Document:

EXECUTION
VERSION

 

SECURITIES
PURCHASE AGREEMENT dated as of January 21, 2016 (this “Agreement”) between Wexford Capital LP, a Delaware
limited partnership, Wexford Rhino Partners, L.P., a Delaware limited partnership, Rhino Energy Holdings LLC, a Delaware limited
liability company, and Rhino Resource Holdings LLC, a Delaware limited liability company (individually, a “Seller”
and collectively, the “Sellers”), and Royal Energy Resources, Inc., a Delaware corporation (the “Purchaser”,
together with the Sellers, the “Parties”).

 

WHEREAS,
the Purchaser seeks to purchase from each Seller, and each Seller seeks to sell to the Purchaser, (i) the issued and outstanding
membership units representing limited partnership interests in the general partner of the Company (as defined below), Rhino GP
LLC, a Delaware limited liability company (“Rhino GP”) (the “GP Units”) and (ii) the common
units (the “Common Units”) and the subordinated units (the “Subordinated Units,” and together
with the Common Units and the GP Units, the “Purchased Units”) representing limited partnership interests in
Rhino Resource Partners LP (the “Company”), in each case, as set forth under such Seller’s name in Schedule
I attached hereto pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the
“Securities Act”), in accordance with the terms of this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual benefits representations, warranties, conditions, covenants and agreements
contained herein, the parties hereto hereby agree as set forth below.

 

ARTICLE
I

purchase
and sale OF THE PURCHASED UNITS

 

1.1Purchase
and Sale of Purchased Units.

 

Subject
to the terms and conditions of this Agreement:

 

(i)
at the First Closing (as defined below), (A) each Seller shall sell, convey, assign and deliver to the Purchaser the Common Units
(the “First Closing Units”) and any and all rights and benefits incident to the ownership thereof (including,
without limitation, accrued and unpaid dividends thereon) set forth under such Seller’s name of Schedule I and (B) the Purchaser
shall (1) purchase from each Seller the First Closing Units for the purchase price for the applicable First Closing Units set
forth under such Seller’s name on Schedule I (the “First Closing Purchase Price”) by wire transfer of
immediately available funds to an account or accounts designated by the applicable Seller and (2) pay to Davis Gillett Mottern
& Sims, LLC,as escrow agent of the Parties (the “Escrow Agent”), the Second Closing Purchase Price (as
defined below) (the “Escrow Amount”), for deposit into the Escrow Agent’s IOLTA account (the “Escrow
Account”), which Escrow Amount shall be held and disposed of pursuant to the terms of an escrow agreement, dated as
of the First Closing Date, among the Escrow Agent, Purchaser and Sellers, substantially in the form attached as Exhibit A
hereto (the “Escrow Agreement”), by wire transfer of immediately available funds to the Escrow Account;

 

(ii)
at the Second Closing (as defined below), (A) each Seller shall sell, convey, assign and deliver to the Purchaser the GP Units
and the Subordinated Units (together, the “Second Closing Units”) and any and all rights and benefits incident
to the ownership thereof (including, without limitation, accrued and unpaid dividends thereon) set forth under such Seller’s
name of Schedule I and (B) the Purchaser shall purchase from each Seller such Second Closing Units for the purchase price for
such Second Closing Units, as applicable, set forth under such Seller’s name on Schedule I (the “Second Closing
Purchase Price”, together with the First Closing Purchase Price, the “Purchase Price”) by wire transfer
of immediately available funds by the Escrow Agent from the Escrow Account, pursuant to written instructions from the Purchaser
and each Seller to an account or accounts designated by the applicable Seller.

 

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(iii)
The Purchaser and the Sellers mutually agree that the allocation of the Purchase Price in accordance with Section 1273(c)(2) of
the Code and Treasury Regulation Section 1.1273-2(h) shall be an aggregate amount of $3,500,000 allocated to the Common Units,
$200,00 allocated to the Subordinated Units, and $800,00 allocated to the GP Units, and neither the Purchaser nor the Sellers
shall take any position inconsistent with such allocation in any tax return or in any judicial or administrative proceeding in
respect of taxes.

 

1.2Closings.

 

(a)The
date and time of the initial closing (the “First Closing”) shall be 9:00 am, New York City time, on the date
hereof (or such other time as the parties may agree) (the “ First Closing Date”) after notification of satisfaction
or waiver (by the applicable Party) of the conditions to the closing set forth in Sections 4.1 and 4.2 below at the office of
Schulte Roth & Zabel LLP, 919 Third Avenue, New York, New York 10022. All actions taken at the Closing shall be deemed to
have occurred simultaneously.

 

(b)The
date and time of the second closing (the “Second Closing”) shall be 9:00 am, New York City time, on a date
mutually agreed by the Purchaser and the Sellers no later than sixty (60) days from the First Closing Date (the “Second
Closing Date”, together with the First Closing Date, the “Closing Dates” and each a “Closing
Date”) after notification of satisfaction or waiver (by the applicable Party) of the conditions to the closing set forth
in ARTICLE IV below at the office of Schulte Roth & Zabel LLP, 919 Third Avenue, New York, New York 10022. All actions taken
at the Second Closing shall be deemed to have occurred simultaneously.

 

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES OF THE SELLERS

 

Each
Seller, severally and not jointly, represents and warrants with respect to only itself to the Purchaser as of the date, and, to
the extent applicable, as of each Closing Date, hereof as set forth below in this Article II.

 

2.1Organization

 

Such
Seller is an entity duly organized and validly existing under the laws of the jurisdiction of its formation.

 

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2.2Title
to Purchased Units.

 

Such
Seller is the owner of the Purchased Units to be sold by it pursuant to this Agreement and owns the Purchased Units free from
all taxes, liens, claims, encumbrances, charges, security interests, pledges, escrows, lock-up arrangements and restrictions on
transfer (except for restrictions or limitations on transfer imposed by applicable federal or state securities laws and the requirement
that the Purchaser execute and deliver joinders to the applicable partnership and limited liability company agreements) (“Claims”).
The Purchased Units (other than the GP Units) to be sold by the Seller are issued in book-entry form by the Company’s transfer
agent. The GP Units to be sold by the Seller are not in certificated form, and are evidenced by the Second Amended and Restated
Limited Liability Company Agreement for Rhino GP dated November 15, 2013. Such Seller has good and valid title to the Purchased
Units. Other than this Agreement, there are no outstanding rights, options, subscriptions or other agreements or commitments (oral
or written) by which such Seller is bound relating to its sale or transfer of the Purchased Units, and, other than this Agreement,
the Purchased Units are not subject to any other purchase agreement, buy/sell agreement, proxy, voting agreement, voting trust
agreement, right of first refusal, redemption or any other similar agreement or lock-up or other restriction on their transfer
or sale or on the ability of the Purchaser to sell or transfer the Purchased Units. Delivery to the Purchaser of the Purchased
Units purchased by the Purchaser will (i) pass good and marketable title to the Purchased Units to the Purchaser, free and clear
of all Claims (assuming that the Purchaser is a bona fide purchaser within the meaning of Section 8-302 of the New York Uniform
Commercial Code regardless whether such section is applicable), and (ii) convey, free and clear of all Claims, any and all rights
and benefits incident to the ownership of such Purchased Units. No representations are made hereunder or otherwise in this Agreement
as to the effect of the vesting, forfeiture and other terms of 60,976 Common Units granted pursuant to certain stock incentive
plans and grant agreements (the “RSUs”) and which are subject to vesting and forfeiture in certain circumstances that
may include a sale of the Sellers’ interest in Rhino GP.

 

2.3Authority.

 

Such
Seller has all requisite power and authority to execute and deliver this Agreement and to carry out and perform all of its obligations
under the terms of this Agreement, including, without limitation, the full power and authority to sell and transfer the Purchased
Units. This Agreement has been duly and validly authorized, executed and delivered on behalf of such Seller, and this Agreement
constitutes the legal, valid and binding obligation of such Seller enforceable against such Seller in accordance with its terms,
except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies.

 

2.4Noncontravention.

 

The
execution, delivery and performance by such Seller of this Agreement and the consummation by such Seller of the transactions contemplated
hereby will not (a) result in a violation of the organizational documents of such Seller, (b) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Seller is a party, or (c) result
in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable
to such Seller, except in the case of clauses (b) and (c) above, for such conflicts, defaults, rights or violations which would
not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Seller
to perform its obligations hereunder; provided, however, that, for the avoidance of doubt, no such representation
is made with respect to “change of control” and similar provisions in material agreements of the Company and Rhino
GP that may occur due to the transfer of Purchased Units in connection herewith.

 

2.5Consents.

 

Except
for the approvals required to be obtained by the Closings in accordance with Article IV, no consent, approval, permit, order,
notification or authorization of, or any exemption from registration, declaration or filing with, any person (governmental or
private) is required in connection with the execution, delivery and performance by such Seller of this Agreement or the consummation
by such Seller of the transactions contemplated hereby.

 

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2.6No
General Solicitation.

 

Such
Seller did not offer or sell the Purchased Units by any form of general solicitation or general advertising.

 

2.7No
Brokers.

 

The
Sellers have not taken any action that would give rise to any claim by any person for brokerage commissions, finder’s fees
or similar payments relating to this Agreement or the transactions contemplated hereby.

 

2.8No
Other Representations and Warranties.

 

THE
REPRESENTATIONS AND WARRANTIES MADE BY THE SELLERS IN THIS ARTICLE II ARE THE EXCLUSIVE REPRESENTATIONS AND WARRANTIES MADE BY
THE SELLERS. EACH SELLER HEREBY DISCLAIMS ANY OTHER EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES NOT EXPRESSLY INCLUDED IN
THIS AGREEMENT WHETHER OR NOT MADE, COMMUNICATED OR FURNISHED (ORALLY OR IN WRITING) TO THE PURCHASER OR THEIR REPRESENTATIVES,
INCLUDING ANY WARRANTY REGARDING ANY PRO FORMA FINANCIAL INFORMATION, FINANCIAL PROJECTIONS OR OTHER FORWARD-LOOKING STATEMENTS
PROVIDED BY OR ON BEHALF OF THE SELLERS, RHINO GP, THE COMPANY OR ITS SUBSIDIARIES, WARRANTY OF MERCHANTABILITY, WARRANTY OF FITNESS
FOR A PARTICULAR PURPOSE, OR ANY IMPLIED OR STATUTORY WARRANTY WHATSOEVER WITH RESPECT TO THE SELLERS, RHINO GP, THE COMPANY,
ANY OF THE COMPANY’S SUBSIDIARIES AND ANY OF RESPECTIVE ASSETS OR PROPERTIES, INCLUDING ANY REAL OR PERSONAL PROPERTY OR
ANY FIXTURES OF THE SELLERS, RHINO GP, THE COMPANY, OR ANY OF THE COMPANY’S SUBSIDIARIES.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

The
Purchaser represents and warrants to each Seller as of the date hereof, and, to the extent applicable, as of each Closing Date,
as set forth below in this Article III.

 

3.1Organization

 

The
Purchaser is a natural person or an entity duly organized and validly existing under the laws of the jurisdiction of its formation.
The Purchaser has the legal capacity and right to execute, deliver, enter into, consummate and perform this Agreement.

 

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3.2Authority.

 

The
Purchaser has all requisite power and authority execute and deliver this Agreement and to carry out and perform all of its obligations
under the terms of this Agreement, including, without limitation, the full power and authority to purchase the Purchased Units.
This Agreement has been duly and validly authorized, executed and delivered on behalf of the Purchaser, and this Agreement constitutes
the legal, valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms, except
as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies.

 

3.3Accredited
Investor Status; Affiliate Status of Sellers.

 

The
Purchaser is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the Securities
Act. The Purchaser acknowledges that the Sellers may be deemed an “affiliate” of the Company, as such term is defined
in Rule 144 of the Securities Act.

 

3.4Noncontravention.

 

The
execution, delivery and performance by the Purchaser of this Agreement and the consummation by the Purchaser of the transactions
contemplated hereby will not (a) result in a violation of the organizational documents of the Purchaser, (b) conflict with, or
constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Purchaser
is a party, or (c) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state
securities laws) applicable to the Purchaser, except in the case of clauses (b) and (c) above, for such conflicts, defaults, rights
or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the
ability of the Purchaser to perform its obligations hereunder.

 

3.5Purchaser
Status.

 

The
Purchaser (a) is a sophisticated person with respect to the purchase of the Purchased Units; (b) has had the opportunity to ask
questions of and receive answers from representatives of the Sellers, the Company and each of their respective officers, directors,
employees and agents concerning the Company in order for the Purchaser to make an informed decision with respect to its investment
in the Purchased Units; (c) has adequate information concerning the business and financial condition of the Company to make an
informed decision regarding the purchase of the Purchased Units; (d) is able to bear the economic risk associated with the purchase
of the Purchased Units, has such knowledge and experience, and has undertaken transactions regarding investments of similar nature,
so as to be aware of the risks and uncertainties inherent in the purchase of the Purchased Units; and (e) has independently and
without reliance upon the Sellers, and based on such information as the Purchaser has deemed appropriate, made its own analysis
and decision to enter into this Agreement, except that the Purchaser has relied upon the Sellers’ express representations,
warranties and covenants in this Agreement and would not enter into this Agreement in the absence of such representations, warranties
and covenants. The Purchaser acknowledges that no Seller has given the Purchaser any investment advice, credit information or
opinion on whether the purchase of the Purchased Units is prudent. The Purchaser acknowledges and agrees that the Purchased Units
have not been registered for sale or resale under the Securities Act and are being transferred under this Agreement pursuant to
an exemption from the registration requirements of the Securities Act. The Purchaser is acquiring the Purchased Units for its
own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant
to sales registered or exempted under the Securities Act. The Purchaser is acquiring the Purchased Units hereunder in the ordinary
course of its business. The Purchaser does not presently have any agreement or understanding, directly or indirectly, with any
person or entity to distribute any of the Purchased Units. The Purchaser acknowledges that 60,976 RSUs are subject to vesting
and forfeiture provisions, and that the transfer of the Second Closing Units may cause certain “change of control”
and similar provisions in material agreements of the Company and Rhino GP to apply (including, without limitation, constituting
a change of control and resulting in an event of default under the Credit Agreement, dated April 28, 2015, as amended and restated,
among Rhino Energy LLC, PNC Bank National Associated, as administrative agent, and associated Banks (the “Credit Agreement”)).

 

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3.6Consents.

 

Except
for the approvals required to be obtained by the Closings in accordance with Article IV, no consent, approval, permit, order,
notification or authorization of, or any exemption from registration, declaration or filing with, any person (governmental or
private) is required in connection with the execution, delivery and performance by the Purchaser of this Agreement or the consummation
by the Purchaser of the transactions contemplated hereby.

 

3.7No
General Solicitation.

 

Neither
the Purchaser, nor any of its officers, directors, employees, agents, representatives, stockholders or partners, has either directly
or indirectly, including, but not limited to, through a broker or finder, (a) engaged in any general solicitation, or (b) published
any advertisement in connection with the offer and sale of the Purchased Units. The Purchaser is not purchasing the Purchased
Units pursuant to any form of general solicitation or general advertising.

 

3.8No
Brokers.

 

The
Purchaser has not taken any action that would give rise to any claim by any person for brokerage commissions, finder’s fees
or similar payments relating to this Agreement or the transactions contemplated hereby.

 

3.9Purchaser
Acknowledgement.

 

The
Purchaser acknowledges and agrees that (i) the representations and warranties set forth in ARTICLE II constitute the sole and
exclusive representations and warranties of the Sellers to such Purchaser in connection with the transactions contemplated by
this Agreement, and there are no other representations, warranties, covenants, understandings or agreements, written or oral,
express or implied, at law or in equity, between the parties or their respective Affiliates and representatives, except as expressly
set forth in this Agreement and (ii) it will have no right or remedy arising out of, and expressly disclaim any reliance upon,
and the Sellers, Rhino GP, the Company and their respective Affiliates and representatives will not be subject to any liability
in respect of, any projections, forward-looking statements or similar statement, written or oral, express or implied, at law or
in equity, between such parties or their respective Affiliates and representatives. The Purchaser acknowledges and agrees that
none of the Sellers, Rhino GP, the Company, its subsidiaries, officers of the Sellers, Rhino GP, the Company or its subsidiaries,
directors of the Sellers, Rhino GP, the Company or its subsidiaries or any other person has made any representation or warranty,
expressed or implied, as to the accuracy or completeness of any information regarding the Sellers, Rhino GP, the Company, or its
subsidiaries furnished or made available to the Purchaser and its representatives.

 

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ARTICLE
IV

CONDITIONS
TO CLOSING

 

4.1Conditions
to the Sellers’ Obligation to Sell.

 

(a)The
obligation of each Seller hereunder to sell such First Closing Units as set forth under such Seller’s name of Schedule I
to the Purchaser on the First Closing Date is subject to the satisfaction, on or before the First Closing Date, of each of the
following conditions, provided, however, that these conditions are for such Seller’s sole benefit and may
be waived by such Seller at any time in its sole discretion by providing the Purchaser with prior written notice thereof:

 

i.The
Purchaser shall have executed and delivered this Agreement to such Seller and the Escrow Agreement to the Escrow Agent.

 

ii.The
Purchaser and the Company shall have executed and delivered a joinder agreement to the grant agreement related to the RSUs in
a form reasonably satisfactory to the Sellers.

 

iii.Contemporaneously
with the First Closing, the Purchaser shall have delivered the First Closing Purchase Price with respect to the First Closing
Units being purchased in the First Closing to such Seller by wire transfer of immediately available funds pursuant to the written
wire instructions provided by such Seller.

 

iv.Contemporaneously
with the First Closing, the Purchaser shall have delivered the Escrow Amount to the Escrow Agent in the Escrow Account by wire
transfer of immediately available funds.

 

v.The
representations and warranties of the Purchaser shall be true and correct in all respects as of the date when made and as of the
First Closing Date as though made at that time, and the Purchaser shall have performed, satisfied and complied in all respects
with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser
at or prior to the First Closing Date.

 

vi.The
Purchaser shall have obtained or made all governmental, regulatory or third party consents, waivers, approvals, licenses, authorizations
and declarations, filings, registrations, and notifications, if any, necessary for the sale of the First Closing Units and such
consents, waivers, approvals, licenses, authorizations and declarations, filings, registrations, and notifications in full force
and effect, and all waiting periods required by any law shall have expired.

 

vii.No
legal proceeding shall be pending or threatened before any governmental or regulatory authority which would prevent the performance
of transaction contemplated by the Agreement, declare unlawful the transactions contemplated hereby, cause such transactions to
be rescinded or adversely affect any Seller, Rhino GP or the Company.

 

(b)The
obligation of each Seller hereunder to sell such Second Closing Units as set forth under such Seller’s name of Schedule
I to the Purchaser on the Second Closing Date is subject to the satisfaction, on or before the Second Closing Date, of each of
the following conditions, provided, however, that these conditions are for such Seller’s sole benefit and
may be waived by such Seller at any time in its sole discretion by providing the Purchaser with prior written notice thereof:

 

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i.The
First Closing shall have been consummated in accordance with this Agreement.

 

ii.Contemporaneously
with the Second Closing, the Escrow Agent shall have delivered the Second Closing Purchase Price with respect to the Purchased
Units being purchased in the Second Closing to such Seller by wire transfer of immediately available funds pursuant to the written
wire instructions provided by such Seller.

 

iii.The
Purchaser shall have obtained or made all governmental, regulatory or third party consents, waivers, approvals, licenses, authorizations
and declarations, filings, registrations, and notifications, if any, necessary for the sale of the Second Closing Units and such
consents, waivers, approvals, licenses, authorizations and declarations, filings, registrations, and notifications in full force
and effect, and all waiting periods required by any law shall have expired.

 

iv.The
representations and warranties of the Purchaser shall be true and correct in all respects as of the Second Closing Date as though
made at that time, and the Purchaser shall have performed, satisfied and complied in all respects with the covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to the Second
Closing Date.

 

v.No
legal proceeding shall be pending or threatened before any governmental or regulatory authority which would prevent the performance
of transaction contemplated by the Agreement, declare unlawful the transactions contemplated hereby, cause such transactions to
be rescinded or adversely affect any Seller, Rhino GP or the Company.

 

4.2Conditions
to the Purchaser’s Obligation to Purchase.

 

(a)The
obligation of the Purchaser hereunder to purchase the First Closing Units on the First Closing Date is subject to the satisfaction,
on or before the First Closing Date, of each of the following conditions, provided, however, that these conditions
are for the Purchaser’s sole benefit and may be waived by the Purchaser at any time in its sole discretion by providing
the Sellers with prior written notice thereof:

 

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i.Each
Seller shall have executed and delivered this Agreement to the Purchaser and the Escrow Agreement to the Escrow Agent.

 

ii.The
representations and warranties of each Seller shall be true and correct in all respects as of the date when made and as of the
First Closing Date as though made at that time, and each Seller shall have performed, satisfied and complied in all respects with
the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Seller
at or prior to the First Closing Date.

 

iii.Each
Seller shall have obtained or made all governmental, regulatory or third party consents, waivers, approvals, licenses, authorizations
and declarations, filings, registrations, and notifications, if any, necessary for the sale of the First Closing Units and such
consents, waivers, approvals, licenses, authorizations and declarations, filings, registrations, and notifications in full force
and effect, and all waiting periods required by any law shall have expired.

 

iv.No
legal proceeding shall be pending or threatened before any governmental or regulatory authority which would prevent the performance
of transaction contemplated by the Agreement, declare unlawful the transactions contemplated hereby, cause such transactions to
be rescinded or adversely affect the Purchaser or the Company.

 

v.Each
Seller shall have delivered to the Company and its transfer agent duly-executed instructions to transfer the First Closing Units
to be transferred by such Seller in the First Closing to the Purchaser or its designee.

 

(b)The
obligation of the Purchaser hereunder to purchase the Second Closing Units on the Closing Date is subject to the satisfaction,
on or before the Closing Date, of each of the following conditions, provided, however, that these conditions are
for the Purchaser’s sole benefit and may be waived by the Purchaser at any time in its sole discretion by providing the
Sellers with prior written notice thereof:

 

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i.The
First Closing shall have been consummated in accordance with this Agreement.

 

ii.The
representations and warranties of each Seller shall be true and correct in all respects as of the Second Closing Date as though
made at that time, and each Seller shall have performed, satisfied and complied in all respects with the covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by such Seller at or prior to the Second
Closing Date.

 

iii.Each
Seller shall have obtained or made all governmental, regulatory or third party consents, waivers, approvals, licenses, authorizations
and declarations, filings, registrations, and notifications, if any, necessary for the sale of the Second Closing Units and such
consents, waivers, approvals, licenses, authorizations and declarations, filings, registrations, and notifications in full force
and effect, and all waiting periods required by any law shall have expired, and the Purchaser shall have received evidence reasonably
satisfactory to it that the consummation of the Second Closing will not cause any change of control, event of default or default
under any material agreement of the Company or Rhino GP, including, for the avoidance of doubt, the Credit Agreement.

 

iv.No
legal proceeding shall be pending or threatened before any governmental or regulatory authority which would prevent the performance
of transaction contemplated by the Agreement, declare unlawful the transactions contemplated hereby, cause such transactions to
be rescinded or adversely affect the Purchaser or the Company;

 

v.Since
the First Closing, no change has had or would reasonably be expected to have a material adverse effect on the business of the
Company has occurred.

 

vi.Each
Seller shall have delivered to the Company and its transfer agent duly-executed instructions to transfer the Second Closing Units
to be transferred by such Seller in the Second Closing to the Purchaser or its designee.

 

ARTICLE
V

COVENANTS

 

5.1Delivery
of Purchased Units.

 

Each
Seller shall promptly following (i) the First Closing give appropriate instructions to the Company and its transfer agent to cause
the First Closing Units being purchased in the First Closing to be delivered to the Purchaser, and (ii) the Second Closing give
appropriate instructions to the Company, its transfer agent and the Rhino GP (as applicable) to cause the Second Closing Units
being purchased in the Second Closing to be delivered to the Purchaser, along with all transfer documents reasonably requested
by the Purchaser, the Company or its transfer agent to enable the Company to register the applicable Purchased Units in the denominations
and names requested by the Purchaser.

 

5.2Fees.

 

Each
Party hereto shall pay its own legal fees and expenses in connection with the transactions contemplated hereby.

 

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5.3Operation
of Business.

 

Prior
to the Second Closing, each Seller agrees that it shall not take any action that would be reasonably likely to cause Rhino GP
or the Company to:

 

(a)not
conduct its business or other activities only in the ordinary course, unless the Purchaser provides its prior approval to conduct
activities outside the scope of the ordinary course of business;

 

(b)not
maintain all permits, licenses and governmental approvals necessary to operate its business as currently conducted;

 

(c)not
maintain its books and records in the ordinary course of business;

 

(d)declare,
set aside, make or pay any dividend or other distribution in respect of any Common Units, Subordinated Units or GP Units;

 

(e)issue
or sell any Common Units, Subordinated Units or GP Units or other securities of, or other ownership interests in, the Company,
or grant options, warrants, calls or other rights of any kind to purchase or otherwise acquire any capital stock or other securities
of, or other ownership interests in, Company;

 

(f)amend
its limited partnership agreement;

 

(g)acquire
any properties or assets or sell, assign, license, transfer, convey, lease or otherwise dispose of any of its properties or assets;

 

(h)incur
any liabilities outside the ordinary course of business, and pay, repay, discharge and satisfy all of its existing liabilities
on an average basis of 90 days of receipt of invoice.

 

(i)enter
into or agree to enter into any merger or consolidation with any corporation or other entity, or acquire the securities of any
other person;

 

(j)enter
into, amend, cancel, terminate, waive or release any contract except in the ordinary course of its business;

 

(k)take
any action which would materially adversely affect the ability of the parties to consummate the transactions contemplated by this
agreement;

 

(l)make
any loans, advances or capital contributions to or investments in any person;

 

(m)institute
or settle any legal proceedings;

 

(n)not
file all tax returns and pay all taxes reflected as payable on such returns;

 

(o)not
file all reports and forms with the Securities and Exchange Commission that are required by the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), or the Securities Act; and

 

(p)take
any action that would result in a default or the right to terminate any material agreement to which it is a party, including any
employment agreement, supply agreement, coal sale agreement or lease (other than with respect to actions specifically contemplated
by this Agreement, including for the avoidance of doubt any actions that may result in a change of control of the Company or Rhino
GP);

 

    	 	11	 

    	 	 	 

    

 

provided,
however, that, no action or omission taken or failed to be taken by the Sellers, Rhino GP or its or the Company’s
board of directors or managers, as applicable, shall constitute a breach of this Agreement if taken or failed to be taken by the
Sellers, Rhino GP or its or the Company’s board of directors or managers, as applicable, in the believe that not doing so
could reasonably be likely to be inconsistent with its or his fiduciary duties and no such action or omission shall constitute
a breach hereof.

 

5.4Further
Assurances.

 

Each
Party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements (including, without limitation, any partnership, limited liability company or operating agreements),
certificates, instruments and documents, as any other Party may reasonably request in order to carry out the intent and accomplish
the purposes of this Agreement and the consummation of the transactions contemplated hereby. Prior to the Second Closing, no Party
shall take or fail to take any action that would reasonably result in the failure of any condition to its performance in the Second
Closing to be satisfied by the Second Termination Date; provided, that the foregoing shall not require a Party to take any action
or fail to take any action that the Party reasonably believes would constitute a violation of applicable law or be reasonably
likely to be inconsistent with any applicable fiduciary duties.

 

5.5Change
of Control.

 

Prior
to the Second Closing, Purchaser agrees that it shall use its best efforts to obtain all waivers, amendments and consents as may
be required such that the consummation of the Second Closing will not cause any change of control, event of default or default
under any material agreement of the Company or the Rhino GP, including, for the avoidance of doubt, the Credit Agreement and any
mineral leases in which the Company or its subsidiaries are a lessee.

 

5.6Lock-Up
Agreements

 

Within
10 business days of the date hereof, the Sellers shall cause the Persons listed on Schedule II shall have entered into
lock-up agreements, substantially in the form attached as Exhibit B hereto (the “Lock-Up Agreements”).

 

    	 	12	 

    	 	 	 

    

 

ARTICLE
VI

MISCELLANEOUS
PROVISIONS

 

6.1Governing
Law; Jurisdiction; Jury Trial.

 

All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. Each Party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each Party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such Party at the address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING
OUT OF THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED HEREBY.

 

6.2Headings.

 

The
headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

6.3Severability.

 

If
any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity
or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

6.4Entire
Agreement; Amendments.

 

This
Agreement supersedes all other prior oral or written agreements among the Purchaser and the Sellers, their affiliates and persons
acting on their behalf solely with respect to the matters discussed herein, and this Agreement and the instruments referenced
herein contain the entire understanding of the parties solely with respect to the matters covered herein and therein and, except
as specifically set forth herein or therein, neither the Sellers nor the Purchaser makes any representation, warranty, covenant
or undertaking with respect to such matters. No provision of this Agreement may be amended other than by an instrument in writing
signed by the Sellers and the Purchaser. No provision hereof may be waived other than by an instrument in writing signed by the
Party against whom enforcement is sought.

 

    	 	13	 

    	 	 	 

    

 

6.5Notices.

 

Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b) when sent, if sent by facsimile
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending Party); (c)
when sent, if sent by e-mail (provided that such sent e-mail is kept on file (whether electronically or otherwise) by the sending
Party and the sending Party does not receive an automatically generated message from the recipient’s e-mail server that
such e-mail could not be delivered to such recipient); or (d) one business day after deposit with an overnight courier service,
in each case properly addressed to the Party to receive the same; provided that in the event any notice is not delivered by email,
a carbon copy shall be delivered by email if an email address is provided for the party below. The addresses and facsimile numbers
for such communications shall be:

 

If
to a Seller:

 

c/o
Wexford Capital

411
West Putnam Ave.

Greenwich
CT, 06820

Attn:
Mark Zand

Email:
mzand@wexford.com

With
a copy to

Attn:
Arthur Amron

Email:
aamron@wexford.com

 

with
a copy to (for information purposes only):

 

Schulte
Roth & Zabel LLP

919
Third Avenue

New
York, New York 10022

Attention:
Eleazer Klein, Esq.

Telephone:
(212) 756-2000

Facsimile:
(212) 593-5955

 

If
to the Purchaser:

 

Royal
Energy Resources, Inc.

56
Broad Street, Suite 2

Charleston,
SC 29401

Attention:
William L. Tuorto

Telephone:
(843) 900-7693

Facsimile:
(843) 501-1528

Email:
Williamtuorto@royalenergy.us

 

    	 	14	 

    	 	 	 

    

 

with
a copy to (for information purposes only):

 

Davis
Gillett Mottern & Sims, LLC

1230
Peachtree Street, N.E., Suite 2445

Atlanta,
Georgia 30309

Attention:
Robert J. Mottern

Telephone:
(404) 607-6933

Facsimile:
(678) 840-2126

Email:
bmottern@investmentlawgroup.com

 

or
to such other address, facsimile number or e-mail address and/or to the attention of such other person as the recipient Party
has specified by written notice given to each other Party five (5) days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine containing the time, date and recipient facsimile number or (C) provided by
an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight
courier service in accordance with clause (a), (b) or (d) above, respectively. A copy of the e-mail transmission containing the
time, date and recipient e-mail address shall be rebuttable evidence of receipt by e-mail in accordance with clause (c) above.

 

6.6Successors
and Assigns.

 

This
Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.
Neither the Sellers nor the Purchaser shall assign this Agreement or any of their respective rights or obligations hereunder without
the prior written consent of the other Party.

 

6.7No
Third Party Beneficiaries.

 

This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and permitted assigns, and
is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

6.8Survival.

 

Unless
this Agreement is terminated by mutual consent of the Sellers and the Purchaser, the representations and warranties of the Sellers
and the Purchaser contained in Articles II and III shall survive the Closing Dates and the delivery, in whole or in part, of the
Purchased Units.

 

6.9Termination.

 

Notwithstanding
anything to the contrary in this Agreement, this Agreement may be terminated and the transactions contemplated hereby may be abandoned
at any time prior to the Second Closing Date:

 

(a)by
the mutual written agreement of Seller and Purchaser;

 

(b)by
Purchaser if the First Closing has not occurred on or prior to the fifth (5th) day after the date hereof (the “First
Termination Date”) or the Second Closing has not occurred on or prior to the sixtieth (60th) day after the
First Closing Date (the “Second Termination Date”, and with the First Termination Date, each a “Termination
Date”); provided that Purchaser is not at such time in breach in any material respect of any of its representations
or obligations hereunder;

 

    	 	15	 

    	 	 	 

    

 

(c)by
Seller if the First Closing has not occurred on or prior to the First Termination Date or the Second Closing has not occurred
on or prior to the Second Termination Date, provided that Seller is not at such time in breach in any material respect
of any of its representations or obligations hereunder;

 

(d)by
either Party if there has been a breach by the other Party of any representation, warranty, covenant or agreement set forth in
this Agreement and the effect of such breach would be to cause the conditions to the terminating Party’s obligations to
consummate the Closing not to be capable of being satisfied, and such breach is not cured or is not reasonably capable of being
cured within 10 days of receiving written notice of such breach or alleged breach from the terminating Party, it being understood
and agreed that this Agreement may not be terminated pursuant to this Section 6.9(d) during such 10-day period or following
such10-day period if such breach is cured during such 10-day period (provided, however, that such 10-day period
shall not extend the applicable Termination Date); or

 

(e)by
either Party if there shall be in effect a final, non-appealable law, rule, regulation, order, judgment or decree (including federal
and state securities laws) (“Order”) of a federal, state, local or foreign government, governmental authority,
regulatory or administrative agency, governmental department, board, bureau, agency or instrumentality, or court or tribunal of
competent jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby;
it being agreed that the Parties shall promptly appeal any adverse determination which is appealable (and pursue such appeal with
reasonable diligence); provided, however, that the right to terminate this Agreement under this Section 6.9(e)
shall not be available to a Party if such Order was primarily due to the failure of such Party to perform any of its obligations
under this Agreement.

 

If
this Agreement is terminated and the transactions contemplated hereby are abandoned in accordance with this Section 6.9,
this Agreement shall become void and of no further force and effect (other than this Section 6.9, Section 6.8 and
Sections 6.11, 6.12, and 6.13 each of which shall survive the termination of this Agreement and be enforceable by the Parties
and, for the avoidance of doubt, with respect to the transfer of any Purchased Units pursuant to a Closing that has already occurred,
which transfer shall remain in full force and effect), and there shall be no liability or obligation on the part of any Party
to the other Party, except for material breaches of this Agreement prior to the time of such termination and pursuant to Sections
6.11 and 6.12. Nothing in this Section 6.9 shall be deemed to impair the right of either Party to compel specific performance
by the other Party of its obligations under this Agreement.

 

6.10Release
of Escrow Amount.

 

If
the Second Closing has not occurred by the Termination Date, on the first business day following the termination of this Agreement,
Purchaser and each Seller will jointly instruct the Escrow Agent under the Escrow Agreement to release to the Purchaser the Escrow
Amount. The Escrow Agreement shall provide for the payment to the Sellers of any interest on the Escrow Amount. For the avoidance
of doubt, upon the release of the Escrow Amount to the Purchaser, the Sellers shall be under no obligation to sell the Second
Closing Units hereunder.

 

    	 	16	 

    	 	 	 

    

 

6.11Indemnification
Obligations of Seller.

 

Each
Seller shall jointly and severally defend, indemnify and hold harmless Purchaser and its affiliates (including the Company) and
their respective officers, directors, shareholders, successors and permitted assigns (all such Persons are collectively referred
to herein as the “Purchaser Indemnitees”) against and from all liabilities, demands, claims, regulatory, legislative
or judicial proceedings or investigations, assessments, taxes, levies, losses, fines, penalties, damages, costs, interest, deficiencies
and expenses, including, without limitation, reasonable attorneys’, accountants’, investigators’, and experts’
fees and expenses, sustained or incurred in connection with the defense, investigation, adjudication, settlement or other resolution
of any claim (“Damages”) sustained or incurred by any of the Purchaser Indemnitees resulting from or arising
out of or by virtue of: (a) any inaccuracy in or breach of any representation and warranty made by such Seller in this Agreement;
and (b) any breach by such Seller or failure by such Seller to comply with any of the covenants or obligations of such Seller
under this Agreement.

 

6.12Indemnification
Obligations of Purchaser.

 

Purchaser
shall defend, indemnify, save and keep harmless each Seller and its affiliates (including the Company) and their respective officers,
directors, shareholders, successors and permitted assigns (all such Persons are collectively referred to herein as the “Seller
Indemnitees”) against and from all Damages sustained or incurred by any of them resulting from or arising out of or
by virtue of: (a) any inaccuracy in or breach of any representation and warranty made by Purchaser in this Agreement; (b) any
breach by Purchaser of, or failure by Purchaser to comply with, any of its covenants or obligations under this Agreement; and
(c) any actions or omission taken by the Purchaser after the First Closing not in the control of the Sellers, including, without
limitation, related to the issuance of additional units of the Company or Rhino GP or to indebtedness of the Company that is not
repaid at or prior to the Second Closing (including, without limitation resulting from any default under the Credit Agreement
resulting from consummation of the transactions contemplated by this Agreement).

 

6.13No
Strict Construction.

 

The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party.

 

6.14Counterparts.

 

This
Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each Party and delivered to the other Party. In the event that any signature is
delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature
page, such signature page shall create a valid and binding obligation of the Party executing (or on whose behalf such signature
is executed) with the same force and effect as if such signature page were an original thereof.

 

6.15
Confidentiality. 

 

The
Purchaser and the Sellers each hereby agrees, without the prior written consent of the other, to not disclose, and to otherwise
keep confidential, the sale of the Purchased Units contemplated hereby, except to the extent that disclosure thereof is required
by law, rule or regulation or as required or requested by any competent governmental, regulatory or supervisory authority or has
become publicly known through no fault of such Party; provided, however, that the Purchaser and the Sellers may
disclose information regarding such sale to their respective accountants, attorneys, limited partners, shareholders and other
interest holders; provided, further, however, that the Parties acknowledge that the Company will be required to file a
current report on Form 8-K disclosing this Agreement and the Sellers and Purchaser and other parties may be required to make filings
pursuant to Section 13 and 16 of the Exchange Act.

 

[The remainder of the page
is intentionally left blank]

 

    	 	17	 

    	 	 	 

    

 

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

 

	 	SELLERS:
	 	 
	 	Wexford
    Capital LP
	 	By:
    Wexford GP LLC, its General Partner
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Wexford
    Rhino Partners, L.P.
	 	By:
    Wexford Rhino Advisors LLC, its general partner
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Rhino
    Energy Holdings LLC
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Rhino
    Resource Holdings LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	PURCHASER:
	 	 
	 	Royal
    Energy Resources, Inc.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature
Page to Securities Purchase Agreement]

 

    	 	 	 

    	 	 	 

    

 

SCHEDULE
I

 

SCHEDULE
OF SELLERS

 

	(1)	 	 	(2)		 	 	(3)		 	 	(4)	
	Seller	 	 	Aggregate
                                         

                                         Amount of
                                         

                                         Common Units	 	 	 	Aggregate

                                         Amount of

                                         Subordinated
                                         Units	 	 	 	Aggregate
                                         

                                         Amount of
                                         

                                         GP Units	 
	Wexford Capital LP	 	 	159,216	 	 	 	—	 	 	 	—	 
	Wexford Rhino Partners, L.P.	 	 	—	 	 	 	—	 	 	 	100%
                                         of GP Units	 
	Rhino Energy Holdings LLC	 	 	6,010,265	 	 	 	8,597,487	 	 	 	—	 
	Rhino Resource Holdings LLC	 	 	599,631	 	 	 	857,765	 	 	 	—	 
	Purchase Price	 	$	3,500,000	 	 	$	200,000	 	 	$	800,000	 

 

    	 	 	 

    	 	 	 

    

 

SCHEDULE
II

 

SCHEDULE
OF LOCK-UP PARTIES

 

	(1)	 	 	(2)		 	 	(3)	
	Seller	 	 	Aggregate
                                         

                                         Amount of

                                         Common Units	 	 	 	Aggregate

                                         Amount of

                                         Subordinated
                                         Units	 
	Joseph Jacobs	 	 	140,966	 	 	 	201,642	 
	Charles Davidson	 	 	486,744	 	 	 	696,268	 

 

    	 	 	 

    	 	 	 

    

 

EXHIBIT
A

FORM
OF

ESCROW
AGREEMENT 

 

THIS
ESCROW AGREEMENT is made and entered into this __ day of January, 2016, by and among Wexford Capital LP, a Delaware limited
partnership, Wexford Rhino Partners, L.P., a Delaware limited partnership, Rhino Energy Holdings LLC, a Delaware limited liability
company, and Rhino Resource Holdings LLC, a Delaware limited liability company (individually, a “Seller” and
collectively, the “Sellers”), Royal Energy Resources, Inc., a Delaware corporation (the “Purchaser”),
and Davis Gillett Mottern & Sims, LLC (the “Escrow Agent”).

 

WITNESSETH:

 

WHEREAS,
the Sellers and the Purchaser have entered into a Securities Purchase Agreement dated as of January 21, 2016 (the “Purchase
Agreement”), under which the Purchaser has agreed to purchase, and the Sellers have agreed to sell, (i) the issued and
outstanding membership units representing limited partnership interests in the general partner of the Company (as defined below),
Rhino GP LLC, a Delaware limited liability company (“Rhino GP”) (the “GP Units”) and (ii)
the common units (the “Common Units”), subordinated units (the “Subordinate Units” together
with the Common Units and the GP Units, the “Purchased Units”) representing limited partnership interests in
Rhino Resource Partners LP (the “Company”), in each case, in the amounts set forth in the Purchase Agreement;

 

WHEREAS,
the terms of the Purchase Agreement provide that the Purchaser will purchase the Common Units at the First Closing (as defined
in the Purchase Agreement), and the GP Units and Subordinate Units at the Second Closing (as defined in the Purchase Agreement);

 

WHEREAS,
the Purchaser has agreed to deposit the Second Closing Purchase Price with the Escrow Agent, which has agreed to hold the Second
Closing Purchase Price in its non-interest bearing IOLTA account until the Second Closing occurs or does not occur, as the case
may be, and to disburse the Second Closing Purchase Price as set forth herein;

 

WHEREAS,
the Sellers, the Purchaser and Escrow Agent are entering into this Agreement to set forth the terms under which the Escrow Agent
will serve as escrow agent respect to the above-described escrow.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.The
Escrow Agent hereby acknowledges receipt of $1,000,000 from the Purchaser (the “Escrowed Funds”) by wire transfer
in good funds.

 

2.The
Escrowed Funds are to be held by the Escrow Agent in escrow and disposed of pursuant to and strictly in accordance with the terms
and conditions of this Agreement. The Escrow Agent shall hold the Escrowed Funds in its IOLTA account at Suntrust Bank, which
is a non-interest bearing account. The Escrow Agent undertakes to perform only such duties as are expressly set forth in this
Agreement, and no implied duties or obligations of the Escrow Agent shall be read into this Agreement.

 

    	 	 	 

    	 	 	 

    

 

3.The
parties agree that the Escrow Agent shall dispose of the Escrowed Funds as follows:

 

a)In
the event the Second Closing occurs on or before the Second Termination Date, the Escrowed Funds shall be paid by wire transfer
to the Sellers in such amounts and proportions as are specified pursuant to the Purchaser Agreement;

 

b)In
the event the Second Closing does not occur by the Second Termination Date, the Escrowed Funds shall be returned to the Purchaser
by wire transfer;

 

c)Pursuant
to joint written instructions signed by the Sellers and the Purchaser.

 

4.In
the event the Sellers and the Purchaser agreed to extend the Second Closing Date, the Sellers and Purchaser shall certify to the
Escrow Agent in writing or electronically via email the new Second Closing Deadline.

 

5.All
signatories to this Agreement consent to email communication of any notices or documents pertaining to the Escrowed Funds, and
agree that the email address set forth below their signature is a valid email address to which all notifications regarding the
Escrowed Funds may be sent.

 

6.In
the event the Escrow Agent is uncertain as to its duties or responsibilities hereunder or either party shall challenge the validity,
legality or authenticity of any notice sent by the other party to the Escrow Agent, the Escrow Agent may interplead the Escrowed
Funds in the Superior Court of Fulton County, State of Georgia, and the Sellers and the Purchaser consent to jurisdiction and
venue in such court for purposes of an interpleader action. The losing party in such proceeding shall indemnify and hold harmless
the Escrow Agent from all costs and expenses, including reasonable attorney’s fees associated with the proceeding. The Escrow
Agent may act in reliance upon any writing or instrument or signature which it in good faith believes to be genuine and may assume
that any person purporting to give any writing, notice, advice, or instruction in connection with the provisions hereof has been
duly authorized to do so. Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form, manner
of execution or validity of any instrument deposited in this escrow nor as to the identity, authority or right of any persons
executing the same, and its duties hereunder shall be limited to the safekeeping of the Escrowed Funds and for the disposition
of same in accordance with this Agreement. Escrow Agent hereby executes this Agreement for the sole and exclusive purpose of evidencing
its Agreement of the provisions hereof.

 

7.The
Purchaser agrees to indemnify and hold the Escrow Agent harmless from any and all claims, liabilities, losses, actions, suits
or proceedings at law or in equity, or any other expense, fees, or charges of any character or nature, which it may incur or with
which it may be threatened by reason of its acting as Escrow Agent under this Agreement, and in connection therewith, to indemnify
the Escrow Agent against any and all expenses, including reasonable attorney’s fees and the cost of defending any action,
suit or proceeding or resisting any claim.

 

    	 	 	 

    	 	 	 

    

 

8.The
Escrow Agent may consult with counsel of its own choice and shall have full and complete authorization and protection for any
action taken or suffered by it and hereunder in good faith and in accordance with the opinion of such counsel. The Escrow Agent
shall otherwise not be liable for any mistakes of fact or error in judgment, or for any acts or omissions of any kind unless caused
by its willful misconduct or gross negligence.

 

9.The
Escrow Agent shall be entitled to payment of fees for any services rendered by the Escrow Agent hereunder at its regular hourly
rates, plus reimbursement of all out-of-pocket expenses of Escrow Agent, which fees shall be payable by the Purchaser. In addition,
the Escrow Agent shall be entitled to deduct from any payment due the Purchaser all amounts owing the Escrow Agent, which shall
be considered fees of the Escrow Agent hereunder. The Purchaser shall bear the cost of any wire transfer fees with respect to
any wire transfer of the Escrowed Funds to the Sellers or the Purchaser.

 

10.The
provisions of this Agreement may not be amended, supplemented, waived or changed orally, but only by a writing signed by the party
as to whom enforcement of any such amendment, modification, supplement or waiver is sought and making specific reference to this
Agreement.

 

11.All
notices required or permitted hereunder, and under any instrument delivered pursuant hereto, shall be given in writing, and shall
be deemed to have been given and received upon the earlier to occur of: (a) if mailed first-class, registered or certified mail,
return receipt requested, postage prepaid, then upon the date and time return receipt delivery is attempted by the applicable
national postal service; (b) if delivered by courier for hand-delivery, then upon the date and time of actual delivery; or (c)
if delivered by a private overnight delivery service (including Federal Express and United Parcel Service), then upon the date
and time of actual delivery by the private overnight delivery service company; provided that in all cases a copy of such notice
shall be delivered in the form of a .pdf attachment to an email address of the recipient on the date on which the notice is sent.
Any party hereto may change its address for notice set forth herein by giving the other parties at least 10 days advance written
notice of such change of address. The notices to Sellers and the Purchaser shall be sent to the address on their signature page
to this Agreement. All notices to the Escrow Agent shall be sent to:

 

Robert
J. Mottern, Esq.

DAVIS
GILLETT MOTTERN & SIMS, LLC

1230
Peachtree Street, N.E., Suite 2445

Atlanta,
Georgia 30309

Phone:
404-607-6933

Email:
bmottern@investmentlawgroup.com

 

    	 	 	 

    	 	 	 

    

 

12.Escrow
Agent shall have no duties or responsibilities other than those expressly set forth herein. Escrow Agent shall not be liable for
any action taken or omitted by it, or any action suffered by it, except for gross negligence or willful misconduct. The Escrow
Agent shall not be bound by any notice or demand unless evidenced by a writing delivered to Escrow Agent signed by the proper
party or parties.

 

13.This
Agreement contains the entire understanding between and among the parties hereto with respect to the subject matter hereof, and
shall be binding upon and inure to the benefit of such parties, and their respective heirs, successors in interest and legal representatives.

 

14.This
Agreement is governed by, and is to be construed in accordance with, the laws of the State of Georgia.

 

This
Agreement may be executed in counterpart.

 

    	 	 	 

    	 	 	 

    

 

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

 

	SELLERS:

         

        WEXFORD
        CAPITAL, L.P., a Delaware limited partnership

         

        By:
        _____________, general partner

         
	 	 

         

        WEXFORD
        RHINO PARTNERS, L.P., a Delaware limited partnership

         

        By:
        _____________, general partner

         

         

	By:
                                         _____________________

        Its:
        _____________________

         

        Address:
        _________________

        _________________________

        Phone:
        ___________________

        Email:
        ___________________
	 	By:
                                         _____________________

        Its:
        _____________________

         

        Address:
        _________________

        _________________________

        Phone:
        ___________________

        Email:
        ___________________

 

	RHINO
                                         ENERGY HOLDINGS, LLC, a Delaware limited liability company

         
	 	RHINO
                                         RESOURCE HOLDINGS, LLC, a Delaware limited liability company

         

	By:
                                         _____________________

        Its:
        _____________________

         

        Address:
        _________________

        _________________________

        Phone:
        ___________________

        Email:
        ___________________
	 	By:
                                         _____________________

        Its:
        _____________________

         

        Address:
        _________________

        _________________________

        Phone:
        ___________________

        Email:
        ___________________

 

    	 	 	 

    	 	 	 

    

 

	PURCHASER:

         

        ROYAL
        ENERGY RESOURCES, INC., a Delaware corporation

         

         
	 	 
	By:
                                         _____________________

        Its:
        _____________________

         

        Address:
        56 Broad Street, Suite 2

        Charleston,
        SC 29401

        Phone:
        ___________________

        Email:
        ___________________
	 	 
	 	 	 
	ESCROW
                                         AGENT:

         

        DAVIS,
        GILLETT, MOTTERN & SIMS, LLC, a Georgia limited liability company

         

         
	 	 
	By:
    Robert J. Mottern, Partner	 	 

 

    	 	 	 

    	 	 	 

    

 

EXHIBIT
B

FORM
OF 

LOCK-UP
AGREEMENT

 

LOCK-UP
LETTER AGREEMENT

 

Royal
Energy Resources, Inc.

56
Broad Street, Suite 2

Charleston,
SC 29401

 

Dear
Sirs:

 

Defined
terms not otherwise defined in this letter agreement (the “Lock-Up Letter Agreement”) shall have the meanings
set forth in the Securities Purchase Agreement, dated as of January ___, 2016 (the “Purchase Agreement”), among
Wexford Capital LP, a Delaware limited partnership, Wexford Rhino Partners, L.P., a Delaware limited partnership, Rhino Energy
Holdings LLC, a Delaware limited liability company, and Rhino Resource Holdings LLC, a Delaware limited liability company (individually,
a “Seller” and collectively, the “Sellers”), and Royal Energy Resources, Inc., a Delaware
corporation (the “Purchaser”, together with the Sellers, the “Parties”).

 

The
undersigned understands that the Purchase Agreement provides for the purchase by the Purchaser from the Sellers of (i) the issued
and outstanding membership units representing limited partnership interests in the general partner of the Company (as defined
below), Rhino GP LLC, a Delaware limited liability company (“Rhino GP”) (the “GP Units”)
and (ii) the common units (the “Common Units”), subordinated units (the “Subordinate Units”
together with the Common Units and the GP Units, the “Purchased Units”) representing limited partnership interests
in Rhino Resource Partners LP (the “Company”).

 

In
consideration of the execution of the Purchase Agreement by the Purchaser, and for other good and valuable consideration, the
undersigned hereby irrevocably agrees that, without the prior written consent of the Purchaser, the undersigned will not, directly
or indirectly, (1) offer for sale, sell, contract to sell, pledge, or otherwise dispose of (or enter into any transaction or device
that is designed to, or could be expected to, result in the disposition by any person at any time in the future of), directly
or indirectly, any shares of any Common Units or Subordinate Units (including, without limitation, Common Units or Subordinate
Units that may be deemed to be beneficially owned by the undersigned in accordance with the Rules and Regulations of the Securities
Exchange Act of 1934, as amended, and Common Units or Subordinate Units that may be issued upon exercise of any options or warrants)
or securities convertible into or exercisable or exchangeable for Common Units or Subordinate Units, (2) enter into any swap,
hedge or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of
ownership of Common Units or Subordinate Units, whether any such transaction described in clause (1) or (2) above is to be settled
by delivery of Common Units or Subordinate Units or other securities, in cash or otherwise, (3) make any demand
for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the
registration of any Common Units or Subordinate Units or securities convertible into or exercisable or exchangeable for Common
Units or Subordinate Units or any other securities of the Company held by the undersigned or (4) publicly disclose the intention
to do any of the foregoing, for a period commencing on the date hereof and ending on the earlier of (a) if the Second Closing
does not occur, the expiration of the deadline for consummation of the Second Closing, and (b) if the Second Closing does occur,
one year after the Second Closing Date (such period, the “Lock-Up Period”).

 

    	 	 	 

    	 	 	 

    

 

No
provision in this Lock-Up Letter Agreement shall be deemed to restrict or prohibit (1) the exercise, exchange or conversion by
the undersigned of any securities exercisable or exchangeable for or convertible into Common Units or Subordinate Units, as applicable;
provided that any Common Units or Subordinate Units received upon exercise of options granted to the undersigned will also
be subject to this Lock-Up Letter Agreement, (2) transfers of Common Units or Subordinate Units or securities convertible into
or exercisable or exchangeable for Common Units or Subordinate Units as a bona fide gift, by will or intestacy or to a
family member or trust for the benefit of a family member (for purposes of this lock-up agreement, “family member”
means any relationship by blood, marriage or adoption, not more remote than first cousin), (3) to an entity wholly owned, directly
or indirectly, by the undersigned and/or family members of the undersigned or for their benefit, (4) transfers of Common Units
or Subordinate Units or securities convertible into or exercisable or exchangeable for Common Units or Subordinate Units to a
charity or educational institution or (5) transactions in Common Units or Subordinate Units or securities convertible into or
exercisable or exchangeable for Common Units or Subordinate Units for the purpose of paying taxes due in connection with any grant
or vesting of securities of the Company; provided, that in the case of any transfer pursuant to the foregoing clauses (2),
(3) or (4), any such transfer shall not involve a disposition for value.

 

In
furtherance of the foregoing, the Company and its transfer agent are hereby authorized to decline to make any transfer of securities
if such transfer would constitute a violation or breach of this Lock-Up Letter Agreement.

 

It
is understood that, if the Company does not intend to proceed with the First Closing, the undersigned will be released from its
obligations under this Lock-Up Letter Agreement.

 

The
undersigned understands that the Purchaser will proceed with the First Closing and the Second Closing in reliance on this Lock-Up
Letter Agreement.

 

[Signature
page follows]

 

    	 	2	 

    	 	 	 

    

 

The
undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Letter
Agreement and that, upon request, the undersigned will execute any additional documents necessary in connection with the enforcement
hereof. Any obligations of the undersigned shall be binding upon the heirs, personal representatives, successors and assigns of
the undersigned.

 

	 	Very truly yours,
	 	 	 
	 	By:	
	 	Name: 	
	 	Title:	

 

Dated:
                                             

 

    	 	3ex10-1.htm

Exhibit 10.1

 

EXECUTION COPY

 

AMENDMENT NO. 3

 

Dated as of January 22, 2016

 

to

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated as of October 21, 2014

 

THIS AMENDMENT NO. 3 (“Amendment”) is made as of January 22, 2016 by and among Ethan Allen Global, Inc. (the “Borrower”), Ethan Allen Interiors Inc. (“Holdings”), the other Loan Parties signatory hereto, the financial institutions listed on the signature pages hereof and JPMorgan Chase Bank, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) under that certain Amended and Restated Credit Agreement dated as of October 21, 2014 by and among the Borrower, Holdings, the other Loan Parties party thereto, the Lenders and the Administrative Agent (as amended and as may be further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement.

 

WHEREAS, the Borrower has requested that the Lenders and the Administrative Agent agree to certain amendments to the Credit Agreement; and

 

WHEREAS, the Lenders party hereto and the Administrative Agent have agreed to amend the Credit Agreement on the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, Holdings, the Lenders party hereto and the Administrative Agent have agreed to enter into this Amendment.

 

1.     Amendments to Credit Agreement. As of the date of satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement is hereby amended as follows, which amendments shall be deemed to have taken effect as of December 30, 2015:

 

(a)     The definition of “Financial Covenant Exemption Period” set forth in Section 1.01 of the Credit Agreement is hereby restated in its entirety to read as follows:

 

“Financial Covenant Exemption Period” means the period (a) commencing on any date following the Term Loan Funding Date on which the aggregate outstanding principal amount of the Term Loans is less than $17,500,000 and (b) ending on the first date thereafter, if any, on which the average daily Availability during the immediately preceding 30 calendar days is less than 15% of the Aggregate Revolving Commitment.

 

(b)     The definition of “Fixed Charges” set forth in Section 1.01 of the Credit Agreement is hereby restated in its entirety to read as follows:

 

 

 

 

  

“Fixed Charges” means, with reference to any period, without duplication, cash Interest Expense, plus cash Rentals, plus prepayments and scheduled principal payments on Indebtedness made during such period, plus expense for taxes paid in cash, plus all Restricted Payments paid in cash (including, without limitation and for the avoidance of doubt, all cash payments on account of share buybacks or repurchases), plus Capital Lease Obligation payments, plus cash contributions to any Plan, all calculated for Holdings and its Subsidiaries on a consolidated basis.

 

2.     Conditions of Effectiveness. The effectiveness of this Amendment is subject to the condition precedent that the Administrative Agent shall have received counterparts of this Amendment duly executed by the Borrower, Holdings, the other Loan Parties party hereto, the Lenders and the Administrative Agent.

 

3.     Representations and Warranties of the Loan Parties. Each Loan Party hereby represents and warrants as follows:

 

(a)     This Amendment and the Credit Agreement (as amended hereby) constitute legal, valid and binding obligations of such Loan Party and are enforceable against such Loan Party in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

(b)     As of the date hereof and giving effect to the terms of this Amendment, (i) no Default shall have occurred and be continuing and (ii) the representations and warranties of the Loan Parties set forth in the Credit Agreement, as amended hereby, are true and correct as of the date hereof.

 

4.     Reference to and Effect on the Credit Agreement.

 

(a)     Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as amended hereby.

 

(b)     Except as specifically amended above, each Loan Document and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.

 

(c)     The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement, the Loan Documents or any other documents, instruments and agreements executed and/or delivered in connection therewith.

 

5.     Consent and Reaffirmation. Without in any way establishing a course of dealing by the Administrative Agent or any Lender, each of the undersigned Loan Parties consents to the Amendment and reaffirms the terms and conditions of the Credit Agreement, the Security Agreement and any other Loan Document executed by it (and any and all Liens on the Collateral granted thereunder to the Administrative Agent for itself and the Secured Parties) and acknowledges and agrees that the Credit Agreement, the Security Agreement and each and every such Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed.

 

6.     Governing Law. This Amendment shall be construed in accordance with and governed by the law of the State of New York.

 

 

2

 

  

7.     Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

8.     Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Signatures delivered by facsimile or PDF shall have the same force and effect as manual signatures delivered in person.

 

[Signature Pages Follow]

 

 

3

 

  

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

 

 

	
 
	
ETHAN ALLEN GLOBAL, INC.,
	
 

	 	as the Borrower	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ M. Farooq Kathwari
	
 

	
 
	
Name:
	
 
	
 

	
 
	
Title: 
	
President, Chairman and CEO
	
 

	 	 	 	 
	 	ETHAN ALLEN INTERIORS INC.,	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ M. Farooq Kathwari	 
	 	Name:	 	 
	 	Title	President, Chairman and CEO:	 
	 	 	 	 
	 	ETHAN ALLEN OPERATIONS, INC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ M. Farooq Kathwari	 
	 	Name:	 	 
	 	Title:	President, Chairman and CEO	 
	 	 	 	 
	 	LAKE AVENUE ASSOCIATES, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ M. Farooq Kathwari	 
	 	Name:	 	 
	 	Title:	President, Chairman and CEO	 
	 	 	 	 
	 	MANOR HOUSE, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ M. Farooq Kathwari	 
	 	Name:	 	 
	 	Title: 	President, Chairman and CEO	 

 

 

 

Signature Page to Amendment No. 3

Ethan Allen Global, Inc.

Amended and Restated Credit Agreement dated as of October 21, 2014  

 

 

 

 

 

 

	
 
	
ETHAN ALLEN REALTY LLC
	
 

	 	 	 
	 	By Ethan Allen Operations, Inc., its Sole Member	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ M. Farooq Kathwari
	
 

	
 
	
Name:
	
 
	
 

	
 
	
Title:
	
President, Chairman and CEO
	
 

	 	 	 	 
	 	ETHAN ALLEN RETAIL, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ M. Farooq Kathwari	 
	 	Name:	 	 
	 	Title:	President, Chairman and CEO	 

 

 

 

Signature Page to Amendment No. 3

Ethan Allen Global, Inc.

Amended and Restated Credit Agreement dated as of October 21, 2014  

 

 

 

 

 

	
 
	
JPMORGAN CHASE BANK, N.A.,
	
 

	 	as Administrative Agent and individually as a Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
    /s/ Donna DiForio
	
 

	
 
	
Name:
	
Donna DiForio
	
 

	
 
	
Title:
	
Authorized Officer
	
 

  

 

 

Signature Page to Amendment No. 3

Ethan Allen Global, Inc.

Amended and Restated Credit Agreement dated as of October 21, 2014   

 

 

 

 

 

	
 
	
CAPITAL ONE, NATIONAL ASSOCIATION,
	
 

	 	as a Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
    /s/ Charles J. Margiotti III
	
 

	
 
	
 
	
Charles J. Margiotti III
	
 

	
 
	
 
	
Senior Vice President
	
 

 

 

 

Signature Page to Amendment No. 3

Ethan Allen Global, Inc.

Amended and Restated Credit Agreement dated as of October 21, 2014

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