Document:

EX-10.37

 Exhibit 10.37 
 INDEMNIFICATION AGREEMENT 
 This Indemnification Agreement
(“Agreement”) is entered into as of the              day of
                    , 2011, by and between Armstrong Energy, Inc., a Delaware corporation (the “Corporation”) and
                                        
(“Indemnitee”), a member of the board of directors (“Board”) of the Corporation. 
 WHEREAS, it is essential
to the Corporation to retain and attract as directors and officers the most capable persons available; and 
 WHEREAS, the
substantial risks of litigation against corporations and their directors and officers subjects directors and officers of the Corporation to the possible necessity of incurring extraordinary expenses out of their personal funds either while
directors’ and officers’ liability insurance may be unavailable to them or because the expenditure is not covered by insurance policies then in effect; and 
 WHEREAS, it is the policy of the Corporation to indemnify its directors and officers so as to provide them with the maximum possible protection permitted by law; and 

WHEREAS, so as to assure that Indemnitee is willing to serve as a director, and the Corporation desires Indemnitee to serve as a
director; 
 NOW, THEREFORE, in consideration of Indemnitee’s service as a director of the Corporation, the Corporation and
Indemnitee hereby agree as follows: 
 1. Agreement to Serve. Indemnitee agrees to serve as a director of the Corporation
for so long as Indemnitee is duly elected or appointed or until such time as Indemnitee tenders Indemnitee’s resignation in writing or otherwise Indemnitee’s service is terminated in accordance with the Corporation’s Bylaws and
applicable law. Notwithstanding anything to the contrary, this Agreement does not constitute either an employment contract or any commitment, express or implied, to cause Indemnitee to be elected as a director. 

2. Definitions. As used in this Agreement: 
 (a) “Proceeding” includes, without limitation, any threatened, pending, or completed action, suit, or proceeding, including any appeals related thereto, whether brought by or in the right of the
Corporation or otherwise, and whether of a civil, criminal, administrative, or investigative nature, in which Indemnitee is or was a party or is threatened to be made a party by reason of the fact that Indemnitee is or was a director or officer of
the Corporation (or of any predecessor or subsidiary of the Corporation or any successor to the Corporation by merger), or is or was serving at the request of the Corporation as a director, officer, employee, member, manager, agent, or fiduciary of
any other corporation, partnership, joint venture, trust, or other enterprise (including but not limited to a subsidiary). Such request by the Corporation shall be presumed to exist in the case of a subsidiary or other entity in which the
Corporation has an investment or contractual interest. “Proceeding” also includes an action by Indemnitee, including without limitation any mediation or arbitration, to establish or enforce a right of Indemnitee under this Agreement.

  
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 (b) “Expenses” include, without limitation, expenses of investigation, costs of
judicial or administrative proceedings or appeals, amounts paid in settlement by or on behalf of Indemnitee, attorneys’ fees and disbursements, costs of meals, lodging and travel reasonably and necessarily incurred by Indemnitee to attend any
Proceeding or event related to the Proceeding including but not limited to depositions and mediation sessions, and any other defense costs incurred by Indemnitee in connection with any Proceeding, but shall not include judgments, fines, or penalties
finally assessed against Indemnitee. 
 (c) “Other enterprises” include employee benefit plans; “fines”
include any excise taxes assessed on Indemnitee with respect to any employee benefit plan; “serving at the request of the Corporation” includes any service as a director, officer, employee, member, manager or agent of the Corporation which
imposes duties on, or involves services by, such director, officer, employee, member, manager, agent, or fiduciary with respect to an employee benefit plan, its participants, or beneficiaries; and a person who acted in good faith and in a manner
Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interest of the Corporation” as referred to in this
Agreement. 
 (d) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of
corporate law and neither currently is, nor in the five years previous to its selection or appointment has been, retained to represent (i) the Corporation or Indemnitee in any matter material to either such party (other than with respect to
matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements) or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Corporation or Indemnitee in an action to
determine Indemnitee’s rights under this Agreement. 
 (e) “Change of Control” means any one of the following
circumstances occurring after the date hereof: (i) there shall have occurred an event required to be reported with respect to the Corporation in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item or
any similar schedule or form) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), regardless of whether the Corporation is then subject to such reporting requirement; (ii) any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) shall have become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation
representing 15% or more of the combined voting power of the Corporation’s then outstanding voting securities (provided that, for purposes of this clause (ii), the term “person” shall exclude (x) the Corporation, (y) any
trustee or other fiduciary holding securities under an employee benefit plan of the Corporation, and (z) any corporation owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their
ownership of stock of the Corporation); (iii) there occurs a merger or consolidation of the Corporation with any other entity, other than a merger or consolidation which would result in the voting securities of 

  
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 the Corporation outstanding immediately prior to such merger or consolidation continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or
consolidation and with the power to elect at least a majority of the Board or other governing body of such surviving entity; (iv) all or substantially all the assets of the Corporation are sold or disposed of in a transaction or series of
related transactions; (v) the approval by the stockholders of the Corporation of a complete liquidation of the Corporation; or (vi) during any period of two consecutive years, individuals who at the beginning of such period constitute the
Board of Directors of the Corporation and any new director whose election by the Board of Directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who
either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof. 

3. Indemnity in Third-Party Proceedings. The Corporation shall indemnify Indemnitee against all Expenses, judgments, fines, and
penalties actually and reasonably incurred by Indemnitee in connection with the defense or settlement of any Proceeding (other than a Proceeding by or in the right of the Corporation to procure a judgment in its favor, and other than a Proceeding
brought or initiated voluntarily by Indemnitee), but only if Indemnitee acted in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and, in the case of a criminal
proceeding, had no reasonable cause to believe that Indemnitee’s conduct was unlawful. The termination of any such Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation or, with respect to any criminal proceeding, that Indemnitee had
reasonable cause to believe that Indemnitee’s conduct was unlawful. 
 4. Indemnity in Proceedings By or In the Right of
the Corporation. The Corporation shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with the defense or settlement of any Proceeding by or in the right of the Corporation to procure a
judgment in its favor, but only if Indemnitee acted in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation; except that no indemnification for Expenses shall be made under
this section in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged to be liable to the Corporation for negligence or misconduct in the performance of Indemnitee’s duty to the Corporation, unless (and then only
to the extent that) the court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnity for such Expenses which such court shall deem proper. 
 5. Indemnification of Expenses of Successful Party.
Notwithstanding any other provision of this Agreement: 
 (a) To the extent that Indemnitee has been successful on the merits or
otherwise, including by a settlement, in defense of any Proceeding, or in defense of any one or more claims, issues or matters included therein, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee in
connection therewith; and 

  
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 (b) Indemnitee’s Expenses actually and reasonably incurred in connection with
successfully establishing or enforcing, in whole or in part, Indemnitee’s right to indemnification or advancement of Expenses under this Agreement or otherwise, shall also be indemnified by the Corporation. 

6. Advances of Expenses. At the written request of Indemnitee, the Expenses reasonably incurred by Indemnitee in any Proceeding,
including Expenses billed but not yet paid, shall be paid directly (or if already paid by Indemnitee, shall be reimbursed to Indemnitee) by the Corporation from time to time in a timely manner in advance of the final disposition of such Proceeding,
provided that Indemnitee shall undertake in writing to repay the amounts advanced if and to the extent that it is ultimately determined that Indemnitee is not entitled to indemnification. Indemnitee shall not be required to provide security for such
undertaking. If the Corporation makes an advance of Expenses pursuant to this section, the Corporation shall be subrogated to every right of recovery Indemnitee may have against any insurance carrier from whom the Corporation has purchased insurance
for such purpose. 
 7. Right of Indemnitee to Indemnification Upon Application; Procedure Upon Application. 

(a) Any indemnification or advancement of Expenses under this Agreement shall be paid by the Corporation no later than 30 days after
receipt of the written request of Indemnitee, unless a determination is made within said 30-day period that Indemnitee has not met the standards for indemnification set forth in the relevant section or sections of this Agreement by either:

 (i) If a Change of Control shall not have occurred: 
 (A) The Board by a majority vote of a quorum consisting of directors who were not and are not parties to the Proceeding in respect of which indemnification is being sought (“Disinterested
Directors”), or 
 (B) If there are no such Disinterested Directors, of if such Disinterested Directors so direct, by
Independent Counsel in a written opinion, or 
 (C) The stockholders of the Corporation by vote of a majority of a quorum at a
meeting duly called and held; or 
 (ii) If a Change of Control shall have occurred, by Independent Counsel in a written
opinion. 
 (b) Indemnitee’s right to indemnification or advancement of Expenses as provided by this Agreement shall be
enforceable by Indemnitee in any court of competent jurisdiction. The burden of proving that such indemnification or advancement is not appropriate shall be on the Corporation. Neither the failure of the Corporation (including the Board or
Independent Counsel or the stockholders) to have made a determination prior to the 

  
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 commencement of such action that Indemnitee has met the applicable standard of conduct nor an actual
determination by the Corporation (including the Board or Independent Counsel or the stockholders) that Indemnitee has not met such standard shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard
of conduct. 
 (c) With respect to any Proceeding for which indemnification or advancement of Expenses is requested, the
Corporation will be entitled to participate therein at its own expense and, except as otherwise provided below, the Corporation may assume the defense thereof with counsel reasonably satisfactory to Indemnitee. After notice from the Corporation to
Indemnitee of its election to assume the defense of a Proceeding, the Corporation will not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by Indemnitee in connection with the defense thereof, other than as
provided below. The Corporation shall not settle any Proceeding in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent. Indemnitee shall have the right to employ counsel in any Proceeding
but the fees and expenses of such counsel incurred after notice from the Corporation of its assumption of the defense of the Proceeding shall be at the expense of Indemnitee and shall not be advanced or indemnified by the Corporation, unless:

 (i) The employment of counsel by Indemnitee has been authorized by the Corporation, or 

(ii) Indemnitee shall have reasonably concluded, in writing sent to the Corporation, that there may be a conflict of
interest between the Corporation and Indemnitee in the conduct of the defense of a Proceeding, or 
 (iii) The
Corporation shall not in fact have employed counsel to assume the defense of a Proceeding, or 
 (iv) Such
Expenses of counsel are actually and reasonably incurred in connection with successfully establishing, in whole or in part, Indemnitee’s right to indemnification or advancement of Expenses under this Agreement or otherwise, 

in each of which cases the fees and expenses of Indemnitee’s counsel shall be advanced by the Corporation. 

Notwithstanding the foregoing, the Corporation shall not be entitled to assume the defense of any Proceeding brought by or in the right of the
Corporation. 
 8. Limitation on Indemnification. No payment pursuant to this Agreement shall be made by the Corporation:

 (i) To indemnify or advance finds to Indemnitee for Expenses with respect to Proceedings initiated or brought
voluntarily by Indemnitee and not by way of defense, except with respect to Proceedings brought to establish or enforce a right to indemnification or advancement of expenses under this Agreement, but such indemnification or advancement of Expenses
may be provided by the Corporation in specific cases if the Board finds it to be appropriate; 

  
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 (ii) To indemnify Indemnitee for any Expenses, judgments, fines, or
penalties sustained in any Proceeding for which payment is actually made to Indemnitee under a valid and collectible insurance policy, except in respect of any deductible or retention amount, or any excess beyond the amount of payment under such
insurance; 
 (iii) To indemnify Indemnitee for any Expenses, judgments, fines or penalties sustained in any
Proceeding for an accounting of profits made from the purchase or sale by Indemnitee of securities of the Corporation pursuant to the provisions of § 16(b) of the Exchange Act, the rules and regulations promulgated thereunder and amendments
thereto or similar provisions of any federal, state, or local statutory law; 
 (iv) To indemnify Indemnitee for
any Expenses, judgments, fines or penalties resulting from Indemnitee’s conduct which is finally adjudged to have been willful misconduct, knowingly fraudulent, or deliberately dishonest; or 

(v) If a court of competent jurisdiction finally determines that such payment is unlawful 

9. Indemnification Hereunder Not Exclusive. The indemnification and advancement of Expenses provided by this Agreement shall not be
deemed exclusive of any other rights to which Indemnitee may be entitled under the Certificate of Incorporation or the Bylaws of the Corporation, any other agreement, any vote of stockholders or disinterested directors, the General Corporation Law
of the State of Delaware, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such directorship or office. The indemnification provided by this Agreement shall continue as to
Indemnitee even though Indemnitee may have ceased to be a director and shall inure to the benefit of Indemnitee’s personal representatives, heirs, legatees and assigns. 
 10. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Corporation for a portion of the Expenses, judgments, fines, or penalties
actually and reasonably incurred by him or her in any Proceeding but not, however, for the total amount thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion of such Expenses, judgments, fines, or penalties to which
Indemnitee is entitled. 
 11. Presumption and Burden of Proof. In any adjudication, opinion by counsel, or decision by
the Board or shareholders referred to in this Agreement or otherwise that involves the determination, directly or indirectly, as to whether Indemnitee is entitled to indemnification, including the advancement of Expenses, there shall be a
presumption that Indemnitee is entitled to indemnification. The Corporation or any other person opposing indemnification shall have the burden of proof to overcome the presumption in favor of indemnification by clear and convincing evidence.

  
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 12. Selection of Independent Counsel. 

(a) If an opinion of Independent Counsel shall be required pursuant to Section 7(a)(ii), such counsel shall be selected by
Indemnitee, and Indemnitee shall give written notice to the Corporation advising it of the identity of the Independent Counsel. If an opinion of Independent Counsel shall be required pursuant to Section 7(a)(i)(B), such counsel shall be
selected by the Corporation, in which case the Corporation shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel. or in a manner determined by the Board. In either event, Indemnitee or the
Corporation, as the case may be, may, within 10 days after such written notice of selection shall have been received, deliver to the Corporation or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that
such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with
particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not
serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without merit. If, within 20 days after the later of submission by Indemnitee of a written request
for indemnification pursuant to Section 7 hereof and the final disposition of the Proceeding, no Independent Counsel shall have been selected and not objected to, either the Corporation or Indemnitee may petition a court of competent
jurisdiction for resolution of any objection which shall have been made by the Corporation or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by
such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 7 hereof. Upon the due commencement of any judicial
proceeding or arbitration pursuant to this Agreement, the Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). 

(b) Nothing herein shall prohibit the Board from selecting Indemnitee’s defense counsel for this purpose if the Board determines this
to be in the best interest of the Corporation as an appropriate way to determine the potential liability of Indemnitee. 
 (c)
The Corporation agrees to pay the reasonable fees and expenses of any Independent Counsel serving under this Agreement. 
 13.
Settlement of Proceedings. In the case of a Proceeding by Indemnitee to establish or enforce a right of Indemnitee under this Agreement, the Corporation shall have the right at any time during such Proceeding to make the determination that it
is in the best interests of the Corporation to settle the Proceeding, and to pay all or part of the indemnity sought as a part of such settlement. 
 14. Arbitration. If the Corporation makes a determination that Indemnitee is not entitled to indemnity in connection with a Proceeding, Indemnitee shall have the right to de novo review of
such determination before a panel of arbitrators chosen in accordance with the commercial arbitration rules of the American Arbitration Association. 

  
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 15. Maintenance of Liability Insurance. 

(a) The Corporation hereby covenants and agrees that, as long as Indemnitee continues to serve as a director of the Corporation and
thereafter as long as Indemnitee may be subject to any Proceeding, the Corporation, subject to subsection (c) of this section, shall maintain in full force and effect directors’ and officers’ liability insurance (“D&O
Insurance”) in reasonable amounts from established and reputable insurers. 
 (b) In all D&O Insurance policies,
Indemnitee shall be named as an insured in such a manner as to provide the Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Corporation’s directors and officers. Further, in all policies of D&O
Insurance, coverage for Indemnitee shall include but not be limited to the following: 
 (i) Claims asserted by
the Corporation’s present or past shareholders, directors, employees, lenders, customers, suppliers, competitors and regulators, as well as claims in connection with class actions, claims arising out of mergers and acquisitions and antitrust
claims asserted by governmental or private parties; but the policy may exclude claims by one insured against another insured, except for employment claims; 
 (ii) No exclusion for Indemnitee’s negligence; 
 (iii) No
exclusion for fraud or deliberate dishonesty, except if there has been a final adjudication of fraud or dishonesty by a court of competent jurisdiction; 
 (iv) Punitive and exemplary damages as well as the multiplied portion of any damage award; and 
 (v) Any and all Expenses, judgments, fines and penalties not indemnifiable pursuant to this Agreement, the Corporation’s Certificate of Incorporation or Bylaws, the General Corporation Law of the
State of Delaware, or the laws, rules or regulations of any other jurisdiction or state or federal agency whose laws, rules or regulations may be applicable. 
 (c) Notwithstanding the foregoing, the Corporation shall have no obligation to obtain or maintain D&O Insurance if and to the extent that the Corporation determines in good faith that such insurance
is not reasonably available, the premium costs for such insurance are disproportionate to the amount of coverage provided, the coverage provided by such insurance is so limited by exclusions that it provides an insufficient benefit, or Indemnitee is
covered by similar insurance maintained by a subsidiary of the Corporation. 
 16. Miscellaneous. 

(a) Savings Clause. If this Agreement or any portion hereof is invalidated on any ground by any court of competent jurisdiction,
the Corporation shall nevertheless indemnify Indemnitee to the extent permitted by any applicable portion of this Agreement that has not been invalidated or by any other applicable law. 

  
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 (b) Notice. Indemnitee shall, as a condition precedent to his right to be indemnified
under this Agreement, give to the Corporation notice in writing as soon as practicable of any Proceeding for which indemnity will or could be sought under this Agreement. Notice to the Corporation shall be directed to Armstrong Energy, Inc., ,
Attention: President, at 7733 Forsyth Boulevard, Ste. 1625, St. Louis, Missouri 63105, or such other address as is then its corporate headquarters, or such other address as the Corporation shall have designated in writing to Indemnitee at his last
known residence or office address. Notice shall be deemed received three days after the date postmarked if sent by prepaid mail, properly addressed. In addition, Indemnitee shall give the Corporation such information and cooperation as it may
reasonably require and as shall be reasonably within Indemnitee’s power. 
 (c) Counterparts. This Agreement may be
executed in any number of counterparts, all of which shall be deemed to constitute one and the same instrument. 
 (d)
Applicable Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the law of the State of Delaware. 
 (e) Successors and Assigns. This Agreement shall be binding upon the Corporation and its successors and assigns and upon Indemnitee and his personal representatives, heirs, legatees and assigns.

 (f) Amendments. No amendment, waiver, modification, termination, or cancellation of this Agreement shall be effective
unless in writing signed by both parties hereto. The indemnification rights afforded to Indemnitee hereby are contract rights and may not be diminished, eliminated, or otherwise affected by amendments to the Certificate of Incorporation or Bylaws of
the Corporation or by other agreements without the express written agreement of the parties expressly referring to and consenting to the provision by which such rights will be diminished, eliminated or otherwise affected. 

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

	
	Armstrong Energy, Inc.
	
	 
	Martin D. Wilson, President
	
	 
	[Indemnitee]

  
 9EX-10.38

 Exhibit 10.38 
 ARMSTRONG ENERGY, INC.  

2011 LONG-TERM INCENTIVE PLAN  

Section 1. Purpose. The purpose of this Plan is to advance the interests of Armstrong Energy, Inc. and its
stockholders by providing incentives to certain Eligible Persons who contribute significantly to the strategic and long-term performance objectives and growth of the Company. 
 Section 2. Definitions. Certain capitalized terms applicable to this Plan are set forth in Appendix A. 
 Section 3. Administration. This Plan shall be administered by the Committee. The Committee shall have all the powers vested in it by the terms of this Plan, such powers to
include, but not limited to, exclusive authority to select the Eligible Persons to be granted Awards under this Plan, to determine the type, size, terms and conditions of the Award to be made to each Eligible Person selected, to modify or waive the
terms and conditions of any Award that has been granted, to determine the time when Awards will be granted, to establish performance objectives, to make any adjustments necessary or desirable as a result of the granting of Awards to Eligible Persons
located outside the United States, to prescribe the form of the agreements evidencing Awards made under this Plan, and to incorporate clawback or other recoupment provisions to Awards granted hereunder that would protect the Company and its
stockholders from actions such as fraudulent activities in connection with financial restatements and/or due to ethical misconduct. Awards may, in the discretion of the Committee, be made under this Plan in assumption of, or in substitution for,
outstanding Awards previously granted by (i) the Company, (ii) any predecessor of the Company, or (iii) a company acquired by the Company or with which the Company combines. The number of Common Shares underlying such substitute
awards shall be counted against the aggregate number of Common Shares available for Awards under this Plan. 
 The Committee is
authorized to interpret this Plan and the Awards granted under this Plan, to establish, amend and rescind any rules and regulations relating to this Plan, and to make any other determinations that it deems necessary or desirable for the
administration of this Plan. The Committee may correct any defect or omission or reconcile any inconsistency in this Plan or in any Award in the manner and to the extent the Committee deems necessary or desirable to carry it into effect. Any
decision of the Committee in the interpretation and administration of this Plan, as described in this Plan, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not
limited to, Participants and their Beneficiaries or Permitted Transferees). The Committee may act only by a majority of its members, except that the members thereof may authorize any one or more of their members or any officer of the Company
to execute and deliver documents or to take any other ministerial action on behalf of the Committee with respect to Awards made or to be made to Participants. 

 No member of the Committee and no officer of the Company shall be liable for anything done
or omitted to be done by such member or officer, by any other member of the Committee or by any other officer of the Company in connection with the performance of duties under this Plan, except for his or her own willful misconduct or as
expressly provided by statute. In addition to all other rights of indemnification and reimbursement to which a member of the Committee and an officer of the Company may be entitled, the Company shall indemnify and hold harmless each such member or
officer who was or is a party or is threatened to be made a party to any threatened, pending or completed proceeding or suit in connection with the performance of duties under this Plan against expenses (including reasonable attorneys’ fees),
judgments, fines, liabilities, losses and amounts paid in settlement actually and reasonably incurred by him or her in connection with such proceeding or suit, except for his or her own willful misconduct or as expressly provided otherwise by
statute. Expenses (including reasonable attorneys’ fees) incurred by such a member or officer in defending any such proceeding or suit shall be paid by the Company in advance of the final disposition of such proceeding or suit upon receipt of a
written affirmation by such member or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification and a written undertaking by or on behalf of such member or officer to repay such amount if it
shall ultimately be determined that he or she is not entitled to be indemnified by the Company as authorized in this Section. 

Section 4. Participation. Consistent with the purposes of this Plan, the Committee shall have exclusive
power to select the Eligible Persons who may participate in this Plan and be granted Awards under this Plan. Eligible Persons may be selected individually or by groups or categories, as determined by the Committee in its discretion. 

Section 5. Awards under this Plan.  

(a) Types of Awards. Awards under this Plan may include, but need not be limited to, one or more of the
following types, either alone or in any combination thereof: (i) Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock, (iv) Restricted Stock Units, (v) Performance Grants and (vi) any other type of
Award deemed by the Committee in its discretion to be consistent with the purposes of this Plan (including, but not limited to, Other Share-Based Awards, and Awards to be made to Participants who are foreign nationals or are employed or performing
services outside the United States). 
 (b) Maximum Number of Common Shares that May be Issued. The
maximum aggregate number of Common Shares available for issuance under Awards granted under this Plan, including Incentive Stock Options, shall be 3,500,000. No Eligible Person may receive: (i) Stock Options or Stock Appreciation Rights under
this Plan for more than 300,000 Common Shares in any one fiscal year of the Company; (ii) Performance Grants (denominated in Common Shares) for more than 300,000 Common Shares in any one fiscal year of the Company and (iii) Performance
Grants (denominated in cash) for more than $7,500,000 in any one fiscal year of the Company. The foregoing limitations shall be subject to adjustment as provided in Section 16, but only to the extent that any such adjustment will not affect the
status of: (i) any Award intended to qualify as performance-based compensation under Section 162(m) of the Code; (ii) any Award intended to qualify as an Incentive Stock Option or (iii) any Award intended to comply with, or
qualify for an exception to, Section 409A of the Code. Common Shares issued pursuant to this Plan may be either authorized but unissued shares, treasury shares, 

	

  
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 reacquired shares or any combination thereof. If any Common Shares covered by an award
terminate, lapse, are forfeited or cancelled, or such Award is otherwise settled without the delivery of the full number of Common Shares underlying the Award, including Common Shares withheld to satisfy tax withholding obligations, then such Common
Shares to the extent of any such forfeiture, termination, lapse, cancellation, payment, etc., shall again be, or shall become available for issuance under this Plan; provided, however, that Common Shares (i) delivered in payment of the exercise
price of a Stock Option, (ii) not issued upon the net settlement or net exercise of Stock Appreciation Rights, or (iii) delivered to or withheld by the Company to pay withholding taxes related to a Stock Option or Stock Appreciation Right,
shall not become available again for issuance under this Plan. 
 (c) Rights with Respect to Common
Shares and Other Securities. Except as provided in subsection 8(c) with respect to Awards of Restricted Stock and unless otherwise determined by the Committee in its discretion, a Participant to whom an Award is made (and any Person succeeding
to such a Participant’s rights pursuant to this Plan) shall have no rights as a stockholder with respect to any Common Shares or as a holder with respect to other securities, if any, issuable pursuant to any such Award until the date a stock
certificate evidencing such Common Shares or other evidence of ownership is issued to such Participant or until Participant’s ownership of such Common Shares shall have been entered into the books of the registrar in the case of uncertificated
shares. 
 Section 6. Stock Options. The Committee may grant Stock Options; provided
that an Incentive Stock Option may be granted only to Eligible Persons who are employees of Armstrong Energy, Inc. or any parent or subsidiary of Armstrong Energy, Inc. within the meaning of Code Sections 424(e) and (f), including a subsidiary
which becomes such after adoption of the plan. Each Stock Option granted or sold under this Plan shall be evidenced by an agreement in such form as the Committee shall prescribe from time to time in accordance with this Plan and shall comply with
the applicable terms and conditions of this Section and this Plan, and with such other terms and conditions, including, but not limited to, restrictions upon the Stock Option or the Common Shares issuable upon exercise thereof, as the Committee, in
its discretion, shall establish. 
 (a) The exercise price of a Stock Option shall not be less than the
Fair Market Value of the Common Shares subject to such Stock Option on the date of grant, as determined by the Committee; provided, however, if an Incentive Stock Option is granted to a Ten Percent Employee, such exercise price shall not be
less than 110% of such Fair Market Value at the time the Stock Option is granted. 
 (b) The Committee
shall determine the number of Common Shares to be subject to each Stock Option. 
 (c) Any Stock Option
may be exercised during its term only at such time or times and in such installments as the Committee may establish. 
 (d) A Stock Option shall not be exercisable: 

  
 3 

 (i) in the case of any Incentive Stock Option granted to a Ten
Percent Employee, after the expiration of five years from the date it is granted, and, in the case of any other Stock Option, after the expiration of ten years from the date it is granted; and 

(ii) no shares shall be issued unless payment in full is made for the shares being acquired under such Stock Option
at the time of exercise as provided in subsection 6(h). 
 (e) The Committee shall determine in its
discretion and specify in each agreement evidencing a Stock Option the effect, if any, the termination of the Participant’s employment with or performance of services for the Company shall have on the exercisability of the Stock Option;
provided, however, that an Incentive Stock Option that is exercised at a time that is beyond the time an Incentive Stock Option may be exercised in order to qualify as such under the Code shall cease to be an Incentive Stock Option.

 (g) It is the intent of Armstrong Energy, Inc. that Nonqualified Stock Options granted under this Plan
not be classified as Incentive Stock Options, that the Incentive Stock Options granted under this Plan be consistent with and contain or be deemed to contain all provisions required under Section 422 and the other appropriate provisions of the
Code and any implementing regulations (and any successor provisions thereof), and that any ambiguities in construction shall be interpreted in order to effectuate such intent. If a Stock Option is intended to be an Incentive Stock Option, and if for
any reason such Stock Option (or portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such Stock Option (or portion thereof) shall be regarded as a Nonqualified Stock Option granted under
this Plan; provided that such Stock Option (or portion thereof) otherwise complies with this Plan’s requirements relating to Nonqualified Stock Options. In no event shall any member of the Committee or the Company (or its employees, officers or
directors) have any liability to any Participant (or any other Person) due to the failure of a Stock Option to qualify for any reason as an Incentive Stock Option. 

(h) For purposes of payments made to exercise Stock Options, such payment shall be made in such form (including,
but not limited to, cash, Common Shares, the surrender of another outstanding Award under this Plan, broker assisted cashless exercise or any combination thereof) as the Committee may determine in its discretion. 

Section 7. Stock Appreciation Rights. The Committee may grant Stock Appreciation Rights. Each Award of
Stock Appreciation Rights granted under this Plan shall be evidenced by an agreement in such form as the Committee shall prescribe from time to time in accordance with this Plan and shall comply with the applicable terms and conditions of this
Section and this Plan, and with such other terms and conditions, including, but not limited to, restrictions upon the Award of Stock Appreciation Rights or the Common Shares issuable upon exercise thereof, as the Committee, in its discretion, shall
establish. 

  
 4 

 (a) The Committee shall determine the number of Common Shares to be subject to each
Award of Stock Appreciation Rights. 
 (b) Any Stock Appreciation Right may be exercised during its term only at such time
or times and in such installments as the Committee may establish and shall not be exercisable after the expiration of ten years from the date it is granted. 
 (c) The Committee shall determine in its discretion and specify in each agreement evidencing an Award of Stock Appreciation Rights the effect, if any, the termination of the Participant’s
employment with or performance of services for the Company shall have on the exercisability of the Award of Stock Appreciation Rights. 
 (d) An Award of Stock Appreciation Rights shall entitle the holder to exercise such Award and to receive from Armstrong Energy, Inc. in exchange thereof, without payment to Armstrong Energy, Inc.,
that number of Common Shares having an aggregate value equal to the excess of the Fair Market Value of one Common Share, at the time of such exercise, over the exercise price, times the number of Common Shares subject to the Award, or portion
thereof, that is so exercised or surrendered, as the case may be. Stock Appreciation Rights shall have an exercise price no less than the Fair Market Value of the Common Shares covered by the right on the date of grant. 

(e) A Stock Appreciation Right may provide that it shall be deemed to have been exercised at the close of business on the business
day preceding the expiration date of the Stock Appreciation Right, or such other date as specified by the Committee, if at such time such Stock Appreciation Right has a positive value. Such deemed exercise shall be settled or paid in the same manner
as a regular exercise thereof as provided in subsection 7(d) of this Agreement. 
 Section 8. Restricted Stock
and Restricted Stock Units. The Committee may grant Awards of Restricted Stock and Restricted Stock Units. Each Award of Restricted Stock or Restricted Stock Units under this Plan shall be evidenced by an agreement in such form as the
Committee shall prescribe from time to time in accordance with this Plan and shall comply with the applicable terms and conditions of this Section and this Plan, and with such other terms and conditions as the Committee, in its discretion, shall
establish. 
 (a) The Committee shall determine the number of Common Shares to be issued to a Participant
pursuant to the Award of Restricted Stock or Restricted Stock Units, and the extent, if any, to which they shall be issued in exchange for cash, other consideration, or both. 

(b) Until the expiration of such period as the Committee shall determine from the date on which the Award is
granted and subject to such other terms and conditions as the Committee, in its discretion, shall establish (the “Restricted Period”), a Participant to whom an Award of Restricted Stock is made shall be issued, but shall not
be entitled to the delivery of, a stock certificate or other evidence of ownership representing the 

  
 5 

 Common Shares subject to such Award. The standard vesting schedule applicable to Awards of
Restricted Stock and Restricted Stock Units shall provide for vesting of such Awards, in one or more increments, over a service period of no less than three years (not including special vesting terms set forth therein); provided, however, this
limitation shall not apply to Awards granted to non-employee directors of the Board that are received pursuant to the Company’s compensation program applicable to non-employee directors of the Board, or adversely affect a Participant’s
rights under another plan or agreement with the Company. 
 (c) Unless otherwise determined by the
Committee in its discretion, a Participant to whom an Award of Restricted Stock has been made (and any Person succeeding to such a Participant’s rights pursuant to this Plan) shall have, after issuance of a certificate for the number of Common
Shares awarded (or after the Participant’s ownership of such Common Shares shall have been entered into the books of the registrar in the case of uncertificated shares) and prior to the expiration of the Restricted Period, ownership of such
Common Shares, including the right to vote such Common Shares and to receive dividends or other distributions made or paid with respect to such Common Shares, provided that, such Common Shares, and any new, additional or different shares, or
Other Armstrong Energy Securities or property, or other forms of consideration that the Participant may be entitled to receive with respect to such Common Shares as a result of a stock split, stock dividend or any other change in the corporation or
capital structure of Armstrong Energy, Inc., shall be subject to the restrictions set forth in the Award and this Plan. 
 (d) The Committee shall determine in its discretion and specify in each agreement evidencing an Award of Restricted Stock or Restricted Stock Units the effect, if any, the termination of the
Participant’s employment with or performance of services for the Company during the Restricted Period shall have on such Award. 
 (e) The Committee may grant Dividend Equivalents to Participants in connection with Awards of Restricted Stock Units. The Committee may provide, at the date of grant or thereafter, that Dividend
Equivalents shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Common Shares, or other investment vehicles as the Committee may specify; provided that, unless otherwise determined by the Committee,
Dividend Equivalents shall be subject to all conditions and restrictions of the underlying Restricted Stock Units to which they relate. 
 Section 9. Performance Grants.  

(a) Grant. Subject to the limitations set forth in Section 5(b), the Committee may grant a Performance
Grant which shall consist of a right that is (i) denominated in cash, Common Shares or any other form of Award issuable under this Plan (or any combination thereof), (ii) valued, as determined by the Committee, in accordance with the
achievement of such performance goals applicable to such performance periods as the Committee shall establish and (iii) payable at such time and in such form as the Committee shall determine. Unless otherwise determined by the Committee, any
such 

  
 6 

 Performance Grant shall be evidenced by an Award agreement containing the terms of the
Award, including, but not limited to, the performance criteria and such terms and conditions as may be determined, from time to time, by the Committee, in each case, not inconsistent with this Plan. In relation to any Performance Grant, the
performance period may consist of one or more calendar years or other fiscal period of at least 12 months in length for which performance is being measured. 
 (b) Terms and Conditions. For Awards intended to be performance-based compensation under Section 162(m) of the Code, Performance Grants shall be conditioned upon the achievement of
pre-established goals relating to one or more of the following performance measures, as determined in writing by the Committee and subject to such modifications as specified by the Committee: cash flow; cash flow from operations; earnings
(including, but not limited to, earnings before interest, taxes, depreciation and amortization or some variation thereof); earnings per share, diluted or basic; earnings per share from continuing operations; net asset turnover; inventory turnover;
capital expenditures; debt; debt reduction; working capital; return on investment; return on sales; net or gross sales; market share; economic value added; cost of capital; change in assets; expense reduction levels; productivity; delivery
performance; safety record and/or performance; stock price; return on equity; total or relative increases to stockholder return; return on invested capital; return on assets or net assets; revenue; income or net income; operating income or net
operating income; operating profit or net operating profit; gross margin, operating margin or profit margin; and completion of acquisitions, business expansion, product diversification, new or expanded market penetration, and other non-financial
operating and management performance objectives. To the extent consistent with Section 162(m) of the Code, the Committee may determine, at the time the performance goals are established, that certain adjustments shall apply, in whole or in
part, in such manner as determined by the Committee, to exclude the effect of any of the following events that occur during a performance period: the impairment of tangible or intangible assets; litigation or claim judgments or settlements; the
effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results; business combinations, reorganizations and/or restructuring programs, including, but not limited to, reductions in force and early
retirement incentives; currency fluctuations; and any extraordinary, unusual, infrequent or non-recurring items, including, but not limited to, such items described in management’s discussion and analysis of financial condition and results of
operations or the financial statements and notes thereto appearing in Armstrong Energy, Inc.’s annual report for the applicable period. Performance measures may be determined either individually, alternatively or in any combination, applied to
either the Company as a whole or to a business unit or subsidiary entity thereof, either individually, alternatively or in any combination, and measured over a period of time including any portion of a year, annually or cumulatively over a period of
years, on an absolute basis or relative to a pre-established target, to previous fiscal years’ results or to a designated comparison group, in each case as specified by the Committee. 

  
 7 

 (c) Pre-established Performance Goals. For Awards intended to
be performance-based compensation under Section 162(m) of the Code, performance goals relating to the performance measures set forth above shall be pre-established in writing by the Committee, and achievement thereof certified in writing prior
to payment of the Award, as required by Section 162(m) and Treasury Regulations promulgated thereunder. All such performance goals shall be established in writing no later than ninety (90) days after the beginning of the applicable
performance period. In addition to establishing minimum performance goals below which no compensation shall be payable pursuant to a Performance Grant, the Committee, in its sole discretion, may create a performance schedule under which an amount
less than or more than the target award may be paid so long as the performance goals have been achieved. 

(d) Additional Restrictions/Negative Discretion. The Committee, in its sole discretion, may also establish
such additional restrictions or conditions that must be satisfied as a condition precedent to the payment of all or a portion of any Performance Grants. Such additional restrictions or conditions need not be performance-based and may include, among
other things, the receipt by a Participant of a specified annual performance rating, the continued employment by the Participant and/or the achievement of specified performance goals by the Company, business unit or Participant. Furthermore, and
notwithstanding any provision of this Plan to the contrary, the Committee, in its sole discretion, may retain the discretion to reduce the amount of any Performance Grant to a Participant if it concludes that such reduction is necessary or
appropriate based upon: (i) an evaluation of such Participant’s performance; (ii) comparisons with compensation received by other similarly-situated individuals working within the Company’s industry; (iii) the Company’s
financial results and conditions or (iv) such other factors or conditions that the Committee deems relevant; provided, however, the Committee shall not use its discretionary authority to increase any Award that is intended to be
performance-based compensation under Section 162(m) of the Code. 
 (e) Payment of Performance
Awards. Performance Grants may be paid in a lump sum or in installments following the close of the performance period or, in accordance with procedures established by the Committee, on a deferred basis. 

Section 10. Other Share-Based Awards. The Committee may grant Other Share-Based Awards, which shall consist of
any right that is (i) not an Award described in Sections 6 through 9 above and (ii) an Award of Common Shares or an Award denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Common
Shares (including, without limitation, securities convertible into Common Shares), as deemed by the Committee to be consistent with the purposes of this Plan. Subject to the terms of this Plan and any applicable Award agreement, the Committee shall
determine the terms and conditions of any such Other Share-Based Award. The standard vesting schedule applicable to Other Share-Based Awards granted under this Section 10 shall provide for vesting of such Awards, in one or more increments, over
a service period of no less than three years (not including special vesting terms set forth therein); provided, however, this limitation shall not apply to Awards granted to non-employee directors of the Board that are received pursuant to the
Company’s compensation program applicable to non-employee directors of the Board, or adversely affect a Participant’s rights under another plan or agreement with the Company. 

  
 8 

 Section 11. Section 409A. Notwithstanding any provision of
the Plan or an Award agreement to the contrary, if any Award or benefit provided under this Plan is subject to the provisions of Section 409A, the provisions of the Plan and any applicable Award agreement shall be administered, interpreted and
construed in a manner necessary in order to comply with Section 409A or an exception thereto (or disregarded to the extent such provision cannot be so administered, interpreted or construed), and the following provisions shall apply, as
applicable: 
 (a) If a Participant is a Specified Employee for purposes of Section 409A and a
payment subject to Section 409A (and not excepted therefrom) to the Participant is due upon Separation from Service, such payment shall be delayed for a period of six (6) months after the date the Participant Separates from Service (or, if
earlier, the death of the Participant). Any payment that would otherwise have been due or owing during such six-month period will be paid immediately following the end of the six-month period unless another compliant date is specified in the
applicable agreement. 
 (b) For purposes of Section 409A, and to the extent applicable to any Award
or benefit under the Plan, it is intended that distribution events qualify as permissible distribution events for purposes of Section 409A and shall be interpreted and construed accordingly. Whether a Participant has Separated from Service will
be determined by the Committee based on all of the facts and circumstances and, to the extent applicable to any Award or benefit, in accordance with the guidance issued under Section 409A. For this purpose, a Participant will be presumed to
have experienced a Separation from Service when the level of bona fide services performed permanently decreases to a level less than twenty percent (20%) of the average level of bona fide services performed during the immediately
preceding thirty-six (36) month period or such other applicable period as provided by Section 409A. 

(c) The grant of Nonqualified Stock Options, Stock Appreciation Rights and other stock rights subject to
Section 409A shall be granted under terms and conditions consistent with Treas. Reg. § 1.409A-1(b)(5) such that any such Award does not constitute a deferral of compensation under Section 409A. Accordingly, any such Award may be
granted to Eligible Persons of Armstrong Energy, Inc. and its subsidiaries and affiliates in which Armstrong Energy, Inc. has a controlling interest. In determining whether Armstrong Energy, Inc. has a controlling interest, the rules of Treas. Reg.
§ 1.414(c)-2(b)(2)(i) shall apply; provided that the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it appears; provided, further, where legitimate business reasons exist (within
the meaning of Treas. Reg. § 1.409A-1(b)(5)(iii)(E)(i)), the language “at least 20 percent” shall be used instead of “at least 80 percent” in each place it appears. The rules of Treas. Reg. §§ 1.414(c)-3 and
1.414(c)-4 shall apply for purposes of determining ownership interests. 
 (d) In no event shall any
member of the Committee or the Company (or its employees, officers or directors) have any liability to any Participant (or any other Person) due to the failure of an Award to satisfy the requirements of Section 409A. 

  
 9 

 Section 12. Deferred Payment of Awards. The Committee, in
its discretion, may specify the conditions under which the payment of all or any portion of any cash compensation, or Common Shares or other form of payment under an Award, may be deferred until a later date. Deferrals shall be for such periods or
until the occurrence of such events, and upon such terms and conditions, as the Committee shall determine in its discretion, in accordance with the provisions of Section 409A; provided, however, that no deferral shall be permitted with respect
to Options or Stock Appreciation Rights. 
 Section 13. Transferability of Awards. A
Participant’s rights and interest under this Plan or any Award may not be assigned or transferred, hypothecated or encumbered in whole or in part either directly or by operation of law or otherwise, including, but not by way of limitation,
execution, levy, garnishment, attachment, pledge, bankruptcy or in any other manner; provided, however, the Committee may permit such transfer to a Permitted Transferee; and provided, further, that, unless otherwise permitted by the
Code, any Incentive Stock Option granted pursuant to this Plan shall not be transferable other than by will or by the laws of descent and distribution, and shall be exercisable during the Participant’s lifetime only by Participant or by such
Permitted Transferee. 
 Section 14. Amendment or Substitution of Awards under this Plan. The terms of
any outstanding Award under this Plan may be amended or modified from time to time after grant by the Committee in its discretion in any manner that it deems appropriate (including, but not limited to, acceleration of the date of exercise of any
Award and/or payments under any Award) in accordance with the terms of the Plan; provided that no such amendment or modification shall: (i) accelerate the vesting or exercisability of any Awards other than in connection with a
Participant’s death, disability, retirement or a change in control or other transaction contemplated by Section 16 hereof; provided further, the foregoing limitation shall not apply to (A) Awards for up to five percent
(5%) of the aggregate number of Common Shares authorized for issuance under the Plan, or (B) any Performance Grant the payment of which remains contingent upon the attainment of the performance goal; or (ii) adversely affect in a
material manner any right of a Participant under the Award without his or her written consent. Notwithstanding the foregoing or any provision of an Award to the contrary, the Committee may at any time (without the consent of any Participant) modify,
amend or terminate any or all of the provisions of an Award to the extent necessary to conform the provisions of the Award with Section 162(m), Section 409A or any other provision of the Code or other applicable law, the regulations issued
thereunder or an exception thereto, regardless of whether such modification, amendment or termination of the Award shall adversely affect the rights of a Participant. The Committee may, in its discretion, permit holders of Awards under this Plan to
surrender outstanding Awards in order to exercise or realize the rights under other Awards, or in exchange for the grant of new Awards, or require holders of Awards to surrender outstanding Awards as a condition precedent to the grant of new Awards
under this Plan. Except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, distribution (whether in the form of cash, Common Shares, Other Armstrong Energy Securities or other
property), stock split, extraordinary cash dividend, recapitalization, change in control, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Common Shares or Other Armstrong Energy, Inc. Securities, or
similar transaction(s)), the terms of outstanding Options or SARs may not be amended to reduce 

  
 10 

 the exercise price of such outstanding Options or SARs or cancel outstanding Options or SARs in exchange for
Options or SARs or cash or similar securities like stock awards with an exercise price that is less than the exercise price of the original Options or SARs without obtaining stockholder approval. 

Section 15. Termination of a Participant. For all purposes under this Plan, the Committee shall determine
whether a Participant has Separated from Service, terminated employment with, or the performance of services for, the Company; provided, however, an absence or leave approved by the Company, to the extent permitted by applicable provisions of
the Code, shall not be considered an interruption of employment or performance of services for any purpose under this Plan. 

Section 16. Dilution and Other Adjustments. In the event a dividend (other than a regular cash dividend) or
other distribution (whether in the form of cash, Common Shares, Other Armstrong Energy Securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of Common Shares or Other Armstrong Energy, Inc. Securities, issuance of warrants or other rights to purchase Common Shares or Other Armstrong Energy Securities or other similar corporate transaction or event affects the
Common Shares such that an adjustment is determined by the Committee to be necessary in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan, then the Committee shall, in an
equitable manner, (i) adjust any or all of (a) the aggregate maximum number of Common Shares or Other Armstrong Energy Securities (or number and kind of other securities or property) with respect to which Awards may be granted under this
Plan pursuant to Section 5(b), (b) the individual maximum number of Common Shares that may be granted as Stock Options, Stock Appreciation Rights and Performance Grants (denominated in Common Shares) to a Participant pursuant to
Section 5(b) of this Plan, (c) the number of Common Shares or Other Armstrong Energy Securities (or number and kind of other securities or property) subject to outstanding Awards and (d) the grant or exercise price with respect to any
outstanding Award; (ii) if deemed appropriate, provide for an equivalent Award or substitute Award in respect of securities of the surviving entity of any merger, consolidation or other transaction or event having a similar effect; or
(iii) if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; provided, that, in each case, any such adjustment shall be performed in accordance with the applicable provisions of Code and the Treasury
Regulations issued thereunder so as to not affect the status of: (A) any Award intended to qualify as performance-based compensation under Section 162(m) of the Code; (B) any Award intended to qualify as an Incentive Stock Option
under Section 422 of the Code or (C) any Award intended to comply with, or qualify for an exception to, Section 409A of the Code. Unless otherwise provided by the Committee, all outstanding Awards shall terminate immediately prior to
the consummation of any dissolution or liquidation of the Company. Any such termination or adjustment made by the Committee will be final, conclusive and binding for all purposes of this Plan. 

Section 17. Designation of Beneficiary by Participant. A Participant may name a beneficiary to receive any
payment to which such Participant may be entitled with respect to any Award under this Plan in the event of his or her death, on a written form to be provided by and filed with the Committee, and in a manner determined by the Committee in its
discretion (a 

  
 11 

 “Beneficiary”). The Committee reserves the right to review and approve Beneficiary designations. A
Participant may change his or her Beneficiary from time to time in the same manner, unless such Participant has made an irrevocable designation. Any designation of a Beneficiary under this Plan (to the extent it is valid and enforceable under
applicable law) shall be controlling over any other disposition, testamentary or otherwise, as determined by the Committee in its discretion. If no designated Beneficiary survives the Participant and is living on the date on which any amount becomes
payable to such a Participant’s Beneficiary, such payment will be made to the legal representatives of the Participant’s estate, and the term “ Beneficiary ” as used in this Plan shall be deemed to include such
Person or Persons. If there are any questions as to the legal right of any Beneficiary to receive a distribution under this Plan, the Committee in its discretion may determine that the amount in question be paid to the legal representatives of the
estate of the Participant, in which event the Company, the Board, the Committee, the Designated Administrator (if any), and the members thereof, will have no further liability to anyone with respect to such amount. 

Section 18. Miscellaneous Provisions.  

(a) Any proceeds from Awards shall constitute general funds of Armstrong Energy, Inc. 

(b) No fractional shares may be delivered under an Award, but in lieu thereof a cash or other adjustment may be
made as determined by the Committee in its discretion. 
 (c) No Eligible Person or other Person shall
have any claim or right to be granted an Award under this Plan. Determinations made by the Committee under this Plan need not be uniform and may be made selectively among Eligible Persons under this Plan, whether or not such Eligible Persons are
similarly situated. Neither this Plan nor any action taken under this Plan shall be construed as giving any Eligible Person any right to continue to be employed by or perform services for the Company, and the Company specifically reserves the right
to terminate the employment of or performance of services by Eligible Persons at any time and for any reason. 

(d) No Participant or other Person shall have any right with respect to this Plan, the Common Shares reserved for
issuance under this Plan or in any Award, contingent or otherwise, until written evidence of the Award shall have been delivered to the Participant and all the terms, conditions and provisions of this Plan and the Award applicable to such
Participant (and each Person claiming under or through such him or her) have been met. 
 (e)
Notwithstanding anything to the contrary contained in this Plan or in any Award agreement, each Award shall be subject to the requirement, if at any time the Committee shall determine, in its sole discretion, that such requirement shall apply,
that the listing, registration or qualification of any Award under this Plan, or of the Common Shares, Other Armstrong Energy Securities or property or other forms of payment issuable pursuant to any Award under this Plan, on any stock exchange or
other market quotation system or under any federal or state law, or the consent or approval of any 

  
 12 

 government regulatory body, is necessary or desirable as a condition of, or in connection
with, the granting of such Award or the exercise or settlement thereof, such Award shall not be granted, exercised or settled in whole or in part until such listing, registration, qualification, consent or approval shall have been effected, obtained
and maintained free of any conditions not acceptable to the Committee. Notwithstanding anything to the contrary contained in this Plan or in any Award agreement, no Common Shares, Other Armstrong Energy Securities or property or other forms of
payment shall be issued under this Plan with respect to any Award unless the Committee shall be satisfied that such issuance will be in compliance with applicable law and any applicable rules of any stock exchange or other market quotation system on
which such Common Shares are listed. If the Committee determines that the exercise of any Stock Option or Stock Appreciation Right would fail to comply with any applicable law or any applicable rules of any stock exchange or other market quotation
system on which Common Shares are listed, the Participant holding such Stock Option or Stock Appreciation Right shall have no right to exercise such Stock Option or Stock Appreciation Right until such time as the Committee shall have determined that
such exercise will not violate any applicable law or any such applicable rule, provided that such Stock Option or Stock Appreciation Right shall not have expired prior to such time. 

(f) It is the intent of Armstrong Energy, Inc. that this Plan and Awards hereunder comply in all respects with Rule
16b-3 and Sections 162(m), 409A and 422, and (i) the provisions of the Plan shall be administered, interpreted and construed in a manner necessary to comply with Rule 16b-3 and Sections 162(m), 409A and 422, the regulations issued thereunder or
an exception thereto (or disregarded to the extent the Plan cannot be so administered, interpreted or construed); and (ii) in no event shall any member of the Committee or the Company (or its employees, officers or directors) have any liability
to any Participant (or any other Person) due to the failure of an Award to satisfy the requirements of Rule 16b-3 and Sections 162(m), 409A and 422. 
 (g) The Company shall have the right to deduct from any payment made under this Plan any federal, state, local or foreign income or other taxes required by law to be withheld with respect to such
payment. It shall be a condition to the obligation of Armstrong Energy, Inc. to issue Common Shares, Other Armstrong Energy Securities or property, other securities or property, or other forms of payment, or any combination thereof, upon exercise,
settlement or payment of any Award under this Plan, that the Participant (or any Beneficiary or Person entitled to act) pay to Armstrong Energy, Inc., upon its demand, such amount as may be required by the Company for the purpose of satisfying any
liability to withhold federal, state, local or foreign income or other taxes. If the amount requested is not paid, Armstrong Energy, Inc. may refuse to issue Common Shares, Other Armstrong Energy Securities or property, other securities or property,
or other forms of payment, or any combination thereof. Notwithstanding anything in this Plan to the contrary, the Committee may, in its discretion, permit an Eligible Person (or any Beneficiary or Person entitled to act) to elect to pay a portion or
all of the amount requested by the Company for such taxes with respect to such Award, at such time and in such manner as the Committee shall deem to be appropriate (including, but not limited to, by authorizing Armstrong Energy, Inc. to withhold, or
agreeing to surrender to 

  
 13 

 Armstrong Energy, Inc. on or about the date such tax liability is determinable, Common
Shares, Other Armstrong Energy Securities or property, other securities or property, or other forms of payment, or any combination thereof, owned by such Person or a portion of such forms of payment that would otherwise be distributed, or have been
distributed, as the case may be, pursuant to such Award to such Person, having a market value equal to the amount of such taxes); provided, however, that any broker-assisted cashless exercise shall comply with the requirements of Financial
Accounting Standards Board, Accounting Standards Codification, Topic 718 and any withholding satisfied through a net-settlement shall be limited to the minimum statutory withholding requirements. 

(h) The expenses of this Plan shall be borne by the Company; provided, however, the Company may recover from
a Participant or his or her Beneficiary, heirs or assigns any and all damages, fees, expenses and costs incurred by the Company arising out of any actions taken by a Participant in breach of this Plan or any agreement evidencing such
Participant’s Award. 
 (i) This Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of assets to assure the payment of any Award under this Plan, and rights to the payment of Awards shall be no greater than the rights of the Company’s general creditors.

 (j) By accepting any Award or other benefit under this Plan, each Participant (and each Person claiming
under or through him or her) shall be conclusively deemed to have indicated his or her acceptance and ratification of, and consent to, any action taken under this Plan by the Company, the Board, the Committee or the Designated Administrator (if
applicable). 
 (k) The appropriate officers of the Company shall cause to be filed any reports, returns
or other information regarding Awards under this Plan or any Common Shares issued pursuant to this Plan as may be required by applicable law and any applicable rules of any stock exchange or other market quotation system on which Common Shares are
listed. 
 (l) The validity, construction, interpretation, administration and effect of this Plan, and of
its rules and regulations, and rights relating to this Plan and to Awards granted under this Plan, shall be governed by the substantive laws, but not the choice of law rules, of the State of Delaware. 

(m) Records of the Company shall be conclusive for all purposes under this Plan or any Award, unless determined by
the Committee to be incorrect. 
 (n) If any provision of this Plan or any Award is held to be illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Plan or any Award, but such provision shall be fully severable, and this Plan or Award, as applicable, shall be construed and enforced as if the
illegal or invalid provision had never been included in this Plan or Award, as applicable. 

  
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 (o) The terms of this Plan shall govern all Awards under this Plan
and in no event shall the Committee have the power to grant any Award under this Plan that is contrary to any of the provisions of this Plan. 
 (p) For purposes of interpretation of this Plan, the masculine pronoun includes the feminine and the singular includes the plural wherever appropriate. 

Section 19. Plan Amendment or Suspension. This Plan may be amended or suspended in whole or in part at any time
from time to time by the Committee; provided that no such change or amendment shall be made without stockholder approval if such approval is necessary to qualify for or comply with any tax or regulatory requirement or other applicable law for
which the Committee deems it necessary or desirable to qualify or comply. No amendment of this Plan shall adversely affect in a material manner any right of any Participant with respect to any Award previously granted without such Participant’s
written consent, except as permitted under Section 14. Notwithstanding the foregoing or any provision of the Plan to the contrary, the Committee may at any time (without the consent of any Participant) modify, amend or terminate any or all of
the provisions of the Plan to the extent necessary to conform the provisions of the Plan with Section 162(m), Section 409A or any other provision of the Code or other applicable law, the regulations issued thereunder or an exception
thereto, regardless of whether such modification, amendment or termination of the Plan shall adversely affect the rights of a Participant. 
 Section 20. Plan Termination. This Plan shall terminate upon the earlier of the following dates or events to occur: 

(a) upon the adoption of a resolution of the Board terminating this Plan; or 

(b) the tenth anniversary of the Effective Date. 
 Section 21. Effective Date. This Plan shall be effective on [ ] (the “ Effective Date ”), subject to its approval by the stockholders of Armstrong Energy,
Inc.; provided that, no Incentive Stock Options shall be exercisable under the Plan unless the stockholders of Armstrong Energy, Inc. approve the Plan within twelve (12) months after the Effective Date of this amendment and restatement;
provided, further, no award that is intended to be performance-based within the meaning of Section 162(m) shall be paid prior to stockholder approval of the material terms of the Plan. 

Section 22. Governing Law. This Plan and any Award granted under this Plan as well as any determinations made
or actions taken under this Plan shall be governed by, and construed and enforced in accordance with, the internal laws of the State of Delaware without regard to its choice or conflicts of laws principles. 

  
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 APPENDIX A 
 The following terms shall have the meaning indicated: 
 “Armstrong
Energy, Inc.” shall mean Armstrong Energy, Inc., a Delaware corporation. 
 “Award” shall
mean an award of rights to an Eligible Person under this Plan. 
 “Beneficiary” has the meaning set
forth in Section 16. 
 “Board” shall mean the board of directors of Armstrong Energy, Inc.

 “Code” shall mean the Internal Revenue Code of 1986, as it now exists or may be amended from time to
time, and the rules and regulations promulgated thereunder, as they may exist or may be amended from time to time. 

“Committee” shall mean the person or persons responsible for administering this Plan. The Board shall constitute
the Committee until the Board appoints a Board Committee, after which time the Board Committee shall constitute the Committee, provided, however, that at any time the Board may designate itself as the Committee or designate itself to administer
certain of the Committee’s authority under this Plan, including administering certain Awards under this Plan; provided, however, that the Board must approve Awards granted to non-employee directors of the Board. The Board or the Board Committee
may designate a Designated Administrator to constitute the Committee or to administer certain of the Committee’s authority under this Plan, including administering certain Awards under this Plan, subject to the right of the Board or the Board
Committee, as applicable, to revoke its designation at any time and to make such designation on such terms and conditions as it may determine in its discretion. For purposes of this definition, the “Board Committee” shall
mean a committee of the Board designated by the Board to administer this Plan. The Board Committee (i) shall be comprised of not fewer than three directors, (ii) shall meet any applicable requirements under Rule 16b-3, including any
requirement that the Board Committee consist of “Non-Employee Directors” (as defined in Rule 16b-3), (iii) shall meet any applicable requirements under Section 162(m), including any requirement that the Board Committee consist of
“outside directors” (as defined in Treasury Regulation §1.162-27(e)(3)(i) or any successor regulation), and (iv) shall meet any applicable requirements of any stock exchange or other market quotation system on which Common Shares
are listed. For purposes of this definition, the “Designated Administrator” shall mean one or more Company officers and/or directors designated by the Board or a Board Committee to act as a Designated Administrator pursuant
to this Plan in compliance with applicable law or rule. 
 “Company” shall mean Armstrong Energy, Inc.
and any parent, affiliate or subsidiary of Armstrong Energy, Inc., including any affiliates or subsidiaries which become such after adoption of this Plan. 

  
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 “Common Shares” shall mean shares of common stock, par value $0.01
per share, of Armstrong Energy, Inc. and stock of any other class into which such shares may thereafter be changed. 

“Dividend Equivalents” shall mean an Award of cash or other Awards with a Fair Market Value equal to the
dividends which would have been paid on the Common Shares underlying an outstanding Award of Restricted Stock Units had such Common Shares been outstanding. 
 “Effective Date” has the meaning set forth in Section 21. 
 “Eligible Person(s)” shall mean those persons who are full or part-time employees of the Company or other individuals who perform services for the Company, including, without
limitation, directors who are not employees of the Company and consultants and independent contractors who perform services for the Company. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as it now exists or may be amended from time to time, and the rules promulgated thereunder, as they may exist or may
be amended from time to time. 
 “Fair Market Value ” shall mean (i) with respect to the Common
Shares, as of any date (A) if the Company’s Common Shares are listed on any established stock exchange, system or market, the closing market price of the Common Shares as quoted in such exchange, system or market on such date as reported
in the Wall Street Journal or such other source as the Committee deems reliable or (B) in the absence of an established market for the Common Shares, as determined in good faith by the Committee or (ii) with respect to property other than
Common Shares, the value of such property, as determined by the Committee, in its sole discretion. 
 “Incentive
Stock Option” shall mean a Stock Option that is an incentive stock option as defined in Section 422 of the Code. Incentive Stock Options are subject, in part, to the terms, conditions and restrictions described in Section 6.

 “Nonqualified Stock Option” shall mean a Stock Option that is not an incentive stock option as
defined in Section 422 of the Code. Nonqualified Stock Options are subject, in part, to the terms, conditions and restrictions described in Section 6. 
 “Other Armstrong Energy Securities” shall mean Armstrong Energy, Inc. securities (which may include, but need not be limited to, unbundled stock units or components thereof,
debentures, preferred stock, warrants, securities convertible into Common Shares or other property) other than Common Shares. 

“Participant” shall mean an Eligible Person to whom an Award has been granted under this Plan. 

  
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 “Performance Grant” shall mean an Award, subject, in part, to the
terms, conditions and restrictions described in Section 9, pursuant to which the recipient may become entitled to receive cash, Common Shares, Other Armstrong Energy Securities any other form of award issuable under this Plan, or any
combination thereof, as determined by the Committee. 
 “Permitted Transferee” means (i) any
person defined as an employee in the Instructions to Registration Statement Form S-8 promulgated by the Securities and Exchange Commission, as such Form may be amended from time to time, which persons include, as of the date of adoption of this
Plan, executors, administrators or beneficiaries of the estates of deceased Participants, guardians or members of a committee for incompetent former Participants, or similar persons duly authorized by law to administer the estate or assets of former
Participants, and (ii) Participants’ family members who acquire Awards from the Participant other than for value, including through a gift or a domestic relations order. For purposes of this definition, “family
member” includes any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, any person sharing the Participant’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the
Participant) control the management of assets, and any other entity in which these persons (or the Participant) own more than fifty percent of the voting interests. For purposes of this definition, neither (i) a transfer under a domestic
relations order in settlement of marital property rights, nor (ii) a transfer to an entity in which more than fifty percent of the voting or beneficial interests are owned by family members (or the Participant) in exchange for an interest in
that entity is considered a transfer for “value”. 
 “Person” means any
individual, firm, corporation, partnership, limited liability company, trust, incorporated or unincorporated association, joint venture, joint stock company, governmental body or other entity of any kind. 

“Plan” shall mean this Armstrong Energy, Inc. 2011 Long-Term Incentive Plan. 

“Restricted Period” has the meaning set forth in subsection 8(b). 

“Restricted Stock” shall mean an Award of Common Shares that are issued subject, in part, to the terms,
conditions and restrictions described in Section 8. 
 “Restricted Stock Units” shall mean an Award
of the right to receive either (as the Committee determines) Common Shares or cash equal to the Fair Market Value of a Common Share, issued subject, in part, to the terms, conditions and restrictions described in Section 8. 

“Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act
and any successor rule. 
 “Section 162(m)” shall mean §162(m) of the Code, any rules or
regulations promulgated thereunder, as they may exist or may be amended from time to time, or any successor to such section. 

  
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 “Section 409A” shall mean §409A of the Code, any rules or
regulations promulgated thereunder, as they may exist or may be amended from time to time, or any successor to such section. 

“Section 422” shall mean §422 of the Code, any rules or regulations promulgated thereunder, as they may
exist or may be amended from time to time, or any successor to such section. 
 “Separation from Service”
and “Separate from Service” shall mean the Participant’s death, retirement or other termination of employment or service with the Company (including all persons treated as a single employer under
Section 414(b) and 414(c) of the Code) that constitutes a “separation from service” (within the meaning of Section 409A). For purposes hereof, the determination of controlled group members shall be made pursuant to the provisions
of Section 414(b) and 414(c) of the Code; provided that the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it appears in Section 1563(a)(1), (2) and (3) of the Code
and Treas. Reg. § 1.414(c)-2; provided, further, where legitimate business reasons exist (within the meaning of Treas. Reg. § 1.409A-1(h)(3)), the language “at least 20 percent” shall be used instead of “at least 80
percent” in each place it appears. 
 “Specified Employee” means a key employee (as defined in
Section 416(i) of the Code without regard to paragraph (5) thereof) of the Company as determined in accordance with Section 409A and the procedures established by the Company. 

“Stock Appreciation Right” shall mean an Award of a right to receive (without payment to Armstrong Energy, Inc.)
cash, Common Shares, Other Armstrong Energy Securities or property, or other forms of payment, or any combination thereof, as determined by the Committee, based on the increase in the value of the number of Common Shares specified in the Stock
Appreciation Right. Stock Appreciation Rights are subject, in part, to the terms, conditions and restrictions described in Section 7. 
 “Stock Option” shall mean an Award of a right to purchase Common Shares. The term Stock Option shall include Nonqualified Stock Options and Incentive Stock Options. 

“Ten Percent Employee” shall mean an employee of Armstrong Energy, Inc. or any parent or subsidiary of Armstrong
Energy, Inc. who owns stock representing more than ten percent of the voting power of all classes of stock of Armstrong Energy, Inc. or any parent or subsidiary of Armstrong Energy, Inc. within the meaning of Code Sections 424(e) and (f).

 “Treasury Regulation” shall mean a final, proposed or temporary regulation of the Department of
Treasury under the Code and any successor regulation. 

  
 19

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