Document:

EXHIBIT 10.19

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Second Amendment to Employment Agreement (“Second
Amendment”) is made and entered into this 10th day of March,
2008 between CAM Mining LLC (“Employer”) and Chad Hunt (“Employee”).

 

RECITALS:

 

A.            Employer and Employee entered into
an Employment Agreement dated September 1, 2006, as amended by a First
Amendment to Employment Agreement dated October 31, 2006 (collectively, the
“Original Agreement”).  Capitalized terms
used herein and not otherwise defined shall have the meanings given to them in
the Original Agreement.

 

B.            The parties now
desire to amend the Original Agreement to extend the Employment Term and revise
Paragraph 2.

 

Now, Therefore, in consideration of the foregoing, Employer
and Employee hereby agree as follows:

 

1.             The date “August 31, 2008” in Paragraph
1 of the Original Agreement, titled “Terms and Duties,” is changed to “August 31,
2010.”  The remaining portion of Paragraph
1 of the Original Agreement shall remain unchanged.

 

2.             The first five sentences of
Paragraph 2 of the Original Agreement, titled “Compensation,” (i.e. the
language beginning with “For Employees services hereunder during the Employment
Term...” and ending with “shall not be reduced below $86,220.00 per year.”) is hereby
deleted in its entirety and replaced with the following language:

 

1

 

For
Employee’s services hereunder during the Employment Term, Employee shall pay to
Employee a salary at the rate of $130,000 per year, payable periodically in
accordance with Employer’s usual executive payroll payment procedures; Employee’
salary shall be reviewed annually.  Employee
shall be eligible for an annual discretionary 
bonus of up to 40% of Employee’s base salary, which bonus shall be
determined by Employer in its sole discretion. 
Such bonus shall be determined and paid within 120 days of the end of
each calendar year of the Employment Term. 
The remaining portion of Paragraph 2 of the Original Agreement shall
remain unchanged.

 

3.             The references to “Employer’s
Chairman” in Paragraphs 11 and 12 of the Original Agreement are hereby deleted
and replaced with “Employer’s Chief Executive Officer or President.”

 

4.             Except as specifically stated
herein, the Original Agreement, shall remain in full force and effect and is
hereby ratified and affirmed.

 

IN WITNESS WHEREOF, the parties have executed
this Second Amendment to Employment Agreement as of the date first above
written.

 

 

	
   

  	
  CAM
  MINING LLC

  
	
   

  	
  “Employer”

  
	
   

  	
   

  
	
   

  	
  /s/
  David G. Zatezalo

  
	
   

  	
  By:
  David G. Zatezalo, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Chad Hunt

  
	
   

  	
  Chad
  Hunt

  
	
   

  	
  “Employee”

  

 

2EXHIBIT 10.20

 

ASSIGNMENT AGREEMENT AND

AMENDMENT TO EMPLOYMENT
AGREEMENT

 

This Assignment Agreement and Amendment to
Employment Agreement (this “Agreement”) is entered into this 26th day of August, 2008 among CAM Mining LLC (“Assignor”),
a Delaware limited liability company, Rhino Energy LLC (“Assignee”), a
Delaware limited liability company, and Chad Hunt (the “Employee”).  Capitalized terms used herein but not
otherwise defined herein shall have the meaning ascribed to them in the Employment
Agreement (as defined below).

 

WHEREAS, the Assignor and the Employee are parties
to an Employment Agreement dated September 1, 2006, as amended by an
Amendment to Employment Agreement dated October 31, 2006 and a Second
Amendment to Employment Agreement dated March 10, 2008 by and between
Assignor and Employee (the “Employment Agreement”);

 

WHEREAS, the Assignee is an affiliate of the Assignor;
and

 

WHEREAS, the Assignor desires to assign all of its
rights and obligations under the Employment Agreement to the Assignee;

 

NOW, THEREFORE, the parties hereto agree as follows:

 

1.             The
Assignor hereby assigns to the Assignee all of the Assignor’s rights and
obligations under the Employment Agreement pursuant to Section 10 of the Employment
Agreement, such assignment to become effective as of the date first set forth
above (the “Effective Date”).   The Assignor acknowledges that this
Assignment shall not relieve the Assignor from its obligations under the Employment
Agreement up to and through the Effective Date.

 

2.             The
Assignee hereby accepts from the Assignor all of the Assignor’s  rights under the Employment Agreement and
undertakes, assumes and agrees to perform, pay and become liable for and
discharge when due all of the Assignor’s liabilities and obligations under the Employment
Agreement accruing from and after the Effective Date.

 

3.             This
Assignment Agreement shall operate as, and constitute an, amendment to the
Employment Agreement pursuant to which Assignee replaces Assignor as the
Employer under the Employment Agreement and Employee ceases to be employed by
Assignor and becomes an employee of Assignee.

 

4.             Employee
hereby (a) acknowledges and accepts the assignment by Assignor to the
Assignee of all of the Assignor’s rights and obligations under the Employment
Agreement with such assignment to be effective as of the Effective Date and (b) acknowledges
that the assignment of Employee’s employment and Assignor’s rights and
obligations under the Employment Agreement shall not cause a termination of Employee’s
employment for purposes of the Employment Agreement.

 

1

 

5.         At the Effective Time,
the Employment Agreement shall be amended as follows:

 

A.            The date “August 31, 2010” in
Paragraph 1 of the Original Agreement, titled “Terms and Duties,” is changed to
“August 31, 2011.”  The remaining
portion of Paragraph 1 of the Original Agreement shall remain unchanged.

 

B.            The first four sentences of
Paragraph 2 of the Original Agreement, titled “Compensation,” (i.e. the
language beginning with “For Employees services hereunder during the Employment
Term...” and ending with “determined and paid within 120 days of the end of each
calendar year of the Employment Term.”) is hereby deleted in its entirety and
replaced with the following language:

 

For
Employee’s services hereunder during the Employment Term, Employee shall pay to
Employee a salary at the rate of $170,000 per year, payable periodically in
accordance with Employer’s usual executive payroll payment procedures; Employee’
salary shall be reviewed annually. 
Employee shall be eligible for an annual discretionary  bonus of up to 40% of Employee’s base salary,
which bonus shall be determined by Employer in its sole discretion.  Such bonus shall be determined and paid
within 120 days of the end of each calendar year of the Employment Term.

 

The
remaining portion of Paragraph 2 of the Original Agreement shall remain
unchanged.

 

C.            Paragraph 4 of the Original
Agreement, titled “Place of Employment,” is hereby deleted in its entirety and
replaced with the following language:  “The Employee’s
regular place of employment during the Employment Term shall be at the Employer’s
offices in Fayette County, Kentucky.”

 

D.            Employee
shall be entitled to three (3) weeks paid vacation per year.

 

E.             Paragraph
6(b) of the Original Agreement, titled “Confidentiality; Competition,” is
hereby deleted in its entirety and replaced with the following language:

 

The Employee agrees that during the
Employment Term (and for a period of one (1) year after Employee’s voluntary
resignation or three (3) months following Employee’s termination by the
Employer with or without cause) the Employee will not (whether as an officer,
director, partner, proprietor, member, shareholder, investor, associate,
employee, consultant, adviser, public relations or advertising representative
or otherwise), directly or indirectly, be engaged in the business of coal
mining, coal processing, coal loading or coal marketing within the states of
Kentucky, West Virginia, Ohio or Colorado. For purposes of the preceding
sentence, the Employee shall be deemed to be engaged in any business with any
person for whom he shall be an employee, officer, director, owner, employer,
consultant, shareholder, member or partner. Notwithstanding the foregoing, there

 

1

 

shall be no restriction under this subsection
(b) on the Employee owning, as a passive investment, less than five
percent (5%) of the voting or non-voting securities of any publicly traded
company. During such period of non-competition, and for a period of six (6) months
thereafter, Employee shall not directly or indirectly solicit, interview or
make any decision or recommendation to hire or to retain as a consultant or
advisor or in any other capacity, any current employee of Employer, for
himself, or for or to, any other person or entity.  Employee shall notify any subsequent employer
of Employee of the foregoing agreement;

 

Paragraphs 6(a) and 6(c) will
remain unchanged.

 

F.             A
new paragraph 9 is hereby added (and existing Paragraphs 9 through 17 of the
Employment Agreement shall be deemed renumbered accordingly) as follows:

 

9.     Indemnification.  Employer shall indemnify and hold harmless Employee
from and against any loss, cost, damage, expense, or liability incurred by Employee
for any action taken by Employee in the scope of Employee’s employment for the
Employer, provided such action (i) is within the scope, duties, and
authority of Employee, (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 Employee, as finally
determined by a court of competent jurisdiction.  The obligations of Employer under this Section 9
shall survive the termination of this Agreement.

 

G.            The
last sentence of Paragraph 14 of the Employment Agreement (renumbered Paragraph
15 as provided immediately above), titled, “Governing Law,” is deleted in its
entirety and replaced with the following: 
“Employee hereby consents to the jurisdiction of the Courts of the
Commonwealth of Kentucky, including the Fayette Circuit Court and hereby waives
any objection to venue in any action brought in said

 

Except as specifically set
forth herein, all other provisions of the Employment Agreement are will remain
unchanged and are hereby ratified and confirmed.

 

6.             The Employee shall be entitled to a one-time
conditional bonus payment (“Conditional Bonus”) in the amount of SIXTY THOUSAND
DOLLARS ($60,000), which shall be paid by Employer at the time of signing this
Agreement.  In the event that the
Employee’s employment terminates before the Conditional Bonus is fully offset
and refunded as provided herein for reasons other than the Employee’s death,
disability or termination for cause, the Employee shall refund to the Employer
the Conditional Bonus.  Any bonuses due
and owing to Employee under the Employment Agreement as either a bonus payable
upon the consummation of a public offering of the stock of Rhino Resources, Inc.
or as an annual discretionary bonus, will be reduced by the full amount of, but
not to exceed in the aggregate, the amount of the Conditional Bonus.  The repayments of any outstanding portion of
the Conditional Bonus shall be due and owing immediately upon the Employee’s
termination of employment (for reasons other than death,  disability or termination for cause). 
The Employer shall also be entitled to 

 

2

 

withhold
from the Employee’s compensation all or any portion of the compensation (after
standard and required withholdings) in full or partial satisfaction of the
repayment obligations due and owing by the Employee to the Employer
hereunder.  The Employer and Employee expressly recognize and agree that
the bonus offsets and the withholding by the Employer are permissible
deductions or reductions permitted pursuant to Section 337.060 of the
Kentucky Revised Statutes.

 

7.             This
Assignment Agreement shall be construed and enforced pursuant to the laws of
the Commonwealth of Kentucky, including matters of law relating to choice of
law.  Employee hereby consents to the
jurisdiction of the courts of the Commonwealth of Kentucky, including the
Fayette Circuit Court and hereby waives any objection to venue of any action
brought in said court.

 

[The remainder of this page is intentionally left blank.]

 

3

 

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

 

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  CAM MINING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David G. Zatezalo

  
	
   

  	
   

  	
  David
  G. Zatezalo, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  RHINO ENERGY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicholas R. Glancy

  
	
   

  	
   

  	
  Nicholas
  R. Glancy

  
	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
  CHAD HUNT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Chad Hunt

  

 

SIGNATURE PAGE

AGREEMENT

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