Document:

Exhibit 10.7

Exhibit 10.7

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made by and between Oxford Resources GP, LLC, a
Delaware limited liability company (“Company”), and Thomas T. Ungurean (“Executive”).

W I T N E S S E T H:

     WHEREAS, Executive is currently employed by Company, which is the general partner of Oxford
Resource Partners, LP (“Oxford LP”), pursuant to that certain Employment Agreement by and between
Executive and Company effective as of August 24, 2007 (the “Existing Agreement”); and

     WHEREAS, effective as of the closing of the initial public offering of the common units of
Oxford LP (the “Effective Date”), Company and Executive desire to amend the Existing Agreement in
certain respects and, in connection therewith, the parties desire to enter into this Agreement to
replace and supercede the Existing Agreement in its entirety as provided herein;

     NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations
contained herein, Company and Executive agree as follows, effective as of the Effective Date:

ARTICLE 1 EMPLOYMENT AND DUTIES

     1.1 Employment; Effective Date. Effective as of the Effective Date, and continuing
for the period of time set forth in Article 2 of this Agreement, Executive’s employment by Company
shall be subject to the terms and conditions of this Agreement.

     1.2 Positions. Company shall employ Executive in the position of Senior Vice
President, Equipment, Procurement & Maintenance responsible for management, maintenance, and
procurement of the mining, processing, and transportation equipment of Company and reporting to the
Chief Executive Officer of Company, or in such other positions as the parties mutually may agree.

     1.3 Duties and Services. Executive agrees to serve in the positions referred to in
paragraph 1.2 and to perform diligently and to the best of his abilities the duties and services
appertaining to such offices, as well as such additional duties and services appropriate to such
offices which the parties mutually may agree upon from time to time. Executive’s employment shall
also be subject to the policies maintained and established by Company that are of general
applicability to Company’s executive employees, as such policies may be amended from time to time.

     1.4 Other Interests. Executive agrees, during the period of his employment by
Company, to devote substantially all of his primary business time, energy and best efforts to the
business and affairs of Company and its affiliates and not to engage, directly or indirectly, in
any other business or businesses, whether or not similar to that of Company, except with the
consent of the Board of Directors of Company (the “Board”). The foregoing notwithstanding, the
parties recognize and agree that Executive may engage in charitable and civic pursuits, and also
may maintain his current ownership in (i) C&T Coal, Inc., which is a member of Company and a

 

 

limited partner of Oxford LP, (ii) T & C Holdco LLC, which is a limited partner in Tunnel Hill
Partners, LP, the parent company of Tunnell Hill Reclamation LLC, an entity that owns land on which
a landfill is located, and (iii) Deep Resources, LLC, an entity that owns an oil company run by
Executive, without the consent of the Board, as long as Executive does not spend more than 20% of
his business time on such pursuits and such pursuits do not conflict with the business and affairs
of Company or its affiliates or interfere with Executive’s performance of his duties hereunder,
which shall be in the sole determination of the Board.

     1.5 Duty of Loyalty. Executive acknowledges and agrees that Executive owes a
fiduciary duty of loyalty to act at all times in the best interests of Company. In keeping with
such duty, Executive shall make full disclosure to Company of all business opportunities pertaining
to Company’s business and shall not appropriate for Executive’s own benefit business opportunities
concerning Company’s business.

ARTICLE 2 TERM AND TERMINATION OF EMPLOYMENT

     2.1 Term. Unless sooner terminated pursuant to other provisions hereof, Company
agrees to continue the employment of Executive for the period beginning on the Effective Date and
ending on the second anniversary of the Effective Date (the “Initial Expiration Date”); provided,
however, that beginning on the Initial Expiration Date, and on each anniversary of the Initial
Expiration Date thereafter, if this Agreement has not been terminated pursuant to paragraph 2.2 or
2.3, then said term of employment shall automatically be extended for an additional one-year
period, unless on or before the date that is 90 days prior to the first day of any such extension
period either party shall give written notice (an “Expiration Notice”) to the other that no such
automatic extension shall occur.

     2.2 Company’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1,
Company shall have the right to terminate Executive’s employment under this Agreement for any of
the following reasons:

     (i) upon Executive’s death;

     (ii) upon Executive’s disability, which shall mean Executive’s becoming incapacitated
by accident, sickness, or other circumstances which renders him mentally or physically
incapable of performing the duties and services required of him hereunder for 90 or more
days (whether or not consecutive) out of any consecutive 180-day period;

     (iii) for “Cause,” which shall mean Executive has (A) engaged in gross negligence,
gross incompetence or willful misconduct in the performance of the duties required of him
hereunder; (B) refused without proper reason to perform the duties and responsibilities
required of him hereunder; (C) willfully engaged in conduct that is materially injurious to
Company or its affiliates (monetarily or otherwise); (D) committed an act of fraud,
embezzlement or willful breach of fiduciary duty to Company or an affiliate (including the
unauthorized disclosure of confidential or proprietary material information of Company or an
affiliate) or (E) been convicted of (or pleaded no contest to) a crime involving fraud,
dishonesty or moral turpitude or any felony; or

     (iv) at any time for any other reason, or for no reason whatsoever, in the sole
discretion of the Board.

2

 

     2.3 Executive’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1,
Executive shall have the right to terminate his employment under this Agreement for any of the
following reasons:

     (i) for “Good Reason,” which shall mean, in connection with or based upon (A) a
material diminution in Executive’s responsibilities, duties or authority; (B) a material
diminution in Executive’s base compensation or (C) a material breach by Company of any
material provision of this Agreement; or

     (ii) at any time for any other reason, or for no reason whatsoever, in the sole
discretion of Executive.

     2.4 Notice of Termination. If Company desires to terminate Executive’s employment
hereunder at any time prior to expiration of the term of employment as provided in paragraph 2.1,
it shall do so by giving a 30-day written notice to Executive that it has elected to terminate
Executive’s employment hereunder and stating the effective date and reason for such termination,
provided that no such action shall alter or amend any other provisions hereof or rights arising
hereunder. If Executive desires to terminate his employment hereunder at any time prior to
expiration of the term of employment as provided in paragraph 2.1, he shall do so by giving a
30-day written notice to Company that he has elected to terminate his employment hereunder and
stating the effective date and reason for such termination, provided that no such action shall
alter or amend any other provisions hereof or rights arising hereunder. In the case of any notice
by Executive of his intent to terminate his employment hereunder for Good Reason, Executive shall
provide Company with notice of the existence of the condition(s) constituting the Good Reason
within 60 days after the initial existence of such condition(s) and Company shall have 30 days
following Executive’s provision of such notice to remedy such condition(s). If Company remedies
the condition(s) constituting the Good Reason within such 30 day period, then Executive’s
employment hereunder or as a post-term employment continuation described in paragraph 4.1, as
applicable, shall continue and his notice of termination shall become void and of no further
effect. If Company does not remedy the condition(s) constituting the Good Reason within such 30
day period, Executive’s employment with Company shall terminate on the date that is 31 days
following the date of Executive’s notice of termination and Executive shall be entitled to receive
the payments and benefits described in paragraph 4.1 or 4.3, as applicable. The notice, remedy
rights and termination timing provisions applicable under this paragraph 2.4 in the case of
Executive’s election to terminate his employment for Good Reason are referred to collectively as
the “Good Reason Termination Procedure.”

     2.5 Deemed Resignations. Any termination of Executive’s employment shall constitute
an automatic resignation of Executive as an officer of Company and each affiliate of Company, an
automatic resignation of Executive from the Board and from the board of directors or similar
governing body of any affiliate of Company, and an automatic resignation from the board of
directors or similar governing body of any corporation, limited liability company or other entity
in which Company or any affiliate holds an equity interest and with respect to which board or
similar governing body Executive serves as Company’s or such affiliate’s designee or other
representative.

3

 

ARTICLE 3 COMPENSATION AND BENEFITS

     3.1 Base Salary. During the period of this Agreement, Executive shall receive a
minimum annual base salary of $275,000. Executive’s annual base salary shall be reviewed by the
Board (or a committee thereof) on an annual basis, and, in the sole discretion of the Board (or
such committee), such annual base salary may be increased, but not decreased (except for a decrease
that is consistent with reductions taken generally by other executives of Company), effective as of
any date determined by the Board. Executive’s annual base salary shall be paid in equal
installments in accordance with Company’s standard policy regarding payment of compensation to
executives but no less frequently than monthly.

     3.2 Bonuses and Incentive Compensation. For the calendar year in which falls the
Effective Date, and thereafter during the period of this Agreement, Executive shall be eligible to
receive an annual incentive performance bonus in an amount equal to up to 66.6% of his annual base
salary (or such greater percentage, if any, as shall be approved by the Board). The amount of
Executive’s annual incentive performance bonus for any calendar year shall be approved from time to
time by the Board, based upon recommendations of the Compensation Committee of the Board
(“Compensation Committee”), and shall be pro-rated for any period of employment by Company during a
calendar year of less than twelve months. The Compensation Committee’s recommendations may take
into account such criteria as it establishes in its discretion, including, without limitation,
recommendations from the Chief Executive Officer of Company. In addition, Executive shall also be
eligible to receive awards under Company’s Long-Term Incentive Plan, as determined by the Board.

     3.3 Other Perquisites. During his employment hereunder, Executive shall be afforded
the following benefits as incidences of his employment:

     (i) Business and Entertainment Expenses - Subject to Company’s standard policies and
procedures with respect to expense reimbursement as applied to its executive employees
generally, Company shall reimburse Executive for, or pay on behalf of Executive, reasonable
and appropriate expenses incurred by Executive for business related purposes, including dues
and fees to industry and professional organizations and costs of entertainment and business
development.

     (ii) Vacation - For the calendar year during which the Effective Date falls, and
thereafter for each calendar year during the period of this Agreement, Executive shall be
entitled to four weeks of paid vacation (pro-rated for any period of employment by Company
during such calendar year of less than twelve (12) months) and to all holidays provided to
executives of Company generally.

     (iii) Other Company Benefits — Except as provided in paragraph 3.2, Executive and, to
the extent applicable, Executive’s spouse, dependents and beneficiaries, shall be allowed to
participate in all benefits, plans and programs, including improvements or modifications of
the same, which are now, or may hereafter be, available to other executive employees of
Company. Such benefits, plans and programs shall include, without limitation, any profit
sharing plan, thrift plan, health insurance or health care plan, life insurance, disability
insurance, pension plan, supplemental retirement plan, vacation and sick leave plan, and the
like which may be maintained by

4

 

Company. Company shall not, however, by reason of this paragraph be obligated to
institute, maintain, or refrain from changing, amending, or discontinuing any such benefit
plan or program, so long as such changes are similarly applicable to executive employees
generally.

ARTICLE 4 EFFECT OF TERMINATION ON COMPENSATION

     4.1 Termination by Expiration. If Executive’s employment hereunder shall be
terminated by expiration of the term as provided in paragraph 2.1 hereof (including any extensions
of the term of this Agreement thereunder) because either party has provided an Expiration Notice,
Executive’s employment with Company shall nonetheless continue until such employment is actually
terminated by either Company or Executive upon such expiration or at any time thereafter, with such
actual termination and the effective date thereof to be stated in a written notice to the other
party which is provided in accordance with Section 8.1, and, in the case of a termination following
such expiration by Executive for Good Reason (as described below), such notice shall be provided in
accordance with paragraph 2.4 and the Good Reason Termination Procedure shall apply to any such
termination. In the event an Expiration Notice is provided by either party, all compensation and
all benefits to Executive hereunder shall continue to be provided until the expiration of such
term, and thereafter Executive shall receive such compensation and benefits as are determined by
Company (it being understood that determinations by Company in this regard could provide Executive
with Good Reason for purposes of the immediately following sentence) until his employment with
Company is actually so terminated. Upon such actual termination of Executive’s employment with
Company all compensation and benefits shall terminate contemporaneously with termination of his
employment with Company, except as otherwise provided in the following sentence or under any other
agreement or plan of Company that provides post-termination benefits. Upon any such actual
termination of Executive’s employment with Company which is upon or within 12 months following the
expiration of the term as described in paragraph 2.1 where the Expiration Notice was given by
Company, and subject to paragraph 4.4 below, if Executive’s employment with Company has been
terminated (a) by Company and such termination is for any reason other than a reason encompassed by
paragraph 2.2(i), 2.2(ii), or 2.2(iii) or (b) by Executive for Good Reason (assuming for purposes
of these clauses (a) and (b) only that this Agreement were still in effect continually until and
also at the time of any such termination), then Company shall provide Executive with a lump sum
cash termination payment in an amount equal to 50% of Executive’s annual base salary at the highest
rate in effect at any time upon or following expiration of the term as provided in paragraph 2.1
hereof. Subject to paragraph 4.4, any lump sum cash termination payment due to Executive pursuant
to the preceding sentence shall be paid to Executive on the sixtieth (60th) day after
the date of Executive’s actual termination of employment with Company. For purposes of clarity,
Executive’s termination of employment hereunder by expiration of the term as provided in paragraph
2.1 hereof is the only circumstance where Executive’s employment with Company may continue
following a termination of employment hereunder, so that a termination of Executive’s employment
hereunder under any other provisions of this Agreement automatically also results in an actual
termination of Executive’s employment with Company.

     4.2 Termination by Company. If Executive’s employment hereunder shall be terminated
by Company prior to expiration of the term provided in paragraph 2.1, then, upon such termination,
except as hereinafter provided, all compensation and benefits to Executive

5

 

hereunder shall terminate contemporaneously with the termination of such employment (except as
otherwise provided under any other agreement or plan of Company that provides post-termination
benefits); provided, however, that, subject to paragraph 4.4 below, if such termination shall be
for any reason other than the expiration of the term as described in paragraph 2.1 or any reason
other than a reason encompassed by paragraph 2.2(i), 2.2(ii), or 2.2(iii), then Company shall
provide Executive with a lump sum cash payment equal to two times Executive’s annual base salary at
the rate in effect under paragraph 3.1 on the date of such termination; and provided, further, that
if such termination shall be for a reason encompassed by paragraph 2.2(i), 2.2(ii), or 2.2(iv),
then the participation of Executive and/or his dependents, as applicable, in the fully-insured
Company employee benefit plans and insurance arrangements providing medical and dental benefits in
which they are enrolled at the time of such termination shall continue through the remainder of the
term provided in paragraph 2.1 to the extent that such continuation is permitted at the time of
such termination under the terms of such Company employee benefit plans and insurance arrangements.
Subject to paragraph 4.4, any lump sum cash payment due to Executive pursuant to the preceding
sentence shall be paid to Executive on the sixtieth (60th) day after the date of
Executive’s termination of employment with Company.

     4.3 Termination by Executive. If Executive’s employment hereunder shall be terminated
by Executive prior to expiration of the term provided in paragraph 2.1, then, upon such
termination, except as hereinafter provided, all compensation and benefits to Executive hereunder
shall terminate contemporaneously with the termination of such employment (except as otherwise
provided under any other agreement or plan of Company that provides post-termination benefits);
provided, however, that, subject to paragraph 4.4 below, if such termination occurs for Good
Reason, then Company shall provide Executive with a lump sum cash payment equal to two times
Executive’s annual base salary at the rate in effect under paragraph 3.1 on the date of such
termination and the participation of Executive and his dependents, as applicable, in the
fully-insured Company employee benefit plans and insurance arrangements providing medical and
dental benefits in which they are enrolled at the time of such termination shall continue through
the remainder of the term provided in paragraph 2.1 to the extent that such continuation is
permitted at the time of such termination under the terms of such Company employee benefit plans
and insurance arrangements. Subject to paragraph 4.4, any lump sum cash payment due to Executive
pursuant to this paragraph shall be paid to Executive on the sixtieth (60th) day after the date of
Executive’s termination of employment with Company.

     4.4 Release and Full Settlement. Anything to the contrary herein notwithstanding, as
a condition to the receipt of the termination payments and benefits under paragraph 4.1, 4.2 or 4.3
hereof, as applicable, Executive shall first execute a release, in the form established by the
Board, releasing the Board, Company, and Company’s parent corporation, subsidiaries, affiliates,
and their respective shareholders, partners, officers, directors, employees, attorneys and agents
from any and all claims and from any and all causes of action of any kind or character including,
but not limited to, all claims or causes of action arising out of Executive’s employment with
Company or its affiliates or the termination of such employment, but excluding all claims to vested
benefits and payments Executive may have under any compensation or benefit plan, program or
arrangement, including this Agreement. Executive shall provide such release no later than 50 days
after the date of his termination of employment with Company and, as a condition to Company’s
obligation to provide termination payments and benefits in accordance with paragraphs 4.1, 4.2 and
4.3, Executive shall not revoke such release. The performance of

6

 

Company’s obligations hereunder and the receipt of any termination payments and benefits
provided under paragraphs 4.1, 4.2 and 4.3 shall constitute full settlement of all such claims and
causes of action.

     4.5 No Duty to Mitigate Losses. Executive shall have no duty to find new employment
following the termination of his employment under circumstances which require Company to pay any
amount to Executive pursuant to this Article 4. Any salary or remuneration received by Executive
from a third party for the providing of personal services (whether by employment or by functioning
as an independent contractor) following the termination of his employment under circumstances
pursuant to which this Article 4 apply shall not reduce Company’s obligation to make a payment to
Executive (or the amount of such payment) pursuant to the terms of this Article 4.

     4.6 Liquidated Damages. In light of the difficulties in estimating the damages for an
early termination of Executive’s employment under this Agreement, Company and Executive hereby
agree that the payments and benefits, if any, to be received by Executive pursuant to this Article
4 shall be received by Executive as liquidated damages.

     4.7 Section 409A Matters. Notwithstanding any provision in this Agreement to the
contrary, if Executive is a specified employee (within the meaning of Section 409A(a)(2)(B)(i) of
the Internal Revenue Code of 1986, as amended (the “Code”), and applicable administrative guidance
thereunder and determined in accordance with any method selected by Company that is permitted under
the regulations issued under Section 409A of the Code), and the payment of any amount or benefit
under this Agreement to or on behalf of Executive would be subject to additional taxes and interest
under Section 409A of the Code because the timing of such payment is not delayed as provided in
Section 409A(a)(2)(B)(i) of the Code and the regulations thereunder, then any such payment or
benefit that Executive would otherwise be entitled to during the first six months following the
date of Executive’s separation from service (within the meaning of Section 409A(a)(2)(A)(i) of the
Code and applicable administrative guidance thereunder) shall be accumulated and paid or provided,
as applicable, on the date that is six months after Executive’s separation from service (or if such
date does not fall on a business day of Company, the next following business day of Company), or
such earlier date upon which such amount can be paid or provided under Section 409A of the Code
without being subject to such additional taxes and interest; provided, however, that Executive
shall be entitled to receive the maximum amount permissible under Section 409A of the Code and the
applicable administrative guidance thereunder during the six-month period following his separation
from service that will not result in the imposition of any additional tax or penalties on such
amount. For all purposes of this Agreement, Executive shall be considered to have terminated
employment with Company when Executive incurs a “separation from service” with Company within the
meaning of Section 409A(a)(2)(A)(i) of the Code and the applicable administrative guidance issued
thereunder. To the extent that Section 409A of the Code is applicable to this Agreement, the
provisions of this Agreement shall be interpreted as necessary to comply with such section and the
applicable administrative guidance issued thereunder.

     4.8 Other Benefits. This Agreement governs the rights and obligations of Executive
and Company with respect to Executive’s base salary and certain perquisites of employment. Except
as expressly provided herein, Executive’s rights and obligations both during the term of his
employment and thereafter with respect to his direct and indirect ownership rights in

7

 

Company and Oxford LP, and other benefits under the plans and programs maintained by Company
shall be governed by the separate agreements, plans and the other documents and instruments
governing such matters.

ARTICLE 5 PROTECTION OF CONFIDENTIAL INFORMATION

     5.1 Disclosure to and Property of Company. All information, designs, ideas, concepts,
improvements, product developments, discoveries and inventions, whether patentable or not, that are
conceived, made, developed or acquired by Executive, individually or in conjunction with others,
during the period of Executive’s employment by Company (whether during business hours or otherwise
and whether on Company’s premises or otherwise) that relate to Company’s (or any of its
affiliates’) business, trade secrets, products or services (including, without limitation, all such
information relating to corporate opportunities, product specification, compositions, manufacturing
and distribution methods and processes, research, financial and sales data, pricing terms,
evaluations, opinions, interpretations, acquisitions prospects, the identity of customers or their
requirements, the identity of key contacts within the customer’s organizations or within the
organization of acquisition prospects, marketing and merchandising techniques, business plans,
computer software or programs, computer software and database technologies, prospective names and
marks) (collectively, “Confidential Information”) shall be disclosed to Company and are and shall
be the sole and exclusive property of Company (or its affiliates). Moreover, all documents,
videotapes, written presentations, brochures, drawings, memoranda, notes, records, files,
correspondence, manuals, models, specifications, computer programs, E-mail, voice mail, electronic
databases, maps, drawings, architectural renditions, models and all other writings or materials of
any type embodying any of such information, ideas, concepts, improvements, discoveries, inventions
and other similar forms of expression (collectively, “Work Product”) are and shall be the sole and
exclusive property of Company (or its affiliates). Upon Executive’s termination of employment with
Company, for any reason, Executive promptly shall deliver such Confidential Information and Work
Product, and all copies thereof, to Company.

     5.2 Disclosure to Executive. Company has and will disclose to Executive, or place
Executive in a position to have access to or develop, Confidential Information and Work Product of
Company (or its affiliates); and/or has and will entrust Executive with business opportunities of
Company (or its affiliates); and/or has and will place Executive in a position to develop business
good will on behalf of Company (or its affiliates). Executive agrees to preserve and protect the
confidentiality of all Confidential Information or Work Product of Company (or its affiliates).

     5.3 No Unauthorized Use or Disclosure. Executive agrees that he will not, at any time
during or after Executive’s employment by Company, make any unauthorized disclosure of, and will
prevent the removal from Company premises of, Confidential Information or Work Product of Company
(or its affiliates), or make any use thereof, except in the carrying out of Executive’s
responsibilities during the course of Executive’s employment with Company. Executive shall use
commercially reasonable efforts to cause all persons or entities to whom any Confidential
Information shall be disclosed by him hereunder to observe the terms and conditions set forth
herein as though each such person or entity was bound hereby. Executive shall have no obligation
hereunder to keep confidential any Confidential Information if and to the extent disclosure thereof
is specifically required by law; provided, however, that in the event

8

 

disclosure is required by applicable law, Executive shall provide Company with prompt notice
of such requirement prior to making any such disclosure, so that Company may seek an appropriate
protective order or otherwise contest such disclosure. At the request of Company at any time,
Executive agrees to deliver to Company all Confidential Information that he may possess or control.
Executive agrees that all Confidential Information of Company (whether now or hereafter existing)
conceived, discovered or made by him during the period of Executive’s employment by Company
exclusively belongs to Company (and not to Executive), and Executive will promptly disclose such
Confidential Information to Company and perform all actions reasonably requested by Company to
establish and confirm such exclusive ownership. Affiliates of Company shall be third party
beneficiaries of Executive’s obligations under this Article 5. As a result of Executive’s
employment by Company, Executive may also from time to time have access to, or knowledge of,
Confidential Information or Work Product of third parties, such as customers, suppliers, partners,
joint venturers, and the like, of Company and its affiliates. Executive also agrees to preserve
and protect the confidentiality of such third party Confidential Information and Work Product to
the same extent, and on the same basis, as Company’s Confidential Information and Work Product.

     5.4 Ownership by Company. If, during Executive’s employment by Company, Executive
creates any work of authorship fixed in any tangible medium of expression that is the subject
matter of copyright (such as videotapes, written presentations, or acquisitions, computer programs,
E-mail, voice mail, electronic databases, drawings, maps, architectural renditions, models,
manuals, brochures, or the like) relating to Company’s business, products, or services, whether
such work is created solely by Executive or jointly with others (whether during business hours or
otherwise and whether on Company’s premises or otherwise), including any Work Product, Company
shall be deemed the author of such work if the work is prepared by Executive in the scope of
Executive’s employment; or, if the work is not prepared by Executive within the scope of
Executive’s employment but is specially ordered by Company as a contribution to a collective work,
as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work,
as a compilation, or as an instructional text, then the work shall be considered to be work made
for hire and Company shall be the author of the work. If such work is neither prepared by
Executive within the scope of Executive’s employment nor a work specially ordered that is deemed to
be a work made for hire, then Executive hereby agrees to assign, and by these presents does assign,
to Company all of Executive’s worldwide right, title, and interest in and to such work and all
rights of copyright therein.

     5.5 Assistance by Executive. During the period of Executive’s employment by Company
and thereafter, Executive shall assist Company and its nominee, at any time, in the protection of
Company’s (or its affiliates’) worldwide right, title and interest in and to Work Product and the
execution of all formal assignment documents requested by Company or its nominee and the execution
of all lawful oaths and applications for patents and registration of copyright in the United States
and foreign countries.

     5.6 Remedies. Executive acknowledges that money damages would not be sufficient
remedy for any breach of this Article 5 by Executive, and Company or its affiliates shall be
entitled to enforce the provisions of this Article 5 by terminating payments then owing to
Executive under this Agreement or otherwise and to specific performance and injunctive relief as
remedies for such breach or any threatened breach. Such remedies shall not be deemed the

9

 

exclusive remedies for a breach of this Article 5 but shall be in addition to all remedies
available at law or in equity, including the recovery of damages from Executive and his agents.

ARTICLE 6 NON-COMPETITION OBLIGATIONS

     6.1 Non-competition Obligations. As part of the consideration for the compensation
and benefits to be paid to Executive hereunder; to protect the trade secrets and confidential
information of Company and its affiliates that have been or will in the future be disclosed or
entrusted to Executive, the business good will of Company and its affiliates that has been and will
in the future be developed in Executive, or the business opportunities that have been and will in
the future be disclosed or entrusted to Executive by Company and its affiliates; and as an
additional incentive for Company to enter into this Agreement, Company and Executive agree to the
provisions of this Article 6. Executive agrees that during the period of Executive’s
non-competition obligations hereunder, Executive shall not, directly or indirectly for Executive or
for others, in any geographic area or market where Company is conducting any business as of the
date of termination of the employment relationship:

     (i) engage in any business that is competitive with the business conducted by Company;

     (ii) render any advice or services to, or otherwise assist, any other person,
association, or entity who is engaged, directly or indirectly, with any business that is
competitive with the business conducted by Company;

     (iii) induce any employee of Company or its affiliates to terminate his or her
employment with Company or its affiliates, or hire or assist in the hiring of any such
employee by any person, association, or entity not affiliated with Company; or

     (iv) request or cause any customer of Company or its affiliates to terminate any
business relationship with Company or its affiliates.

The non-competition obligations under this Agreement shall apply during the period that Executive
is employed by Company and shall continue for 24 months after the date of the termination of
Executive’s employment with Company for any reason. Executive understands that the foregoing
restrictions may limit Executive’s ability to engage in certain businesses anywhere in the world
during the period provided for above, but acknowledges that Executive will receive sufficiently
high remuneration and other benefits under this Agreement to justify such restriction.

     6.2 Enforcement and Remedies. Executive acknowledges that money damages would not be
sufficient remedy for any breach of this Article 6 by Executive, and Company shall be entitled to
enforce the provisions of this Article 6 by terminating any payments then owing to Executive under
this Agreement and/or to specific performance and injunctive relief as remedies for such breach or
any threatened breach. Such remedies shall not be deemed the exclusive remedies for a breach of
this Article 6, but shall be in addition to all remedies available at law or in equity to Company,
including, without limitation, the recovery of damages from Executive and Executive’s agents
involved in such breach and remedies available to Company pursuant to other agreements with
Executive.

10

 

     6.3 Reformation. It is expressly understood and agreed that Company and Executive
consider the restrictions contained in this Article 6 to be reasonable and necessary to protect the
proprietary information of Company and its affiliates. Nevertheless, if any of the aforesaid
restrictions are found by a court having jurisdiction to be unreasonable, or overly broad as to
geographic area or time, or otherwise unenforceable, the parties intend for the restrictions
therein set forth to be modified by such courts so as to be reasonable and enforceable and, as so
modified by the court, to be fully enforced.

ARTICLE 7 NONDISPARAGEMENT

     Executive shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any oral or written statements about Company, its
affiliates, or any of such entities’ officers, employees, agents or representatives that (i) are
slanderous, libelous, or defamatory; (ii) disclose private or confidential information about
Company, its affiliates, or any of such entities’ business affairs, officers, employees, agents, or
representatives; (iii) constitute an intrusion into the seclusion or private lives of the officers,
employees, agents, or representatives of Company or its affiliates; (iv) give rise to unreasonable
publicity about the private lives of the officers, employees, agents, or representatives of Company
or its affiliates; (v) place Company, its affiliates, or any of such entities’ officers, employees,
agents, or representatives in a false light before the public; or (vi) constitute a
misappropriation of the name or likeness of Company, its affiliates, or any of such entities’
officers, employees, agents, or representatives. A violation or threatened violation of this
prohibition may be enjoined by the courts. The rights afforded Company and its affiliates under
this provision are in addition to any and all rights and remedies otherwise afforded by law.

     Company agrees that, both during Executive’s employment relationship and after the employment
relationship terminates, Company, its affiliates, and such entities’ officers, employees, agents or
representatives shall refrain from publishing any oral or written statements about Executive that
(i) are slanderous, libelous, or defamatory; (ii) disclose private or confidential information
about Executive; (iii) that constitute an intrusion into the seclusion or private life of
Executive; (iv) give rise to unreasonable publicity about the private life of Executive; (v) place
Executive in a false light before the public; or (vi) constitute a misappropriation of the name or
likeness of Executive. A violation or threatened violation of this prohibition may be enjoined by
the courts. The rights afforded Executive under this provision are in addition to any and all
rights and remedies otherwise afforded by law.

     The nondisparagement obligations of this Article 7 shall not apply to communications with law
enforcement or required testimony under law or court process.

ARTICLE 8 MISCELLANEOUS

     8.1 Notices. For purposes of this Agreement, notices and all other communications
provided for herein shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

11

 

	 	 	 	 	 

	 

	 	If to Company to:
	 	Oxford Resources GP, LLC
	 

	 	 	 	544 Chestnut Street
	 

	 	 	 	P.O. Box 427
	 

	 	 	 	Coshocton, Ohio 43812
	 

	 	 	 	Attention: Chairman of the Board
	 
	 	 	 	 
	 

	 	with a copy to:
	 	AIM Infrastructure MLP Fund, L.P.
	 

	 	 	 	950 Tower Lane
	 

	 	 	 	Suite 800
	 

	 	 	 	Foster City, California 94404
	 

	 	 	 	Attention: Brian D. Barlow and Matthew P. Carbone
	 
	 	 	 	 
	 

	 	If to Executive to:
	 	Thomas T. Ungurean
	 

	 	 	 	1690 Sleepy Hollow Drive
	 

	 	 	 	Coshocton, Ohio 43812

or to such other address as either party may furnish to the other in writing in accordance
herewith, except that notices or changes of address shall be effective only upon receipt.

     8.2 Applicable Law. This Agreement is entered into under, and shall be governed for
all purposes by, the laws of the State of Ohio.

     8.3 No Waiver. No failure by either party hereto at any time to give notice of any
breach by the other party of, or to require compliance with, any condition or provision of this
Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or
at any prior or subsequent time.

     8.4 Severability. If a court of competent jurisdiction determines that any provision
of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that
provision shall not affect the validity or enforceability of any other provision of this Agreement,
and all other provisions shall remain in full force and effect.

     8.5 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will constitute one and the same
agreement.

     8.6 Withholding of Taxes and Other Employee Deductions. Company may withhold from any
benefits and payments made pursuant to this Agreement or otherwise all federal, state, city and
other taxes as may be required pursuant to any law or governmental regulation or ruling and all
other normal employee deductions made with respect to Company’s employees generally.

     8.7 Headings. The paragraph headings have been inserted for purposes of convenience
and shall not be used for interpretive purposes.

     8.8 Gender and Plurals. Wherever the context so requires, the masculine gender
includes the feminine or neuter, and the singular number includes the plural and conversely.

     8.9 Affiliate. As used in this Agreement, the term “affiliate” shall mean any entity
which owns or controls, is owned or controlled by, or is under common ownership or control with,
Company.

12

 

     8.10 Assignment. This Agreement shall be binding upon and inure to the benefit of
Company and any successor of Company, by merger or otherwise. This Agreement shall also be binding
and inure to the benefit of Executive and his heirs. Except as provided in the preceding sentence,
this Agreement, and the rights and obligations of the parties hereunder, are personal and neither
this Agreement, nor any right, benefit, or obligation of either party hereto, shall be subject to
voluntary or involuntary assignment, alienation or transfer, whether by operation of law or
otherwise, without the prior written consent of the other party.

     8.11 Term. This Agreement has a term co-extensive with the term of employment
provided in Article 2. Termination shall not affect any right or obligation of any party which is
accrued or vested prior to such termination. The provisions of paragraphs 2.4, 2.5, 4.1, 4.4, 4.5,
4.6, 4.7 and 4.8 and Articles 5, 6, 7 and 8 shall survive any termination of this Agreement.

     8.12 Entire Agreement. Except as provided in the Excepted Plans/Agreements (as
defined below), as of the Effective Date this Agreement will constitute the entire agreement of the
parties with regard to the subject matter hereof, and will contain all the covenants, promises,
representations, warranties and agreements between the parties with respect to employment of
Executive by Company. Without limiting the scope of the preceding sentence, all understandings and
agreements preceding the date of execution of this Agreement and relating to the subject matter
hereof (other than the Excepted Plans/Agreements), including without limitation the Existing
Agreement, are as of the Effective Date superceded by this Agreement and null and void and of no
further force and effect. Any modification of this Agreement will be effective only if it is in
writing and signed by the party to be charged. For purposes hereof, the “Excepted
Plans/Agreements” are (i) the written benefit plans and programs referenced in paragraphs 3.3(iii)
and 4.8 (and any agreements between Company and Executive that have been executed under such plans
and programs), (ii) any signed written agreement contemporaneously or hereafter executed by Company
and Executive, (iii) any exceptions provided for in the terms of this Agreement and (iv) the
agreements forming and/or operating Company and Oxford LP or any investor rights agreement related
thereto.

     8.13 Legal Expenses. If Executive incurs legal costs and expenses (including
reasonable attorneys’ fees) in any contest relating to rights under this Agreement and prevails in
such contest, Company shall reimburse Executive for his reasonable legal costs and expenses
(including reasonable attorneys’ fees) incurred with respect to such contest.

     8.14 Liability Insurance. Company shall maintain a directors’ and officers’ insurance
liability policy throughout the term of this Agreement and shall provide Executive with coverage
under such policy on terms not less favorable than provided to other Company directors and
officers.

     8.15 Arbitration.

     (i) Company and Executive agree to submit to final and binding arbitration any and all
disputes or disagreements concerning the interpretation or application of this Agreement,
the termination of this Agreement, or any other aspect of the Executive’s employment
relationship with Company. Any such dispute or disagreement will be resolved by arbitration
in accordance with the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association before a single arbitrator.

13

 

Arbitration will take place in Columbus, Ohio, unless the parties mutually agree to a
different location. Company and Executive agree that the decision of the arbitrator will be
final and binding on both parties. Any court having jurisdiction may enter a judgment upon
the award rendered by the arbitrator. The costs of the proceedings shall be borne equally
by the parties unless the arbitrator orders otherwise.

     (ii) Notwithstanding the provisions of paragraph 8.15(i), (a) Company may, if it so
chooses, bring an action in any court of competent jurisdiction for temporary or preliminary
injunctive relief to enforce Executive’s obligations under Articles 5, 6 or 7 hereof,
pending a decision by the arbitrator in accordance with paragraph 8.15(i), and (b) Executive
may, if he so chooses, bring an action in any court of competent jurisdiction for temporary
or preliminary injunctive relief to enforce Company’s obligations under Article 7 hereof,
pending a decision by the arbitrator in accordance with paragraph 8.15(i).

     8.16 Provisions Regarding Effective Date. As indicated in this Agreement, this
Agreement is effective as of the Effective Date, and accordingly in connection therewith the
parties agree that the following shall apply:

     (i) This Agreement shall from and after its execution by the parties be an agreement
binding upon and enforceable by both Company and Executive subject to the application of the
provisions hereof generally being effective as of the Effective Date.

     (ii) The employment of Executive by Company shall continue to be governed by the terms
of the Existing Agreement until the Effective Date.

     (iii) In the event that the employment of Executive by Company terminates at any time
prior to the Effective Date, such termination shall be governed by the terms of the Existing
Agreement and this Agreement shall be null and void and of no force and effect.

     (iv) In the event that the Effective Date does not occur on or before December 31,
2010, this Agreement shall be null and void and of no force and effect and the Existing
Agreement shall continue in full force and effect.

[Signature page follows.]

14

 

     IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on
the 18th day of
June, 2010, to be effective as of the Effective Date.

	 	 	 	 	 
	 	Oxford Resources GP, LLC

 	 
	 	By:  	/s/ Charles
C. Ungurean	 
	 	 	Name:  	Charles C. Ungurean 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	 	 	“COMPANY”

 	 
	 	/s/ Thomas
T. Ungurean	 
	 	Thomas T. Ungurean 	 
	 	 	 	

“EXECUTIVE” 	 
	 	 	 
	 

15Exhibit 10.14

Exhibit 10.14

OXFORD RESOURCES GP, LLC

NON-EMPLOYEE DIRECTOR COMPENSATION PLAN

Effective as of January 1, 2009

     In consideration of the services provided by certain non-employee members of the Board of
Directors (the “Board”) of Oxford Resources GP, LLC, a Delaware limited liability company (the
“Company”), which is the general partner of Oxford Resource Partners, LP, a Delaware limited
partnership (the “Partnership”), the Company has established this Oxford Resources GP, LLC
Non-Employee Director Compensation Plan (this “Plan”) to (i) attract and retain highly qualified
individuals, whose efforts and judgment can contribute significantly to the success of the Company
and the Partnership, to serve as non-employee members of the Board and (ii) stimulate the active
interest of these persons in the development and financial success of the Company and the
Partnership by providing for ownership of common units in the Partnership by such persons.

ARTICLE I

ELIGIBILITY

     Each Non-Employee Director will be eligible to receive the remuneration for Board services
provided for in this Plan. For purposes of this Plan, “Non-Employee Director” means a member of
the Board who (a) is not an officer or employee of the Company or any of its subsidiaries or
affiliates, (b) is not affiliated with or related to any party that receives compensation from the
Company or any of its subsidiaries or affiliates, and (c) has not entered into an arrangement with
the Company or any of its subsidiaries or affiliates to receive compensation from any such entity
other than in respect of his or her services as a member of the Board; provided, however, that (i)
an AIM Director (as defined below) shall not qualify as a “Non-Employee Director” unless and until
such AIM Director becomes an Approved AIM Director (as defined below), and (ii) an Approved AIM
Director (as defined below) shall be deemed to be a “Non-Employee Director” for all purposes
notwithstanding clauses (a) through (c) of this definition. For purposes of this Plan, “AIM
Director” means a member of the Board who (x) is designated for election to the Board by AIM Oxford
Holdings, LLC (“AIM Oxford”) pursuant to that certain Investors’ Rights Agreement, dated August 24,
2007, by and among the Partnership, the Company, AIM Oxford, C&T Coal, Inc., Charles C. Ungurean
and Thomas T. Ungurean, as such agreement may be amended from time to time, and (y) is not, in
connection with the action of the Board establishing this Plan, otherwise at any time prior to the
IPO (as defined below) or following the IPO in connection with such designation and his or her
election as a member of the Board, determined by the Board to be “independent” pursuant to the
rules and regulations of the United States Securities and Exchange Commission and the listing
standards of the applicable national securities exchange. For purposes of this Plan, “Approved AIM
Director” means an AIM Director who is specifically approved by the Board, by action of the Board
at any time following its establishment of this Plan, as eligible to receive compensation under
this Plan; provided, however, that no AIM Director shall become an Approved AIM Director until the
January 1st that immediately follows any such approval by the Board.

 

 

ARTICLE II

ANNUAL BOARD MEMBER RETAINER

     2.1 Annual Board Member Retainer Generally. Subject to the remaining provisions of
this Article II, commencing with and for calendar year 2009 and for each calendar year thereafter,
each Non-Employee Director will receive an annual retainer in respect of his or her service as a
member of the Board during such calendar year (“Annual Board Member Retainer”). The amount of the
Annual Board Member Retainer payable to each Non-Employee Director for calendar year 2009 and each
complete calendar year thereafter that precedes the calendar year, if any, in which the initial
public offering (“IPO”) of common units of the Partnership occurs (such preceding calendar years,
each a “Pre-IPO Year”) will be equal to $30,000, as modified by the remainder of this Article II.
The amount of the Annual Board Member Retainer payable to each Non-Employee Director for the
calendar years following the calendar year in which the IPO occurs (such following calendar years,
each a “Post-IPO Year”) will be equal to $50,000, as modified by the remainder of the provisions of
this Article II. The amount of the Annual Board Member Retainer for the calendar year in which the
IPO occurs (the “IPO Year”) will be the amount determined in accordance with the provisions of
Section 2.4. Except as otherwise provided in Section 5.5, the Annual Board Member Retainer to be
paid to each Non-Employee Director will be payable in cash.

     2.2 Payment of Annual Board Member Retainer Where Board Membership Runs from Beginning of
Calendar Year. If a Non-Employee Director is a member of the Board from the beginning of a
calendar year other than the IPO Year, such Non-Employee Director’s Annual Board Member Retainer
for such calendar year will be payable in four equal quarterly installments of $7,500 for a Pre-IPO
Year or $12,500 for a Post-IPO Year, as applicable (the “Quarterly Annual Retainer Value”), on the
first business day following the end of each fiscal quarter, beginning with the fiscal quarter
ending March 31 (each, a “Quarterly Payment Date”), subject to the provisions of Section 2.5.

     2.3 Reduction and Payment of Annual Board Member Retainer Where Board Membership Commences
During Calendar Year. If a Non-Employee Director is not a member of the Board at the beginning
of a calendar year other than the IPO Year, but becomes a member of the Board during the course of
such calendar year, such Non-Employee Director’s Annual Board Member Retainer for such calendar
year will be subject to reduction and payment, subject to the provisions of Section 2.5, as
follows:

	 	(a)	 	a 0% reduction, if such Non-Employee Director becomes a member of the Board
before March 31 of such calendar year, in which case the Non-Employee Director will be
paid the Quarterly Annual Retainer Value for such calendar year on each of the four
Quarterly Payment Dates occurring with respect to such calendar year;
	 
	 	(b)	 	a 25% reduction, if such Non-Employee Director becomes a member of the Board on
or after March 31 of such calendar year but before June 30 of such calendar year, in
which case the Non-Employee Director will be paid the Quarterly Annual Retainer Value
for such calendar year on each of the three remaining Quarterly Payment Dates occurring
with respect to such calendar year;

-2-

 

	 	(c)	 	a 50% reduction, if such Non-Employee Director becomes a member of the Board on
or after June 30 of such calendar year but before September 30 of such calendar year,
in which case the Non-Employee Director will be paid the Quarterly Annual Retainer
Value for such calendar year on each of the two remaining Quarterly Payment Dates
occurring with respect to such calendar year; and
	 
	 	(d)	 	a 75% reduction, if such Non-Employee Director becomes a member of the Board on
or after September 30 of such calendar year but before December 31 of such calendar
year, in which case the Non-Employee Director will be paid the Quarterly Annual
Retainer Value for such calendar year on the one remaining Quarterly Payment Date
occurring with respect to such calendar year.

     2.4 Annual Board Member Retainer for the IPO Year. For the IPO Year, the amount of
the Annual Board Member Retainer (the “IPO Year Annual Board Member Retainer”) will be an amount
equal to (a) $2,500 multiplied by the number of full calendar months during the IPO Year which
precede the month in which the IPO occurs and during which the Non-Employee Director served as a
member of the Board, plus (b) $3,333.33 multiplied by the number of calendar months remaining in
the IPO Year after the occurrence of the IPO (including the month in which the IPO occurs). The
IPO Year Annual Board Member Retainer as so calculated will be paid in installments on the
Quarterly Payment Dates for the IPO Year using the pro-ration described in the preceding sentence
to determine the amount of each quarterly installment (thus, e.g., if the IPO occurs in June of the
IPO Year, and the Non-Employee Director was a member of the Board at the beginning of the IPO Year,
the amount of the payment in respect of the Annual Board Member Retainer that is payable with
respect to the first Quarterly Payment Date for the IPO Year will be $7,500, the amount of the
payment in respect of the Annual Board Member Retainer that is payable with respect to the second
Quarterly Payment Date for the IPO Year will be $8,333.33, ($2,500 for each of the months of April
and May in the IPO Year and $3,333.33 for the month of June in the IPO Year), and the amount of the
payment in respect of the Annual Board Member Retainer that is payable with respect to each of the
third and fourth Quarterly Payment Dates for the IPO Year will be $10,000). If during the IPO Year
a Non-Employee Director did not serve as a member of the Board at any time during the calendar
quarter to which a quarterly payment would otherwise relate, such Non-Employee Director will not
receive any installment payment relating to his or her IPO Year Annual Board Retainer on such
Quarterly Payment Date. Amounts payable pursuant to this Section 2.4 are subject to reduction in
accordance with the provisions of Section 2.5.

     2.5 Payment of Annual Board Member Retainer Where Board Membership Terminates During
Calendar Year. Notwithstanding anything to the contrary in this Article II, and unless
otherwise provided by the Committee (as defined in Section 7.1), a Non-Employee Director whose
membership on the Board terminates during a calendar year (and whether at a time which is before,
at or after the IPO) will not receive payment of any portion of his or her Annual Board Member
Retainer for that calendar year which would otherwise be payable on a Quarterly Payment Date that
occurs following the date such Non-Employee Director’s membership on the Board terminates.

-3-

 

ARTICLE III

ANNUAL COMMITTEE CHAIR RETAINER

     3.1 Annual Committee Chair Retainer Generally. Subject to the remaining provisions of
this Article III, in the event of and effective as of the date of the IPO, for the period running
for the remainder of the IPO Year, and for subsequent periods consisting of each Post-IPO Year,
each Non-Employee Director who serves as the chair of a committee of the Board (a “Committee
Chair”) during any such period will receive an additional annual retainer in respect of his or her
service as such Committee Chair (“Annual Committee Chair Retainer”). The amount of the Annual
Committee Chair Retainer payable for any such period to each Non-Employee Director who is a
Committee Chair during such period (a “Non-Employee Director/Committee Chair”) will be equal to
$10,000, as modified by the remainder of this Article III. Except as otherwise provided in Section
5.5, the Annual Committee Chair Retainer to be paid to any Non-Employee Director/Committee Chair
will be payable in cash.

     3.2 Annual Committee Chair Retainer for IPO Year. For the IPO Year, the amount of the
Annual Committee Chair Retainer (the “IPO Year Annual Committee Chair Retainer”) will be an amount
equal to $10,000 multiplied by a fraction, the numerator of which is the number of months remaining
in the IPO Year after the occurrence of the IPO (including the month in which the IPO occurs) and
the denominator of which is 12. If a Non-Employee Director/Committee Chair is not a Committee
Chair on the date the IPO occurs but thereafter becomes a Committee Chair during the IPO Year, he
or she will not be entitled to an IPO Year Annual Committee Chair Retainer. The IPO Year Annual
Committee Chair Retainer will be paid in equal installments on each of the Quarterly Payment Dates
for the IPO Year which remain following the month in which the IPO occurs (thus, e.g., if the IPO
occurs in June of the IPO Year, the second, third and fourth Quarterly Payment Dates in the IPO
Year will not have yet occurred and will remain and so the IPO Year Annual Committee Chair Retainer
will be paid in three equal installments on those last three Quarterly Payment Dates for the IPO
Year).

     3.3 Annual Committee Chair Retainer Following IPO Year. If a Non-Employee
Director/Committee Chair is a Committee Chair at the beginning of any Post-IPO Year, such
Non-Employee Director/Committee Chair’s Annual Committee Chair Retainer for such Post-IPO Year will
be payable in four equal quarterly installments of $2,500 on each Quarterly Payment Date.

     3.4 Reduction and Payment of Annual Committee Chair Retainer Where Service as Committee
Chair Commences During Post-IPO Year. If a Non-Employee Director/Committee Chair is not a
Committee Chair at the beginning of a Post-IPO Year, but becomes a Committee Chair during the
course of such Post-IPO Year, such Non-Employee Director/Committee Chair’s Annual Committee Chair
Retainer for such Post-IPO Year will be subject to reduction and payment, subject to the provisions
of Section 3.5, as follows:

	 	(a)	 	a 0% reduction, if such Non-Employee Director/Committee Chair becomes a
Committee Chair before March 31 of such Post-IPO Year, in which case the Non-Employee
Director/Committee Chair will be paid $2,500 on each of the four Quarterly Payment
Dates occurring with respect to such Post-IPO Year;

-4-

 

	 	(b)	 	a 25% reduction, if such Non-Employee Director/Committee Chair becomes a
Committee Chair on or after March 31 of such Post-IPO Year but before June 30 of such
Post-IPO Year, in which case the Non-Employee Director/Committee Chair will be paid
$2,500 on each of the three remaining Quarterly Payment Dates occurring with respect to
such Post-IPO Year;
	 
	 	(c)	 	a 50% reduction, if such Non-Employee Director/Committee Chair becomes a
Committee Chair on or after June 30 of such Post-IPO Year but before September 30 of
such Post-IPO Year, in which case the Non-Employee Director/Committee Chair will be
paid $2,500 on each of the two remaining Quarterly Payment Dates occurring with respect
to such Post-IPO Year; and
	 
	 	(d)	 	a 75% reduction, if such Non-Employee Director/Committee Chair becomes a
Committee Chair on or after September 30 of such Post-IPO Year but before December 31
of such Post-IPO Year, in which case the Non-Employee Director/Committee Chair will be
paid $2,500 on the one remaining Quarterly Payment Date occurring with respect to such
Post-IPO Year.

     3.5 Payment of Annual Committee Chair Retainer Where Service as Committee Chair Terminates
During Calendar Year. Notwithstanding anything to the contrary in this Article III, and unless
otherwise provided by the Committee, a Non-Employee Director/Committee Chair whose service as a
Committee Chair terminates during a calendar year (whether an IPO Year or a Post-IPO Year) will not
receive payment of any portion of his or her IPO Year Annual Committee Chair Retainer or Annual
Committee Chair Retainer, as applicable, that would otherwise be payable on a Quarterly Payment
Date that occurs following the date such Non-Employee Director/Committee Chair’s service as a
Committee Chair terminates.

     3.6 Service as Committee Chair for Multiple Committees. In the event any Non-Employee
Director serves as a Committee Chair for more than one committee of the Board, the provisions of
this Article III will be applied separately to each situation of service as a Committee Chair with
a separate IPO Year Annual Committee Chair Retainer or Annual Committee Chair Retainer, as
applicable, being payable to him or her as a Committee Chair in each instance.

ARTICLE IV

MEETING PARTICIPATION COMPENSATION

     4.1 Compensation Generally. In the event of and commencing with and for periods after
the IPO, each Non-Employee Director will receive, as compensation in addition to all other
compensation provided for in this Plan, the meeting participation compensation provided for in
Sections 4.2 and 4.3 (“Meeting Participation Compensation”). Such Meeting Participation
Compensation will be payable on such schedule as is determined by the Company provided that Meeting
Participation Compensation will in all events be payable no later than the earlier of the first
Quarterly Payment Date next following by fourteen days or more the meeting to which the Meeting
Participation Compensation applies or March 15 of the calendar year immediately following the
calendar year in which such Meeting Participation Compensation was earned.

-5-

 

     4.2 Compensation for Participation in Board Meetings. Each Non-Employee Director will
receive, for participation as a member of the Board in meetings of the Board (a “Board Meeting”), a
per meeting fee of (a) $1,000 for each Board Meeting which the Non-Employee Director attends in
person or (b) $500 for each Board Meeting having a length of in excess of one hour in which the
Non-Employee Director participates by telephone conference call.

     4.3 Compensation for Participation in Committee Meetings. Each Non-Employee Director
will receive, for participation as a member of a committee of the Board in meetings of such
committee (a “Committee Meeting”), a per meeting fee of (a) $500 for each Committee Meeting which
the Non-Employee Director attends in person or (b) $500 for each Committee Meeting having a length
of in excess of one hour in which the Non-Employee Director participates by telephone conference
call.

ARTICLE V

EQUITY GRANTS

     5.1 Annual Grant of Units. Each Non-Employee Director will receive, in addition to
the other compensation provided for in this Plan, an annual grant (“Annual Unit Grant”) of
unrestricted Class A common units of the Partnership, or following the IPO the Partnership common
units of the type issued to and held by the public unitholders of the Partnership (the “Units”),
valued in the aggregate amount of $20,000 for each Pre-IPO Year or $50,000 for each of the IPO Year
and any Post-IPO Year, with the number of Units to be granted and the timing of such grants
determined in accordance with the provisions of this Article V. For purposes of valuing such
grants and otherwise of this Plan, “Fair Market Value” means (i) the closing sales price of a Unit
on the principal national securities exchange or other market in which trading in Units occurs on
the applicable date (or if there is no trading in the Units on such date, on the next preceding
date on which there was trading) as reported in The Wall Street Journal (or other reporting service
approved by the Board or, if applicable, the committee of the Board appointed to administer the
LTIP (as defined in Section 5.8)), or (ii) in the event the Units are not traded on a national
securities exchange or other market at the time a determination of fair market value is required to
be made, the determination of fair market value will be made in good faith by the Board or, if
applicable, such committee.

     5.2 Granting of Annual Unit Grant Where Board Membership Runs from Beginning of Calendar
Year. If a Non-Employee Director is a member of the Board from the beginning of a calendar
year, the Annual Unit Grant with respect to such calendar year will be made in four equal quarterly
installments of $5,000 for a Pre-IPO Year or $12,500 for an IPO Year or Post-IPO Year, as
applicable (the “Quarterly Unit Grant Value”), on each Quarterly Payment Date with respect to the
calendar year, subject to the provisions of Section 5.4. The number of Units granted on each
Quarterly Payment Date with respect to a calendar year will be such number of whole Units as have
an aggregate Fair Market Value equal to the Quarterly Unit Grant Value for such calendar year on
such Quarterly Payment Date (rounded up to the nearest whole Unit). In this regard, it is
recognized that the timing of the IPO in an IPO Year may result in there having been grants of
Units made at the lower Quarterly Unit Grant Value of $5,000 on one or more Quarterly Payment Dates
and, in that event, any $7,500 shortfalls in the Quarterly Unit Grant Value for each Quarterly
Payment Date falling prior to the IPO shall be aggregated and such aggregated shortfalls shall be
made up with an additional grant of Units to the Non-Employee

-6-

 

Director which have a Fair Market Value equal to such aggregated shortfalls. Any such make-up
grant will be made on the first Quarterly Payment Date immediately following the occurrence of the
IPO, in addition to any Unit grant that is regularly scheduled for such date.

     5.3 Reduction and Granting of Annual Unit Grant Where Board Membership Commences During
Calendar Year. If a Non-Employee Director is not a member of the Board at the beginning of a
calendar year, but becomes a member of the Board during the course of such calendar year, such
Non-Employee Director’s Annual Unit Grant for such calendar year will be subject to reduction and
granting, subject to the provisions of Section 5.4, as follows:

	 	(a)	 	a 0% reduction, if such Non-Employee Director becomes a member of the Board
before March 31 of such calendar year, in which case the Non-Employee Director will be
granted, on each of the four Quarterly Payment Dates occurring with respect to such
calendar year, such number of whole Units as have an aggregate Fair Market Value equal
to the Quarterly Unit Grant Value for such calendar year on such Quarterly Payment Date
(rounded up to the nearest whole Unit);
	 
	 	(b)	 	a 25% reduction, if such Non-Employee Director becomes a member of the Board on
or after March 31 of such calendar year but before June 30 of such calendar year, in
which case the Non-Employee Director will be granted, on each of the three remaining
Quarterly Payment Dates occurring with respect to such calendar year, such number of
whole Units as have an aggregate Fair Market Value equal to the Quarterly Unit Grant
Value for such calendar year on such Quarterly Payment Date (rounded up to the nearest
whole Unit);
	 
	 	(c)	 	a 50% reduction, if such Non-Employee Director becomes a member of the Board on
or after June 30 of such calendar year but before September 30 of such calendar year,
in which case the Non-Employee Director will be granted, on each of the two remaining
Quarterly Payment Dates occurring with respect to such calendar year, such number of
whole Units as have an aggregate Fair Market Value equal to the Quarterly Unit Grant
Value for such calendar year on such Quarterly Payment Date (rounded up to the nearest
whole Unit); and
	 
	 	(d)	 	a 75% reduction, if such Non-Employee Director becomes a member of the Board on
or after September 30 of such calendar year but before December 31 of such calendar
year, in which case the Non-Employee Director will be granted, on the one remaining
Quarterly Payment Date occurring with respect to such calendar year, such number of
whole Units as have an aggregate Fair Market Value equal to the Quarterly Unit Grant
Value for such calendar year on such Quarterly Payment Date (rounded up to the nearest
whole Unit).

     5.4 Effect on Annual Unit Grant Where Board Membership Terminates During Calendar
Year. Notwithstanding anything to the contrary in this Article V, and unless otherwise
provided by the Committee, a Non-Employee Director whose membership on the Board terminates during
a calendar year will not be granted any portion of his or her Annual Unit Grant for that calendar
year which would otherwise be granted on a Quarterly Payment Date that occurs following the date
such Non-Employee Director’s membership on the Board terminates.

-7-

 

     5.5 Additional Grants of Units in Lieu of Cash Compensation. In addition to the
Annual Unit Grant and any Election Unit Grant (as defined in Section 5.6), any Non-Employee
Director may elect from time to time to receive any or all of the cash compensation payable
hereunder, for the Annual Board Member Retainer, the Annual Committee Chair Retainer and/or as
Meeting Participation Compensation, in Units instead. For purposes of this Plan, cash compensation
to which an election made in accordance with the provisions of this Section 5.5 applies shall be
referred to as “Elected Unit Compensation.” Any such election with respect to Elected Unit
Compensation shall be made in advance of the calendar year in which it is to be earned or, if
later, in advance of the Non-Employee Director’s initial appointment to serve as a member of the
Board and must otherwise comply with the procedures therefor established from time to time by the
Committee (as defined in Section 7.1). In the event of such an election by a Non-Employee
Director, the Non-Employee Director will be granted Units in place of any such Elected Unit
Compensation on the Quarterly Payment Date on which such Elected Unit Compensation would otherwise
have been paid in cash. The number of Units to be granted to a Non-Employee Director on a
Quarterly Payment Date pursuant to an election made in accordance with this Section 5.5 will be
such number of whole Units as have an aggregate Fair Market Value equal to the cash amount of such
Elected Unit Compensation on such Quarterly Payment Date (rounded up to the nearest whole Unit).
If a Non-Employee Director who has made an election pursuant to this Section 5.5 ceases to be a
member of the Board prior to the payment of any Elected Unit Compensation in Units, such unpaid
Elected Unit Compensation will not be satisfied in Units and instead will be paid in cash within
thirty days after the Non-Employee Director ceases to be a member of the Board or, if earlier, by
March 15 of the calendar year immediately following the calendar year in which such compensation
was earned.

     5.6 Discretionary Grant of Units Upon Initial Election as a Non-Employee Director. In
addition to the Annual Unit Grant pursuant to Section 5.1, the Board may, in its discretion, make a
grant of Units (an “Election Unit Grant”) to a Non-Employee Director in connection with his initial
election as a member of the Board. The Board shall establish the amount and terms (including,
without limitation, any vesting requirements or other conditions) of any such grant in its
discretion.

     5.7 Certain Start-Up Provisions Regarding Grants of Units. Notwithstanding anything
to the contrary in this Plan, the following start-up provisions regarding grants of Units as
provided in this Article V shall apply:

	 	(a)	 	The provisions of Sections 5.2, 5.3, 5.4 and 5.5 shall be applicable for the
grants of Units described therein for calendar year 2011 and subsequent calendar years
and not before calendar year 2011.
	 
	 	(b)	 	A Non-Employee Director’s Annual Unit Grant with respect to a calendar year
prior to calendar year 2011 (a “Pre-2011 Calendar Year”) during which he or she has
served as a member of the Board will be made to him or her on December 1 of such
Pre-2011 Calendar Year. If such December 1 is not a business day, such Annual Unit
Grant will be made on the next business day immediately following such December 1. If
a Non-Employee Director has remained a member of the Board continuously throughout such
Pre-2011 Calendar Year to which an Annual Unit Grant relates until and on December 1,
the number of Units that will be

-8-

 

	 	 	 	granted to him or her in such Annual Unit Grant will be comprised of a number of
Units equal to $20,000 in the case of a Pre-2011 Calendar Year which is a Pre-IPO
Year or $50,000 in the case of a Pre-2011 Calendar Year which is an IPO Year, as
applicable, divided by the Fair Market Value of a Unit on the date the Annual Unit
Grant is made, rounded up to the nearest whole Unit (a “Full Pre-2011 Annual Unit
Grant”). If a Non-Employee Director has been a member of the Board for only a
portion of a Pre-2011 Calendar Year from the beginning thereof to December 1
thereof, such Non-Employee Director’s Annual Unit Grant with respect to such
Pre-2011 Calendar Year will be equal to a Full Pre-2011 Annual Unit Grant pro-rated
for his or her full months of service on the Board during such Pre-2011 Calendar
Year (e.g., if such service on the Board is from March 15 to October 15 of a
Pre-2011 Calendar Year, such Non-Employee Director will have had 6 full months of
service (April through September) or 50% of the 12 months in the Pre-2011 Calendar
Year, and hence will have an Annual Unit Grant equal to 50% of a Full Pre-2011
Annual Unit Grant). In determining such full months of service where a Non-Employee
Director has been a member of the Board for only a portion of a Pre-2011 Calendar
Year from the beginning thereof to December 1 thereof, the month of December of such
Pre-2011 Calendar Year will be treated as a month of service on the Board if (and
only if) such Non-Employee Director is a member of the Board on December 1 of such
Pre-2011 Calendar Year. In this regard, if the timing of the IPO in an IPO Year
which is a Pre-2011 Calendar Year is such that it falls after the December 1 grant
date and as a result thereof the Annual Unit Grant made on such December 1 is less
than the Annual Unit Grant ultimately applicable, the Company shall make a further
grant of Units on the date of the IPO having a Fair Market Value on the date of the
IPO equal to the amount by which the December 1 grant was less than the Annual Unit
Grant ultimately applicable.

     5.8 Terms and Conditions for and Full Vesting of Grants. For purposes of this Plan,
each grant of Units made as provided in this Article V to a Non-Employee Director will be made
pursuant to and in accordance with the terms and conditions set forth in this Plan and in the
Oxford Resource Partners, LP Long-Term Incentive Plan, as currently in effect and as it may
hereafter be amended (the “LTIP”), and will be 100% vested on the date it is made. However, the
provisions of this Plan providing specifically for grants of Units in certain circumstances to
Non-Employee Directors shall not restrict or prevent any other awards of Units not referenced in or
made pursuant to this Plan which are otherwise made to Non-Employee Directors on a discretionary
basis under the LTIP.

     5.9 Unitholder Agreement. Unless otherwise expressly permitted or directed by the
Committee, any Non-Employee Director who acquires Units as provided in this Article V will be
required to execute and comply with the terms of a Director Unitholder Agreement with the Company
and the Partnership, in such form as is approved from time to time by the Committee.

ARTICLE VI

REIMBURSEMENT OF EXPENSES

     While a Non-Employee Director is serving as a member of the Board, the Non-Employee

-9-

 

Director will be reimbursed for his or her business-related expenses incurred in carrying out
his or her duties as a member of the Board, including but not limited to all reasonable and
necessary expenses incurred by the Non-Employee Director to attend Board and Board committee
meetings or otherwise fulfill his or her duties, in accordance with the Company’s expense
reimbursement policy as in effect at the time an expense is incurred.

ARTICLE VII

GENERAL PROVISIONS

     7.1 Administration. The Plan will be administered by a committee of, and appointed
by, the Board (the “Committee”). In the absence of the Board’s appointment of a committee to
administer the Plan, the Board will serve as the Committee. Effective upon the IPO, the
“Committee” will be the Compensation Committee of the Board. The Committee will have the complete
authority and power to interpret this Plan, prescribe, amend and rescind rules relating to the
administration of this Plan, determine a Non-Employee Director’s rights under this Plan (including
such rights to receive payments of any cash compensation and/or grants of Units hereunder, and the
amounts thereof), and take all other actions necessary or desirable for the administration of this
Plan. All actions and decisions of the Committee will be final and binding upon the Company, the
Partnership, the Non-Employee Directors, and all other persons. The Committee may delegate to
officers and employees of the Company, pursuant to a written delegation, the authority to perform
specified ministerial functions under this Plan. Any actions taken by any officers or employees of
the Company pursuant to such written delegation of authority will be deemed to have been taken by
the Committee. No member of the Committee, nor any officer or employee of the Company acting on
behalf of the Committee, will be personally liable for any action, determination, or interpretation
taken or made in good faith with respect to this Plan, and all members of the Committee, and each
officer of the Company and each employee of the Company acting on behalf of the Committee, will, to
the extent permitted by law, be fully indemnified and protected by the Company in respect of any
such action, determination or interpretation.

     7.2 Unfunded Obligations. The amounts to be paid and Units to be granted to
Non-Employee Directors pursuant to this Plan are unfunded obligations of the Company. The Company
is not required to segregate any monies or other assets from its general funds, to create any
trusts or to make any special deposits with respect to these obligations.

     7.3 No Additional Rights. The compensation amounts provided for herein compensate a
Non-Employee Director for all of such Non-Employee Director’s professional duties as a member of
the Board and any committees thereof and no additional or separate compensation (other than as
described in this Plan) will be payable to a Non-Employee Director for his or her service on the
Board or committees of the Board (including as a Committee Chair), attendance at and/or
participation in meetings of the Board or committees of the Board, or informal advisory time. None
of this Plan, the LTIP or any Annual Unit Grant or other compensation provided for or granted
hereunder or thereunder will confer upon any Non-Employee Director the right to continue to serve
as a member of the Board or any committee of the Board.

-10-

 

     7.4 Nonassignment. Except by will or the laws of descent and distribution, the right
of a Non-Employee Director to the receipt of any amounts under this Plan may not be assigned,
transferred, pledged or encumbered in any manner nor will such right or other interests be subject
to attachment, execution or other legal process.

     7.5 Incapacity of Non-Employee Director. If the Committee finds that any Non-Employee
Director to whom a payment is due under this Plan is unable to care for his or her affairs because
of illness or accident or is under a legal disability, unless a prior claim therefor has been made
by a duly appointed legal representative, any payment due may, at the discretion of the Committee,
be paid to the spouse, child, parent or brother or sister of such Non-Employee Director or to any
other person whom the Committee has determined has incurred expense for such Non-Employee Director.
Any such payment will be a complete discharge of the obligations of the Company with respect to
such payment under the provisions of this Plan.

     7.6 Compliance with Other Laws and Regulations. Notwithstanding anything contained
herein to the contrary, neither the Company nor the Partnership will be required to sell or issue
Units under this Plan if the issuance thereof would constitute a violation by a Non-Employee
Director, the Company or the Partnership of any provisions of any law or regulation of any
governmental authority or any national securities exchange or inter-dealer quotation system or
other forum in which Units are quoted or traded; and, as a condition of any sale or issuance of
Units hereunder, the Committee may require such agreements or undertakings, if any, as the
Committee may deem necessary or advisable to assure compliance with any such law or regulation.
This Plan, the Units and other compensation provided hereunder, and the obligation of the Company
or the Partnership to sell or deliver Units hereunder, will be subject to all applicable federal
and state laws, rules and regulations and to such approvals by any government or regulatory agency
as may be required.

     7.7 Termination and Amendment. The Board may from time to time amend, suspend, or
terminate this Plan, in whole or in part, and if this Plan is suspended or terminated the Board may
thereafter reinstate any or all of its provisions. Notwithstanding the foregoing, no amendment,
suspension or termination of this Plan may impair the right of a Non-Employee Director to receive
any benefit accrued hereunder prior to the effective date of such amendment, suspension or
termination.

     7.8 Applicable Law. Except to the extent preempted by applicable federal law, this
Plan will be governed by and construed in accordance with the laws of the State of Delaware.

     7.9 Section 409A Matters. For purposes of this Plan, a Non-Employee Director’s
membership on the Board will not be considered to have terminated unless a separation from service,
within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended
(the “Code”), and any regulations issued thereunder, has occurred. This Plan is intended to
provide for compensation that constitutes one or more “short term deferrals” within the meaning of
Section 409A of the Code and any regulations issued thereunder, so that it will be exempt from
Section 409A of the Code. Accordingly, this Plan will be construed, interpreted and operated in a
manner consistent with such intent. For purposes of Section 409A of the Code, to the extent
necessary, each amount of compensation payable hereunder shall be considered a separate payment and
a separate short term deferral.

-11-

 

     IN
WITNESS WHEREOF, the Company has caused this Plan to be executed
as of June 18,
2010, effective as of the date first set forth above, by its President and Chief Executive Officer
pursuant to action taken by the Board.

	 	 	 	 	 
	 	OXFORD RESOURCES GP, LLC

 	 
	 	By:  	/s/ Charles
C. Ungurean	 
	 	 	Charles C. Ungurean 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	ATTEST:

 	 
	By:  	/s/ Michael B. Gardner	 
	 	Michael B. Gardner, Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]