Document:

Exhibit 10.1

	
 

	
 

	
 

	
February 20,
 2009

	
Each of the
 Borrowers and Loan Parties

	
 

	
  party
 to the Credit Agreement identified below

	
 

	
c/o U.S.
 Shipping Partners L.P.

	
 

	
399 Thornall
 Street

	
 

	
Edison, NJ
 08837

	
 

Re: Extension
of Waiver and Fourth Amendment and Forbearance Agreement

Ladies and
Gentlemen:

          Reference
is made to (i) the Third Amended and Restated Credit Agreement, dated as of August 7,
2006, entered into by and among U.S. Shipping Partners, L.P. (“MLP”),
U.S. Shipping Operating LLC, ITB Baltimore LLC, ITB Groton LLC, ITB
Jacksonville LLC, ITB Mobile LLC, ITB New York LLC, ITB Philadelphia LLC, USS
Chartering LLC, USCS Chemical Chartering LLC, USCS Chemical Pioneer Inc., USCS
Charleston LLC, USCS Charleston Chartering LLC, USCS ATB LLC, USS ATB 1 LLC,
USS ATB 2 LLC, USCS Sea Venture LLC, USS M/V Houston LLC, U.S. Shipping Finance
Corp., USS JV Manager Inc., USS PC Holding Corp., and USS Product Manager LLC
(collectively, the “Borrowers”), the various financial institutions as
are or may become parties to the Credit Agreement as hereinafter defined
(collectively, the “Lenders”), Canadian Imperial Bank of Commerce, as
Letter of Credit Issuer, Canadian Imperial Bank of Commerce (“CIBC”), as
administrative agent for the Lenders (in such capacity, the “Administrative
Agent”), Lehman Commercial Paper Inc., as the syndication agent for the
Lenders (in such capacity, the “Syndication Agent”), and Keybank
National Association, as collateral agent (in such capacity, the “Collateral
Agent”) for the Secured Parties (as defined therein), as amended to date
(as the same may be further amended, restated, or otherwise modified from time
to time, the “Credit Agreement”), (ii) the Waiver and Fourth Amendment
to Third Amended and Restated Credit Agreement, dated as of October 20, 2008,
among the Borrowers, the Administrative Agent, the Collateral Agent, the
Syndication Agent and the Lenders party thereto (as amended by the Extension
Letter (defined below), the “Amendment”), (iii) the Extension of Waiver
and Fourth Amendment, dated January 21, 2009, among the Administrative Agent,
the Syndication Agent, the Collateral Agent, and the Lenders party thereto (the
“Extension Letter”), (iv) the Forbearance Agreement, dated as of
December 30, 2008, by and among the Borrowers, the Lenders party thereto, the
Administrative Agent, the Syndication Agent, and the Collateral Agent (the “Forbearance
Agreement”), and (v) the Extension of Waiver and Fourth Amendment and
Forbearance Agreement, dated as of February 9, 2009, by and among the
Administrative Agent, the Syndication Agent, the Collateral Agent, and the
Lenders party thereto (the “Second Extension Letter”). Any term used
herein and not otherwise defined herein shall have the meaning assigned to such
term in the Credit Agreement.

          The
parties hereby agree that:

	
 

	
 

	
 

	
 

	
(i)

	
Section 12
 of the Amendment is hereby amended by deleting the reference to “February 20,
 2009” appearing in the second line thereof and replacing such reference with
 “the earlier of (i) February 27, 2009 and (ii) the date on which the
 Borrowers make an interest payment in respect of the Senior Notes”; 

	
 

	
 

	
 

	
 

	
(ii)

	
Section 2 of
 the Forbearance Agreement is hereby amended by deleting the reference to
 “February 20, 2009” appearing in the thirteenth line thereof and replacing
 such reference with “the earlier of (i) February 27, 2009 and (ii) the date
 on which the Borrowers make an interest payment in respect of the Senior
 Notes”; and 

	
 

	
 

	
 

	
 

	
(ii)

	
all other
 terms and obligations set forth in the Amendment and the Forbearance
 Agreement shall remain in full force and effect.

          This
letter agreement (the “Letter Agreement”) shall become effective as of
the date first above written upon receipt by the Administrative Agent of duly
executed counterparts of this Letter Agreement from the Borrowers, the
Administrative Agent, the Letter of Credit Issuer and the Majority Lender.

          This
Letter Agreement may be executed by the parties hereto in several counterparts,
each of which shall be an original and all of which shall constitute together
but one and the same agreement. Delivery of an executed counterpart of a
signature page to this Letter Agreement by facsimile shall be effective as
delivery of a manually executed counterpart of this Letter Agreement.

          Nothing
contained in this Letter Agreement shall constitute a waiver of any right,
power or remedy of the Administrative Agent or any Lender under the Credit
Agreement or any other Loan Document. Except to the extent hereby amended,
waived or modified, nothing contained in this Letter Agreement shall constitute
an amendment, modification or waiver of such documents.

          THIS LETTER AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.
This Letter Agreement is a Loan Document executed pursuant to the Credit
Agreement and shall be construed and administered in accordance with all of the
terms and provisions of the Credit Agreement.

[The remainder of this page left blank
intentionally]

- 2 -

          This
letter shall be governed by and construed in accordance with the laws of the
State of New York.

	
 

	
 

	
 

	
 

	
 

	
 

	
AGENTS AND LENDERS:

	
 

	
 

	
 

	
 

	
CANADIAN IMPERIAL BANK OF COMMERCE,

 as Administrative Agent and Letter of Credit Issuer

	
 

	
 

	
 

	
By:

	
/s/

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
LEHMAN COMMERCIAL PAPER INC., as Syndication
 Agent and Lender

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
KEYBANK NATIONAL ASSOCIATION, as

 Collateral Agent 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
______________________________________________,

	
 

	
 

	
as Lender

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

	
 

- 3 -

ACCEPTED AND
AGREED:

	
 

	
 

	
 

	
BORROWERS:

	
 

	
U.S. SHIPPING PARTNERS L.P. 

	
 

	
By:

	
US Shipping
 General Partner LLC,

 its General Partner

	
 

	
 

	
 

	
By:

	
/s/ Ronald L.
 O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
U.S. SHIPPING OPERATING LLC 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
ITB BALTIMORE LLC 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
ITB GROTON LLC

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
ITB JACKSONVILLE LLC

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
ITB MOBILE LLC

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

- 4 -

	
 

	
 

	
 

	
ITB NEW YORK LLC

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L. O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
ITB PHILADELPHIA LLC

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
USS CHARTERING LLC

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
USCS CHEMICAL CHARTERING LLC

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
USCS CHEMICAL PIONEER INC.

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
USCS CHARLESTON CHARTERING LLC 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
USCS CHARLESTON LLC 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

- 5 -

	
 

	
 

	
 

	
USCS ATB LLC 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
USCS ATB 1 LLC 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
USCS ATB 2 LLC 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
USCS SEA VENTURE LLC

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
USS M/V HOUSTON LLC 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
U.S. SHIPPING FINANCE CORP. 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
USS PRODUCT MANAGER LLC 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

- 6 -

	
 

	
 

	
 

	
USS JV MANAGER INC. 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
USS PC HOLDING CORP. 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

- 7 -

	
 

	
 

	
 

	
GUARANTORS:

	
 

	
 

	
 

	
 

	
USS ATB 3 LLC 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

	
 

	
 

	
USS ATB 4 LLC 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Ronald
 L. O’Kelley

	
 

	
 

	 

	
 

	
Name:

	
Ronald L.
 O’Kelley

	
 

	
Title:

	
Chief
 Executive Officer

	
 

- 8 -jrcc_10k-ex.htm

    Exhibit 10.4a

     

    AMENDMENT

    TO

    EMPLOYMENT
AGREEMENT

    

     

    THIS
AMENDMENT is made and entered into as of this 31st day of December, 2008, by and
between James River Coal Company, a Virginia corporation (the “Company”) and
Peter T. Socha (“Executive”);

     

    W I T N E S S E T
H:

     

    WHEREAS,
the Company and Executive entered into an Employment Agreement, dated as of May
7, 2004 (the “Employment Agreement”), providing for the terms and conditions of
Executive’s employment by the Company; and

     

    WHEREAS,
the parties now desire to amend the Employment Agreement in the manner
hereinafter provided to comply with the requirements of Section 409A of the
Internal Revenue Code of 1986, as amended;

     

    NOW, THEREFORE, in consideration of the
premises and the mutual covenants and agreements contained herein and in the
Employment Agreement, the parties hereby agree as follows:

    

    1.           Sections
4(a)(2)(iii) and (iv) are hereby amended by deleting those sections in their
entirety and substituting the following:

    

    “(iii)     
Health and Life
Insurance Coverage.  To the extent permitted by the applicable
plans, the Company shall provide Executive (and any spouse or dependents covered
at the time of the Executive’s termination) with medical, dental, and group term
life insurance (pursuant to the same Company plans that are medical, dental, and
group term life insurance that are in effect for active employees of the
Company), for the remaining Term of the Employment Agreement or for twelve
months after the Date of Termination, whichever is greater (the “Insured
Period”).  The coverages provided for in this section shall be applied
against and reduce the period for which COBRA will be provided.

     

    (1)           To
the extent that such medical or dental plan coverage is provided under a
self-insured plan maintained by the Company (within the meaning of Section
105(h) of the Code):

     

    (X)           the
charge to Executive for each month of coverage will equal the monthly COBRA
charge established by the Company for such coverage in which the Executive or
the Executive’s spouse or dependents (as applicable) are enrolled from time to
time, based on the coverage generally provided to salaried employees, and
Executive will be required to pay such monthly charge in accordance with the
Company’s standard COBRA premium payment requirements; and

     

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

     

    (Y)           not
later than 10 days after Executive’s Date of Termination (subject to delay under
Section 7 below), the Company will pay Executive a lump sum in cash equal, in
the aggregate, to the monthly COBRA charge established by the Company for the
coverage being provided on Executive’s Date of Termination to the Executive and
any covered dependents, less the amount Executive was paying for such coverage
on the Date of Termination, for each month of coverage in the Insured
Period.  In calculating the total lump sum amount payable for the
Insured Period, the Company’s monthly COBRA charge will be increased by 10% on
each January in the projected payment period and such increased amount shall
apply to each successive month in the calendar year in which the increase became
applicable.

     

    (2)           To
the extent that such medical or dental plan coverage is provided under a
fully-insured medical reimbursement plan (within the meaning of Section 105(h)
of the Code), there will be no charge to Executive for such
coverage.

     

    (3)            For
purposes of any individual executive life insurance policy (or policies)
maintained by the Company for Executive, the Company shall pay the Executive a
lump sum payment in cash equal to the monthly premium charges as of the Date of
Termination for such policy (or policies) multiplied by the number of months in
the Insured Period.  Such payment will be made within ten days of the
Date of Termination.

    

    (iv)           Executive
will become fully vested in any amounts credited under a deferred compensation
plan in which Executive participates and Executive’s benefits under such plan
will be paid in accordance with the terms of such plan, including, as
applicable, the six-month delay referenced in Section 7 below.”

    

    2.           Section
4(d) is hereby amended by deleting that section in its entirety and substituting
the following:

    

    “(d)           GOOD
REASON.  The term “Good Reason” means the occurrence (without
Executive’s express written consent) of any one of the following acts by the
Company, or failures by the Company to act, unless, in the case of any act or
failure to act described below, such act or failure to act is corrected within
thirty (30) days after written notice thereof by the Executive to the
Company:

    

    (1)           a
material reduction in Executive’s authority, duties or
responsibilities,

    

    (2)           a
material reduction in Executive’s Base Salary,

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    

    (3)           the
relocation of Executive’s office from its location on the Effective Date to a
location more than 35 miles away, or

    

    (4)           the
Company’s material breach of any other provision of this agreement, which shall
include the failure to require a successor to honor this Agreement.

    

    Executive’s
right to terminate the Executive’s employment for Good Reason shall not be
affected by the Executive’s incapacity due to physical or mental illness, except
for a Disability as defined in subsection (e) below.”

    

    3.           Section
4(g) is hereby amended by deleting that section in its entirety and substituting
the following:

    

    “(g)           DATE
OF TERMINATION.  Executive’s Date of Termination shall be the date
specified in the notice of termination (which, unless otherwise required by this
Agreement, may be immediate) as the date upon which Executive’s employment with
the Company is to cease.  In the case of termination by Executive for
Good Reason, the Date of Termination shall not be less than thirty (30) days nor
more than sixty (60) days from the date the notice of termination is given, and
the notice of termination shall clearly specify the act or failure to act that
constitutes “Good Reason” and shall be given no more than ninety (90) days after
the date of such act or failure to act.”

    

    4.           Section
6(d) is hereby amended by adding the following sentence to the beginning of such
section:

    

    “The Company agrees that it will
require any successor to the Company to honor this Agreement.”

    

    5.           The
Original Agreement is amended by adding the following new Section 7 at the end
thereof:

    

    “SECTION
7.   SECTION 409A

    

    (a)           EXPENSE
REIMBURSEMENTS.  To the extent that any expense reimbursement provided
for by this Agreement does not qualify for exclusion from Federal income
taxation, the Company will make the reimbursement only if: (i) Executive incurs
the corresponding expense during the term of this Agreement or the period of two
years thereafter and submits the request for reimbursement no later than two
months prior to the last day of the calendar year following the calendar year in
which the expense was incurred so that the Company can make the reimbursement on
or before the last day of the calendar year following the calendar year in which
the expense was incurred; (ii) the amount of expenses eligible for such
reimbursement during a calendar year will not affect the amount of expenses
eligible for such reimbursement in another calendar year; and (iii) the right to
such reimbursement is not subject to liquidation or exchange for another benefit
from the Company.

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    

    (b)           MEANING
OF TERMINATION OF EMPLOYMENT. Solely as necessary to comply with Section 409A,
for purposes of Section 4 and this Section 7, “termination of employment” or
“employment termination” or similar terms shall have the same meaning as
“separation from service” under Section 409A(a)(2)(A)(i) of the
Code.

    

    (c)           TAX
TREATMENT.  This Agreement will be construed and administered to
preserve the exemption from Section 409A of payments that qualify as short-term
deferrals pursuant to Treas. Reg. §1.409A-1(b)(4) or that qualify for the
two-times compensation exemption of Treas. Reg.
§1.409A-1(b)(9)(iii).  Executive acknowledges and agrees that the
Company has made no representation to Executive as to the tax treatment of the
compensation and benefits provided pursuant to this Agreement and that Executive
is solely responsible for all taxes due with respect to such compensation and
benefits.

    

    (d)           SIX
MONTH DELAY.  This Agreement
will be construed and administered to preserve the exemption from Section 409A
of payments that qualify as a short-term deferral or that qualify for the
two-times separation pay exception.  With respect to other amounts
that are subject to Section 409A, it is intended, and this Agreement will be so
construed, that any such amounts payable under this Agreement and the Company’s
and Executive’s exercise of authority or discretion hereunder shall comply with
the provisions of Section 409A and the treasury regulations relating thereto so
as not to subject Executive to the payment of interest and additional tax that
may be imposed under Section 409A.  As a result, in the event
Executive is a “specified employee” on the date of Executive’s termination of
employment (with such status determined by the Company in accordance with rules
established by the Company in writing in advance of the “specified employee
identification date” that relates to the date of Executive’s termination of
employment, or in the absence of such rules established by the Company, under the default rules for identifying specified employees
under Section 409A), any payment that is subject to Section 409A, that is
payable to Executive in connection with Executive’s termination of employment,
shall not be paid earlier than six months after such termination of employment
(if Executive dies after the date of Executive’s termination of employment but
before any payment has been made, such remaining payments that were or could
have been delayed will be paid to Executive’s estate without regard to such
six-month delay).”

    

    6.           Except
as provided herein, the Original Agreement shall be unchanged.

    

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    

    The Employment Agreement in effect
between the Company and Executive and this Amendment embody the complete
agreement and understanding among the parties and supersede and preempt any
prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any
way.

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Amendment as of the date first written
above.

    

    
      	 
      	
              JAMES
      RIVER COAL COMPANY

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:     /s/ Samuel M. Hopkins
      II

            
	 
      	
              Name:
      Samuel M. Hopkins II

            
	 
      	
              Title:
      Vice President

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              EXECUTIVE

            
	 
      	 
      
	 
      	 
      
	 
      	
              /s/ Peter T.
      Socha

            
	 
      	
              Name:  Peter
      T. Socha

            

    

    

     

     

    5

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