Document:

Exhibit 10.28

 

AMENDMENT NO. 2 TO
 AMENDED AND RESTATED CREDIT AGREEMENT

 

AMENDMENT NO. 2, dated as of January 18, 2013 (this “Amendment”) to the Amended and Restated Credit Agreement dated as of November 25, 2009 and amended and restated as of June 3, 2011, as further amended by Amendment No. 1, dated as of June 14, 2012 (as so amended, the “Existing Credit Agreement”) among Cloud Peak Energy Resources LLC, a Delaware limited liability company (the “Borrower”), the Guarantors party thereto, each Lender from time to time party thereto (the “Lenders”), each Issuing Bank party thereto and Morgan Stanley Senior Funding, Inc., as Administrative Agent (the “Administrative Agent”) and Swingline Lender.  Capitalized terms used herein and not otherwise defined herein have the meanings assigned to them in the Existing Credit Agreement as amended by this Amendment (as so amended, the “Credit Agreement”).

 

RECITALS:

 

The Borrower has requested certain amendments to the Existing Credit Agreement on behalf of itself and the other Loan Parties, and the other parties hereto are willing, on and subject to the terms and conditions set forth herein, to effect such amendments.

 

Therefore, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.   Amendment To Asset Sales Covenant.   Section 6.05 of the Existing Credit Agreement is hereby amended by (1) relabeling existing clause (f) thereof as clause (g) and (2) adding the following as a new clause (f) after existing clause (e):

 

“(f)                             the sale or other Disposition of Receivables and related property by the Borrower or any Restricted Subsidiary to a Securitization Subsidiary in connection with a Permitted Receivables Financing; and”

 

SECTION 2.   Amendment To Restricted Payments Covenant.   Section 6.07(f) of the Existing Credit Agreement is hereby amended in its entirety to read as follows:

 

“(f)                             each Subsidiary may make Restricted Payments payable, on a pro rata basis or on a basis more favorable to the Borrower and the Restricted Subsidiaries, to all holders of any class of Equity Interests of such Subsidiary at least 50% of which is held, directly or indirectly through other Restricted Subsidiaries, by the Borrower;”

 

SECTION 3.   Amendment To Transactions with Affiliates Covenant.   Section 6.08 of the Existing Credit Agreement is hereby amended by (1) deleting the word “and” at the end of clause (f); (2) replacing the period at the end of clause (g) with “; and”; and (3) adding the following as a new clause (h) after existing clause (g):

 

“(h)                           transactions entered by the Borrower or any Restricted Subsidiary with  a Securitization Subsidiary in connection with a Permitted Receivables Financing;”

 

SECTION 4.    Amendments To Restrictive Agreements Covenant.  Section 6.09 is hereby amended by modifying clause (b) thereof in its entirety to read as follows:

 

 

“(b)                           the ability of any Restricted Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or to make or repay loans or advances to the Borrower or any Restricted Subsidiary or to Guarantee Debt of the Borrower or any Restricted Subsidiary;”

 

SECTION 5.  Consent and Direction to Amend Security Agreement.  The Required Lenders hereby consent to the amendment to the Security Agreement attached hereto as Exhibit A (the “Security Agreement Amendment”; and together with this Amendment, the “Amendments”) and hereby authorize and direct the Administrative Agent to execute and deliver the Security Agreement Amendment on the Amendment Effective Date (as defined below).  The Security Agreement and Credit Agreement, each as amended, are referred to together as the “Amended Loan Documents”; and the Security Agreement as in effect immediately prior to giving effect to the Security Agreement Amendment is referred to as the “Existing Security Agreement”.

 

SECTION 6.  Representations and Warranties.  To induce the other parties hereto to enter into this Amendment, the Borrower represents and warrants to each other party hereto that as of the date hereof and as of the Amendment Effective Date with respect to itself and each other Credit Party:

 

(a)                       Each of the execution and delivery of the Amendments and the performance of the Amended Loan Documents is within its corporate or limited liability company powers and has been duly authorized by all necessary corporate or limited liability company action and, if required, stockholder or member action.  The Amendments have been duly executed and delivered by each Credit Party.  Each of the Amendments and each Amended Loan Document is a legal, valid and binding obligation of each Credit Party, in each case enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

(b)                       The entry into the Amendments and the performance of the transactions contemplated hereunder and by the Amended Loan Documents (a) do not require any consent or approval of, registration or filing with, or other action by, any Governmental Authority, except (i) such as have been obtained or made and are in full force and effect in all material respects, (ii) filings, consents and notices necessary to perfect or acknowledge, to the fullest extent possible, the Transaction Liens and (iii) notices required under the Mining Permits (including to the Bureau of Alcohol, Tobacco and Firearms) and Environmental Permits regarding a change in control solely to the extent required for the exercise of remedies under the Security Documents, which will be given to the applicable Governmental Authority on or prior to the date by which such notices are due, (b) will not violate any charter, by-laws or organizational documents of the Borrower or any of its Restricted Subsidiaries, (c) will not violate any applicable law or regulation (including any Environmental Law or Mining Law) or any order of any Governmental Authority (including any Environmental Permit or Mining Permit), (d) will not violate or result in a default under any indenture, lease (including any Mining Lease), agreement or other instrument binding upon the Borrower or any of its Restricted Subsidiaries or any of their respective properties, or give rise to a right thereunder to require the Borrower or any of its Restricted Subsidiaries to make any payment, except in each case referred to in clause (c) or (d) to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect and (e) will not result in the creation or imposition of any Lien (other than Liens described in Section 6.02(i)-(x) of the Credit Agreement) on any property of the Borrower or any of its Restricted Subsidiaries.

 

(c)                        The representations and warranties of each Credit Party set forth in Article 3 of the Credit Agreement and in the other Loan Documents are true and correct (or, in the case of any representation 

 

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and warranty that is not by its express terms limited by a materiality or “Material Adverse Effect” exception or qualifier, true in all material respects) on and as of the Amendment Effective Date (other  than with respect to any representation and warranty that expressly relates to an earlier date, in which case such representation and warranty is true and correct as of such earlier date).

 

(d)                       After giving effect to the Amendments and the transactions contemplated thereby, no Default has occurred and is continuing.

 

SECTION 7.  Reaffirmation.

 

(a)                       It is the intention of each of the parties hereto (including each Guarantor) that each of the Existing Credit Agreement and the Existing Security Agreement be amended so as to preserve the perfection and priority of all security interests securing indebtedness and obligations under the Existing Credit Agreement and Existing Security Agreement and the guarantees thereof and all Debt and obligations of the Credit Parties under the Credit Agreement shall be secured by the Security Documents and that this Amendment does not constitute a novation of obligations and liabilities existing under the Existing Credit Agreement.

 

(b)                       Each Credit Party hereby (i) confirms that each Loan Document (including without limitation the Security Agreement as so amended) to which it is a party or is otherwise bound and all Collateral encumbered thereby will continue to guarantee or secure, as the case may be, to the fullest extent possible in accordance with the Loan Documents, the payment and performance of the Secured Obligations, as the case may be, and (ii) confirms that it has granted to the Administrative Agent for the benefit of the Secured Parties a continuing lien on and security interest in and to such Credit Party’s right, title and interest in, to and under all Collateral as collateral security for the prompt payment and performance in full when due of the Secured Obligations (whether at stated maturity, by acceleration or otherwise).

 

SECTION 8.  Conditions to Effectiveness.  The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent (the date on which all of such conditions shall first be satisfied, the “Amendment Effective Date”):

 

(a)           The Administrative Agent shall have received from the Borrower, the Required Lenders and the Administrative Agent either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page) that such party has signed a counterpart of this Amendment.

 

(b)           The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of each Loan Party, the authorization of the Amendment and any other legal matters relating to the Credit Parties and the Loan Documents, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

(c)            The Administrative Agent shall have received a certificate dated as of the Amendment Effective Date, and signed by a Vice President or Financial Officer of the Borrower, certifying that (i) the representations and warranties set forth in Section 5 of this Amendment are true as of the Amendment Effective Date, (ii) after giving effect to the Amendments and the transactions contemplated thereby, no Default or Event of Default has occurred and is 

 

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continuing and (iii) the conditions set forth in this Section 8 have been satisfied on and as of the Amendment Effective Date (other than conditions that are subject to the satisfaction of the Agent).

 

(d)           The Credit Parties shall have paid, or have caused to be paid, all out-of-pocket expenses of the Administrative Agent in connection with this Amendment (including fees, charges and disbursements of counsel) required to be reimbursed or paid by any Credit Party under the Loan Documents.

 

(e)            Since December 31, 2011, there has been no Material Adverse Effect.

 

The Administrative Agent shall notify the Borrower and the Lenders of the Amendment Effective Date and such notice shall be conclusive and binding.

 

SECTION 9.  Effect of Amendment.  (a) Except as expressly set forth herein or in the Credit Agreement, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders or the Agents under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Existing Credit Agreement or any other provision of the Existing Credit Agreement or of any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle the Borrower to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Existing Credit Agreement, the Credit Agreement or any other Loan Document in similar or different circumstances.

 

(b)                       On and after the Amendment Effective Date, each reference in the Existing Credit Agreement to “this Agreement”, “hereunder”, “hereof’, “herein”, or words of like import, and each reference to the “Credit Agreement” in any other Loan Document shall be deemed a reference to the Credit Agreement as amended by this Amendment.  This Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.

 

SECTION 10.  Governing Law.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

SECTION 11.  Costs and Expenses.  The Borrower agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Amendment, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent.

 

SECTION 12.  Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy or pdf by email will be effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION 13.  Headings.  Section headings herein are included for convenience of reference only and are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.

 

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SECTION 14.  Severability.  If any provision of this Amendment or any other Loan Document is invalid, illegal or unenforceable in any jurisdiction then, to the fullest extent permitted by law, (i) such provision shall, as to such jurisdiction, be ineffective to the extent (but only to the extent) of such invalidity, illegality or unenforceability, (ii) the other provisions of the Loan Documents shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Lender Parties in order to carry out the intentions of the parties thereto as nearly as may be possible and (iii) the invalidity,  illegality or unenforceability of any such provision in any jurisdiction shall not affect the validity, legality or enforceability of such provision in any other jurisdiction.

 

[Remainder of page intentionally blank]

 

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CLOUD PEAK ENERGY   RESOURCES LLC, as Borrower
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Barrett
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ANTELOPE COAL LLC
    
	
 
    	
CABALLO ROJO LLC
    
	
 
    	
CABALLO ROJO HOLDINGS LLC
    
	
 
    	
CLOUD PEAK ENERGY   SERVICES COMPANY
    
	
 
    	
CLOUD PEAK ENERGY FINANCE   CORP.
    
	
 
    	
CLOUD PEAK ENERGY   LOGISTICS LLC
    
	
 
    	
CORDERO MINING LLC
    
	
 
    	
CORDERO MINING HOLDINGS   LLC
    
	
 
    	
CORDERO OIL AND GAS LLC
    
	
 
    	
KENNECOTT COAL SALES LLC
    
	
 
    	
NERCO LLC
    
	
 
    	
NERCO COAL LLC
    
	
 
    	
NERCO COAL SALES LLC
    
	
 
    	
PROSPECT LAND AND   DEVELOPMENT LLC
    
	
 
    	
RESOURCE DEVELOPMENT LLC
    
	
 
    	
SEQUATCHIE VALLEY COAL   CORPORATION
    
	
 
    	
SPRING CREEK COAL LLC
    
	
 
    	
WESTERN MINERALS LLC,
    
	
 
    	
ARROWHEAD I LLC,
    
	
 
    	
ARROWHEAD II LLC,
    
	
 
    	
ARROWHEAD III LLC,
    
	
 
    	
YOUNGS CREEK HOLDINGS I   LLC,
    
	
 
    	
YOUNGS CREEK HOLDINGS II   LLC,
    
	
 
    	
YOUNGS CREEK MINING   COMPANY, LLC,
    
	
 
    	
as Guarantors
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Barrett
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
MORGAN STANLEY SENIOR FUNDING, INC., as a   Lender and as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen B. King
    
	
 
    	
 
    	
Name: Stephen B.   King
    
	
 
    	
 
    	
Title: VP
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name   of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BANK OF AMERICA,   N.A.,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Adam H. Fey
    
	
 
    	
 
    	
Name: Adam H. Fey
    
	
 
    	
 
    	
Title: Director
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
THE   BANK OF NOVA SCOTIA,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ray Clarke
    
	
 
    	
 
    	
Name: Ray Clarke
    
	
 
    	
 
    	
Title: Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen MacNeil
    
	
 
    	
 
    	
Name: Stephen   MacNeil
    
	
 
    	
 
    	
Title: Associate
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name   of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CITIBANK, N.A.,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond G. Dunning
    
	
 
    	
 
    	
Name: RAYMOND G.   DUNNING
    
	
 
    	
 
    	
Title: VICE   PRESIDENT
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
COMERICA   BANK,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Fatima Arshad
    
	
 
    	
 
    	
Name: Fatima   Arshad
    
	
 
    	
 
    	
Title: Vice President
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name   of Lender:
    
	
 
    	
 
    
	
 
    	
CREDIT AGRICOLE CORPORATE AND
   INVESTMENT BANK,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mike McIntyre
    
	
 
    	
 
    	
Name: Mike McIntyre
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
[For Lenders requiring a second signature:]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Blake Wright
    
	
 
    	
 
    	
Name: Blake Wright
    
	
 
    	
 
    	
Title: Managing Director
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
CREDIT SUISSE AG, CAYMAN   ISLANDS 
   BRANCH, as Lender:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kevin Buddhdew
    
	
 
    	
 
    	
Name: Kevin   Buddhdew
    
	
 
    	
 
    	
Title: Vice   President
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Patrick L. Freytag
    
	
 
    	
 
    	
Name: Patrick L.   Freytag
    
	
 
    	
 
    	
Title: Associate
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GOLDMAN SACHS BANK USA,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michelle Latzoni
    
	
 
    	
 
    	
Name: Michelle   Latzoni
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name of Lender:
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK, N.A.,
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gitanjali Pundir
    
	
 
    	
 
    	
Name: Gitanjali   Pundir
    
	
 
    	
 
    	
Title: Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[For   Lenders requiring a second signature:]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MORGAN STANLEY BANK, N.A.,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dmitriy Barskiy
    
	
 
    	
 
    	
Name: Dmitriy   Barskiy
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
    NATIXIS NEW YORK BRANCH,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael D. Peist
    
	
 
    	
 
    	
Name: Michael D.   Peist
    
	
 
    	
 
    	
Title: Managing   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paul   Molsselin
    
	
 
    	
 
    	
Name: Paul   Molsselin
    
	
 
    	
 
    	
Title: Vice   President
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name   of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   NORTHERN TRUST COMPANY,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Molly Drennan
    
	
 
    	
 
    	
Name: Molly Drennan
    
	
 
    	
 
    	
Title: Vice   President
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name   of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PNC   Bank, NATIONAL ASSOCIATION,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard C. Munsick
    
	
 
    	
 
    	
Name: Richard C.   Munsick
    
	
 
    	
 
    	
Title: S.V.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[For   Lenders requiring a second signature:]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name   of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RAYMOND   JAMES BANK, N.A.,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott G. Axelrod
    
	
 
    	
 
    	
Name: Scott G.   Axelrod
    
	
 
    	
 
    	
Title: Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[For   Lenders requiring a second signature:]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
ROYAL   BANK OF CANADA,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/  Kristan Spivey
    
	
 
    	
 
    	
Name: Kristan   Spivey
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name   of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
UMB   BANK, N.A. (FKA UMB BANK COLORADO, N.A.
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Debbie A. Wright
    
	
 
    	
 
    	
Name: Debbie A.   Wright
    
	
 
    	
 
    	
Title: Senior Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[For   Lenders requiring a second signature:]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

[Signature page to Credit Agreement Amendment]

 

 

	
 
    	
Name   of Lender:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK N.A.,
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Suzanne Ridenhour
    
	
 
    	
 
    	
Name: Suzanne   Ridenhour
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[For   Lenders requiring a second signature:]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

[Signature page to Credit Agreement Amendment]

 

 

EXHIBIT A

 

Amendment No. 1 to Security Agreement

 

(see attached)

 

[Signature page to Credit Agreement Amendment]Exhibit 10.30

 

AMENDMENT NO. 1 TO
 GUARANTEE AND SECURITY AGREEMENT

 

AMENDMENT NO. 1, dated as of January 18, 2013 (this “Amendment”) to the Guarantee and Security Agreement,  dated as of November 25, 2009  (the “Existing Security Agreement”) among Cloud Peak Energy Resources LLC, a Delaware limited liability company (the “Borrower”), the Guarantors party thereto, and Morgan Stanley Senior Funding, Inc., as Administrative Agent (the “Administrative Agent”).  Capitalized terms used herein and not otherwise defined herein have the meanings assigned to them in the Existing Security Agreement as amended by this Amendment (as so amended, the “Security Agreement”).

 

RECITALS:

 

The Borrower has requested certain amendments to the Existing Security Agreement on behalf of itself and the other Loan Parties, and the other parties hereto are willing, on and subject to the terms and conditions set forth herein, to effect such amendments.

 

Therefore, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.   Amendment To Excluded Property Proviso.   Section 3(a) of the first proviso to Existing Security Agreement is hereby amended by (1) deleting the word “and” at the end of clause (F); and (2) adding the following as new clause (H) after existing clause (G):

 

“; and (H) assets that are subject to Liens that are referred to in Section 6.02(v) of the Credit Agreement securing Debt that is referred to in clauses (A) or (B) of Section 6.01(viii) of the Credit Agreement”

 

SECTION 2.   Amendment To Commodity Account Provisions.   (a)  Section 1 of the Existing Security Agreement is hereby amended by revising the definition of Commodity Account Control Agreement to read in full as follows:

 

“‘Commodity Account Control Agreement’ means, with respect to any Commodity Account as to which a Grantor is the Commodity Customer, (i) an agreement in substantially the form of Exhibit I hereto (with any changes that the Administrative Agent shall approve in its reasonable discretion) by such Grantor, the Administrative Agent and the relevant Commodity Intermediary that the Commodity Intermediary will apply any value distributed on account of the Commodity Contracts carried in such Commodity Account as directed by the Administrative Agent without further consent by such Grantor or (ii) if required by the relevant Commodity Intermediary, an agreement in a form agreed between such Grantor and the Commodity Intermediary providing for a first priority security interest in favor of the Commodity Intermediary in such Commodity Account and any commodity contracts and cash or other investments held in such account as margin deposit or otherwise (such cash or other investments, collectively, “Deposits”), provided that (x) any such agreement under clause (ii) shall include an express acknowledgement of the residual security interest under this Agreement in favor of the Administrative Agent on behalf of Secured Parties and (y) the aggregate amount

 

 

of Deposits in all such Commodity Accounts governed by agreements under clause (ii) shall at no time exceed $25,000,000.”

 

(b)  Section 1 of the Existing Security Agreement is further amended by adding the following new definitions in appropriate alphabetical order to read in full as follows:

 

“‘Agent-Controlled Commodity Account Control Agreement’ means a Commodity Account Control Agreement referred to in clause (i) of the definition thereof.

 

‘Released Accounts’ means each of the following at Wells Fargo Bank, National Association: Cloud Peak Energy Resources LLC Account Number 4121956205 (Deposit Account); Cloud Peak Energy Logistics LLC Account Number 4123113250 (Deposit Account); and Cloud Peak Energy Resources LLC Account Number 410401  (Lockbox).”

 

(c)  Section 8 of the Existing Security Agreement is amended by: (i) in clause (d) thereof, revising the parenthetical “(which shall enter into the same)” to read “(which, in the case of an Agent-Controlled Commodity Account Control Agreement, shall enter into the same)” and (ii) in clause (h)(ii) thereof, adding the phrase “subject to an Agent-Controlled Commodity Account Control Agreement” immediately after the words “Commodity Account” where they appear therein.

 

SECTION 3.   Amendment To Release of Collateral Provisions.   Section 21 of the Existing Security Agreement is hereby amended as follows:

 

(a)                                  Subsection (a) of Section 21 is hereby amended and restated in its entirety to read as follows:

 

“(a) At the time the Secured Guarantee of a Guarantor is released pursuant to Section 2(c), (i) the Transaction Liens granted by such Guarantor automatically shall terminate and (ii) all Transaction Liens on the Equity Interests of such Guarantor automatically shall terminate.”

 

(b)                                 The following is added after subsection (a) of Section 21 as a new subsection (b):

 

“(b) At the time (i) any Receivable and property related to such Receivable is sold, pledged or otherwise Disposed of by the Borrower or any Restricted Subsidiary to a Securitization Subsidiary in connection with a transaction permitted by Section 6.05(f) of the Credit Agreement the Transaction Liens on such Receivable and such related property and the Released Accounts automatically shall terminate and (ii) any other properties or assets of the Borrower or any Guarantor are disposed of in a transaction that is permitted by subsections (a), (d), (e) or (g) of Section 6.05 of the Credit Agreement, the Transaction Liens on the properties or assets so disposed of automatically shall terminate.”

 

(c)                                  Existing subsection (b) of Section 21 hereby is relabeled as subsection (c) of Section 21 and amended and restated in its entirety to read as follows:

 

“(c) The Transaction Liens granted by the Borrower and any Guarantor automatically shall terminate when all of the Release Conditions are satisfied.”

 

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(d)                                 Existing subsections (c) and (d) of Section 21 hereby are relabeled as subsections (d) and (e).

 

SECTION 4.  Reaffirmation.  It is the intention of each of the parties hereto (including each Guarantor) that the Existing Security Agreement be amended hereby so as to preserve the perfection and priority of all security interests, and the guaranty thereof,  created by the Existing Security Agreement.  Accordingly, each Credit Party hereby confirms that the Security Agreement and all Collateral encumbered hereby will continue to guarantee or secure, as the case may be, to the fullest extent possible in accordance with terms hereof, the payment and performance of the Secured Obligations.

 

SECTION 5.  Effect of Amendment.   (a)  Except as expressly set forth herein or in the Security Agreement, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders or the Agents under the Security Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Existing Security Agreement or any other provision of the Existing Security Agreement or of any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle the Borrower to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Existing Security Agreement, the Credit Agreement or any other Loan Document in similar or different circumstances.

 

(b)  On and after the Amendment Effective Date, each reference in the Existing Security Agreement to “this Agreement”, “hereunder”, “hereof’, “herein”, or words of like import, and each reference to the “Security Agreement” in any other Loan Document shall be deemed a reference to the Security Agreement as amended by this Amendment.  This Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.

 

SECTION 6.  Governing Law.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

SECTION 7.   Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy or pdf by email will be effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION 8.  Headings.  Section headings herein are included for convenience of reference only and are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.

 

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SECTION 9.  Severability.  If any provision of this Amendment is invalid, illegal or unenforceable in any jurisdiction then, to the fullest extent permitted by law, (i) such provision shall, as to such jurisdiction, be ineffective to the extent (but only to the extent) of such invalidity, illegality or unenforceability, (ii) the other provisions of this Amendment shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Lender Parties in order to carry out the intentions of the parties thereto as nearly as may be possible and (iii) the invalidity, illegality or unenforceability of any such provision in any jurisdiction shall not affect the validity, legality or enforceability of such provision in any other jurisdiction.

 

[Remainder of page intentionally blank]

 

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CLOUD PEAK ENERGY RESOURCES LLC, as Borrower
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Barrett
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ANTELOPE COAL LLC
    
	
 
    	
CABALLO ROJO LLC
    
	
 
    	
CABALLO ROJO HOLDINGS LLC
    
	
 
    	
CLOUD PEAK ENERGY SERVICES COMPANY
    
	
 
    	
CLOUD PEAK ENERGY FINANCE CORP.
    
	
 
    	
CLOUD PEAK ENERGY LOGISTICS LLC
    
	
 
    	
CORDERO MINING LLC
    
	
 
    	
CORDERO MINING HOLDINGS LLC
    
	
 
    	
CORDERO OIL AND GAS LLC
    
	
 
    	
KENNECOTT COAL SALES LLC
    
	
 
    	
NERCO LLC
    
	
 
    	
NERCO COAL LLC
    
	
 
    	
NERCO COAL SALES LLC
    
	
 
    	
PROSPECT LAND AND DEVELOPMENT LLC
    
	
 
    	
RESOURCE DEVELOPMENT LLC
    
	
 
    	
SEQUATCHIE VALLEY COAL CORPORATION
    
	
 
    	
SPRING CREEK COAL LLC
    
	
 
    	
WESTERN MINERALS LLC,
    
	
 
    	
ARROWHEAD I LLC,
    
	
 
    	
ARROWHEAD II LLC,
    
	
 
    	
ARROWHEAD III LLC,
    
	
 
    	
YOUNGS CREEK HOLDINGS I LLC,
    
	
 
    	
YOUNGS CREEK HOLDINGS II LLC,
    
	
 
    	
YOUNGS CREEK MINING COMPANY, LLC,
    
	
 
    	
as Guarantors
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Barrett
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

[Signature page to Security Agreement Amendment]

 

 

	
 
    	
MORGAN   STANLEY SENIOR FUNDING, INC., as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen B. King
    
	
 
    	
 
    	
Name:
    	
Stephen   B. King
    
	
 
    	
 
    	
Title:
    	
VP
    

 

[Signature page to Security Agreement Amendment]

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