to the principal amount of such
transfer or exchange and (z) in the event that such transfer or exchange involves less than the entire principal amount of the canceled Certificated Note, deliver to the Holder thereof one or
more new Certificated Notes of the same series in authorized denominations having an aggregate principal amount equal to the untransferred or unexchanged portion of the canceled Certificated Note,
registered in the name of the Holder thereof. 

        (4)    Certificated Note to Certificated Note.    If a Certificated Note is transferred or exchanged for another
Certificated Note, the Trustee will (x) cancel the Certificated Note being transferred or exchanged, (y) deliver one or more new Certificated Notes of the same series in authorized
denominations having an aggregate principal amount equal to the principal amount of such transfer or exchange to the transferee (in the case of a transfer) or the Holder of the canceled Certificated
Note (in the case of an exchange), registered in the name of such transferee or Holder, as applicable, and (z) if such transfer or exchange involves less than the entire principal amount of the
canceled Certificated Note, deliver to the Holder thereof one or more Certificated Notes of the same series in authorized denominations having an aggregate principal amount equal to the untransferred
or unexchanged portion of the canceled Certificated Note, registered in the name of the Holder thereof. 

31

 

        Section 2.10.    Restrictions on Transfer and Exchange.    (a) The transfer or exchange of any Note (or
a beneficial interest therein) may only be made in accordance with this Section and Section 2.09 and, in the case of a Global Note (or a beneficial interest therein), the applicable rules and
procedures of the Depositary. The Trustee shall refuse to register any requested transfer or exchange that does not comply with the preceding sentence. 

        (b)   Subject
to paragraph (c), the transfer or exchange of any Note (or a beneficial interest therein) of the type set forth in column A below for a Note (or a
beneficial interest therein) of the type set forth opposite in column B below may only be made in compliance with the certification requirements (if any) described in the clause of this paragraph set
forth opposite in column C below. 

 

 

							
	A 	 	B 	 	C 	 
	U.S. Global Note	 	U.S. Global Note	 	 	(1	)
	U.S. Global Note	 	Offshore Global Note	 	 	(2	)
	U.S. Global Note	 	Certificated Note	 	 	(3	)
	Offshore Global Note	 	U.S. Global Note	 	 	(4	)
	Offshore Global Note	 	Offshore Global Note	 	 	(1	)
	Offshore Global Note	 	Certificated Note	 	 	(5	)
	Certificated Note	 	U.S. Global Note	 	 	(4	)
	Certificated Note	 	Offshore Global Note	 	 	(2	)
	Certificated Note	 	Certificated Note	 	 	(3	)

 

 
        (1)   No
certification is required. 

        (2)   The
Person requesting the transfer or exchange must deliver or cause to be delivered to the Trustee a duly completed Regulation S Certificate;  provided that if the requested transfer or exchange is
made by the Holder of a Certificated Note that does not bear the Restricted Legend, then no
certification is required. 

        (3)   The
Person requesting the transfer or exchange must deliver or cause to be delivered to the Trustee (x) a duly completed Rule 144A Certificate,
(y) a duly completed Regulation S Certificate or (z) a duly completed Institutional Accredited Investor Certificate, and/or an Opinion of Counsel and such other certifications and
evidence as the Issuers may reasonably require in order to determine that the proposed transfer or exchange is being made in compliance with the Securities Act and any applicable securities laws of
any state of the United States; provided that if the requested transfer or exchange is made by the Holder of a Certificated Note that does not bear the
Restricted Legend, then no certification is required. In the event that (i) the requested transfer or exchange takes place after the
Restricted Period and a duly completed Regulation S Certificate is delivered to the Trustee or (ii) a Certificated Note that does not bear the Restricted Legend is surrendered for
transfer or exchange, upon transfer or exchange the Trustee will deliver a Certificated Note that does not bear the Restricted Legend. 

        (4)   The
Person requesting the transfer or exchange must deliver or cause to be delivered to the Trustee a duly completed Rule 144A Certificate. 

        (5)   Notwithstanding
anything to the contrary contained herein, no such exchange is permitted if the requested exchange involves a beneficial interest in a Temporary Offshore
Global Note. If the requested transfer involves a beneficial interest in a Temporary Offshore Global Note, the Person requesting the transfer must deliver or cause to be delivered to the Trustee
(x) a duly completed Rule 144A Certificate or (y) a duly completed Institutional Accredited Investor Certificate and/or an Opinion of Counsel and such other certifications and
evidence as the Issuers may reasonably require in order to determine that the proposed transfer is being made in compliance with the Securities Act and any applicable securities laws of any state of
the United States. If the requested transfer or exchange involves a beneficial interest in a Permanent Offshore 

32

 

Global
Note, no certification is required and the Trustee will deliver a Certificated Note that does not bear the Restricted Legend. 

        (c)   No
certification is required in connection with any transfer or exchange of any Note (or a beneficial interest therein) 

        (1)   after
such Note is eligible for resale pursuant to Rule 144 under the Securities Act (or a successor provision);  provided that the Issuers have provided the Trustee with an Officer's Certificate to that
effect, and the Issuers may require from any Person requesting
a transfer or exchange in reliance upon this clause (1) an opinion of counsel and any other reasonable certifications and evidence in order to support such certificate; or 

        (2)   (x)
sold pursuant to an effective registration statement, pursuant to the Registration Rights Agreement or otherwise or (y) which is validly tendered for exchange
into an Exchange Note pursuant to an Exchange Offer. 

        Any
Certificated Note delivered in reliance upon this paragraph will not bear the Restricted Legend. 

        (d)   The
Trustee will retain copies of all certificates, opinions and other documents received in connection with the transfer or exchange of a Note (or a beneficial interest
therein), and the Issuers will have the right to inspect and make copies thereof at any reasonable time upon written notice to the Trustee. 

        Section 2.11.    Temporary Offshore Global Notes.    (a) Each Note originally sold by the Initial
Purchasers in reliance upon Regulation S will be evidenced by one or more Offshore Global Notes that bear the Temporary Offshore Global Note Legend. 

        (b)   An
owner of a beneficial interest in a Temporary Offshore Global Note (or a Person acting on behalf of such an owner) may provide to the Trustee (and the Trustee will
accept) a duly completed Certificate of Beneficial Ownership at any time after the Restricted Period (it being understood that the Trustee will not accept any such certificate during the Restricted
Period). Promptly after acceptance of a Certificate of Beneficial Ownership with respect to such a beneficial interest, the Trustee will cause such beneficial interest to be exchanged for an
equivalent beneficial interest in a Permanent Offshore Global Note, and will (x) permanently reduce the principal amount of such Temporary Offshore Global Note by the amount of such beneficial
interest and (y) increase the principal amount of such Permanent Offshore Global Note by the amount of such beneficial interest. 

        (c)   Notwithstanding
paragraph (b), if after the Restricted Period any Initial Purchaser owns a beneficial interest in a Temporary Offshore Global Note, such Initial
Purchaser may, upon written request to the Trustee accompanied by a certification as to its status as an Initial Purchaser, exchange such beneficial interest for an equivalent beneficial interest in a
Permanent Offshore Global Note, and the Trustee will comply with such request and will (x) permanently reduce the principal amount of such Temporary Offshore Global Note by the amount of such
beneficial interest and (y) increase the principal amount of such Permanent Offshore Global Note by the amount of such beneficial interest. 

        (d)   Notwithstanding
anything to the contrary contained herein, any owner of a beneficial interest in a Temporary Offshore Global Note shall not be entitled to receive
payment of principal or interest on such beneficial interest or other amounts in respect of such beneficial interest until such beneficial interest is exchanged for an interest in a Permanent Offshore
Global Note or transferred for an interest in another Global Note or a Certificated Note. 

33

 
 
 

ARTICLE 3
REDEMPTION; OFFER TO PURCHASE

        Section 3.01.    Optional Redemption.    The Notes of each series may be redeemed, in whole, or from time to
time in part, subject to the conditions and at the redemption prices set forth in Paragraph 3 of the form of Notes of such series set forth in Exhibit A-1 and A-2
hereto, which are hereby incorporated by reference and made a part of this Indenture, together with accrued and unpaid interest to the redemption date. 

        Section 3.02.    Method and Effect of Redemption.    (a) If the Issuers elect to redeem Notes of a
series, it must notify the Trustee of the redemption date and the principal amount of Notes of such series to be redeemed by delivering an Officers' Certificate at least 60 days before the
redemption date (unless a shorter period is satisfactory to the Trustee). If fewer than all of the Notes of a series are being redeemed, the Officers' Certificate must also specify a record date not
less than 15 days after the date of the notice of redemption is given to the Trustee, and the Trustee will select the Notes of such series to be redeemed pro rata, by lot or by any other method
the Trustee in its sole discretion deems fair and appropriate, in denominations of $2,000 principal amount and multiples of $1,000 thereof. The Trustee will notify the Issuers promptly of the Notes or
portions of Notes to be called for redemption. Notice of redemption must be sent by the Issuers or at the Issuers' request, by the Trustee in the name and at the expense of the Issuers, to Holders
whose Notes are to be redeemed at least 30 days but not more than 60 days before the redemption date. 

        (b)   The
notice of redemption will identify the Notes to be redeemed and will include or state the following: 

        (1)   the
redemption date; 

        (2)   the
redemption price, including the portion thereof representing any accrued interest; 

        (3)   the
place or places where Notes are to be surrendered for redemption; 

        (4)   Notes
called for redemption must be so surrendered in order to collect the redemption price; 

        (5)   on
the redemption date the redemption price will become due and payable on Notes called for redemption, and interest on Notes called for redemption will cease to accrue
on and after the redemption date; 

        (6)   if
any Note is redeemed in part, on and after the redemption date, upon surrender of such Note, new Notes equal in principal amount to the unredeemed portion will be
issued; and 

        (7)   if
any Note contains a CUSIP or CINS number, no representation is being made as to the correctness of the CUSIP or CINS number either as printed on the Notes or as
contained in the notice of redemption and that the Holder should rely only on the other identification numbers printed on the Notes. 

        (c)   Once
notice of redemption is sent to the Holders, Notes called for redemption become due and payable at the redemption price on the redemption date, and upon surrender
of the Notes called for redemption, the Issuers shall redeem such Notes at the redemption price. Commencing on the redemption date, Notes redeemed will cease to accrue interest. Upon surrender of any
Note redeemed in part, the Holder will receive a new Note equal in principal amount to the unredeemed portion of the surrendered Note. 

        Section 3.03.    Offer to Purchase.    (a) An "Offer to
Purchase" means an offer by the Issuers to purchase Notes as required by the Indenture. An Offer to Purchase must be made by written offer (the
"offer") sent to the Holders. The Issuers will notify the Trustee at least 15 days (or such shorter period as is acceptable to the Trustee) prior
to sending the offer to Holders of its obligation to make an Offer 

34

 

to
Purchase, and the offer will be sent by the Issuers or, at the Issuers' request, by the Trustee in the name and at the expense of the Issuers. 

        (b)   The
offer must include or state the following as to the terms of the Offer to Purchase: 

        (1)   the
provision of the Indenture pursuant to which the Offer to Purchase is being made; 

        (2)   the
aggregate principal amount of the outstanding Notes offered to be purchased by the Issuers pursuant to the Offer to Purchase (including, if less than 100%, the
manner by which such amount has been determined pursuant to the Indenture) (the "purchase amount"); 

        (3)   the
purchase price, including the portion thereof representing accrued interest; 

        (4)   an
expiration date (the "expiration date") not less than 30 days or more than 60 days after the date of the
offer, and a settlement date for purchase (the "purchase date") not more than five Business Days after the expiration date; 

        (5)   information
concerning the business of the Company and its Subsidiaries which the Issuers in good faith believe will enable the Holders to make an informed decision with
respect to the Offer to Purchase, at a minimum to include 

        (A)  the
most recent annual and quarterly financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations" for the Company, 

        (B)  a
description of material developments in the Company's business subsequent to the date of the latest of the financial statements (including a description of the events
requiring the Company to make the Offer to Purchase), and 

        (C)  if
applicable, appropriate pro forma financial information concerning the Offer to Purchase and the events requiring the Company to make the Offer to Purchase; 

        (6)   a
Holder may tender all or any portion of its Notes, subject to the requirement that any portion of a Note tendered must be in a minimum denomination of $2,000 principal
amount and multiples of $1,000 thereof; 

        (7)   the
place or places where Notes are to be surrendered for tender pursuant to the Offer to Purchase; 

        (8)   each
Holder electing to tender a Note pursuant to the offer will be required to surrender such Note at the place or places specified in the offer prior to the close of
business on the expiration date (such Note being, if the Issuers or the Trustee so requires, duly endorsed or accompanied by a duly executed written instrument of transfer); 

        (9)   interest
on any Note not tendered, or tendered but not purchased by the Issuers pursuant to the Offer to Purchase, will continue to accrue; 

        (10) on
the purchase date the purchase price will become due and payable on each Note accepted for purchase, and interest on Notes purchased will cease to accrue on and
after the purchase date; 

        (11) Holders
are entitled to withdraw Notes tendered by giving notice, which must be received by the Issuers or the Trustee not later than the close of business on the
expiration date, setting forth the name of the Holder, the principal amount of the tendered Notes, the certificate number of the tendered Notes and a statement that the Holder is withdrawing all or a
portion of the tender; 

        (12) (i)
if Notes in an aggregate principal amount less than or equal to the purchase amount are duly tendered and not withdrawn pursuant to the Offer to Purchase, the
Issuers will purchase all such Notes, and (ii) if the Offer to Purchase is for less than all of the outstanding Notes and 

35

 

Notes
in an aggregate principal amount in excess of the purchase amount are tendered and not withdrawn pursuant to the offer, the Issuers will purchase Notes of both series having an aggregate
principal amount equal to the purchase amount on a pro rata basis, with adjustments so that only Notes in multiples of $1,000 principal amount (and in a minimum amount of $2,000) will be purchased; 

        (13) if
any Note is purchased in part, new Notes of the same series equal in principal amount to the unpurchased portion of the Note will be issued; and 

        (14) if
any Note contains a CUSIP or CINS number, no representation is being made as to the correctness of the CUSIP or CINS number either as printed on the Notes or as
contained in the offer and that the Holder should rely only on the other identification numbers printed on the Notes. 

        (c)   Prior
to the purchase date, the Issuers will accept tendered Notes for purchase as required by the Offer to Purchase and deliver to the Trustee all Notes so accepted
together with an Officers' Certificate specifying which Notes have been accepted for purchase. On the purchase date the purchase price will become due and payable on each Note accepted for purchase,
and interest on Notes purchased will cease to accrue on and after the purchase date. The Trustee will promptly return to Holders any Notes not accepted for purchase and send to Holders new Notes equal
in principal amount to any unpurchased portion of any Notes accepted for purchase in part. 

        (d)   The
Issuers will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the purchase of the Notes of a series pursuant to an Offer to Purchase pursuant to Section 4.11 or Section 4.12, as
applicable. To the extent that the provisions of any securities laws or regulations conflict with Section 4.11 or Section 4.12, the Issuers will comply with the applicable securities
laws and regulations and will not be deemed to have breached their obligations under Section 4.11 or Section 4.12, as applicable, by virtue of such conflict. 

 
 

ARTICLE 4
COVENANTS

        Section 4.01.    Payment Of Notes.    (a) The Issuers jointly and severally agree to pay the principal
of and interest on the Notes on the dates and in the manner provided in the Notes and the Indenture. Not later than 9:00 A.M. (New York City time) on the due date of any principal of or
interest on any Notes, or any redemption or purchase price of the Notes, the Issuers will deposit with the Trustee (or Paying Agent) money in immediately available funds sufficient to pay such
amounts, provided that if the Issuers or any Affiliate of an Issuer is acting as Paying Agent, it will, on or before each due date, segregate and hold
in a separate trust fund for the benefit of the Holders a sum of money sufficient to pay such amounts until paid to such Holders or otherwise disposed of as provided in the Indenture. In each case the
Issuers will promptly notify the Trustee of their compliance with this paragraph. 

        (b)   An
installment of principal or interest will be considered paid on the date due if the Trustee (or Paying Agent, other than the Issuers or any Affiliate of the Issuers)
holds on that date money designated for and sufficient to pay the installment. If the Issuers or any Affiliate of the Issuers acts as Paying Agent, an installment of principal or interest will be
considered paid on the due date only if paid to the Holders. 

        (c)   The
Issuers jointly and severally agree to pay interest on overdue principal, and, to the extent lawful, overdue installments of interest at the rate per annum specified
in the Notes of each series. 

        (d)   Payments
in respect of the Notes represented by the Global Notes are to be made by wire transfer of immediately available funds to the accounts specified by the Holders
of the Global Notes. With respect to Certificated Notes, the Issuers will make all payments by wire transfer of immediately 

36

 

available
funds to the accounts specified by the Holders thereof or, if no such account is specified, by mailing a check to each Holder's registered address. 

        Section 4.02.    Maintenance of Office or Agency.    The Issuers will maintain in the United States of America,
an office or agency where Notes may be surrendered for registration of transfer or exchange or for presentation for payment and where notices and demands to or upon the Issuers in respect of the Notes
and the Indenture may be served. The Issuers hereby initially designate the Corporate Trust Office of the Paying Agent as such office of the Issuers. The Issuers will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or agency. If at any time the Issuers fail to maintain any such required office or agency or fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served to the Trustee. 

        The
Issuers may also from time to time designate one or more other offices or agencies where the Notes may be surrendered or presented for any of such purposes and may from time to time
rescind such designations. The Issuers will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. 

        Section 4.03.    Existence.    The Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its existence and the existence of each of its Restricted Subsidiaries in accordance with their respective organizational documents, and the material rights, licenses and
franchises of the Company and each Restricted Subsidiary, provided that the Company is not required to preserve any such right, license or franchise, or
the existence of any Restricted Subsidiary, if the maintenance or preservation thereof is no longer desirable in the conduct of the business of the Company and its Restricted Subsidiaries taken as a
whole; and provided further that this Section does not prohibit any transaction otherwise permitted by Section 4.12 or Article 5. 

        Section 4.04.    Payment of Taxes and other Claims.    The Company will pay or discharge, and cause each of its
Subsidiaries to pay or discharge before the same become delinquent (i) all material taxes, assessments and governmental charges levied or imposed upon the Company or any Subsidiary or its
income or profits or property, and (ii) all material lawful claims for labor, materials and supplies that, if unpaid, might by law become a Lien upon the property of the Company or any
Subsidiary, other than any such tax, assessment, charge or claim the amount, applicability or validity of which is being contested in good faith by appropriate proceedings and for which adequate
reserves have been established. 

        Section 4.05.    Maintenance of Properties and Insurance.    (a) The Company will cause all properties
used or useful in the conduct of its business or the business of any of its Restricted Subsidiaries to be maintained and kept in good condition, repair and working order as in the judgment of the
Company may be necessary so that the business of the Company and its Restricted Subsidiaries may be properly and advantageously conducted at all times;  provided that nothing in this Section prevents the
Company or any Restricted Subsidiary from discontinuing the use, operation or maintenance of any of
such properties or disposing of any of them, if such discontinuance or disposal is, in the judgment of the Company, desirable in the conduct of the business of the Company and its Restricted
Subsidiaries taken as a whole. 

        (b)   The
Company will provide or cause to be provided, for itself and its Restricted Subsidiaries, insurance (including appropriate self-insurance) against loss
or damage of the kinds customarily insured against by corporations similarly situated and owning like properties, including, but not limited to, products liability insurance and public liability
insurance, with reputable insurers, in such amounts, with such deductibles and by such methods as are customary for corporations similarly situated in the industry in which the Company and its
Restricted Subsidiaries are then conducting business. 

37

 

  
        Section 4.06.    Limitation on Debt and Disqualified Stock or Preferred Stock.    (a) The Company

        (1)   will
not, and will not permit any of its Restricted Subsidiaries to, Incur any Debt; and 

        (2)   will
not, and will not permit any Restricted Subsidiary to, Incur any Disqualified Stock, and will not permit any of its Restricted Subsidiaries to Incur any Preferred
Stock (other than Disqualified Stock or Preferred Stock of Restricted Subsidiaries held by the Company or a Restricted Subsidiary, so long as it is so held); 

provided that the Company or any Restricted Subsidiary may Incur Debt (including Acquired Debt) and the Company or any Restricted Subsidiary may Incur
Disqualified Stock and any Restricted Subsidiary may Incur Preferred Stock if, on the date of the Incurrence, after giving effect to the Incurrence and the receipt and application of the proceeds
therefrom, the Fixed Charge Coverage Ratio is not less than 2.0:1 (the "Fixed Charge Coverage Ratio Test");  provided that the maximum aggregate principal
amount of Debt, Disqualified Stock or Preferred Stock that non-Guarantors may incur under this
paragraph (a) is $10.0 million outstanding at any time. 

        (b)   Notwithstanding
the foregoing, the Company and, to the extent provided below, any Restricted Subsidiary may Incur the following ("Permitted
Debt"): 

        (1)   Debt
of the Company and the Guarantors pursuant to Credit Facilities; provided that the aggregate principal amount at any
time outstanding does not exceed the greater of (i) $450.0 million less any amount of such Debt permanently repaid as provided under Section 4.12 and (ii) 35% of
Consolidated Net Tangible Assets; 

        (2)   Debt
of the Company or any Restricted Subsidiary owed to the Company or any Restricted Subsidiary so long as such Debt continues to be owed to the Company or a
Restricted Subsidiary and which, if the obligor is an Issuer or a Guarantor and if the Debt is owed to a non-Guarantor, is subordinated in right of payment to the Notes; 

        (3)   Debt
of the Issuers pursuant to the Notes (other than Additional Notes) or any Exchange Notes and Debt of any Guarantor pursuant to a Note Guaranty of the Notes
(including Additional Notes) or any Exchange Notes; 

        (4)   Debt
constituting an extension or renewal of, replacement of, or substitution for, or issued in exchange for, or the net proceeds of which are used to repay, redeem,
repurchase, replace, refinance or refund, including by way of defeasance (all of the above, for purposes of this clause, "refinance") then outstanding
Debt ("Permitted Refinancing Debt") in an amount not to exceed the principal amount of the Debt so refinanced, plus premiums, fees and expenses;
provided that 

        (A)  in
case the Debt to be refinanced is subordinated in right of payment to the Notes, the new Debt, by its terms or by the terms of any agreement or instrument pursuant to
which it is outstanding, is expressly made subordinate in right of payment to the Notes at least to the extent that the Debt to be refinanced is subordinated to the Notes, 

        (B)  the
new Debt does not have a Stated Maturity prior to the Stated Maturity of the Debt to be refinanced, and the Average Life of the new Debt is at least equal to the
remaining Average Life of the Debt to be refinanced, 

        (C)  in
no event may Debt of an Issuer or any Guarantor be refinanced pursuant to this clause by means of any Debt of any Restricted Subsidiary that is not a Guarantor or the
Co-Issuer; and 

        (D)  Debt
Incurred pursuant to clauses (1), (2), (5), (6), (7) and (11) through (19) may not be refinanced pursuant to this clause but Debt
incurred pursuant to clause (a) or any other clause of this paragraph (b) may be refinanced under this clause; 

38

 

        (5)   Hedging
Agreements of the Company or any Restricted Subsidiary entered into in the ordinary course of business and not for speculation; 

        (6)   Debt
of the Company or any Restricted Subsidiary in connection with one or more standby or trade-related letters of credit, performance bonds, bid bonds, appeal bonds,
bankers acceptances, insurance obligations, surety bonds, completion guarantees or other similar bonds and obligations, including self-bonding arrangements, issued by the Company or a
Restricted Subsidiary in the ordinary course of business or pursuant to self-insurance obligations and not in connection with the borrowing of money or the obtaining of advances; 

        (7)   Debt
arising from agreements of the Company or any Restricted Subsidiaries providing for indemnification, adjustment of purchase price, earnouts or similar obligations,
in each case, incurred or assumed in connection with the acquisition or disposition of any business, assets or any Subsidiary; 

        (8)   Acquired
Debt, provided that after giving effect to the Incurrence thereof, either (a) the Company could Incur at least $1.00 of Debt under the Fixed Charge
Coverage Ratio Test or (b) the Fixed Charge Coverage Ratio of the Company and the Restricted Subsidiaries on a consolidated basis is greater than immediately prior to such Incurrence; 

        (9)   Debt
of the Company or any Restricted Subsidiary outstanding on the Issue Date (and, for purposes of clause (4)(D), not otherwise constituting Permitted Debt); 

        (10) Debt
of the Company or any Restricted Subsidiary (A) in existence on the date any Person becomes a Restricted Subsidiary as a result of an Acquisition or other
acquisition by the Company and its other Restricted Subsidiaries or (B) incurred to finance the acquisition, construction or improvement of any assets, including Capital Lease Obligations and
any Debt assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets before the acquisition thereof; provided that the aggregate principal amount at any time
outstanding of any Debt Incurred pursuant to this clause, including all Permitted Refinancing Debt Incurred to refund, refinance or replace any Debt Incurred pursuant to this clause (10), may
not exceed the greater of (x) $100.0 million or (y) 8% of Consolidated Net Tangible Assets; 

        (11) Debt
of the Issuers or any Guarantor consisting of Guarantees (or co-issuances in the case of the Co-Issuer) of Debt of the Issuers or any
Guarantor otherwise permitted under this covenant; 

        (12) shares
of Preferred Stock of a Restricted Subsidiary issued to the Company or another Restricted Subsidiary; provided that any subsequent transfer of any Capital Stock
or any other event which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer
of any such shares of Preferred Stock (except to the Company or another Restricted Subsidiary) shall be deemed, in each case, to be an issue of Preferred Stock; 

        (13) Debt
arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course
of business; 

        (14) any
Permitted Receivables Financing in an aggregate principal amount at any time outstanding not to exceed $100.0 million; 

        (15) Debt
Incurred by any Foreign Subsidiary for general corporate purposes in an aggregate principal amount not to exceed, at any one time outstanding and together with any
other Debt incurred under this clause (15), $10.0 million; 

        (16) Debt
of the Company or any Restricted Subsidiary consisting of (i) the financing of insurance premiums or (ii) take-or-pay
obligations contained in supply or other arrangements; 

39

 

        (17) Debt
of the Company or any Restricted Subsidiary Incurred on or after the Issue Date not otherwise permitted hereunder in an aggregate principal amount at any time
outstanding not to exceed the greater of (x) $100.0 million and (y) 8% of Consolidated Net Tangible Assets; 

        (18) Guarantees
by the Company or any Restricted Subsidiary of borrowings by current or former officers, managers, directors, employees or consultants in connection with the
purchase of Equity Interests of Holdings by any such person in an aggregate principal amount not to exceed $2.5 million at any one time outstanding; and 

        (19) for
so long as Holdings is paying certain obligations on behalf of the Company and its Subsidiaries, Guarantees by the Company or any Restricted Subsidiary of
obligations relating to the establishment of one or more commercial bank accounts of Holdings used to pay obligations solely under the Transaction Documents or otherwise of, or on behalf of, the
Company and its Subsidiaries or in connection with Holdings' role as the managing member of the Company, in an aggregate amount not to exceed $5.0 million at any time outstanding. 

        (c)   For
purposes of determining compliance with this covenant, in the event that an item of Debt or Disqualified Stock or Preferred Stock meets the criteria of more than one
of the categories of Permitted Debt described in clauses (1) through (19) above or is entitled to be incurred pursuant to paragraph (a) of this covenant, the Company shall, in its
sole discretion, classify such item in any manner that complies with this covenant, and such Debt or Disqualified Stock or Preferred Stock will be treated as having been incurred pursuant to the
clauses of Permitted Debt or paragraph (a) hereof, as the case may be, designated by the Company, and from time to time may change the classification of an item of Debt (or any portion thereof)
to any other type of Debt described in Section 4.06 at any time, including pursuant to clause (a); provided that Debt under the Credit
Agreement outstanding on the Issue Date shall be deemed at all times to be incurred under clause (1) of Permitted Debt. 

        (d)   Accrual
of interest or dividends, the accretion of accreted value, the accretion or amortization of original issue discount and the payment of interest or dividends in
the form of additional Debt, Disqualified Stock or Preferred Stock of the same class will not be deemed to be an Incurrence of Debt, Disqualified Stock or Preferred Stock for purposes of
Section 4.06 but will be included in subsequent calculations of the amount of outstanding Debt for purposes of Incurring future Debt; provided
that such accrual, accretion, amortization or payment is included in the calculation of Fixed Charges. 

        (e)   Neither
the Issuers nor any Guarantor may Incur any Debt that is subordinated in right of payment to other Debt of the Issuers or the Guarantor unless such Debt is also
subordinated in right of payment to the Notes or the relevant Note Guaranty on substantially identical terms. 

        Section 4.07.    Limitation on Restricted Payments.    (a) The Company will not, and will not permit any
Restricted Subsidiary to, directly or indirectly (the payments and other actions described in the following clauses being collectively "Restricted
Payments"; provided that indemnity payments under the Master Separation Agreement shall not be deemed Restricted Payments even
if calculated with reference to percentage equity ownership of the Company or Holdings): 

          (i)  declare
or pay any dividend or make any distribution on its Equity Interests (other than dividends or distributions paid in the Company's Qualified Equity Interests)
held by Persons other than the Issuer or any of its Restricted Subsidiaries; 

         (ii)  purchase,
redeem or otherwise acquire or retire for value any Equity Interests of the Company or Holdings held by Persons other than the Company or any of its
Restricted Subsidiaries; 

        (iii)  repay,
redeem, repurchase, defease or otherwise acquire or retire for value, or make any payment on or with respect to, any Subordinated Debt (other than a payment of
interest or 

40

 

principal
at Stated Maturity thereof or the purchase, repurchase or other acquisition of any Subordinated Debt purchased in anticipation of satisfying a scheduled maturity sinking fund or amortization
or other installment obligation, in each case due within one year of the date of acquisition); or 

        (iv)  make
any Investment other than a Permitted Investment; 

unless,
at the time of, and after giving effect to, the proposed Restricted Payment: 

        (1)   no
Default has occurred and is continuing, 

        (2)   the
Company could Incur at least $1.00 of Debt under the Fixed Charge Coverage Ratio Test, and 

        (3)   the
aggregate amount expended for all Restricted Payments made on or after the Issue Date would not, subject to paragraph (c), exceed the sum of 

        (A)  50%
of the aggregate amount of the Consolidated Net Income (or, if the Consolidated Net Income is a loss, minus 100% of the amount of the loss) accrued on a cumulative
basis during the period, taken as one accounting period, beginning on the first day of the fiscal quarter in which the Issue Date occurs and ending on the last day of the Company's most recently
completed fiscal quarter for which internal financial statements are available, plus 

        (B)  subject
to paragraph (c), the aggregate net proceeds, including cash proceeds and the Fair Market Value of property other than cash, received by the Company
(other than from a Subsidiary) after the Issue Date 

          (i)  from
the issuance and sale of its Qualified Equity Interests, including by way of issuance of its Disqualified Equity Interests or Debt to the extent since converted
into Qualified Equity Interests of the Company, or 

         (ii)  as
a contribution to its common equity, plus 

        (C)  an
amount equal to the sum, for all Unrestricted Subsidiaries, of the following: 

        (x)   the
cash return, after the Issue Date, on Investments in an Unrestricted Subsidiary made after the Issue Date pursuant to this paragraph (a) as a result of any
sale for cash, repayment, redemption, liquidating distribution or other cash realization (not included in Consolidated Net Income), plus 

        (y)   the
portion (proportionate to the Company's equity interest in such Subsidiary) of the fair market value of the assets less liabilities of an Unrestricted Subsidiary at
the time such Unrestricted Subsidiary is designated a Restricted Subsidiary, 

        not
to exceed, in the case of any Unrestricted Subsidiary, the amount of Investments made after the Issue Date by the Company and its Restricted Subsidiaries in such Unrestricted
Subsidiary pursuant to this paragraph (a), plus 

        (D)  the
cash return, after the Issue Date, on any other Investment made after the Issue Date pursuant to this paragraph (a), as a result of any sale for cash,
repayment, redemption, liquidating distribution or other cash realization (not included in Consolidated Net Income), not to exceed the amount of such Investment so made; plus 

        (E)  any
amount which previously qualified as a Restricted Payment made under paragraph (a) on account of any Guarantee entered into by the Company or any Restricted
Subsidiary; provided that such Guarantee has not been called upon and the obligation arising under such Guarantee no longer exists. 

41

 

The
amount of any Restricted Payment, if other than in cash, will be the Fair Market Value of the assets or securities proposed to be transferred or issued to or by the Company or such Restricted
Subsidiary, as the case may be. 

        (b)   The
foregoing will not prohibit: 

        (1)   the
payment of any dividend or distribution within 60 days after the date of declaration thereof if, at the date of declaration, such payment would comply with
paragraph (a); 

        (2)   dividends
or distributions by a Restricted Subsidiary payable, on a pro rata basis or on a basis more favorable to the Company, to all holders of any class of Equity
Interests of such Restricted Subsidiary a majority of which is held, directly or indirectly through Restricted Subsidiaries, by the Company; 

        (3)   the
repayment, redemption, repurchase, defeasance or other acquisition or retirement for value of Subordinated Debt with the proceeds of, or in exchange for, Permitted
Refinancing Debt; 

        (4)   the
purchase, redemption or other acquisition or retirement for value of Equity Interests of the Company or Holdings in exchange for, or out of the proceeds of a
substantially concurrent offering (with any offering within 45 days deemed as substantially concurrent) of, Qualified Equity Interests of the Company or of a contribution to the common equity
of the Company, including a contribution of the capital stock of Holdings; 

        (5)   the
repayment, redemption, repurchase, defeasance or other acquisition or retirement of Subordinated Debt of the Issuers or any Guarantor in exchange for, or out of the
proceeds of, a cash or non-cash contribution to the capital of the Company or a substantially concurrent offering (with any offering within 45 days deemed as substantially
concurrent) of, Qualified Equity Interests of the Company; 

        (6)   any
Investment acquired as a capital contribution to the Company, or made in exchange for, or out of the net cash proceeds of, a substantially concurrent offering (with
any offering within 45 days deemed as substantially concurrent) of Qualified Equity Interests of the Company; 

        (7)   amounts
paid to Holdings for the purchase, redemption or other acquisition or retirement for value of Equity Interests of Holdings held by current officers, directors or
employees or former officers, directors or employees (or their estates or beneficiaries under their estates or their immediate family members), of Holdings, the Company or any of its Restricted
Subsidiaries upon death, disability, retirement, severance or termination of employment or pursuant to any agreement under which the Equity Interests were issued, and Investments in the Equity
Interests of Holdings in connection with certain purchases or redemptions of Equity Interests held by officers, directors and employees or any Plan;  provided that the aggregate cash consideration paid
therefor in any twelve-month period after the Issue Date does not exceed an aggregate amount of
$5.0 million; 

        (8)   the
repayment, redemption, repurchase, defeasance or other acquisition or retirement for value of any Subordinated Debt or Disqualified Stock at a purchase price not
greater than 101% of the principal amount thereof or liquidation preference in the event of (x) a change of control pursuant to a provision no more favorable to the Holders thereof than
Section 4.11 or (y) an asset sale pursuant to a provision no more favorable to the Holders thereof than Section 4.12, provided
that, in each case, prior to the repurchase the Issuers have made an Offer to Purchase and repurchased all Notes issued under the Indenture that were validly tendered for payment in connection with
the offer to purchase; and 

        (9)   payments
(i) of Permitted Tax Distributions to Holdings and other equity holders of the Issuer, (ii) of other payments to Holdings and other equity holders
of the Issuer (but only to the extent necessary) to satisfy amounts required to be paid by Holdings under the Tax Receivable 

42

 

Agreement
in an aggregate amount under this clause (ii) not to exceed $30.0 million and (iii) to Holdings for general administrative costs and expenses incurred by Holdings as and
when incurred and not intended to be for the benefit of any entity directly or indirectly owned by Holdings other than the Company; 

        (10) dividends,
distributions or other payments to Holdings (and other equity holders of the Company on a pro-rata basis) to fund dividends on Holdings' common
stock in an annual amount per share (adjusted appropriately to reflect subsequent stock splits, subdivisions and reclassifications) equal to (a) prior to December 15, 2013, 1.5% and
(b) thereafter, 3%, of the per-share price to the public in the initial public offering of Holdings made concurrently with the offering of the Notes; 

        (11) payments
to Holdings to fund cash payments in lieu of fractional shares upon exercise of options or warrants or conversion or exchange of convertible securities,
repurchases of Equity Interests deemed to occur upon the exercise of options, warrants or other convertible securities to the extent such securities represent a portion of the exercise price of such
options, warrants or other convertible securities and repurchases of Equity Interests in connection with the withholding of a portion of the Equity Interests granted or awarded to a director or an
employee to pay for the taxes payable by such director or employee upon such grant or award; 

        (12) Restricted
Payments in an aggregate amount not to exceed $30.0 million; 

        (13) Restricted
Payments made to consummate the Transactions on or about the Issue Date; and 

        (14) the
Company may make a one-time payment to Holdings or Parent in the amount of a required working capital-based adjustment made in the time period provided
for in the Transaction Documents; 

provided that, in the case of clauses (6), (7), (8), (10) and (12), no Default has occurred and is continuing or would occur as a result
thereof. 

        (c)   Proceeds
of the issuance of Qualified Equity Interests will be included under clause (3) of paragraph (a) only to the extent they are not applied as
described in clause (4), (5) or (6) of paragraph (b). Restricted Payments permitted pursuant to clause (2), (3), (4), (5), (6), (9), (13) or (14) will
not be included in making the calculations under clause (3) of paragraph (a). 

        (d)   For
purposes of determining compliance with this covenant, in the event that a Restricted Payment permitted pursuant to this covenant or a Permitted Investment meets the
criteria of more than one of the categories of Restricted Payment described in clauses (1) through (14) above or one or more clauses of the definition of Permitted Investments, the
Company shall be permitted to classify such Restricted Payment or Permitted Investment on the date it is made, or later reclassify all or a portion of such Restricted Payment or Permitted Investment,
in any manner that complies with this covenant, and such Restricted Payment or Permitted Investment shall be treated as having been made pursuant to only one of such clauses of this
Section 4.07 or of the definition of Permitted Investments. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment, less any amount paid, repaid, returned, distributed or otherwise received in cash in respect of such Investment. 

        Section 4.08.    Limitation on Liens.    The Company will not, and will not permit any Restricted Subsidiary
to, directly or indirectly, incur or permit to exist any Lien of any nature whatsoever on any of its properties or assets, whether owned at the Issue Date or thereafter acquired, to secure any Debt
other than Permitted Liens, without effectively providing that the Notes are secured equally and ratably with (or, if the obligation to be secured by the Lien is subordinated in right of payment to
the Notes or any Note Guaranty, prior to) the obligations so secured for so long as such obligations are so secured. 

43

 

        Section 4.09.    Limitation on Dividend and other Payment Restrictions Affecting Restricted Subsidiaries.
    (a) Except as provided in paragraph (b), the Company will not, and will not permit any Restricted Subsidiary to, create or otherwise cause or permit to exist or become
effective any consensual encumbrance or restriction of any kind on the ability of any Restricted Subsidiary to 

        (1)   pay
dividends or make any other distributions on its Equity Interests to the Issuers or any Restricted Subsidiary, 

        (2)   pay
any Debt owed to the Company or any other Restricted Subsidiary, 

        (3)   make
loans or advances to the Company or any other Restricted Subsidiary, or 

        (4)   transfer
any of its property or assets to the Company or any other Restricted Subsidiary. 

        (b)   The
provisions of paragraph (a) do not apply to any encumbrances or restrictions 

        (1)   existing
on the Issue Date in the Credit Agreement, the Indenture or any other agreements in effect on the Issue Date, and any amendments, modifications, restatements,
extensions, renewals, replacements or refinancings of any of the foregoing; provided that the encumbrances and restrictions in the amendment,
modification, restatement, extension, renewal, replacement or refinancing are, taken as a whole, no less favorable in any material respect to the Noteholders than the encumbrances or restrictions
being amended, modified, restated, extended, renewed, replaced or refinanced; 

        (2)   existing
pursuant to the Indenture, the Notes or the Note Guaranty; 

        (3)   existing
under or by reason of applicable law, rule, regulation or order; 

        (4)   existing
under any agreements or other instruments of, or with respect to 

        (A)  any
Person, or the property or assets of any Person, at the time the Person is acquired by the Company or any Restricted Subsidiary, or 

        (B)  any
Unrestricted Subsidiary at the time it is designated or is deemed to become a Restricted Subsidiary, 

which
encumbrances or restrictions (i) are not applicable to any other Person or the property or assets of any other Person and (ii) were not put in place in anticipation of such event
and any amendments, modifications, restatements, extensions, renewals, replacements or refinancings of any of the foregoing, provided that the
encumbrances and restrictions in the amendment, modification, restatement, extension, renewal, replacement or refinancing are, taken as a whole, no less favorable in any material respect to the
Noteholders than the encumbrances or restrictions being amended, modified, restated, extended, renewed, replaced or refinanced; 

        (5)   of
the type described in clause (a)(4) arising or agreed to (i) in the ordinary course of business that restrict in a customary manner the subletting,
assignment or transfer of any property or asset that is subject to a lease, license, conveyance or similar contract, including with respect to intellectual property, (ii) that restrict in a
customary manner, pursuant to provisions in partnership agreements, limited liability company organizational governance documents, joint venture agreements and other similar agreements, the transfer
of ownership interests in, or assets of, such partnership, limited liability company, joint venture or similar Person or (iii) by virtue of any Lien on, or agreement to transfer, option or
similar right with respect to any property or assets of, the Company or any Restricted Subsidiary; 

        (6)   with
respect to a Restricted Subsidiary and imposed pursuant to an agreement that has been entered into for the sale or disposition of the Capital Stock of, or property
and assets of, the Restricted Subsidiary pending closing of such sale or disposition that is permitted by the Indenture; 

44

 

        (7)   consisting
of customary restrictions pursuant to any Permitted Receivables Financing; 

        (8)   existing
pursuant to Permitted Refinancing Debt; provided that the encumbrances and restrictions contained in the
agreements governing such Permitted Refinancing Debt are, taken as a whole, no less favorable in any material respect to the Noteholders than those contained in the agreements governing the Debt being
refinanced; 

        (9)   consisting
of restrictions on cash or other deposits or net worth imposed by customers, suppliers or required by insurance surety bonding companies, in each case, in the
ordinary course of business; 

        (10) existing
pursuant to purchase money obligations for property acquired in the ordinary course of business and Capital Leases or operating leases or Specified Coal
Agreements or Mining Leases that
impose encumbrances or restrictions discussed in clause (a)(4) above on the property so acquired or covered thereby; 

        (11) existing
pursuant to any Debt Incurred by, or other agreement of, a Foreign Subsidiary, which restrictions are customary for a financing or agreement of such type; 

        (12) existing
pursuant to customary provisions in joint venture, operating or similar agreements, asset sale agreements and stock sale agreements required in connection with
the entering into of such transaction; or 

        (13) existing
pursuant to any agreement or instrument relating to any Debt permitted to be Incurred subsequent to the Issue Date by Section 4.06 (A) if the
encumbrance and restrictions contained in any such agreement or instrument are, taken as a whole, no less favorable in any material respect to the Noteholders than the encumbrances and restrictions
contained in the Credit Agreement in effect as of the Issue Date (as determined in good faith by the Company) or (B) such encumbrance or restriction is, taken as a whole, no less favorable in
any material respect to the Noteholders than is customary in comparable financings (as determined in good faith by the Company) and the Company determines in good faith that such encumbrance or
restriction will not materially affect the Company's ability to make principal or interest payments on the Notes as and when they become due. 

        Section 4.10.    Guaranties by Restricted Subsidiaries.    If and for so long as any Restricted Subsidiary,
directly or indirectly, Guarantees any Debt under the Credit Agreement, such Restricted Subsidiary shall provide a Note Guaranty within 15 days, and, if the guaranteed Debt is Subordinated
Debt, the Guarantee of such guaranteed Debt must be subordinated in right of payment to the Note Guaranty to at least the extent that the guaranteed Debt is subordinated to the Notes. 

        A
Restricted Subsidiary required to provide a Note Guaranty shall execute a supplemental indenture in the form of Exhibit B, and deliver an Opinion of Counsel to the Trustee to
the effect that the supplemental indenture has been duly authorized, executed and delivered by the Restricted Subsidiary and constitutes a valid and binding obligation of the Restricted Subsidiary,
enforceable against the Restricted Subsidiary in accordance with its terms (subject to customary exceptions). 

        Section 4.11.    Repurchase of Notes Upon a Change of Control.    Not later than 30 days following a
Change of Control, the Issuers will make an Offer to Purchase all outstanding Notes of both series at a purchase price equal to 101% of the principal amount of the Notes plus accrued and unpaid
interest to the date of purchase; provided, however, that notwithstanding the occurrence of a Change of Control, the Issuers shall not be obligated to
purchase the Notes of a series pursuant to this section in the event that, prior to the requirement to commence the Offer to Purchase the Issuers have mailed the notice to exercise its right to redeem
all the Notes of such series under the terms of Section 3.01 and redeemed the Notes of such series in accordance with such notice. If the Offer to Purchase is sent prior to the 

45

 

occurrence
of the Change of Control, it may be conditioned upon consummation of the Change of Control. 

        Section 4.12.    Limitation on Asset Sales.    (a) The Company will not, and will not permit any
Restricted Subsidiary to, make any Asset Sale unless the following conditions are met: 

        (1)   The
Asset Sale is for at least Fair Market Value. 

        (2)   At
least 75% of the consideration received by the Company or its Restricted Subsidiaries consists of cash or Cash Equivalents. 

        For
purposes of this clause (2): 

        (a)   the
assumption by the purchaser of Debt or other obligations or liabilities (as shown on the Company's most recent balance sheet or in the footnotes thereto) (other than
Subordinated Debt or other obligations or liabilities subordinated in right of payment to the Notes) of the Company or a Restricted Subsidiary pursuant to operation of law or a customary novation
agreement, 

        (b)   Additional
Assets, 

        (c)   instruments,
notes, securities or other obligations received by the Company or such Restricted Subsidiary from the purchaser that are promptly, but in any event within
90 days of the closing, converted by the Company or such Restricted Subsidiary to cash or Cash Equivalents, to the extent of the cash or Cash Equivalents actually so received, and 

        (d)   any
Designated Non-cash Consideration received by the Company or such Restricted Subsidiary in the Asset Sale having an aggregate Fair Market Value, taken
together with all other Designated Non-cash Consideration received pursuant to this clause (d) that is at that time outstanding, not to exceed the greater of
(x) $12.5 million and (y) 1.0% of the Company's Consolidated Net Tangible Assets at the time of receipt of such outstanding Designated Non-cash Consideration (with the
Fair Market Value of each item of Designated Non-cash Consideration being measured at the time received and without giving effect to subsequent changes in value), 

shall
in each case be considered cash or Cash Equivalents. 

        (3)   Within
360 days after the receipt of any Net Cash Proceeds from an Asset Sale, the Net Cash Proceeds may be used 

        (A)  to
permanently repay secured Debt of the Company or a Guarantor or any Debt of a Restricted Subsidiary that is not the Co-Issuer or a Guarantor owing to a
Person other than the Company or a Restricted Subsidiary and, in each case, in the case of a revolving credit, permanently reduce the commitment thereunder by such amount, or 

        (B)  to
acquire Additional Assets or to make capital expenditures in a Permitted Business. 

A
binding commitment to make an acquisition referred to in clause (B) shall be treated as a permitted application of the Net Cash Proceeds from the date of such commitment;  provided that
(x) such investment is consummated within 360 days after the earlier of the making of such commitment and the end of the
360 day period referred to in the first sentence of this clause (3) (it being understood that if such commitment is for an LBA, LBM or any other purchase, lease or other arrangement for
mineral or surface rights, the Net Cash Proceeds need only be applied as and when installments are due and payable) and (y) if such acquisition is not consummated within the period set forth in
subclause (x) or such binding commitment is terminated, the Net Cash Proceeds not so applied will be deemed to be Excess Proceeds (as defined below). 

46

 

        (4)   The
Net Cash Proceeds of an Asset Sale not applied pursuant to clause (3) within 360 days of the Asset Sale constitute "Excess
Proceeds". Excess Proceeds of less than $25.0 million will be carried forward and accumulated. When the aggregate amount of the accumulated Excess Proceeds equals or
exceeds such amount, the Issuers must, within 30 days, make an Offer to Purchase Notes of both series having a principal amount equal to 

        (A)  accumulated
Excess Proceeds, multiplied by 

        (B)  a
fraction (x) the numerator of which is equal to the outstanding aggregate principal amount of the Notes of both series and (y) the denominator of which
is equal to the outstanding aggregate principal amount of the Notes of both series and all pari passu Debt similarly required to be repaid, redeemed or
tendered for in connection with the Asset Sale, 

rounded
down to the nearest $1,000. The purchase price for the Notes will be 100% of the principal amount plus accrued interest to the date of purchase. If the Offer to Purchase is for less than all
of the outstanding Notes and Notes in an aggregate principal amount in excess of the purchase amount are tendered and not withdrawn pursuant to the offer, the Issuers will purchase Notes of both
series having an aggregate principal amount equal to the purchase amount on a pro rata basis, with adjustments so that only Notes in multiples of $1,000 principal amount (and in a minimum amount of
$2,000) will be purchased. Upon completion of the Offer to Purchase, Excess Proceeds will be reset at zero, and any Excess Proceeds remaining after consummation of the Offer to Purchase may be used
for any purpose not otherwise prohibited by the Indenture. 

        Section 4.13.    Limitation on Transactions with Affiliates.    (a) The Company will not, and will not
permit any Restricted Subsidiary to, directly or indirectly, enter into, renew or extend any transaction or arrangement including the purchase, sale, lease or exchange of property or assets, or the
rendering of any service with any Affiliate of the Company or any Restricted Subsidiary (a "Related Party Transaction") involving aggregate
consideration in excess of $2.0 million, unless the Related Party Transaction is on fair and reasonable terms that are not materially less favorable (as reasonably determined by the Company) to
the Company or the relevant Restricted Subsidiary than those that could be obtained in a comparable arm's-length transaction with a Person that is not an Affiliate of the Company. 

        (b)   Any
Related Party Transaction or series of Related Party Transactions with an aggregate value in excess of $15.0 million must first be approved by a majority of
the Board of Directors who are disinterested in the subject matter of the transaction pursuant to a Board Resolution. Prior to entering into any Related Party Transaction or series of Related Party
Transactions with an aggregate value in excess of $75.0 million, the Company must in addition obtain a favorable written opinion from a nationally recognized investment banking firm as to the
fairness of the transaction to the Company and its Restricted Subsidiaries from a financial point of view. 

        (c)   The
foregoing paragraphs do not apply to 

        (1)   any
transaction between the Company and any of its Restricted Subsidiaries or between Restricted Subsidiaries of the Company; 

        (2)   the
payment of reasonable and customary regular fees to directors of the Company or Holdings who are not employees of the Company or Holdings; 

        (3)   any
Restricted Payments of a type described in Section 4.07(a)(i) or (ii) if permitted by that covenant; 

        (4)   any
issuance of Equity Interests (other than Disqualified Equity Interests) of the Company; 

47

 

        (5)   loans
or advances to officers, directors or employees of the Company or Holdings in the ordinary course of business of the Company or its Restricted Subsidiaries or
guarantees in respect thereof or otherwise made on their behalf (including payment on such guarantees) and only to the extent permitted by applicable law, including the Sarbanes-Oxley Act of 2002; 

        (6)   any
employment, consulting, service or termination agreement, or reasonable and customary indemnification arrangements, entered into by the Company or any of its
Restricted Subsidiaries with officers and employees of the Company or any of its Restricted Subsidiaries or Holdings that are Affiliates of the Company and the payment of compensation to such officers
and employees (including amounts paid pursuant to employee benefit plans, employee stock option or similar plans) so long as such agreement has been entered into in the ordinary course of business; 

        (7)   transactions
with customers, clients, suppliers, joint venture partners or purchasers or sellers of goods or services (including pursuant to joint venture agreements) in
the ordinary course of business on terms at least as favorable as might reasonably have been obtained at such time from a Person that is not an Affiliate of the Company, as determined in good faith by
the Company; 

        (8)   transactions
arising under any contract, agreement, instrument or arrangement in effect on the Issue Date, as amended, modified or replaced from time to time so long as
the amended, modified or new agreements, taken as a whole at the time such agreements are executed, are not materially less favorable to the Company and its Restricted Subsidiaries than those in
effect on the date of the Indenture; 

        (9)   transactions
entered into as part of a Permitted Receivables Financing; 

        (10) transactions
with any Affiliate in their capacity as a holder of Debt or Equity Interests; provided that such Affiliate owns less than a majority of the interests of
the relevant class and is treated the same as other holders; 

        (11) payments
to or from, and transactions with, any joint ventures or similar arrangements (including, without limitation, any cash management activities relating thereto);  provided that such arrangements are on
terms no less favorable to the Company and its Restricted Subsidiaries, on the one hand, than to the relevant
joint venture partner and its Affiliates, on the other hand, taking into account all related agreements and transactions entered in by the Company and its Restricted Subsidiaries, on the one hand, and
the relevant joint venture partner and its Affiliates, on the other hand; and 

        (12) letter
of credit reimbursement obligations in connection with letter of credit arrangements historically provided by Parent and its Affiliates on behalf of the Company
in the ordinary course of business. 

        Section 4.14.    Limitation on Business of the Co-Issuer.    The Co-Issuer may not hold
any material assets, become liable for any material obligations or engage in any significant business activities; provided that it may be a
co-obligor with respect to the Notes or any other Debt issued by the Company, and may engage in any activities directly related thereto or necessary in connection therewith. The
Co-Issuer shall be a Wholly-Owned Subsidiary of the Company at all times. 

        Section 4.15.    Designation of Restricted and Unrestricted Subsidiaries.    (a) The Company may
designate any Subsidiary, including a newly acquired or created Subsidiary (other than the Co-Issuer), to be an Unrestricted Subsidiary if it meets the following qualifications and the
designation would not cause a Default. 

        (1)   Such
Subsidiary does not own any Capital Stock of the Company or any Restricted Subsidiary or hold any Debt of, or any Lien on any property of, the Company or any
Restricted Subsidiary. 

48

 

        (2)   At
the time of the designation, the designation would be permitted under Section 4.07. 

        (3)   To
the extent the Debt of the Subsidiary is not Non-Recourse Debt, any Guarantee or other credit support thereof by the Company or any Restricted Subsidiary
is permitted under Section 4.06 and Section 4.07. 

        (4)   The
Subsidiary is not party to any transaction or arrangement with the Company or any Restricted Subsidiary that would not be permitted under Section 4.13 after
giving effect to the exceptions thereto. 

        (5)   Neither
the Company nor any Restricted Subsidiary has any obligation to subscribe for additional Equity Interests of the Subsidiary or to maintain or preserve its
financial condition or cause it to achieve specified levels of operating results, except to the extent permitted by Section 4.06 and Section 4.07. 

Once
so designated the Subsidiary will remain an Unrestricted Subsidiary, subject to paragraph (b). 

        (b)   (1)
A Subsidiary previously designated an Unrestricted Subsidiary which fails to meet the qualifications set forth in paragraph (a) will be deemed to become at
that time a Restricted Subsidiary, subject to the consequences set forth in paragraph (d). 

        (2)   The
Board of Directors may designate an Unrestricted Subsidiary to be a Restricted Subsidiary if the designation would not cause a Default. 

        (c)   Upon
a Restricted Subsidiary becoming an Unrestricted Subsidiary, 

        (1)   all
existing Investments of the Company and the Restricted Subsidiaries therein (valued at the Company's proportional share of the fair market value of its assets less
liabilities) will be deemed made at that time; 

        (2)   all
existing Capital Stock or Debt of the Company or a Restricted Subsidiary held by it will be deemed Incurred at that time, and all Liens on property of the Company or
a Restricted Subsidiary held by it will be deemed incurred at that time; 

        (3)   all
existing transactions between it and the Company or any Restricted Subsidiary will be deemed entered into at that time; 

        (4)   it
shall be released at that time from its Note Guaranty, if any; and 

        (5)   it
will cease to be subject to the provisions of the Indenture as a Restricted Subsidiary. 

        (d)   Upon
an Unrestricted Subsidiary becoming, or being deemed to become, a Restricted Subsidiary, 

        (1)   all
of its Debt and Disqualified Stock or Preferred Stock will be deemed Incurred at that time for purposes of Section 4.06, but will not be considered the sale
or issuance of Equity Interests for purposes of Section 4.12; 

        (2)   Investments
therein previously charged under Section 4.07 will be credited thereunder; 

        (3)   it
may be required to issue a Note Guaranty pursuant to Section 4.10; and 

        (4)   it
will thenceforward be subject to the provisions of the Indenture as a Restricted Subsidiary. 

        (e)   Any
designation by the Company of a Subsidiary as a Restricted Subsidiary or Unrestricted Subsidiary will be evidenced to the Trustee by promptly filing with the Trustee
a copy of the Board Resolution giving effect to the designation and an Officer's Certificate certifying that the designation complied with the foregoing provisions. 

49

 

        Section 4.16.    Financial Reports.    (a) Whether or not the Company is subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, so long as any Notes are outstanding the Company must provide the Trustee and Noteholders (or make available on EDGAR) within the time
periods specified in those sections with 

        (1)   all
quarterly and annual financial information that would be required to be contained in a filing with the Commission on Forms 10-Q and
10-K if the Company were required to file such forms, including a "Management's Discussion and Analysis of Financial Condition and Results of Operations" and, with respect to annual
information only, a report thereon by the Company's certified independent accountants, and 

        (2)   all
current reports that would be required to be filed with the Commission on Form 8-K if the Company were required to file such reports. 

For
the avoidance of doubt, such information and reports referred to in clauses (1) and (2) above shall not be required to contain separate financial information for Guarantors that
would be required under Rule 3-10 of Regulation S-X promulgated by the Commission, except to the extent required by the rules and regulations of the Commission if
such rules are actually applicable. 

In
addition, whether or not required by the Commission, the Company will, after the effectiveness of an Exchange Offer Registration Statement or Shelf Registration Statement, if the Commission will
accept the filing, file a copy of all of the information and reports referred to in clauses (1) and (2) with the Commission for public availability within the time periods
specified in the Commission's rules and regulations. In addition, the Company will make the information and reports available to securities analysts and prospective investors upon request. 

If
at any time the Notes are Guaranteed by a direct or indirect parent entity of the Company and such parent entity is subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act, the Company may satisfy its obligations set forth above by providing the reports of such parent entity (within the time periods set forth above);  provided that such reports include a
consolidating financial footnote as required pursuant to Rule 3-10 of
Regulation S-X promulgated by the Commission. 

        (b)   For
so long as any of the Notes remain outstanding and constitute "restricted securities" under Rule 144, the Issuers will furnish to the Holders of the Notes and
prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 

        (c)   All
obligors on the Notes will comply with Section 314(a) of the Trust Indenture Act. 

        (d)   Delivery
of such reports, information and documents to the Trustee is for informational purposes only and its receipt of such reports shall not constitute constructive
notice of any information contained therein or determinable from information contained therein, including either of the Issuers' or any other Person's compliance with any of its covenants under the
Indenture or the Notes (as to which the Trustee is entitled to rely exclusively on an Officer's Certificates). 

        Section 4.17.    Reports to Trustee.    (a) The Issuers will deliver to the Trustee: 

        (1)   within
120 days after the end of each fiscal year a certificate from the principal executive, financial or accounting officer of the Company stating that the
officer has conducted or supervised a review of the activities of the Company and its Restricted Subsidiaries and their performance under the Indenture and that, based upon such review, the Issuer
have fulfilled their obligations hereunder or, if there has been a Default, specifying the Default and its nature and status; and 

        (2)   within
30 days after such Issuer becomes aware of the occurrence of a Default, an Officers' Certificate setting forth the details of the Default, and (unless such
Default has already been cured) the action which such Issuer proposes to take with respect thereto. 

50

 

        (b)   The
Issuers will notify the Trustee when any Notes are listed on any national securities exchange and of any delisting. 

        Section 4.18.    Suspension of Covenants.    (a) During any period of time after the Issue Date that
(i) the Notes are rated Investment Grade by each of S&P and Moody's (or, if either (or both) of S&P and Moody's have been substituted in accordance with the definition of "Rating Agencies"), by
each of the then applicable Rating Agencies) and (ii) no Default has occurred and is continuing under the Indenture (the occurrence of the events described in the foregoing clauses (i)
and (ii) being collectively referred to as a "Covenant Suspension Event") , the Company and its Restricted Subsidiaries will not be subject to
Section 4.06, Section 4.07, Section 4.09, Section 4.12, Section 4.13; and clause (a)(ii)(3) of Section 5.01 (the "Suspended
Covenants"). 

        (b)   Additionally,
at such time as the above referenced covenants are suspended (a "Suspension Period"), the Company may not
designate any Restricted Subsidiary as an Unrestricted Subsidiary unless the Company would have been permitted to designate such Subsidiary as an Unrestricted Subsidiary if a Suspension Period had not
been in effect for any period and such designation shall be deemed to have created a Restricted Payment under Section 4.07 following the Reversion Date. 

        (c)   In
the event that the Company and its Restricted Subsidiaries are not subject to the Suspended Covenants for any period of time as a result of the foregoing, and on any
subsequent date (the "Reversion Date") the condition set forth in clause (a)(i) of this Section 4.18 is no longer satisfied, then the
Company and its Restricted Subsidiaries will thereafter again be subject to the Suspended Covenants with respect to future events. Notwithstanding that the Suspended Covenants may be reinstated, no
Default will be deemed to have occurred as a result of a failure to comply with the Suspended Covenants during the Suspension Period. 

        (d)   On
each Reversion Date, all Debt incurred during the Suspension Period prior to such Reversion Date will be deemed to be Debt incurred pursuant to
Section 4.06(b)(9). For purposes of calculating the amount available to be made as Restricted Payments under Section 4.07(a)(3), calculations under such covenant shall be made as though
such covenant had been in effect during the entire period of time after the Issue Date (including the Suspension Period). Restricted Payments made during the Suspension Period not otherwise permitted
pursuant under Section 4.07(b) will reduce the amount available to be made as Restricted Payments under Section 4.07(a)(3). For purposes of Section 4.12, on the Reversion Date,
the amount of Excess Proceeds will be reset to the amount of Excess Proceeds in effect as of the first day of the Suspension Period ending on such Reversion Date. 

 
 

ARTICLE 5
CONSOLIDATION, MERGER OR SALE OF ASSETS

        Section 5.01.    Consolidation, Merger or Sale of Assets by the Company.    (a) The Company will not 

          (i)  consolidate
or merge with or into any Person, or 

         (ii)  sell,
convey, transfer, or otherwise dispose of all or substantially all of the Company's assets as an entirety or substantially an entirety, in one transaction or a
series of related transactions, to any Person 

unless 

        (1)   either
(x) the Company is the continuing Person or (y) the resulting, surviving or transferee Person is a corporation, partnership (including a limited
partnership), trust or limited liability company organized and validly existing under the laws of the United States of America, any state thereof or the District of Columbia and expressly assumes by
supplemental indenture (or other joinder agreement, as applicable) all of the obligations of the Company under the Indenture, the Notes and the Registration Rights Agreement; 

51

 

        (2)   immediately
after giving effect to the transaction, no Default has occurred and is continuing; 

        (3)   immediately
after giving effect to the transaction on a pro forma basis, the Company or the resulting surviving or transferee Person (i) could Incur at least
$1.00 of Debt under the Fixed Charge Coverage Ratio Test or (ii) would have a Fixed Charge Coverage Ratio on a pro forma basis that is at least equal to the Fixed Charge Coverage Ratio of the
Company immediately prior to such transaction; and 

        (4)   the
Company delivers to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that the consolidation, merger or transfer and the supplemental
indenture (if any) comply with the Indenture; 

provided, that clauses (2) and (3) do not apply (i) to the consolidation, merger, sale, conveyance, transfer or other disposition
of the Company with or into a Wholly Owned Restricted Subsidiary or the consolidation, merger, sale, conveyance, transfer or other disposition of a Wholly Owned Restricted Subsidiary with or into the
Company or (ii) if, in the good faith determination of the Board of Directors
of the Company, whose determination is evidenced by a Board Resolution, the sole purpose of the transaction is to change the jurisdiction of incorporation of the Company. 

        (b)   The
Company shall not lease all or substantially all of its assets, whether in one transaction or a series of transactions, to one or more other Persons. 

        (c)   Upon
the consummation of any transaction effected in accordance with these provisions, if the Company is not the continuing Person, the resulting, surviving or
transferee Person will succeed to, and be substituted for, and may exercise every right and power of, the Company under the Indenture and the Notes with the same effect as if such successor Person had
been named as the Company in the Indenture. Upon such substitution, except in the case of a sale, conveyance, transfer or disposition of less than all its assets, the Company will be released from its
obligations under the Indenture and the Notes. 

        Section 5.02.    Consolidation, Merger or Sale of Assets by the Co-Issuer.    The
Co-Issuer shall not consolidate or merge with or into any Person, or permit any Person to merge with or into the Co-Issuer unless: 

        (1)   concurrently
therewith, a corporate Wholly-Owned Restricted Subsidiary of the Company organized and validly existing under the laws of the United States of America, any
state thereof or the District of Columbia (which may be the continuing Person as a result of such transaction) shall expressly assume, by a supplemental indenture (or other joinder agreement, as
applicable), all of the obligations of the Co-Issuer under the Indenture, the Notes and the Registration Rights Agreement; or 

        (2)   after
giving effect thereto, at least one obligor on the Notes shall be a corporation organized and validly existing under the laws of the United States of America or
any jurisdiction thereof; and 

        (3)   immediately
after such transaction, no Default has occurred and is continuing. 

        Section 5.03.    Consolidation, Merger or Sale of Assets by a Guarantor.    No Guarantor may 

          (i)  consolidate
merge with or into any Person, or 

         (ii)  sell,
convey, transfer or dispose of all or substantially all of the Guarantor's assets, in one transaction or a series of related transactions, to any Person, 

52

 

unless

        (A)  the
other Person is the Company or any Restricted Subsidiary that is Guarantor or becomes a Guarantor concurrently with the transaction; or 

        (B)  (1)
either (x) the Guarantor is the continuing Person or (y) the resulting, surviving or transferee Person expressly assumes by supplemental indenture (or
other joinder agreement, as applicable) all of the obligations of the Guarantor under its Note Guaranty and the Registration Rights Agreement; and 

        (2)   immediately
after giving effect to the transaction, no Default has occurred and is continuing; or 

        (C)  the
transaction constitutes a sale or other disposition (including by way of consolidation or merger) of the Guarantor or the sale or disposition of all or substantially
all the assets of the Guarantor (in each case other than to the Company or a Restricted Subsidiary) otherwise permitted by the Indenture. 

 
 

ARTICLE 6
DEFAULT AND REMEDIES

        Section 6.01.    Events of Default.    An "Event of Default"
occurs with respect to Notes of a series if 

        (1)   the
Issuers default in the payment of the principal of any Note of such series when the same becomes due and payable at maturity, upon acceleration or redemption, or
otherwise (other than pursuant to an Offer to Purchase); 

        (2)   the
Issuers default in the payment of interest (including any Additional Interest) on any Note of such series when the same becomes due and payable, and the default
continues for a period of 30 days; 

        (3)   the
Issuers fail to make an Offer to Purchase and thereafter accept and pay for Notes tendered when and as required pursuant to Section 4.11 or the Issuers or any
Guarantor fails to comply with Article 5; 

        (4)   the
Issuers default in the performance of or breach any other covenant or agreement of the Issuers in the Indenture or under the Notes of such series (other than a
default specified in clauses (1), (2) or (3) above) and the default or breach continues for a period of 60 consecutive days (or 90 consecutive days in the case of a failure to
comply with the reporting obligations described under Section 4.16) after written notice to the Issuers by the Trustee or to the Issuers and the Trustee by the Holders of 25% or more in
aggregate principal amount of the Notes; 

        (5)   there
occurs with respect to any Debt of the Company or any of its Significant Restricted Subsidiaries having an outstanding principal amount of $30.0 million or
more in the aggregate for all such Debt of all such Persons (i) an event of default that results in such Debt being due and payable prior to its scheduled maturity or (ii) failure to
make a principal payment on such Debt when due and such defaulted payment is not made, waived or extended within the applicable grace period; 

        (6)   one
or more final judgments or orders for the payment of money are rendered against the Company or any of its Restricted Subsidiaries and are not paid or discharged, and
there is a period of 60 consecutive days following entry of the final judgment or order that causes the aggregate amount for all such final judgments or orders outstanding and not paid or discharged
against all such Persons to exceed $30.0 million (in excess of amounts which the Company's insurance carriers have agreed to pay under applicable policies) during which a stay of enforcement,
by reason of a pending appeal or otherwise, is not in effect; 

53

 

        (7)   an
involuntary case or other proceeding is commenced against the Company or any Significant Subsidiary with respect to it or its debts under any bankruptcy, insolvency
or other similar law now or hereafter in effect seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, and such
involuntary case or other proceeding remains undismissed and unstayed for a period of 60 days; or an order for relief is entered against the Company or any Significant Subsidiary under the
federal bankruptcy laws as now or hereafter in effect; 

        (8)   the
Company or any of its Significant Subsidiaries (i) commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, (ii) consents to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company or any of its Significant Subsidiaries or for all or substantially all of the property and assets of the
Company or any of its Significant Subsidiaries or (iii) effects any general assignment for the benefit of creditors (an event of default specified in clause (8) or (9) a
"bankruptcy default"); or 

        (9)   any
Note Guaranty ceases to be in full force and effect, other than in accordance the terms of the Indenture, or a Guarantor denies or disaffirms its obligations under
its Note Guaranty. 

        Section 6.02.    Acceleration.    (a) If an Event of Default, other than a bankruptcy default with
respect to the Company, occurs and is continuing under the Indenture with respect to Notes of a series, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes of such
series then outstanding, by written notice to the Issuers (and to the Trustee if the notice is given by the Holders), may, and the Trustee at the request of such Holders shall, declare the principal
of and accrued interest on the Notes of such series to be immediately due and payable. Upon a declaration of acceleration, such principal and accrued interest will become immediately due and payable.
If a bankruptcy default occurs with respect to the Company, the principal of and accrued interest on the Notes of such series then outstanding will become immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder. 

        (b)   The
Holders of a majority in principal amount of the outstanding Notes of a series by written notice to the Issuers and to the Trustee may waive all past defaults and
rescind and annul a declaration of acceleration and its consequences if 

        (1)   all
existing Events of Default, other than the nonpayment of the principal of, premium, if any, and interest on the Notes that have become due solely by the declaration
of acceleration, have been cured or waived, and 

        (2)   the
rescission would not conflict with any judgment or decree of a court of competent jurisdiction. 

        (c)   In
the event of a declaration of acceleration of the Notes because an Event of Default described in clause (5) under Section 6.01 has occurred and is
continuing, the declaration of acceleration of the Notes shall be automatically annulled, without any action by the Trustee or the Holders, if the event of default or payment default triggering such
Event of Default pursuant to clause (5) shall be remedied or cured, or rescinded or waived by the Holders of the Debt, or the Debt that gave rise to such Event of Default shall have been
discharged in full, within 30 days after the declaration of acceleration with respect thereto and if (i) the annulment of the acceleration of the Notes would not conflict with any
judgment or decree of a court of competent jurisdiction and (ii) all existing Events of Default, except nonpayment of principal, premium or interest on the Notes that became due solely because
of the acceleration of the Notes, have been cured or waived. 

54

 

        Section 6.03.    Other Remedies.    If an Event of Default occurs and is continuing, the Trustee may pursue, in
its own name or as trustee of an express trust, any available remedy by proceeding at law or in equity to collect the payment of principal of and interest on the Notes of a series or to enforce the
performance of any provision of the Notes or the Indenture. The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. 

        Section 6.04.    Waiver of Past Defaults.    (a) Except as otherwise provided in Section 6.02,
Section 6.07 and Section 9.02, the Holders of a majority in principal amount of the outstanding Notes of a series may, by notice to the Trustee, waive an existing Default and its
consequences with respect to such series. Upon such waiver, the Default will cease to exist, and any Event of Default arising therefrom will be deemed to have been cured, but no such waiver will
extend to any subsequent or other Default or impair any right consequent thereon. 

        Section 6.05.    Control by Majority.    The Holders of a majority in principal amount of the outstanding Notes
of a series may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee. However, the Trustee
may refuse to follow any direction that conflicts with law or the Indenture, that may involve the Trustee in personal liability, or that the Trustee determines in good faith may be unduly prejudicial
to the rights of Holders of Notes not joining in the giving of such direction. In addition, the Trustee may take any other action it deems proper that is not inconsistent with any such direction
received from Holders of Notes. The Trustee shall not be obligated to take any action at the direction of Holders unless such Holders have offered to the Trustee indemnity reasonably satisfactory to
the Trustee. 

        Section 6.06.    Limitation on Suits.    A Holder may not institute any proceeding, judicial or otherwise, with
respect to the Indenture or the Notes, or for the appointment of a receiver or trustee, or for any other remedy under the Indenture or the Notes, unless: 

        (1)   the
Holder has previously given to the Trustee written notice of a continuing Event of Default; 

        (2)   Holders
of at least 25% in aggregate principal amount of outstanding Notes of such series have made written request to the Trustee to institute proceedings in respect of
the Event of Default in its own name as Trustee under the Indenture; 

        (3)   Holders
have offered to the Trustee indemnity reasonably satisfactory to the Trustee against any costs, liabilities or expenses to be incurred in compliance with such
request; 

        (4)   the
Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and 

        (5)   during
such 60-day period, the Holders of a majority in aggregate principal amount of the outstanding Notes have not given the Trustee a direction that is
inconsistent with such written request. 

        Section 6.07.    Rights of Holders to Receive Payment.    Notwithstanding anything to the contrary, the right
of a Holder of a Note to receive payment of principal of or interest on its Note on or after the Stated Maturities thereof, or to bring suit for the enforcement of any such payment on or after such
respective dates, may not be impaired or affected without the consent of that Holder. 

        Section 6.08.    Collection Suit by Trustee.    If an Event of Default in payment of principal or interest
specified in clause (1) or (2) of Section 6.01 occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust for the whole amount
of principal and accrued interest remaining unpaid, together with interest on overdue principal and, to the extent lawful, overdue installments of interest, in each case at the rate specified in the
Notes, and such further amount as is sufficient to cover the costs and expenses of collection, including the reasonable 

55

 

compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel and any other amounts due the Trustee hereunder. 

        Section 6.09.    Trustee May File Proofs of Claim.    The Trustee may file proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee hereunder) and the Holders allowed in any judicial
proceedings relating to the Issuers or any Guarantor or their respective creditors or property, and is entitled and empowered to collect, receive and distribute any money, securities or other property
payable or deliverable upon conversion or exchange of the Notes or upon any such claims. Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, if the Trustee consents to the making of such payments directly to the Holders, to pay to the Trustee
any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agent and counsel, and any other amounts due the Trustee hereunder. Nothing in the
Indenture will be deemed to empower the Trustee to authorize or consent to, or accept or adopt on behalf of any Holder, any plan of reorganization, arrangement, adjustment or composition affecting the
Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

        Section 6.10.    Priorities.    If the Trustee collects any money pursuant to this Article, it shall pay out
the money in the following order: 

        First:
to the Trustee for all amounts due hereunder; 

        Second:
to Holders for amounts then due and unpaid for principal of and interest on the Notes of the applicable series, ratably, without preference or priority of any kind, according to
the amounts due and payable on the Notes for principal and interest; and 

        Third:
to the Issuers or as a court of competent jurisdiction may direct. 

        The
Trustee, upon written notice to the Issuers, may fix a record date and payment date for any payment to Holders pursuant to this Section. 

        Section 6.11.    Restoration of Rights and Remedies.    If the Trustee or any Holder has instituted a
proceeding to enforce any right or remedy under the Indenture and the proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to the Holder,
then, subject to any determination in the proceeding, the Issuers, any Guarantors, the Trustee and the Holders will be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Issuers, any Guarantors, the Trustee and the Holders will continue as though no such proceeding had been instituted. 

        Section 6.12.    Undertaking for Costs.    In any suit for the enforcement of any right or remedy under the
Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court may require any party litigant in such suit (other than the Trustee) to file an undertaking to
pay the costs of the suit, and the court may assess reasonable costs, including reasonable attorneys fees, against any party litigant (other than the Trustee) in the suit having due regard to the
merits and good faith of
the claims or defenses made by the party litigant. This Section does not apply to a suit by a Holder to enforce payment of principal of or interest on any Note on the respective due dates, or a suit
by Holders of more than 10% in principal amount of the outstanding Notes. 

        Section 6.13.    Rights and Remedies Cumulative.    No right or remedy conferred or reserved to the Trustee or
to the Holders under this Indenture is intended to be exclusive of any other right or remedy, and all such rights and remedies are, to the extent permitted by law, cumulative and in addition to every
other right and remedy hereunder or now or hereafter existing at law or in equity or otherwise. 

56

 

The
assertion or exercise of any right or remedy hereunder, or otherwise, will not prevent the concurrent assertion or exercise of any other right or remedy. 

        Section 6.14.    Delay or Omission Not Waiver.    No delay or omission of the Trustee or of any Holder to
exercise any right or remedy accruing upon any Event of Default will impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may
be. 

        Section 6.15.    Waiver of Stay, Extension or Usury Laws.    Each Issuer and each Guarantor covenants, to the
extent that it may lawfully do so, that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law
or other law that would prohibit or forgive such Issuer or Guarantor from paying all or any portion of the principal of, or interest on the Notes as contemplated herein, wherever enacted, now or at
any time hereafter in force, or that may affect the covenants or the performance of the Indenture. Each Issuer and each Guarantor hereby expressly waives, to the extent that it may lawfully do so, all
benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every
such power as though no such law had been enacted. 

 
 

ARTICLE 7
THE TRUSTEE

        Section 7.01.    General.    (a) The duties and responsibilities of the Trustee are as provided by the
Trust Indenture Act and as set forth herein. Whether or not expressly so provided, every provision of the
Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee is subject to this Article. 

        (b)   Except
during the continuance of an Event of Default, the Trustee need perform or be required to perform only those duties that are specifically set forth in the
Indenture and no others, and no implied covenants or obligations will be read into the Indenture against the Trustee. In case an Event of Default has occurred and is continuing, the Trustee shall
exercise those rights and powers vested in it by the Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs. 

        (c)   No
provision of the Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful
misconduct. 

        Section 7.02.    Certain Rights of Trustee.    Subject to Trust Indenture Act Sections 315(a) through
(d): 

        (1)   In
the absence of bad faith on its part, the Trustee may rely, and will be protected in acting or refraining from acting, upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been
signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document, but, in the case of any document which is specifically required to be furnished to
the Trustee pursuant to any provision hereof, the Trustee shall examine the document to determine whether it conforms to the requirements of the Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein). The Trustee, in its discretion, may make further inquiry or investigation into such facts or matters as it sees fit. 

57

 

        (2)   Before
the Trustee acts or refrains from acting, it may require an Officers' Certificate or an Opinion of Counsel conforming to Section 12.05 and the Trustee will
not be liable for any action it takes or omits to take in good faith in reliance on the certificate or opinion. 

        (3)   The
Trustee may act through its attorneys and agents and will not be responsible for the misconduct or negligence of any agent appointed with due care. 

        (4)   The
Trustee will be under no obligation to exercise any of the rights or powers vested in it by the Indenture at the request or direction of any of the Holders, unless
such Holders have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction. 

        (5)   The
Trustee will not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within its rights or powers or for any action
it takes or omits to take in accordance with the direction of the Holders in accordance with Section 6.05 relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under the Indenture. 

        (6)   The
Trustee may consult with counsel, and the written advice of such counsel or any Opinion of Counsel will be full and complete authorization and protection in respect
of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 

        (7)   No
provision of the Indenture will require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties
hereunder, or in the exercise of its rights or powers, unless it receives indemnity satisfactory to it against any loss, liability or expense. 

        Section 7.03.    Individual Rights of Trustee.    The Trustee, in its individual or any other capacity, may
become the owner or pledgee of Notes and may otherwise deal with the Issuers or their Affiliates with the same rights it would have if it were not the Trustee. Any Agent may do the same with like
rights. However, the Trustee is subject to Trust Indenture Act Sections 310(b) and 311. For purposes of Trust Indenture Act Section 311(b)(4) and (6): 

        (a)   "cash transaction" means any transaction in which full payment for goods or securities sold is made within seven days
after delivery of the goods or securities in currency or in checks or other orders drawn upon banks or bankers and payable upon demand; and 

        (b)   "self-liquidating paper" means any draft, bill of exchange, acceptance or obligation which is made, drawn,
negotiated or incurred for the purpose of financing the purchase, processing, manufacturing, shipment, storage or sale of goods, wares or merchandise and which is secured by documents evidencing title
to, possession of, or a lien upon, the goods, wares or merchandise or the receivables or proceeds arising from the sale of the goods, wares or merchandise previously constituting the security,
provided the security is received by the Trustee simultaneously with the creation of the creditor relationship arising from the making, drawing, negotiating or incurring of the draft, bill of
exchange, acceptance or obligation. 

        Section 7.04.    Trustee's Disclaimer.    The Trustee (i) makes no representation as to the validity or
adequacy of the Indenture or the Notes, (ii) is not accountable for the Issuers' use or application of the proceeds
from the Notes and (iii) is not responsible for any statement in the Notes other than its certificate of authentication. 

        Section 7.05.    Notice of Default.    If any Default occurs and is continuing and is known to the Trustee, the
Trustee will send notice of the Default to each Holder within 90 days after it occurs, unless the Default has been cured; provided that, except
in the case of a default in the payment of the principal of or interest on any Note, the Trustee may withhold the notice if and so long as the board of directors, the executive committee or a trust
committee of the Trustee in good faith determines that 

58

 

withholding
the notice is in the interest of the Holders. Notice to Holders under this Section will be given in the manner and to the extent provided in Trust Indenture Act Section 313(c). 

        Section 7.06.    Reports by Trustee to Holders.    Within 60 days after each May 15, beginning
with May 15, 2010, the Trustee will mail to each Holder, as provided in Trust Indenture Act Section 313(c), a brief report dated as of such May 15, if required by Trust Indenture
Act Section 313(a), and file such reports with each stock exchange upon which its Notes are listed and with the Commission as required by Trust Indenture Act Section 313(d). 

        Section 7.07.    Compensation And Indemnity.    (a) The Issuers will pay the Trustee compensation as
agreed upon in writing for its services. The compensation of the Trustee is not limited by any law on compensation of a Trustee of an express trust. The Issuers will reimburse the Trustee upon request
for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by the Trustee, including the reasonable compensation and expenses of the Trustee's
agents and counsel. 

        (b)   The
Issuers will indemnify the Trustee for, and hold it harmless against, any loss or liability or expense incurred by it without negligence or bad faith on its part
arising out of or in connection with the acceptance or administration of the Indenture and its duties under the Indenture and the Notes, including the costs and expenses of defending itself against
any claim or liability and of complying with any process served upon it or any of its officers in connection with the exercise or performance of any of its powers or duties under the Indenture and the
Notes. 

        (c)   To
secure the Issuers' payment obligations in this Section, the Trustee will have a lien prior to the Notes on all money or property held or collected by the Trustee, in
its capacity as Trustee, except money or property held in trust to pay principal of, and interest on particular Notes. 

        Section 7.08.    Replacement of Trustee.    (a) (1) The Trustee may resign at any time by written notice
to the Issuers. 

        (2)   The
Holders of a majority in principal amount of the outstanding Notes may remove the Trustee by written notice to the Trustee. 

        (3)   If
the Trustee is no longer eligible under Section 7.10 or in the circumstances described in Trust Indenture Act Section 310(b), any Holder that satisfies
the requirements of Trust Indenture Act Section 310(b) may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 

        (4)   The
Issuers may remove the Trustee if: (i) the Trustee is no longer eligible under Section 7.10; (ii) the Trustee is adjudged a bankrupt or an
insolvent; (iii) a receiver or other public officer takes charge of the Trustee or its property; or (iv) the Trustee becomes incapable of acting. 

A
resignation or removal of the Trustee and appointment of a successor Trustee will become effective only upon the successor Trustee's acceptance of appointment as provided in this Section. 

        (b)   If
the Trustee has been removed by the Holders, Holders of a majority in principal amount of the Notes may appoint a successor Trustee with the consent of the Issuers.
Otherwise, if the Trustee resigns or is removed, or if a vacancy exists in the office of Trustee for any reason, the Issuers will promptly appoint a successor Trustee. If the successor Trustee does
not deliver its written acceptance within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Issuers or the Holders of a majority in principal amount of the
outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

        (c)   Upon
delivery by the successor Trustee of a written acceptance of its appointment to the retiring Trustee and to the Issuers, (i) the retiring Trustee will
transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07, (ii) the resignation or removal of the retiring Trustee will
become effective, and (iii) the successor Trustee will have all the rights, 

59

 

powers
and duties of the Trustee under the Indenture. Upon request of any successor Trustee, the Issuers will execute any and all instruments for fully and vesting in and confirming to the successor
Trustee all such rights, powers and trusts. The Issuers will give notice of any resignation and any removal of the Trustee and each appointment of a successor Trustee to all Holders, and include in
the notice the name of the successor Trustee and the address of its Corporate Trust Office. 

        (d)   Notwithstanding
replacement of the Trustee pursuant to this Section, the Issuers' obligations under Section 7.07 will continue for the benefit of the retiring
Trustee. 

        (e)   The
Trustee agrees to give the notices provided for in, and otherwise comply with, Trust Indenture Act Section 310(b). 

        Section 7.09.    Successor Trustee by Merger.    If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another corporation or national banking association, the resulting, surviving or transferee corporation or national banking
association without any further act will be the successor Trustee with the same effect as if the successor Trustee had been named as the Trustee in the Indenture. 

        Section 7.10.    Eligibility.    The Indenture must always have a Trustee that satisfies the requirements of
Trust Indenture Act Section 310(a) and has a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. 

        Section 7.11.    Money Held in Trust.    The Trustee will not be liable for interest on any money received by
it except as it may agree with the Issuers. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law and except for money held in trust under
Article 8. 

 
 

ARTICLE 8
DEFEASANCE AND DISCHARGE

        Section 8.01.    Discharge of Issuers'  Obligations.    (a) Subject to paragraph (b), the Issuers' obligations under the Notes of a
series and the Indenture, and each
Guarantor's obligations under its Note Guaranty in respect of such Notes, will terminate if: 

        (1)   all
Notes of such series previously authenticated and delivered (other than (i) destroyed, lost or stolen Notes that have been replaced or (ii) Notes that
are paid pursuant to Section 4.01 or (iii) Notes for whose payment money or U.S. Government Obligations have been held in trust and then repaid to the Issuers pursuant to
Section 8.05) have been delivered to the Trustee for cancellation and the Issuers have paid all sums payable by it hereunder; or 

        (2)   (A)
the Notes of such series mature within one year, or all of them are to be called for redemption within one year under arrangements satisfactory to the Trustee for
giving the notice of redemption, 

        (B)  if
either Issuer irrevocably deposits in trust with the Trustee, as trust funds solely for the benefit of the Holders, money or U.S. Government Obligations or a
combination thereof sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certificate delivered to the Trustee, without consideration of
any reinvestment, to pay principal of and interest on the Notes of such series to maturity or redemption, as the case may be, and to pay all other sums payable by it hereunder, 

        (C)  no
Default has occurred and is continuing on the date of the deposit, 

        (D)  the
deposit will not result in a breach or violation of, or constitute a default under, the Indenture or any other agreement or instrument to which the Issuers are a
party or by which it is bound, and 

60

 

 

        (E)  the
Issuers deliver to the Trustee an Officers' Certificate and an Opinion of Counsel, in each case stating that all conditions precedent provided for herein relating to
the satisfaction and discharge of the Indenture have been complied with. 

        (b)   After
satisfying the conditions in clause (1), only the Issuers' obligations under Section 7.07 will survive. After satisfying the conditions in
clause (2), only the Issuers' obligations in Article 2 and Sections 4.01, 4.02, 7.07, 7.08, 8.05 and 8.06 will survive. In either case, the Trustee upon request will acknowledge
in writing the discharge of the Issuers' obligations under the Notes of such series and the Indenture other than the surviving obligations. 

        Section 8.02.    Legal Defeasance.    After the 123rd day following the deposit referred to in
clause (1), the Issuers will be deemed to have paid and will be discharged from its obligations in respect of the Notes of such series and the Indenture, other than its obligations in
Article 2 and Sections 4.01, 4.02, 7.07, 7.08, 8.05 and 8.06, and each Guarantor's obligations under its Note Guaranty will terminate,  provided the following conditions have been satisfied:

        (1)   if
either Issuer irrevocably deposited in trust with the Trustee, as trust funds solely for the benefit of the Holders, money or U.S. Government Obligations or a
combination thereof sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certificate thereof delivered to the Trustee, without
consideration of any reinvestment, to pay principal of and interest on the Notes of such series to maturity or redemption, as the case may be, provided
that any redemption before maturity has been irrevocably provided for under arrangements satisfactory to the Trustee. 

        (2)   No
Default has occurred and is continuing on the date of the deposit or occurs at any time during the 123-day period following the deposit. 

        (3)   The
deposit will not result in a breach or violation of, or constitute a default under, the Indenture or any other agreement or instrument to which the Issuers are a
party or by which they is bound. 

        (4)   The
Issuers have delivered to the Trustee 

        (A)  either
(x) a ruling received from the Internal Revenue Service to the effect that the Holders will not recognize income, gain or loss for federal income tax
purposes as a result of the defeasance and will be subject to federal income tax on the same amount and in the same manner and at the same times as would otherwise have been the case or (y) an
Opinion of Counsel, based on a change in law after the date of the Indenture, to the same effect as the ruling described in clause (x), and 

        (B)  an
Opinion of Counsel to the effect that (i) the creation of the defeasance trust does not violate the Investment Company Act of 1940, (ii) the Holders
have a valid first priority Note interest in the trust funds (subject to customary exceptions), and (iii) after the passage of 123 days following the deposit, the trust funds will not be
subject to the effect of Section 547 of the United States Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law. 

        (5)   If
the Notes of such series are listed on a national securities exchange, the Issuers have delivered to the Trustee an Opinion of Counsel to the effect that the deposit
and defeasance will not cause the Notes of such series to be delisted. 

        (6)   The
Issuers have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, in each case stating that all conditions precedent provided for herein
relating to the defeasance have been complied with. 

61

 

        Prior
to the end of the 123-day period, none of the Issuers' obligations under the Indenture in respect of such Notes will be discharged. Thereafter, the Trustee upon request
will acknowledge in writing the discharge of the Issuers' obligations under the Notes of such series and the Indenture in respect of such Notes except for the surviving obligations specified above. 

        Section 8.03.    Covenant Defeasance.    After the 123rd day following the deposit referred to in
clause (1), the Issuers' obligations set forth in Sections 4.06 through 4.13, inclusive, and Section 4.15 through 4.18,
inclusive, and clauses (3) and (4) of Section 5.01(a)(ii), and each Guarantor's obligations under its applicable Note Guaranty, will terminate, and clauses (3), (4), (5),
(6) and (9) of Section 6.01 will no longer constitute Events of Default with respect to Notes of a series, provided the following
conditions have been satisfied: 

        (1)   The
Issuers have complied with clauses (1), (2), (3), 4(B), (5) and (6) of Section 8.02; and 

        (2)   the
Issuers have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of such Notes will not recognize income, gain or loss for federal income
tax purposes as a result of the defeasance and will be subject to federal income tax on the same amount and in the same manner and at the same times as would otherwise have been the case. 

        Except
as specifically stated above, none of the Issuers' obligations under the Indenture will be discharged. 

        Section 8.04.    Application of Trust Money.    Subject to Section 8.05, the Trustee will hold in trust
the money or U.S. Government Obligations deposited with it pursuant to Section 8.01, 8.02 or 8.03, and apply the deposited money and the proceeds from deposited U.S. Government Obligations to
the payment of principal of and interest on the applicable series of Notes in accordance with the Notes and the Indenture. Such money and U.S. Government Obligations need not be segregated from other
funds except to the extent required by law. 

        Section 8.05.    Repayment to Issuers.    Subject to Sections 7.07, 8.01, 8.02 and 8.03, the Trustee
will promptly pay to the Issuers upon request any excess money held by the Trustee at any time and thereupon be relieved from all liability with respect to such money. The Trustee will pay to the
Issuers upon request any money held for payment with respect to the applicable series of Notes that remains unclaimed for two years, provided that
before making such payment the Trustee may at the expense of the Issuers publish once in a newspaper of general circulation in New York City, or send to each Holder entitled to such money, notice that
the money remains unclaimed and that after a date specified in the notice (at least 30 days after the date of the publication or notice) any remaining unclaimed balance of money will be repaid
to the Issuers. After payment to the Company, Holders entitled to such money must look solely to the Issuers for payment, unless applicable law designates another Person, and all liability of the
Trustee with respect to such money will cease. 

        Section 8.06.    Reinstatement.    If and for so long as the Trustee is unable to apply any money or U.S.
Government Obligations held in trust pursuant to Section 8.01, 8.02 or 8.03 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Issuers' obligations under the Indenture and the applicable series of Notes will be reinstated as though no such deposit in trust
had been made. If the Issuers make any payment of principal of or interest on any applicable series of Notes because of the reinstatement of its obligations, it will be subrogated to the rights of the
Holders of such series of Notes to receive such payment from the money or U.S. Government Obligations held in trust. 

62

 
 
 

ARTICLE 9
AMENDMENTS, SUPPLEMENTS AND WAIVERS

        Section 9.01.    Amendments Without Consent of Holders.    The Issuers and the Trustee may amend or supplement
the Indenture and the Notes with respect to a series without notice to or the consent of any Noteholder 

        (1)   to
cure any ambiguity, defect, omission or inconsistency in the Indenture or the Notes; 

        (2)   to
comply with Article 5; 

        (3)   to
comply with any requirements of the Commission in connection with the qualification of the Indenture under the Trust Indenture Act; 

        (4)   to
evidence and provide for the acceptance of an appointment by a successor Trustee; 

        (5)   to
provide for uncertificated Notes in addition to or in place of certificated Notes, provided that the uncertificated
Notes are issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated Notes are described in Section 163(f)(2)(B) of the Code; 

        (6)   to
provide for any Guarantee of the Notes, to secure the Notes or to confirm and evidence the release, termination or discharge of any Guarantee of or Lien securing the
Notes when such release, termination or discharge is permitted by the Indenture; 

        (7)   to
provide for the issuance of Additional Notes in accordance with the terms of the Indenture; 

        (8)   to
conform any provision to this Indenture; or 

        (9)   to
make any other change that does not materially and adversely affect the rights of any Holder. 

        Section 9.02.    Amendments With Consent of Holders.    (a) Except as otherwise provided in 6.02, 6.04
and 6.07 or paragraph (b), the Issuers and the Trustee may amend the Indenture and the Notes with respect to a series with the written consent of the Holders of not less than a majority in
aggregate principal amount of the outstanding Notes of such series and the Holders of a majority in aggregate principal amount of the outstanding Notes of a series by written notice to the Trustee may
waive future compliance by the Issuers with any provision of the Indenture or the Notes with respect to such series. 

        (b)   Notwithstanding
the provisions of paragraph (a), without the consent of each Holder affected, an amendment or waiver may not 

        (1)   reduce
the principal amount of or change the Stated Maturity of any installment of principal of any Note, 

        (2)   reduce
the rate of or change the Stated Maturity of any interest payment on any Note, 

        (3)   reduce
the amount payable upon the redemption of any Note or change the time of any mandatory redemption or, in respect of an optional redemption, the times at which any
Note may be redeemed or, once notice of redemption has been given, the time at which it must thereupon be redeemed, 

        (4)   after
the time an Offer to Purchase is required to have been made, reduce the purchase amount or purchase price, or extend the latest expiration date or purchase date
thereunder, 

        (5)   make
any Note payable in money other than that stated in the Note, 

63

 

        (6)   impair
the right of any Holder of Notes to receive any principal payment or interest payment on such Holder's Notes or Note Guaranty, on or after the Stated Maturity
thereof, or to institute suit for the enforcement of any such payment, 

        (7)   make
any change in the percentage of the principal amount of the Notes whose Holders must consent to an amendment, supplement or waiver, 

        (8)   modify
or change any provision of the Indenture affecting the ranking of the Notes or any Note Guaranty in a manner materially adverse to the Holders of the Notes, or 

        (9)   make
any change in any Note Guaranty that would adversely affect the Noteholders. 

        It
is not necessary for Noteholders to approve the particular form of any proposed amendment, supplement or waiver, but is sufficient if their consent approves the substance thereof. 

        (d)   An
amendment, supplement or waiver under this Section will become effective on receipt by the Trustee of written consents from the Holders of the requisite percentage in
principal amount of the outstanding Notes of a series. After an amendment, supplement or waiver under this Section becomes effective, the Company will send to the Holders affected thereby a notice
briefly describing the amendment, supplement or waiver. The Company will send supplemental indentures to Holders upon request. Any failure of the Company to send such notice, or any defect therein,
will not, however, in any way impair or affect the validity of any such supplemental indenture or waiver. 

        Section 9.03.    Effect of Consent.    (a) After an amendment, supplement or waiver becomes effective,
it will bind every Holder of a Note of such series unless it is of the type requiring the consent of each Holder affected. If the amendment, supplement or waiver is of the type requiring the consent
of each Holder affected, the amendment, supplement or waiver will bind each Holder that has consented to it and every subsequent Holder of a Note of such series that evidences the same debt as the
Note of such series of the consenting Holder. 

        (b)   If
an amendment, supplement or waiver changes the terms of a Note of a series, the Trustee may require the Holder to deliver it to the Trustee so that the Trustee may
place an appropriate notation of the changed terms on the Note of such series and return it to the Holder, or exchange it for a new Note of such series that reflects the changed terms. The Trustee may
also place an appropriate notation on any Note thereafter authenticated. However, the effectiveness of the amendment, supplement or waiver is not affected by any failure to annotate or exchange Notes
in this fashion. 

        Section 9.04.    Trustee's Rights and Obligations.    The Trustee is entitled to receive, and will be fully
protected in relying upon, an Opinion of Counsel stating that the execution of any amendment, supplement or waiver authorized pursuant to this Article is authorized or permitted by the Indenture. If
the Trustee has received such an Opinion of Counsel, it shall sign the amendment, supplement or waiver so long as the same does not adversely affect the rights of the Trustee. The Trustee may, but is
not obligated to, execute any amendment, supplement or waiver that affects the Trustee's own rights, duties or immunities under the Indenture. 

        Section 9.05.    Conformity With Trust Indenture Act.    Every supplemental indenture executed pursuant to this
Article shall conform to the requirements of the Trust Indenture Act. 

        Section 9.06.    Payments for Consents.    Neither the Company nor any of its Subsidiaries or Affiliates may,
directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or amendment of any of the
terms or provisions of the Indenture or the Notes unless such consideration is offered to be paid or agreed to be paid to all Holders of the Notes that consent, waive or agree to amend such term or
provision within the time period set forth in the solicitation documents relating to the consent, waiver or amendment. 

64

 
 
 

ARTICLE 10
GUARANTIES

        Section 10.01.    The Guaranties.    Subject to the provisions of this Article, each Guarantor hereby
irrevocably and unconditionally guarantees, jointly and severally, on an unsecured basis, the full and punctual payment (whether at Stated Maturity, upon redemption, purchase pursuant to an Offer to
Purchase or
acceleration, or otherwise) of the principal of, premium, if any, and interest on, and all other amounts payable under, each Note, and the full and punctual payment of all other amounts payable by the
Issuers under the Indenture. Upon failure by the Issuers to pay punctually any such amount, each Guarantor shall forthwith on demand pay the amount not so paid at the place and in the manner specified
in the Indenture. 

        Section 10.02.    Guaranty Unconditional.    The obligations of each Guarantor hereunder are unconditional and
absolute and, without limiting the generality of the foregoing, will not be released, discharged or otherwise affected by 

        (1)   any
extension, renewal, settlement, compromise, waiver or release in respect of any obligation of the Issuers under the Indenture or any Note, by operation of law or
otherwise; 

        (2)   any
modification or amendment of or supplement to the Indenture or any Note; 

        (3)   any
change in the corporate existence, structure or ownership of the Issuers, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the
Issuers or their assets or any resulting release or discharge of any obligation of the Issuers contained in the Indenture or any Note; 

        (4)   the
existence of any claim, set-off or other rights which the Guarantor may have at any time against the Issuer, the Trustee or any other Person, whether in
connection with the Indenture or any unrelated transactions, provided that nothing herein prevents the assertion of any such claim by separate suit or
compulsory counterclaim; 

        (5)   any
invalidity or unenforceability relating to or against the Issuer for any reason of the Indenture or any Note, or any provision of applicable law or regulation
purporting to prohibit the payment by the Issuers of the principal of or interest on any Note or any other amount payable by the Issuers under the Indenture; or 

        (6)   any
other act or omission to act or delay of any kind by the Issuers, the Trustee or any other Person or any other circumstance whatsoever which might, but for the
provisions of this paragraph, constitute a legal or equitable discharge of or defense to such Guarantor's obligations hereunder. 

        Section 10.03.    Discharge; Reinstatement.    Each Guarantor's obligations hereunder will remain in full force
and effect until the principal of, premium, if any, and interest on the Notes and all other amounts payable by the Issuers under the Indenture have been paid in full. If at any time any payment of the
principal of, premium, if any, or interest on any Note or any other amount payable by the Issuers under the Indenture is rescinded or must be otherwise restored or returned upon the insolvency,
bankruptcy or reorganization of the Issuers or otherwise, each Guarantor's obligations hereunder with respect to such payment will be reinstated as though such payment had been due but not made at
such time. 

        Section 10.04.    Waiver by the Guarantors.    Each Guarantor irrevocably waives acceptance hereof,
presentment, demand, protest and any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against the Issuers or any other Person. 

        Section 10.05.    Subrogation and Contribution.    Upon making any payment with respect to any obligation of
the Issuers under this Article, the Guarantor making such payment will be subrogated to 

65

 

the
rights of the payee against the Issuers with respect to such obligation, provided that the Guarantor may not enforce either any right of
subrogation, or any right to receive payment in the nature of contribution, or otherwise, from any other Guarantor, with respect to such payment so long as any amount payable by the Issuers hereunder
or under the Notes remains unpaid. 

        Section 10.06.    Stay of Acceleration.    If acceleration of the time for payment of any amount payable by the
Issuers under the Indenture or the Notes is stayed upon the insolvency, bankruptcy or reorganization of the Issuers, all such amounts otherwise subject to acceleration under the terms of the Indenture
are nonetheless payable by the Guarantors hereunder forthwith on demand by the Trustee or the Holders. 

        Section 10.07.    Limitation on Amount of Guaranty.    Notwithstanding anything to the contrary in this
Article, each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Note Guaranty of such Guarantor not constitute a fraudulent
conveyance under applicable fraudulent conveyance provisions of the United States Bankruptcy Code or any comparable provision of state law. To effectuate that intention, the Trustee, the Holders and
the Guarantors hereby irrevocably agree that the obligations of each Guarantor under its Note Guaranty are limited to the maximum amount that would not render the Guarantor's obligations subject to
avoidance under applicable fraudulent conveyance provisions of the United States Bankruptcy Code or any comparable provision of state law. 

        Section 10.08.    Execution and Delivery of Guaranty.    The execution by each Guarantor of the Indenture (or a
supplemental indenture in the form of Exhibit B) evidences the Note Guaranty of such Guarantor, whether or not the person signing as an officer of the Guarantor still holds that office at the
time of authentication of any Note. The delivery of any Note by the Trustee after authentication constitutes due delivery of the Note Guaranty set forth in the Indenture on behalf of each Guarantor. 

        Section 10.09.    Release of Guaranty.    The Note Guaranty of a Guarantor will terminate upon 

        (1)   a
sale or other disposition (including by way of consolidation or merger or otherwise) of the Guarantor or the sale or disposition of all or substantially all the assets
of the Guarantor (other than to the Issuer or a Restricted Subsidiary) otherwise permitted by the Indenture, 

        (2)   a
sale of the majority of the Capital Stock of a Guarantor to a third Person otherwise permitted by the Indenture, after which the applicable Guarantor is no longer a
Restricted Subsidiary, 

        (3)   upon
a liquidation or dissolution of a Guarantor so long as no Default or Event of Default occurs as a result thereof, 

        (4)   the
designation by the Issuers in accordance with the Indenture of the Guarantor as an Unrestricted Subsidiary or the Guarantor otherwise ceases to be a Restricted
Subsidiary in accordance with the Indenture, 

        (5)   defeasance
or discharge of the Notes, as provided in Article 8, or 

        (6)   the
release, other than the discharge through payment by the Guarantor, of all other Guarantees by such Restricted Subsidiary of Debt of either Issuer. 

        Upon
delivery by the Issuers to the Trustee of an Officers' Certificate and an Opinion of Counsel to the foregoing effect, the Trustee will execute any documents reasonably required in
order to evidence the release of the Guarantor from its obligations under its Note Guaranty. 

66

 
 
 

ARTICLE 11
MISCELLANEOUS

        Section 11.01.    Trust Indenture Act of 1939.    The Indenture shall incorporate and be governed by the
provisions of the Trust Indenture Act that are required to be part of and to govern indentures qualified under the Trust Indenture Act. 

        Section 11.02.    Noteholder Communications; Noteholder Actions.    (a) The rights of Holders to
communicate with other Holders with respect to the Indenture or the Notes are as provided by the Trust Indenture Act, and the Issuers and the Trustee shall comply with the requirements of Trust
Indenture Act Sections 312(a) and 312(b). Neither Issuer nor the Trustee will be held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant
to the Trust Indenture Act. 

        (b)   (1)
Any request, demand, authorization, direction, notice, consent to amendment, supplement or waiver or other action provided by this Indenture to be given or taken by
a Holder (an "act") may be evidenced by an instrument signed by the Holder delivered to the Trustee. The fact and date of the execution of the
instrument, or the authority of the person executing it, may be proved in any manner that the Trustee deems sufficient. 

        (2)   The
Trustee may make reasonable rules for action by or at a meeting of Holders, which will be binding on all the Holders. 

        (c)   Any
act by the Holder of any Note binds that Holder and every subsequent Holder of a Note that evidences the same debt as the Note of the acting Holder, even if no
notation thereof appears on the Note. Subject to paragraph (d), a Holder may revoke an act as to its Notes, but only if the Trustee receives the notice of revocation before the date the
amendment or waiver or other consequence of the act becomes effective. 

        (d)   The
Issuers may, but are not obligated to, fix a record date (which need not be within the time limits otherwise prescribed by Trust Indenture Act Section 316(c))
for the purpose of determining the Holders entitled to act with respect to any amendment or waiver or in any other regard, except that during the continuance of an Event of Default, only the Trustee
may set a record date as to notices of default, any declaration or acceleration or any other remedies or other consequences of the Event of Default. If a record date is fixed, those Persons that were
Holders at such record date and only those Persons will be entitled to act, or to revoke any previous act, whether or not those Persons continue to be Holders after the record date. No act will be
valid or effective for more than 90 days after the record date. 

        Section 11.03.    Notices.    (a) Any notice or communication to the Issuers will be deemed given if in
writing (i) when delivered in person or (ii) five days after mailing when mailed by first class mail, or (iii) when sent by facsimile transmission, with transmission confirmed.
Notices or communications to a Guarantor will be deemed given if given to the Issuers. Any notice to the Trustee will be effective only upon receipt. In each case the notice or communication should be
addressed as follows: 

if to the Issuers:  

Cloud Peak Energy Resources LLC

Cloud Peak Energy Finance Corp.

c/o Cloud Peak Energy Inc.

505 S. Gillette Ave.

Gillette, WY 82716 

if to the Trustee: 

Wilmington
Trust Company 

67

 

if to the Registrar, Paying Agent and Authentication Agent: 

Citibank,
N.A. 

The
Issuers or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 

        (b)   Except
as otherwise expressly provided with respect to published notices, any notice or communication to a Holder will be deemed given when mailed to the Holder at its
address as it appears on the Register by first class mail or, as to any Global Note registered in the name of DTC or its nominee, as agreed by the Issuers, the Trustee and DTC. Copies of any notice or
communication to a Holder, if given by the Issuers, will be mailed to the Trustee at the same time. Defect in mailing a notice or communication to any particular Holder will not affect its sufficiency
with respect to other Holders. 

        (c)   Where
the Indenture provides for notice, the notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and the
waiver will be the equivalent of the notice. Waivers of notice by Holders must be filed with the Trustee, but such filing is not a condition precedent to the validity of any action taken in reliance
upon such waivers. 

        Section 11.04.    Certificate and Opinion as to Conditions Precedent.    Upon any request or application by the
Issuers to the Trustee to take any action under the Indenture, each Issuer will furnish to the Trustee: 

        (1)   an
Officers' Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in the Indenture relating to the proposed action
have been complied with; and 

        (2)   an
Opinion of Counsel stating that all such conditions precedent have been complied with. 

        Section 11.05.    Statements Required in Certificate or Opinion.    Each certificate or opinion with respect to
compliance with a condition or covenant provided for in the Indenture must include: 

        (1)   a
statement that each person signing the certificate or opinion has read the covenant or condition and the related definitions; 

        (2)   a
brief statement as to the nature and scope of the examination or investigation upon which the statement or opinion contained in the certificate or opinion is based; 

        (3)   a
statement that, in the opinion of each such person, that person has made such examination or investigation as is necessary to enable the person to express an informed
opinion as to whether or not such covenant or condition has been complied with; and 

        (4)   a
statement as to whether or not, in the opinion of each such person, such condition or covenant has been complied with,  provided that an Opinion of Counsel may rely on an Officers' Certificate or
certificates of public officials with respect to matters of fact. 

        Section 11.06.    Payment Date Other Than a Business Day.    If any payment with respect to a payment of any
principal of, premium, if any, or interest on any Note (including any payment to be made on any date fixed for redemption or purchase of any Note) is due on a day which is not a Business Day, then the
payment need not be made on such date, but may be made on the next Business Day with the same force and effect as if made on such date, and no interest will accrue for the intervening period. 

        Section 11.07.    Governing Law.    The Indenture, including any Note Guaranties, and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New York. 

68

 

        Section 11.08.    No Adverse Interpretation of Other Agreements.    The Indenture may not be used to interpret
another indenture or loan or debt agreement of the Company or any Subsidiary of the Company, and no such indenture or loan or debt agreement may be used to interpret the Indenture. 

        Section 11.09.    Successors.    All agreements of the Issuers or any Guarantor in the Indenture and the Notes
will bind its successors. All agreements of the Trustee in the Indenture will bind its successor. 

        Section 11.10.    Duplicate Originals.    The parties may sign any number of copies of the Indenture. Each
signed copy shall be an original, but all of them together represent the same agreement. 

        Section 11.11.    Separability.    In case any provision in the Indenture or in the Notes is invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. 

        Section 11.12.    Table of Contents and Headings.    The Table of Contents, Cross-Reference Table and headings
of the Articles and Sections of the Indenture have been inserted for convenience of reference only, are not to be considered a part of the Indenture and in no way modify or restrict any of the terms
and provisions of the Indenture. 

        Section 11.13.    No Liability of Directors, Officers, Employees, Incorporators, Members and
Stockholders.    No director, officer, employee, incorporator, member or stockholder of any Issuer or Guarantor, as such, will have any liability for any obligations
of such Issuer or such Guarantor under the Notes, any Note Guaranty or the Indenture or for any claim based on, in respect of, or by reason of, such obligations. Each Holder of Notes by accepting a
Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 

69

 
 
 

SIGNATURES    

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

 

 

					
	 
	 	CLOUD PEAK ENERGY FINANCE CORP., as Issuer
	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:
	 
	 	 CLOUD PEAK ENERGY RESOURCES LLC, as Co-Issuer

	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:
	 
	 	 WILMINGTON TRUST COMPANY, as Trustee

	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:
	 
	 	 Citibank, N.A.,

as Registrar, Paying Agent and Authentication Agent

	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:
	 
	 	 CORDERO MINING LLC

CORDERO MINING HOLDINGS LLC

CABALLO ROJO LLC

CABALLO ROJO HOLDINGS LLC

NERCO LLC

NERCO COAL LLC

ANTELOPE COAL LLC

SPRING CREEK COAL LLC

NERCO COAL SALES LLC

PROSPECT LAND AND DEVELOPMENT LLC

NORTHERN COAL TRANSPORTATION LLC

KENNECOTT COAL SALES LLC

RESOURCE DEVELOPMENT LLC

WESTERN MINERALS LLC

SEQUATCHIE VALLEY COAL CORPORATION

CLOUD PEAK ENERGY SERVICES COMPANY

	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:

 

 70

 

 
 

  EXHIBIT A-1    
    

[FACE
OF NOTE] 

CLOUD
PEAK ENERGY RESOURCES LLC

CLOUD PEAK ENERGY FINANCE CORP. 

[2016
RATE]% Senior Note Due 2016 

 

 

			
	 
	 	CUSIP                                    
	 No.
	 	

$                                  

 

         Cloud
Peak Energy Resources LLC, a Delaware limited liability company (the "Company") and Cloud Peak Energy Finance Corp., a
Delaware corporation (the "Co-Issuer" and together with the Company, the "Issuers", which
term includes any successor under the Indenture hereinafter referred to), for value received, jointly and severally promise to pay
to                                    , or its registered assigns, the
principal sum of
                                    DOLLARS
($                        ) [or such other amount as indicated on the Schedule of Exchange of Notes attached hereto](2) on
December 15, 2016. 

        Initial
Interest Rate: [2016 RATE]% per annum. 

        Interest
Payment Dates: June 15 and December 15, commencing June 15, 2010. 

        Regular
Record Dates: June 1 and December 1. 

        Reference
is hereby made to the further provisions of this Note set forth on the reverse hereof, which will for all purposes have the same effect as if set forth at this place. 

	(2)
	For
Global Notes 

A-1-1

 

        IN
WITNESS WHEREOF, the Issuers have caused this Note to be signed manually or by facsimile by its duly authorized officers. 

 

 

					
	Date:	 	CLOUD PEAK ENERGY RESOURCES LLC
	

 	
 	
By:	
 	

 
	 	 	 	 	

  Name:

Title:
	

 	
 	
CLOUD PEAK ENERGY FINANCE CORP.
	

 	
 	
By:	
 	

 
	 	 	 	 	

  Name:

Title:

 

 A-1-2

 
(Form
of Trustee's Certificate of Authentication) 

        This
is one of the [2016 RATE]% Senior Notes Due 2016 described in the Indenture referred to in this Note. 

 

 

					
	 	 	WILMINGTON TRUST COMPANY,

as Trustee
	

 	
 	
Citibank, N.A.,

as Authentication Agent
	

 	
 	
By:	
 	

 
	 	 	 	 	

  Authorized Signatory

 

 A-1-3

 
[REVERSE
SIDE OF NOTE] 

CLOUD
PEAK ENERGY RESOURCES LLC

CLOUD PEAK ENERGY FINANCE CORP. 

[2016
RATE]% Senior Note Due 2016 

	1.
	Principal and Interest.

        The
Issuers jointly and severally promise to pay the principal of this Note on December 15, 2016. 

        The
Issuers jointly and severally promise to pay interest on the principal amount of this Note on each interest payment date, as set forth on the face of this Note, at the rate of
[2016 RATE]% per annum [(subject to adjustment as provided below)].(1) 

        Interest
will be payable semiannually (to the Holders of record of the Notes at the close of business on the June 1 or December 1 immediately preceding the interest payment
date) on each interest payment date, commencing June 15, 2010. 

        [The
Holder of this Note is entitled to the benefits of the Registration Rights Agreement,
dated                                    , between the Issuers and the
Initial Purchasers named therein
(the "Registration Rights Agreement").](2) 

        Interest
on this Note will accrue from the most recent date to which interest has been paid on this Note [or the Note surrendered in exchange for this Note](3)
(or, if there is no existing default in the payment of interest and if this Note is authenticated between a regular record date and the next interest payment date, from such interest payment date) or,
if no interest has been paid, from [the Issue Date].(4) Interest will be computed in the basis of a 360-day year of twelve 30-day months. 

        The
Issuers will pay interest on overdue principal, premium, if any, and, to the extent lawful, interest at a rate per annum that is 1% in excess of [2016 RATE]%.
Interest not paid when due and any interest on principal, premium or interest not paid when due will be paid to the Persons that are Holders on a special record date, which will be the 15th day
preceding the date fixed by the Issuers for the payment of such interest, whether or not such day is a Business Day. At least 15 days before a special record date, the Issuers will send to each
Holder and to the Trustee a notice that sets forth the special record date, the payment date and the amount of interest to be paid.  

	2.
	Indentures; Note Guaranty.

        This
is one of the 2016 Notes issued as a series under an Indenture dated as of [AS OF DATE] (as amended from time to time, the
"Indenture"), among the Issuers, the Co-Issuer, the Guarantors party thereto, Wilmington Trust Company, as Trustee and Citibank, N.A., as
Registrar, Paying Agent and Authentication Agent. Capitalized terms used herein are used as defined in the Indenture unless otherwise indicated. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act. The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act
for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Note and the terms of the Indenture, the terms of the
Indenture will control. 

	(1)
	Include
only for Initial Note or Initial Additional Note.

	(2)
	Include
only for Initial Note or Initial Additional Note.

	(3)
	Include
only for Exchange Note.

	(4)
	For
Additional Notes, should be the date of their original issue. 

A-1-4

 

        The
Notes are general unsecured obligations of the Issuers. The Indenture limits the original aggregate principal amount of the Notes to $[2016 AMOUNT], but
Additional Notes of such series may be issued pursuant to the Indenture, and the originally issued Notes and all such Additional Notes vote together for all purposes as a single class. This Note is
guarantied as set forth in the Indenture.  

	3.
	Redemption and Repurchase; Discharge Prior to Redemption or Maturity.

        Except
as set forth in the next three paragraphs, the Notes are not redeemable at the option of the Issuers. There will be no mandatory redemption or sinking fund payments applicable to
the Notes. 

        At
any time prior to December 15, 2013, the Issuers may redeem the Notes, in whole or in part, on not less than 30 nor more than 60 days' prior notice, by paying a
redemption price equal to 100% of the principal amount of the Notes to be redeemed plus the Applicable Premium as of, and accrued and unpaid interest, if any, to, the applicable redemption date
(subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date). 

        At
any time and from time to time on or after December 15, 2013, the Issuers may redeem the Notes, in whole or in part, at a redemption price equal to the percentage of principal
amount set forth below plus accrued and unpaid interest to the redemption date. 

 

 

					
	12-month period commencing December 15 in Year

 
	 	Percentage 	 
	 2013
	 	 	 	%
	 2014
	 	 	 	%
	 2015 and thereafter
	 	 	100	%

 

         At
any time and from time to time prior to December 15, 2012, the Issuers may redeem the Notes with the net cash proceeds received by the Company from one or more Equity Offerings
at a redemption price equal to [2016 REDEMPTION]% of the principal amount plus accrued and unpaid interest to the redemption date, in an aggregate principal amount for all such
redemptions not to exceed 35% of the original aggregate principal amount of the Notes, including Additional Notes, provided that 

        (1)   in
each case, the redemption takes place not later than 90 days after the closing of the related Equity Offering, and 

        (2)   not
less than 65% of the aggregate principal amount of the Notes originally issued on the Issue Date remains outstanding immediately thereafter. 

        If
the Issuers deposit with the Trustee money or U.S. Government Obligations sufficient to pay the then outstanding principal of, premium, if any, and accrued interest on the Notes to
redemption or maturity, the Issuers may in certain circumstances be discharged from the Indenture and the Notes or may be discharged from certain of its obligations under certain provisions of the
Indenture.  

	4.
	Registered Form; Denominations; Transfer; Exchange.

        The
Notes are in registered form without coupons in denominations of $2,000 principal amount and any multiple of $1,000 in excess thereof. A Holder may register the transfer or exchange
of Notes in accordance with the Indenture. The Trustee may require a Holder to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the
Indenture. Pursuant to the Indenture, there are certain periods during which the Trustee will not be required to issue, register the transfer of or exchange any Note or certain portions of a Note. 

	5.
	Defaults and Remedies.

        If
an Event of Default, as defined in the Indenture, occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Notes may declare all the Notes to be
due and payable. If a bankruptcy or insolvency default with respect to the Issuers occurs and is continuing, the 

A-1-5

 

Notes
automatically become due and payable. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it
enforces the Indenture or the Notes. Subject to certain limitations, Holders of a majority in principal amount of the Notes then outstanding may direct the Trustee in its exercise of remedies. 

	6.
	Amendment and Waiver.

        Subject
to certain exceptions, the Indenture and the Notes may be amended, or default may be waived, with the consent of the Holders of a majority in principal amount of the outstanding
Notes. Without notice to or the consent of any Holder, the Issuers and the Trustee may amend or supplement the Indenture or the Notes to, among other things, cure any ambiguity, defect or
inconsistency if such amendment or supplement does not adversely affect the interests of the Holders in any material respect.  

	7.
	Authentication.

        This
Note is not valid until the Trustee (or Authenticating Agent) signs the certificate of authentication on the other side of this Note.  

	8.
	Governing Law.

        This
Note shall be governed by, and construed in accordance with, the laws of the State of New York.  

	9.
	Abbreviations.

        Customary
abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with
right of survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A/ (= Uniform Gifts to Minors Act). 

        The
Issuers will furnish a copy of the Indenture to any Holder upon written request and without charge. 

A-1-6

 
[FORM
OF TRANSFER NOTICE] 

        FOR
VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 

 

 

	
	Insert Taxpayer Identification No.
	
 
	

  
	 
	

  Please print or typewrite name and address including zip code of assignee
	 
	

  the within Note and all rights thereunder, hereby irrevocably constituting and appointing
	 
	

  
	attorney to transfer said Note on the books of the Issuers with full power of substitution in the premises.

 

 A-1-7

 

[THE
FOLLOWING PROVISION TO BE INCLUDED ON ALL CERTIFICATES BEARING A RESTRICTED LEGEND] 

        In
connection with any transfer of this Note occurring prior
to                                    (3), the undersigned confirms
that such transfer is made without utilizing any general solicitation or
general advertising and further as follows: 

Check One

	o
	(1) This
Note is being transferred to a "qualified institutional buyer" in compliance with
Rule 144A under the Securities Act of 1933, as amended and certification in the form of Exhibit F to the Indenture is being furnished herewith.

	o
	(2) This
Note is being transferred to a Non-U.S. Person in compliance with the exemption from
registration under the Securities Act of 1933, as amended, provided by Regulation S thereunder, and certification in the form of Exhibit E to the Indenture is being furnished herewith. 

or

	o
	(3) This
Note is being transferred other than in accordance with (1) or (2) above and
documents are being furnished which comply with the conditions of transfer set forth in this Note and the Indenture. 

        If none of the foregoing boxes is checked, the Trustee is not obligated to register this Note in the name of any Person other than the Holder hereof unless and
until the conditions to any such transfer of registration set forth herein and in the Indenture have been satisfied. 

 

 

							
	Date:	 	 	 	 	 	 
	 	 	

  	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	

  Seller
	

 	
 	

 	
 	
 By	
 	

 
	 	 	 	 	 	 	

  

 

  

 

 

							
	 	 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any change whatsoever.
	
 Signature Guarantee:(5)	
 	

 	
 	

 	
 	

 
	 	 	

  	 	 
	

 	
 	
By	
 	

 	
 	

 
	 	 	 	 	

  	 	 
	 	 	 	 	To be executed by an executive officer

 

 

	(3)
	One
year after date of initial issuance or a later date when purchased from an affiliate.

	(5)
	Signatures
must be guaranteed by an "eligible guarantor institution" meeting the requirements of the
Registrar, which requirements include membership or participation in the Securities Transfer Association Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended. 

A-1-8

 
OPTION
OF HOLDER TO ELECT PURCHASE 

        If
you wish to have all of this Note purchased by the Issuers pursuant to Section 4.11 or Section 4.12 of the Indenture, check the box: 9 

        If
you wish to have a portion of this Note purchased by the Issuers pursuant to Section 4.11 or Section 4.12 of the Indenture, state the amount (in original principal
amount) below: 

$                                        
             .

Date:                                  

Your
Signature:                                       
                       

(Sign exactly as your name appears on the other side of this Note) 

Signature
Guarantee:(1)
                                         
                          
 

	(1)
	Signatures
must be guaranteed by an "eligible guarantor institution" meeting the requirements of the
Trustee, which requirements include membership or participation in the Securities Transfer Association Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended. 

A-1-9

 
 SCHEDULE OF EXCHANGES OF NOTES(1)  

        The following exchanges of a part of this Global Note for Physical Notes or a part of another Global Note have been made: 

 

 

														
	Date of Exchange

 
	 	Amount of decrease

in principal amount

of this Global Note 	 	Amount of increase

in principal amount

of this Global Note 	 	Principal amount of

this Global Note

following such

decrease (or increase) 	 	Signature of

authorized officer

of Trustee 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	(1)
	For
Global Notes 

A-1-10

 

 
 

  EXHIBIT A-2    
    

[FACE
OF NOTE] 

CLOUD
PEAK ENERGY RESOURCES LLC

CLOUD PEAK ENERGY FINANCE CORP. 

[2019
RATE]% Senior Note Due 2019 

 

 

			
	 
	 	CUSIP                                    
	 No.
	 	

$                                  

 

         Cloud
Peak Energy Resources LLC, a Delaware limited liability company (the "Company") and Cloud Peak Energy Finance Corp., a
Delaware corporation (the "Co-Issuer" and together with the Company, the "Issuers", which
term includes any successor under the Indenture hereinafter referred to), for value received, jointly and severally promise to pay
to                                    , or its registered assigns, the
principal sum of
                                    DOLLARS
($                        ) [or such other amount as indicated on the Schedule of Exchange of Notes attached hereto](4) on
December 15, 2019. 

        Initial
Interest Rate: [2019 RATE]% per annum. 

        Interest
Payment Dates: June 15 and December 15, commencing June 15, 2010. 

        Regular
Record Dates: June 1 and December 1. 

        Reference
is hereby made to the further provisions of this Note set forth on the reverse hereof, which will for all purposes have the same effect as if set forth at this place. 

	(4)
	For
Global Notes. 

A-2-1

 

        IN
WITNESS WHEREOF, the Issuers have caused this Note to be signed manually or by facsimile by its duly authorized officers. 

 

 

					
	Date:	 	CLOUD PEAK ENERGY RESOURCES LLC
	

 	
 	
By:	
 	

 
	 	 	 	 	

  Name:

Title:
	

 	
 	
CLOUD PEAK ENERGY FINANCE CORP.
	

 	
 	
By:	
 	

 
	 	 	 	 	

  Name:

Title:

 

 A-2-2

 
(Form
of Trustee's Certificate of Authentication) 

        This
is one of the [2019 RATE]% Senior Notes Due 2019 described in the Indenture referred to in this Note. 

 

 

					
	 	 	WILMINGTON TRUST COMPANY,

as Trustee
	

 	
 	
Citibank, N.A.,

as Authentication Agent
	

 	
 	
By:	
 	

 
	 	 	 	 	

  Authorized Signatory

 

 A-2-3

 
[REVERSE
SIDE OF NOTE] 

CLOUD
PEAK ENERGY RESOURCES LLC

CLOUD PEAK ENERGY FINANCE CORP. 

[2019
RATE]% Senior Note Due 2019 

	1.
	Principal and Interest.

        The
Issuers jointly and severally promise to pay the principal of this Note on December 15, 2019. 

        The
Issuers jointly and severally promise to pay interest on the principal amount of this Note on each interest payment date, as set forth on the face of this Note, at the rate of
[2019 RATE]% per annum [(subject to adjustment as provided below)].(1) 

        Interest
will be payable semiannually (to the Holders of record of the Notes at the close of business on the June 1 or December 1 immediately preceding the interest payment
date) on each interest payment date, commencing June 15, 2010. 

        [The
Holder of this Note is entitled to the benefits of the Registration Rights Agreement,
dated                                    , between the Issuers and the
Initial Purchasers named therein
(the "Registration Rights Agreement").](2) 

        Interest
on this Note will accrue from the most recent date to which interest has been paid on this Note [or the Note surrendered in exchange for this Note](3)
(or, if there is no existing default in the payment of interest and if this Note is authenticated between a regular record date and the next interest payment date, from such interest payment date) or,
if no interest has been paid, from [the Issue Date].(4) Interest will be computed in the basis of a 360-day year of twelve 30-day months. 

        The
Issuers will pay interest on overdue principal, premium, if any, and, to the extent lawful, interest at a rate per annum that is 1% in excess of [2019 RATE]%.
Interest not paid when due and any interest on principal, premium or interest not paid when due will be paid to the Persons that are Holders on a special record date, which will be the 15th day
preceding the date fixed by the Issuers for the payment of such interest, whether or not such day is a Business Day. At least 15 days before a special record date, the Issuers will send to each
Holder and to the Trustee a notice that sets forth the special record date, the payment date and the amount of interest to be paid.  

	2.
	Indentures; Note Guaranty.

        This
is one of the 2019 Notes issued as a series under an Indenture dated as of [AS OF DATE] (as amended from time to time, the
"Indenture"), among the Issuers, the Co-Issuer, the Guarantors party thereto, Wilmington Trust Company, as Trustee and Citibank, N.A., as
Registrar, Paying Agent and Authentication Agent. Capitalized terms used herein are used as defined in the Indenture unless otherwise indicated. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act. The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act
for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Note and the terms of the Indenture, the terms of the
Indenture will control. 

	(1)
	Include
only for Initial Note or Initial Additional Note.

	(2)
	Include
only for Initial Note or Initial Additional Note.

	(3)
	Include
only for Exchange Note.

	(4)
	For
Additional Notes, should be the date of their original issue. 

A-2-4

 

        The
Notes are general unsecured obligations of the Issuers. The Indenture limits the original aggregate principal amount of the Notes to $[2019 AMOUNT], but
Additional Notes of such series may be issued pursuant to the Indenture, and the originally issued Notes and all such Additional Notes vote together for all purposes as a single class. This Note is
guarantied as set forth in the Indenture.  

	3.
	Redemption and Repurchase; Discharge Prior to Redemption or Maturity.

        Except
as set forth in the next three paragraphs, the Notes are not redeemable at the option of the Issuers. There will be no mandatory redemption or sinking fund payments applicable to
the Notes. 

        At
any time prior to December 15, 2014, the Issuers may redeem the 2019 Notes, in whole or in part, on not less than 30 nor more than 60 days' prior notice, by paying a
redemption price equal to 100% of the principal amount of the 2019 Notes to be redeemed plus the Applicable Premium as of, and accrued and unpaid interest, if any, to, the applicable redemption date
(subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date). 

        At
any time and from time to time on or after December 15, 2014, the Issuers may redeem the 2019 Notes, in whole or in part, at a redemption price equal to the percentage of
principal amount set forth below plus accrued and unpaid interest to the redemption date. 

 

 

					
	12-month period commencing December 15 in Year

 
	 	Percentage 	 
	 2014
	 	 	 	%
	 2015
	 	 	 	%
	 2016
	 	 	 	%
	 2017 and thereafter
	 	 	100	%

 

         At
any time and from time to time prior to December 15, 2012, the Issuers may redeem the 2019 Notes with the net cash proceeds received by the Company from one or more Equity
Offerings at a redemption price equal to [2019 REDEMPTION]% of the principal amount plus accrued and unpaid interest to the redemption date, in an aggregate principal amount
for all such redemptions not to exceed 35% of the original aggregate principal amount of the 2019 Notes, including additional 2019 Notes, provided that 

        (1)   in
each case, the redemption takes place not later than 90 days after the closing of the related Equity Offering, and 

        (2)   not
less than 65% of the aggregate principal amount of the 2019 Notes originally issued on the Issue Date remains outstanding immediately thereafter. 

        If
the Issuers deposit with the Trustee money or U.S. Government Obligations sufficient to pay the then outstanding principal of, premium, if any, and accrued interest on the Notes to
redemption or maturity, the Issuers may in certain circumstances be discharged from the Indenture and the Notes or may be discharged from certain of its obligations under certain provisions of the
Indenture.  

	4.
	Registered Form; Denominations; Transfer; Exchange.

        The
Notes are in registered form without coupons in denominations of $2,000 principal amount and any multiple of $1,000 in excess thereof. A Holder may register the transfer or exchange
of Notes in accordance with the Indenture. The Trustee may require a Holder to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the
Indenture. Pursuant to the Indenture, there are certain periods during which the Trustee will not be required to issue, register the transfer of or exchange any Note or certain portions of a Note. 

A-2-5

 
	5.
	Defaults and Remedies.

        If
an Event of Default, as defined in the Indenture, occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Notes may declare all the Notes to be
due and payable. If a bankruptcy or insolvency default with respect to the Issuers occurs and is continuing, the Notes automatically become due and payable. Holders may not enforce the Indenture or
the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Notes. Subject to certain limitations, Holders of a majority
in principal amount of the Notes then outstanding may direct the Trustee in its exercise of remedies.  

	6.
	Amendment and Waiver.

        Subject
to certain exceptions, the Indenture and the Notes may be amended, or default may be waived, with the consent of the Holders of a majority in principal amount of the outstanding
Notes. Without notice to or the consent of any Holder, the Issuers and the Trustee may amend or supplement the Indenture or the Notes to, among other things, cure any ambiguity, defect or
inconsistency if such amendment or supplement does not adversely affect the interests of the Holders in any material respect.  

	7.
	Authentication.

        This
Note is not valid until the Trustee (or Authenticating Agent) signs the certificate of authentication on the other side of this Note.  

	8.
	Governing Law.

        This
Note shall be governed by, and construed in accordance with, the laws of the State of New York.  

	9.
	Abbreviations.

        Customary
abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with
right of survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A/ (= Uniform Gifts to Minors Act). 

        The
Issuers will furnish a copy of the Indenture to any Holder upon written request and without charge. 

A-2-6

 
[FORM
OF TRANSFER NOTICE] 

        FOR
VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 

 

 

	
	Insert Taxpayer Identification No.
	
 
	

  
	 
	

  Please print or typewrite name and address including zip code of assignee
	 
	

  the within Note and all rights thereunder, hereby irrevocably constituting and appointing
	 
	

  
	attorney to transfer said Note on the books of the Issuers with full power of substitution in the premises.

 

 A-2-7

 

[THE
FOLLOWING PROVISION TO BE INCLUDED ON ALL CERTIFICATES BEARING A RESTRICTED LEGEND] 

        In
connection with any transfer of this Note occurring prior
to                                    (5), the undersigned confirms
that such transfer is made without utilizing any general solicitation or
general advertising and further as follows: 

Check One

	o
	(1) This
Note is being transferred to a "qualified institutional buyer" in compliance with
Rule 144A under the Securities Act of 1933, as amended and certification in the form of Exhibit F to the Indenture is being furnished herewith.

	o
	(2) This
Note is being transferred to a Non-U.S. Person in compliance with the exemption from
registration under the Securities Act of 1933, as amended, provided by Regulation S thereunder, and certification in the form of Exhibit E to the Indenture is being furnished herewith. 

or

	o
	(3) This
Note is being transferred other than in accordance with (1) or (2) above and
documents are being furnished which comply with the conditions of transfer set forth in this Note and the Indenture. 

        If none of the foregoing boxes is checked, the Trustee is not obligated to register this Note in the name of any Person other than the Holder hereof unless and
until the conditions to any such transfer of registration set forth herein and in the Indenture have been satisfied. 

 

 

							
	Date:	 	 	 	 	 	 
	 	 	

  	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	

  Seller
	

 	
 	

 	
 	
 By	
 	

 
	 	 	 	 	 	 	

  

 

  

 

 

							
	 	 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any change whatsoever.
	
 Signature Guarantee:(6)	
 	

 	
 	

 	
 	

 
	 	 	

  	 	 
	

 	
 	
By	
 	

 	
 	

 
	 	 	 	 	

  	 	 
	 	 	 	 	To be executed by an executive officer

 

 

	(5)
	One
year after date of initial issuance or a later date when purchased from an affiliate.

	(6)
	Signatures
must be guaranteed by an "eligible guarantor institution" meeting the requirements of the
Registrar, which requirements include membership or participation in the Securities Transfer Association Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended. 

A-2-8

 
OPTION
OF HOLDER TO ELECT PURCHASE 

        If
you wish to have all of this Note purchased by the Issuers pursuant to Section 4.11 or Section 4.12 of the Indenture, check the box: 9 

        If
you wish to have a portion of this Note purchased by the Issuers pursuant to Section 4.11 or Section 4.12 of the Indenture, state the amount (in original principal
amount) below: 

$                                        
             .

Date:                                  

Your
Signature:                                       
                       

(Sign exactly as your name appears on the other side of this Note) 

Signature
Guarantee:(1)
                                         
                          
 

	(1)
	Signatures
must be guaranteed by an "eligible guarantor institution" meeting the requirements of the
Trustee, which requirements include membership or participation in the Securities Transfer Association Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended. 

A-2-9

 
 SCHEDULE OF EXCHANGES OF NOTES(1)  

        The
following exchanges of a part of this Global Note for Physical Notes or a part of another Global Note have been made: 

 

 

														
	Date of Exchange

 
	 	Amount of decrease

in principal amount

of this Global Note 	 	Amount of increase

in principal amount

of this Global Note 	 	Principal amount of

this Global Note

following such

decrease (or increase) 	 	Signature of

authorized officer

of Trustee 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	(1)
	For
Global Notes 

A-2-10

 
 

  EXHIBIT B    
    

SUPPLEMENTAL INDENTURE  

dated as
of                                    ,
                        
 

among

Cloud
Peak Energy Resources LLC

and

Cloud Peak Energy Finance Corp.

as Issuers 

The
Guarantors Party Hereto 

and

Wilmington
Trust Company,

as Trustee 

and

Citibank,
N.A.,

as Registrar, Paying Agent and Authentication Agent 

 

[2016
RATE]% Senior Notes due 2016

[2019 RATE]% Senior Notes due 2019 

 

  
        THIS SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), entered into as
of                                    ,
                        , Cloud Peak Energy
Resources LLC, a Delaware limited liability company (the "Company"), Cloud Peak Energy Finance Corp., a Delaware corporation (the
"Co-Issuer," and together with the Company, the "Issuers"), [insert each
Guarantor executing this Supplemental Indenture and its jurisdiction of incorporation] (each an "Undersigned"), Wilmington Trust Company, as
trustee (the "Trustee") and Citibank, N.A., as Registrar, Paying Agent and Authentication Agent (the "Registrar, Paying Agent
and Authentication Agent"). 

 RECITALS  

        WHEREAS, the Company, the Guarantors party thereto, the Trustee and the Registrar, Paying Agent and Authentication Agent entered into
the Indenture, dated as of [AS OF DATE] (the "Indenture"), relating to the Issuers' [2016 RATE]% Senior
Notes Due 2016 and to the Issuers' [2019 RATE]% Senior Notes Due 2019 (collectively, the "Notes"); 

        WHEREAS,
as a condition to the Trustee entering into the Indenture and the purchase of the Notes by the Holders, the Company agreed pursuant to the Indenture to cause any newly acquired
or created Restricted Subsidiaries that Guarantees any Debt under the Credit Agreement to provide Guaranties in certain circumstances. 

 AGREEMENT  

        NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and intending to be legally bound, the parties
to this Supplemental Indenture hereby agree as follows: 

        Section 1.
Capitalized terms used herein and not otherwise defined herein are used as defined in the Indenture. 

        Section 2.
Each Undersigned, by its execution of this Supplemental Indenture, agrees to be a Guarantor under the Indenture and to be bound by the terms of the Indenture applicable
to Guarantors, including, but not limited to, Article 10 thereof. 

        Section 3.
This Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. 

        Section 4.
This Supplemental Indenture may be signed in various counterparts which together will constitute one and the same instrument. 

        Section 5.
This Supplemental Indenture is an amendment supplemental to the Indenture and the Indenture and this Supplemental Indenture will henceforth be read together. 

B-1

 

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

 

 

					
	 
	 	Cloud Peak Energy Resources LLC,

as the Company
	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:
	 
	 	 Cloud Peak Energy Finance Corp.,

as Co-Issuer

	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:
	 
	 	 [GUARANTOR]

	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:
	 
	 	 Wilmington Trust Company, as Trustee

	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:
	 
	 	 Citibank, N.A., as Registrar, Paying Agent and Authentication Agent

	 
	 	 By:
	 	 
	 
	 	 	 	

  Name:

Title:

 

 B-2

 

 
 

  EXHIBIT C    
    

RESTRICTED
LEGEND 

        THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN
ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER 

        (1)   REPRESENTS
THAT 

        (A)  IT
AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A "QUALIFIED INSTITUTIONAL BUYER" (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE
INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, 

        (B)  IT
IS AN INSTITUTIONAL "ACCREDITED INVESTOR" (WITHIN THE MEANING OF RULE 501(a) (1), (2), (3) OR (7) UNDER THE SECURITIES ACT) (AN "INSTITUTIONAL
ACCREDITED INVESTOR") OR 

        (C)  IT
IS NOT A U.S. PERSON (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT) AND 

        (2)   AGREES
FOR THE BENEFIT OF THE ISSUERS THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT IN ACCORDANCE WITH
THE SECURITIES ACT AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ONLY 

        (A)  TO
THE ISSUERS, 

        (B)  PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, 

        (C)  TO
A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, 

        (D)  IN
AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, 

        (E)  IN
A PRINCIPAL AMOUNT OF NOT LESS THAN $250,000, TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, DELIVERS TO THE TRUSTEE A DULY COMPLETED AND
SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE, OR 

        (F)  PURSUANT
TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. 

PRIOR
TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(C) ABOVE OR (2)(D) ABOVE, A DULY COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) MUST BE
DELIVERED TO THE TRUSTEE. PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(E) OR (F) ABOVE, THE ISSUERS RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS,
CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED
TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY RULE 144 EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. 

C-1

 

 
 

  EXHIBIT D    
    

DTC
LEGEND 

        UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
THE ISSUERS OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS A BENEFICIAL INTEREST HEREIN. 

        TRANSFERS
OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE INDENTURE. 

D-1

 

 
 

  EXHIBIT E    
    

Regulation S
Certificate 

                                    ,
                        

Wilmington
Trust Company

[ADDRESS OF TRUSTEE]

Attention: Corporate Trust Administration  

	Re:
	Cloud
Peak Energy Resources LLC and

Cloud Peak Energy Finance Corp.

[[2016 RATE]% Senior Notes due 2016]

[[2019 RATE]% Senior Notes due 2019] (the "Notes")

Issued under the Indenture (the "Indenture") dated

as as of [AS OF DATE] relating to the Notes           

Ladies
and Gentlemen: 

        Terms
are used in this Certificate as used in Regulation S ("Regulation S") under the Securities Act of 1933, as amended (the "Securities Act"), except as otherwise stated
herein. 

        [CHECK A OR B AS APPLICABLE.]

 

 

					
	o A.	 	This Certificate relates to our proposed transfer of $                        principal amount of Notes
issued under the Indenture. We hereby certify as follows:
	

 	
 	
1.	
 	
The offer and sale of the Notes was not and will not be made to a person in the United States (unless such person is excluded from the definition of "U.S. person" pursuant to Rule 902(k)(2)(vi) or the account
held by it for which it is acting is excluded from the definition of "U.S. person" pursuant to Rule 902(k)(2)(i) under the circumstances described in Rule 902(h)(3)) and such offer and sale was not and will not be specifically targeted at
an identifiable group of U.S. citizens abroad.
	

 	
 	
2.	
 	
Unless the circumstances described in the parenthetical in paragraph 1 above are applicable, either (a) at the time the buy order was originated, the buyer was outside the United States or we and any person
acting on our behalf reasonably believed that the buyer was outside the United States or (b) the transaction was executed in, on or through the facilities of a designated offshore securities market, and neither we nor any person acting on our
behalf knows that the transaction was pre-arranged with a buyer in the United States.
	

 	
 	
3.	
 	
Neither we, any of our affiliates, nor any person acting on our or their behalf has made any directed selling efforts in the United States with respect to the Notes.
	

 	
 	
4.	
 	
The proposed transfer of Notes is not part of a plan or scheme to evade the registration requirements of the Securities Act.
	

 	
 	
5.	
 	
If we are a dealer or a person receiving a selling concession, fee or other remuneration in respect of the Notes, and the proposed transfer takes place during the Restricted Period (as defined in the Indenture), or we
are an officer or director of the Company, the Co-Issuer or an Initial Purchaser (as defined in the Indenture), we certify that the proposed transfer is being made in accordance with the provisions of Rule 904(b) of
Regulation S.

 

 E-1

 
 

 

					
	o B.	 	This Certificate relates to our proposed exchange of $                        principal amount of Notes
issued under the Indenture for an equal principal amount of Notes to be held by us. We hereby certify as follows:
	

 	
 	
1.	
 	
At the time the offer and sale of the Notes was made to us, either (i) we were not in the United States or (ii) we were excluded from the definition of "U.S. person" pursuant to Rule 902(k)(2)(vi) or
the account held by us for which we were acting was excluded from the definition of "U.S. person" pursuant to Rule 902(k)(2)(i) under the circumstances described in Rule 902(h)(3); and we were not a member of an identifiable group of U.S.
citizens abroad.
	

 	
 	
2.	
 	
Unless the circumstances described in paragraph 1(ii) above are applicable, either (a) at the time our buy order was originated, we were outside the United States or (b) the transaction was executed in,
on or through the facilities of a designated offshore securities market and we did not pre-arrange the transaction in the United States.
	

 	
 	
3.	
 	
The proposed exchange of Notes is not part of a plan or scheme to evade the registration requirements of the Securities Act.

 

         You
and the Issuers are entitled to rely upon this Certificate and are irrevocably authorized to produce this Certificate or a copy hereof to any interested party in any administrative
or legal proceeding or official inquiry with respect to the matters covered hereby. 

 

 

							
	 	 	 	 	Very truly yours,
	

 	
 	

 	
 	
[NAME OF SELLER (FOR TRANSFERS) OR OWNER (FOR EXCHANGES)]
	

 	
 	
 	
 	
By:	
 	

 
	 	 	 	 	 	 	

  Name:

Title:

Address:
	
 Date:	
 	

 	
 	

 	
 	

 
	 	 	

  	 	 	 	 

 

 E-2

 

 
 

  EXHIBIT F    
    

Rule 144A
Certificate 

                                    ,
                        

Wilmington
Trust Company

[ADDRESS OF TRUSTEE]

Attention: Corporate Trust Administration  

	Re:
	Cloud
Peak Energy Resources LLC and

Cloud Peak Energy Finance Corp.

[[2016 RATE]% Senior Notes due 2016]

[[2019 RATE]% Senior Notes due 2019] (the "Notes")

Issued under the Indenture (the "Indenture") dated as

as of [AS OF DATE] relating to the Notes           

Ladies
and Gentlemen: 

        TO
BE COMPLETED BY PURCHASER IF (1) ABOVE IS CHECKED. 

        This
Certificate relates to: 

        [CHECK A OR B AS APPLICABLE.]

 

 

			
	o A.	 	Our proposed purchase of $                        principal amount of Notes issued under the
Indenture.
	
 o B.	
 	
Our proposed exchange of $                        principal amount of Notes issued under the
Indenture for an equal principal amount of Notes to be held by us.

 

         We
and, if applicable, each account for which we are acting in the aggregate owned and invested more than $100,000,000 in securities of issuers that are not affiliated with us (or such
accounts, if applicable), as of                                    ,
200    , which is a date on or since close of our most recent fiscal year. We and, if applicable, each account for which we are acting, are a
qualified institutional buyer within the meaning of Rule 144A ("Rule 144A") under the Securities Act of 1933, as amended (the "Securities Act"). If we are acting on behalf of an account,
we exercise sole investment discretion with respect to such account. We are aware that the transfer of Notes to us, or such exchange, as applicable, is being made in reliance upon the exemption from
the provisions of Section 5 of the Securities Act provided by Rule 144A. Prior to the date of this Certificate we have received such information regarding the Issuers as we have
requested pursuant to Rule 144A(d)(4) or have determined not to request such information. 

F-1

 

        You
and the Issuers are entitled to rely upon this Certificate and are irrevocably authorized to produce this Certificate or a copy hereof to any interested party in any administrative
or legal proceeding or official inquiry with respect to the matters covered hereby. 

 

							
	 	 	 	 	Very truly yours,
	

 	
 	

 	
 	
[NAME OF PURCHASER (FOR TRANSFERS) OR OWNER (FOR EXCHANGES)]
	

 	
 	
 	
 	
By:	
 	

 
	 	 	 	 	 	 	

  Name:

Title:

Address:
	
 Date:	
 	

 	
 	

 	
 	

 
	 	 	

  	 	 	 	 

 

 F-2

 

 
 

  EXHIBIT G    
    

Institutional
Accredited Investor Certificate 

Wilmington
Trust Company

[ADDRESS OF TRUSTEE]

Attention: Corporate Trust Administration  

	Re:
	Cloud
Peak Energy Resources LLC and

Cloud Peak Energy Finance Corp.

[[2016 RATE]% Senior Notes due 2016]

[[2019 RATE]% Senior Notes due 2019] (the "Notes")

Issued under the Indenture (the "Indenture") dated as

as of [AS OF DATE] relating to the Notes           

Ladies
and Gentlemen: 

        This
Certificate relates to: 

        [CHECK A OR B AS APPLICABLE.]

 

 

			
	o A.	 	Our proposed purchase of $                        principal amount of Notes issued under the
Indenture.
	
 o B.	
 	
Our proposed exchange of $                        principal amount of Notes issued under the
Indenture for an equal principal amount of Notes to be held by us.

 

         We
hereby confirm that: 

	1.
	We
are an institutional "accredited investor" within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as
amended (the "Securities Act") (an "Institutional Accredited Investor").

	2.
	Any
acquisition of Notes by us will be for our own account or for the account of one or more other Institutional Accredited Investors as to which we exercise
sole investment discretion.

	3.
	We
have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of an investment in the Notes
and we and any accounts for which we are acting are able to bear the economic risks of and an entire loss of our or their investment in the Notes.

	4.
	We
are not acquiring the Notes with a view to any distribution thereof in a transaction that would violate the Securities Act or the securities laws of any
State of the United States or any other applicable jurisdiction; provided that the disposition of our property and the property of any accounts for
which we are acting as fiduciary will remain at all times within our and their control.

	5.
	We
acknowledge that the Notes have not been registered under the Securities Act and that the Notes may not be offered or sold within the United States or to
or for the benefit of U.S. persons except as set forth below.

	6.
	The
principal amount of Notes to which this Certificate relates is at least equal to $250,000. 

        We
agree for the benefit of the Issuers, on our own behalf and on behalf of each account for which we are acting, that such Notes may be offered, sold, pledged or otherwise transferred
only in accordance with the Securities Act and any applicable securities laws of any State of the United States and only (a) to the Issuers, (b) pursuant to a registration statement
which has become effective under the Securities Act, (c) to a qualified institutional buyer in compliance with Rule 144A under the 

G-1

 

Securities
Act, (d) in an offshore transaction in compliance with Rule 904 of Regulation S under the Securities Act, (e) in a principal amount of not less than $250,000, to
an Institutional Accredited Investor that, prior to such transfer, delivers to the Trustee a duly completed and signed certificate (the form of which may be obtained from the Trustee) relating to the
restrictions on transfer of the Notes or (f) pursuant to an exemption from registration provided by Rule 144 under the Securities Act or any other available exemption from the
registration requirements of the Securities Act. 

        Prior
to the registration of any transfer in accordance with (c) or (d) above, we acknowledge that a duly completed and signed certificate (the form of which may be
obtained from the Trustee) must be delivered to the Trustee. Prior to the registration of any transfer in accordance with (e) or (f) above, we acknowledge that the Issuers reserve the
right to require the delivery of such legal opinions, certifications or other evidence as may reasonably be required in order to determine that the proposed transfer is being made in compliance with
the Securities Act and applicable state securities laws. We acknowledge that no representation is made as to the availability of any Rule 144 exemption from the registration requirements of the
Securities Act. 

        We
understand that the Trustee will not be required to accept for registration of transfer any Notes acquired by us, except upon presentation of evidence satisfactory to the Issuers and
the Trustee that the
foregoing restrictions on transfer have been complied with. We further understand that the Notes acquired by us will be in the form of definitive physical certificates and that such certificates will
bear a legend reflecting the substance of the preceding paragraph. We further agree to provide to any person acquiring any of the Notes from us a notice advising such person that resales of the Notes
are restricted as stated herein and that certificates representing the Notes will bear a legend to that effect. 

        We
agree to notify you promptly in writing if any of our acknowledgments, representations or agreements herein ceases to be accurate and complete. 

        We
represent to you that we have full power to make the foregoing acknowledgments, representations and agreements on our own behalf and on behalf of any account for which we are acting. 

        You
and the Issuers are entitled to rely upon this Certificate and are irrevocably authorized to produce this Certificate or a copy hereof to any interested party in any administrative
or legal proceeding or official inquiry with respect to the matters covered hereby. 

 

 

							
	 	 	 	 	Very truly yours,
	

 	
 	

 	
 	
[NAME OF PURCHASER (FOR TRANSFERS) OR OWNER (FOR EXCHANGES)]
	

 	
 	
 	
 	
By:	
 	

 
	 	 	 	 	 	 	

  Name:

Title:

Address:
	
 Date:	
 	

 	
 	

 	
 	

 
	 	 	

  	 	 	 	 

 

         Upon
transfer, the Notes would be registered in the name of the new beneficial owner as follows: 

 

 

							
	By:	 	 	 	 	 	 
	 	 	

  	 	 
	
 Date:	
 	

 	
 	

 	
 	

 
	 	 	

  	 	 
	

Taxpayer ID number:	
 	

 	
 	

 
	 	 	 	 	

  	 	 

 

 G-2

 

 
 

  EXHIBIT H    
    

[COMPLETE FORM I OR FORM II AS APPLICABLE.]

[FORM I]

Certificate of Beneficial Ownership

	To:
	Wilmington
Trust Company

[ADDRESS OF TRUSTEE]

Attention: Corporate Trust Administration OR

[Name
of DTC Participant]] 

	Re:
	Cloud
Peak Energy Resources LLC and

Cloud Peak Energy Finance Corp.

[[2016 RATE]% Senior Notes due 2016]

[[2019 RATE]% Senior Notes due 2019] (the "Notes")

Issued under the Indenture (the "Indenture") dated as

as of [AS OF DATE] relating to the Notes           

Ladies
and Gentlemen: 

        We
are the beneficial owner of $                        principal amount of Notes issued under the Indenture and represented by a
Temporary Offshore Global Note (as defined in the Indenture). 

        We
hereby certify as follows: 

        [CHECK A OR B AS APPLICABLE.]

 

 

			
	o A.	 	We are a non-U.S. person (within the meaning of Regulation S under the Securities Act of 1933, as amended).
	
 o B.	
 	
We are a U.S. person (within the meaning of Regulation S under the Securities Act of 1933, as amended) that purchased the Notes in a transaction that did not require registration under the Securities Act of 1933,
as amended.

 

         You
and the Issuers are entitled to rely upon this Certificate and are irrevocably authorized to produce this Certificate or a copy hereof to any interested party in any administrative
or legal proceeding or official inquiry with respect to the matters covered hereby. 

 

 

							
	 	 	 	 	Very truly yours,
	

 	
 	

 	
 	
[NAME OF BENEFICIAL OWNER]
	

 	
 	
 	
 	
By:	
 	

 
	 	 	 	 	 	 	

  Name:

Title:

Address:
	
 Date:	
 	

 	
 	

 	
 	

 
	 	 	

  	 	 	 	 

 

 H-1

 
[FORM II]

Certificate of Beneficial Ownership

	To:
	Wilmington
Trust Company

[ADDRESS OF TRUSTEE]

Attention: Corporate Trust Administration

	Re:
	Cloud
Peak Energy Resources LLC and

Cloud Peak Energy Finance Corp.

[[2016 RATE]% Senior Notes due 2016]

[[2019 RATE]% Senior Notes due 2019] (the "Notes")

Issued under the Indenture (the "Indenture") dated as

as of [AS OF DATE] relating to the Notes           

Ladies
and Gentlemen: 

        This
is to certify that based solely on certifications we have received in writing, by tested telex or by electronic transmission from Institutions appearing in our records as persons
being entitled to a portion of the principal amount of Notes represented by a Temporary Offshore Global Note issued under the above-referenced Indenture, that as of the date hereof,
$                        
principal amount of Notes represented by the Temporary Offshore Global Note being submitted herewith for exchange is beneficially owned by persons that are either (i) non-U.S.
persons (within the meaning of Regulation S under the Securities Act of 1933, as amended) or (ii) U.S. persons that purchased the Notes in a transaction that did not require registration
under the Securities Act of 1933, as amended. 

        We
further certify that (i) we are not submitting herewith for exchange any portion of such Temporary Offshore Global Note excepted in such certifications and (ii) as of
the date hereof we have not received any notification from any Institution to the effect that the statements made by such Institution with respect to any portion of such Temporary Offshore Global Note
submitted herewith for exchange are no longer true and cannot be relied upon as of the date hereof. 

        You
and the Issuers are entitled to rely upon this Certificate and are irrevocably authorized to produce this Certificate or a copy hereof to any interested party in any administrative
or legal proceeding or official inquiry with respect to the matters covered hereby. 

 

 

							
	 	 	 	 	Yours faithfully,
	

 	
 	

 	
 	
[Name of DTC Participant]
	

 	
 	
 	
 	
By:	
 	

 
	 	 	 	 	 	 	

  Name:

Title:

Address:
	
 Date:	
 	

 	
 	

 	
 	

 
	 	 	

  	 	 	 	 

 

 H-2

 

 
 

  EXHIBIT I    
    

THIS
NOTE IS A TEMPORARY GLOBAL NOTE. PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD APPLICABLE HERETO, BENEFICIAL INTERESTS HEREIN MAY NOT BE HELD BY ANY PERSON OTHER THAN (1) A
NON-U.S. PERSON OR (2) A U.S. PERSON THAT PURCHASED SUCH INTEREST IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"). BENEFICIAL INTERESTS HEREIN ARE NOT EXCHANGEABLE FOR PHYSICAL NOTES OTHER THAN A PERMANENT GLOBAL NOTE IN ACCORDANCE WITH THE TERMS
OF THE INDENTURE. TERMS IN THIS LEGEND ARE USED AS USED IN REGULATION S UNDER THE SECURITIES ACT. 

NO
BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF PRINCIPAL OR INTEREST HEREON UNTIL SUCH BENEFICIAL INTEREST IS EXCHANGED OR TRANSFERRED FOR AN INTEREST IN
ANOTHER NOTE 

I-1

QuickLinks

Exhibit 4.2

TABLE OF CONTENTS

ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE

ARTICLE 2 THE NOTES

ARTICLE 3 REDEMPTION; OFFER TO PURCHASE

ARTICLE 4 COVENANTS

ARTICLE 5 CONSOLIDATION, MERGER OR SALE OF ASSETS

ARTICLE 6 DEFAULT AND REMEDIES

ARTICLE 7 THE TRUSTEE

ARTICLE 8 DEFEASANCE AND DISCHARGE

ARTICLE 9 AMENDMENTS, SUPPLEMENTS AND WAIVERS

ARTICLE 10 GUARANTIES

ARTICLE 11 MISCELLANEOUS

SIGNATURES

EXHIBIT A-1

EXHIBIT A-2

EXHIBIT B

EXHIBIT C

EXHIBIT D

EXHIBIT E

EXHIBIT F

EXHIBIT G

EXHIBIT H

EXHIBIT I

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