Document:

Subscription
Agreement

 

This
Subscription Agreement (this “Agreement”) is made and entered into as of April 12, 2019 by and between
RITO GROUP CORP., a Nevada corporation (the “Company”) and the undersigned (the “Purchaser”).
The Purchaser, together with the Company shall be referred to as the “Parties”.

 

WHEREAS,
the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company [number of shares]
of common stock, par value $0.0001 per share of the Company (“Common Stock”) pursuant to an exemption from registration
under Section 4(a)(2), Regulation D, and/or Regulation S under the Securities Act of 1933, as amended (the “1933 Act”)
or other applicable exemptions on the terms and conditions set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

 

	 	1.	Securities Sale
    and Purchase. The Company shall issue and sell to the Purchaser and the Purchaser agrees to purchase from the Company
    [number of shares] of Common Stock of the Company (the “Shares” or the “Securities”)
    at a price of $2.00 per share for a total amount of US$ [total subscription amount] (the “Purchase Price”)
    pursuant to an exemption from registration provided by Section 4(a)(2), Regulation D, and/or Regulation S promulgated under
    the 1933 Act or other applicable exemption. 
	 	 	 
	 	2.	Closing. At
    the closing, the Company will deliver to the Purchaser the Shares and the Purchase Price shall be paid by the Purchaser via
    wire transfer of immediately available funds to an account designated by the Company. The closing shall be held on such date
    as the parties may agree upon (the “Closing” and the “Closing Date”) at the offices of Rito Group
    Corp., Flat 6C, 4/F, Block C, Hong Kong Industrial Centre, 489 -491 Castle Peak Road, Hong Kong at 10:00 a.m., or at such
    other location or by such other means upon which the parties may agree; provided, that all of the conditions set forth in
    Section 2 hereof and applicable to the Closing shall have been fulfilled or waived in accordance herewith. 
	 	 	 
	 	3.	Representations,
    Warranties and Covenants of the Company. The Company represents and warrants to the Purchaser, as of the date hereof,
    as follows:

 

	 	(a)	Organization
    and Standing. The Company is a duly organized corporation, validly existing and in good standing under the laws of the
    State of Nevada, has full power to carry on its business as and where such business is now being conducted and to own, lease
    and operate the properties and assets now owned or operated by it and is duly qualified to do business and is in good standing
    in each jurisdiction where the conduct of its business or the ownership of its properties requires such qualification.

 

    	 	 	 

     

    

 

	 	(b)	Authorization
    and Power. The execution, delivery and performance of this Agreement and the consummation of the transaction contemplated
    hereby have been duly authorized by the Board of Directors of the Company. The Agreement has been (or upon delivery will be)
    duly executed by the Company is or, when delivered in accordance with the terms hereof, will constitute, assuming due authorization,
    execution and delivery by each of the parties thereto, the valid and binding obligation of the Company enforceable against
    the Company in accordance with its terms.
	 	 	 
	 	(c)	No Conflict.
    The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby do
    not (i) violate or conflict with the Company’s Certificate of Incorporation, By-laws or other organizational documents,
    (ii) conflict with or result (with the lapse of time or giving of notice or both) in a material breach or default under any
    material agreement or instrument to which the Company is a party or by which the Company is otherwise bound, or (iii) violate
    any order, judgment, law, statute, rule or regulation applicable to the Company, except where such violation, conflict or
    breach would not have a Material Adverse Effect on the Company. This Agreement when executed by the Company will be a legal,
    valid and binding obligation of the Company enforceable in accordance with its terms (except as may be limited by bankruptcy,
    insolvency, reorganization, moratorium and similar laws and equitable principles relating to or limiting creditors’
    rights generally).
	 	 	 
	 	(d)	Authorization.
    Issuance of the Shares to Purchasers has been duly authorized by all necessary corporate actions of the Company.
	 	 	 
	 	(e)	Issuances.
    The Shares to be issued hereunder will be validly issued, fully paid and nonassessable.
	 	 	 
	 	(f)	Litigation and
    Other Proceedings. There are no actions, suits, proceedings or investigations pending or, to the knowledge of the Company,
    threatened against the Company at law or in equity before or by any court or Federal, state, municipal or their governmental
    department, commission, board, bureau, agency or instrumentality, domestic or foreign which could materially adversely affect
    the Company. The Company is not subject to any continuing order, writ, injunction or decree of any court or agency against
    it which would have a material adverse effect on the Company.
	 	 	 
	 	(g)	Use of Proceeds.
    The proceeds of this Offering and sale of the Shares, net of payment of placement expenses, will be used by the Company for
    working capital and other general corporate purposes. 
	 	 	 
	 	(h)	Consents/Approvals.
    No consents, filings (other than Federal and state securities filings relating to the issuance of the Shares pursuant to applicable
    exemptions from registration, which the Company hereby undertakes to make in a timely fashion), authorizations or other actions
    of any governmental authority are required to be obtained or made by the Company for the Company’s execution, delivery
    and performance of this Agreement which have not already been obtained or made or will be made in a timely manner following
    the Closing. 

 

    	 	 	 

     

    

 

	 	(i)	No Commissions.
    The Company has not incurred any obligation for any finder’s, broker’s or agent’s fees or commissions in
    connection with the transaction contemplated hereby. 
	 	 	 
	 	(j)	Disclosure.
    No representation or warranty by the Company in this Agreement, the Agreement, nor in any certificate, Schedule or Exhibit
    delivered or to be delivered pursuant to this Agreement: contains or will contain any untrue statement of material fact or
    omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading. To
    the knowledge of the Company and its subsidiaries at the time of the execution of this Agreement, there is no information
    concerning the Company and its subsidiaries or their respective businesses which has not heretofore been disclosed to the
    Purchasers that would have a Material Adverse Effect.
	 	 	 
	 	(k)	Compliance with
    Laws. The business of the Company and its subsidiaries has been and is presently being conducted so as to comply with
    all applicable material federal, state and local governmental laws, rules, regulations and ordinances.

 

	 	4.	Purchaser Representations,
    Warranties and Agreements. The Purchaser hereby acknowledges, represents and warrants as follows:

 

	 	(a)	Organization;
    Authority. Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
    of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions
    contemplated by the applicable Documents and otherwise to carry out its obligations thereunder. The execution, delivery and
    performance by such Purchaser of the transactions contemplated by this Agreement has been duly authorized by all necessary
    corporate or, if such Purchaser is not a corporation, such partnership, limited liability company or other applicable like
    action, on the part of such Purchaser. Each of this Agreement and other Documents has been duly executed by such Purchaser,
    and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation
    of such Purchaser, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable
    bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement
    of, creditors’ rights and remedies or by other equitable principles of general application.

 

    	 	 	 

     

    

 

	 	(b)	Investment Intent.
    Such Purchaser is acquiring the Shares as principal for its own account for investment purposes only and not with a view to
    or for distributing or reselling such Shares or any part thereof, without prejudice, however, to such Purchaser’s right
    at all times to sell or otherwise dispose of all or any part of such Shares in compliance with applicable federal and state
    securities laws. Subject to the immediately preceding sentence, nothing contained herein shall be deemed a representation
    or warranty by such Purchaser to hold the Shares for any period of time. Such Purchaser is acquiring the Shares hereunder
    in the ordinary course of its business. Such Purchaser does not have any agreement or understanding, directly or indirectly,
    with any Person to distribute any of the Shares.
	 	 	 
	 	(c)	Purchaser Status.
    

 

	 	(i)	The Purchaser agrees
    and acknowledges that it was not, a “U.S. Person” (as defined below) at the time the Purchaser was offered the
    Shares and as of the date hereof:

 

	 	(A)
    	Any natural person
    resident in the United States;
	 	 	 
	 	(B) 	Any partnership
    or corporation organized or incorporated under the laws of the United States;
	 	 	 
	 	(C) 	Any estate of which
    any executor or administrator is a U.S. person;
	 	 	 
	 	(D) 	Any trust of which
    any trustee is a U.S. person;
	 	 	 
	 	(E) 	Any agency or branch
    of a foreign entity located in the United States;
	 	 	 
	 	(F) 	Any non-discretionary
    account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account
    of a U.S. person;
	 	 	 
	 	(G) 	Any discretionary
    account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or
    (if an individual) resident of the United States; and
	 	 	 
	 	(H) 	Any partnership
    or corporation if (i) organized or incorporated under the laws of any foreign jurisdiction and (ii) formed by a U.S. person
    principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized or incorporated,
    and owned, by accredited Purchasers (as defined in Rule 501(a) of Regulation D promulgated under the 1933 Act) who are not
    natural persons, estates or trusts.

 

    	 	 	 

     

    

 

“United
States” or “U.S.” means the United States of America, its territories and possessions, any State
of the United States, and the District of Columbia.

 

	 	(ii)	The Purchaser understands
    that no action has been or will be taken in any jurisdiction by the Company that would permit a public offering of the Shares
    in any country or jurisdiction where action for that purpose is required. 
	 	 	 
	 	(iii)	The Purchaser (i)
    as of the execution date of this Agreement is not located within the United States, and (ii) is not purchasing the Shares
    for the account or benefit of any U.S. Person, except in accordance with one or more available exemptions from the registration
    requirements of the 1933 Act or in a transaction not subject thereto.
	 	 	 
	 	(iv)	The Purchaser will
    not resell the Shares except in accordance with the provisions of Regulation S (Rule 901 through 905 and Preliminary Notes
    thereto), pursuant to a registration statement under the 1933 Act, or pursuant to an available exemption from registration;
    and agrees not to engage in hedging transactions with regard to such securities unless in compliance with the 1933 Act.
	 	 	 
	 	(v)	The Purchaser will
    not engage in hedging transactions with regard to shares of the Company prior to the expiration of the distribution compliance
    period specified in Category 2 or 3 (paragraph (b)(2) or (b)(3)) in Rule 903 of Regulation S, as applicable, unless in compliance
    with the 1933 Act; and as applicable, shall include statements to the effect that the securities have not been registered
    under the 1933 Act and may not be offered or sold in the United States or to U.S. persons (other than distributors) unless
    the securities are registered under the 1933 Act, or an exemption from the registration requirements of the 1933 Act is available.
    
	 	 	 
	 	(vi)	No form of “directed
    selling efforts” (as defined in Rule 902 of Regulation S under the 1933 Act), general solicitation or general advertising
    in violation of the 1933 Act has been or will be used nor will any offers by means of any directed selling efforts in the
    United States be made by the Purchaser or any of their representatives in connection with the offer and sale of the Purchased
    Shares.

 

	 	(d)	General Solicitation.
    Such Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding
    the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any
    seminar or any other general solicitation or general advertisement.

 

    	 	 	 

     

    

 

	 	(e)	Access to Information.
    Such Purchaser acknowledges that it has reviewed the disclosure materials and has been afforded (i) the opportunity to ask
    such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms
    and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information
    about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties,
    management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional
    information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an
    informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted
    by or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right
    to rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties
    contained in the Transaction Documents.
	 	 	 
	 	(f)	Independent Investment
    Decision. Such Purchaser has independently evaluated the merits of its decision to purchase the Shares pursuant to the
    Agreement, and such Purchaser confirms that it has not relied on the advice of any other Purchaser’s business and/or
    legal counsel in making such decision. Such Purchaser has not relied on the business or legal advice of the Company or any
    of its agents, counsel or Affiliates in making its investment decision hereunder, and confirms that none of such Persons has
    made any representations or warranties to such Purchaser in connection with the transactions contemplated by the Transaction
    Documents.

 

	 	5.	Miscellaneous

 

	 	(a)	Confidentiality.
    The Purchaser covenants and agrees that it will keep confidential and will not disclose or divulge any confidential or proprietary
    information that such Purchaser may obtain from the Company pursuant to financial statements, reports, and other materials
    submitted by the Company to such Purchaser in connection with this offering or as a result of discussions with or inquiry
    made to the Company, unless such information is known, or until such information becomes known, to the public through no action
    by the Purchaser; provided, however, that a Purchaser may disclose such information (i) to its attorneys, accountants, consultants,
    and other professionals to the extent necessary in connection with his or her investment in the Company so long as any such
    professional to whom such information is disclosed is made aware of the Purchaser’s obligations hereunder and such professional
    agrees to be likewise bound as though such professional were a party hereto, (ii) if such information becomes generally available
    to the public through no fault of the Purchaser, or (iii) if such disclosure is required by applicable law or judicial order.
	 	 	 
	 	(b)	Successors.
    The covenants, representations and warranties contained in this Agreement shall be binding on the Purchaser’s and the
    Company’s heirs and legal representatives and shall inure to the benefit of the respective successors and assigns of
    the Company. The rights and obligations of this Subscription Agreement may not be assigned by any party without the prior
    written consent of the other party.

 

    	 	 	 

     

    

 

	 	(c)	Counterparts.
    This Agreement may be executed in counterparts, each of which shall be deemed an original agreement, but all of which together
    shall constitute one and the same instrument. 
	 	 	 
	 	(d)	Execution by
    Facsimile. Execution and delivery of this Agreement by facsimile transmission (including the delivery of documents in
    Adobe PDF format) shall constitute execution and delivery of this Agreement for all purposes, with the same force and effect
    as execution and delivery of an original manually signed copy hereof.
	 	 	 
	 	(e)	Governing Law
    and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada
    applicable to contracts to be wholly performed within such state and without regard to conflicts of laws provisions. Any legal
    action or proceeding arising out of or relating to this Subscription Agreement and/or the Offering Documents may be instituted
    in the courts of the State of Nevada sitting in Nevada, and the parties hereto irrevocably submit to the jurisdiction of each
    such court in any action or proceeding. Purchaser hereby irrevocably waives and agrees not to assert, by way of motion, as
    a defense, or otherwise, in every suit, action or other proceeding arising out of or based on this Subscription Agreement
    and/or the Offering Documents and brought in any such court, any claim that Purchaser is not subject personally to the jurisdiction
    of the above named courts, that Purchaser’s property is exempt or immune from attachment or execution, that the suit,
    action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper.
	 	 	 
	 	(f)	Notices.
    All notices, requests, demands, claims and other communications hereunder shall be in writing and shall be delivered by certified
    or registered mail (first class postage pre-paid), guaranteed overnight delivery, or facsimile transmission if such transmission
    is confirmed by delivery by certified or registered mail (first class postage pre-paid) or guaranteed overnight delivery,
    to the following addresses and facsimile numbers (or to such other addresses or facsimile numbers which such party shall subsequently
    designate in writing to the other party):

 

	 	(i)	if to the Company:
	 	 	 
	 	 	Rito Group Corp.
	 	 	Attn: Choi Tak Yin Addy
	 	 	Flat 6C, 4/F, Block C
	 	 	Hong Kong Industrial Centre, 
	 	 	489-491 Castle Peak Road, 
	 	 	Hong Kong
	 	 	 
	 	(ii)	if to the Purchasers: 
	 	 	 
	 	 	To the addresses set forth on the signature
    pages.

 

    	 	 	 

     

    

 

	 	(g)
    	Entire Agreement.
    This Agreement and other Transaction Documents delivered at the Closing pursuant hereto, contain the entire understanding
    of the parties in respect of its subject matter and supersede all prior agreements and understandings between or among the
    parties with respect to such subject matter.
	 	 	 
	 	(h) 	Amendment;
    Waiver. This Agreement may not be modified, amended, supplemented, canceled or discharged, except by written instrument
    executed by the Company and the Purchasers of not less than a majority of the principal amount of the subscription. No failure
    to exercise, and no delay in exercising, any right, power or privilege under this Agreement shall operate as a waiver, nor
    shall any single or partial exercise of any right, power or privilege hereunder preclude the exercise of any other right,
    power or privilege. No waiver of any breach of any provision shall be deemed to be a waiver of any proceeding or succeeding
    breach of the same or any other provision, nor shall any waiver be implied from any course of dealing between the parties.
    No extension of time for performance of any obligations or other acts hereunder or under any other agreement shall be deemed
    to be an extension of the time for performance of any other obligations or any other acts. The rights and remedies of the
    parties under this Agreement are in addition to all other rights and remedies, at law or equity, that they may have against
    each other.
	 	 	 
	 	(i)	Severability.
    If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability
    of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties
    will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefore, and upon so agreeing,
    shall incorporate such substitute provision in this Agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	 	 

     

    

 

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

 

	COMPANY: 	Rito
    Group Corp.
	 	 	 
	 	By:	/s/
    CHOI TAK YIN ADDY
	 	Name: 	Choi Tak Yin Addy
	 	Title:	Director, CEO

 

	PURCHASER:
    	 
	 	Name: [Name of
    Investor]
	 	 
	 	Purchase Price:
    $[Total subscription amount]
	 	Number of Shares:
    [Number of Shares]
	 	 
	 	Address: [Address
    of Investor]
	 	 
	 	Telephone &
    Email:
	 	[Telephone &
    Email of Investor]Exhibit 10.1

 

FORBEARANCE

 

FORBEARANCE, dated as of April 15, 2019 (this “Agreement”), by and among Cloud Peak Energy Resources LLC, a Delaware limited liability company (the “Company”), Cloud Peak Finance Corp., a Delaware corporation (together with the Company, the “Issuers”), Cloud Peak Energy Inc., a Delaware corporation (the “Parent Guarantor” and, together with the Issuers, the “Note Parties”), and the undersigned (the “Holder”) as investment advisor of discretionary accounts for the holders or beneficial owners  of the 2024 Notes (as defined below).

 

WHEREAS, the Issuers are the issuers under that certain First Supplemental Indenture, dated as of March 11, 2014, among the Issuers, the Parent Guarantor, the subsidiary guarantors signatory thereto and Wilmington Trust, National Association, as trustee (the “Trustee”) (as amended, modified or supplemented prior to the date hereof, the “2024 Indenture” and, the notes issued thereunder, the “2024 Notes”);

 

WHEREAS, the Issuers failed to make the interest payment due on March 15, 2019 on the 2024 Notes as required pursuant to the 2024 Indenture (the “March Interest Payment”), and the continuance of the default in the payment thereof beyond a period of thirty (30) days constitutes an Event of Default under the 2024 Indenture (the “Interest Payment Default”);

 

WHEREAS, upon the occurrence of an Event of Default and so long as such Event of Default is continuing, the Trustee or the holders of at least twenty-five percent (25%) in aggregate principal amount of the then outstanding 2024 Notes may declare the principal of and accrued interest on the 2024 Notes to be immediately due and payable, and exercise all other rights and remedies available under the 2024 Indenture;

 

WHEREAS, the holders of a majority in aggregate principal amount of the then outstanding 2024 Notes may, by written notice to the Trustee, direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred upon the Trustee;

 

WHEREAS, as of the date hereof, the Holder holds a majority in aggregate principal amount of the 2024 Notes outstanding;

 

WHEREAS, the Note Parties have requested that the Holder, and the Holder agreed to, subject to the terms and conditions set forth herein, temporarily forbear from accelerating the 2024 Notes or directing the Trustee to accelerate the 2024 Notes with respect to the Interest Payment Default in order to permit the Note Parties to continue discussions with certain parties in interest regarding a potential restructuring transaction; and

 

WHEREAS, terms used but not otherwise defined herein shall have the meanings given to them in the 2024 Indenture.

 

NOW, THEREFORE, in consideration of the premises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

Section 1.              Forbearance.

 

(a)           Subject to the satisfaction of the conditions precedent set forth in Section 3 below and the continued satisfaction of the conditions set forth in Section 4 below, respectively, as of the date hereof, the Holder hereby agrees that during the period beginning on the date hereof and ending on the Forbearance Termination Date (the “Forbearance Period”), it will not enforce, or otherwise take any action to direct enforcement of, any of the rights and remedies available to the Holder or the Trustee under the 2024 Indenture or the 2024 Notes or otherwise, including, without limitation, any action to accelerate, or join in any request for acceleration of, the 2024 Notes (“Remedial Action”) under the 2024 Indenture or the 2024 Notes, with respect to the Interest Payment Default (such forbearance, the “Forbearance”).  As used herein, “Forbearance Termination Date” means the earlier to occur of (a) 11:59 p.m. (New York City time) on May 1, 2019 and (b) two (2) Business Days following written notice from the Holder of any breach by any Note Party of any of the conditions or agreements provided in this Agreement (which breach remains uncured during such period).

 

 

(b)           This Agreement shall in no way be construed to preclude the Holder from acquiring or, subject to Section 15 of this Agreement, selling 2024 Notes to the extent permitted by applicable law.  However, such Holder shall, automatically and without further action, remain subject to this Agreement with respect to any 2024 Notes so acquired.  The foregoing forbearances shall not be construed to impair the ability of the Holder or the Trustee to exercise any rights or remedies under the 2024 Indenture or take any Remedial Action (x) at any time after the Forbearance Period or (y) during the Forbearance Period, for Events of Default other than the Interest Payment Default, and, except as provided herein, nothing shall restrict, impair or otherwise affect the exercise of the Holder’s or the Trustee’s rights under this Agreement, the 2024 Indenture or the 2024 Notes.

 

(c)           With respect to the Forbearance, the Holder’s agreements, as provided herein, shall immediately terminate without requirement for any notice, demand or presentment of any kind on the Forbearance Termination Date, and the Note Parties shall thereafter be obligated to comply with and perform all terms, conditions and provisions of the 2024 Indenture and the 2024 Notes without giving effect to the Forbearance, and the Trustee and the Holder may at any time thereafter proceed to exercise any and all of their rights and remedies, including, without limitation, their rights and remedies in connection with the Interest Payment Default and any other Events of Default that may have occurred under the 2024 Indenture or their rights under this Agreement, to the extent then-continuing.

 

(d)           The Holder hereby directs the Trustee not to take any Remedial Action solely with respect to the Interest Payment Default.  The parties hereto agree that this Agreement shall be delivered to the Trustee by the Holder promptly upon effectiveness hereof, and that the Holder shall, upon request from the Issuers, provide such further direction to the Trustee as may be necessary to effectuate the intent of the foregoing.  In the event that any Person takes any action to declare all of the 2024 Notes immediately due and payable pursuant to Section 7.02 of the 2024 Indenture during the Forbearance Period due solely to the Interest Payment Default, the Holder agrees and hereby directs the Trustee to forbear from taking any Remedial Actions in connection with such acceleration to the fullest extent permitted under the 2024 Indenture.

 

Section 2.              Representations and Warranties.

 

By its execution of this Agreement, each Note Party hereby represents and warrants to the Holder that:

 

(a)           Each Note Party has duly executed and delivered this Agreement, and this Agreement constitutes the legal, valid and binding obligation of each Note Party enforceable against it in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law); and

 

(b)           Neither the execution, delivery or performance by any Note Party of this Agreement, nor compliance by it with the terms and provisions thereof, (i) will contravene any provision of applicable law, (ii) will conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of any Note Party or any of its Subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other material agreement, contract or instrument, in each case to which any Note Party or any of its Subsidiaries is a party or by which it or any its property or assets is bound or to which it may be subject, or (iii) will violate any provision of the certificate or articles of incorporation, certificate of formation, limited liability company agreement, limited partnership agreement or by-laws (or equivalent constitutional, organizational and/or formation documents), as applicable, of any Note Party.

 

Section 3.              Conditions Precedent.  The effectiveness of this Agreement and the obligations of the Holder hereunder are subject to the satisfaction, or waiver by the Holder, of the following conditions (the date upon which all such conditions are met, the “Forbearance Effective Date”):

 

(a)           Counterparts.  The execution of this Agreement by each Note Party and the Holder.

 

(b)           No Default.  No Default or Event of Default under the 2024 Indenture other than the Interest Payment Default shall have occurred and be continuing as of the date the condition set forth in Section 3(a) is satisfied.

 

 

Section 4.              Forbearance Continuing Conditions.  The continued satisfaction of each of the following shall be a condition to the Forbearance:

 

(a)           No voluntary petition for relief under any Bankruptcy Law is filed by any Note Party; and

 

(b)           No involuntary petition for relief under any Bankruptcy Law is filed against any Note Party.

 

Section 5.              Representation of the Holder.  The Holder represents that, as of the date hereof, it is the beneficial owner and/or investment advisor or manager of discretionary accounts for the holders or beneficial owners of the aggregate principal amount of the 2024 Notes set forth on the signature page hereof beneath its name, and has all necessary power and authority to enter into this Agreement, grant the Forbearance with respect to such Notes and perform its obligations hereunder.

 

Section 6.              Confidentiality.  Each of the Note Parties shall not disclose to any person or entity the Holder’s holdings set forth on its signature page to this Agreement or otherwise disclose the Holder’s holdings information (collectively, the “Holder Information”) except:  (1) that the Note Parties may attach this Agreement, with the Holder’s holdings set forth on its signature page to this Agreement redacted, but without redacting any other portion of this Agreement (i.e., the Note Parties may disclose the Holder’s identity and the fact that the Holder holds a majority of the 2024 Notes) to any public filings the Note Parties are required to make pursuant to securities regulations; (2) in any legal proceeding relating to this Agreement; provided that the relevant Note Party shall use its reasonable best efforts to maintain the confidentiality of such Holder Information in the context of any such proceeding; (3) to the extent required by law; and (4) in response to a subpoena, discovery request, or a request from a government agency, regulatory authority or securities exchange for information regarding Holder Information or the information contained therein; provided, however, that each of the Note Parties will, to the extent permitted by applicable law or regulation, provide the Holder with prompt written notice of any such request or requirement so that the Holder may seek, at the Note Parties’ expense, a protective order or other appropriate remedy and each Note Party will fully cooperate with the Holder’s efforts to obtain the same.  Notwithstanding anything to the contrary in this Section 6, the Note Parties may, to effectuate and evidence the direction to the Trustee contained herein, at any time, and from time to time, during the Forbearance Period, provide the Trustee with an executed copy of this Agreement, including the Holder’s signature page.

 

Section 7.              Notice of Default.  The Note Parties shall provide notice to the Holder as soon as possible, but in any event within one (1) Business Day, of the occurrence of any breach of this Agreement or additional Event of Default (other than the Interest Payment Default) under the 2024 Indenture, which notice shall state that such event occurred and set forth, in reasonable detail, the facts and circumstances that gave rise to such event.  Such notice shall be delivered by electronic mail to:

 

Nomura Corporate Research and Asset Management Inc.

309 West 49th Street

New York, NY 10019

Attn: Joshua Givelber (joshua.givelber@nomura.com)

 

Section 8.              Effect on the 2024 Indenture.  Except as expressly set forth herein, this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Holder or the Trustee under the 2024 Indenture or the 2024 Notes, and shall not, except as expressly set forth herein, alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the 2024 Indenture or the 2024 Notes or any other provision of the 2024 Indenture or the 2024 Notes, all of which are ratified and affirmed in all respects and shall continue in full force and effect.

 

Section 9.              Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument.  Delivery of an executed counterpart of a signature page of this Agreement by electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

 

 

Section 10.            Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAW PRINCIPLES THAT WOULD PROVIDE FOR THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

 

Section 11.            Headings.  The headings of this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

Section 12.            Relationship of Parties; No Third Party Beneficiaries.  Nothing in this Agreement shall be construed to alter the existing debtor-creditor relationship between the Note Parties and the Holder or the Trustee.  This Agreement is not intended, nor shall it be construed, to create a partnership or joint venture relationship between or among any of the parties hereto.  No person other than a party hereto is intended to be a beneficiary hereof and no person other than a party hereto shall be authorized to rely upon or enforce the contents of this Agreement.

 

Section 13.            Entire Agreement; Modification of Agreement; Verbal Agreements Not Binding.  This Agreement constitutes the entire understanding of the parties with respect to the subject matter hereof, and supersedes all other discussions, promises, representations, warranties, agreements and understandings between the parties with respect thereto.  This Agreement may not be modified, altered or amended except by an agreement in writing signed by a duly authorized representative of each Note Party and the Holder.

 

Section 14.            Non-Waiver of Default.  Neither this Agreement nor any forbearance hereunder shall be deemed a waiver of or consent to the Interest Payment Default or to any other Default or Event of Default or any other term or provision of the 2024 Indenture.  Each of the Note Parties acknowledges that the Trustee and the Holder have made no representations as to what actions, if any, they will take after the Forbearance Period, and the Holder reserves any and all rights, remedies, and claims it has (after giving effect hereto) with respect to the Interest Payment Default and each other Default or Event of Default that may occur.

 

Section 15.            Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

Section 16.            Severability.  If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect, and any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable, in each case, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto.  Upon any such determination of invalidity, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

 

Section 17.            Release.  EACH OF THE NOTE PARTIES, ON ITS OWN BEHALF AND ON BEHALF OF ITS SUCCESSORS AND ASSIGNS (EACH OF THE FOREGOING, COLLECTIVELY, THE “RELEASING PARTIES”), HEREBY ACKNOWLEDGES AND STIPULATES THAT AS OF THE DATE OF THIS AGREEMENT, NONE OF THE RELEASING PARTIES HAS ANY CLAIMS, CAUSES OF ACTION, DEMANDS OR LIABILITIES OF ANY KIND WHATSOEVER, WHETHER DIRECT OR INDIRECT, FIXED OR CONTINGENT, LIQUIDATED OR UNLIQUIDATED, DISPUTED OR UNDISPUTED, KNOWN OR UNKNOWN, AGAINST, OR ANY GROUNDS OR CAUSE FOR REDUCTION, MODIFICATION, SET ASIDE OR SUBORDINATION OF THE INDEBTEDNESS, IN EACH CASE WHICH ARISE OUT OF OR ARE RELATED TO THE 2024 NOTES OR THE 2024 INDENTURE (BUT, FOR THE AVOIDANCE OF DOUBT, EXCLUDING CLAIMS, CAUSES OF ACTION, DEMANDS OR LIABILITIES ARISING OUT OF, OR RELATED TO, THIS AGREEMENT) (EACH, A “RELEASED CLAIM”) AGAINST THE HOLDER OR AGAINST ANY OF THE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS, OR REPRESENTATIVES OF ANY OF THE FOREGOING, (EACH OF THE FOREGOING, COLLECTIVELY, THE “RELEASED PARTIES”).  IN PARTIAL CONSIDERATION FOR THE AGREEMENT OF THE HOLDER PARTY HERETO TO ENTER INTO THIS AGREEMENT, EACH OF THE RELEASING PARTIES HEREBY UNCONDITIONALLY WAIVES AND FULLY AND FOREVER RELEASES, REMISES, DISCHARGES AND HOLDS HARMLESS THE RELEASED PARTIES FROM ANY AND ALL RELEASED CLAIMS, WHICH ANY

 

 

OF THE RELEASING PARTIES HAS OR MAY ACQUIRE IN THE FUTURE RELATING IN ANY WAY TO ANY EVENT, CIRCUMSTANCE, ACTION OR FAILURE TO ACT AT ANY TIME ON OR PRIOR TO THE FORBEARANCE EFFECTIVE DATE, SUCH WAIVER, RELEASE AND DISCHARGE BEING MADE WITH FULL KNOWLEDGE AND UNDERSTANDING OF THE CIRCUMSTANCES AND EFFECTS OF SUCH WAIVER, RELEASE AND DISCHARGE, AND AFTER HAVING CONSULTED LEGAL COUNSEL OF ITS OWN CHOOSING WITH RESPECT THERETO.  THIS PARAGRAPH IS IN ADDITION TO ANY OTHER RELEASE OF ANY OF THE RELEASED PARTIES BY THE RELEASING PARTIES AND SHALL NOT IN ANY WAY LIMIT ANY OTHER RELEASE, COVENANT NOT TO SUE OR WAIVER BY THE RELEASING PARTIES IN FAVOR OF THE RELEASED PARTIES.

 

[Signature Pages Follow]

 

 

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

 

	
 
    	
NOTE PARTIES
    
	
 
    	
 
    
	
 
    	
CLOUD PEAK ENERGY RESOURCES LLC, as Issuer
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Heath A.   Hill
    
	
 
    	
 
    	
Heath A.   Hill
    
	
 
    	
 
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
CLOUD PEAK ENERGY FINANCE CORP., as Issuer
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Heath A.   Hill
    
	
 
    	
 
    	
Heath A.   Hill
    
	
 
    	
 
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
CLOUD PEAK ENERGY INC., as Parent   Guarantor
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Heath A.   Hill
    
	
 
    	
 
    	
Heath A.   Hill
    
	
 
    	
 
    	
Executive Vice President and Chief Financial Officer
    

 

 

	
 
    	
HOLDER
    
	
 
    	
 
    
	
 
    	
NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC., as Investment Advisor on behalf of certain funds and   accounts
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David Crall
    
	
 
    	
 
    	
Name: David   Crall
    
	
 
    	
 
    	
Title: Managing   Director, CIO
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of 2024 Notes held:

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