Document:

Exhibit
10.6

 

FIFTH
AMENDMENT TO CREDIT AGREEMENT

 

THIS FIFTH
AMENDMENT TO CREDIT AGREEMENT, dated as of                     ,
2008 (this “Amendment”), is made by and among RHINO ENERGY
LLC, a Delaware limited liability company formerly known as CAM
Holdings LLC (the “Borrower”), EACH OF THE GUARANTORS
(as hereinafter defined), the LENDERS  PARTY HERETO, and PNC BANK, NATIONAL
ASSOCIATION, in its capacity as administrative agent for the Lenders
under this Agreement (hereinafter referred to in such capacity as the “Agent”).

 

WITNESSETH:

 

WHEREAS, the
Borrower, the Guarantors (as defined therein), the Lenders (as defined
therein), and the Agent are parties to that certain Credit Agreement, dated as
of August 30, 2006, as amended by that certain First Amendment to Credit
Agreement, dated as of December 28, 2006, as amended by that certain
Second Amendment to Credit Agreement and Consent, dated as of March 8,
2007, as amended by that certain Third Amendment to Credit Agreement, dated as
of February 29, 2008, as amended by that certain Fourth Amendment to
Credit Agreement, dated as of May 15, 2008 (as so amended and as the same
may be further amended, modified or supplemented from time to time, the “Credit
Agreement”);

 

WHEREAS,
capitalized terms used herein and not otherwise defined herein and defined in
the Credit Agreement shall have the meanings assigned to them in the Credit
Agreement;

 

WHEREAS,
Wexford Capital LLC and various affiliates thereof (the “Wexford Investors”)
hold 100% of the member interests of the Borrower, and the Wexford Investors
pledged such member interests to the Agent, on behalf of the Lenders, pursuant
to that certain Pledge Agreement dated August 30, 2006 (the “Pledge
Agreement”);

 

WHEREAS, the
Wexford Investors propose to transfer, pursuant to a series of transfers
(collectively, the “Borrower Equity Transfer”), all of the member
interests in the Borrower (which transfers shall be made subject to the lien
created by the existing Pledge Agreement) such that after giving effect to the
Borrower equity Transfer all of the member interests in the Borrower shall be
owned by the following Persons (collectively, the “Restated Pledgors”): (i) Rhino
Resources, Inc. (“Resources”), an entity indirectly owned by the
Wexford Investors,  (ii) [Wexford
Offshore CAM Preferred Corp.], an entity indirectly owned by certain Wexford
Investors, and (iii)  [Wexford Offshore CAM Common Corp.], an entity
indirectly owned by certain Wexford Investors;

 

WHEREAS, the
above restructuring is done in contemplation of the initial public offering by
Resources of up to 25% of its equity interest (the “IPO”); and

 

WHEREAS, the
Loan Parties now request that the Required Lenders agree to the amendments to
the Credit Agreement, consents and approvals set forth herein, and the Required
Lenders are willing to accommodate the request of the Loan Parties, subject to
and on the terms and conditions set forth herein.

 

 

NOW,
THEREFORE, the parties hereto, in consideration of their mutual covenants and
agreements hereinafter set forth and intending to be legally bound hereby,
covenant and agree as follows:

 

1.             New
Definitions.  Section 1.1
[Certain Definitions] of the Credit Agreement is hereby amended to insert the
following new definitions in the appropriate alphabetical order therein:

 

“Fifth
Amendment shall mean that certain Fifth Amendment to Credit Agreement,
dated as of
                  ,
2008, among the Borrower, the Guarantors, the Lenders party thereto and the
Agent.”

 

“Fifth Amendment
Effective Date shall mean the effective date of the Fifth Amendment in
accordance with its terms.”

 

“Holdings
shall mean Rhino Energy Holdings LLC, a
                
limited liability company.”

 

“Resources
shall mean Rhino Resources, Inc., a Delaware corporation.”

 

2.             Amendment of Section 1.1 [Certain Definitions].  The definition of the term “Change of Control”
contained in Section 1.1 of the Credit Agreement is hereby amended and
restated in its entirely to read as follows:

 

“Change
of Control shall mean that Wexford Capital LLC and any fund owned or
managed by Wexford Capital LLC (collectively, “Wexford”) and Terry N. Coleman,
collectively: (i) directly or indirectly fail to control the Borrower, (ii) shall
fail to own directly or indirectly, 51% of any class of the voting member
interests of the Borrower and 51% of the economic ownership of the Borrower or (iii) shall
make any public sale of the member interests of the Borrower.  Control, as used in this definition, shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.”

 

3.             Amendment of Section 8.1.14 [Collateral and
Additional Collateral, Etc.].  Section 8.1.14
of the Credit Agreement is hereby amended by adding after clause (iii) thereof
the following new clause (iv):

 

“(iv)        Notwithstanding anything to the contrary
contained in this Section 8.1.14, the Loan Parties shall not be required
to execute and deliver a Mortgage or an amendment to an existing Mortgage, or
file a Mortgage or an amendment to an existing Mortgage, with respect to any
Property unless the fair market value of such individual Property exceeds
$500,000 or the aggregate fair market value of such Property and all other Properties
not then subject to a Mortgage exceeds $1,000,000.”

 

2

 

4.             Amendment of Clause (iii) of Section 8.1.14
[Collateral and Additional Collateral, Etc.].  Clause (iii) of Section 8.1.14
of the Credit Agreement is hereby amended by deleting the phrase “,
concurrently with such acquisition or creation,” in the third and fourth lines
thereof and adding the following sentence at he end of such clause (iii):

 

“Notwithstanding anything
to the contrary contained in this clause (iii) of Section 8.1.14, the
Loan Parties shall not be required to execute and deliver the documents
referred to above until the date that is five (5) Business Days after the
date on which such new Subsidiary first acquires any Property or assets that
would constitute Collateral and such Properties or assets have a value in
excess of $500,000.”

 

5.             Amendment of Section 8.2.5 [Dividends
and Related Distributions].  Section 8.2.5(iii) of the Credit
Agreement is hereby amended and restated in its entirely to read as follows:

 

“(iii)        other dividends and
distributions payable by the Borrower to its members in excess of the Tax
Distributions in the aggregate amount of up to $15,000,000 per fiscal year, provided,
however, that:  (A) the
Borrower shall deliver to the Agent at least five (5) Business Days before
such proposed dividend or distribution a certificate of the Borrower in
substantially the form of Exhibit 8.3.4 demonstrating that the
Borrower shall have, after giving effect to any such proposed dividend or
distribution, at least $25,000,000 of Availability, and (B) at the time of
any such dividend or distribution, no Event of Default or Potential Default
shall exist or shall result after giving effect thereto.” [Note:
language that was deleted effectively took away the concept added above that
Company would have the right to might $15 million of distributions over and
above Tax Distributions]

 

6.             Amendment of Section 11.18 [Joinder of
Guarantors].  The last sentence of Section 11.18 of
the Credit Agreement is hereby amended and restated in its entirely to read as
follows:

 

“The Loan Parties shall
deliver such Guarantor Joinder and related documents within five (5) Business
Days after the date on which such Subsidiary first acquires any Property or
assets that would constitute Collateral and such Properties or assets have a
value in excess of $500,000.”

 

7.             Waiver
re Prepayment.  Effective as of the
Fifth Amendment Effective Date, the Agent and the Required Lenders hereby waive
the restrictions on the prepayment date imposed by clause (c)(ii) of Section 5.4.1
to the extent necessary to enable the Borrower to apply funds received by it
representing proceeds of the IPO to the prepayment of the Loans on or about the
date of the closing of the IPO.

 

8.             Consent
to Borrower Equity Transfer. 
Effective as of the Fifth Amendment Effective Date, the Agent and the
Required Lenders consent to the Borrower Equity Transfer.

 

3

 

9.             Lien
Termination Statements.   Effective as of the Fifth Amendment Effective
Date, the Agent and the Required Lenders hereby agree that (i) the UCC-1
financing statements filed against each member of the Borrower that was a
signatory to the Pledge Agreement shall be deemed terminated and (ii) each
such member, the Borrower and the Borrower’s counsel are authorized to file
UCC-3 financing statements terminating such UCC-1 financing statements.

 

10.           Conditions
to Effectiveness.  The foregoing
amendments contained in this Amendment shall have an effective date and this
Amendment shall be dated the date upon which each of the following conditions
has been satisfied to the satisfaction of the Agent (the “Fifth Amendment
Effective Date”):

 

(a)           Execution
and Delivery of Fifth Amendment.  The
Borrower, the other Loan Parties, the Required Lenders, and the Agent shall
have executed this Amendment, and all other documentation necessary for
effectiveness of this Amendment shall have been executed and delivered all to
the satisfaction of the Agent.

 

(b)           Execution
and Delivery of an Amended and Restated Pledge Agreement.  The Restated Pledgors shall have executed and
delivered to the Agent for the benefit of the Lenders an amended and restated
Pledge Agreement (the “Amended and Restated Pledge Agreement”), in the
form of Exhibit A attached hereto, and such Amended and Restated
Pledge Agreement shall be ratified by the Borrower.

 

(c)           Execution
and Delivery of Updates to Schedule 6.1.2 [Capitalization].  The Required Lenders shall have received an
updated Schedule 6.1.2 [Capitalization] to the Credit Agreement in form
satisfactory to the Agent.

 

(d)           Delivery
of Secretary’s Certificate.  The
Secretary or Assistant Secretary of each Restated Pledgor shall have delivered
to the Agent for the benefit of the Lenders a certificate, dated as of the date
hereof and signed by such Secretary or Assistant Secretary, certifying as to:

 

(i)            all action taken by
such Restated Pledgor in connection with the Amended and Restated Pledge
Agreement, any other Loan Document and this Amendment;

 

(ii)           the names of the
officer or officers of such Restated Pledgor authorized to sign the Amended and
Restated Pledge Agreement, other documents executed in connection therewith and
any other Loan Documents, and the true signatures of such officer or officers
and specifying the officer authorized to act on behalf of such Restated Pledgor
for purposes of the Amended and Restated Pledge Agreement and any other Loan
Documents and the true signatures of such officers, on which the Agent and each
Lender may conclusively rely; and

 

(iii)          copies of the
organizational documents of such Restated Pledgor, including its certificate of
incorporation and bylaws as in effect on the date hereof, certified by the
appropriate state official where such documents are filed in a state office
together with certificates from the appropriate state officials as to the
continued existence and good standing of 
such Restated Pledgor in each state where organized, all of which shall
be reasonably satisfactory to the Agent.

 

4

 

(e)           Representations
and Warranties; No Event of Default. 
The representations and warranties contained in Section 6 of the
Credit Agreement and this Amendment, and of each Loan Party in each of the other
Loan Documents, are true and correct on and as of the Fifth Amendment Effective
Date with the same effect as though such representations and warranties had
been made on and as of such date (except representations and warranties which
relate solely to an earlier date or time, which representations and warranties
were true and correct on and as of the specific dates or times referred to
therein), each of the Loan Parties has performed and complied with all
covenants and conditions hereof and thereof, and no Event of Default or
Potential Default has occurred and is continuing or exists as of the Fifth
Amendment Effective Date; and by its execution and delivery of this Amendment,
the Borrower and each other Loan Party certifies to each such effect.

 

(f)            Legal
Details.  All legal details and
proceedings in connection with the transactions contemplated by this Amendment
and the other Loan Documents are in form and substance satisfactory to the
Agent and counsel for the Agent, and the Agent has received all such other
counterpart originals or certified or other copies of such documents and
proceedings in connection with such transactions, in form and substance
satisfactory to the Agent and its counsel, as the Agent or its counsel may
reasonably request.

 

11.           Representations
and Warranties.  By its execution and
delivery of this Amendment to the Agent, the Borrower and each of the other
Loan Parties represents and warrants to the Agent and the Lenders as follows:

 

(a)           Authorization,
Etc.  Each Loan Party has duly
authorized, executed and delivered this Amendment.

 

(b)           Material
Adverse Change.  After giving effect
to this Amendment, no Material Adverse Change shall have occurred with respect
to the Borrower or any of the other Loan Parties since the Closing Date of the
Credit Agreement.

 

(c)           Litigation.  After giving effect to this Amendment, there
are no actions, suits, investigations, litigation or governmental proceedings
pending or, to the Borrower’s or any other Loan Party’s knowledge, threatened
against any of the Loan Parties that could reasonably be expected to result in
a Material Adverse Change.

 

12.           Miscellaneous.

 

(a)           Full
Force and Effect.  All provisions of
the Credit Agreement remain in full force and effect on and after the Fifth
Amendment Effective Date and the date hereof except as expressly amended
hereby.  The parties do not amend any
provisions of the Credit Agreement except as expressly amended hereby.

 

(b)           Counterparts.  This Amendment may be signed in counterparts
(by facsimile transmission or otherwise) but all of which together shall
constitute one and the same instrument.

 

(c)           Incorporation
into Credit Agreement.  This
Amendment shall be incorporated into the Credit Agreement by this
reference.  All representations,
warranties, Events of Default and 

 

5

 

covenants set forth herein shall be a part of the Credit Agreement as
if originally contained therein.

 

(d)           Governing Law.  This Amendment shall be deemed to be a
contract under the Laws of the Commonwealth of Pennsylvania and for all
purposes shall be governed by and construed and enforced in accordance with the
internal laws of the Commonwealth of Pennsylvania without regard to its
conflict of laws principles.

 

(e)           No Novation.  Except as amended hereby, all of the terms
and conditions of the Credit Agreement and the other Loan Documents shall
remain in full force and effect.  The
Borrower, the other Loan Parties, each Lender, and the Agent acknowledge and agree
that this Amendment is not intended to constitute, nor does it constitute, a
novation, interruption, suspension of continuity, satisfaction, discharge or
termination of the obligations, loans, liabilities, or indebtedness under the
Credit Agreement or the other Loan Documents.

 

[SIGNATURE PAGES
FOLLOW]

 

6

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

IN
WITNESS WHEREOF, the parties hereto, by their officers thereunto duly
authorized, have executed this Fifth Amendment as of the day and year first
above written.

 

	
  ATTEST:

  	
  RHINO ENERGY LLC,
  a Delaware limited

  
	
   

  	
  liability company

  

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  CAM
  MINING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  CAM-BB
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  CAM-KENTUCKY
  REAL ESTATE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  RHINO
  NORTHERN HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  CAM
  COAL TRADING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  LEESVILLE
  LAND, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  CAM
  AIRCRAFT LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  HOPEDALE
  MINING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  CAM-OHIO
  REAL ESTATE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  SPRINGDALE
  LAND, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  CAM-COLORADO
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  TAYLORVILLE
  MINING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  CLINTON STONE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  McCLANE CANYON MINING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  RHINO COALFIELD SERVICES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  RHINO RECLAMATION SERVICES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  SANDS HILL MINING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  RHINO SERVICES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

	
   

  	
  DEANE MINING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  RESERVE HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  RHINO TRUCKING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  individually and as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  THE HUNTINGTON NATIONAL BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  L. Blair DeVan

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  David M. Metz

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  RAYMOND JAMES BANK, FSB, individually

  and as Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  ROYAL  BANK OF CANADA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  UNION BANK OF CALIFORNIA, N.A.,

  individually and as Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

EXHIBIT A

 

Form of Amended and Restated Pledge Agreement

 

 

[SIGNATURE
PAGE - FIFTH AMENDMENT TO CREDIT AGREEMENT]

 

 

	
   

  	
  WACHOVIA  BANK, NATIONAL

  ASSOCIATION, individually and as Co-

  Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Jonathan R. Richardson

  
	
   

  	
  Title:

  	
  Vice PresidentExhibit 10.9

 

 

EMPLOYMENT
AGREEMENT

 

by and
among

 

RHINO
RESOURCES, INC.

 

RHINO
ENERGY LLC

 

and

 

NICHOLAS
R. GLANCY

 

 

Effective Date:                   ,
2008

 

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”)
is made and entered into as of the dates written below, dated effective as of
the      th day of                     ,
2008 (the “Effective Date”), by and among (i) Rhino
Resources, Inc., a Delaware corporation (the “Company”), (iii) Rhino Energy LLC, a Delaware limited
liability company (“Rhino”), and (iii) Nicholas
R. Glancy (“Executive”) and joined in by Rhino GP, LLC, a
Delaware limited liability company (“Rhino GP”) for the sole purpose set forth
in the last sentence of Paragraph 1 hereof.

 

Recitals:

 

Executive is currently
employed by Rhino pursuant to an Amended and Restated Employment Agreement
dated March 31, 2008 among Rhino, Rhino GP and Executive (the “Prior
Agreement”).  The Company desires to have
the Executive become an employee of the Company upon the completion of an initial
public offering of common stock of the Company, (the “Offering”) the completion
upon which the Company will directly and indirectly will own all of the
interests in Rhino.  Rhino desires to
continue the employment of Executive until such time as Executive becomes an
employee of the Company as provided above or until the end of the Employment
Term, as defined below, if the Offering does not occur.  For purposes of this Agreement, the term “Employer”
shall mean the entity (Rhino or the Company) employing Executive at the
applicable time.  The Company and Rhino
desire to enter into this Agreement in order to amend and restate the terms of
Executive’s employment.  Executive
desires to enter into this Agreement, and Executive is willing to accept
employment on the terms hereinafter set forth in this Agreement.

 

Agreement:

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants herein and for other good
and valuable consideration, the parties hereby agree as follows:

 

1.                                       Term of Employment.  Unless
terminated earlier in accordance with the provisions of Section 7,
Executive’s employment under this Agreement shall be effective for a term
commencing on the Effective Date and ending on May 31, 2011 (the “Employment
Term”).  From the Effective Date until
the closing of the Offering, should it occur, Executive shall be employed by
Rhino.  Upon the closing of the Offering,
Executive shall become an employee of the Company; provided, however, that any
obligations or references specifically applicable to Rhino (as opposed to just
the Employer) herein shall remain in effect. 
Upon the parties’ execution and delivery of this Agreement, the Prior
Agreement shall be deemed voided by this Agreement and is hereby declared null
and void, ab initio.

 

2.                                       Position and Duties.  As of
the Effective Date, Executive shall serve as the President and Chief Executive
Officer of the Company and Rhino, and Chief Executive Officer of the
subsidiaries of the Company and Rhino. 
In such positions, Executive shall report directly to the Chairman of
Rhino of the Board of Directors of the Company (the “Board”) and, upon the
completion of the Offering, to the Board. Executive shall have the customary
authority, responsibilities and duties of such position(s), subject to the
direction and definition of such authority, responsibilities, and duties from
time to time set by the Board of the Company or the

 

 

Manager of Rhino, as applicable.  During the Employment Term, Executive will
devote all of his business time and efforts to the performance of his duties
hereunder.  Executive may (i) with
the prior approval of the Chairman of the Board or Manager of Rhino, as
applicable, serve as a director or trustee of up to three (3) corporate or
charitable entities as well as trade associations related to the natural
resources industry, and (ii) manage his personal investments, to the
extent that such activities do not materially inhibit or materially interfere
with the performance of Executive’s duties under this Agreement.  Executive shall be subject to all of the
employment and personnel policies and procedures in effect from time to time
and applicable to executive employees of Employer.  Executive’s regular place of employment
during the Employment Term shall be at the Employer’s executive offices in
Lexington, Fayette County, Kentucky, and Executive shall engage in such travel
as may be reasonably required in connection with the performance of his duties
hereunder.

 

3.                                       Base Salary.  The
Employer shall pay Executive a base salary (the “Base Salary”) at the annual
rate of $385,000 per year, through May 31, 2009, $395,000 per year through
May 31, 2010 and thereafter $405,000 per year, all payable in regular
installments in accordance with the usual executive payroll practices of the
Employer.  Executive’s Base Salary and
other compensation may be processed and paid through Rhino.

 

4.                                       Incentive Compensation. 
Executive shall be permitted to participate in any annual or long-term,
cash or equity based, incentive plan or other similar arrangements of the
Employer, as they may exist from time-to-time, for which Executive is eligible
pursuant to the terms of such plan or arrangement.

 

5.                                       Discretionary Bonus.  The
Employer may consider and approve an annual performance-based discretionary
bonus (“Discretionary Bonus”) for Executive of up to forty percent (40%) of
Executive’s Base Salary.  The
Discretionary Bonus will be on a calendar year basis for all of 2008, 2009 and
2010.  The Discretionary Bonus for the
period January 1, 2011 through the end of the Employment Term will be
pro-rated for the partial year.  A
Discretionary Bonus shall be considered separate from any other form of
compensation contained under this Agreement, including Base Salary.  Any Discretionary Bonus approved by the
Employer shall be paid to Executive within seventy-five (75) days of the end of
the calendar year to which it relates, with the final Discretionary Bonus
determined and paid on the last day of the Employment Term.

 

6.                                       Other Benefits.

 

(a)                                  Retirement Benefits. 
During the Employment Term, Executive shall be provided with the
opportunity to participate in the Employer’s qualified 401(k) profit
sharing plan and non-qualified deferred compensation plan (if any), as they may
exist from time to time, in each case, in accordance with the terms of such
plans.

 

(b)                                 Welfare Benefits; Vacation. 
During the Employment Term, Executive shall be provided with the
opportunity to participate in the Employer’s medical plan and other employee
welfare benefits on a comparable basis as such benefits are generally provided
by the Employer from time to time to Employer’s other executives, in each case,
in accordance with the terms of such plans; provided, however, the premiums for
all such plans shall be paid by the

 

2

 

Employer. 
Executive shall be entitled to three (3) weeks of paid vacation
each year during the Employment Term.

 

(c)                                  Indemnification. 
Subject to the Company’s bylaws, the Company and Rhino shall indemnify
and hold harmless Executive from and against any loss, cost, damage, expense,
or liability incurred by Executive for any action taken by Executive in the
scope of Executive’s employment for the Employer, provided such action (i) is
within the scope, duties, and authority of Executive, (ii) is not in
willful violation of any law, regulation, or code of conduct adopted by the
Employer, and (iii) does not constitute gross negligence or intentional
misconduct by Executive.  The obligations
of the Company and Rhino under this Section 6 (c) shall survive the termination of this Agreement.  If there is any conflict between this Section 6(c) and
the Company’s bylaws, the Company’s bylaws shall control.

 

(d)                                 Reimbursement of Business Expenses. 
During the Employment Term, all reasonable business expenses incurred by
Executive in the performance of his duties hereunder shall be reimbursed by the
Employer upon receipt of documentation of such expenses in a form reasonably
acceptable to the Employer, and otherwise in accordance with the Employer’s expense
reimbursement policies.  Any
reimbursement of any costs and expenses by the Employer to Executive under this
Agreement shall be made by the Employer in no event later than the close of
Executive’s taxable year following the taxable year in which the cost or
expense is incurred by Executive.  The
expenses incurred by Executive in any calendar year that are eligible for
reimbursement under this Agreement shall not affect the expenses incurred by
Executive in any other calendar year that are eligible for reimbursement
hereunder and Executive’s right to receive any reimbursement hereunder shall
not be subject to liquidation or exchange for any other benefit.

 

(e)                                  Continuing Legal Education.  The
Employer shall pay or reimburse Executive for the reasonable costs and expenses
of continuing legal education necessary for Executive to maintain Executive’s
compliance with the rules and requirements of the Kentucky Supreme Court.

 

(f)                                    Rhino Benefits.  To
the extent the Company does not have employee benefits or benefit plans called
for or referred to under this Agreement, and which are available to employees
of Rhino, Executive shall be a part of and have the rights, privileges and
benefits under any employee benefits or benefit plans maintained by Rhino to
the extent he would have been entitled to the same as an employee of Rhino.

 

7.                                       Termination. 
Notwithstanding any other provision of this Agreement:

 

(a)                                  For Cause by the Employer or Voluntary
Resignation by Executive Without Good Reason.  If Executive is terminated by
the Employer for Cause (as defined in Section 12(d)) or if Executive
voluntarily resigns without Good Reason (as defined in Section 12(j)),
Executive shall be entitled to receive as soon as reasonably practicable after
his date of termination or such earlier time as may be required by applicable
statute or regulation: (i) any earned but unpaid Base Salary through the
date of termination; (ii) payment in respect of any vacation days accrued
but unused through the date of termination; and (iii) reimbursement for
all business expenses properly incurred in accordance with the Employer’s
policy prior to the date

 

3

 

of termination and not yet reimbursed by the
Employer (the aggregate benefits payable pursuant to clauses (i), (ii), and (iii) hereafter
referred to as the “Accrued Obligations”); and except as provided herein
Executive shall have no further rights to any compensation (including any Base
Salary or bonus, if any) or any other benefits under this Agreement.  All other accrued and vested benefits, if
any, due Executive following termination of employment shall be determined and
paid in accordance with the plans, policies, and practices of the Company or
Rhino, as applicable.

 

(b)                                 Without Cause by the Employer or Voluntary
Resignation by Executive for Good Reason.  If Executive is terminated by
the Employer other than for Cause, Disability (as defined in Section 12(g))
or death, or if Executive voluntarily resigns for Good Reason, Executive shall
receive:  (i) the Accrued
Obligations; and (ii) subject to Section 7(f) and Section 7(h),
Base Salary for a period of twelve (12) months from the termination of
employment, payable in a lump sum as provided in Section 7(f).  Except as provided herein, Executive shall
have no further rights to any compensation (including any Base Salary) or any
other benefits under this Agreement.  All
other accrued and vested benefits, if any, due Executive following termination
of employment pursuant to this Section 7(b) shall be determined in
accordance with the plans, policies and practices of the Company or Rhino, as
applicable.

 

(c)                                  Death.  Following termination of
employment for death, Executive’s estate shall be entitled to receive the
Accrued Obligations.  Except as provided
herein, Executive’s estate shall have no further rights to any compensation
(including any Base Salary) or any other benefits under this Agreement.  All other accrued and vested benefits, if
any, due Executive following a termination of employment for death shall be
determined in accordance with the plans, policies, and practices of the Company
or Rhino, as applicable.

 

(d)                                 Disability.  Following termination of
employment for Disability, Executive shall be entitled to receive the Accrued
Obligations.  Except as provided herein,
Executive shall have no further rights to any compensation (including any Base
Salary) or any other benefits under this Agreement.  All other accrued and vested benefits, if
any, due Executive following a termination of employment for Disability shall
be determined in accordance with the plans, policies, and practices of the
Company or Rhino, as applicable.

 

(e)                                  No Mitigation or Offset.  In no
event shall the benefits set forth in this Section 7 be subject to
mitigation or offset.

 

(f)                                    Release.  Notwithstanding any other
provision of this Agreement to the contrary, Executive acknowledges and agrees
that any and all payments to which Executive is entitled under this Section 7
which are described as being subject to this Section 7(f) are
conditioned upon and subject to Executive’s execution of, and not having
revoked within any applicable revocation period, a general release and waiver,
in such reasonable and customary form as shall be prepared by the Employer, of
all claims Executive may have against the Employer and its directors, officers,
subsidiaries and affiliates, except as to (i) matters covered by
provisions of this Agreement that expressly survive the termination of this
Agreement or are covered by the grant referred to in Section 9 hereof, and
(ii) rights to which Executive is entitled by virtue of his participation
in the employee benefit plans, policies and arrangements of the Company or
Rhino, as applicable.  Unless such
release becomes irrevocable within 55 days of

 

4

 

Executive’s termination of employment,
Executive shall not be entitled to any severance benefits that are described as
being subject to this Section 7(f). 
If the release has become irrevocable within such 55-day period, the
Employer shall pay such severance benefits to Executive within 60 days of his
termination of employment.

 

(g)                                 Resignation.  Upon
Executive’s termination of employment for any reason, Executive shall be deemed
to have immediately resigned from all offices and boards, with the Employer and
any of the Employer’s subsidiaries or affiliates and shall, immediately upon
the request of the Employer, confirm such resignations in writing.

 

(h)                                 Section 409A Delay in Payment. 
Notwithstanding anything in this Agreement to the contrary, if at the
time of Executive’s termination of employment with the Employer, Executive is a
“specified employee,” as defined in Section 409A of the Code, and the
deferral of the commencement of any severance benefits otherwise payable under
this Agreement as a result of such termination of employment is necessary in
order to avoid the additional tax under Section 409A of the Code, then the
Employer will defer the payment of any such severance payments until the date
that is six months following Executive’s termination of employment with the
Employer (or the earliest date as is permitted under Section 409A of the
Code).  Any payment deferred pursuant to
this Section 7(h) will be accumulated and paid to Executive (without
interest) in a lump sum.

 

(i)                                     Termination of Employment.  For
purposes of this Agreement, a termination of Executive’s employment means a “separation
from service” for purposes of Section 409A of the Code and the applicable
Treasury regulations thereunder.

 

8.                                       Covenants.

 

(a)                                  Confidentiality. 
Executive agrees that Executive will not at any time during Executive’s
employment with the Employer or thereafter, except in performance of Executive’s
duties for and obligations to the Employer hereunder, use or disclose, either
directly or indirectly, any Confidential Information (as hereinafter defined)
of the Employer or its subsidiaries or affiliates that Executive may learn by
reason of his association with the Employer. 
The term “Confidential Information” shall mean any past, present, or
future confidential or sensitive plans, programs, documents, agreements,
internal management reports, financial information, or other material relating
to the business, strategies, services, or activities of the Employer,
including, without limitation, information with respect to the Employer’s
operations, processes, products, inventions, business practices, finances,
principals, vendors, suppliers, customers, potential customers, marketing
methods, costs, prices, contractual relationships, including leases, regulatory
status, compensation paid to employees, or other terms of employment, and trade
secrets, market reports, customer investigations, customer lists, and other
similar information that is proprietary information of the Employer or its
subsidiaries or affiliates; provided, however, the term “Confidential
Information” shall not include any of the above forms of information which has
become public knowledge, unless such Confidential Information became public
knowledge due to an act or acts by Executive or his representative(s) in
violation of this Agreement. 
Notwithstanding the foregoing, Executive may disclose such Confidential
Information when required to do so by a court of competent jurisdiction, by any
governmental agency having supervisory authority over the business of the
Employer or its

 

5

 

subsidiaries or affiliates, as the case may
be, or by any administrative body or legislative body (including a committee
thereof) with jurisdiction to order Executive to divulge, disclose or make
accessible such information; provided, further, that in the event that
Executive is ordered by any such court or other government agency,
administrative body, or legislative body to disclose any Confidential
Information, Executive shall (i) promptly notify the Employer of such
order, (ii) at the reasonable written request of the Employer, diligently
contest such order at the sole expense of the Employer as expenses occur, and (iii) at
the reasonable written request of the Employer, seek to obtain, at the sole
expense of the Employer, such confidential treatment as may be available under
applicable laws for any information disclosed under such order.

 

(b)                                 Non-Compete. 
During the Employment Term and for one (1) year immediately
following a termination of employment for any reason, other than a termination
by Employer without Cause or a resignation by Executive with Good Reason,
Executive shall not, without the prior written consent of the Employer, participate
or engage in, directly or indirectly (as an owner, partner, employee, officer,
director, independent contractor, consultant, advisor or in any other capacity
calling for the rendition of services, advice, or acts of management, operation
or control) any business for an individual or entity whose principal business
involves coal mining or coal marketing in the following regions: Central
Appalachia, Northern Appalachia, Illinois Basin, Western Colorado, and any
other region in which the Employer or any of the Employer’s subsidiaries
conduct business.  Provided, however,
that nothing contained in this Section 8(b) shall prohibit Executive
from engaging in the private practice of law subsequent to Executive’s
termination of employment (including the outside representation of coal
companies), subject in all cases to the confidentiality obligations of Section 8(a).

 

(c)                                  Non-Solicitation. 
During the Employment Term and for two (2) years immediately
following a termination of Employment for any reason, Executive shall not,
without the prior written consent of the Employer, solicit or induce any
then-existing employee of the Employer or any of its subsidiaries to leave
employment with the Employer or any of its subsidiaries, or contact any
then-existing customer or vendor under contract with the Employer or any of its
affiliates or subsidiaries for the purpose of obtaining business similar to
that engaged in, or received (as appropriate), by the Employer.

 

(d)                                 Cooperation. 
Executive agrees that during the Employment Term or following a
termination of employment for any reason, Executive shall, upon reasonable
advance notice, assist and cooperate with the Employer with regard to any
investigation or litigation related to a matter or project in which Executive was
involved during Executive’s employment. 
The Employer shall reimburse Executive for all reasonable and necessary
expenses related to Executive’s services under this Section 8(d) (i.e.,
travel, lodging, meals, telephone, overnight courier) within ten (10) business
days of Executive submitting to the Employer appropriate receipts and expense
statements.

 

(e)                                  Survivability.  The
duties and obligations of Executive pursuant to this Section 8 shall
survive the termination of this Agreement and Executive’s termination of
employment for any reason.

 

(f)                                    Remedies.  Executive acknowledges that the
protections of the Employer set forth in this Section 8 are fair and
reasonable, and that any violation of such protections

 

6

 

would cause serious and irreparable harm and
damage to the Employer and its subsidiaries and affiliates.  Executive agrees that remedies at law for a
breach or threatened breach of the provisions of this Section 8 would be
inadequate and, therefore, the Employer shall be entitled, in addition to any
other available remedies (including money damages), without posting a bond, to
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction, or any other equitable remedy that
may be then available.

 

(g)                                 Limitation.  The terms of this Section 8
are intended to limit disclosure and competition by the Executive to the
maximum extent permitted by law.  If the
duration, scope, or nature of any limitation or restriction imposed by any
provision of this Section 8 is finally determined by any court or tribunal
of competent jurisdiction to be in excess of what is valid and enforceable
under applicable law, such provision shall be construed to cover only that duration,
scope or activity that is valid and enforceable.  Executive hereby acknowledges that this Section 8
shall be given the construction which renders its provisions valid and
enforceable to the maximum extent, not exceeding its express terms, possible
under applicable law.

 

9.                                       Offering Incentives.  By a
grant separate from this document, the Employer shall grant to Executive
certain stock in the Company upon, and subject to, the closing of the Offering
on terms acceptable to the Company in its sole discretion.  The terms of such grant shall be determined
by the Company, but shall have a value of $1,800,000 upon the closing of the
Offering, based upon the issuance price of stock or units in such Offering.  In addition to the foregoing, in the event an
Offering is completed, the Employer shall pay to the Executive, within [      ]
days after the completion of the offering, a one-time cash bonus of
$250,000.  Nothing herein shall require
the Company to complete any Offering.

 

10.                                 Representations of Executive. 
Executive hereby represents to the Employer that Executive has full
lawful right to enter into this Agreement and carry out Executive’s duties
hereunder, and that performance of Executive’s obligations hereunder will not
constitute a breach of or default under any employment, confidentiality,
non-competition or other agreement. 
Executive further represents to the Employer that Executive is not
listed in the Office of Surface Mining’s Applicant Violator System
database.  Executive shall provide prompt
notice to the Employer of Executive’s first employment subsequent to a
termination of employment.

 

11.                                 Miscellaneous.

 

(a)                                  Satisfaction of Obligations Under Prior
Agreement; Term Bonus.  The Company, Rhino and Executive hereby
acknowledge that this Agreement amends, restates and supersedes the Prior
Agreement.  Notwithstanding the
foregoing, Executive remains entitled to the Term Bonus set out in the Prior
Agreement; provided, however, the full amount of such Term Bonus ($566,666),
subject to proper tax withholdings shall be paid upon by the Employer on November 1,
2008.  If Executive’s employment is
terminated without Cause prior to payment of such Term Bonus, the Term Bonus
shall be pro-rated as provided in the Prior Agreement.

 

(b)                                 Resolution of Disputes.  Except (i) as otherwise provided in Section 11(d) or
(ii) in the event of any action by the Employer to enforce the provisions
of Section 8 of this Agreement, the Employer and Executive agree that any
controversy or claim arising out of or relating to this Agreement or the breach
thereof shall be settled by arbitration administered by

 

7

 

the American Arbitration Association in
accordance with its Commercial Arbitration Rules then in effect.  Venue for any arbitration pursuant to this
Agreement will lie in Lexington, Kentucky. 
Any award entered by the arbitrator(s) shall be final, binding and
nonappealable and judgment may be entered thereon by either party in accordance
with applicable law in any court of competent jurisdiction.  This arbitration provision shall be
specifically enforceable.  Each party
shall be responsible for its own expenses relating to the conduct of the
arbitration (including reasonable attorneys’ fees and expenses) and shall share
the fees of the American Arbitration Association and the arbitrator(s), if
applicable, equally.

 

(c)                                  Governing Law.  This
Agreement will be governed by, and interpreted in accordance with, the laws of
the Commonwealth of Kentucky applicable to agreements made and to be wholly
performed within the Commonwealth of Kentucky, without regard to the conflict
of laws provisions of any jurisdiction which would cause the application of any
law other than that of the Commonwealth of Kentucky.  Executive hereby consents to the jurisdiction
of the state and federal courts of the Commonwealth of Kentucky, including the
Fayette Circuit Court, and hereby waives any objection to venue of any action
brought in such courts.

 

(d)                                 Entire Agreement; Amendments.  This
Agreement contains the entire understanding of the parties with respect to the
employment of Executive by the Employer. 
There are no restrictions, agreements, promises, warranties, covenants
or undertakings between the parties with respect to the subject matter herein
other than those expressly set forth or referred to herein.  This Agreement may not be altered, modified,
or amended except by written instrument signed by the parties hereto.  Sections 7 and 8 hereof shall survive the
termination of Executive’s employment with the Employer, except as otherwise
specifically stated therein.

 

(e)                                  Neutral Interpretation.  This
Agreement constitutes the product of the negotiation of the parties hereto and
the enforcement of this Agreement shall be interpreted in a neutral manner, and
not more strongly for or against any party based upon the source of the
draftsmanship of the Agreement.   Each
party has been provided ample time and opportunity to review and negotiate the
terms of this Agreement and consult with legal counsel regarding the Agreement.

 

(f)                                    No Waiver.  The failure of a party to
insist upon strict adherence to any term of this Agreement on any occasion
shall not be considered a waiver of such party’s rights or deprive such party
of the right thereafter to insist upon strict adherence to that term or any
other term of this Agreement.  No waiver
of any term or condition of this Agreement on the part of the Employer shall be
effective for any purpose whatsoever unless such waiver is in writing and
signed by the Chairman of the Board of the Employer.

 

(g)                                 Severability.  In
the event that any one or more of the provisions of this Agreement shall be or
become invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions of this Agreement shall not be
affected thereby.

 

8

 

(h)                                 Successors.

 

(i)                                     This
Agreement is personal to Executive and shall not be assignable by Executive
otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of
and be enforceable by Executive’s legal representatives.

 

(ii)                                  This
Agreement shall inure to the benefit of and be binding upon Rhino, the Company
and their successors and assigns.  The
Company, or Rhino, as applicable, shall require any successor (whether direct
or indirect, by purchase, merger, reorganization, consolidation, acquisition of
property or stock, liquidation, or otherwise) to all or a substantial portion
of its business and/or assets, by agreement in form and substance reasonably
satisfactory to Executive, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform this Agreement if no such succession had taken place.  Regardless of whether such an agreement is
executed, the Company shall cause this Agreement to be binding upon any
successor of the Company or Rhino and such successor shall be deemed the “Employer”
for purposes of this Agreement.

 

(i)                                     Notice.  For the purpose of this
Agreement, notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given if delivered
personally, if delivered by overnight courier service, if sent by facsimile
transmission or if mailed by United States registered mail, return receipt
requested, postage prepaid, addressed to the respective addresses or sent via
facsimile to the respective facsimile numbers, as the case may be, as set forth
below, or to such other address as either party may have furnished to the other
in writing in accordance herewith, except that notice of change of address
shall be effective only upon receipt; provided, however, that (i) notices
sent by personal delivery or overnight courier shall be deemed given when
delivered; (ii) notices sent by facsimile transmission shall be deemed
given upon the sender’s receipt of confirmation of complete transmission, and (iii) notices
sent by United States registered mail shall be deemed given two days after the
date of deposit in the United States mail.

 

If to the Company or Rhino,
to:

 

Rhino Resources, Inc.

411 W. Putnam Ave.

Greenwich, CT 06830

Attn:  Arthur Amron

 

If to Executive, to such
address as shall most currently appear on the records of the Employer.

 

(j)                                     Withholding.  The
Employer may withhold from any amounts payable under this Agreement such Taxes
(as defined in Section 12(l)) as may be required to be withheld pursuant
to any applicable law or regulation.

 

9

 

(k)                                  Counterparts.  This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

 

(l)                                     Code Section 409A.  It is
intended that any amounts payable under this Agreement and the Employer’s and
Executive’s exercise of authority or discretion hereunder shall comply with
Code Section 409A (including the Treasury regulations and other published
guidance relating thereto) so as not to subject Executive to the payment of any
interest or additional tax imposed under Code Section 409A.  To the extent any amount payable under this
Agreement would trigger the additional tax imposed by Code Section 409A,
the Agreement shall be modified to avoid such additional tax.

 

(m)                               Confidential Terms. 
Executive agrees to maintain as confidential the terms and conditions of
this Agreement, provided however Executive may disclose the terms of this
Agreement to his legal counsel, and accountant or tax preparer, or as may be otherwise
required by law.

 

(n)                                 Waiver of Jury Trial. 
EXECUTIVE HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES THE RIGHT TO A TRIAL
BY JURY WITH REGARD TO ANY ACTION ARISING UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR THE EMPLOYMENT OF THE EXECUTIVE BY THE EMPLOYER.

 

12.                                 Definitions.

 

(a)                                  Accrued Obligations.  “Accrued
Obligations” has the meaning set forth in Section 7(a).

 

(b)                                 Base Salary.   “Base
Salary” has the meaning set forth in Section 3.

 

(c)                                  Board.  “Board” has the meaning set
forth in Section 2.

 

(d)                                 Cause.  “Cause” for termination by the
Employer of Executive’s employment with the Employer means any of the
following:

 

(i)                                     the willful and continued failure of
Executive to perform substantially his duties (other than any such failure
resulting from incapacity due to disability), after a written demand for
substantial performance is delivered to Executive by the Chairman of the Board,
or Manager of Rhino, as applicable, which specifically identifies the manner in
which the Board or Manager believes that Executive has not substantially
performed his duties;

 

(ii)                                  Executive’s conviction of, or plea of guilty
or no contest to (A) a felony or (B) a misdemeanor involving
dishonesty or moral turpitude; or

 

(iii)                               the willful engaging by Executive in any illegal conduct, gross
misconduct, or other material breach of this Agreement which is materially and
demonstrably injurious to the business or reputation of the Employer.

 

10

 

For
purposes of this definition, no act or failure to act, on the part of
Executive, shall be considered “willful” unless it is done, or omitted to be
done, by Executive in bad faith or without reasonable belief that Executive’s
action or omission was in the best interests of the Employer. Any act, or
failure to act, based upon specific authority given pursuant to a resolution
duly adopted by the Board or upon instructions of the Chairman of the Board or
the Manager of Rhino, or based upon the advice of counsel of the Employer which
Executive honestly believes is within such counsel’s competence shall be
conclusively presumed to be done, or omitted to be done, by Executive in good
faith and in the best interests of the Employer.  The Employer shall give written notice to
Executive of the termination for Cause. 
Such notice shall state in detail the particular act or acts of the
failure or failures to act that constitute the grounds on which the Cause
termination is based and such notice shall be given within six (6) months
of the occurrence of, or, if later, the Employer’s actual knowledge of, the act
or acts or the failure or failures to act which constitute the grounds for
Cause.  Executive shall have thirty (30)
days upon receipt of the notice in which to cure such conduct, to the extent such
cure is possible and reasonable.

 

(e)                                  Code.  “Code” means the Internal
Revenue Code of 1986, as amended from time to time.

 

(f)                                    Company.   “Company” means Rhino
Resources, Inc., a Delaware corporation.

 

(g)                                 Disability.   “Disability” means the
inability of Executive to perform his normal duties as a result of any physical
or mental injury or ailment for (i) any consecutive ninety (90)-day period
or (ii) any one hundred eighty (180) days (whether or not consecutive)
during any three hundred sixty five (365) calendar day period.

 

(h)                                 Employment Term.   “Employment
Term” has the meaning set forth in Section 1.

 

(i)                                     Executive.   “Executive” means Nicholas R.
Glancy.

 

(j)                                     Good Reason.  “Good
Reason” for termination by Executive of Executive’s employment means the
occurrence (without Executive’s express written consent) of any one of the
following acts by the Employer or failures by Employer to act:

 

(i)                                     the assignment to Executive of any duties
inconsistent in any material respect with those of the office to which
Executive is assigned pursuant to Section 2 hereof (including status,
office, title and reporting requirements), or any other diminution in any
material respect in such position, authority, duties or responsibilities unless
agreed to by Executive;

 

(ii)                                  a reduction in Base Salary;

 

(iii)                               a reduction in Executive’s welfare benefits plans, qualified retirement
plan, or paid time off benefit; or

 

11

 

(iv)                              any purported termination of Executive’s employment under this
Agreement by the Employer other than for Cause or Disability.

 

Prior
to Executive’s right to terminate this Agreement, he shall give written notice
to the Employer of his intention to terminate his employment on account of Good
Reason.  Such notice shall state in
detail the particular act or acts of the failure or failures to act that
constitute the grounds on which Executive’s Good Reason termination is based
and such notice shall be given within six (6) months of the occurrence of
the act or acts or the failure or failures to act which constitute the grounds
for Good Reason.  The Employer shall have
thirty (30) days upon receipt of the notice in which to cure such conduct, to
the extent such cure is possible and reasonable.

 

(k)                                  Manager.  “Manager” means Wexford
Capital LLC, the Manager of Rhino.

 

(l)                                     Taxes.  “Taxes” mean the incremental
United States federal, state and local income, excise and other taxes payable
by Executive with respect to any applicable item of income.

 

[signature page to follow]

 

12

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
dates written below.

 

 

	
  EXECUTIVE:

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Nicholas
  R. Glancy

  
	
   

  
	
  Date
  signed:

  	
   

  	
   

  
	
   

  
	
   

  
	
  RHINO RESOURCES, INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
  Date
  signed:

  	
   

  	
   

  
	
   

  
	
   

  
	
  RHINO ENERGY LLC

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
  Date
  Signed:

  	
   

  	
   

  
						

 

13

 

	
  RHINO GP, LLC

  
	
   

  
	
  For the sole purpose set forth in Section 1 hereof

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
  Date
  Signed:

  	
   

  	
   

  
						

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}]]